need assignment
After you read the article called “
Strategic alignment between relationship marketing
and human resource management in financial services organizations” written by Damianos Giannakisa and Michael J. Harkerb
Have to write a paper in which you are assessing your current skills and you develop a plan to improve the skills the article is indicating as very important to be successfully in the financial services industry. You can also use other material to support your paper. Use APA font 12 not less than 8 pages.
Strategic alignment between relationship marketing and human
resource management in financial services organizations
Damianos Giannakis
a
and Michael J. Harker
b
*
a
Hellenic American University, Athens, Greece;
b
Department of Marketing, University of
Strathclyde, Glasgow, UK
(Received 28 October 2013; accepted 12 December 2013)
This paper notes the critical importance of financial services firms being able to
successfully implement services and relationships orientated marketing strategies.
Through summarizing recent literature and outlining strategic practice, the necessity of
aligning human resource management (HRM) policies with relationship marketing
(RM) to achieve and sustain corporate goals is demonstrated. The results of a set of case
studies and managerial interviews with senior retail banking executives from the Greek
financial services sector are used to develop a framework by which this might be done.
Specifically, the role of the strategically significant Human Capital Chief Enabling
Officer as a link between HRM and RM is proposed and defined.
Keywords: relationship marketing; human resource management; strategic alignment;
human capital chief enabling officer; financial services; Greece
The fundamental understanding of what marketing is, what success looks like and how it
might be achieved is something that has undergone significant change in recent times. The
professional academic body in the USA has gone as far as to make a literal redefinition in
terms of services and relationships (American Marketing Association [AMA], 2004).
Consensus is far from achieved, but what is agreed upon is that the provision of high-
quality services is a basic requirement to ensure survival, let alone dominance in many
sectors (Vargo & Lusch, 2004, 2008b). Financial services organizations such as retai
l
banks are continuously adopting and adapting relationship marketing (RM) strategies
inside a highly volatile marketing environment in order to build and sustain a competitive
market share, profitable accounts and quality customer portfolios.
This issue is one which has received significant attention in papers previously
published in this journal, with specific attention given to the role technology and
information management systems might play in developing and sustaining a relationally
orientated strategy (Dibb & Meadows, 2004; Ryals & Payne, 2001). More recently, this
journal has also considered the topics of marketing orientation and strategic plan
implementation (Blankson et al., 2013), and very recently the role and significance of line
management in marketing strategy implementation (Ramaseshan, Ishak, & Rabbanee,
2013). This is a line of discussion we wish to maintain, and to extend it further by
considering further the human elements in respect of developing and implementing
relationally orientated strategies and attempting to make a specific contribution in respect
of better structuring management processes.
q 2014 Taylor & Francis
*Corresponding author. Email: michael.harker@strath.ac.uk
Journal of Strategic Marketing, 2014
Vol. 22, No. 5, 396–419, http://dx.doi.org/10.1080/0965254X.2013.876082
mailto:michael.harker@strath.ac.uk
mailto:michael.harker@strath.ac.uk
http://dx.doi.org/10.1080/0965254X.2013.876082
The key themes of the literature review in this paper are therefore the switch from
product to services/relational orientations and the concept and importance of alignment
within business operations and processes, with special focus on the Strategic Alignment
Model (SAM) presented by Henderson and Venkatraman (1993) (see also Henderson,
Venkatraman, & Oldach, 1996) in describing the strategic choices that financial services
line managers face. Attention then turns to extant literature and prior field-research
findings on the strategic alignment of RM and human resource management (HRM)
specifically, as a means of successfully implementing relational corporate-level strategies
where we argue that people within and outside organizations are of critical importance in
relational- and service-oriented and strategizing organizations.
The paper continues by outlining the method and methodology of the primary research
component of this project, namely the development of five in-depth case studies of Greek
retail banks in combination with 20 interviews with senior managers across a range of
business processes and functions (please refer to
1). The results of the fieldwork
are combined with the emergent ideas and theory from the literature as a means of
reflecting and considering how alignment between marketing and HR might best be
achieved. The specific and original contribution of this paper is the introduction and
definition of a proposed senior management role – that of the Human Capital Chief
Enabling Officer (HCCEO) – which, if adopted appropriately would allow and enhance
alignment between these two critical business functions.
The evolution – some might say revolution – in marketing theory in the last 25 years has
taken it a long way away from its origins (Harker & Egan, 2006). Key figures in the early
development of marketing (Alderson, 1957; McGarry, 1950; McKitterick, 1957) created
‘lists’ of variables deduced from econometric, profit-optimizing equations. This was
labelled as the ‘functionalist school’ of marketing (McGarry, 1950). Herein lie the origins
of the in/famous marketing mix (Borden, 1964) – an abbreviated/truncated subset of
4 variables (McCarthy, 1960) from 12 identified as being strongly correlated with
profitability – product, price, branding, distribution, fact finding and analysis, personal
selling, advertising, promotions, packaging, display, servicing, physical handling. For
many years, the primacy of this simple framework was unquestioned, but by the beginning
of the 1990s this was no longer true (Waterschoot & Van den Bulte, 1992). This concern
stemmed from the fact that whilst the original microeconomic variables, derived through
empirical induction, had solid theoretical foundations – in terms of economic theory at
least – the marketing mix had only second-order links to these foundations. Furthermore,
many businesses were operating in situations and markets with characteristics significantly
different from those of North American consumer goods markets – Europe or Asia,
industrial or services markets (Elg & Johansson, 1996). Transactional marketing was
failing to satisfy modern marketing conditions. This issue was and continues to be
exacerbated by the transition of developed economies to being service-based. When
marketing a service, it has long been argued that the objectives should be not just to only
attract, but also to then keep and maintain the customer – to develop a long-term
relationship with them (Bitner, Booms, & Mohr, 1994; Cravens & Piercy, 1994; Grönroos,
1991; Gummesson, 1987). When selling a physical product, the costs of production can be
offset by the purchase. With a service, the majority of costs are often incurred whilst
‘setting-up’ the service (Berry & Parasuraman, 1991; Booms & Bitner, 1981), for example
accountancy and banking. The implication of this is that a longer-term strategy, in
Journal of Strategic Marketing 397
conjunction with placing significant emphasis on customer retention would yield
dividends (Berry, 1995; Grönroos, 1990; Parasuraman, Berry, & Zeithaml 1991; Payne &
Richard, 1993).
For these reasons and others, in 2007 the AMA produced a customer-centric definition
of marketing where the discipline was defined as follows: ‘Marketing is the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large’. In their
academic work, Vargo and Lusch (2004, 2006, 2008a; Vargo, 2009) – who are key
movers in the AMA – described the derivation of this definition, defending it [primarily]
on the basis that a service- rather than product-focused definition was a more natural and
accurate reflection of the primacy of service concepts in contemporary marketing practice.
Vargo and Lusch (2004, 2008b) suggest that marketing is evolving into a new dominant
logic – one in which relationships and services hold primacy over products. Is a service
part of a relationship, or is a relationship perhaps part of a service? Regardless, both
current services marketing and RM literatures make the case that the people responsible
for service provision and/or customer contact are of very significant importance in respect
to successful implementation of marketing strategy and therefore to the success of the
organization as a whole. The people they meet are critical in the mind of the consumer
when they are assessing the ability of the company to serve them well. People working for
the organization are the ones the customer trusts or does not trust, people in
the organization give good customer service and do the job properly or they do not. It is the
people – not the abstract concept/entity/branding of the firm – who truly learn about the
customers and whom the customers learn about the firm through, it is the people from
whom the customer expects (and sometimes gives to) loyalty, trust and commitment.
To many customers, the firm is its people.
It can be argued, therefore, that a successful service organization must have a focus on
firm–customer relationships and therefore have relationship management at the heart of
tactical marketing processes and strategic corporate philosophy. The implication thereof
is that senior management must give great consideration as to what and who is at the other
end of the relationship to the customer (Dwyer, Schurr, & Oh, 1987; Ingram, 1990, 2004;
Levitt, 1983; Swan & Nolan, 1985; Tzokas, Saren, & Kiziridis, 2001). That is, marketing
success will be, to a great extent, the result of successful management of people –
customers outside the business, and front-line staff providing services within. Consider the
implications of Vargo and Lusch’s position. Successful marketing strategy is principally
concerned with developing and retaining competitive advantage through excellent
services marketing. Most fundamentally, excellent services’ marketing is based on
services provision, service provision is based on service providers, and the quality and
ability of service providers is a function of HRM. In short, successful implementation of
marketing requires successful implementation of HR strategies and operational tactics.
We now move on to outline the concept of alignment in a business process context.
In recent years, Labovitz and Rosansky (1997, p. 5) defined alignment ‘as both a noun and
a verb – a state of being and a set of actions . . . alignment . . . refers to the integration of
key systems and processes and responses to changes in the external environment’. Often
the concept of alignment when used in business literature is a reference to strategic fit
(Smaczny, 2001), strategic match (Mintzberg, Ahlstrand, & Lampel, 1998) or simply
the interface between two things (van der Zee & de Jong, 1999). In fact, Beal and
D. Giannakis and M.J. Harker398
Yasai-Ardekani (2000, p. 735) identified alignment as ‘moderation, mediation, profile
deviation, gestalts, covariation, and matching’. In recent years, the term ‘alignment’ has
grown in use – especially in HRM literature – as a descriptive idiom to symbolize a range
of management-driven processes towards the accomplishment of strategic goals. This is an
arrangement of groups or forces in relation to one another (Short, 2008, 2009). However,
what this particular definition fails to capture is the magic of alignment. These are all the
extraordinary things that can be achieved when teams start to share the same sense of
purpose. It is the degree of mutual support arising when team members buy into a common
set of assumptions, the shared commitment derived from striving to achieve shared goals;
the elegance that is the by-product of a team balanced in skills and competences (Burdett,
1994). The strategic RM and HRM alignment framework, as it later appears in this paper,
has as its basis a bank’s organizational ability and adaptability to accomplish a ‘strategic
fit’ and ‘functional integration’ (Henderson et al., 1996; Venkatraman & Camillus, 1984)
in two different chronological stages. In this context, the strategic alignment framework
capitalizes on the SAM (as shown in Figure 1) of Henderson and Venkatraman (1993;
Henderson et al., 1996) in describing the strategic choices that managers face when
aligning the corporate business strategy and a business activity – in this case, RM.
