Andrew Haydon

Chief Consulting Officer

PH Consultants Pvt. Ltd.
646 Tunnel Lane
Port Chester, NY 10573.

Oct. 20, 2019

Ross Abernathy
Chief Executive Officer
Frontier National Bank
280 Washington Street
Hudson MA 1749.

Subject: Decision report on Frontier National Bank

Dear Mr. Abernathy,

Hope this letter finds you in the pink of health. First of all, I would like to extend my gratitude for
giving us the opportunity to work with you and your esteemed organization. We have been
working with various banks day in and out but it was a delight to know more about one of the
oldest banks in the country.
We, at PH consultants, did enormous research and analyzed the prevailing financial and internal
situation in the erstwhile most profitable bank in the country. To reach at the best possible solution
which is purpose fit as well as future ready, we generated all the probable options and evaluated
them against every single parameter. Details of the same are enclosed with this letter.
I hope that the given solution, after implementation not only unleash the potentials of the bank but
also take it to new heights. It was nice meeting with you and your team and also a new learning
experience for us. Looking forward to serve your organization again in near future.

Yours sincerely,

(Andrew Haydon)

Enclosure: Decision report on Frontier National Bank

Our business is to grow your business

Executive Summary:
Frontier National Bank, used to be the region’s biggest and most profitable bank is nowfacing a
bundle of serious issues. Not only it is passing through times of declining profitability and low
liquidity but also the current morale of the employees is down which in turn is affecting the bank’s
performance. The bank has slipped to third place in assets in its region, and to sixth place in profits.
To get out of the current crisis situation and expand the bank’s operations in other areas, a core
team needs to be formulated. To prepare this team, four options are available to the bank:

1. Formulate a team out of the current employees.

2. Recruit a core team from Chicago bank.
3. Recruit a core team of professionals with proven capabilities.
4. Formulate a team of current employees and professionals from Chicago bank.

To find the best possible solution among the available options, we have analyzed the each one
against the following key decision criterion:

1. Competency
2. Trustworthiness
3. Dynamism

After thorough analysis and careful evaluation, we recommend formulating a team of current
employees and professionals from Chicago bank, option 4. We believe this action would not only
turnaround the bank’s performance but also take the Frontier National Bank to the top position.

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 Table of Contents:

Executive Summary
S.No. Content Page no.
i.Situation Analysis…………………………………………………………………………………………………………….3
ii.Problem Statement…………………………………………………………………………………………………………4
iii.Decision criteria……………………………………………………………………………………………………………...4
iv.Generating options………………………………………………………………………………………………………….4
v.Evaluating the options…………………………………………………………………………………………………….5
vi.Recommendation……………………………………………………………………………………………………………6
vii.Action plan……………………………………………………………………………………………………………………. 6
viii.Contingency plan……………………………………………………………………………………………………………7
ix.Exhibits…………………………………………………………………………………………………………………………. 8

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Situation Analysis:
Frontier National bank is one of the oldest and biggest banks of the country. Despite the falling
market share it has $7 billion worth of assets, still a very big bank. No matter the bank has slipped
to third place in assets in its region, and to sixth place in profits, it still enjoys the good reputation
and credibility with the customers. Until now, the bank was still headed by the member of the
founding family albeit they no longer held any stock worth speaking of. After having disagreement
between the headman and the board over the top position succession, now the bank is facing the
risk of getting merged with one of its younger, more dynamic, and better-managed competitors.
It is very clear that the current atmosphere at Frontier National Bank shows the lack of vision,
direction and motivation which has resulted in making the employees who are competent enough
dispirited and demoralized. Over a period of time, the working environment within the
organization has become excessively conventional and unimaginative resulting in regular fall in
market share and profitability. If the current situation prevails then the bank would lose its
reputation and credibility amongst the loyal customers also which it gained over a period of time
with sheer hard work and dedication. Conservatism, continued business with traditional customers
and large workforce substantially contributed to this situation to arise.
Employees are competent but lack of enthusiasm, dynamism and motivation. Frontier, unlike most
other large banks, do not retire senior people till they are seventy and, in some cases, continue
them until seventy-two.Much to dismay, the younger people serving under the old-timers did not
seem to be any different. If anything, they are even more dispirited, even more convinced that
“performance” meant taking care of whatever the office boy put into the in-basket and that
banking is primarily a matter of belonging to the right country clubs.
The financial condition of the bank, no doubt is eroding but it still has a vast pool of assets,
competent employees, good reputation, loyal customers and old and close ties with leading banks
abroad.It has lacked behind the competitors in terms of expanding its markets in particularly large
corporate business, the pension fund business and the international business. The situation is not
very good yet recoverable.
To come out of this situation, organization needs a plan through which it can regain its lost glory
and the top position. The foremost ingredient for a company to prosper is the potency and spirit of
its employees. An enthusiastic team needs to be formulated to steer the bank out of this turbulent
situation with innovative thinking and modern approach.

