Svenska Handelsbanken Case Analysis

1. Answer to case Svenska Handelsbanken No t e b o o k Cre at e d 5. Org Control 2012-05-08 1045 Up d at e d 2012-05-08 2331 1. Using the 7S-model, describe what are the elements and the linkages in Svenska Handelsbanken. Which one of the 7 components is full of life? Provide arguments for each of your descriptions, and not mere conclusions. 7 S model consists of 7 elements which are schema,Structure, placement, Shared Value, Style, module, Skills. Applying 7S model to Handelsbanken Strategy cost-efficiency = low cost competition. doing safe investment, avoiding speculation. risk control) international expansion. differentiate with customized service/products, targeting for those picky customer concerning active quality of service. use network effect for marketing. (use discourse of mouth to market their products). focus on small / middle sized customers. open branches close to those giant corporates. provide financial support to Nordic companies who poke out international ly. Structure Handesbanken is a typical decentralized (in term of division/geography) company, which consists of many autonomous branches. Those autonomous branches have large amount of control and responsiblity. lat counsel The only layers between branches and CEO is a group of 11 regional manager. therefore the hierarchy of whole company is very flat. (add CFO or something else . ) System there is no top-down goal setting and annual budgeting. branches compete with each other in term of RoE = league table HRM administration = incentive system, employee holdings (Trust company). (put into System or Staff or Share Value, ) Risk control bottom-up product development process. cost management system (both direction and branch manager), Shared Value (culture) core customer-oriented. need better wording ) culture of thrift. senor of ownership = from employee level to branch level. people recognition innovation development people ( ) Autonomous ( coordinate ) Style long term o rientated customer focused style. (preservative) responsive to customer request. empowerment (share value or style ) Staff recruit people who has inner parkway, self-starting, committed to service. entrepreneurship for the branch manager extrovert/open/out-going Skills with considerable banking experience. entrepreneurship skill is a must for branch manager. ross-selling skills which one is vital ? (provide evidence) shared value is vital. because it is the internal driver for other six. candidates strategy, staff, structure. 2. What are the Critical Success Factors (CSFs) for the Handelsbankens decentralization approach? Provide arguments WHY these are give away base your answer on examples and arguments from your groups own business and work experiences and not on copy & paste from other sources. People = entrepreneur. (Christian) responsibility of control cost/earning emolument/risk management, down to individuals. local resources and market.Customer-orientation (Christian , to provide live example) Autonomy (elaine, to provide live example from her own company to support this point). 3. What does this tell us about the key sources for success of ANY decentralized business? empowerment/autonomy (control & responsibility down to branch) foster the competition among decentralized units. use KPI to closely oversee the performance of decentralized units. Shared value amongst all branches. systematic support from head office for all units. ( ) 4. What are the challenges that Lars Kahnlund faces in this particular organization, in his efforts to drive change and accelerate growth? alance the culture of autonomy and directive approach. = branch has strong motivation to control its own product and service. = from perspective of entire company, sassy competitive products may be also needed. really hard to control the decentralized unit, because there are so many branches out there and structure is so flat. how would he get his strategy executed effectively a nd efficiently ? how can we keep them in order ? too many culture in different areas, so he needs to take care culture conflicts. resistance from employees is expected. (elaborate on this later, including the perservative culture)