PEOPLE IN THE NEWS: Banc One Creates Nationwide Units To Standardize

As part of an effort to provide consistency of service nationwide, Banc One Corp. has formed two units that will focus on managing operations and technology for its entire organization.

An operations services company will standardize such services as item processing, deposit operations, and reengineering for the holding company's 65 affiliate banks.

This unit will be supported by a technology services unit to handle hardware and software systems management, including data center operations, telecommunications, and electronic banking.

Both units are divisions of Banc One Services Corp., the bank's data processing and operations company.

Richard D. Headley, its chairman and chief executive, said that the two groups will enable the bank to merge what has historically been diverse operations and systems groups into a single entity, to provide a more national focus and take advantage of economies of scale.

The move may answer some analysts' concerns about operational inefficiencies springing from Banc One's decentralized structure.

Until now, the affiliates performed some of their own processing tasks, Mr. Headley said.

Several other large banks, including NationsBank Corp., Citicorp, and Bank of Boston Corp. are working on developing similar national delivery systems through standardization of technology and operations.

The overall objective is to keep costs in line and to provide customers with a common banking experience across an entire organization.

Banc One has named as president of the operations unit Michael D. Hansen, formerly an executive vice president and chief operating officer at Cleveland-based Keycorp's Key Services Corp.

Dale Terrell, formerly an executive vice president at Banc One, has been appointed president of the technology group.

Both report to Mr. Headley.

Mr. Hansen, who took his post as president last week, is new to the bank but familiar with the task at hand.

During his four years at Key Services, he engineered a plan to consolidate operations and managed the resulting organization of 5,300 employees. He views his new role at Banc One as similar to the one he performed at Keycorp.

Mr. Hansen will also be responsible for finalizing plans and managing projects already under way in cash management and telephone banking.

Although bank officials said it is too early to talk specifics, Mr. Hansen said both areas will take on a national focus.

Standardizing operations will enable the $87 billion-asset banking company to consolidate its best practices, compete better in all its markets, and provide services more cost effectively, he said.

The number of employees reporting to Mr. Hansen has not been determined, but they will be selected from operations departments in the bank's affiliates, Mr. Hansen said.

Although he will be based at the service company's headquarters in Dallas, he said he will operate from a virtual office. He will be traveling much of the time to meet with his staff, who will remain at affiliate offices where they can stay close to customers.

Prior to his work at Key Services, Mr. Hansen, a 14-year banking industry veteran, founded Hansen & Co., a management consulting firm that advises financial services companies on operations, financial, and strategic issues.

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