Lcb Case Study
LEBANESE CANADIAN BANK RESULTS THAT SPEAK FOR THEMSELVES
Since the beginning of 2001, the Lebanese Canadian Bank has worked on strengthening its position in the banking sector by adopting an ambitious five-year business plan aimed at increasing its market share and the volume of its banking activities as well as at improving its net results. This ambitious strategy was intended to position the Bank among the “Top Ten Banks” operating in Lebanon and this was actually achieved.LCB management took this initiative and monitored its implementation from 2001 through 2007, which contributed to a consistent growth of its total assets from:| LEBANESE CANADIAN BANKThe Lebanese Canadian Bank (LCB) boasts an extraordinarily long list of CSR initiatives. Having been forced to work around the unpredictable political climate of Lebanon, the bank has discovered that the best way to make the most of circumstances it cannot control is to plan its initiatives year by year, remaining flexible and ready to adapt to any unforeseen change. Every year we have something different; we open new opportunities, we make new plans because in Lebanon, you cannot predict what is going to happen.
Year after year we base our CSR on the issues and concern of the Lebanese people and environment. We consistently take into consideration everything that’s around us, and out of that, make new strategies, new programs,” explained Elie Azar, Corporate Communications Manager at LCB. The bank has been involved with various CSR programs covering a broad spectrum of regional issues and concerns, including road safety, prevention of drug use, and providing Christmas gifts to underprivileged families.LCB has invested in several health initiatives, financing a dental clinic and an AIDS treatment facility, providing medications for patients with AIDS who need assistance, and supporting the rehabilitation of mentally disabled young adults. Additionally, LCB has worked in collaboration with the US, Canadian, and Emirati embassies, along with the UN for the demining of cluster bombs in southern Lebanon. The bank also works closely with the Ministry of the Interior to plant trees all across Lebanon and has worked with UNDP to establish libraries equipped with computers in the Chouf.
Also with UNDP — as well as IMF, IFC, and the WorldBank — LCB coordinated the Middle East and North Africa Development Forum (MDF5), a big event dedicated to empowering civil society and expanding the scope of economic and social policy issues in the MENA region. Perhaps the most important CSR initiatives for the Lebanese Canadian Bank are those involving youth. “We want to be a youth-savvy bank. We believe that the youth are the future of Lebanon, and also our future clients. Out of our annual CSR budget, which is more than 30-40 % of our global communications budget, we want to dedicate 40-50 % to youth initiatives,” Azar pointed out.
We are part of an industry; we want to invest in initiatives that promote the future of our business. “Home ; Credit Resources ; Human Resources Management ; Three Effective Management StylesIs Your Management Style Effective? When it comes to management, half the battle is knowing when to use the right management style. Some styles tend to focus on people, while others gravitate toward a specific project or product. The management style that ends up working in a particular situation depends on your people skills, knowledge, resources available to you, and the results you’d like to achieve.It’s important to choose the right management style for each situation. Without styles that align with certain circumstances, you may find your business moving more slowly and making costly mistakes.
The following management styles may be effective in getting your people to do their best work:1. Participatory Style. Managers using this style give employees tasks to complete from start to finish. For projects in which that is not possible, managers must communicate to each employee how his or her part relates to the larger project. People who understand their role in the bigger picture are often more motivated to complete their tasks.
Explain the details of the project and why the employee’s role is essential to it. Solicit their feedback on the task he or she is to complete as well as its significance. People who have the opportunity to be involved in the process are more likely to feel valued and to take ownership of their tasks as part of the project. Another factor that influences people’s motivation is their understanding of the tasks. Make it a habit to ask questions that may seem obvious to you – the employees’ answers will reinforce that they grasp the project, their task, and their importance.You may find that the tasks to be done are divided among groups.
