- Published: November 25, 2021
- Updated: November 25, 2021
- Language: English
- Downloads: 25
Keep both management and employees satisfied and engaged Work with the bank staff in order to accept Magmas bank acquisition New management New procedures Leading a smooth management change Current Reality Contextual observations Quality of loans is unsatisfactory Procedures to provide loans Is not well established to ensure acceptable profitability The way the bank is functioning needs to be reviewed and improved Observations on Andrew KleinleadershipThere is a new foreign management coming with the bank acquisition which need to be accepted by Magmas Bank staff Andrew Klein was relying on young American foreign) young assistant with two years experience only Poorcommunication: No trust was developed before starting procedures change The way the new produces were introduced is a top down announcement which isn’t usually well accepted. Observations on the new management outcome Number of the loans requiring risk committee approvals have drastically declined.
In fact, the more branches are losing autonomy and flexibility the more market share Magmas bank is losing According to Andrew Klein, quality indicators have improved after risk department introduction Accounts with Magmas bank were not increasing mainly in branches located outside the capital Criteria Magmas Bank performance StaffmotivationNew procedures adoption New management acceptance Building trust Explore alternatives Continue with vertical decisions: Directly send the management committee decision and new processes to be applied to the branch managers. This means decisions are going from up to down without communication. Change management and decision way: Involve branches’ managers and improve communication with branch managers before taking any decision (Lovely suggestion) Replace Andrew Klein by Mire and provide him guidance and trainings from American Capital so he can implement the restructuring process.
Continue with vertical decisions Change management and decision way Replace Andrew Klein -2 2 3 -3 Overall Rate -9 7 13 Score between -3 and 3 Target Energy According to the alternatives scoring, it seems that replacing Andrew Klein by Mire while guiding him is a more viable solution to meet American Capital target. The action plan that we suggest is as follows: Invite management board and branches managers to a meeting with Andrew Klein for management meeting Announce that the transition phase is at its 2nd phase and Mire Lovely will continue to do his role of Magmas Bank president and American Capital will continue to support him and all the staff in order to make Magmas number one bank in Hungary.
Announce that there will be Quarterly management meeting with Andrew Klein who will be the sponsor for Magmas Bank get well plan and integration in American Capital group. Ask branches managers and management board for their feedback and suggestions about the new process that has been established and what we can do to improve it. Reiterate how much important to setup such new process in order to meet targets. Explain how American capital and similar companies have been able to grow only by doing such. Emphasize on how much important is local managers feedback and experience to grow the business.