When a major investment bank faced a financial crisis, they wanted to do everything in their power to maintain high levels of service to existing clients and boost the morale despite unavoidable redundancies.
In 2008 a European investment bank suffered from exposure to structured credits and in 2009 was ordered to transfer 85 billion Euros to the ‘bad bank’ who acted as a winding-up agency. The remaining assets were managed by a new company.
As part of the winding-up procedure, the bank had to service and maintain the quality of its deals with existing clients whilst at the same time face the real prospect of losing some of its best employees. Morale was very low, employees faced considerable uncertainty and line management were not able to provide effective guidance and support as a result of poor communication at senior management level.