Abu Dhabi Case Study

docx

School

Yale University *

*We aren’t endorsed by this school

Course

873

Subject

Management

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by fkfaithkimeu

1 Abu Dhabi Case Study Name Course Institution Date

2 Challenges faced by the new CEO in 2008 Abu Dhabi Commercial Bank's new CEO faced a number of challenges that put the existence of the bank at risk. During this time, the financial crisis was threatening all financial institutions worldwide and the ADCB was not an exception. Some of the challenges experienced include decreased profits, a balance sheet that was considered negative, and a very risky assets exposure, especially considering the bank strategy that was based on rapid growth and a loan book that was considered expansive at the time. The Gulf region had an economic boom which was as a result of increased revenues in oil, which had resulted in contraction thus leading to disadvantaged financial institutions. ADCB shares were downgraded by analysts, the balance sheet was mentioned to be overstretched and the value of the shares dropped (Gebba, 2015). In addition, confidence was a crisis in the whole global financial system and therefore ADCB was not an exempted institution. The new CEO therefore had to manage these issues while keeping in mind the uncertainty of the crisis at hand as well as raising the expectations of regulators, shareholders, and employees of the bank. Therefore, the new CEO had to adapt to economic circumstances that were rapidly changing and to ensure the stability and survival of the bank in the face of uncertainty Response to challenges Ala’a Eraiqat, the new CEO of ADCB responded to the 2008 challenges with a determined and yet multifaceted approach that saw the survival of the ADCB. Below are some of his key strategies and actions that were used: A policy whereby transparency was ideal was initiated by the new CEO. He therefore made sure all his employees were aware of the global financial crisis and the turnaround efforts which were hard-won successes. The new CEO believed that in order to gain the entire organization’s support, elevating a culture of openness was ideal to curb the crisis.

3 In order to reassure his employees and keep the skilled personnel whom the bank has invested in over the years, Eraigat and the management assured the employees that he or the management would not be firing anyone during the crisis. A sense of security was felt by the employees due to this commitment and therefore gave employees morale to focus on individual performance. Throughout the organization, a culture whereby management of risks and cost-consciousness was instilled. The organization’s management emphasized to the employees to spend the organization's money as if it were their own money coming from their hard-earned efforts (Gebba, 2015). The top management introduced an initiative that was focused on improving operations, cutting costs, and the search for new sources of deposits. This effort was aimed at liquidity improvements and the bank’s financial stability enhancement. The new CEO introduced a strong corporate governance that was strong and framework that reinforced the relationship between management and the board of directors. Therefore, the emphasis on governance in the bank’s ongoing recovery was pivotal. Therefore, it is worth noting that the new CEO's response showed his strong leadership skills, a people focus, and a commitment that was focused on transforming the culture of ADCB, operations, and directional strategy in times of uncertain challenges. Culture’s role Culture was pivotal in the turnaround of Abu Dhabi Commercial Bank in many ways. Some of these have been highlighted below: The new strategic direction of the bank needed to align with the culture as recognized by the new CEO and the top management. Therefore, the shift from expansion considered rapid to responsible management of risks and stability required a transformation of culture. The commitment of the organization to the shift of culture was important to ensure the inclusivity of everyone and that all agree on the same thing regarding the bank’s new values and goals (Gebba, 2015).

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 In order to achieve the new set of goals and values, the top management made sure that all employees including themselves to front-line staff agreed and bought into the new culture and strategy. This strategy, therefore, ensured that everyone involved with the bank worked towards an objective considered common and willing to adapt to changes that would ensure the bank’s survival. A culture where openness and trust were pivotal in the adversity faced. Honest and open communication from the top management helped build trust among employees. The approach used “hands on deck” with all employees aware of the new goals and values, ensuring a sense of collective responsibility. Engagement of employees: The approach used that was participative in solving problems and improvement ensured the engagement of employees from all levels of the organization. It motivated them to contribute by giving ideas and feedback, hence making them feel a sense of personal investment in the bank’s success. This led to increased dedication and commitment from employees. The organization’s culture which, therefore, valued adaptability and resilience was vital in a rapidly changing economic environment. The ability to unlearn unfamiliar practices and accept new ways of doing things was encouraged by a culture that embraced flexibility and learning. The introduction of a new culture was not a strategy that was just to be used in fighting the crisis but also a culture that could be invested in the long-term success of the organization. The people focus, training, and human resources development were visioned as a long-term investment in the future of the bank (Gebba, 2015).

5 Reference Gebba, T. R. (2015). Corporate governance mechanisms adopted by UAE national commercial banks. Journal of Applied Finance and Banking , 5 (5), 23.

Related Documents

4 Managing Diversity in the Workplace Challenges and Opportunities.docx

Apple Inc.docx

GM505 DISS 6.docx

zuy2.docx

flight_attendant_annonated_bib.doc

usinga.edited.edited.docx

AG-1-Updated-2.docx

Organizational Innovation.doc

BSBFIN601 Self Study Guide.docx

Adaptive Leadership Questionnaire.docx

Contingency Plan 1.docx

How do you think clothing choices affect the relationships we form.odt

Recommended textbooks for you

Foundations of Business (MindTap Course List)

Marketing

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

Foundations of Business - Standalone book (MindTa...

Marketing

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

Principles of Management

Management

ISBN:9780998625768

Author:OpenStax

Publisher:OpenStax College

Marketing

ISBN:9780357033791

Author:Pride, William M

Publisher:South Western Educational Publishing

SEE MORE TEXTBOOKS

Recommended textbooks for you

Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing