Development of the GROW Form for Relationship Planning in a Banking Organization

A prominent banking organization struggled to implement effective relationship plans among its bankers. The existing approach was largely unstructured, resulting in inconsistent quality and lack of accountability. Bankers were using free-form writing to describe their relationships and future plans, leading to vague and often recycled content that was difficult for management to review and track.

Challenges & Considerations

– Inconsistent Quality: Existing plans varied greatly in quality and were often non-specific.

– Lack of Accountability: Management found it inefficient to review and interpret plans, leading to a lack of follow-through.

– Verbal Plans: Plans for new and low profitability relationships were often verbal and not documented or quantified.

– Efficiency: The new model needed to be efficient to complete and review, without adding undue burden on bankers or managers.

Develop a structured and actionable relationship planning model.
Enhance the quality and accountability of relationship plans.
Integrate the model with the existing profitability model to reflect and project client profitability.
Ensure the model is practical and straightforward for bankers to use.
Achieve organizational goals, including improving client profitability and meeting investment banking fee targets.

Approach & Implementation

Understanding the Purpose and Features: Through discussions with bankers, it was identified that relationship planning had become a mere formality. The aim was to create a model that was actionable and structured, aligning with bankers’ needs and organizational goals.
Developing the GROW Form: The model, termed the “GROW form,” was designed to enhance the existing profitability model. Key features included:

– Current Revenue and Profitability: Reflecting the product-by-product revenue and profitability for each client.

– Projected Profitability: Including cross-selling targets specific to each client, with built-in assumptions for realistic projections under multiple scenarios.

– Action Plans: Requiring bankers to establish specific actions and identify internal parties responsible for achieving the targeted outcomes.

Integration and Accountability:

– Annual Completion: Bankers were required to complete the GROW form annually for select clients and for significant credit requests.

– Managerial Review: Managers were expected to meet with bankers regularly to discuss progress, making it a part of the annual performance process.

4. Pilot and National Rollout: The model was initially implemented in one region to test its effectiveness. Following positive results, it was rolled out nationwide.

Outcomes

The GROW form led to significant improvements in relationship planning within the organization:

– Improved Discipline: Bankers adopted a more disciplined approach to relationship planning.

– Transparency and Accountability: The structured model allowed for clearer tracking of progress and accountability.

– Profitability Gains: The model was instrumental in turning around hundreds of negative SVA client relationships.

– Organizational Goals: The organization achieved its target of over $1 billion in annual investment banking fees.

The development and implementation of the GROW form transformed relationship planning from a “check the box” exercise to a structured and accountable process. By integrating the model with existing profitability tools and requiring specific, actionable plans, the organization not only improved individual client relationships but also achieved broader business objectives. This case highlights the importance of structured planning and accountability in driving organizational success.