Henderson and Venkatraman (1993), in their academic work, developed the SAM to
describe the strategic choices that line managers face when aligning the corporate business
strategy and a function. The basic assumption of the SAM is line management’s ability to
Figure 1. Strategic alignment model of Henderson and Venkatraman. Source: Henderson and
Venkatraman (1993).
Journal of Strategic Marketing 399
achieve a strategic fit and functional integration (Venkatraman & Camillus, 1984) between
the models domains, and thereby have an impact on overall business success (Henderson
et al., 1996). SAM can be of value in guiding strategy formulation and implementation
since it helps to prioritize decisions and resource allocation, thus ultimately achieving
strategic alignment (Henderson et al., 1996). SAM conceptually represents the framework
for the HRM and RM strategic alignment framework in a retail financial services context.
Given the SAM, the strategy of a financial services firm is to be viewed in terms of its
strategic positioning in its chosen marketplaces, and confined to external considerations
(Henderson & Venkatraman, 1993). More explicitly, the business scope (see SAM) sets
out the external boundaries of the organization, product and market sectors and segments
to be addressed, the geographical limits and any other relevant constraints on the domain
of operations of the organization. Corporate business governance defines the ways and
means of addressing the chosen business areas (McDonald, 1994). The distinctive
competencies relate to some organizational capabilities that make the business scope and
governance real, actual, and reflect the strengths of the organization as perceived by
external markets – the customers (Henderson and Venkatraman, 1993). These authors also
consider the essential capabilities that the organization must have, or have access to, but
not the particular skills of individual employees. This last part (e.g. the impact of specific
skills and competencies of the relational sales-reps towards RM strategy implementation)
deserves our research attention since the co-creation of service represents a significant
value-adding process (Grönroos & Ravald, 2011; Vargo & Lusch, 2004) and reflects on
the sustainability of a competitive advantage of a financial services firm.
We argue that alignment is greatly important in formulating RM strategies as well as in
their implementation, and that RM and HRM might be considered as adjacent paths to a
common destination (e.g. value development) and that explanations and understanding of
human actions, interactions, hierarchy, power, negotiation, learning and development will
be of increasing relevance and significance in marketing management. We now explore
why an RM-focused financial services firm should strategically align RM and HRM.
There is limited extant literature (Chimhanzi, 2004; Chimhanzi & Morgan, 2005;
Jaworski & Kohli, 1993; Piercy, 1997a, 1997b) on the empirical implementation of RM
strategies, and this paucity is extended to examinations of the RM–HRM cross-functional
interface. This rather limited research exposure is indicative of the challenges presented in
exploring RM and HRM alignment in practice – especially in the financial services
business. To strategically impact upon firm performance requires aligning the HR system
(internal fit) with strategic goals (external fit). This alignment should establish a closer
relationship between HRM and other key functions – including, of course, marketing.
Legge (1995a, p. 35, 1995b, pp. 66–67) suggests that ‘effective HRM is seen necessarily
to involve a focus upon fostering employee motivation, commitment and development’.
This is a business approach acknowledging the importance of HRM to the aims of a
relational-oriented business, whilst reflecting attempts by management to create a work
environment that emphasizes employee development through practices such as training,
participation and communication, and the importance of having innovative, flexible,
committed employees who are valued resources (Beer, Spector, Lawrence, Quinn Mills, &
Walton, 1984a, 1984b; Boxall, 1992; Boxall & Purcell, 2003; Boxall, Purcell, & Wright,
2007; Guest, 1987, 1997, 2000).
In a relational-oriented financial services firm, it becomes important for HR [as a
management team] to carefully monitor key personnel issues such as the selection and
recruitment of sales-reps, training them and developing their skills, and certainly
periodically evaluating their actual performance based on strategic and hence, on
D. Giannakis and M.J. Harker400
operational objectives. In their academic work, Vargo and Lusch (2004, 2006, 2008b;
Vargo, 2009) claimed that a service- rather than product-focused approach to marketing
was a more natural and accurate reflection of the primacy of service concepts in
contemporary marketing practice. These services are provided by people that consumers
engage with, thus making these relationships the context within which services are
provided. This means that high-quality services need high-quality people, and they must
be recruited, developed and maintained by HR. HR and marketing must be aligned.
Hennig-Thurau and Klee (1997, p. 751), whilst reflecting on a customer-centric marketing
concept orientation, consider ‘relationship quality as the degree of appropriateness of a
relationship to fulfill the needs of customers’. Academics define relationship quality as a
bundle of intangible values resulting in an expected long-term relationship between
related parties, which cannot be easily duplicated by competitors (Fruchter & Sigue, 2005;
Levitt, 1981; Wong, Hung, & Chow, 2007). Therefore, relationship quality plays a critical
role in the study of long-term relationship maintenance (Finn, 2005).
No doubt, the financial services sector (e.g. retail banking) is a demanding business
sector. Operators within this sector fully recognize that to survive and thrive requires
firm–client relationships to be developed and maintained as a means of competitive
advantage through added value and switching costs. Sale teams are therefore required to
develop a good and sustainable relationship with their clients, thereby maintaining
institutional sustainability – researchers having concluded that it is very often more
expensive to acquire new customers than to keep existing ones (Reichheld & Sasser,
1990). Further, the development of a strong and intimate series of interactions can improve
customer loyalty, which in turn leads to increased profits for the firm (Athanassopoulou,
2006). Trust is now accepted as one of the main factors in influencing a customer to
develop and maintain a relationship with the service provider (Liang & Wang, 2006;
Shekhar & Gupta, 2008). Ndubisi (2007) considers trust to be a key determinant of the
quality of buyer–seller relationships. Crosby, Evans, and Cowles (1990, p. 70) indicate that
high-relationship quality ‘means that the customer is able to rely on the sales-rep’s integrity
and has confidence in the salesperson’s future performance because the level of past
performance has been consistently satisfactory’. Summarizing the literature on relation-
ship quality in financial services, Rajaobelina and Bergeron (2009) (see Table 1) consider
the impact of a service provider’s level of knowledge and experience with regard to the focal
product or service, concluding that experienced and knowledgeable employees can reduce
customers’ perceived uncertainty and anxiety, which may lead to higher customer
satisfaction and trust.
This paper has so far conceptually explored the reasons ‘why a relationally oriented bank
should strategically align RM and HRM’, and brought attention to the idea that HRM
policies, practices and procedures can create organizational value generally and boost
RM-oriented sales efforts specifically.
We now turn to the primary research aspect of this project. From an exploratory
research stance, this is a topic dealing with unknown variables and contexts within a social
environment, as is the case for competitive banks. Therefore, the aim of such a qualitative
research approach was to produce insights rather than measure, to explore rather than
Journal of Strategic Marketing 401
pin down. On that basis, it was decided to produce a series of case studies in an attempt to
meet the following research objectives:
(1) Explore the reasons why an RM-focused financial services firm should
strategically align RM and HRM;
(2) Explore the process how and why HRM creates organizational value and boosts
RM performance.
Yin (2003, p. 14) defines case study research methodology as ‘an empirical enquiry
that investigates a contemporary phenomenon within its real-life context; when the
boundaries between phenomenon and context are not clearly evident’. Yin’s definition
supports our rationale behind the adoption of the use of five Greek retail banks to develop
cases as the research methodology for the purposes of this paper. Brief outlines of these
banks are available in Appendix 1. Each case incorporated the examination of four
business roles (Triangulation effect) through interviews with senior management, leading
to a total of 20 interviews. The four prescribed business roles were the HR, Marketing and
Sales Directors and a sales-rep in a business-to-consumer (B2C) point-of-sale role. The
breakdown of the 20 interviews by bank and role is given in the table within Appendix 1.
The five finally selected retail banks that took part in the study were competing B2C
retail banks. In the light of this, the investigators decided to incorporate into the cases
topics, facts, figures and issues that represented their growth momentum (e.g. assets under
management, loans and deposits development) over a five-year period and thus examined
performance indicators as well as the level of organizational change and uncertainty in the
firms’ environment. By selecting extreme cases, the aim was to amplify differences that
might exist, thereby making these differences easier to observe and understand for the
reader. The two following stages involved the preparation and the actual data collection
process. In accordance with Yin’s (2003) suggested process, there were two major
data analysis strategies: (1) relying on theoretical propositions where the researchers
followed the theoretical propositions that led to the empirical case study. The original
objectives and design of the case study research method are based on such propositions,
which in process reflect the research questions, reviews of the literature and new insights;
and (2) developing a descriptive framework for organizing the case study. Therefore,
the investigators adhered to the following major principles – stages of multiple case
analyses producing a comparative and contrasting data analysis (see Appendix 1) making
use of all the relevant evidence collated during the field research process.
In this respect, the investigators considered major rival interpretations, and explored
each of them in turn. The analysis addressed the most significant aspect of each case study
out of the sample set – driven by the investigators’ theoretical research objectives. The
analysis drew on the researchers’ prior expert knowledge in the area of the case study, but
in an unbiased and objective manner (Rowley, 2002).
Based on the field research findings (see Table 2) and the previously discussed literature,
we now present a systematic RM and HRM strategic alignment framework in support of
implementing and sustaining RM strategy.
Conceptually, this framework develops in two distinct chronological phases. The first
alignment phase calls for functional integration of RM and HRM (see Figure 2) and the
second calls for a systematic interaction between the centrally located HRM, the RM
specialists, line sales, the HCCEO (a critical new HR role to enhance the success of
D. Giannakis and M.J. Harker402
T
a
b
le
1
.
