Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Reserves Strategic plan - Standard Chartered Bank Case

CFVG, MBA 25
NGUYEN Hoang Quan
DANG Thuy Dung
NGO Hong Nhung
LA Huyen Trang
This thesis aims to understand about characteristics of Standard Chartered Bank, analyze reforming plan in term of organization structure as well as propose suggestions to improve performances and reduce drawbacks of this plan.
We apply qualitative and quantitative methods, using data in Standard Chartered Bank annual reports and feedbacks from employees of Standard Chartered Bank

  • Login to see the comments

Reserves Strategic plan - Standard Chartered Bank Case

  1. 1. Reserves Strategic plan TEAM 5, OB PROJECT, MBA 25A1 CFVG, MBA 25
  2. 2. Introduction NGUYEN Hoang Quan DANG Thuy Dung NGO Hong Nhung LA Huyen Trang
  3. 3. Content RESEARCH INTRODUCTION IDENTIFY AND ANALYSIS THE SCB OB PROBLEM THE RESERVE STRATEGIC PLAN RECOMMENDATION 1. 2. 3. 4. 03
  4. 4. 04 RESEARCH INTRODUCTION This thesis aims to understand about characteristics of Standard Chartered Bank, analyze reforming plan in term of organization structure as well as propose suggestions to improve performances and reduce drawbacks of this plan. We apply qualitative and quantitative methods, using data in Standard Chartered Bank annual reports and feedbacks from employees of Standard Chartered Bank
  5. 5. To understand the reason lead to SCB organizational behavior problem Introduction to SCB History milestone and First lost Analysis current situation (External & Internal 05 IDENTIFY AND ANALYSIS THE PROBLEM2
  6. 6. STANDARD CHARTERED One of the most leading international banking group in the world. 2.1 Introduction to SCB Formed in 1969, merger of the Standard Bank of British South Africa and the Chartered Bank of India, Australia and China Top 5 Biggest British Banks Ranks 37th in the Top 1000 World Banks by Tier 1 2016 67 counties, 1,100 branches and 84,000 employees London, Hong Kong and Mumbai stock exchanges
  7. 7. Commercial banking Financial exchange and investment Corporates & institutional banking Services for individual has high capital: investment, wealth management Services for individual and small size companies : savings, credits, mortgages, insurance Private Banking Wealth management Retail Banking Mission Here for goods Strongly capitalized bank 07 2.1 Introduction to SCB Services for mid-size companies: lending, risk management
  8. 8. 08 2.1 Introduction to SCB Oct 2015: restructure Matrix organization 3 base: customer, location and function Organization Chart Organization Culture  Courageous  Responsive  International  Creative  Trustworthy
  9. 9. 09 2.1 Introduction to SCB courageous Responsive InternationalCreative trustworthy Organization Culture
  10. 10. • Expanding in Europe and USA while continuing their expansion in traditional markets in Asia and Africa. • SCB took up a program of expansion. AFTER THE MERGE • The Standard bank of British South Africa • The Chartered bank of India, Australia and China 1969 SCB WAS FORMED THROUGH THE MERGE OF 2 BANKS 2.2 History milestone From 1969 to 2016 10
  11. 11. The Bank has achieved several milestones with a number of strategic alliances and acquisitions, which have extended the customer and geographic reach and broadened the product range. 2000s STRATEGIC ALLIANCES AND ACQUISITIONS • A leading international banking group. • Operates a network of more than 1,200 branches and across more than 70 countries and employs around 87,000 people. 2011 NINETH YEAR IN A ROW OF RECORD PROFIT AND INCOME GROWTH • From the early 1990s, SCB has focused on developing its strong franchises in Asia, Africa and the Middle East. • Concentrate on consumer, corporate and institutional banking and on the provision of treasury services – areas. 1990s DEVELOPING STRONG FRANCHISES
  12. 12. Lay off 15,000 employees to achieve cost savings of $ 2.9 billion until 2018, and will restructure or withdraw capital from 100 billion of assets. 2015 FIRST GLOBAL LOST IN 26 YEARS 2016 • 6 August 2012: DFS accused the bank of helping Iran launder about $250 billion. • The bank lost about USD 16 billion worth of shares. • Pay a $ 340 million fine and to install a monitor to oversee the bank's money laundering controls for at least two years. • 19 August 2014, the bank was fined $300 million by DFS for breach of money-laundering compliance 2012 - 2014 MONEY LAUNDRING CHARGES 12 • Large loss of $2.36 billion for 2015 as restructuring costs & bad loans. • Pretax loss of $1.5 billion, operating income was $15.4 billion in 2015. • Major restructuring costs of $1.8 billion and a $863 million repricing of complex financial instruments, 87% rise in bad debts.
  13. 13. 2 . 3 A N A L Y S I S C U R R E N T S I T U A T I O N S w T O 13