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Problem Statement:
A decision has to be taken regarding whom to select as the members of the new core team
considering the financial position, moral state of employee and commitment of the options
available.
Decision criteria:
1. Competence: This is one of the most important decisive criteria as the employee’s technical and
managerial competence will be directly reflected in the outcome. Not only they should be technical
competent but also possess managerial and leadership qualities. The more they are competent, the
better are the results.
2. Trustworthiness: No company or an organization can prosper if there is trust deficit between
the management and the team or within the team/s. Employee should be trustworthy so that the
organization can rely on him/her for timely completion of the important assignments.
3. Dynamism: In the era of changing technological and ecological environment, an employee
should be energetic and adaptable to change. They should be open to new challenges and ready to
learn and adapt to the changing scenarios.

Generating options:

Four options are available to the bank:

1. Formulate a team out of the current employees.
2. Recruit a core team from Chicago bank.
3. Recruit a core team of professionals with proven capabilities.
4. Formulate a team of current employees and professionals from Chicago bank.

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Evaluation of the options:
Option 1: A team out of current employees.
Evaluation against criterion:
1. Competency: The current employees are undoubtedly competent for the requirement. They are
working with the bank from a long time and equipped with the know-how required. So, option 1
fits with criterion 1.
2. Trustworthiness: As the bank until now was headed by the founding family, so oust of the
headman and appointment of an outsider for the CEO position can make them displeased and at
first it would be difficult to create trust between you and the team of current employees. But on a
positive side it will also send the positive message of having trust on existing Frontier National Bank
team. So, option 1 will partially fit with criterion 2.
3. Dynamism: As the employees, most are old and young ones also lacks energy and vigor.
Moreover they are orthodox and are unambitious. So, option 1 doesn’t fits with criterion 3.

Option 2: Recruit a core team from Chicago bank.

Evaluation against criterion:
1. Competency: These are the employees you have already with.You know their capabilities and
recruitment will be done basis on the bank requirement. They have proven records. So, option 2
fits with criterion 1.
4. Trustworthiness: These are the employees you were associated in Chicago bank. They know you
well and vice versa. It would be easier to have an optimum trust level between you and the core
team. But the current employees will feel betrayed as the core team is made without giving them a
chance as they are the ones who are serving the bank from a long time. So, they might not trust
and cooperate with the core team. So, option 2 will partially satisfy with criterion 2.
2. Dynamism: The employees of the Chicago bank are energetic, ambitious and have delivered
results in minimum timelines. So, option 2 fits with criterion 3.

Option 3: Recruit a core team of professionals with proven capabilities.

Evaluation against criterion:
1. Competency: They are the experts of their respective domains. They have proven records. So,
option 3 fits with criterion 1.
2. Trustworthiness: You and the current bank employees will work with these employees of other
banks for the first time, so it would be difficult to have an optimum trust level within team or
organization in a short duration of time. So, option 3 doesn’t fits with criterion 2.
3. Dynamism: These employees of other banks have worked with great vigor in their respective
job places and proved with outstanding results. So, they can steer the bank with their passion and
enthusiasm. So, option 3 fits with criterion 3.

Option 4: Formulate a team of current employees and professionals from Chicago bank.
Evaluation against criterion:
1. Competency: These employees coming from Chicago bank and the current ones have adequate
and required competency level in terms of managerial qualities and domain related expertise. So,
option 4 fits with criterion 1.

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2. Trustworthiness: Professionals coming from Chicago bank are the ones you already have
worked with. You know them well and vice versa. Also, the current employees would not feel
deserted as they have been given a chance to prove. They will try their best to prove themselves
the reliable partners within the core team for the bigger cause of reforming the bank situation. In
this scenario, it would be easier to develop an optimum level of trust between the core team and
the management. So, option 4 fits with criterion 2.
3. Dynamism: Working with energetic and dynamic professionals coming from Chicago bank,
current employees will also display the best of their capabilities with great enthusiasm. So, option 4
fits with criterion 3.

So, the summary of options evaluation against the criterion is as following:

Option Vs Decision Decision Decision

Criterion Criterion 1 Criterion 2 Criterion 3

Option 1 Fits Partially fits Doesn’t fit

Option 2 Fits Partially fits Fits
Option 3 Fits Doesn’t fit Fits
Option 4 Fits Fits Fits

Recommendation:
So, it is evident from the above table that the best choice is to go with option 4, that is, a core team
to be formulated with Chicago bank employees involving current employees.

Action Plan:
Four members from Chicago bank to be recruited. One member from each team can be assigned
work in respective four divisions of organization i.e. finance, marketing, human resource and
operations. This will help to strengthen the core four pillars of the bank. And subsequently, current
employees to be included in the core teams of each division.
Expected outcomes:
1. Cross sharing of knowledge and expertise between current employees and those coming from
Chicago bank will enhance the overall team’s competency level.
2. The members coming from Chicago bank would work very efficiently with you as they have
already worked with you and it would help you to keep tabs on each department.
3. The Frontier members would appreciate you for choosing them and giving them a chance to be
an important part of the key team and would turn out to be a great help for the outside members
to know the challenges and the working environment of Frontier National Bank.
4. The working of the core team will motivate and encourage all the other employees of the bank
to exhibit the best of their capabilities and work with great energy and enthusiasm.
5. Bank will be able to expand its operations in other segments.