L
it
e
ra
tu
re
o
n
re
la
ti
o
n
sh
ip
q
u
a
li
ty
:
c
o
n
c
e
p
ts
,
a
n
te
c
e
d
e
n
ts
,
c
o
n
se
q
u
e
n
c
e
s
a
n
d
c
o
n
te
x
ts
.
A
u
th
o
rs
R
e
la
ti
o
n
sh
ip
q
u
a
li
ty
A
n
te
c
e
d
e
n
ts
C
o
n
se
q
u
e
n
c
e
s
C
o
n
te
x
t
C
ro
sb
y
,
E
v
a
n
s,
a
n
d
C
o
w
le
s
(1
9
9
0
)
T
ru
st
,
sa
ti
sf
a
c
ti
o
n
S
im
il
a
ri
ty
,
e
x
p
e
rt
is
e
,
re
la
ti
o
n
a
l
se
ll
in
g
N
o
n
e
W
h
o
le
L
if
e
In
su
r
a
n
c
e
p
o
li
c
y
h
o
ld
e
rs
in
U
S
A
M
o
rg
a
n
a
n
d
H
u
n
t
(1
9
9
4
)
C
o
m
m
it
m
e
n
t,
tr
u
st
In
te
r-
fi
rm
re
la
ti
o
n
sh
ip
s,
e
ff
e
c
ti
v
e
c
o
m
m
u
n
ic
a
ti
o
n
,
sh
a
re
d
v
a
lu
e
s
In
te
r-
fi
rm
tr
u
st
,
c
o
o
p
e
ra
ti
o
n
R
e
la
ti
o
n
sh
ip
q
u
a
li
ty
st
a
n
d
a
rd
s
im
p
ro
v
e
m
e
n
t
W
ra
y
,
P
a
lm
e
r,
a
n
d
B
e
jo
u
(1
9
9
4
)
T
ru
st
,
sa
ti
sf
a
c
ti
o
n
E
th
ic
s,
e
x
p
e
rt
is
e
,
re
la
ti
o
n
sh
ip
d
u
ra
ti
o
n
,
se
ll
in
g
o
ri
e
n
ta
ti
o
n
,
c
u
st
o
m
e
r
o
ri
e
n
ta
ti
o
n
N
o
n
e
F
in
a
n
c
ia
l
se
rv
ic
e
s
S
m
it
h
(1
9
9
8
)
T
ru
st
,
c
o
m
m
it
m
e
n
t,
sa
ti
sf
a
c
ti
o
n
R
e
la
ti
o
n
sh
ip
d
u
ra
ti
o
n
N
o
n
e
3
6
6
m
e
m
b
e
rs
o
f
p
u
rc
h
a
si
n
g
m
a
n
a
g
e
m
e
n
t
A
ss
o
c
ia
ti
o
n
o
f
C
a
n
a
d
a
K
im
,
L
e
e
,
a
n
d
Y
o
o
(2
0
0
6
)
T
ru
st
,
sa
ti
sf
a
c
ti
o
n
C
u
st
o
m
e
r
o
ri
e
n
ta
ti
o
n
,
c
o
m
m
u
n
ic
a
ti
o
n
,
re
la
ti
o
n
sh
ip
b
e
n
e
fi
ts
C
o
m
m
it
m
e
n
t,
lo
y
a
lt
y
,
w
o
rd
o
f
m
o
u
th
8
8
7
d
in
n
e
r
p
a
tr
o
n
s
a
t
2
1
lu
x
u
ry
re
st
a
u
ra
n
ts
in
K
o
re
a
M
a
c
in
to
sh
(2
0
0
7
)
T
ru
st
,
sa
ti
sf
a
c
ti
o
n
C
u
st
o
m
e
r
o
ri
e
n
ta
ti
o
n
,
e
x
p
e
rt
is
e
W
o
rd
o
f
m
o
u
th
,
lo
y
a
lt
y
2
2
0
C
a
n
a
d
ia
n
b
u
si
n
e
ss
tr
a
v
e
ll
e
rs
W
o
n
g
,
H
u
n
g
,
a
n
d
C
h
o
w
(2
0
0
7
)
T
ru
st
,
sa
ti
sf
a
c
ti
o
n
In
fo
rm
a
ti
o
n
sh
a
ri
n
g
W
il
li
n
g
n
e
ss
to
re
fe
r,
a
n
ti
c
ip
a
ti
o
n
o
f
fu
tu
re
in
te
ra
c
ti
o
n
2
0
7
c
o
n
su
m
e
rs
o
f
fi
n
a
n
c
ia
l
se
rv
ic
e
s
in
H
o
n
g
K
o
n
g
C
h
e
n
g
,
C
h
e
n
,
a
n
d
C
h
a
n
g
(2
0
0
8
)
T
ru
st
,
sa
ti
sf
a
c
ti
o
n
C
u
st
o
m
e
r
o
ri
e
n
ta
ti
o
n
,
e
x
p
e
rt
is
e
,
in
te
rp
e
rs
o
n
a
l
re
la
ti
o
n
sh
ip
C
o
m
m
it
m
e
n
t,
lo
y
a
lt
y
A
ir
li
n
e
re
la
ti
o
n
sh
ip
q
u
a
li
ty
Journal of Strategic Marketing 403
T
a
b
le
2
.
D
a
ta
a
n
a
ly
si
s:
k
e
y
fi
n
d
in
g
s.
R
e
so
u
rc
e
s
F
ir
m
A
F
ir
m
B
F
ir
m
C
F
ir
m
D
F
ir
m
E
S
tr
a
te
g
ic
o
ri
e
n
ta
ti
o
n
S
tr
o
n
g
sa
le
s
fo
c
u
s
w
it
h
p
a
ra
ll
e
l
R
M
p
ra
c
ti
c
e
s
S
tr
o
n
g
sa
le
s
fo
c
u
s
w
it
h
p
a
ra
ll
e
l
R
M
p
ra
c
ti
c
e
s
R
e
la
ti
o
n
a
l
o
ri
e
n
ta
ti
o
n
D
e
v
e
lo
p
in
g
R
M
S
tr
o
n
g
re
la
ti
o
n
a
l
o
ri
e
n
ta
ti
o
n
P
e
rf
o
rm
a
n
c
e
m
a
n
a
g
e
m
e
n
t
p
ra
c
ti
c
e
s
F
u
ll
y
a
p
p
li
c
a
b
le
F
u
ll
y
a
p
p
li
c
a
b
le
L
o
w
p
ra
c
ti
c
e
s
L
o
w
p
ra
c
ti
c
e
s
F
u
ll
y
a
p
p
li
c
a
b
le
M
a
rk
e
ti
n
g
a
n
d
H
R
M
st
ru
c
tu
re
P
ro
d
u
c
t
m
a
n
a
g
e
m
e
n
t
in
d
is
ti
n
c
t
b
u
si
n
e
ss
u
n
it
s
P
ro
d
u
c
t
m
a
n
a
g
e
m
e
n
t
in
d
is
ti
n
c
t
b
u
si
n
e
ss
u
n
it
s
S
tr
a
te
g
ic
m
a
rk
e
ti
n
g
,
o
p
e
ra
ti
o
n
a
l
m
a
rk
e
ti
n
g
L
in
e
sa
le
s
P
ro
d
u
c
t
m
a
n
a
g
e
m
e
n
t
in
b
u
si
n
e
ss
u
n
it
s,
st
ra
te
g
ic
m
a
rk
e
ti
n
g
u
n
it
C
e
n
tr
a
l
H
R
M
,
fu
ll
a
p
p
li
c
a
ti
o
n
o
f
b
u
si
n
e
ss
p
a
rt
n
e
r
C
e
n
tr
a
l
H
R
M
,
fu
ll
a
p
p
li
c
a
ti
o
n
o
f
b
u
si
n
e
ss
p
a
rt
n
e
r
C
e
n
tr
a
l
H
R
M
,
L
im
it
e
d
,
h
o
w
e
v
e
r
d
e
v
e
lo
p
in
g
a
p
p
li
c
a
ti
o
n
o
f
B
u
si
n
e
ss
p
a
rt
n
e
r
C
e
n
tr
a
l
H
R
M
C
e
n
tr
a
l
H
R
M
K
n
o
w
le
d
g
e
m
a
n
a
g
e
m
e
n
t
Y
e
s,
sa
le
s-
re
p
s’
(t
e
c
h
n
ic
a
l
sk
il
ls
),
so
m
e
lo
n
g
-t
e
rm
le
a
rn
in
g
Y
e
s,
sa
le
s-
re
p
s’
d
e
v
e
lo
p
m
e
n
t
o
f
te
c
h
n
ic
a
l
sk
il
ls
Y
e
s,
sa
le
s-
re
p
s’
(t
e
c
h
n
ic
a
l
sk
il
ls
),
e
v
id
e
n
c
e
o
f
re
la
ti
o
n
a
l
c
o
m
p
e
te
n
c
ie
s
Y
e
s,
sa
le
s-
re
p
s’
d
e
v
e
lo
p
m
e
n
t
o
f
te
c
h
n
ic
a
l
a
n
d
re
la
ti
o
n
a
l
sk
il
ls
a
n
d
c
o
m
p
e
te
n
c
ie
s
Y
e
s,
sa
le
s-
re
p
s’
d
e
v
e
lo
p
m
e
n
t
o
f
te
c
h
n
ic
a
l
a
n
d
re
la
ti
o
n
a
l
sk
il
ls
a
n
d
c
o
m
p
e
te
n
c
ie
s
L
e
a
rn
in
g
o
rg
a
n
iz
a
ti
o
n
Y
e
s,
h
ig
h
-r
e
g
u
la
to
ry
a
n
d
p
ro
c
e
d
u
ra
l
e
n
v
ir
o
n
m
e
n
t
Y
e
s,
h
ig
h
-r
e
g
u
la
to
ry
a
n
d
p
ro
c
e
d
u
ra
l
e
n
v
ir
o
n
m
e
n
t
Y
e
s,
h
ig
h
-r
e
g
u
la
to
ry
a
n
d
p
ro
c
e
d
u
ra
l
e
n
v
ir
o
n
m
e
n
t
Y
e
s,
h
ig
h
-r
e
g
u
la
to
ry
a
n
d
p
ro
c
e
d
u
ra
l
e
n
v
ir
o
n
m
e
n
t
Y
e
s,
h
ig
h
-r
e
g
u
la
to
ry
a
n
d
p
ro
c
e
d
u
ra
l
e
n
v
ir
o
n
m
e
n
t
M
a
rk
e
t
in
te
ll
ig
e
n
c
e
sy
st
e
m
s
E
v
id
e
n
c
e
o
f
d
e
v
e
lo
p
in
g
m
a
rk
e
t
in
te
ll
ig
e
n
c
e
sy
st
e
m
s
a
