Small bank, big ambitions

Purpose – The purpose of this article is to explain how an extensive program of executive development was used to stimulate a far-reaching change in organizational culture and strengthen business performance. Design/methodology/approach – It presents a case study describing how a privately owned Russian bank worked in partnership with an American business school at their European campus to boost management and leadership skills and create a culture that values teamwork, initiative taking and the free exchange of ideas. Findings – The first branch only opened in 1996, but by 2011, it was the third largest privately owned bank in Russia. But at Promsvyazbank (PSB) they wanted more – to compete on the basis of international best practice. Not such an easy task, after the global financial crisis had brought lending to customers to a halt and – perhaps understandably – taken attention away from executive development. Many banks in many countries faced difficulties following that crisis, including the issues of liquidity and capital limits facing PSB. But there were some extra challenges in their drive for expansion: two banks between them dominated the Russian home market: state-owned Sberbank and multinational Raffeisen, with market shares of 60 per cent and 15 per cent, respectively. It was time to ask what the bank needed to do to move from successful start-up to competitive, maturing organization. Practical implications – It emphasizes the role of leaders in driving and managing change and highlights the importance of a clear strategic focus. Social implications – It shows how the creation of a common culture and the adoption of a collaborative management style can stimulate knowledge sharing and strengthen business performance. Originality/value – It provides an insight into the managerial and cultural challenges executives must address as their successful start-up matures into an organization with ambitions to become the top privately owned bank in Russia.