CASE STUDY
The journey back to the top.
How one of South Africa’s largest banks turned things around.
The cards seemed stacked against Nedbank. Their Headline Earnings were down 98% with a Return on Equity of only 0.4%. As a result, Nedbank was considered the lowest of the top banks in South Africa, who were all on an upwards trajectory compared to Nedbank’s decline. They needed a large insurgence of cash to continue in business. The bank also found itself amid a complicated merger which would require aligning both business and culture.
THE CHALLENGE
It all started with a vision: “To become Southern Africa’s most highly rated and respected bank...by our staff, clients, shareholders, regulators and communities.” However, to be successful, CEO Tom Boardman and Nedbank understood that the vision needed to be supported by a strong strategy and a uniting set of values. The “Journey Back to the Top” was a three-year planning process that sought to address the immediate issues facing Nedbank while establishing measures to track the effectiveness of its initiatives. Comprehensive and integrated work included alignment on core values, breaking down silos by restructuring departments and executives, fostering transparent communication, and developing a fair and equitable environment that went beyond the laws required in South Africa. The impact of efforts was measured annually using BVC Culture Survey as well as an employee satisfaction survey.
THE SOLUTION
The Cultural Entropy score dropped from 25% to 13%
Targets realized: 20% Return on Equity and 55% Cost-to-Income ratio
Highest shareholder return of all the “Big Five” South African banks