Bank of Queensland will spend the next few years putting right years of stagnation in many parts of its business. Bank executives briefing analysts at a strategy day yesterday outlined plans for new distribution channels, the development of a stronger sales culture, and for better back office integration.Executives spoke about their businesses in terms of "under-development" and "under-investment". Some parts of the business were "not in good shape", they said.The bank plans to play to what it believes is its strong suit - its network of 183 franchised branches.Matt Baxby, group executive for retail and online banking, said the OMBs (owner-manager branches) had a strong relationship banking culture. This was because the franchisees were small business owners who got to know people in their communities and who stayed in their branches a lot longer than most branch managers.BoQ will build on what it sees as strong customer relationships in the OMBs by changing the commission system, so that owner-managers will be encouraged to do more cross-selling.Baxby said that, at the moment, the bank pays a flat acquisition fee and a trail that is a passive income stream. It will introduce a "golden sale", which will offer more commission for cross-selling. Trails will have a "kicker" based on a profitability scorecard.The bank will also start to introduce business banking and asset finance products into the branches.BoQ also plans a major overhaul of its 90-strong bank-owned branch network. The general manager of corporate networks and retail transformation, Philippa Bartlett, said the bank-owned branches were "not in good shape". Many of them were OMBs that had been handed back by franchisees; they were not performing well and were in poor locations. Bartlett said bank-owned branches had 30 per cent of the sales effectiveness of the OMBs. BoQ plans to relocate a number of branches, change branch design, move all administrative roles out of the branches, and develop an extensive staff training program.Baxby said the bank could no longer rely on branch distribution alone. BoQ has been working with mortgage brokers in Western Australia this year to develop a third-party business and will be broadening the scope of this business. It will also be doing more to develop its digital offerings.BoQ Finance is going through a similar transformation. The asset and receivables finance business relies on brokers for 90 per cent of its sales. The chief executive of BoQ Finance, Hugh Lander, said the business would integrate its back office with the bank and would start selling its products through branches.BoQ's group executive for business banking, Brendan White, said his challenge was to reinvigorate the business banking division, where there had been under-investment. He is moving the bank away from its over-reliance on lending to the Queensland commercial property market and developing new areas of expertise, such as agribusiness banking.He is also building a financial markets capability, offering business customers hedging and other services.Like BOQ Finance, the business banking division will target sales to small business by distributing product through the OMB network.