In that case, try to coordinate the groups so that they know where and how their particular contribution fits into the larger project. Your biggest task as a manager in this case is to minimize problems and other obstacles that are sure to arise. Communicate with the teams that you are willing and able to clear their paths. Encourage them to inform you of any problems that arise in a timely manner so that you can do so. Finally, be sure to reward motivation just as you do accomplishments.
Letting people know that you value their efforts will help to maintain the momentum that you’ve built. 2. Directing Style. Some situations, such as those under a tight deadline or that involves numerous employees, call for a top-down management approach. In the directing style, managers must outline five key goals for their employees: what, how, when, where, and why.
Managers must be specific about what their people need to do, how they should do it, where they should do it, why they’re doing it, and when it must be finished.Although you may find this style cold and impersonal, there is still ample opportunity for you to be motivating and accessible. One example would be during role assignment: you should take that as an opening to provide tips to employees or to share experiences you have gleaned from similar projects. Setting specific expectations and standards is important for this style to work. Make sure you are unambiguous in your communication.
Be as detail oriented as possible, and avoid jargon and buzzwords. Clear, short-term goals like “complete four reports each day” are best.As a manager, you must also be able to make decisions on the fly. For example, you may have to tell an employee to switch from one task to another. This will go over more smoothly if you let your employees know at the start of the project that such shuffling may occur. If they’re prepared for it, the transition between tasks is far less disruptive.
3. Teamwork StyleManaging by teamwork is the best style if you are trying to expedite a project or optimize processes for completing that project. This style motivates people by pooling their knowledge, and often the results far exceed expectations.Teams may be able to solve problems more quickly than a single person could. If a good give-and-take develops within the team, you may be able to replicate that process with other projects.
Coordinated efforts among staff and solid communication are the key to successful teamwork. Presentations and reports must be concise and clear, and they must answer all outstanding questions. It’s also very important to understand logistics. However, most important, you as a manager must be willing to give the team credit for its independence and success, and not your management skills.When employee evaluation time rolls around, you must remember to reward and recognize those employees who collaborated will and maintained a team spirit under pressureLebanese Canadian Bank Lebanese Canadian Bank’s vision: We shall strive to satisfy our customers’ needs and exceed their expectations by providing them with the best in quality service and a variety of customized products that answer to their banking demands.
In order to achieve this, we will employ all our resources and support in our quest to implement our policies and reach the bank’s objectives.LEBANESE CANADIAN BANKThe Lebanese Canadian Bank (LCB) boasts an extraordinarily long list of CSR initiatives. Having been forced to work around the unpredictable political climate of Lebanon, the bank has discovered that the best way to make the most of circumstances it cannot control is to plan its initiatives year by year, remaining flexible and ready to adapt to any unforeseen change. “Every year we have something different; we open new opportunities, we make new plans because in Lebanon, you cannot predict what is going to happen. Year after year we base our CSR on the issues and concern of the Lebanese people and environment.
We consistently take into consideration everything that’s around us, and out of that, make new strategies, new programs,” explained Elie Azar, Corporate Communications Manager at LCB. The bank has been involved with various CSR programs covering a broad spectrum of regional issues and concerns, including road safety, prevention of drug use, and providing Christmas gifts to underprivileged families. LCB has invested in several health initiatives, financing a dental clinic and an AIDS treatment facility, providing medications for patients with AIDS who need assistance, and supporting the rehabilitation of mentally disabled young adults.Additionally, LCB has worked in collaboration with the US, Canadian, and Emirati embassies, along with the UN for the demining of cluster bombs in southern Lebanon. The bank also works closely with the Ministry of the Interior to plant trees all across Lebanon and has worked with UNDP to establish libraries equipped with computers in the Chouf. Also with UNDP — as well as IMF, IFC, and the World Bank — LCB coordinated the Middle East and North Africa Development Forum (MDF5), a big event dedicated to empowering civil society and expanding the scope of economic and social policy issues in the MENA region.
