Executive Summary

Frontier National Bank is going through tough times of falling profitability and steadily
losing its market standing. Current team though technically competent, lacks enthusiasm
and vision. Despite this, the bank has managed to maintain its reputation, ties with banks
abroad and $7 billion worth of possessions.

To prevent impending merger with competitor, bank needs to be revamped under the
leadership of Mr. Ross Abernathy who has legacy of turning around such organisations.
Considering the challenging mission and new strategy required while fostering morale of
the workforce, alternatives have been proposed taking performance, orientation and vision
as key deciding factors.

After evaluation, it is recommended to constitute a team with both existing competent

employees and proven independent professionals.

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Table of Contents

Contents
Executive Summary ............................................................................................................. 1
1. Situation Overview ....................................................................................................... 3
2. Problem Statement ........................................................................................................ 3
3. Decision Criteria ........................................................................................................... 3
4. Alternatives ................................................................................................................... 3
5. Evaluation of alternatives ............................................................................................. 4
6. Recommendation .......................................................................................................... 4
7. Action Plan ................................................................................................................... 5
1. Situation Overview
 Frontier National Bank had been the biggest and most profitable bank of the region.
 It mainly did routine business with traditional customers and lacked international
and pension fund business.
 The employees though technically competent were dispirited.
 It had legacy of being headed by members of founding family but the family did
not hold any stock in the bank.
 Lately it had slipped to the third place in assets and sixth place in profits in the
region.
 Frontier National Bank is still a large bank with $ 7 billion in assets with very good
reputation and close ties with banks abroad.
 The Comptroller of Currency had raised concerns over the falling profitability,
declining liquidity, inadequate capital and highlighted risk of possible merger with
better managed competitor bank.
 This prompted board to look for a new CEO of the bank and hence Ross Abernathy
was approached.
 Ross Abernathy, an ambitious banker had experience of taking business to new
heights for Chicago bank and a group of insurance companies under his leadership.
 The intellectual excitement of banking led Ross to accept the offer.
 Ross Abernathy being aware of the bank’s strength and weakness, had clear picture
of what all would be required in revamping the existing situation of bank under his
leadership.

2. Problem Statement
Development of new team which can work efficiently and effectively with new CEO
to tackle the current challenges that the bank is facing and thus enabling the
organization to enhance profits.

3. Decision Criteria
1. Performance driven
2. Orientation
3. Visionary

4. Alternatives
The new leadership team can be formed with following alternatives:
A. Internal Employees.
B. Known employees from Chicago Bank.
C. External employees with proven capacity to lead and perform.
 D. Mix of internal and external proven performers

5. Evaluation of alternatives
Decision criteria
Alternative Performance Orientation Vision
Driven
A 1 5 1
B 4 3 4
C 5 2 5
D 4 4 4
With 5 as highest and 1 as lowest score.

Alternative A: Existing employees are well versed with organisations’ working

environment but are not up to the latest trend and evolving market. They are technically
competent but dispirited and it will require a lot of efforts to generate morale and
enthusiasm in them so that they can perform their best.

Alternative B: Team of well-known associates who would co-ordinate efficiently and thus
deliver results quickly. However, they would take a lot of time to adapt existing work
environment and there are fair chances of uprising from employees and board.

Alternative C: Team of people with visionary, innovative solutions and proven track
record will help organisation to overcome the current challenges. However, they might be
viewed as outsiders and not get support from existing employees.

Alternative D: This will foster performance driven work culture in the bank. Since they
won’t have individual agenda but to tackle new challenges and achieve the bigger objective.
The team might become example for others and would get support from existing staff.

6. Recommendation
We recommend a team which comprises of internal and external employees thus integrating
the existing workforce with bank’s new strategy and mission.

Alternative D is the recommended alternative.

7. Action Plan
 Get HR department aware about the decision and get them on board to hire new
team.
 Establish a roadmap with clear objectives and strategy which will enable the team
to work on.
 Performance Evaluation to minimise behaviour and work quality problems.
 Reward Systems that would influence action choices in favour of organization.
 Formal Rules and policies to limit activities that don’t abide by organisations goals
and mission.

8. Contingency Plan
 Budget constraint: Hiring new team members might require monetary support
which can lead to budget constraints. This can be mitigated by promoting voluntary
retirement scheme.
 Board approval: Board might have issues with leadership team coming from
competitor banks. This can be mitigated by choosing larger pool of candidates for
the required team.
 Limited knowledge: The existing executives might not be well updated with new
banking trends. They can be coached especially to new functions to mitigate this .