n
d
a
n
a
ly
si
s,
lo
w
sh
a
ri
n
g
E
v
id
e
n
c
e
o
f
d
e
v
e
lo
p
in
g
m
a
rk
e
t
in
te
ll
ig
e
n
c
e
sy
st
e
m
s
a
n
d
a
n
a
ly
si
s
E
v
id
e
n
c
e
o
f
d
e
v
e
lo
p
in
g
m
a
rk
e
t
in
te
ll
ig
e
n
c
e
sy
st
e
m
s
a
n
d
a
n
a
ly
si
s,
p
a
rt
ia
l
sh
a
ri
n
g
L
a
c
k
o
f
a
d
e
q
u
a
te
m
a
rk
e
t
in
te
ll
ig
e
n
c
e
sy
st
e
m
s
E
x
c
e
ll
e
n
t
m
a
rk
e
t
in
te
ll
ig
e
n
c
e
sy
st
e
m
s,
in
fo
rm
a
ti
o
n
a
n
a
ly
se
d
a
n
d
sy
st
e
m
a
ti
c
a
ll
y
sh
a
re
d
S
a
le
s-
re
p
s’
re
la
ti
o
n
sh
ip
q
u
a
li
ty
to
th
e
b
u
y
e
r
S
a
le
s-
re
p
’s
ro
le
id
e
n
ti
fi
c
a
ti
o
n
T
e
c
h
n
ic
a
l
sp
e
c
ia
li
st
p
ro
d
u
c
t/
se
rv
ic
e
-f
o
c
u
se
d
T
e
c
h
n
ic
a
l
sp
e
c
ia
li
st
p
ro
d
u
c
t/
se
rv
ic
e
-f
o
c
u
se
d
S
a
le
s
c
o
n
su
lt
a
n
t
id
e
n
ti
ty
(r
e
la
ti
o
n
a
l-
fo
c
u
se
d
)
S
a
le
s
c
o
n
su
lt
a
n
t
id
e
n
ti
ty
(r
e
la
ti
o
n
a
l-
fo
c
u
se
d
)
S
a
le
s
c
o
n
su
lt
a
n
t
id
e
n
ti
ty
(r
e
la
ti
o
n
a
l-
fo
c
u
se
d
)
C
li
e
n
t
k
n
o
w
le
d
g
e
(B
2
C
)
D
e
v
e
lo
p
e
d
b
y
th
e
u
se
o
f
p
e
rs
o
n
a
l
b
a
n
k
in
g
a
n
d
m
a
rk
e
t
in
te
ll
ig
e
n
c
e
sy
st
e
m
s
D
e
v
e
lo
p
e
d
b
y
th
e
u
se
o
f
m
a
rk
e
t
in
te
ll
ig
e
n
c
e
sy
st
e
m
s
L
im
it
e
d
c
li
e
n
t
k
n
o
w
le
d
g
e
L
im
it
e
d
c
li
e
n
t
k
n
o
w
le
d
g
e
E
x
c
e
ll
e
n
t
–
a
d
e
q
u
a
te
m
a
rk
e
t
in
te
ll
ig
e
n
c
e
sy
st
e
m
s
in
p
la
c
e
E
x
p
e
rt
is
e
Y
e
s
Y
e
s
Y
e
s
D
e
v
e
lo
p
in
g
D
e
v
e
lo
p
in
g
D. Giannakis and M.J. Harker404
H
R
M
’s
ro
le
in
c
re
a
ti
n
g
o
rg
a
n
iz
a
ti
o
n
a
l
v
a
lu
e
S
a
le
s-
re
p
s’
re
c
ru
it
m
e
n
t
a
n
d
se
le
c
ti
o
n
sy
st
e
m
s
A
li
g
n
m
e
n
t
o
f
H
R
M
a
n
d
sa
le
s
A
li
g
n
m
e
n
t
o
f
H
R
M
a
n
d
sa
le
s
A
li
g
n
m
e
n
t
o
f
H
R
M
a
n
d
sa
le
s
A
li
g
n
m
e
n
t
o
f
H
R
M
a
n
d
sa
le
s
A
li
g
n
m
e
n
t
o
f
H
R
M
a
n
d
sa
le
s
S
a
le
s-
re
p
s
tr
a
in
in
g
a
n
d
d
e
v
e
lo
p
m
e
n
t
sy
st
e
m
s
L
e
a
rn
in
g
is
su
p
p
o
rt
e
d
(t
e
c
h
n
ic
a
l
sk
il
ls
)
L
e
a
rn
in
g
is
su
p
p
o
rt
e
d
(t
e
c
h
n
ic
a
l
sk
il
ls
)
L
e
a
rn
in
g
is
su
p
p
o
rt
e
d
(t
e
c
h
n
ic
a
l
sk
il
ls
)
L
e
a
rn
in
g
e
n
v
ir
o
n
m
e
n
t
(p
a
ra
ll
e
l
te
c
h
n
ic
a
l
a
n
d
re
la
ti
o
n
a
l
sk
il
ls
)
L
e
a
rn
in
g
is
su
p
p
o
rt
e
d
(p
a
ra
ll
e
l
te
c
h
n
ic
a
l
a
n
d
re
la
ti
o
n
a
l
sk
il
ls
)
S
a
le
s-
re
p
s
re
w
a
rd
sy
st
e
m
s
Y
e
s,
li
n
e
sa
le
s
d
e
c
id
e
Y
e
s,
li
n
e
sa
le
s
d
e
c
id
e
Y
e
s,
li
n
e
sa
le
s
d
e
c
id
e
Y
e
s,
li
n
e
sa
le
s
d
e
c
id
e
Y
e
s,
li
n
e
sa
le
s
d
e
c
id
e
B
u
si
n
e
ss
p
a
rt
n
e
r
st
a
tu
s
H
R
d
o
t
li
n
e
m
a
n
a
g
e
r
si
tt
in
g
in
a
ll
sa
le
s
m
e
e
ti
n
g
s,
p
a
rt
n
e
r
in
st
ra
te
g
y
e
x
e
c
u
ti
o
n
,
e
m
p
lo
y
e
e
c
h
a
m
p
io
n
B
u
si
n
e
ss
p
a
rt
n
e
r
in
te
ra
c
ts
w
it
h
b
o
th
li
n
e
a
n
d
sa
le
s-
re
p
s’
p
o
rt
fo
li
o
/e
m
p
lo
y
e
e
c
h
a
m
p
io
n
a
n
d
c
h
a
n
g
e
a
g
e
n
t
P
ro
fe
ss
io
n
a
l
p
a
th
a
d
v
is
o
rs
/a
d
m
in
is
tr
a
ti
v
e
e
x
p
e
rt
a
n
d
e
m
p
lo
y
e
e
c
h
a
m
p
io
n
N
/A
c
e
n
tr
a
l
H
R
M
se
rv
ic
e
s
N
/A
c
e
n
tr
a
l
H
R
M
se
rv
ic
e
s,
d
e
v
e
lo
p
in
g
P
ra
c
ti
c
a
l
in
te
ll
ig
e
n
c
e
L
a
rg
e
ly
e
x
te
n
d
e
d
D
e
v
e
lo
p
in
g
D
e
v
e
lo
p
in
g
N
o
n
e
N
o
n
e
R
e
la
ti
o
n
sh
ip
to
li
n
e
m
a
n
a
g
e
m
e
n
t
D
o
tt
e
d
to
re
ta
il
li
n
e
m
a
n
a
g
e
m
e
n
t
a
n
d
H
R
M
B
e
lo
n
g
s
to
a
se
p
a
ra
te
te
a
m
o
f
th
e
c
e
n
tr
a
l
H
R
M
D
ir
e
c
t
T
e
a
m
w
o
rk
T
e
a
m
w
o
rk
Journal of Strategic Marketing 405
strategic alignment) and the relational sales-reps in a B2C retail context (see Figure 3).
The chronological distance between planning, programming and implementation of the
two distinct RM and HRM alignment phases depends on:
(1) the corporate life cycle;
(2) the stage of maturity of a bank and line management involvement into relational
sales-rep’s HR cycle (recruitment, selection and placement, training and
development, assessment);
(3) the complexity of the structure of internal corporate activities;
(4) the complexity of relevant stakeholders’ roles; and finally
(5) the determination of line management to invest in a customer-centric business
approach.
Drawing on the original strategic alignment framework as a basis (see Figure 1), the
vertical linkage ‘strategic fit’ concerns the external business environment in which a bank
competes and equally the internal environment in which it operates. The horizontal
linkage at the integration phase denotes the RM and HRM interdepartmental integration in
a relational-oriented bank. As a result, integration takes into consideration a relational
strategic orientation, optimum adoption of marketing and HRM infrastructures in
accomplishing best RM strategies.