Perhaps the most important CSR initiatives for the Lebanese Canadian Bank are those involving youth. “We want to be a youth-savvy bank. We believe that the youth are the future of Lebanon, and also our future clients. Out of our annual CSR budget, which is more than 30-40 % of our global communications budget, we want to dedicate 40-50 % to youth initiatives,” Azar pointed out. “We are part of an industry; we want to invest in initiatives that promote the future of our business.
“| | | | | | As member of the Alpha Group (i. e. he major banks with deposits exceeding US$ two billion), LCB saw its deposits increase from US$ 423 Million as at 31/12/2000 to US$ 3 Billion at the end of 2007, and its loan portfolio increased from US$ 150 Million as at end of the year 2000 to US$ 668 Million as at end of the year 2007. The Bank’s solvency ratio, according to Basle 2, exceeded 11% at the end of 2007, exceeding by far the required international rate of 8%. LCB also remains concerned about increasing its equity, and reinforcing its corporate governance techniques in order to apply the Basle 2 accord.
As far as the Bank’s liquidity ratio is concerned, it has exceeded 80% as at the end of 2006 ; 2007. In the past two years, LCB achieved performance ratios as to profits that exceeded by far those of the banking sector in Lebanon. The return on average equity for common shareholders exceeded 16% while the return on average assets was close to 1%. The Bank maintained this outstanding performance by relying on its internal resources, at a time when growth in the banking sector was mainly based on mergers and acquisitions.This success story and the achievements that preceded it are due to the following reasons: 1. A network of branches that grew from 10 as at 31/12/2000 to 32 as at 31/12/2007 and looking forward to reaching 36 branches by the end of 2008.
Most of this growth results from buying the branches of other banks, which have ceased their activities. 2. The team work policy adopted by the Bank, under the leadership of the Board of directors, its Chairman and the members of the Board.This policy was further implemented by the Bank’s senior management team who believe that team work is the most important driver for corporate success. 3. An increase in equity from US$ 21 Million as at 31/12/2000 to around US$ 228 Million as at 31/12/2007, with a commitment and a target to exceed US$ 300 Million by the end of 2008, through IPO, or capital increase of common shares or preferred shares and through Global Depository Receipts (GDR) (providing the political ; economic situation allows such action).
. The implementation by the Bank of an investment strategy that led to outstanding results, which translated into a consistent growth of profits in the past seven years, to increase to around 650% since the year 2000, from US$4. 7 Million to US$30 Million for the year 2007. This achievement was the result of reducing the cost of funds, improving the collection of commissions and following a cost containment policy, which reduced the cost to income ratio to less than 48% (in the past four years) 5.LCB was the first bank in Lebanon to receive the ISO Certification Award.
It also conducted successful advertising campaigns, which contributed in strengthening customers’ trust in the Bank. 6. A commitment to satisfy, and if possible exceed customers’ expectations, as we believe that customers’ satisfaction is the true measurement of success. 7. The implementation of an internal policy, which considers the appreciation and reward of quality performance as well as staff welfare among the priorities and core values. | | | | | | | I.
Time Context i. The period in this case study is 2010 July, when Mr. Mohammed I. hamdon was aboard Member and General Manager . II.
Viewpoint ii. This case study took the viewpoint of Mr. Mohammed I. Hamdoun. III.
Relevant Facts A. Springs Industries of Fort Mill, South Carolina, was founded in 1887 and is the largest home-furnishings company in North America. B. Springs’ 14 000 associates make bath rugs, bedspreads, pillows, towels, window blinds, and other textile products at manufacturing facilities in 13 states, Canada and Mexico. C.
Crandall Close Bowles, Springs’ CEO since 1998, is the great-great-granddaughter of the company’s founders. D. When Bowles became the CEO of the company, the US textile industry was under intense attack by competition from cheap imports. IV. Problem Statements E.
How might principles of scientific management be useful to Springs Industries? How about the quantitative approach? F. How might knowledge of organizational behavior help the company’s frontline supervisors manage their employees? Would the CEO and other top managers need to understand Organizational Behavior (OB)?Why or why not? G. Using Exhibit 2-6, describe Springs Industries as a system. 1. COMPANY OVERVIEW 2.
