Reference no: EM132927578

When Sana Aslan was recently appointed as the CEO of Pinar FDM Bank in Turkey, she made field visits a priority, as she helped her find out how the customer services and support staff were dealing with the changes that were driving her to switch to electronic services. As most of the competing banks have moved to electronic services.

On her journey from Ankara airport to the largest branch of Pinar FDM Bank in Turkey, Sana Aslan wished that the trip would have taken longer, as Sana did not make this visit alone this time. The French parent company of Pinar FDM Bank in Turkey accompanied her on her trip, and half an hour was not enough for them to share news .

Arakan Malas was the Human Resources Director at Pinar FDM Bank in Turkey, and from the start he was frustrated at the appointment of her age and her approach.

While her supporters, including Sophie, saw her as a brilliant former financial consultant, who are 35 years old, with plenty of energy and big ideas about how the bank should adapt to a rapidly changing market, her critics saw her as a young woman. She did not occupy an executive position in her life and does not have practical experience in the banking sector, and she is ignorant of many matters.

Sana was in the process of undertaking measures that pave the way for an attempt to move the bank to electronic work, canceling all paper transactions and investing the electronic environment in improving and developing services, so there was a hindrance to it !!

Although the board of directors had assigned Sana the task of bringing about changes in the bank, Arakan was objecting to every strategic shift she was undertaking, and among these measures that Sana wanted, and Arakan objected to them: Moving away from the structure of separate branches that are not cooperating with each other. A change in the functional structure of the bank by dismissing about 40% of inactive key managers of the bank to make room for new talent, and pushing for the transfer of all services in turn to the electronic environment.

Arakan was of the opinion that Sana should first look at the performance appraisals of the employees in order to determine who the managers are possible to begin their dismissal, but we do not see that she has an insight that makes her know who the first managers are to be laid off.

Sophie said, "Yes, I can imagine Arakan saying that. This person hates change. "

Sana replied, "Or maybe Arakan hates everything that bears my fingerprints."

Sophie said, "You don't need his approval, you are doing the right thing, and as long as he carries out your decisions, there is no problem with that."

Sana added, "But he does not like the new strategy."

When Sana was tasked with reconsidering the bank's service approach, she refused the traditional path of branch expansion. Instead, it was working to develop banking operations on the mobile phone and the Internet, as competitors did, and was looking forward to trying a more innovative idea than setting up branches: Partnerships with supermarkets and electronic stores to allow the bank to set up kiosks inside them. This would enable the bank to serve customers when and where they needed cash and facilitate the process of applying for loans.

Sana then added to Sophie: Arakan says that employees are tired of change, and they will not be able to achieve it. Some board members may not agree to this. I fear that we will face fierce stubbornness on their part. "

"Let them do it, let them test our stubbornness," Sophie said with a wink of an eye.

Sana and Sophie arrived at the branch and the branch manager, Maryam Kartal, met them in the foyer and introduced a few employees before escorting the two women to her office. And when they sat, she asked Sana: Are the employees confused? " Mary replied: "Like any reorganization, there is a period of adjustment. We were all surprised by the high rate of employee turnover in the main branch of the bank. But I think the employees also see a space for progress that was not available to them before. "

Sena asked: "Do the staff understand the reason for the changes? Is it clear to you? " , And she knows that she needs the managers to be in her class like Mary.

Mary answered: Yes. The sector is changing. Nobody wants to visit the branch anymore, customers want to do everything on their computers or mobile phones. "

Sana replied, "Yes, he can do that." That's exactly the kind of agility and response she was trying to encourage. "

Mariam replied: Of course, I am training him to do so. But the employees are wondering about their role at work in the coming days. They want to know if we are going to start closing branches.?

Will we be operating all from call centers or kiosks in stores in the next year? It is a matter of tension and concern ".

Sophie asked to speak with a few of the employees, so Maryam invited them to take a tour, so she started with two cashiers, and Sophie asked them if they had any questions. "Are we going to lose our jobs?" Said the young man impulsively, followed by a tense laugh.

His colleague added, "Well, I wouldn't have asked the question this way, but this is what we all wonder about." She added, "My friend told me that in her company, when there are changes in the top positions, it will not take long for this to follow the layoffs of the customer services and support staff." Sana reassured them that no layoffs were planned. They were shaking their heads, but that did not indicate that they trusted what she was saying.

Sophie and Sana met with a few of the analysts and loan officers. None of them was, frankly, a cashier, but the concern was palpable.

