Page 196 - DMGT520_ORGANIZATION_CHANGE_AND_DEVELOPMENT

Unit 14: Future Trends in Organization Development

Notes
Strategic property management is another key issue. Banks became over time, because of
their branch networks, big players in property markets particularly in developed markets
or in developing markets where property prices rise rapidly. What has happened now, in
certain countries, is that there are restrictions on branching. Banks are no longer able to
play on those property markets and funding alternatives such as property funds, so that
we can have the same benefit that we have had through the development of Hong Kong or
Thailand or Singapore. In places where they are restricted, like in China and India, this is
going to be another issue that we’ll have to face.
HR, Marketing and Other Strategic Issues
Developing Human Capital: Core values underpin the corporate culture; putting the team
interest ahead of the individual, not being highly bound by bureaucracy, trying to drive
speed of decision making, integrity that’s absolutely critical to any leadership role than
anybody ever takes, and we can stress that very strongly. Our group talent pool now has
at least 20 different nationalities. It was actually found around 20 people who had not
declared their nationalities. But we have got 20 different nationalities and only 30% of that
was the old guard clad in iron armor – without the 68% - and this 30% come from the UK.
So you see how diverse we have started to become. It’s ‘trying mirror’ for our businesses.
Developing Human Capital
 Core values underpin corporate culture

 Putting the team’s interests ahead of individuals
 Individual accountability, aversion to committees and bureaucracy
 Speed of decision making
 Integrity

 Reputation
 Group Talent Pool – 20 different nationalities (only 30% from UK)
We try and get the best people in the most important jobs, and Sir John is on record as
saying that we won’t have anybody in the top 40 managers in the group who doesn’t have
some international experience, that is, experience beyond his/her home country. This is
again a sort of promoting (the policy) that people must take roles that give them
international exposure.
Just a word on marketing: It can be said that global marketing is a fallacy that marketing
is very much a local issue. Although there are some benefits from an overarching marketing
campaign, we very much believe that that’s an overarching marketing campaign and that
local entities are free to use that campaign and interpret it in a local way. This is critical to
the success of our marketing initiatives.
Well, that’s how Sir John looks at the world. And this is a story of headquarters, emotional
intelligence quotient and organization (intelligence) quotient. In our world, headquarters
are responsible for overall strategy; it sets out the group values, it allocates capital, allocates
human capital and it facilitates the transfer of best practice. It controls risk at the very
highest level, allocates capital and decides whether we have got enough risks for the
Government of India or one of the large corporate borrowers, Government of China or
whatever.

It establishes the global brand position but allows local marketing, and it sets our quite
importantly the corporate and social responsibility umbrella, which is about education
Contd...

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