Garanti Bank Case - Harvard Business School

The change model at Garanti was very much aligned with the Kotter 8-stage model:

1. Establish a sense of urgency – Turkey was rapidly modernizing, critical for Garanti to reposition itself and take advantage of Turkey’s growth, increasingly competitive global markets

2. Form a powerful coalition – backing by Dogus and the board of directors, new CEO signed and sent out change proposal, change management group was formed and assigned accountability

3. Create a vision – vision was clear…redefine financial services to meet customer needs and not just be about money management, Garanti primarily as a service company, tagline created: “At Garanti, every customer is a star”

4. Communicate the vision – vision was regularly communicated from top to bottom, built platform for communication, town halls, new CEO was visible and approachable

5. Empower others to act on vision – entire top & middle management participated in change management, participatory decision making and responsibility, new system allowed for venting and idea sharing

6. Plan for and create short-term wins – changes in appearance promoted modernization (building, dress, conversation, etc.), training programs were created and attendance was mandatory even for senior management, low performing branches and employees were terminated (this created anxiety and tension but improved performance), communications platform and information sharing through meetings, created shared vocabulary to promote teamwork and unify company

7. Consolidate improvements and produce more change – investment in new HR hiring practices, highly visible management style, investment in IT systems, consolidation of all back-office functions, innovation project roll-outs, branch restructuring and conversion to sales offices, metrics tracking & self audits, new customer segmentation

8. Institutionalize new approaches – public and government endorsement of change, increased financial performance, American...