Aligning RM and HRM/Phase A – Integration
Strategic
Marketing
Marketing
Strategy
Distinctive
Competencies
Organizational
Governance
Skills Infrastructure
Processes
HRM
Strategy
Distinctive
Competencies
Organizational
Governance
E
x
te
rn
a
l
In
te
rn
a
l
Strategic Fit Strategic Fit
Processes
HRM
Central
InfrastructureSkills
Functional
Integration
HR dot Line
Manager
Relational Marketing Orientation
Competencies
Monitoring
Monitoring
BU’s
Product
Management
CRM –CVM
Management
Retail
Network
Marketing
Training
&
Development
Evaluation
Recruitment
& Selection
Rational HRM Orientation
Competencies
Figure 2. The strategic RM and HRM alignment/Phase A: integration.
D. Giannakis and M.J. Harker406
The investigators view the strategic orientation of a relationally oriented bank in terms
of its positioning in the selected marketplace. Clearly, this is not a muddle of transactional
and partial RM strategies in order to avoid sales-reps disorientation, but a distinctively and
purposively generated RM-oriented business strategy. Thus, the strategic RM and HRM
alignment framework shows that matching corporate governance and the distinctive sales-
reps’ roles, skills and competencies are critical in the implementation of a sound RM
strategy and thereby of relationship quality at the B2C point of sale. Moreover, predefined
marketing and HRM infrastructures reflect on the appropriateness and usefulness of the
design and implementation of the corporate strategy of a relational financial services firm.
Much of the material contained within the strategic business orientation is internal
including the various processes, the human resources’ roles, skills and competencies, and
the needed infrastructures in effectively implementing RM strategies at the financial B2C
points of sale. The distinctive relational sales-reps’ roles, skills and competencies relate to
the organizational capabilities that make the strategy and governance real, reflecting the
strengths of the organization as perceived by customers.
At this point, we define distinctive organizational competencies as the essential
resources of an organization in accomplishing its set goals. The organizational
competencies include the tangible, intangible and human capital resources. The tangible
Aligning RM and HRM / Phase B – Interaction
Retail
Sales Network
HRM
Entrepreneurial –
Competence
Processes Infrastructure
Affective
antecedents
Cognitive
antecedents
• Empathy
• Emotions
• Job Satisfaction
• Loyalty
• Trust
• Affective commitment
• Marketing intelligence
• Perception
• Learning
Relational
Sales-Reps
Ideal set skills-
competencies
Organizational
Governance
Human
Capital
Chief
Enabling
Officer
Functional
integration
Strategic Fit
Profit and Growth
Relationship
Quality
Monitoring
Monitoring
Effective
Implementation
Relationship
Marketing
Figure 3. The strategic RM and HRM alignment/Phase B: interaction.
Journal of Strategic Marketing 407
resources are the physical (e.g. relational sales-reps) and financial capacity (e.g. growth
momentum) of a financial services firm, whereas the intangible resources include
the positive reputation of a firm in the market. In this way, a financial services firm
can attract and retain talented, skilful employees proving to the labour markets
that line management is able and willing to be a good place to work for an ambitious
employee.
Given the integration stage, a strategic marketing unit coordinates the corporate marketing
effort in a relational financial services firm. The organizational scope of the strategic
marketing unit is to provide product marketing management with strategic framework
guidelines, as well as enhancing the corporate communication strategy. This is a
demanding marketing role, therefore central to the strategic RM and HRM alignment
framework. Simultaneously, the strategic marketing unit administers customer
relationship management (CRM) applications and practices, target customer analyses
and multidimensional segmentation strategies. The corporate marketing effort, during the
integration phase further incorporates product management and the retail network-
marketing unit. This first phase develops to a rational goal model of HRM orientation
(Cameron & Quinn, 1999) possessing a distinct external focus.
In this respect, and following their research findings, the investigators suggest the
development of an HR ‘dot line’ manager business position. This is an HR business
partner role (Ulrich, 1997, 1998, 2001; Ulrich & Beatty, 2001; Ulrich & Brockbank, 2005;
Ulrich & Lake, 1990, 1991; Ulrich, Brockbank, Yeung, & Lake, 1995). Its primary focus
is serving alignment and managing procedural changes regarding RM and HRM
systematic integration. In essence, the HR dot line manager’s role involves working
closely with business leaders on strategy execution as well as in designing HR systems and
processes that address strategic business issues (Ulrich, 1997). Conceptually, the Strategic
Human Resource Development and the strategic partner model (Francis & Keegan, 2006;
McCracken & Wallace, 2000; Peterson, 2008; Ulrich, 1997; Ulrich & Brockbank, 2005)
identify a multi-layered and complex relationship between various corporate actors. They
are senior management, line and employees that align the goals of the organization
resulting in a cohesive organizational strategy in the fight to stay competitive. The
effective integration and interaction of such a business partner’s role with line
management actually generates sales-reps’ affective commitment, loyalty and, hence, trust
and rapport. Therefore, the role of the HR dot line manager during integration is to act as
an interdepartmental link (e.g. having a dotted line of management reporting) between the
HR and line management. In this respect, the practical, business intelligence of the HR dot
line manager boosts sales-reps’ affective commitment to the organization, justifying the
notion that satisfied employees mean satisfied customers.
During the integration phase, the HR dot line manager’s role is characterized as
equally strategic and operational. Strategic in the sense that they plan, programme and
implement a set of internally consistent policies and practices to ensure that sales-reps
contribute towards achieving strategic business objectives. Moreover, the role is
largely operational since they split sales-reps into distinct human portfolios in cooperation
with line management. In this direction, the HR dot line manager has the critical role
to accomplish specific HR key performance indicators regarding qualitative and
quantitative performance of relational sales-reps. Most fundamentally, the HR dot
line manager serves as a functional integrator between RM and HRM – thus the
D. Giannakis and M.J. Harker408
dotted role description. During the integration phase, the role would systematically
perform the following functions:
(1) Cooperate with line heads and central HRM on all human resource issues towards
the smooth and effective implementation of both the HR cycle and RM strategies;
(2) Provide social support and socially engage with sales-reps;
(3) Cooperate with corporate marketing units enhancing and enlarging organizational
connectedness (Kohli & Jaworski, 1990; Rispens, Greer, & Jehn, 2007);
(4) Create proximity between line management and the relational sales-reps ensuring
optimum resolution of their personal issues;
(5) Create a new and effective channel of interdepartmental flow of bidirectional
informal communication pattern.
Drawing on the above, relational sales-reps are free to suggest operational systemic
changes, impressions and perceptions on internal policies, infrastructure development
issues and even product modifications. The HR dot line manager’s role is differentiated
from that outlined in current, extant literature (Ulrich, 1997, 1998), in that it has increased
line management responsibilities (e.g. practical intelligence) and is reporting in a dotted
line to both line and HR management. At a mature corporate stage, the HR dot line manager
is fully integrated into a coordinating strategic marketing department. For an effective and
smooth flow of marketing activities, the coordinating strategic marketing department
should also incorporate the CRM (e.g. marketing intelligence) administration. The aim of
such an organizational restructuring is to accomplish all of the above suggestions in a
services firm with a definite relational strategic orientation. We further suggest that the role
of the HR dot line manager develops to that of an HCCEO dotted (as far as recording and
reporting procedures) to the Line Sales Director and the Strategic Marketing Director at the
second phase of the organizational RM and HRM strategic alignment framework.
Interactionism is the group of concepts emergent from HR literature that has been used to
explain why individuals – in our case the relational sales-reps – tend to respond to those
features of work situations that are psychologically meaningful to them (James, Hater,
Gent, & Bruni, 1978; Schneider & Snyder, 1975), and how performance may improve as
the ‘fit’ between one’s personality and the environment within which one performs
improves (Raymark, Schmidt, & Guion, 1977). Wang and Netemeyer (2002, 2004), for
example, suggest that the interaction of situational factors with individual trait
competitiveness and the resulting impact on salesperson performance is deserving of
further research attention. Relational sales-reps, for example, use more defined knowledge
structures covering more diverse customer types, ultimately enabling them to deliver a
sales message optimally aligned with the idiosyncrasies of the customer.
Thus, at the second interaction phase (see Figure 3), functional integration develops to
systematic interaction. The goal of the strategic alignment framework between RM and
HRM during the second phase is the development and maintenance of relationship quality
and thus optimum implementation of RM strategies at B2C points of sale. As such, a
relationally oriented bank aims to accomplish the following strategic goals during the
systematic interaction process:
(1) Facilitate the flow of harmonized and undisrupted bilateral communication
between line management and sales-reps. The institutional goal is to enhance
Journal of Strategic Marketing 409
consistency and reliability of informal communication messages bridging the gap
between line management and sales-reps;
(2) Improve organizational connectedness (Rispens et al., 2007) between line
management and sales-reps in treating dysfunctionalities, reduce conflicts and
hence improve relationship quality standards in a B2C retail context;
(3) Improve decision-making enforceability. Given the initiation and application of
integration stage, RM and HRM establish open and bidirectional interdepart-
mental communication and cooperation channels.
In our strategic alignment RM and HRM framework, relational sales-reps who are held
responsible for implementing RM strategies at dispersed B2C points of sale meet and
interact with: (1) line sales; (2) retail-network marketing specialists; (3) HCCEO and
team; (4) HR specialists – headquarters.
During the systematic interaction process, the role that was initially defined as the HR dot
line manager develops into that of a Human Capital Chief Enabling Officer (HCCEO). The
HCCEO and team systematically interact on a one-to-one basis with financial sales-reps
and line management heads in managing cognitive and affective antecedents of sales-reps
(Weitz, Sujan, & Sujan, 1986). Research into the cognitive characteristics of successful
sales-reps dates back to the mid-1980s. Weitz et al. (1986), for example, argued that
differences in the knowledge structures of sales-reps contribute to differences in individual
performance. These broader and deeper knowledge structures give financial sales-reps the
ability to adapt their selling approach to different customers (Sujan, Weitz, & Kumar,
1994; Weitz et al., 1986). Relational sales-reps use more defined knowledge structures
covering more diverse customer types, ultimately enabling them to deliver a sales message
optimally aligned with the idiosyncrasies of the customer. In a similar line of thought,
Bonney and Williams (2009) define a financial sales-rep’s opportunity recognition as the
cognitive process that individuals use to detect a misallocation of resources, define an
associated customer problem and develop a solution that generates value for the customer
and profit for the banking firm.
