Dear Bank of America employees: help us help you
Bank of America CEO Brian Moynihan told employees today about a year-long initiative, “Project New BAC,” to scour the bank for best ideas on how to lower expenses, lift revenue and otherwise improve America’s biggest bank as measured by assets.
The CEO hopes the effort, named “Project New BAC,” will improve a key measure of the bank’s productivity, according to a message the CEO posted on the company’s internal website.
The company’s efficiency ratio – a measurement of expenses to revenue – was 62 % in 2010. Moynihan told employees he wants that number down to 55%. The bank has already announced plans to shutter about 10% of its 5,900 bank branches across the country.
Bank of America posted a $2.2 billion loss in 2010, and Moynihan has signaled the bank needs to cut costs and sell existing customers more products to if it is to return to profitability. Last month, Bank of America laid out its goals for the company, and introduced a new word into our lexicon: the “peace dividend.” Moynihan pledged the bank would hold off on big deal making, and instead will funnel the company’s resources to where it will move the needle for shareholders.
Forty-four executive will devote work full time on “Project New BAC” over the next five or six months, with the help of two consulting firms, EHS Partners and Promontory Financial Group. They’ll fan out around the company to ask employees low- and high-level for ideas on how they can do their jobs better and how BofA can tweak its financial-product offerings to make them more appealing.
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