Sorting out the systems mess the Suncorp priority
Sorting out the jumble of Suncorp's legacy systems looks to be the top priority of the insurance and banking group's new chief executive, Patrick Snowball.Speaking at the annual meeting in Brisbane yesterday Snowball said that after two months in the job consulting with executives, staff, customers, partners, regulators and investors he worked out what he described as "three broad challenges".The third challenge in his list for the AGM, and which in reality must be the first, was something referred to in different ways in this section of his speech as "unifying the cultures".Snowball then made it clearer what was required: "Reducing business complexity will be an immediate priority."In the past Suncorp management would assert - in the manner of NAB, 15 years ago, with its British bank assets - that the businesses were "integrated".In fact they were not, and still are not, a problem that's dogged the organisation since the original merger as a listed "Queensland Inc" standard bearer in the late 1990s. Things have become progressively more chronic since buying GIO from AMP early this decade and then Promina in 2006. At the risk of simplifying, and skating over plenty of diligent work over the last decade, in many ways the original Suncorp insurance remains Suncorp; GIO remains GIO; Vero remains Vero, and so on for other brands in the Promina portfolio. There's also a banking platform clanking along there somewhere.The line businesses, and the technology core, have never had the investment budgets required to tackle the task. One reason advanced by management in the past for this was that there was no business case for doing so. Evidently, things have changed.In that context Snowball's two other challenges are relevant.One of these challenges is to "restore credibility in Suncorp's capabilities and potential". The second is "to restore the confidence of Suncorp's people, shareholders and the market in general about our ability to achieve its objectives".