The Value Group (VG) system, referred to as the VG system, is a collaboration system for branches of Woori Bank. It is an internal operational system introduced in 2021 to allow branch employees to work together to manage customer relations efficiently and maximize the bank's performance. The VG system is designed specifically to enable various departments and employees to collaborate organically in meeting the diverse financial needs of customers.
Woori Bank has decided to abolish this system starting in January next year. At first glance, it may seem like a great collaboration system with good intentions, but in reality, it has been quite burdensome for branch employees. Woori Bank has long been aware of employees' dissatisfaction with the VG system, and there has been speculation among employees at the headquarters since last month that it would be abolished.
In simple terms, the VG system is a sales channel that groups 4 to 8 nearby branches around a hub branch, targeting all branches except for special stores within the bank. This collaboration system, which groups branches together, was inspired by the sales strategies of foreign banks and had become popular among domestic banks. Shinhan Bank was the first to begin joint operations by grouping four branches under the name Community System in 2016. Subsequently, KB Kookmin Bank introduced the Partnership Group (PG) system, and Hana Bank implemented the Collaboration System.
Woori Bank was a latecomer in adopting this collaboration system. The bank started implementing the VG system from its first business day in 2021. At that time, Kwon Kwang-seok, who was the bank's president, dedicated a significant part of his New Year's speech to mentioning it, reflecting high expectations within the bank. It is said that employees who planned the system received commendations.
However, employees were not pleased from the beginning. Although it was called collaborative sales, it was a system where performance was held jointly accountable, leading to discontent even among employees at other banks that were already implementing similar systems. The VG system, which effectively leads to collaborative sales, evaluates the branch performance of each grouped sales head office based on their results, which in turn determines performance bonuses. The entire department needs to perform well in order to receive good performance incentives. At the same time, performance results can be determined regardless of the achievements of the specific branch you belong to.
The 'nested management' issue and the double reporting structure were also noted as problems. Despite being at the same branch, some are categorized as regular branch managers while others are designated as VG managers, complicating the personnel management system. Employees expressed that with the creation of the VG manager position in addition to the existing branch manager, it was as if 'they now had to serve two mothers-in-law.' Additionally, there have been criticisms that the group collaboration system does not align with the current trend of increasing non-face-to-face transactions.
Hana Bank, which introduced its collaboration system earlier than Woori Bank, has been conducting separate performance evaluations for each branch since January last year, instead of using the Collaboration System. A representative from Hana Bank noted, 'Over the past six years of operating the collaboration system, a culture of interdepartmental collaboration has taken root, and we decided to abolish it to strengthen the field sales capabilities of each branch.' Shinhan Bank, which was the first to adopt the system, has undergone several improvements and is reportedly reviewing the system during this personnel and organizational reorganization.
Employees are expressing relief that changes are finally being made in the right direction. A Woori Bank branch employee said, 'Although the intention behind the VG system may have been good, it ended up increasing unnecessary tasks like duplicate report writing and only deepened conflicts among employees.' They added, 'Branch employees are welcoming the decision to abolish the system.'