Links to articles about Customer service can be found at the end of the article.
Hanan Freidman’s latest moves at Leumi bank, deserves special attention.
The CEO of Leumi Bank, Mr. Hanan Freidman, has recently made a public announcement which revolutionizes the service the bank provides to its customers. Hanan committed to personally make sure that all customers’ requests are resolved within 24 hours and if not, customers are encouraged to communicate with him on his private WhatsApp. This, among other actions the bank is implementing, will overturn the way customer service has been practiced in Israel for decades.
In this article, I will first examine the personal commitment that Hanan Freidman took upon himself. I will then try to understand, or guess, the purpose of the actions and decisions he implemented. I will take another look at the service level we are currently experiencing in Israel and try to foresee the impact of Leumi’s new actions on other Israeli suppliers. I will end the article with recommendations to CEOs and business owners.
Hanan Freidman signs a contract with the customers.
Over the last few months, Leumi Bank has been leading a massive campaign, on public billboards, the radio, television, newspapers and social media. The campaign declares that the bank is launching a new service level for its customers.
I don’t often listen to the radio or follow advertisements. However, following this campaign, I understand that it is generally addressing the entire bank’s clientele.
“We are committed” says the advert. Unfortunately, commitments of organizations, including banks’, are usually not to be taken seriously especially when announced on an advertisement. No one believes in advertisements.
However, this announcement, which takes up half a page on Haaretz newspaper’s back page, is different. It is written by the CEO and includes his personal signature.
“Sayeret Matkal” – Special Commando Force
Every Israeli who hears the words “Sayeret Mankal”, immediately associates it with “Sayeret Matkal”, the IDF top commando troops, the highest, most prestigious army unit which represents excellence, high quality performance, boldness, innovation and success.
Hanan Freidman served in the special commando unit himself and, as a former officer, he understands what his personal commitment means to the customers. He is also aware of the implications of such a commitment and therefore adds that the bank has chosen its best service experts to serve in the special unit.
Hanan Freidman’s promise to solve every problem within 24 hours and to personally see to the ones which had not been solved in that time, are not all he says in that advertisement. Although the advertisement addresses Leumi customers, it obviously aims at a wider audience, else the bank would not have spent so much money on the campaign.
“I will personally see that you receive the service you deserve”
Towards the end of the announcement Freidman writes: If you do not receive an adequate answer to your request within 24 hours, write me a WhatsApp message on 050 999 9988 and I will personally see that you receive the service you deserve.
The CEO of Bank Leumi, one of the two largest banks in Israel, employing 8,173 staff members with an annual turnover of 18.22 billion shekels in 2022, is committing himself to personally take care of customers’ requests!
Is it a contract?
I maintain that it is a contract because Hanan Freidman signs the announcement in his own signature. It is not a general promise made by Leumi bank; it is a promise which bears the CEO’s personal signature.
I am quite sure that there are people who would like to see Hanan Freidman fail. Disappointed, untrusting customers, journalists or sceptic senior management members may not agree with his new direction. I dare to suggest that even Rakefet Russak-Aminoach, Hanan Freidman’s predecessor at the bank would not shed a tear if the operation fails. I am also sure that before announcing his commitment, Freidman had received legal advice from the bank’s legal advisors.
My history as a Leumi customer
Following my father in law’s recommendations, I happily opened a new account at Leumi bank. I was a satisfied customer until about ten years ago when the bank decided to implement efficiency steps. The steps included: cutting back on staff, shutting down branches and other drastic measures. The bank’s service level had deteriorated to a point at which I decided to move my money to another bank. Moving to Mizrachi bank, I left a dormant account at a Leumi branch for “safe keeping”. A letter, stating that the dormant account had been transferred to yet another branch, brought me to the decision to abandon Leumi Bank altogether. I later learnt that many people left Leumi bank for similar reasons.
Why is Freidman changing the bank policy?
Rakefet Russak - Aminoach, former CEO of Leumi bank, led the bank’s digitalization process. Hanan Freidman takes personal responsibility to improve the service.
The bank is not losing money, so why should Hanan Freidman personally commit to the new service?
