ANZ talks tough on contract

By IRENE CHAPPLE

Chief executive officers appointed to lead ANZ's new franchise outlets will have just a year to reach targets before their jobs are threatened.

ANZ isn't mucking around: Reviews come six-monthly, and the rule of thumb is "two strikes and you are out".

If the chief executive twice fails to reach targets articulated in the franchise agreement - which includes greeting customers after one minute and serving them within five - "continuation of the franchise would be at risk", said project leader Mark Thomas.

There are four targets under the franchise arrangement: Financial profit, staff and customer satisfaction and compliance.

The chief executives will be working largely autonomously, although any financial decisions - on fees, for example - have dictated parameters.

There will be freedom to promote products in different ways, although Thomas said he expected outlets would want to participate in national advertising campaigns.

Each chief executive will be in charge of up to eight outlets.

Thomas said interest for the chief executive positions had been high, with one email coming in from the United States. All other applications had, to date, been national.

The new structure has appeased past concerns of Finsec, the union that represents finance workers and has 8000 members working in banks.

ANZ's performance targets, cost cutting and staff reductions have previously been criticised for adding to workers' stress.

Finsec national organiser Geraldine Molloy said the new system "was only to be applauded".

The new targets system which incorporated staff and customer satisfaction meant banks would no longer chase only financial gains.

ANZ has not ruled out a true franchise system, following the lead of Abbey National in the United Kingdom.

A true franchise system would have an entry cost to the franchisee.

There will be 23 franchise catchments, capturing 99 of the bank's 142 branches.

They will be Northern (Whangarei, Dargaville), North Harbour (Orewa, Albany, Birkenhead, Glenfield) North Shore (Browns Bay, Devonport, Milford, Takapuna), Twin Coasts (Henderson, Huapai, Lincoln North, New Lynn, St Lukes, Mt Roskill) Auckland CBD (Newton, 128 Queen St, 126 Queen St, cnr Queen & Victoria Streets) City-East Auckland (Parnell, Newmarket, Remuera, St Heliers, Ponsonby) South-East Auckland (Panmure, Botany Downs, Howick, Pakuranga) Auckland Industrial (Penrose, Onehunga, Otahuhu, East Tamaki ) Manukau (Papatoetoe, Manukau, Manurewa, Papakura) Hamilton (Te Rapa, Frankton, Chartwell, Ward St, Hamilton), Tauranga (Bayfair, Mt Maunganui, Cherrywood, Tauranga, Greerton), Volcanix (Rotorua, Taupo), Hawkes Bay (Marewa, Napier, Taradale, Stortford Lodge, Hastings, Havelock North) Taranaki (New Plymouth, Stratford, Hawera) Manawatu (Palmerston North, Terrace End, Feilding), Kapiti (Levin, Otaki, Waikanae, Paraparaumu) North Wellington (Porirua, Johnsonville, Lower Hutt, Petone, Upper Hutt) Wellington (North End, Victoria St, Wellington, Kilbirnie).