Banking on Change (B)

Published 01 Mar 1996
Reference 4557
Industry Banking
Region Europe
Summary

The second part of the case (B) shows how the CEO belatedly took control of the transformation process himself and turned it around.

Teaching objectives

This case focuses on the three main phases in the transformation process: Phase One: Dealing with Organisational and Individual Stress (breaking out of the vicious circle of frustration and dissatisfaction with the status quo; Phase Two: Hope - A New Vision (the arrival of a powerful change agent, in this case the CEO of the acquiring bank, who is able to develop a positive relationship with employees and design and communicate a compelling reason for the transformation and vision for the future); and Phase Three: Transformation (steered focal events to set goals and declare intent to change; individual change in relation to one's perception of locus of control, crystallisation of discontent, acceptance of change on a personal level; reality check - concretisation of rewards, small wins). These points are summarised in an exhibit, which will serve as an outline of the transformation process.

Keywords
  • ORGANIZATIONAL TRANSFORMATION
  • INTEGRATION OF CORPORATE CULTURES
  • CHANGE
  • MERGERS AND ACQUISITIONS
  • LEADERSHIP