  14. 14. 2 . 3 A N A L Y S I S C U R R E N T S I T U A T I O N SWOT ANALYSIS Opportunities The development of technology The globalization Emerging countries: Asia + Africa S w T O 14
  15. 15. 2 . 3 A N A L Y S I S C U R R E N T S I T U A T I O N SWOT ANALYSIS Threats The gap between different cultures Banking is a sensitive industry The globalization & technology development S w T O 15
  16. 16. 2 . 3 A N A L Y S I S C U R R E N T S I T U A T I O N SWOT ANALYSIS Strenghts Long-time reputation Global footprint Customized service packages that meet customers requirement Competent workforce S w T O 16
  17. 17. 2 . 3 A N A L Y S I S C U R R E N T S I T U A T I O N SWOT ANALYSIS Weaknesses Complex organisation structure High employee turnover rate Collaboration S w T O 17
  18. 18. 32 Reserves Strategic plan3 3.1 DESCRIBE THE PLAN 3.2 EVALUATION THE PLAN
  19. 19. INVEST AND INNOVATE SECURING THE FOUNDATIONS BECOMING LEAN AND FOCUSED2 3 1 Bill Winter Group Chief Executive “We will establish a strong, lean, focused, differentiated and profitable bank” 19
  20. 20. SECURING THE FOUNDATIONS 1Simplify its organization structure Restrict with less layers and more span of managers Reduce gross headcount 15000 20 QN1
  21. 21. Slide 20 QN1 Quan Nguyen, 11/20/2016
  22. 22. Restructure Corporate and Institutional Banking segment for higher returns Concentratie on large cities that have ROE (return on equity) from and over 10% Assertively manages costs to create investment capacity BECOMING LEAN AND FOCUSED2 21 QN1
  23. 23. Slide 21 QN1 Quan Nguyen, 11/20/2016
  24. 24. INVEST AND INNOVATE3 Retail Banking Private Banking and Weath Management Renminbi Services Africa 22 QN1
  25. 25. Slide 22 QN1 Quan Nguyen, 11/20/2016
  26. 26. INVEST AND INNOVATE3 23 QN1
  27. 27. Slide 23 QN1 Quan Nguyen, 11/20/2016
  28. 28. 3.2 Evaluate the plan • SCB had advantage at individual and group perspective • The leaner structure and digital integration see does not work well through system in the first phase of the plan • The number of voluntary layoff also increased Stock price of SCB has slightly increased from QII of 2016 76 66 97 70 90 69 75 41 1. Once a decision is made, everybody involved commits to delivering it 2. Different parts of the Bank collaborate well together to deliver results 3. I understand what the Code of Conduct means to me in my role 4. The Bank's leadership cares what I think 5. I feel welcome and included in my team 6. I am very optimistic about my future with the Bank 7. I plan to be working for SCB in 18 months' time 8. On a scale from zero to ten, how likely is it that you would recommend the Bank as a… 24
  29. 29. RECOMMENDATION PROJECT CHANGE4 Plan overview Implementation Control and Evaluation
  30. 30. 26 4.1 OVERVIEW Job satisfaction - Retention rate The “Survivor” problem The plan’s purpose is to resolve 2 remaining problems: Consolidate the Organic business model Manage the “Survivor” effect Enhance employee competency Improve collaboration Create close groups
  31. 31. 27 4.2 IMPLEMENTATION PLAN Consolidate the Organic business model
  32. 32. 28 4.2 IMPLEMENTATION PLAN Manage the “Survivor” effect Managers must: - Encourage and retain employees who survived the layoff plan.- - Make the most of it from the adverse circumstance. These goals can be achieved through: - Communicate often and with transparency - Set a good example - Redeploy surviving employees
  33. 33. 26 4.2 IMPLEMENTATION PLAN Enhance employee competency The problem of Self-achievement: Staffs are in-secured with extra responsibilities and requirements Solutions: • Training programs • Job rotation • Job enlargement
  34. 34. 30 4.2 IMPLEMENTATION PLAN Improve collaboration Intragroup conflict causes hostile attitude toward members of other group. Solution: Team-building activities
  35. 35. 4.2 IMPLEMENTATION PLAN Create close groups To create real-life bonds between staffs that can last even after they leave the office. The group’s bases: • Satisfaction of the needs for security, social belongings and seft- esteem • Proximity (physical distance between people) and Attraction (similarity in motivation, attitude, perception and/or performance) • Economic (the collective economic benefit)
  36. 36. 32 4.2 IMPLEMENTATION PLAN - The plan primarily focus on the human aspect of organization behavior - 5 sub-plans are categorised based on management level, urgency and importance - Assessment and reward regime is strictly tied to the upcoming 2017’s P3 review -> SMART plan
  37. 37. 33 4.3 CONTROL & EVALUATION Possible difficulty: - High and middle-level managers hold most responsibility - The resistance to change is inherent in most people  It is necessary that the messages are cascaded effectively from the Board to Managers, and then from Managers to subordinates.
  38. 38. THANKS FOR LISTENING TEAM 5, MBA 25A1

×