welcome
cartLogin

Welcome to Citygroup

January 2, 2008

Nick Leong has a topical and interesting question relating to the recent financial crisis and its impact on Citigroup. He posted it on his own blog and didn’t get an answer, so he has placed the question here:



Hopefully, this will generate more response than it did on my blog. Caveat: This was post on my blog before Vikram Pandit was confirmed as the new CEO but the lingering question remains: how does one manage knowledge in such a behemoth?

Read on for his original blog

Consider this scenario:

Your company has 320,000 employees with offices spanning the globe. The business units are as diverse as the nationalities in an international school & operate independently of each other. As a matter of fact, they compete fiercely WITH each other. This was the result of mergers & acquisitions that failed to deliver on the promised synergies. The company has been underperforming compared to its industry peers. Over the past few years, the company had been battling regulatory blues – from losing its right to operate a highly lucrative business in Japan to an expensive class action suit. Your CEO just lost his job for not being able to get the team to march to the same beat & the company is deemed to be so ungovernable that even the former Treasury Secretary of the U.S. has declined to take up the job. What would you as the knowledge manager do?

Welcome to Citigroup.

Bear in mind that Citigroup’s business range from investment banking to retail banking to credit cards to brokerage to private banking to… ok, I think you probably get the idea by now.

The previous CEO, Sandy Weil, had clobbered together this businesses in the hope of building a financial hypermarket. But while Sandy was busy acquiring these businesses, he forgot to gel them together. Some reports cited diverse IT platforms as one of the key obstacles to producing the synergies needed. That means the banker at the branch probably had no idea that you are also a client of his company’s brokerage & insurance services as well.

I am interested to hear your opinions on how you would re-organise/restructure/rebuild the bank. Would you keep the financial hypermarket dream alive or do you think it is time to wake up to smell the break-up grim?

Leave a Reply

Your email address will not be published.

Related Posts

About the Cynefin Company

The Cynefin Company (formerly known as Cognitive Edge) was founded in 2005 by Dave Snowden. We believe in praxis and focus on building methods, tools and capability that apply the wisdom from Complex Adaptive Systems theory and other scientific disciplines in social systems. We are the world leader in developing management approaches (in society, government and industry) that empower organisations to absorb uncertainty, detect weak signals to enable sense-making in complex systems, act on the rich data, create resilience and, ultimately, thrive in a complex world.
ABOUT US

Cognitive Edge Ltd. & Cognitive Edge Pte. trading as The Cynefin Company and The Cynefin Centre.

© COPYRIGHT 2022. 

Social Links: The Cynefin Company
Social Links: The Cynefin Centre
< Prev

So is Dave Pollard the next Mother Ann Lee?

- No Comments

Like many others I have been watching Dave Pollard's postings within a mixture of interest ...

More posts

Next >

“one-upmanship and scoring points”

- No Comments

I was a little surprised by the nature of Shawn's reaction to my disagreement with ...

More posts

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram