Nedbank: Transformational Leadership in Sustainable Turnaround

In 2013, the chief executive officer of South Africa’s fourth largest bank, the Nedbank Group Limited, is considering the past and future of his organization. The company is in the process of transformation from a low point in 2003 of poor staff morale and falling share prices, with the threat of losing its licence because of poor capital liquidity, to the best bank in Africa, winning praise for its efforts in environmental sustainability and promoting the post-Apartheid government’s broad-based black economic empowerment policy. Through acquisitions and joint ventures, the company is expanding into neighbouring countries with the result that, after a period of retrenchment, the number of branches and staff has grown. Clearly, his and his predecessor’s clear vision, measurement and focus on culture have enabled the turnaround and subsequent organizational transformation. Yet, in the midst of the global financial crisis, the company is facing increasing competition not only from other banks throughout Africa but from telecommunications companies and retailers that operate financial services. The question now is: Can these transformation efforts be sustained?

The case can be used in undergraduate or masters business administration programs in courses on organizational development, leadership, change management, organization performance, transformation, human resources management, sustainability and turnaround management. Its objectives are:<ul><li>To explore how a large organization that faces internal problems — poor staff morale, declining share prices, inability to effectively diversify and expand — and external issues —the global financial crisis, increasing competition and political and regulatory demands — can transform its culture and become a leader in its industry.</li><li>To illustrate the impact of transformational leadership, transferred from one generation of leaders to the next, on a turnaround challenge.</li><li>To focus on the sustainability of transformation efforts.</li></ul>

• Transformational leadership
• turnaround
• organizational culture
• management succession
• South Africa