The National Bank of San Francisco

Case Study: National Bank [pic 1]

        The National Bank of San Francisco set out to analyze ways to reduce operating and overhead costs. After two years of extensive research, the manager of personnel & equipment planning, James Nicholson, failed to gain agreement on his recommendations during a meeting with the committee and the branch managers. This paper will identify the key problems associated with Jim’s dilemma, and explore several alternatives, and make a recommendation to resolve their issues.    

Defining the Problems

Failure in Leadership

        From its inception, this assignment was destined to fail. First off, the VP, Mr. Simmons, and CEO, Mr. Wellington, failed to embed or translate this company initiative throughout the organization.  As a result, branch managers were not fully committed or engaged with the company goals, nor were they ever engaged throughout the two year process to gauge their concerns or level of support.  

        Secondly, Jim’s task was never clearly identified.  He was given full autonomy on this assignment with very little direction from his VP or CEO.   His marching orders were simply to “devote time to operating methods & facilities” in effort to reduce costs. Furthermore, there was little feedback and direction given to Jim during his update meetings with the VP and CEO during those two years. At the one year mark, Simmons made a key recommendation to Jim that may have changed the outcome of their recommendation meeting; however, Simmons failed to follow through with Jim’s progress in their subsequent meetings.

Failure to Manage the Project

        There were several red flags that should have elicited an adjustment in Jim’s strategy.  It was clear from the committee’s feedback that branch managers were reluctant to commit to their recommendations. Jim never had their buy-in; and consequently, no chance of getting his recommendations approved after their two years of work. Also, Jim failed to follow through with savings opportunity he uncovered with office space and furniture. This was a quantifiable change that may have produced over $1 million in savings.

Alternatives

        In order to ensure a commitment from the company on these cost saving goals, Mr. Wellington needs to project his vision throughout the organization.  Teams are more likely to collaborate when senior executives demonstrate collaborative behavior. (Gratton & Erickson, 2007)  He can accomplish this in a number of ways; he can organize a follow-up meeting, schedule branch visits, or even send out a personalized letter to each of his branch managers.  

        Simmons & Wellington should clarify Jim’s objectives with this project and overall in this new role.  Jim’s autonomy or latitude should not be restricted; rather his role should be sharply defined to improve his support. (Gratton & Erickson, 2007). The best way to do this is to provide Jim with written expectations of his goals and objectives. The VP or CEO may also choose to do this over lunch or even as a debriefing from this last meeting.  Routine and timely feedback from his direct supervisor, Mr. Simmons, will also ensure that Jim remains on track or is able to realign if need be.