Bank of Hong Kong: Introducing Financial Services Executives (B)

Following significant competitive developments in the Hong Kong banking environment, BHK, one of the region’s largest banks, undertook a major strategic change initiative in 1998. One of the key strands of this initiative was to transform the bank’s traditional branch structure into tailored financial service centres. Case A charts the experience of a leading branch manager challenged to develop and pilot the process of reform in her own branch, with no additional resources or support. Case B, set two years later, focuses on internal problems which have emerged as a direct result of the new changes.

The case highlights the conflicts of interest between various stakeholders within the branch structure, the two cases require students to consider the front-line implementation issues of a major strategic transformation and the processes required to facilitate change of this magnitude, from enhanced motivational systems and reward structures, to reengineered processes and procedures, and job redesign.