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 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 facing 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. To get out of the current situation
and expand the bank’s operations in other areas, a core team needs to be formulated. 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. Compose a team of current employees and professionals from Chicago bank.

To reach at best possible solution which is purpose fit and future ready, we have analyzed the above listed four
options against the following key decision criterion:
1. Competency
2. Trustworthiness
3. Dynamism
4. Group Dynamics
5. Ambitions
6. Employee morale
7. Risk
After careful analysis and evaluation, we recommend formulating a team of current employees and professionals
from Chicago bank, option 4. We believe this action would again take Frontier National Bank to the top position.
Table of Contents:

Executive Summary
S.No. Content Page no.
i. Situation Analysis………………………………………………………………………………………………….3
ii. Problem Statement……………………………………………………………………………………………….4
iii. Decision criteria…………………………………………………………………………………………………….5
iv. Generating options……………………………………………………………………………………………….6
v. Evaluating the options…………………………………………………………………………………………..7
vi. Recommendation………………………………………………………………………………………………….9
vii. Action plan…………………………………………………………………………………………………………..10
viii. Contingency plan………………………………………………………………………………………………….11
ix. Exhibits…………………………………………………………………………………………………………………12
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 to expand 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.
Problem Statement:
A decision has to be taken regarding whom to select as a 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 criterion as the employee technical and managerial
competence will be directly reflected in the outcome. 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 the important assignments.
3. Dynamism: In the era of changing technological and ecological environment, an employee should be
energetic and adaptable to change.
4. 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.
5. Employee Morale: This criterion assumes importance as morale of the employees is directly related
to their productivity.
6. 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.
7. Risk: The importance of this criterion arises from the fact that risk involved in all the options differs,
in response to situations.

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. Compose a team of current employees and recruited professionals from Chicago bank.
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. 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. So, option 1 doesn’t fits 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.
4. 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 4.
5. 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 5.
6. 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 6.
7. 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 7.

Option 2: Recruit a core team from Chicago bank.

Evaluation against criterion:
1. Competency: These are the employees you have already with. They have proven records. So, option
2 fits with criterion 1.
2. 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. So, option
2 fits with criterion 2.
3. Dynamism: As the employees have proven records and turned around major crisis situations. So,
they can steer the bank with great energy and vigor. So, option 2 fits with criterion 3.
4. 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 2doesn’t fits with criterion 4.
5. 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 5.
6. Employee morale: Their morale depends upon the environment and support from the current
employees they receive. But looking at the current situation, their morale is high and we can say that option
3 fits with this criterion.
7. 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 7.

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 other bank employees will work with these employees of other banks
for the first time, so it would be difficult to ascertain the trust level as of now. Certainly, option 3 doesn’t fits
with criterion 2.
3. Dynamism: As the employees have proven records and turned around major crisis situations. So,
they can steer the bank with great energy and vigor. So, option 3 fits with criterion 3.
4. 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 4.
5. 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 5.
6. Employee morale: Their morale depends upon the environment and support from the current
employees they receive. But looking at the current situation, their morale is high and we can say that option
3 fits with this criterion.
7. Risk: These employees have taken some bold decisions and reformed the situations in their banks.
So, they have the risk taking ability. Hence, option 3fits with criterion 7.

Option 4: Compose a team of current employees and recruited professionals from Chicago bank.
Evaluation against criterion:
1. Competency: These employees coming from respective banking domains and have adequate
competency level. They have proven records. So, option 3 fits with criterion 1.
2. 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. Only thing
to be looked at is the trust level between the core team and the current employees. So, option 2 fits with
criterion 2.
3. Dynamism: As the employees have proven records and turned around major crisis situations. So,
they can steer the bank with great energy and vigor. So, option 4 fits with criterion 3.
4. 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 4.
5. 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 5.
6. 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 6.
7. Risk: These employees have taken some bold decisions and reformed the situations in their bank. So,
they have the risk taking ability. Hence, option 4fits with criterion 7.

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

Option Match Un-match
Option 1 2 5
Option 2 6 1
Option 3 5 2
Option 4 7 0

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 outcome:
1. The members of his old team would work very efficiently with Abernathy as they had already worked with him
and it would help Ross to keep tabs on each department.
2. The Frontier members would appreciate Abernathy for choosing them and they would be a great help for
outside team to know the challenges and the working of Frontier National Bank.
3. Work will progress very fast and Ross will be able to achieve good results in shorter period time.

Contingency Plan:
As per our analysis, the plan would do wonders to the bank, if implemented properly. But, in case, plan do not
work out, we have to bring in some banking professionals from other banks to diversify the bank’s portfolio.
In case things didn’t fall in place as per plan, we have prepared a contingency plan for following possible
scenarios:
Scenario 1: If timely desired results are not achieved with existing team
Contingency plan: To improve team effectiveness, performance based system to be made & attracting rewards
to be given to best performing employees for uplifting their enthusiastic level.
Scenario 2: If team is not synergized timely
Contingency plan: Team building activities to be done in initial phase of team formation. It will help to create a
positive environment amongst team members to execute plan efficiently.