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The study aims at understanding the Organizational Culture and its alignment to the key business goals of Fidelity bank, Nigeria. The service provider has emerged out to be as the fastest growing banker in the region. Their key business motive is to provide unified banking solutions to their esteemed customers in a seamless manner.
In order to better align the business motives with the organizational culture, key changes have been suggested as an outcome of the study. In order to arrive at these crucial changes the research has been done by closely analyzing the business parameters such as organization goals, customer needs, current organization hierarchy and other parameters such as socio-cultural parameters.
After implementing the employee and customer centric changes, Fidelity Bank, Nigeria can better align itself to its corporate vision. This will lead to seamless and unparallel communication amongst the internal and external stakeholders in a far better way. The bottom line of the organization too would increase incrementally during the span of time. The apt organizational culture changes would help the banker in emerging out to be as the key player in the financial services arena.
Executive Summary 2
1. Corporate Overview 4
1.1About Fidelity Bank, Nigeria 4
1.2Mission Statement 4
1.4Financial Products 4
1.5Talent Pool 5
1.6Industry Dynamics 6
2.Organizational STRUCTURE 7
2.1Organization Hierarchy Brief 8
3.ANALYSING THE ORGANIZATIONAL CULTURE 9
4.Aligning Organizational Culture with Business Goals 11
5.Key Benefits of realignment 13
6.Organization's Operational Contingency 15
6.1Internal Factors 15
6.2External Factors 16
8.KEY RECOMMENDATIONS: 19
About Fidelity Bank, Nigeria
Fidelity Bank is amongst the top 10 banks in Nigeria. It started its operations in 1988 as a merchant bank and transformed into a commercial bank in 1999. In 2001 it became the universal bank. The banker has 168 branches across all states and regions in Nigeria. Apart from seamless helpdesk support they also provide real time online support to their customers on the go. It is one of the prime bankers in Nigeria and has off shore collaboration with bankers in New Zealand, UK, USA, South Arica and Middle East. It is a listed company in Nigeria and is a blue chip stock in the banking index of the country. The shareholding of the bank is substantial amongst corporate investors and venture capitalists too.
To make financial services easy and accessible. (Fidelity Annual Report)
To be No. 1 in every market we serve and every branded product we offer. (Fidelity Annual Report)
The best in class financial products are offered by the bank to its esteemed customers ranging from savings accounts, current accounts and debt loans etc. The top products which are offered by the banker include:
MBA (Multiple Benefits Account)
Apart from the supreme financial products some of the very best in class services such as top-notch Internet Banking, Mobile Banking, ATM's and other priority banking services to corporate customers. The cutting edge financial products and services have made the banker one of the most respected in its industry segment. Its focus on introducing the best in breed products have insured that they are able to register positive numbers even during the toughest of financial times on the go without any constraints whatsoever. It has a substantial base of corporate, retail and specialized consumers who have been associated with the bank since early days.
Fidelity Bank, Nigeria hires its staff members from the very best of b-schools and graduate colleges. The employee base of the banker is 4,065. A varied mix of organizational culture exists in the bank as it also hires its staff from overseas locations. The new joiners should qualify the ethos the TAC ethos, Talent for possessing the right positive attitude, Ambition of succeeding all odds and a redefining Character to sustain integrity at all times. The employees and members are cultured in a manner so as to keep the customers interest high, keeping in mind the corporate norms and principles of the banker.
The financial services industry segment in which Fidelity bank operates is hyper competitive. The cut throat competition amongst the competitors on base interest rates and cheaper servicing cost can erode the bottom line of the banking service providers. The industry is driven with volume base as the margins are getting lowered by the day. The bankers can gain more by introducing newer products and services such as Dematerialized share trading, Commodities trading, Custom Insurance etc apart from the conventional banking and account keeping services. The success of products and services largely depends if the organization hierarchy is aligned as per the pulse of the market.
