Download - JPMorgan Chase Change Initiative
Lauren Foisy, Rodrigo Jardim, Carlos Mota and Ali Akbar Sahiwala
Why a Change Management Plan?
2000Merged with the Chase Manhattan Co
2004Acquisition of Bank One
2007Beginning of the Financial Crash
2008Acquisition of Bear Stearns
2008Acquisition of Washington Mutual
2012Total losses of $6.25 Billion
2014Mike Cavanagh resigns JPMC, CEO of Corporate Investment Banking
Implementing Change
Moving Forward
CREDIT RISK COUNTRY RISK MARKET RISK SPECIAL CREDITS
COUNTRY RISK
REPORTING TEAM
MARKETING TEAM
TECHNOLOGY TEAM
SHARED VALUES
STYLE
STAFF
SKILLS
STRATEGY
STRUCTURE
SYSTEMS
SHARED
Specialized and structured roles have developed around task-oriented schedules.
Departments have tripled in staff over the past four years and are expected to grow.
Advancing Risk Management- Appreciate that managing risk better is instinctive and follows trends
- Recognize risk management as a joint, continual process
- Understand that risk is addressed at levels and is accountable
6 months 6 months 12 months
Change Leaders appointed from different Risk Management teams
Present ChaseConnect Initiative to staff and incorporate feedback
Change Team to execute and monitor progress of pilot program
Create Urgency
CREATE THE CLIMATE
ENGAGE & ENABLE
- Identify high-risk scenarios with 75% management buy-in
- Host honest discussions among all teams
Form a Team
- Appoint Change Leaders as leaders in Phase 1
- Create Change Team by Phase 3 spanning all departments and job positions
Make a Vision
- Improve effective risk analysis, profitability and sustainability over time through increased interaction and communication
Communicate It
- Present to staff and get collect feedback
- Host bi-weekly meetings
IMPLEMENT & SUSTAIN
Clear Obstacles
- Involve senior management to mitigate obstacles
- If employees resist change, they will be addressed individually
Celebrate Wins
- Goals will be established and monitored on a six month cycle
- Targets met will be celebrated among staff
- Bonuses offered
Build on Change
- Every six months, evaluate successes and determine improvements
- Establish new goals as necessary, incorporating lessons learned
Anchor Change
- Motivate others to join by promoting team through incentives
- As new employees join, explaing vision of the change vision
“The development of a risk culture throughout the firm is perhaps the most fundamental tool for effective risk management.”
Institute of International Finance, 2008
Measures of Success- Percent of business strategy objectives mapped to Risk Management
- Number of times audit committee and board review Risk Management
- Amount of financial losses incurred due to ineffective Risk Management
“First-class business in a first-class way”
THANK YOU