Shinsei Bank: Developing an Integrated Firm

Pedersen, appointed CLO with direct line to the CEO, was responsible for the overall
learning strategy and education initiatives, to be aligned with the new vision and values, and
later on with the objective to integrate/ centralize and manage training programs of the
group, manage performance-evaluation processes and employee climate surveys, and
finally to develop succession plans and leaders for the next generation.
To us the dimensions of job design looks as if Pedersen was granted a vast number of
tasks, yet with limited decision authority. Pedersen is perceived as internal consultant
with a lot of his responsibilities mentioning words such as guidance, facilitation,
development and evaluation. But Pedersen is not granted with the necessary authority
on the implementation of the various results of his efforts; similar to hiring an external
consultant.
The loosely defined responsibility of creating the most powerful organization based on
the strong leadership and commitment of the CEO is not backed up by a clear responsibility
over tasks where there is an overlap with the Human Resources (HR still being responsible
for hiring, promotion and delegation). This could lead to issues, as Pedersen defines the
training program and performance-valuation processes, yet it will be Human Resources who
have the say on who is being promoted/ delegated. HR could even sabotage internal
training efforts by hiring external people instead supporting Pedersens approach of
developing internal talents.
The centralization of some of the tasks to the CLO is revoking Yashiro-sans decision of giving
more authority to the line management for compensation, performance measurement,
hiring and promotion. Pedersen will have to get the buy-in from a lot of employees to push
through and is highly depending on the cooperation of HR and the support of the CEO.