ED - Executive Director
IT - Information Technology
BPA - Business Process Automation
CEO - Chief Executive Officer
HR - Human Resource
GM - General Manager
Board of Directors
ED, Business Banking
ED, INVESTMENT BANKING
ED, SHARED SERVICES
ED, RISK MANAGEMENT
GM Corporate Banking
GM Public Sector
GM Risk Management
GM Shared Services
Head - Corporate Solutions
Head - Marketing
Head - Compliance
Head - IT & BPA
Head - Strategy
Head - Credit Risk
Head - Treasury
Head - Public Sector Operations
Organization Hierarchy Brief
Fidelity Bank operates in a streamlined organization structure and draws its governance from the Board of Directors. The information is then passed on to CEO followed by the executive directors. General Managers then draw their KPI's from the Executive Directors and pass it on to the head of departments. The sales agenda, acquiring new business and other strategy for business continuity is then implemented by field specialists and workers. This helps the bank to adapt to the environment and shows the strength of the organizational culture of Fidelity.
ANALYSING THE ORGANIZATIONAL CULTURE
The current organizational culture at Fidelity is a strong one which gives the employees a sense of identity and makes them adaptable to the environment. We have an open and inclusive culture that encourages contribution and enables everyone to fulfill his or her true potential. (Fidelity, 2010)
While it is noted that the organizational culture is defined by the executive directors and leaders of Fidelity, the entire workforce is adding to the organizational culture in a contributive behavior. The employees follow the core values of the banks organizational culture which in turn translates into success and profits for the bank. Fidelity maintains a strong organizational culture by providing training and career development to its employees who will help them to develop and progress.
The current culture is driven through CREST values which are Customer First, Respect, Excellence, Shared Ambition and Tenacity. The competitiveness and meritocracy in treating customers well and in gaining the market share are the primary motives amongst the employees. The formal organization culture helps the business promoters in providing a healthy environment at the work place.
The organizational culture has apt depth in terms of work segregation however; the information flow in such a competitive industry segment must be smooth and crisp. To ensure this the apt IT and Business Process Automation support enables to ensure that information is readily accessed by internal stakeholders on the go.
The overall organizational culture of Fidelity Bank, Nigeria fits in all necessary support for the products and services that they are offering to their consumers. However, room for improvement exists for the banker for it to better align itself with the market needs and wants. These will help the banker in gaining from market possibilities too. Various compliance related issues and reporting is maintained on daily basis and shared with apt stakeholders in the organizational culture.
Aligning Organizational Culture with Business Goals
Since it is very difficult to change the culture of an organization entirely, the better thing for an organization is to align its organizational culture according to its business goals and strategies. The financial service industry is dynamic in nature as the corporate compliance changes, frequent legal and political changes too have to be incorporated into the banking. Therefore, even the minor change can leave a serious impact on the bottom line of the bank. Fidelity bank, Nigeria wishes to occupy No. 1 spot in the products and market they serve. For this it is suggested that the bank improves its culture to spearhead in the industry segment and align itself to its goals. Apart from concentrating on culture changes, rigorous training is also essential to bring internal stakeholders (employees) and external stakeholders (customers) up to speed. In order to achieve the set out vision objectives the board members should think out of the box and align their current set up as per the need of the hour.
Therefore, in order to align the organization culture in a better way with the organization goals the most important thing would be that senior management should support the cultural change so that others will follow them. They can do this by changing their behavior according to the goals of the bank, once they change their behavior according to the cultural change needed others will follow. One of the most important things is that senior executives constantly support the arrangement. Another thing which will help in changing the culture according to goals is training of the human resources so that they understand how exactly they are expected to perform. Apart from this effective communication amongst the work force is also very important for constructive cultural change to effectively take place. This will ensure success and commitment from the employees and they will work towards a common purpose. Another major achievement would be reviewing the organizational structure as suggested. This will lead to a stronger organizational culture which is the main aim if the goals are to be achieved lucratively.
Key Benefits of realignment
Realigning the organization culture will lead to better communication at the bank which in turn will increase performance and profitability of Fidelity. Their culture would be streamlined to meet the corporate business mission and vision on the go. Some of the key benefits that the organization would realize are as follows:
The organization will be able to deliver high quality of products and services to their customers. The new competitive organization culture will inculcate the positive attitude in the employees as they march towards making their organization as a productive entity on the go in a flawless manner.
