Essay About Dennis Bottorff And Largest Processor

Ssi Group
Ssi Group
IFC Holdings (formerly INVEST Financial Corporation,
the nations largest third-party marketer of investment
products, headquartered in Tampa, Florida)
(98.75 percent ownership)
• The SSI Group (the largest processor of hospital healthcare
claims in the U.S. headquartered in Mobile,
Alabama) (49 percent ownership)
With operations in Tennessee, Kentucky, Virginia, Mississippi,
Arkansas, and LouisianaIFC Holdings (formerly INVEST Financial Corporation,
the nations largest third-party marketer of investment
products, headquartered in Tampa, Florida)
(98.75 percent ownership)
• The SSI Group (the largest processor of hospital healthcare
claims in the U.S. headquartered in Mobile,
Alabama) (49 percent ownership)
With operations in Tennessee, Kentucky, Virginia, Mississippi,
Arkansas, and Louisiana, FAC had $20.7 billion in assets, 7,195
employees, 391 banking offices, and 650 ATMs in 1998. It had
the largest deposit market share in Tennessee, the secondlargest
deposit market share in Mississippi, and the largest small
business and the middle deposit market share in Tennessee.
Conditions were not as good, however, in 1991 when
Dennis Bottorff became chairman and chief executive officer.
Because of FACs problems, there was concern that the bank
would be closed, and that the larger banks would “come in
and pick the pieces they wanted.” Bottorff and his management
team started by “fixing the broken things in the company.”
However, they realized that FAC needed a long-term
strategy if it were to survive in the increasingly competitive
banking industry. It needed a new way of thinking and a new
business model. FAC could not be the low-cost provider
because it lacked the economies of scale of larger financial
institutions. Product differentiation was not a feasible strategy
because other banks could quickly duplicate products
that showed promise in the marketplace. It could not compete
for large accounts (e.g., Fortune 500 companies),
because they are the province of large national and international
banks.
Tailored Client Solutions
Bottorff decided FAC should focus its attention on three market
segments—consumers and small and midsize businesses—in
which the bank could compete effectively. It also needed to
shift from the traditional banking emphasis on products to
being much more customercentric. This new customer focus
required a data warehouse to support it. Top management felt
that the effort should be driven from the marketing department
and, after a year-long search, Brian Cooper was hired as executive
director of marketing.
The marketing department, senior management, and key
members of the finance department worked together to
develop the Tailored Client Solutions strategy. Exhibit 1 shows
the four interlocking components of the strategy: excellent
client information, a flexible product line focused on mass customization,
a consistent sales and service approach centered
on meeting