Services marketing studies have though indicated a weak effect between customer
satisfaction and affective commitment for consumers (Bansal, Irving, & Taylor, 2004;
Bettencourt, 1997). Brown, Mowen, Donavan, and Licata (2002) argue that one reason
for the specific weak effect may well be an interactive relationship between commitment
and satisfaction, particularly when customer samples include both relational/high-
commitment and transactional/low-commitment customers. Most fundamentally, the
goal for line management of an RM-oriented financial services firm is to create a
state of relational/affective commitment for its external as well as its internal customers
(e.g. the sales-reps).
The strategic goal during the systematic interaction process is to confirm that satisfied
employees essentially mean satisfied customers. More specifically, the HCCEO strategic
goal is to improve sales-rep’s affective commitment to the organization. The two
interacting parts cognitively evaluate the benefits of continuing the business relationship
and the rationale behind the continuation. The affective commitment as an affective state
of mind refers to the feelings of fondness a partner has for another (Morgan & Hunt, 1994).
It also refers to internalizing or identifying with a partner’s values. This is exactly the job
of the HCCEO and his team.
D. Giannakis and M.J. Harker410
The essential skills of the HCCEO are that of an institutional RM/HRM enabler and
enhancer. The new role refers to an inspiring personality in the sense of providing
organizational support aiming to support the effectiveness of the recommended strategic
alignment framework. Yavas and Babakus (2010) define organizational support as a set of
enduring policies, practices, procedures and tools that diminish the demands of the job;
and/or assist employees in achieving their work goals and stimulate their personal growth/
development. Such support may be physical, psychological or social in nature (Cohen &
Wills, 1985) and may be located at the organizational and task levels, or in interpersonal
relations and the organization of work. Organizational support, as would be provided for
by the development of the HCCEO job role as an intermediate link between RM and
HRM, can be in the forms of performance feedback, skills development, autonomy, job
security, training, salary, supervisory support, empowerment, team climate, rewards,
career opportunities, servant leadership and service technology support (Bakker,
Demerouti, de Boer, & Schaufeli, 2003; Bakker, Demerouti, Taris, Schaufeli, & Schreurs,
2003). Conceptually, such a role enhances institutional change through immediate and
systematic interaction instead of propelling institutional change through immediate and
systematic interaction. The rationale is that HR as well as line management need to listen
to employees on a one-to-one basis and thereby become aware and act upon the ways and
means of adjusting business systems and processes dealing with the actual implementation
of RM strategies. The HCCEO must also act as a social entrepreneur (Thompson, 2002),
who seizes opportunities others miss, improves systems and invents new mission-driven,
strategic and results-oriented approaches regarding internal corporate issues. By following
a systematic interaction process between line management and the HCCEO on one side
and the relational sales-reps on the other, the positive impacts of affective commitment of
sales-reps to the bank would include:
(1) Providing strong signs of trust in line management. Their trust of line management
in turn communicates positive emotions to their customers who in turn exhibit
strong signs of empathy and understanding – thus reducing apathy and inertia;
(2) Lower sales-rep turnover. The immediate business effect of the strategic RM and
HRM alignment framework is towards the reduction of talented employees’ churn
rates. Consequently, the affective business–employee relationship lasts for longer
and the employee exhibits signs of loyalty. In this context, loyal employees
become an active and empathetic basis for mutual trust and commitment. This
criterion of involvement produces a sustainable competitive advantage and a
strong buyer–seller relationship quality;
(3) Committed sales-reps become advocates of the financial services firm, facilitating
the process of recruitment and selection for new recruits. A financial services firm
that is characterized by its internal publics as a ‘good place to work’ attracts
talented, skilful and competent sales-reps willing and able to sustain the
implementation of RM strategies at the B2C points of sale;
(4) Committed sales-reps who have a positive perception regarding their future career
development and exhibit strong potential for learning and development.
The success of the RM and HRM strategic alignment framework largely depends on
the organizational desire to proceed to significant change management practices (e.g. to
make strategic alignment as the means of developing a sustainable competitive advantage)
and frame the HCCEO role with appropriate and sufficient decision-making authority and
enforceability. The HCCEO will fail his mission, unless top management is convinced that
an RM-focused financial services firm requires actual investment into HR as the means of
Journal of Strategic Marketing 411
effectively implementing its RM strategies. For example, it would be disastrous for the
morale and motivation of sales-reps, if decisions on their career advancement were stuck
in corporate bureaucracy. Management should thus protect and support the strategic
alignment framework as a means of strategically positioning itself in the market.
Another constraint on the enforcement of the strategic alignment framework is change
resistance from line sales people generated by a customer-centric approach to investing in
human resources knowledge, skills and competences. Line sales in the banks investigated
were at the time performing the bulk of HR activities. However, they were not prioritizing
human resources issues such as knowledge, skills and experience development. Their goal
and short-term focus was to meet their sales quotas – to the detriment of other objectives.
Line sales managers under considerable pressure generated by corporate sales demands
are often unwilling to participate in change-oriented efforts. Line sales managers often
consider HRM practices as time-consuming and bureaucratic. Senior management should
tackle such line management resistance by engaging, improving teamwork and effective
informal communication between the various functions of the organization. We recognize
that the crucial step of finding and recruiting talented, skilful employees capable of
performing the role of the HCCEO is a non-trivial task, but one that could lead substantial
benefits to the entire organization.
This research study has provided useful signposts and the bases for further research.
However, it contains a number of limitations that may reduce its effectiveness. A limitation
of this work is that it was based on five empirical case studies (a judgmental type of sample)
and 20 interviewees (see Appendix 1) that, despite the investigators’ efforts, may only
provide some information about the RM and HRM interface and may lack generalizability
outwith Greek banking. However, additional studies may be carried out with a number of
organizations to confirm or refute these qualitative findings and a quantitative study will be
utilized to confirm generalizability in due time. In the light of the case study research
limitations, we considered numerous constraints during the data collection process.
Consequently, the data accessibility was a constraint for confidentiality reasons, since we
were talking about competing banks. Moreover and due to the fact that the three major job
roles out of the total four roles under study in each case study were at a top administration
level, there were considerable limitations of their time, accessibility and availability.
This research indicates that a strategic orientation and a positive senior management
attitude towards RM and HRM interface plays a direct and critical role in influencing
internal factors, which in turn allow greater collaboration between HRM and marketing.
Management attitudes towards coordination may also influence the creation of an
appropriate interdepartmental culture. Future research could include the implementation
of the RM and HRM strategic alignment framework in other industry sectors with a
substantial and significant services component to the offering, such as telecommunica-
tions, insurance and the public sector. Furthermore, it would be significant to test
quantitatively a larger sample of HRM, sales and marketing directors over a number of
issues already examined by our qualitative case study research approach. We also intend to
examine in a future research study, the perceptions of a larger sample of respondents from
various corporate functions (e.g. IT, finance, marketing) regarding the evolution of the
business partner role in the financial services industry. Thus, the contribution of the
D. Giannakis and M.J. Harker412
HCCEO in the effective, smooth flow of business within various industry sectors
represents a challenging research issue.
Alderson, W. (1957). Marketing behaviour and executive action. Homewood, IL: Irwin.
American Marketing Association (AMA). (2004). Definition of marketing. Retrieved from http://
www.marketingpower.com/Community/ARC/Pages/Additional/Definition
Athanassopoulou, P. (2006). Determining relationship quality in the development of business-to-
business financial services. Journal of Business-to-Business Marketing, 13, 87–120.
Bakker, A. B., Demerouti, E., de Boer, E., & Schaufeli, W. B. (2003). Job demands and job resources
as predictors of absence duration and frequency. Journal of Vocational Behavior, 62, 341–356.
Bakker, A. B., Demerouti, E., Taris, T. W., Schaufeli, W. B., & Schreurs, P. J. G. (2003).
A multigroup analysis of the job demands-resources model in four home care organizations.
International Journal of Stress Management, 10, 16–38.
Bansal, H., Irving, P. P. G., & Taylor, S. F. (2004). A three component model of customer
commitment to service providers. Journal of the Academy of Marketing Science, 32, 234–250.
Beal, R. M., & Yasai-Ardekani, M. (2000). Performance implications of aligning CEO functional
experiences with competitive strategies. Journal of Management, 26, 733–762.
Beer, M., Spector, B., Lawrence, P. P. R., Quinn Mills, D., & Walton, R. (1984a). Human resource
management: A general manager’s perspective. Glencoe, IL: Free Press.
Beer, M., Spector, B., Lawrence, P. P. R., Quinn Mills, D., & Walton, R. E. (1984b). Managing
human assets. New York, NY: Free Press.
Berry, L. L. (1995). Relationship marketing of services-growing interest, emerging perspectives.
Journal of the Academy of Marketing Science, 23, 236–245.
Berry, L. L., & Parasuraman, A. (1991). Marketing services: Competing through quality. New York,
NY: Free Press.
Bettencourt, L. A. (1997). Customer voluntary performance: Customers as partners in service
delivery. Journal of Retailing, 73, 383–406.
Bitner, M. J., Booms, B. H., & Mohr, L. A. (1994). Critical service encounters: The employee’s
viewpoint. Journal of Marketing, 58, 95–106.
Blankson, C., Cowan, K., Crawford, J., Kalafatis, S., Singh, J., & Coffie, S. (2013). Customer
relationship management in financial services: Towards information-enabled relationship
marketing. Journal of Strategic Marketing, 21, 499–512.
