Alberto Fern ndez Change Management
1. What is the context within Nedbank when Ingrid Johnson arrives at Business
Banking in 2005?
1) At that point, 11 years after Apartheid's end, both Nedbank and South Africa in geneal were immersed in a period of significant change. In 2002 Nedbank decided to merged with another South
African bank (BOA) to improve its retail operations but they did it in the wrong moment (low confidence within financial marketplace). Troubles financing the acquisition and several ill-advised bets in the market caused Nedbank's market value to plummet, proving that the operation had definitely been a severe financial blunder for the company, leading to the ouster of the bank's senior leadership. As a result of this failure, the Nedbank's CEO was replaced in 2003 by T. Boardman, the previous BOA's CEO. Then he began a deep internal restructuring program to address tensions that had led to the merger with BOE. Among other steps, he decided to hire a consulting firm
(McKinsey & Company) to enhance the productivity of the BB unit as well to assist it in the merger process. This consultancy drew up a report where recommended accomplishing profound changes in core issues such as performance and accountability culture or equality policy (this section was at that point the most white male-dominated in Nedbank). According to them, there were 4 chief peformance gaps:
1.
2.
3.
4.
BB'S market share had dropped 3% high operating high credit losses plummeting of customer satisfaction to 4th position
Nevertheless, despite these warnings the status quo has scarcely ever changed by the time Johnson arrived at BB in 2005. Quite the contrary, most McKinnsey recommendations about empowering staff, streamlining processes, or tailoring relationships were still pending to be addressed clients needs within this division of concern.
2. What are Ingrid Johnson's main change management challenges when she arrives at Business Banking in 2005?
At that point, two diferent organizational cultures came into
Banking in 2005?
1) At that point, 11 years after Apartheid's end, both Nedbank and South Africa in geneal were immersed in a period of significant change. In 2002 Nedbank decided to merged with another South
African bank (BOA) to improve its retail operations but they did it in the wrong moment (low confidence within financial marketplace). Troubles financing the acquisition and several ill-advised bets in the market caused Nedbank's market value to plummet, proving that the operation had definitely been a severe financial blunder for the company, leading to the ouster of the bank's senior leadership. As a result of this failure, the Nedbank's CEO was replaced in 2003 by T. Boardman, the previous BOA's CEO. Then he began a deep internal restructuring program to address tensions that had led to the merger with BOE. Among other steps, he decided to hire a consulting firm
(McKinsey & Company) to enhance the productivity of the BB unit as well to assist it in the merger process. This consultancy drew up a report where recommended accomplishing profound changes in core issues such as performance and accountability culture or equality policy (this section was at that point the most white male-dominated in Nedbank). According to them, there were 4 chief peformance gaps:
1.
2.
3.
4.
BB'S market share had dropped 3% high operating high credit losses plummeting of customer satisfaction to 4th position
Nevertheless, despite these warnings the status quo has scarcely ever changed by the time Johnson arrived at BB in 2005. Quite the contrary, most McKinnsey recommendations about empowering staff, streamlining processes, or tailoring relationships were still pending to be addressed clients needs within this division of concern.
2. What are Ingrid Johnson's main change management challenges when she arrives at Business Banking in 2005?
At that point, two diferent organizational cultures came into