The overall cost of running the business would come down too. This would be achieved by outsourcing the compliance division to third party auditors. Also, IT led automation will ensure that the information 'acts as one'.
The resources too would be rightly sourced by the HR department as all the functional departments such as Marketing, Finance, Credit Risk., Corporate banking and Public Sector Banking etc would be closely sharing their staff requirement information from time and again depending upon their expansion strategies.
The organization would become a highly respected service provider with the launch of finest facilities such as TV banking which would allow the customers in trading on their bank account with the simple remote control based commands. These would eventually grow the customer base for the banker. These would ensure that the banker captures the Number 1 spot on the go.
For building a stronger organizational culture, the incorporation of training division will empower the internal stakeholders in understanding their own services and product changes in depth. By training them according to the business goals a strong organizational culture can be developed in the bank. They would be able to get things First Time Right (FTR) while interacting with the customers. This would enhance the customer satisfaction levels on the go without any constraints whatsoever. They can better understand their needs and propose products or services based on the socio-cultural factors too. The entire organization culture would light up with positivity all around. It is imperative that the financial services providers become process oriented in order to streamline their business operations at all times without any constraints whatsoever. Employees would be exposed to newer training strategies and financial products.
Organization's Operational Contingency
The contingent and dynamic environment rules the financial arena. Fidelity Bank, Nigeria is primarily governed by external and internal factors which affect their line of business services and product launches. The business leaders should adhere to these cultural norms and factors while trying to gain more pie in the competitive market space.
The internal stakeholders primarily the employees, board of directors and CEO comprise of internal factors in the organizations culture. They should act in tandem and ensure their business objectives are aligned to their mission. Some of the key internal contingent factors are as follows:
CEO - The guidance and the strategy of implementing newer services or products should follow from the CEO. He or she should ensure that reviews with GM and heads are conducted timely. The clear retrospective and key deliverables should be defined by the CEO in order to audit those internally.
Marketing - In order to ascertain that Fidelity Bank is able to penetrate newer markets, introduce cutting edge financial products and gain more market share the marketing team should act proactively. They should be involved with all other core functions of the organization such as Risk Management, Corporate Banking and Public Sector Banking etc. Also in order to showcase the image of the banker as the best in class employer of its own kind, the HR related campaigns too should be launched from time and again.
Core Functions - Risk Management, Treasury, Corporate Banking and Public Sector Banking etc. are the core functions for Fidelity Bank, Nigeria. The division should ensure to comply with the political, social and cultural requirements while trying to implement the products or services in the market. They should ensure that the back ground checks are conducted in entirety and also the documentation pertaining to the identification of the customers and their address proof etc. are in order. It is imperative that the core committee and members stay interested in the trainings and newer strategies at all times. This can provide an all new way for the organization to align itself with the business goals at all times in a flawless manner on the go.
The external factors are even more challenging for Fidelity Bank. They have to channelize their efforts in an effective manner when compared to their competitors. In order to better understand the external factors in detail, following points are worth noting:
Socio-Cultural Impact - The banker operates in Nigeria which is a developing nation and is marked with unique cultural traits. The focus of a retail buyer is more towards trustworthiness and a joint family oriented culture exists amongst the nationals. The awareness campaigns and ads should keep the aspect in mind while trying to pitch for newer products or services in the market. The more closer the bank gets to the heart share and mind share of their customers through socio-cultural ties the better would be their chances of making an impact in the market.
Economic Policies - Financial sector is pretty vulnerable to the changing economic policies. The repo rate, CRR (Cash reserve ratio) and other financial imperatives keep changing from time and again. Fidelity Bank, Nigeria should not rely too much on their existing policies and should be willing to adapt faster as the environment all around changes.
Political Environment - The emergence of a new power in the Political arena can be seen in a positive or negative way by the people and other external factors such as international agencies. Some of the investors might withdraw their investments from the bank in case an ill policy maker comes into power. The bank should introduce newer services and products in order to deal with all such uncertainties. The organization should be become mature and ensure that their line of business stays intact even when there are structural changes taking place in the political scenario of the country.
