Business Conditions Maybank Faced Before the Transformation
A wide variety of financial and banking operations are provided by Malaysian banks, several of which are the biggest in Asian Countries. Regarding overall assets and stock capitalization, Maybank is the biggest bank in the nation. With a prosperous 48-year existence, Maybank prepared for transformation in 2008 through human resource management (“Maybank,” n.d.). Maybank offers various financial services and products through its vast office network, which spans several Asian countries and significant banking hubs. Prior to the change that started in 2008, Maybank dealt with a variety of business challenges. A two-phase restructuring strategy for Maybank and the human resource operation was begun by the company’s chief human capital executive and colleagues, and it will last from 2008 to 2015 (“Maybank,” n.d.). The goal of the makeover was to restore Maybank’s greatness because, despite its longevity, its performance was declining.
Analyzing Maybank’s SWOT before the transformation will help understand the business conditions the bank experienced. One of Maybank’s strengths is that it dominates the regional banking market and has the most branches overall in Malaysia. Additionally, Maybank had several worldwide offices and branches, contributing to its popularity (“Maybank,” n.d.). Maybank’s main weakness was that it had been recording falling development in the previous years before 2008. Prior to the change, Maybank had the opportunity to gain more customers via its various overseas branches. The 2008 economic downturn was among the threats Maybank encountered, and it cost them money due to mortgage defaults (“Maybank,” n.d.). The global financial crisis had negatively damaged numerous international banks, and there was a general lack of faith in the banking industry’s capacity for expansion.
Stakeholder Impact Prior to and During the Transformation
Stakeholders include anyone interested in the organization, from employees to devoted consumers to investors, and they provide the business with both practical and monetary assistance. The Maybank stakeholders increased the number of people committed to the company’s success, reducing management’s sense of isolation in their entrepreneurial endeavors. The employees needed Maybank to transform into a firm focused on execution and talent. Maybank used an improved version of the comprehensive and systematic people management approach during the 2009 transition (“Maybank,” n.d.). This framework sought to consistently recruit, nurture, and retain the best talent to ensure the resilience of Maybank’s skilled workforce.
The customers expected the administration to maintain Maybank’s reputation as Malaysia’s unquestioned financial services leader. Since Maybank understood how vital culture and individuals were daily aspects of living, all of its people-related efforts were based on its Five People Pillars (“Maybank,” n.d.). The administration implemented people and performance-centered programs to keep Maybank’s standing in Malaysia. These People Pillars aligned with Maybank’s objective to humanize financial operations, which drew customers closer and increased their value.
The investors required the bank to strengthen its regional footprint while still looking for chances in other profitable growing markets in the area. The LEAP30 initiative (Lead, Execute, Achieve, Progress) established a new framework that promoted expanded international collaboration to boost cross-selling and professional packaging of goods to clients (“Maybank,” n.d.). Maybank’s regional reach was expanded by LEAP30, raising investors’ value. The expectations would significantly aid the management’s ability to plan for the bank’s transition. Stakeholders’ role should be openly acknowledged and banks policies should work to protect and advance them.
Business Case for the Transformation at Maybank
The organization can endure and prosper if management responds to changing market demands, pursues new innovation-driven alternatives, and successfully negotiates evolving regulatory constraints. To transition from a formidable localized bank to an international player, Maybank had to transform. Maybank needed to modernize its offerings to draw in consumers, empower staff, and improve operations. Before the change, in 2008, Maybank commemorated 48 years of a successful business (“Maybank,” n.d.). The bank, however, was consistently recording a drop in growth. Furthermore, the global financial crisis, which had severely harmed many worldwide banks, was one external disaster that had a crucial influence on the transformation. The underdeveloped but rapidly expanding Indonesian banking market allowed Maybank to develop, which led to the change (“Maybank,” n.d.). Maybank could collaborate with the region’s sizable Muslim population by entering the Indonesian market.
Summary
In conclusion, transform businesses make significant adjustments to their staffing, operational procedures, and technological infrastructure. Organizations that undergo these changes are better able to compete, become increasingly productive, and ultimately change their strategic direction. Before the change, Maybank’s strengths were its domination of the Malaysian banking sector, and its weaknesses were its diminishing growth rates. The opportunity for Maybank was to increase its customer base through its numerous foreign branches, while the most significant threat was the 2008 financial crisis. Its stakeholders expected the bank to maintain its dominance in Malaysia, expand its regional influence, and develop into a firm that places a premium on talent and efficiency. Numerous stakeholders benefited from the talent transformation technique and saw a rise in value. The transformation at Maybank was necessary since the organization needed to optimize its services to increase the number of customers.
Reference
Maybank: Organizational transformation through human resources. (n.d.).