Topic: The Hongkong and Shanghai Banking Corporation (HSBC): managing for change The Hongkong and Shanghai Banking Corporation (HSBC), also known as ‘the world’s local bank’, was established in 1865. The HSBC group. headquartered in London. conducts business internationally. networking through its 9500 offices worldwide to serve a customer base of approximately 100 million. It is one of the largest global banking institutions, offering a range of products and services in the financial sector.
Since the mid-1990s. HSBC has undergone significant change driven by a diverse range of factors including economic recession, government instability, fluctuating market trends and new technologies. As the Bank grew horizontally into different continents, such changes became a constant part of HSBC.
In 1998 HSBC devised a five-year strategy called ‘Managing for Value’ (MFV) to fully exploit global markets and exceed shareholder value in comparison to its peers. The bank aimed at increasing its customer base and realigning its value proposition offered to customers by undertaking measures such as cost reduction, process automation, improved service delivery and enhanced employee engagement with the customer. To measure the effectiveness of this strategy, HSBC recruited leading change consultants to conduct organisation-wide socio-psychological studies and assessments. Overall the findings indicated that employees had a negative attitude towards these changes, failed to understand the key elements of the MFV strategy, and some employees had difficulty in identifying and engaging with the organisational culture of HSBC. To reinforce the MFV strategy amongst employees, HSBC developed a four-step model that included addressing staff attitudes, highlighting the importance of MFV in their daily work, employee education on company progress in implementing key initiatives, and motivating employees to provide feedback, participate in change, see its importance and take ownership.
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