Bonney, L. F., & Williams, B. C. (2009). From products to solutions: The role of salesperson
opportunity recognition. European Journal of Marketing, 43, 1032–1052.
Booms, B. H., & Bitner, M. J. (1981). Marketing strategies and organization structures for service
firms. In J. Donnelly & W. R. George (Eds.), Marketing of services (pp. 47–51). Chicago, IL:
American Marketing Association.
Borden, N. H. (1964). The concept of the marketing mix. Journal of Advertising Research, 4, 2–7.
Boxall, P. P. (1992). Strategic HRM: A beginning, a new theoretical direction. Human Resource
Management Journal, 2, 61–79.
Boxall, P. P., & Purcell, J. (2003). Strategy and human resource management. Basingstoke: Palgrave
Macmillan.
Boxall, P. P., Purcell, J., & Wright, P. P. (2007). The Oxford handbook of human resource
management (Oxford handbooks in business and management). Oxford: Oxford University
Press.
Brown, T. J., Mowen, J. C., Donavan, T., & Licata, J. W. (2002). The customer orientation of service
workers: Personality trait determinants and effects on self- and supervisor performance ratings.
Journal of Marketing Research, 39, 110–119.
Burdett, J. O. (1994). The magic of alignment. Management Decision, 32, 59–63.
Cameron, K. S., & Quinn, R. E. (1999). Diagnosing and changing organizational culture: Based on
the competing values framework. Reading, MA: Addison-Wesley.
Cheng, J.-H., Chen, F.-Y., & Chang, Y.-H. (2008). Airline relationship quality: An examination of
Taiwanese passengers. Tourism Management, 29, 487–499.
Chimhanzi, J. (2004). The impact of marketing/human resources interactions on marketing strategy
implementation. European Journal of Marketing, 38, 73–98.
Journal of Strategic Marketing 413
http://www.marketingpower.com/Community/ARC/Pages/Additional/Definition
http://www.marketingpower.com/Community/ARC/Pages/Additional/Definition
Chimhanzi, J., & Morgan, R. E. (2005). Explanations from the marketing/human resources dyad for
marketing strategy implementation effectiveness in service firms. Journal of Business Research,
58, 787–796.
Cohen, S., & Wills, T. A. (1985). Stress, social support and the buffering hypothesis. Psychological
Bulletin, 98, 310–357.
Cravens, D. W., & Piercy, N. F. (1994). Relationship marketing and collaborative
networks in service organizations. International Journal of Service Industry Management, 5,
39–54.
Crosby, L. A., Evans, R. K., & Cowles, D. (1990). Relationship quality in services selling, an
interpersonal influence perspective. Journal of Marketing, 54, 68–81.
Dibb, S., & Meadows, M. (2004). Relationship marketing and CRM: A financial services case study.
Journal of Strategic Marketing, 12, 111–125.
Dwyer, F. R., Schurr, P. P. H., & Oh, S. (1987). Developing buyer-seller relationships. Journal of
Marketing, 51, 11–27.
Elg, U., & Johansson, U. (1996). Networking when national boundaries dissolve. European Journal
of Marketing, 30, 61–74.
Finn, A. (2005). Reassessing the foundations of customer delight. Journal of Service Research,
8, 103–116.
Francis, H., & Keegan, A. (2006). The changing face of HRM: In search of balance. Human
Resource Management Journal, 16, 231–249.
Fruchter, G. E., & Sigue, S. P. (2005). Transactions versus relationships: What should the company
emphasize? Journal of Service Research, 8, 18–36.
Grönroos, C. (1990). Service management and marketing, managing the moments of truth in service
competition. Lexington, MA: Free Press/Lexington Books.
Grönroos, C. (1991). The marketing strategy continuum: Towards a marketing concept for the
1990’s management decision. Management Decision, 29, 7–13.
Grönroos, C., & Ravald, A. (2011). Service as business logic: Implications for value creation and
marketing. Journal of Service Management, 22, 5–22.
Guest, D. (1987). Human resource management and industrial relations. Journal of Management
Studies, 24, 503–522.
Guest, D. E. (1997). Human resource management and performance: A review and research agenda.
International Journal of Human Resource Management, 8, 263–276.
Guest, D. (2002). Human resource management, corporate performance and employee wellbeing:
Building the worker into HRM. Journal of Industrial Relations, 44, 335–358.
Gummesson, E. (1987). The new marketing: Developing long term interactive relationships. Long
Range Planning, 20, 10–20.
Harker, M. J., & Egan, J. (2006). The past, present and future of relationship marketing. Journal of
Marketing Management, 22, 215–242.
Henderson, J. C., & Venkatraman, N. (1993). Strategic alignment: Leveraging information
technology for transforming organizations. IBM Systems Journal, 32, 4–16.
Henderson, J. C., Venkatraman, N., & Oldach, S. (1996). Aligning business and IT strategies.
In J. N. Luftman (Ed.), Competing in the information age: Strategic alignment in practice
(pp. 21–42). Oxford: Oxford University Press.
Hennig-Thurau, T., & Klee, A. (1997). The impact of customer satisfaction and relationship quality
on customer retention: A critical reassessment and model development. Psychology and
Marketing, 14, 737–764.
Ingram, T. (1990). Improving sales force productivity: A critical examination of the personal selling
process. Review of Business, 12, 7–12.
Ingram, T. N. (2004). Future themes in sales and sales management: Complexity, collaboration and
accountability. Journal of Marketing Theory and Practice, 12, 18–28.
James, L., Hater, J., Gent, M., & Bruni, J. (1978). Psychological climate: Implications from
cognitive social learning theory and interactional psychology. Personnel Psychology, 31,
783–814.
Jaworski, B. J., & Kohli, A. K. (1993). Market orientation: Antecedents and consequences. Journal
of Marketing, 57, 53–70.
Kim, W. G., Lee, Y.-K., & Yoo, Y.-J. (2006). Predictors of relationship quality and relationship
outcomes in luxury restaurants. Journal of Hospitality & Tourism Research, 3, 143–169.
D. Giannakis and M.J. Harker414
Kohli, A. J., & Jaworski, B. J. (1990). Market orientation: The construct, research propositions and
managerial implications. Journal of Marketing, 54, 1–18.
Labovitz, G., & Rosansky, V. (1997). The power of alignment: How great companies stay centered
and accomplish extraordinary things. New York, NY: Wiley.
Legge, K. (1995a). HRM: Rhetoric, reality and hidden agendas. In J. Storey (Ed.), Human resource
management: A critical text (pp. 33–61). London: Routledge.
Legge, K. (1995b). HRM: Rhetoric’s and realities. Basingstoke: Macmillan.
Levitt, T. (1981). Marketing intangible products and product intangibles. Harvard Business Review,
59, 95–102.
Levitt, T. (1983). After the sale is over. Harvard Business Review, 61, 87–93.
Liang, C.-J., & Wang, W.-H. (2006). The behavioral sequence of the financial services industry in
Taiwan: Service quality, relationship quality and behavioral loyalty. The Service Industries
Journal, 26, 119–145.
MacIntosh, G. (2007). Customer orientation, relationship quality, and relational benefits to the firm.
Journal of Services Marketing, 21, 150–159.
McCarthy, E. J. (1960). Basic marketing. A managerial approach. Homewood, IL: Irwin.
McCracken, M., & Wallace, M. (2000). Towards a redefinition of strategic HRD. Journal of
European Industrial Training, 24, 281–290.
McDonald, H. K. (1994). Organizational transformation and alignment: Misalignment as an
impediment to progress in organizational development. Information Management and Computer
Security, 2, 16–29.
McGarry, E. D. (1950). Some functions of marketing reconsidered. In R. Cox & W. Alderson (Eds.),
Theory of marketing (pp. 263–279). Chicago, IL: Irwin.
McKitterick, J. B. (1957). What is the marketing management concept? In F. Bass (Ed.),
The frontiers of marketing thought in action (pp. 71–82). Chicago, IL: AMA.
Mintzberg, H., Ahlstrand, B., & Lampel, J. (1998). Strategy safari: A guided tour through the wilds
of strategic management. New York, NY: The Free Press.
Morgan, R. M., & Hunt, S. D. (1994). The commitment trust theory of relationship marketing.
Journal of Marketing, 58, 20–38.
Ndubisi, N. O. (2007). Relationship quality antecedents: The Malaysian retail banking perspective.
International Journal of Quality and Reliability Management, 24, 829–845.
Parasuraman, A., Berry, L. L., & Zeithaml, V. A. (1991). Understanding customer expectations of
service. Sloan Management Review, 64, 39–48.
Payne, A., & Richard, J. (1993). Relationship marketing, customer retention and service firm
profitability. Draft working paper, Cranfield School of Management.
Peterson, S. L. (2008). Creating and sustaining a strategic partnership: A model for human resource
development. Journal of Leadership Studies, 2, 83–97.
Piercy, N. F. (1997a). Market-led strategic change (2nd ed.). London: Butterworth Heinemann.
Piercy, N. F. (1997b). Partnership between marketing and human resource management for
implementation effectiveness in services marketing. Academy of Marketing Conference
Proceedings (Manchester Metropolitan University), 2, 865–878.
Rajaobelina, L., & Bergeron, J. (2009). Antecedents and consequences of buyer-seller
relationship quality in the financial services industry. International Journal of Bank Marketing,
27, 359–380.
Ramaseshan, B., Ishak, A., & Rabbanee, F. L. (2013). The role of marketing managers’ commitment
and involvement in marketing strategy implementation. Journal of Strategic Marketing, 21,
465–483.
Raymark, P. H., Schmidt, M. J., & Guion, R. M. (1977). Identifying potentially useful personality
constructs for employee selection. Personnel Psychology, 50, 723–737.
Reichheld, F. F., & Sasser, W. E., Jr. (1990). Zero defections: Quality comes to services. Harvard
Business Review, 68, 105–111.
