PNB Housing Finance Limited: Toward Successful Transformation
(8 pages of text)
In April 2016, the board of directors at an Indian housing finance company, PNB Housing Finance Limited (PNB), was considering the company’s recent organizational transformation and looking ahead to a planned initial public offering. The case examines how business process re-engineering helped PNB grow its small loan portfolio and shed its image as a minor player with little commitment to customer service to become a profitable, solid solution provider. A discussion of specific strategies and interventions that occurred at PNB explain the organizational transformation at the structural, technical, and behavioural levels. The question for the board now is whether the transformation has sufficiently matured the company and prepared it for the next step in its growth—the IPO.
This case is suitable for graduate- and postgraduate-level courses in strategy (to discuss the design and implementation of business transformation strategies), organizational change and design (to discuss the need for change, overcoming resistance to change, and the successful implementation of change initiatives), information systems (to discuss how technology can be successfully used in turning an organization around), and organizational behavior (to discuss how organizational culture can be successfully aligned with organizational goals). After working through the case and assignment questions, students will be able to
- identify the successful strategies for implementing a business transformation;
- identify the various factors that drive the need for organizational transformation;
- understand the resistance to change;
- develop an understanding of organizational transformation through business process re-engineering;
- understand how a well-structured plan by top management can turn an organization around;
- explain the various systematic interventions needed at structural, technical, and behavioural levels when implementing a successful organizational transformation; and
- understand and manage the cultural impact during an organizational transformation.
Finance and Insurance
India, Large, 2016
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