I must say that I have no inside information regarding this question and my answer is based on my own evaluation of the situation.
It seems to me that a great many customers have left the bank over recent times. It is reasonable to assume that private customers’ accounts form a risk-free, profitable segment of the bank’s portfolio and their collective weight is substantial. There is no doubt in my mind that before taking the decision, Freidman had analyzed customer trends at Leumi and other banks.
Implementing the decision
After the decision was made, Freidman had to present it to the board of directors. He may have not received full support or sympathy from his colleagues, especially those who wished to be sitting in his chair. But that is the way of the world.
In addition, managers who were leading changes under Russak-Aminoach leadership, might have wished to continue the efficiency processes they had been promoting during her time, rather than follow Freidman’s leadership.
However, to lead such a substantial change, the CEO must have full support of the highest management members, including those who think differently.
The decision to revolutionize the service must be cascaded to all employees and actions must be drawn out. The bank must make sure there is available staff, and all team members understand the meaning of supplying service within 24 hours.
Hanan Freidman will be evaluated by his ability to meet his targets, and so will his branch managers.
What is missing from the Freidman’s announcement?
The campaign does not mention money. There is not a single word about how much money customers will have to pay for the service. The bank is not committing to reducing service charges, decreasing interest rates for borrowed money or increasing interest rates for investments. The bank commits only to providing speedy, high-quality service: to provide the best service in Israel.
The campaign focuses on service alone. Service that the public is not used to receiving.
What kind of service is the public used to receiving?
There is no need to expand on the appalling service level in Israel, especially from big companies. Suffice to mention the long time one must wait for a reply when trying to reach the bank by phone, or the inability to solve problems because the person who finally replies is just a cog in the system. I recently needed an urgent solution to a financial problem. Chatting online, the type of service I chose, was much worse than having to wait for a person to answer my telephone call. My problem was finally addressed after I demanded to communicate with a person at the Tel Aviv headquarters, not before I was transferred to a person whose job was to provide technical support and therefore was free to answer my call.
Service is usually better in small companies. I was emotionally moved recently, when a mattress I ordered from Poliron arrived on time with a pleasant deliverer.
In one of my previous articles I mentioned Staples Inc. an American chain store, supplying office equipment. The CEO of Staples Inc. declared that for him, the most important thing was that customers would consider his service best in the world. That goal determined the company’s policy to be better than its competitors and attract customers to return to Staples shops time and again.
How will Leumi’s new policy affect the general service level in Israel?
It looks as though Hanan Friedman and Leumi bank are setting new standards for service that have never been seen in Israel before. I hope that other banks and companies will have no other choice but to follow the new standards.
The first to follow the new standard may be Ofer Green, the CEO of Nestle ice cream company who recently addressed the public regarding year-round availability of the Nestle product Crunch ice cream. He wrote:
Ofer Green doesn’t commit himself personally. However, the message is phrased in first-person plural: “We are accelerating”, “we promise” …
it is already a step forward when the CEO uses his name to write in the name of the company.
If Hanan Friedman’s personal commitment raises the service level in Israel, we shall be grateful, even if we are not customers of Leumi bank.
Summary and recommendations
People who lost a day’s work waiting for delivery of a new bed or a new kitchen know the price of bad service.
I have worked with companies that were providing low level service and I remember the angry messages left by disappointed customers and their frustrated conversations with customer service representatives at the telephone centers. Ordinary folks, like you and me can go crazy in these situations.
Decisions to focus on improving service levels are taken regularly, but they can only succeed when the CEO is personally committed to the process.
Mr. Hanan Freidman, CEO of Leumi bank personally leads a revolution in the bank’s approach to customer service. It is a revolution not only to Leumi bank but to all companies in Israel. Hanan Freidman leads by example. He provides his personal telephone number to enable customers to reach him directly.
His success will be good news for all of us, not only his bank customers, because his competitors and other companies will have to adjust themselves to the new standards.
How does it affect CEOs?
When the service level in Israel is so low, there is an opportunity to be different and shine out.
Be the best and you will succeed.
My First Book: Manage! Best Value Practices for Effective Management