"It looks like it is a cause for concern," said Sana, as they walked out the door. Sophie replied: "Change is necessary to keep going and make progress." "Yes, but maybe there is no need for it to happen that fast," said Sana.

The risk of rolling back

The next day in Istanbul, Sana met Ahmed Ozan, the chief financial officer, a man who had spent many years working with the bank, like the senior managers who were dismissed from them, but she appreciated Ahmed's experiences, and he was also providing her support in her efforts in the transformation process Especially in those measures that were aimed at reducing expenditures. Ahmed also devoted a large portion of his time to designing the model of the bank's kiosks.

Ahmed said: "The expectations for the kiosks are very positive, and the market research conducted by Capital points to promising results. However, the IT systems that we need to deal with loan applications are complex, and implementing them will be a very difficult challenge. " And he was silent for a while, then he continued, saying: "This is what bothers Arakan a lot "

"Arakan has been upset since I started working here," Sana said. Ahmed replied: "He is correct in age, but he may be right on this point specifically. His team will need to work day and night every day to achieve this if they are to meet the schedule you set. It will also require a tremendous marketing effort and some major changes to the staff, and this may result in a further depletion of human resources in the bank, and this will not affect only senior employees like us, but even young employees who love our current way of working. "

We did not like the way Ahmed described the recent management changes in the bank, but it left him to keep talking.

Ahmed continued, "We are also not sure if this model will succeed. Will people really use kiosks? And if they did, would we be able to handle loan requests quickly and effectively? I know the idea is aimed at reinventing the banking industry here, but are you sure that our clients are ready to apply for loans without getting the help of a professional who guides them during the application writing process? Are you sure we are ready for this? Why not take a moment and do more market research to make sure our assumptions are accurate? " Ahmed ended his speech so she took a deep breath in her attempt to comprehend everything Ahmed said, then she said: "I appreciate your opinion very much, Ahmed, and these are valid questions indeed. But the goal of the experiment is to find an answer to all these questions, so we can go through the experience and learn from it on the ground. This is a practical way to confirm it. "

Ahmed said, "But it is not the usual method for this bank. I know you think that slowing now will give the impression that you are not sure of your decisions. But this will not happen, but rather it will give others much-needed respite. Trust me, I understand why you are insisting on this. The board of directors is watching closely what you do, and we have to offer them the growth they are asking for. "

"Exactly, part of my job is to bring change to the bank, to keep what is good of course, but to take a step into the future," said Sana. We have to make sure to understand the risks that I have referred to, which are really dangerous, while thinking at the same time of the greater risks that will result from not moving forward with this idea. It would not be in our interest for one of the competitors to outperform us in this aspect. We will also make our services available on the mobile phone and take advantage of social media, in addition to kiosks. Distinguishing from others is the only way to achieve victory in this market. "

Difficulty surviving

Sana was sitting that night at the dining table reviewing the analysis provided by Ahmed, so her husband Denise came to her and said: You look upset, what is the matter? Sana said, "Do you remember what Arakan said about slowing down? It seems that Ahmed agrees with his opinion, and I'm afraid they are right. " "But the board of directors hired you in order to be a pioneer of change," said Denise. "This is your mission."

She said: "I know this, and I really feel that it is my duty to press in the direction of implementing this plan, as change is positive, and it is also necessary, as Sophie always says: This bank has not left its place for a long time, and we have to move forward.

Sana was knocking on the table with her hand when she said the last sentence, and then she continued saying: "We cannot lose the momentum and enthusiasm that we have reached, and if we slow now as they are demanding, then when and how will we have the opportunity to start over?"

Sana's husband kept listening and moving his head, but Sana felt that he was silencing a smile, so I asked him, "What's the matter?"

He said, "I like your toughness, I think you are doing the right thing, old. But I also understand Ahmed and Arakan's point of view. I know how difficult it is for anyone to try to keep up with your bold plans. "

Discussion questions

• What are the job requirements that are not available in Sena that Arakan considers necessary?
• What kind of recruitment is the age assigned to it? What are the advantages and disadvantages of that?
• Did Sana fired managers based on annual performance reports as usual, or did she have a different opinion?
• What are the changes that Sana has made to the organizational structure? Do you see it violent or calm?
• What are the training needs of the bank's employees, as is evident in the case?
• What are the recommended courses to cover these training needs?
• What is your opinion of Arakan's opposition to some of Sana's measures? Do you see him right to oppose him?
• Does Sana have to be thoughtful in making changes to the bank's work systems?