Lebanese Canadian Bank SAL provides banking products and services in Lebanon and Canada. Its personal banking products include star deposit, saving sight, term deposit, and checking accounts; banking cards; retail products, such as tuition, doctor’s, housing, car, expatriate, personal, wedding, personal computer, and solar energy loans; and bills and salaries domiciliation, settlement of charges, money transfers, safe deposit boxes, and ATM services.The company’s business banking products comprise commercial loans, such as funding products, including overdrafts, funding for starting the facility, term loans, working capital loans, bills discounted, payment and letter of guarantees, bid bonds, performance guarantees, advance payments, retention, surety, contractor receivables, and project finance services; and trade finance services, such as import and export letters of credit services. Lebanese Canadian Bank SAL was formerly known as The Royal Bank of Canada (Middle East) S. A.
L. nd changed its name to Lebanese Canadian Bank S. A. L. in 1988. The company was founded in 1960 and is headquartered in Beirut, Lebanon.
It has branches in Saint Charles, Dora, Hamra, Jal El Dib, Hazmieh, Moussaitbeh, Verdun, Achrafieh, Elyssar, Sin El Fil, Chyah, Jbeil, Jounieh, Hamra, Raouche, Furn El Chebbak, Airport Road, Tarik el Jdideh, Bourj Hammoud, Dbayeh, Badaro, Zouk Mosbeh, Kfarchima, Mansourieh, Sidon, Nabatieh, Tyre, Tripoli, Kfarsaroun, Batroun, Halba, Chtaura, Zahleh, Hermel, and Labwe, Lebanon, as well as a representative office in Montreal, Canada H.Scientific management is the utilization of the scientific method to determine the best way of doing a job. For over ……. years, LCB bank survived and along with it the management has evolved. The …………….
has changed on how resources are used to produce their…………. , yet the product itself evolved, too, to meet customer standards. Scientific management is the best approach to use since it scrutinizes every given circumstances to arrive at the best solution. By using Scientific method, the Bank could establish its marketing strategies and could give promotions that would suffice seasonal problems.I.
Organizational behavior is the branch of learning that concerned with the actions of employees at work. Subjects like motivation, leadership, trust, teamwork and conflict have been studied through OB. There are only two responses to answer the importance of OB on the roles of the top managers. It is either a ‘Yes’ or a ‘No’. Yes, the top managers would need to understand OB for them to become the most effective and the most efficient in their jobs and in dealing with their associates.
Creating a good working environment- even under pressure- would be favorable for everyone, most especially by lower-level employees. With this, the whole organization would do better business and could lead to outstanding profits. J. LCB’s website (http://www. lebcanbank.
com) … depending on information gathered from other websites boasts its world-class brands and its product collection which presented in appealing images. It utilizes today’s finest technology which reflects the company’s high standards.Springs Industries is led by a leadership team whose knowledge and expertise guide the company in its activities as a global producer of home furnishings. With extensive experience in the service areas that make them an innovative resource for its partners, manufacturing, supply chain management, customer relationships, marketing and merchandising, human resources, the top managers protect LCB’s vision and bring their mission to life each day. That’s what makes them survived for more than a 10 years and increased the net profit of bank till the ay it was acquired by SGBL on March 2011 .
V.Conclusion and Recommendation a. Both scientific management and quantitative approach are essential tools to keep an organization up and running. CEO’s and other top managers should apply those approaches to overcome any obstacles that hinder organizations from succeeding. Understanding the Organizational Behavior would be an immense advantage to make their environment great place to work and to live as well.
As an open-system organization, banks influence to shape the ‘s evolution, acclaims talents to bring exceptional products and services to the consumer, and commits to sustainable business practices. erge with Societe Generale unit * U. S. Treasury decision alarmed Lebanon’s banks (Recasts with central bank governor comment) By Mariam Karouny BEIRUT, March 3 (Reuters) – A privately owned Lebanese bank will be merged with the Lebanese subsidiary of Societe Generale (SOGN. PA), after the U.
