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

1. Reserves Strategic plan
TEAM 5, OB PROJECT, MBA 25A1
CFVG, MBA 25

2. Introduction
NGUYEN Hoang Quan
DANG Thuy Dung
NGO Hong Nhung
LA Huyen Trang

3. Content
RESEARCH INTRODUCTION
IDENTIFY AND ANALYSIS THE SCB OB PROBLEM
THE RESERVE STRATEGIC PLAN
RECOMMENDATION
1.
2.
3.
4.
03

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. 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. 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. 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. 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. 09
2.1 Introduction to SCB
courageous
Responsive
InternationalCreative
trustworthy
Organization
Culture

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. 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. 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. 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. 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. 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. 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. 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. 32
Reserves Strategic plan3
3.1 DESCRIBE THE PLAN
3.2 EVALUATION THE PLAN

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. SECURING THE FOUNDATIONS
1Simplify its organization structure
Restrict with less layers and more span of managers
Reduce gross headcount
15000
20
QN1

21. Slide 20
QN1 Quan Nguyen, 11/20/2016

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. Slide 21
QN1 Quan Nguyen, 11/20/2016

24. INVEST AND
INNOVATE3
Retail
Banking
Private
Banking and
Weath
Management
Renminbi
Services
Africa
22
QN1

25. Slide 22
QN1 Quan Nguyen, 11/20/2016

26. INVEST AND
INNOVATE3
23
QN1

27. Slide 23
QN1 Quan Nguyen, 11/20/2016

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. RECOMMENDATION PROJECT
CHANGE4
Plan overview
Implementation
Control and Evaluation

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. 27
4.2 IMPLEMENTATION PLAN
Consolidate the Organic business model

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. 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. 30
4.2 IMPLEMENTATION PLAN
Improve collaboration Intragroup conflict causes hostile attitude toward members of other group.
Solution: Team-building activities

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. 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. 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. THANKS FOR LISTENING
TEAM 5, MBA 25A1