Market Risk Â- As per AllAfrica.com's report the per capita income of Nigeria is $2,748. There lies immense potential for the Bank to introduce newer services such as Mutual Funds, Insurance Products and other Micro financing projects to boost their sales numbers in the competitive market space. The margins in the industry are going down therefore; the bank will have to play on the higher number of volumes. Best in class services can ensure that the customers stay interested in the product lines and services at all times.
Fidelity Bank, Nigeria has been growing at a steady rate in the product and services landscape that it has launched for its consumer base. However, in order to ensure that it is able to spearhead the competition the bank needs to incorporate suggested organization level cultural and structural changes.
With sustained positive attitudes amongst the employees the growth oriented organization culture can be instilled. The bank will be able to delight its internal stakeholders and external customers with its best in class culture, apt structure and the zeal to provide only the best products.
Powered with innovative products, newer territories and trained staff the bank can become the Number 1 service provider in its segment, hence realizing its vision goal in seamless manner.
The best in class cultural change measures will ensure that the overall competitiveness of the organization stays in order even during the toughest of financial or economic times. The delighted employees and external stakeholders can work closely with each other on the go. The organizational culture alignment changes along with structural changes should ideally be implemented in one big bang approach in order to avoid the ripple effect on the go.
Evolve IT systems and spin off a separate division for managing the IT governance. The risk factors can be automated and cycle time can be reduced in a seamless manner. As per Capgemini's report on World Retail Banking Report - the growing banks biggest challenge remains on how to introduce innovative products leveraging from IT's power. Some of the innovative initiatives such as TV banking systems and iPhone or iPad centric banking applications can create interest amongst consumers on the go. These smarter initiatives can help in boosting sales numbers and ensure the top position for the banker too in a seamless manner.
It is imperative that the employees of Fidelity Bank, Nigeria understand the pulse of their customers in order to serve them in a better manner. At the same time they should be well versed with the recent financial regulation change and the socio-cultural implications. Therefore, a dedicated training department should work closely with the HR team. They should keep in mind the changes and research their products and services. The ready to utilize training material should be published to internal stakeholders and distributed amongst the customers too.
The leaders in financial arena are not only innovative but are also leveraging from modern communication streams to educate their consumers. The strategy division should work closely with Board of Directors. There should be monthly reviews with BOD in order to share their thoughts and inputs on the key strategic initiatives that can be planned to up the ante for the banker in the market.
The marketing division should also be created as separate dedicated department with specialized executive director. The vision of the organization is to become a No.1 service provider in the products they offer to their consumer base. In order to accomplish this, rigorous marketing campaigns to cross sell similar products to the customers should be high on agenda. In fact IT and marketing or sales departments can work closely and launch sales campaigns. They can measure the hit ratio of their initiatives vis-à-vis provisioning of services from the customers. At present there seems to be silos as marketing is communicating with the shared services. In an ideal situation marketing should take proactive measures to ensure that they are able to react as per the business needs of product needs. For instance, considering that there is a high potential in the Insurance stream, the insurance related campaigns should be launched more than other services.
Fidelity Bank, Nigeria has been providing cutting edge integrated banking solutions to one and all. They operate in a volume driven industry where new products should be launched quiet often so that the top line and bottom line grow at a steady pace if not exponentially. Therefore, incorporating a Market Research division under CEO's close observation can help them in gaining from the market driven possibilities and newer product or services launch in an effective manner.
In order to adhere to the compliance the Audits and financial compliance division can be outsourced to third party financial auditors such as Deloitte, KPMG or Ernst &Young etc. Bank can concentrate on their core services and innovation while the seamless auditing or financial compliance can well be managed by third party financial advisors. This will help the organization in right sizing itself by eliminating the division from internal hierarchy on the go. The leaders in banking and financial industry space have already gained endlessly from the professional and timely services.
It is imperative that the clear communication and information should flow from top to bottom and vice-versa too in order to provide healthy culture of feedback mechanism amongst the employees. Employees should be empowered for sharing their thoughts.
HR division should look to introduce 360 degree of appraisal mechanism in which both subordinates and peers can get to share their feedbacks for the individual. This can improve transparency amongst the employees too.