Case Study: Deutsche Bank

Overview

Deutsche Bank had been a major European competitor in the banking industry since its inception. The bank had gone through various structural and cultural changes over the years with changing scenarios. During the late 1990’s, the chairman of DB felt that it was the right time for the acquisition of Banker 's Trust as they were known for using advanced technology. Also, other external factors were conducive for such an acquisition between a German and American bank. This acquisition was a part of DB 's strategy to become a global player.

The case talks about pre and post acquisition period and the structural and cultural reforms that were imperative for a smooth transition and for the motivating the employees about the viability of

In 1999, after acquiring Bankers Trust (BT), Deutsche Bank (DB) had more than 90,000 people under its employment at five globally operating business units and a corporate headquarter, and had customers in 68 countries. The study of employee behaviour highlighted the need to implement certain changes in the structure owing to the unusual mix of a German and American bank. But before this change could be brought about, it was imperative to communicate to the employees about the feasibility of the acquisition and about the returns expected from it. This resulted in DB deciding to revamp its Human Resources (HR) function that consisted of 1600 personnel. The demands of the new economy and an environment of continuous change prompted DB to decide that its HR function needed to be more strategic and value-creating. A new competency model and development strategy for the HR employees was created and future HR managers needed to be

As the amalgamation took place with Banker Trust, some employees had to be laid off. Although all the employees that were laid off were not from Banker Trust but quite a large number were people from Banker Trust. At that point, about half of the 20,000 employees of Banker Trust were from New York. In return new employees and star bankers from London and other parts of the world are hired to bring more business to the bank.

Also, the deal brought attention to a few lawsuits in the US against Deutsche Bank concerning slave labour during World War II. Thus the bank was facing quite a few challenges at the aftermath of the acquisition.

Thus the organisational structure became quite complex because the organisation had to deal with cross multiple functional, organizational and geographical boundaries for product creation and service delivery. This affected not only the people and processes but also suppliers, technologies and business partners. As more complexity came, more effective management practises had to be