26th May 2006 
 
CEO of the Bank of Queensland (BOQ), David Liddy, today, told business professionals that any organisation who fails to take into account the new paradigm of personalised service and products will be left behind as the consumer driven market ploughs forward into the second decade of the 21st Century.  
 
Liddy, spoke at the Institute of Chartered Accountants Queensland Business Forum, about the revolutionary changes he has made at BOQ, in the past five years as the CEO, changes to the culture, infrastructure and perceptions of the organisation and how through his leadership and management of the momentum, BOQ has seen an exponential growth.  
 
In order to compete in a fiercely competitive market, BOQ had to re-invent itself from a sleepy regional bank to a fast paced, service-orientated sales force that could compete with the bigger banks on product and delivery, while exceeding them on reputation and service.  
 
In 2001 there were only 93 branches across Queensland, but since implementing the new Owner-Managed Branch Model, BOQ was able to rapidly expand, at a relatively low-cost, to more than 195 banks across Australia today.  
 
"The Owner-Managed Branch Model was a new franchise blueprint that turned our old agency model on its head and today we are an equal powerhouse to the big four and Suncorp, when it comes to branch presence in our state," Liddy said.  
 
Liddy claims that a great working model is not enough to ensure the success of any organisation, "no fundamental shift can occur without the buy in from staff, the investment in quality infrastructure and the change and management of public perception," Liddy said.  
 
Making staff communication a priority is the key to Liddy's success in developing co-operative and productive staff relationships and improved corporate culture.  
 
"I was lucky in that there was already a culture of customer service, which put me well ahead of my banking competitors, but it had to be pointed in a new direction,"Liddy said.  
 
Through setting up a monthly staff hotline, where the staff are able to contact him directly, undertaking two annual staff road shows across Australia, holding regular staff focus groups and regular branch visits, Liddy has reinvented the culture by making himself available to all staff and franchisees.  
 
The success of BOQ's growth can also be attributed to investing in growing the company and providing improved infrastructure, including branches and business banking centres, improved IT systems including internet and phone banking, and an upfront $40M outlay to replace the core banking system - something no bank has ever attempted before.  
 
"This was a foundation for us to provide the tools for our staff, leading to improved products and services for our customers," Liddy said.  
 
Public perception meant not only adjusting the perception but also the adjusting the reality. BOQ ran a competitive campaign called "Opening Doors" that was simple yet effective. The brand has since gone interstate which has led to a quiet expansion in NSW and VIC.  
 
Since implementing the new model and revamping the culture, infrastructure and public perception, BOQ has delivered a net profit after tax of $92M, reduced the cost-to-income ration to 63.9 cents in the dollar, increased its earnings per share to 70.2 cents, reached $7.5B in loan approvals, trebled their managed assets to $15.9B and increased their market capitalisation to around $1600M.  
 
"Changes to culture, changes to infrastructure and changes to perceptions has pushed BOQ to the forefront of the banking industry, but our model can easily be adapted to all businesses wanting to expand. However it is important for all businesses to remember that we live in a consumer-driven age, where people want customer service, products and services at lower costs, but with all the bells and whistles, lower fees and personal choice," Liddy said.  
 
"Businesses can not afford to ignore the consumer's needs and desires, as the market becomes more challenging and changes rapidly, the consequence of not keeping up in a fiercely competitive market could mean being driven out of the market altogether," Liddy warned.