Clients One of the major national banks, 100 percent owned by the Korean Government

Change Event

Corporate restructuring required due to inadequate financial performance arising from the Asian economic downturn and a high-risk loan portfolio. Previous failed attempts to successfully improve the bank's position, including the sale to another bank aborted at the eleventh hour, resulted in internal and external uncertainty over the future viability of the bank.

Workforce Issues

• The bank lacked leadership (CEO position vacant for over a year), and as a result, strategy and direction
• A strong industry-based labor union presented some barriers to potential realignment strategies
• Employees were demoralized due to raised and dashed expectations over the previous few years, as well as repeated downsizings

Collaboration and Partnership

Hewitt consultants worked closely with the board to identify organizational needs, including a new CEO capable of leading the company out of its predicament. We also worked with other outside consultants on the business realignment and organizational redesign, as well as with internal human resources management and the labor union.

Main Areas of Consulting Coverage and Expertise

Based on meticulous research and client input, a plan prioritizing action items and needs ensured the design of:

• New Human Resource strategies, organization and systems, placing a greater focus on the need to enhance people capabilities, focuses and performance, BUT avoiding conflict with the union
• The organization design, e.g. delayering and refocusing
• Clarity around the role and capabilities of line managers
• Open and realistic ongoing communication across the organization

Consistent Delivery of Superior Results

A new energetic and credible leadership was installed. The top-heavy nature of the organization was addressed, resulting in a significant reduction in the number of managers at certain levels, coupled with a significant improvement in quality. The new HR system defined the responsibilities of the HR strategy and services. More significantly, potentially damaging confrontation with the labor union was avoided.