Rispens, S., Greer, L. L., & Jehn, K. A. (2007). It could be worse: A study on the alleviating roles of
trust and connectedness in intragroup conflicts. International Journal of Conflict Management,
18, 325–344.
Rowley, J. (2002). Using case-studies in research. Management Research News, 25, 16–27.
Ryals, L., & Payne, A. (2001). Customer relationship management in financial services: Towards
information-enabled relationship marketing. Journal of Strategic Marketing, 9, 3–27.
Journal of Strategic Marketing 415
Schneider, B., & Snyder, R. (1975). Some relationships between job satisfaction and organizational
climate. Journal of Applied Psychology, 60, 318–328.
Shekhar, V., & Gupta, N. (2008). Customers’ perspectives on relationship marketing in financial
service industry. The Icfaian Journal of Management Research, 7, 68–79.
Short, T. W. (2008). Strategic alignment and learning in human resource development:
A hermeneutic exploration (PhD thesis). University of South Australia, Adelaide.
Short, T. W. (2009, June). The place and shape of HRD in a globalised and turbulent workplace.
Referred paper presented at the 10th International HRD Conference, Northumbria University,
UK.
Smaczny, T. (2001). Is an alignment between business and information technology the
appropriate paradigm to manage IT in today’s organizations? Management Decision, 39,
797–802.
Smith, J. B. (1998). Buyer-seller relationships: Similarity, relationship management, and quality.
Psychology and Marketing, 15, 3–21.
Sujan, H., Weitz, B. A., & Kumar, N. (1994). Learning orientation, working smart, and effective
selling. Journal of Marketing, 58, 39–52.
Swan, J., & Nolan, J. (1985). Gaining customer trust: a conceptual guide for the salesperson. Journal
of Personal Selling and Sales Management, 5, 39–48.
Thompson, J. L. (2002). The world of the social entrepreneur. International Journal of Public Sector
Management, 15, 412–431.
Tzokas, N., Saren, M., & Kiziridis, P. (2001). Aligning sales management and relationship
marketing in the services sector. The Service Industries Journal, 21, 195–210.
Ulrich, D. (1997). Human resource champions: The next agenda for adding value and delivering
results. Boston, MA: Harvard University Press.
Ulrich, D. (1998). A new mandate for human resources. Harvard Business Review, 76, 124–134.
Ulrich, D. (2001). The evolution of a professional agenda. Mastering People Management (Financial
Times), 15, 2–3.
Ulrich, D., & Beatty, D. (2001). From partners to players: Extending the HR playing field. Human
Resource Management, 40, 293–307.
Ulrich, D., & Brockbank, W. (2005). The HR value proposition. Boston, MA: Harvard Business
School Press.
Ulrich, D., Brockbank, W., Yeung, A. K., & Lake, D. G. (1995). Human resource competencies:
An empirical assessment. Human Resource Management, 34, 473–495.
Ulrich, D., & Lake, D. (1990). Organizational capability. New York, NY: Wiley.
Ulrich, D., & Lake, D. (1991). Organizational capability: Creating competitive advantage. Academy
of Management Executive, 5, 77–92.
van der Zee, J. T. M., & de Jong, B. (1999). Alignment is not enough: Integrating business and
information technology management with the balanced scorecard. Journal of Management
Information Systems, 16, 137–156.
Vargo, S. L. (2009). Toward a transcending conceptualization of relationship: A service-dominant
logic perspective. Journal of Business and Industrial Marketing, 24, 373–379.
Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of
Marketing, 68, 1–17.
Vargo, S. L., & Lusch, R. F. (2006). Service-dominant logic: reactions, reflections and refinements.
Marketing Theory Articles, 6, 281–288.
Vargo, S. L., & Lusch, R. F. (2008a). Why ‘service’? Journal of the Academy of Marketing Science,
36, 25–38.
Vargo, S. L., & Lusch, R. F. (2008b). Service-dominant logic: Continuing the evolution. Journal of
the Academy of Marketing Science, 36, 1–10.
Venkatraman, N., & Camillus, J. C. (1984). Exploring the concept of ‘fit’ in strategic management.
Academy of Management Review, 9, 513–525.
Wang, G., & Netemeyer, R. (2002). The effects of job autonomy, customer demandingness, and trait
competitiveness on salesperson learning, self-efficacy and performance. Journal of the Academy
of Marketing Science, 30, 217–228.
Wang, G., & Netemeyer, R. G. (2004). Salesperson creative performance: Conceptualization,
measurement, and nomological validity. Journal of Business Research, 57, 805–812.
Waterschoot, W., & Van den Bulte, K. (1992). The 4P’s classification of the marketing mix revisited.
Journal of Marketing, 56, 83–93.
D. Giannakis and M.J. Harker416
Weitz, B. A., Sujan, H., & Sujan, M. (1986). Knowledge, motivation, and adaptive behavior:
A framework for improving selling effectiveness. Journal of Marketing, 50, 174–191.
Wong, Y. H., Hung, H., & Chow, W. K. (2007). Mediating effects of relationship quality on
customer relationships: An empirical study in Hong Kong. Marketing Intelligence and Planning,
25, 581–596.
Wray, B., Palmer, A., & Bejou, D. (1994). Using neural network analysis to evaluate buyer-seller
relationships. European Journal of Marketing, 28, 32–48.
Yavas, U., & Babakus, E. (2010). Relationships between organizational support, customer
orientation, and work outcomes, a study of front line bank employees. International Journal of
Bank Marketing, 28, 222–238.
Yin, R. K. (2003). Case-study research: Design and methods (3rd ed.). Thousand Oaks,
CA: Sage.
Journal of Strategic Marketing 417
Appendix 1. The Greek retail banks selected for the case studies
Bank A
Bank A was a strong market player. It had a strategic orientation and a multichannel, transactional
business approach with an embedded sales-oriented business philosophy. However, respondents
perceived that the firm equally well-implemented parallel RM strategies. More extensively, the Bank
had traditionally maintained the development of innovative financial products as a competitive
advantage parallel to a product-centric, strategic marketing approach. In fully justifying this
organizational strategic goal, the Bank was structurally organized around a number of competitive,
product-centric business units. At the time the research study was carried out, its administration was
contextually following a shift in its strategic orientation. The corporate strategic intention was to
align internally critical functions such as marketing and HRM, creating a sense of customer-centric
organizational culture.
Bank B
Bank B was a strong market player with a plainly transactional orientation much similar to Bank A.
The Bank was pursuing the inception and implementation of its strategic business model in the Greek
banking market, focusing on the following sectors of corporate strategic growth and development: (1)
introduction of a complete product portfolio with centrally located product factories in an effort to
compete on all grounds; (2) improvement of the product/service delivery mechanism. In this
direction, administration perceived the imperative need to build a competitive edge, cultivating an
enhanced sales culture of its sales force (e.g. a relational approach); (3) introduction and management
of committed, relational-focused sales-reps; (4) Improvement of market intelligence systems via
organizational support (Yavas and Babakus, 2010) and efficiencies by introducing instant credit and
automated facilities; (5) Focus on human resources’ (e.g. the relational focus sales reps) development
of key skills and competencies in order to systematically deliver cross-selling synergies to external
markets (e.g. an internal market service quality approach); (6) Position strategically the Bank as a
customer-centric, demand-driven citizens’ brand generating a sustainable competitive advantage.
Bank C
Bank C was a local banking firm, which had managed to accomplish the re-positioning of the
organization as a competitive banking firm within a largely fragmented Greek banking industry.
Within this strategic direction, the Bank adopted a combination of RM and transactional marketing
strategies aiming at the fulfilment of a number of strategic objectives: (1) grow its market share in the
major product categories; (2) improve its profitability; and (3) incorporate effectively internal
strategic changes. The Bank, in its effort to compete in the international environment, developed a
strong relationally oriented approach into business, investing into the development of skills and
competences of sales-reps. Most significantly, the Banks’ administration through the development of
a scheme of business partners initiated a team of relationship marketers in implementing centrally
designed RM strategies within the B2C points of sale.
Bank D
Bank D was a small, market-driven banking organization whose management decided to assume and
implement customer-centric marketing practices as a means of effectively competing with larger
banking organizations in the Greek financial services market. The firm’s competitive advantage was
speed and flexibility in operational decision-making. Line sales management resembled a
comprehensive strategic and operational role being present wherever possible to plan and monitor
sales-goals fulfilment, planning marketing activities and new product development and, in a number
of cases, the realization of HR activities regarding retail network sales-reps. The bank being small in
actual numbers and structure provided concrete interdepartmental and interpersonal lines of
communication between line management and employees, ensuring flexibility in business matters,
fast decision-making and high standards of practical intelligence.
D. Giannakis and M.J. Harker418
Bank E
Bank E of the sample was a dynamic banking player characterized by its relationship, customer-
focused operational model. The organization philosophically adopted and implemented an enhanced
customer value approach through its relationally oriented retail sales-reps. The Bank was
systematically implementing RM strategies and as such, the investigators considered it as a financial
services firm model for the justification of this paper’s research objectives.
Interviewee roles by bank
Role at the Bank Bank A Bank B Bank C Bank D Bank E Total
Marketing directors 1 1 1 1 1 5
Sales director 1 1 1 1 4
Sales-reps 1 1 1 1 4
HR directors/business partner 2 1 1 2 1 7
Total 5 3 3 5 4 20
Journal of Strategic Marketing 419
Copyright of Journal of Strategic Marketing is the property of Routledge and its content may
not be copied or emailed to multiple sites or posted to a listserv without the copyright holder’s
express written permission. However, users may print, download, or email articles for
individual use.
- Abstract
Introduction
From product to service-centricity
The concept of alignment in business
Relationship quality: financial services
Research methodology
Discussion
The first alignment phase: integration
The second alignment phase: systematic interaction
The human capital chief enabling officer
Limitations
Future research
References
Appendix