S. accused it of involvement in money laundering and drug trafficking, Central Bank Governor Riad Salameh said on Thursday. “The head of the bank (said it has) been decided to merge the Lebanese Canadian Bank with Societe Generale,” Salameh told LBC TV.Sources familiar with the deal said earlier that the Beirut-based Lebanese Canadian Bank (LCB) had been put up for sale after the U. S. Treasury Department refused to reverse a decision to ban the bank from dealing in dollars.
Salameh said he was not aware of the value of the deal but media reports have said the bank was likely to be sold for between $500 million and $600 million. A banking analyst said selling the bank aimed to shield the banking sector’s reputation. The U. S. Treasury Department last month designated LCB a “primary money-laundering oncern,” saying it was involved in a money-laundering and drug-trafficking operation with ties to Shi’ite militant group Hezbollah. [ID:nN10290735] The bank denied the charges, and Salameh said LCB was well managed and complied with international laws on money laundering.
LCB is ranked as the eighth-largest Lebanese bank, with more than $5 billion in assets, 35 branches in Lebanon and an office in Montreal. The U. S. Treasury announcement sent shock waves through Lebanon’s banking sector, which helps the state meet borrowing needs to finance a public debt equivalent to 129 percent of gross domestic product.Analysts said bankers were worried that Washington might begin to target the banking sector and impose sanctions on it to exert more pressure on the Lebanese government to confront Hezbollah, which it describes as a terrorist group.
Hezbollah and its allies brought down the government of Saad al-Hariri in January after he refused to repudiate a U. N. -backed tribunal that is expected to indict members of the group over the killing of Lebanon’s former prime minister Rafik al-Hariri. Last week, the central bank said Salameh held a “constructive” meeting with senior U.S. treasury officials in which the concerns of both parties were addressed.
“Possible options and processes were considered to resolve the current situation with the Lebanese Canadian Bank, and both parties affirmed their continued commitment to mutually beneficial cooperation,” a central bank statement said. It also said Salameh was assured that the findings on the Lebanese Canadian Bank “does not reflect a decision to target the Lebanese banking sector. ” The bank reported a 63 percent increase in net profit last year to $52 millionWhatever change your organization is trying to implement, knowing about and working through the necessary steps will go a long way to making your change initiative a success. Create tension With this first step, articulate why change needs to happen and why it needs to happen within the planned timeframe. Many change programs start with a big bang, but then peter out ending in a whimper. Other programs struggle to develop the initial momentum.
Think about the immediate force that will get your people moving in the right direction.This could be impending legislative changes, new entrants to the market, high levels of customer dissatisfaction, etcetera. Think also about the impacts of not changing, such as loss of market share or fines from regulators. To prepare your company for the impending objections, collect as much data as you can to back your assertions. Harness support Next, get on board the key decision makers, resource holders and those with the potential to subvert your change process. Start by identifying the key stakeholder groups; the people with something to lose or gain from your change proposal.
Include in your analysis the end receivers of the new products or services, such as suppliers, customers and end users of software. Also include internal decision makers and program implementers, such as information technology staff. Then construct a communication plan that tailors the communication content and style to each stakeholder group’s preferences. Be sure to keep the lines of communication with each group open throughout the entire process People dimension of change Research shows that problems with the people dimension of change is the most commonly cited reason for project failures.In a study with 248 companies, effective change management with employees was listed as one of the top-three overall success factors for the project.
Helping managers be effective sponsors of change was considered the most critical success factor overall. Effective management of the people dimension of change requires managing five key goals that form the basis of the ADKAR model: * Awareness of the need to change * Desire to participate and support the change * Knowledge of how to change (and what the change looks like) * Ability to implement the change on a day-to-day basis * Reinforcement to keep the change in place|
