This case study has been prepared to outline areas in need of organizational change required by the National Australia Bank. Major areas identified included, organizational culture, organizational structure and an organizational need to refocus on core competencies, in order to compete in a more streamlined, effective and efficient manor. The organization, in recent times, has faced much public scrutiny in regards to the way in which the organization has been governed.
This was as a result of the HomeSide debacle, foreign exchange scandal and the sale of strategic key interests of the organization which the NAB held. The result of such debacles, scandals and fire sales has resulted in the resignation of long-term CEO Mr. Frank Cicutto and the arrival of new CEO Mr. John Stewart, leaving both the Board of Directors and the organization in disarray. Recommendations for the organization include: a continued focus on organizational development; total board support for Mr.
John Stewart; accelerated cultural redevelopment; and possible restructuring and downsizing. The successful implementations of such recommendations should result in a more effective and efficient National Australia Bank. The National Australia Bank (NAB) was established in 1858 as the National Bank of Australasia. 1 The organisation, as of September 30th, 2003, had total assets of over $397 billion and more than 7. 8 million banking customers.
2 The markets served by the NAB include: Australia; New Zealand; The United Kingdom; Ireland; and Asia. The NAB grew quickly as an organisation, mostly as a result of mergers and acquisitions, and was identified as “one of the more prudent banking institutions in the country,”3 and by 1955 the organisation had acquired four of it’s largest competitors (the Colonial Bank of Australasia in 1918, the Bank of Queensland in 1922, the Queensland National Bank in 1948 and the Ballarat Banking Company in 1955).
1981 saw a merger with the Commercial Banking Company of Sydney, followed by acquisitions in the United Kingdom of the Clydesdale Bank, the Northern Bank, the National Irish Bank and the Yorkshire Bank, throughout the late eighties to the early nineties, as well as the acquisition of the Bank of New Zealand in 1992 and Homeside Bank in the U. S in 1995. 4 This galvanised the National Australia Bank as one of Australia’s and the World’s most successful banking organisations.
Providing for retail; business and agribusiness. The financial services sector is one of the largest areas of the NAB’s business, offering services to over 3. 4 million customers and retaining over 17,000 full-time employees. 5 The NAB’s financial services sector has more than 20 integrated financial service centres, 192 business banking centres, 109 agribusiness locations, 790 branches, over 3000 Australia post outlets, 1700 Automatic Teller Machines and countless EFTPOS terminals at locations across Australia.
6The wealth management sector of NAB was formed when the bank acquired the MLC in June 2000. The Wealth management sector provides financial planning, investments, private banking, insurance and superannuation to retail and corporate customers. The wealth management sectors deals with over 2. 8 million customers, and manages over $64 billion.