The pros of this acquisition include that it would help ING expand its scale of operations and so compete effectively with other larger banks. Moreover, Oyakank had made significant steps regarding risk management and retail banking hence ING would gain from the former’s expertise in the area. The rate of non-performing loans at Oyakank was very low at 1.5 % compared to the average high rate of 3.5 % set by industry regulators. Additionally, Oyakank had extremely low-risk profile hence the implication that ING would benefit greatly from the techniques used by the former to reduce losses from non-performing loans. However, the problem with the acquisition is that ING would have to take time restructuring regarding HR, IT, Branch design and corporate identities since Oyakank had previously acquired six firms hence creating difficulties in the management of all the divisions.
Strengths and weaknesses of Pinar Abay’s leadership approach to address the challenges facing ING Turkey?
Pinar’s interaction with employees and customers ensured that everyone felt good associating themselves with ING with Pinar going the extra mile of sending personalized and handwritten congratulatory messages to employees. Moreover, Pinar undertook the initiative of personally engaging customers regarding responding to their complaints thereby proving she was a leader who appreciated the role played by customers in making ING successful. Increased communication between departments as advocated for by Pinar was a strength meant to build coordinated efforts such that there was dynamic interdependence among divisions. The power of Pinar's leadership is also evident in the case where she creates the need for respect and appreciation among leaders as key to enhancing effective bonding. In spite of having the knowledge from her education and consultancy practice, Pinar was keen to associate himself with the front line staff as she felt she would gain a lot by sharing and learning from the subordinates. Previously, the situation at ING was one where frontline staff would not mingle with senior executives to the extent that the two parties could not be on the same lift at the same time. Pinar’s leadership approaches also saw transparency and visibility of performance metrics improve since talking with data was her initiative that ensured no one tried to engage in using dishonest performance values. However, the major weakness of her leadership approach is the fact that she failed to identify that financial incentives are good motivations for employees since everyone would want to work for organizations that have attractive remuneration. Incentives are necessary for retaining and attracting unique talents hence indicating that through ING was on the right track initially, its future could be jeopardized by poor compensation of employees.
Would the challenges be different if Pinar Abay were a male?
The challenges would not be different since the issues affecting ING could be solved by either male or female considering the fact that they had the relevant knowledge and skills on how to transform the organization. However, the major difference could be in the form of more willingness by the board to approve the appointment of a male CEO as well as a quick response from employees and leaders at ING to changes proposed by a male CEO.
What is Pinar's strategy for transforming ING? How effective are the change agents? Other programs such as FOCUS, SMART, etc.?
Pinar’s strategy was to replace the low performers with high performers such that everyone would be motivated to work the extra mile to eliminate operational inefficiencies. Having high performance for Pinar meant acquiring employees who were innovative and not only driven by the need for higher remuneration but the obsession to advance their careers and contribute to organizational success. Pinar wanted to improve the communication effectiveness among departments so as to create strong bonds between managers and front line staff. Respect and appreciation for one another were an important principle according to Pinar. Pinar also felt that ING needed to be responsive regarding interacting with customers which pushed her to personally apologizing to customers who set a perfect example for other leaders. Recognition of high performing employees and reliance on data was also a strategy that would see ING maintain trustworthy and dedicated staff. The FOCUS initiative ensured that workers and leaders could not rely on dishonest performance values to assess performance since talking with data was Pinar’s strategy. Also, FOCUS approach created a sufficiently challenging atmosphere such that new and higher targets could be set while everyone worked hard to achieve them. The change agents were highly effective since while at the beginning many employees had issues with the new changes, it did not take long before they realized that the transformation was aimed at advancing their careers.
What HR policies and programs would be helpful to support the strategies for Branch Networks, Direct Channels, and Partnerships?
HR department at ING needs to take steps towards ensuring that everyone identifies themselves with the corporate culture driven by the need to grow by relying on high performers. HR policies are therefore important regarding acquiring competent staff to work at the branches with concern on the ability to serve customers within the shortest time possible. Regarding direct channels, HR programs need to engage the sales team actively in training on technological changes as well as ways through which digital marketing could be improved in the organization. Lastly, HR policies need to focus on helping the company engage with partners keen on creating and sustaining honest and transparent business practices.
Has Pinar accomplished the goals set out in her initial email to her colleagues?
In her e-mail to all employees, Pinar highlighted three objectives which included making ING the most preferred employer, strongly positioning the company by adding value to customers and raising the level of efficiency at the company. True to her objectives, Pinar accomplished the goals since she made employees want to walk the extra mile hence transforming them from low performers to high performers. Pinar also encouraged innovativeness at ING as the best option in creating a high-profile and creative employees capable of responding to needs and expectations of customers. Moreover, Pinar improved the value of customer services by implementing a timely response to customers’ complaints, improving convenience for customers by putting in place mobile banking and partnering with other firms towards improving the overall economy. ING also became the best employer regarding stronger interpersonal relationship and coordinated efforts by all department as well as recognition of achievements by front line staff.
