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Written Analysis Report on Ross

Abernathys Core Team Building


Analysis for Frontier National Bank

Submitted to:
Prof. Vaibhavi Kulkarni
Academic Associate: Harleen Kaur

Submitted by
Vikas Kukreja (6616088)
MC-A, PGPX (18-Aug-2016)

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Case: Ross Abernathy and the Frontier National Bank

Executive Summary
Frontier bank is the oldest bank in its region and was at one time biggest and most profitable
in its region. However, currently it is going through tough times as its profits and market
share have steadily declined from last two decades. Ross Abernathy, Vice Chairman of
Chicago Bank and a hugely successful banker, was elected as CEO to turn around Frontier
Bank. Ross has responsibility to turnaround the bank and to bring enthusiasm in banks
employees while increasing their efficiency. He needs to choose his core team to bring the
bank on the path of growth with healthy margins.

He had following three options to formulate his core team:

Recruit a core team of professionals with proven capabilities with independent


viewpoints

Recruit a core team of trustworthy peers from his previous organization, Chicago
Bank

Build a team from within Frontier National Bank

Following parameters are decided to evaluate all options and to make final decision on
analysis of criteria.
1. Performance Metrics
2. Ambitions and Motivation
3. Leadership
4. Fast, Flexibility and First Mover
After careful pondering on all options available, we propose to consider a holistic approach
wherein Ross Abernathy shall form a combined team from Frontier and his previous
company, Chicago bank. A team of varied experience and proven skill sets from within bank
and outside company will help revive banks Revenues and profits in future.

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Situation Analysis
Frontier bank is the oldest bank started in 1940 in its region and was at one time biggest and
most profitable in its region. With time the bank got conservative and lost its competitive
position to its competitors with reduction in profitability and revenues. Due to its
conservative nature and late adoption of technology, bank has very high employee to assets
ratio wherein assets are growing at snail pace. Currently bank is at third position in terms of
assets and sixth position in profitability in its region.
As bank is still headed by member of founding family who is about to retire soon and board
is planning to appoint someone who can change banks direction and increase its revenue.
Employees of the bank are not very efficient and have low productivity, which is going to be
a huge challenge for upcoming CEO. Board of directors chose Ross Abernathy as bank CEO,
who has immense experience in banking industry and a great track record. He understood
banks culture and was not impressed with the employee morale, efficiency and zeal to work.
However he is clear what needs to be done to revive bank and wants to build a team for this
task. Ross consulted some of his mentors and received three different suggestions from his
mentors as way forward. Now, there is a dilemma which of the three options should be taken
for making a team. Further analysis of the process undertaken and final decision is explained
ahead.
The Problem Statement
A decision needs to be taken on which option to choose to build a new highly motivated &
efficient team for Banks turnaround and revival from slow growth phase leasing it a new
life.
Options Available
Following are the alternatives available to evaluate:

Formulate a team out of current employees of Frontier National Bank

Recruit a core team from Ross previous organization, Chicago Bank

Recruit a core team of professionals with proven capabilities

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Criteria for Evaluation


Based on the current situation and objectives, the following criteria need to be evaluated
against the available options.
Performance Metrics: It is essential to have a great past track record with varied experience
in different situations and a unique combination of technical expertise and managerial skills
indicating responsibility, networking and relationship building.
Ambitious & Motivation: A high level of ambitious self and motivation is needed to bring
in huge change and keep working at your best in times of uncertainty. These are highly
essential attributes in the team looking forward to turnaround the bank.
Leadership: As employees of bank are not highly enthusiastic and low on future vision, it is
essential for new team members to have leadership and lead their employees toward great
future of bank through excellent execution of an already good plan.
Fast Flexible & First Mover: It determines the variety of roles a leader I team needs to play
while working through different situations of conflict, bringing in change and dynamism in
team.
Options Evaluation
The three options have been evaluated on the basis of the evaluation criteria mentioned
above.
1. Formulate a team out of current employees of Frontier National Bank
Performance Metrics: Frontier bank is growing at snails pace while industry is growing
faster. New team with ambitious employees from within with right incentives can develop
new product and service for markets and fasten banks growth taking it to new heights
however they do need outside support to create credibility.
Ambitious & Motivation: With current employees in bank having low enthusiasm and
energy affects bank working environment and culture. Its essential to have new members
from outside who are ambitious and self motivated and instill the zealousness in current
employees focusing on increasing productivity through creative solutions and developing
synergy.
Leadership: The bank needs not one but various leaders to lead many teams, each
developing a turnaround strategy in its area of business. Hence each team member in top
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management team should be high on leadership quotient and have relevant experience in
leading various teams through thick and thin throughout there careers in different roles.
Fast Flexible and First Mover: With bank churning out poor numbers, its essential to have
new developed team to be flexible in its approach and try various options while carving out a
success strategy for the bank. It will be helpful to select few adaptable and flexible employees
from within bank to navigate the success strategy through.
2. Recruit a core team from Ross previous organization, Chicago Bank
Performance Metrics: Ross has worked with many teams in Chicago bank and he can
exploit his knowledge to pick highly expert and trustworthy employees of Chicago bank to
build a success strategy and work with him for future of frontier bank.
Ambitious & Motivation: Picking highly enthusiastic employees of Chicago bank with
relevant skill set will help Ross to introduce and implement in best practices of previous bank
with ease and their motivation to turn around the bank is essential to make it success. It
would be really tough to expect it from internal employees without any trigger point.
Leadership: Ross would have mentored many employees in Chicago bank and can now
choose them based on high leadership quotient to inculcate zeal and enthusiasm in frontier
banks employees and lead various teams to successful projects.
Fast Flexible and First Mover: With bank churning out poor numbers, its essential to have
new developed team with fresh perspectives and viewpoints to be flexible in its approach and
try various options while carving out a success strategy for the bank.
3. Recruit a core team of professionals with proven capabilities
Performance Metrics: With low performance and slow growth, bank needs a strategy to
turnaround fast. Professionals with proven capabilities from outside would provide a fresh
perspective and viewpoints, however it would take long time to develop a rapport with Ross
and other bank employees.
Ambitious & Motivation: Picking highly enthusiastic professionals from industry with
relevant skill set will help Ross to introduce and implement in best practices with multiple
approaches and to turn around the bank to make it success. It would be really tough to expect
it from internal employees without any trigger point.

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Leadership: Ross would have mentored many employees in Chicago bank and can now
choose them based on high leadership quotient to inculcate zeal and enthusiasm in frontier
banks employees and lead various teams to successful projects.
Fast Flexible and First Mover: With industry experts from outside, it would be tough to
navigate fast and adapt quickly in frontier bank, as employees can resist their initiatives or
shun their support in turnaround initiatives.
The Recommendations
Ross should take a hybrid approach and build a team comprising of colleagues from Frontier
bank and Chicago bank to have a combination of insiders and outsiders together. He should
build a team consisting of some competent members of Frontier bank, bringing some of his
trusted associates who are ambitious and competent to perform this role and should also bring
in competent and trustworthy professionals from his previous organization, Chicago bank
who will share different practices and bring in diversity and new ideas. Professionals from
outside will have a challenging time understanding the frontier banks problem and act
accordingly delaying or even rendering this mission ineffective. Hence combination of
professionals from both banks who have above attributes will certainly be able to bring in the
necessary change along with Ross Abernathys guidance and expertise.

Action Plan
As discussed above, Ross should do the following:

Build a hybrid team from FNB and Chicago Associates

Do a SWOT analysis of each member and make sub-teams of complementary


attributes spreading across different departments.

Create a performance based incentive scheme to promote high performers and create
performance driven culture-instilling meritocracy among bank employees.

Contingency Plan
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Focus on bringing cost and productivity efficiencies through various value analysis exercises
and bringing a drive of cost efficiency through out the company. Build a strategy focusing on
expansion and growth through customer driven products and services keeping them in
business for long term and providing value added services. Also keep a tab on competitors
strategy and make a counter strategy ready against that. However, if at all existing plan fails
to deliver as per set milestones, Ross need to follow a flexible approach and adapt by making
modifications in the plan as per then requirement.

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