FIRST National Building Society has hired consultants Performance Management International to advise on increasing income and improving efficiency.
Over the next 12 months, First National will plan and implement changes in its distribution and administrative systems. The changes, which are not yet finalised, will include an increase in telephone sales, operations.
Dedicated teams will be set up at its headquarters to service the mortgage brokers and agents who place business with First National.
Confirming the plans, managing director Mr John Smyth said changes were necessary in a competitive market to ensure the future success of the organisation.
"We are doing it now when we are performing well in order to prepare for challenges five years down the road. The changes which will evolve over the next 12 months are aimed at meeting customer needs efficiently and quickly. By providing a quality service, we will grow our business," he said.
Much of the impetus for change is coming from the society's 700 staff in Ireland and from agents and brokers who know the market and know what needs to be done, he said.
First National is aiming to bring its cost/income ratio down from a current level of around 64 per cent to 55 per cent over the next few years through a combination of increasing income and reducing costs.
There is no plan to reduce the current network of 80 branches or to reduce staff numbers, he said. "Our numbers are about right for our size of organisation and our customer base. What we are talking about is changes in roles over time and eliminating unnecessary practices so that the job can be done better," he said.
Staff flexibility is not an issue, according to Mr Smyth. "Staff have always been responsive to change."
Asked if the efficiency drive was a step towards relinquishing the Society's mutual status, he repeated that First National had not ruled this option in or out. But he stressed that "people should not forget that we are heavily capitalised and we do not need to come to the market for funds".
