A records management capability framework for the FirstRand Banking Group

Van der Klashorst, Lizelle (2005-03)

Thesis (MPhil)--Stellenbosch University, 2005.

Thesis

ENGLISH ABSTRACT: Competitive pressures in every company worldwide always have, and probably always will, drive leading institutions to adopt smarter, faster and more cost effective ways of providing customers with feature-rich products and outstanding service, in order to differentiate specific offerings to local and global markets. This approach is both inevitable and laudable. At the same time, communications (physical and electronic) have made the world a smaller place and presented a larger target audience for each company's goods and services. However, customers have become better educated, more sophisticated and more demanding, whilst competitors have raised standards and the fight for customer loyalty has intensified. As these pressures increased, the appropriate level of corporate governance has not always been applied, as evidenced by the well publicised failure of Enron in the USA, and many others worldwide. The typical reaction has been to produce an increasing raft of legislation and regulation, designed to protect the consumer against 'cavalier' corporate behaviour, and an equally increasing demand for more and better information. The Banking Industry has not escaped this trend. Its failures have not been as dramatic as Enron and the consequences not as severe. Nevertheless, the potential impact of failure through poor corporate governance is huge and legislation and regulation has become highly visible through acts such as the 'Financial Advisory and Intermediary Service Act' (FAIS), the 'Financial Intelligence Centre Act' (FICA) and the Basel II Committee, - all emphasising integrity, authenticity, completeness, transparency, security, retention, protection, and eventual disposal of information. This assignment examines the relationship between the concepts information management, content management and records management and their importance as enablers of corporate governance. It highlights the current records management capability- maturity within the FirstRand Banking Group and presents a future solution and a practical approach to migration. Whilst understanding the challenges associated with implementing a records management strategy and programme, it emphasises the needs and the huge benefits for the FirstRand Group in meeting its corporate obligations, improving customer service and reducing operating costs. The future solution is set within a Records Management Capability Framework which encompasses how records must be managed by a consistent set of rules. It presents a typical records management life cycle from creation to disposal; it examines how practical systems design can balance the need for structure and stability whilst providing flexibility for operational use; it documents design principles and critical standards; it outlines implementation guidelines; and it recommends policies, ownership, organisational structures and roles, and governance mechanisms within the FirstRand Business Model. FirstRand's records management competency was audited and measured against a capability maturity model (the Carnegie Mellon University's Software Engineering Institute's approach). The results indicated significant cultural and operational challenges in building a records management capability, but it was concluded that knowledge management and sharing of information and intellectual assets (facilitating faster access to better quality and up-to-date information and building corporate memory and business agility) could be delivered only by a well conceived and carefully implemented Records Management Capability Framework.

AFRIKAANSE OPSOMMING: Kompetisie noop suksesvolle besighede, organisasies en soortgelyke instellings om kwaliteit produkte, goedere en dienste teen mededingende pryse aan verbruikers of kliënte te lewer. Koste-effektiwiteit speel 'n groot rol, in ag genome dat die kwaliteit en verskeidenheid van produkte en goedere nie mag taan nie. Die spoed en gehalte van kliëntediens kan die maatskappy 'n voorspsrong gee, in ag genome die toenemende kompetisie met ander maatskappye in dieselfde industrie of mark. Kompetisie met ander maatskappye of instansies in dieselfde mark of industrie, en differensiasie van beide produkte en dienste is onvermydelik. Grootskaalse ontwikkeling in die kommunikasie-industrie dra by tot die bereikbaarheid van ander wêrelddele. Die mark (voorheen onbereikbaar) vir produkte, goedere en dienste, is skielik soveel groter en soveel meer bereikbaar. Die hedendaagse verbruiker en kliënt is meer gesofistikeerd en meer ingelig ten opsigte van produkeienskappe, -variasies, -verskeidenheid, voordele, nadele, ensovoorts, en dring daarop aan dat voorkeure en verwagtinge konstant aan voldoen sal word en selfs met gereelde tussenposes sal verbeter. Kompetisie dryf standaarde vir hoë gehalte produkte en kliëntediens tot die hoogste vlakke. Maatskappye kompeteer toenemend vir kliëntelojaliteit en markbesit op 'n daagliske basis. Met die fokus op kompetisie, klientediens en lojaliteit, en gehalte produkte en dienste, is goeie korporatiewe beheer en bestuursbeginsels nie konstant en deurlopend toegepas nie, soos blyk uit die gebeure met Enron in die Verenige State van Amerika. Deur middel van toenemende wetgewing en regulasies poog regerings wêreldwyd om die belange van die verbuiker / kliënt te beskerm. Inligting het 'n mededingende faktor geword, terwyl die aanvraag na relevante en akkurate inligting steeds toeneem. Die Finansiële Industrie, en meer spesifiek die Bankwese, het nie begonoemde vereiste vir spoed, gehalte en relevansie vrygespring nie, aangesien finansiële instellings soos die 'Federated Bank' in die Verenigde State van Amerika en die Suid Afrikaanse Reserwe Bank, dit ten doel het om na die belange van die verbruiker om te sien. Goeie korporatiewe bestuurstandaarde en riglyne is egter ook van toepassing op die bankwese in Suid Afrika, soos gemanifesteer deur wetgewing en industrie riglyne en standaarde, byvoorbeeld, FAIS en FICA en die 'Basel II Committee'. Hierdie instellings het ten doel om die verbuiker / kliënt te beskerm deur riglyne en standaarde te stel wat die integriteit, geloofwaardigheid, regswetlikheid, volledigheid, deursigtigheid, sekuriteit, retensie van, en toegang tot inligting verseker. Die werkstuk bespreek die verband tussen die konsepte inligtingbestuur, inhoudbestuur en rekordsbestuur en die doel daarvan ter ondersteuning van goeie korporatiewe bestuur. Dit belig die huidige rekordsbestuur bekwaamheid van die 'FirstRand Banking Group', die tekortkominge, en motiveer 'n toekomsgerigte rekordsbestuurmodel, riglyne vir implementering en 'n praktiese benadering tot migrasie. 'n Strategiese benadering tot rekordsbestuur belig vele uitdagings. Tog kan die langtermyn voordele, soos byvoorbeeld die toepassing van goeie inligtings- of rekords- en korporatiewe bestuurbeginsels, uitmuntende kliëntediens en koste-effektiwiteit nie geignoreer word nie, aangesien dit die 'FirstRand Banking Group' 'n voorsprong kan gee op ander banke in die industrie asook kliënte-besit. Die model vereis 'n vernuwende benadering tot inligting- en rekordsbestuur as 'n katalisator ter ondersteuning van goeie inligtings- en korporatiwe bestuursbeginsels in belang van die kliënt.

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