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6. Work will progress very fast and the bank will be able to achieve good results in shorter period
of time.

Contingency Plan:
In case the things do not fall in place as per the plan, we have to take following additional
measures:
1. Team bonding exercises for the core team to enhance the trust level and coordination.
2. If results not seem to be achieved within the timeline, performance based metric for pay
revision and incentives to be implemented. It will lead to create performance driven culture within
the organization and competitive spirit among the employees to perform.
3. If current experienced employees inducted in the team do not exhibit vigor and perform, young
MBA employees to be trained under the leadership of recruited Chicago bank members and later
to be inducted into the core team.

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Exhibits:
All the four options are analyzed on the basis of following additional criterion:
1. Group Dynamics
2. Ambitions
3. Employee morale
4. Risk
Decision criteria:
1. Group Dynamics: The importance of this criterion arises from the fact that integration between
the core team and employees of the organization varies with respect to the various options.
2. Employee Morale: This criterion assumes importance as morale of the employees is directly
related to their productivity.
3. Ambition: This consideration is important as ambition within an employee is required for
his/her own performance as well as performance of the organization as a whole.
4. Risk: The importance of this criterion arises from the fact that risk involved in all the options
differs, in response to situations.

Evaluation of the options:

Option 1: A team out of current employees.
Evaluation against criterion:
a) Group Dynamics: Employees may have agreements/disagreements with the core team but the
decision will be taken mutually taking all the team members in confidence as there would be
sufficient amount of trust level among the employees working together over a period of time. So,
option 1 fits with criterion a.
b) Ambitions: Currently, employees have no ambitions towards taking the bank to the top position
again. They convinced that “performance” meant taking care of whatever the office boy put into
the in-basket. So, option 1 doesn’t fits with criterion b.
c)Employee morale: The morale of the employees is down as there is no clarity of vision and action
plan. Oust of the headman who belonged to the founding family further exaggerated the situation.
So, option 1 doesn’t fits with criterion c.
d) Risk: Had they taken some calculated risks and tried to approach new markets, bank might have
been in better position. Current employees have no zeal to take new risks and initiatives. So, option
1 doesn’t fits with criterion d.

Option 2: Recruit a core team from Chicago bank.

Evaluation against criterion:
a) Group Dynamics: Current employees might feel deserted if the core team is made up from
outsiders. They might label you biased. So, it will be difficult to have synergy in the team of current
employees and from Chicago bank. So, option 2 doesn’t fits with criterion a.
b) Ambitions: The employees coming from Chicago bank are ambitious and performance oriented.
They have featured this quality through their work. So, option 2 fits with criterion b.

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c)Employee morale: Their morale is high, they have displayed it through the performance and the
results achieved, so, we can say that option 3 fits with this criterion.
d) Risk: These employees have taken some bold decisions and reformed the situations in the
Chicago bank. So, they have the risk taking ability. Hence, option 2 fits with criterion d.
3.
Option 3: Recruit a core team of professionals with proven capabilities.
Evaluation against criterion:
a) Group Dynamics: Again, current employees might feel deserted if the core team is made up
from outsiders. So, it will be difficult to have synergy in the team of current employees and from
Chicago bank. So, option 3 doesn’t fits with criterion a.
b) Ambitions: The employees coming from other banks are ambitious and performance oriented.
They have featured this quality through their work. So, option 3 fits with criterion b.
c)Employee morale: Their morale is high, they have displayed it through the performance and the
results achieved, so, we can say that option 4 fits with this criterion.
d) Risk: These employees have taken some bold decisions and reformed the situations in their
banks. So, they have the risk taking ability. Hence, option 3 fits with criterion d.

Option 4: Compose a team of current employees and professionals from Chicago bank.
Evaluation against criterion:
a) Group Dynamics: Here are the chances of great dynamics because current employees also
taken into consideration and Chicago employees are the ones you have already worked with. So,
option 4 fits with criterion a.
b) Ambitions: The employees coming from Chicago bank are ambitious and performance oriented.
They have featured this quality through their work. So, option 4 fits with criterion b.
c)Employee morale: Definitely the morale of current employees will be greatly boosted while
working with highly enthusiastic Chicago bank employees. So, option 4 fits with criterion c.
d) Risk: These employees have taken some bold decisions and reformed the situations in their
bank. So, they have the risk taking ability. Hence, option 4 fits with criterion d.

So, the summary of options evaluation against the criterion is as following:

Option Vs Decision Decision Decision Option Vs

Criterion Criterion 1 Criterion 2 Criterion 3 Criterion

Option 1 Fits Doesn’t fit Doesn’t fit Doesn’t fit

Option 2 Doesn’t fit Fits Fits Fits
Option 3 Doesn’t fit Fits Fits Fits
Option 4 Fits Fits Fits Fits

Again, it is evident from the above analysis that option 4 is the best suited option.