Barclays Case Study

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  • Topic: Barclays, 2008, Management
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  • Published : November 21, 2010
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Barclays PLC Organisational Behaviour Case Study
1. BACKGROUND The firm focused on in this paper, Barclays PLC, “is a global financial services provider with c.24,000 employees and engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services, and operates through six business segments: UK Banking, Barclaycard, International Retail and Commercial Banking, Barclays Capital, Barclays Global Investors and Barclays Wealth” (Factiva, 2008). The firm expanded its US investment banking business with the acquisition of the US businesses of Lehman Brothers in September 2008 (Lambe, 2008). The firm’s investment banking division’s vision was to be the premier global bank in risk management and financing, and the Lehman acquisition was a transformational change meant to bring the business to premier global investment bank status (Schultes, 2008). Following the acquisition, Barclays has acted to integrate the Lehman Brothers’ US businesses in order to maximise the value from the acquisition. The investment banking business, Barclays Capital, and the investment management businesses, Barclays Wealth and Barclays Global Investors, are managed by Bob Diamond (de Teran, 2005). This paper presents a number of issues related to this integration. 2. ORGANISATIONAL BEHAVIOUR PROBLEMS / ISSUES IN THE COMPANY The acquisition of Lehman Brothers’ US businesses by the Barclays Group resulted in a number of key organisational behaviour issues that the business faced: · Integration of Lehman Brothers’ US businesses – A key issue was the integration of the US businesses of the Lehman Brothers. This had to be done quickly in order to minimise the disruption in the business, and mitigate the transfer of clients to other investment banks. While Barclays pursued the integration quickly, it was evident that the integration progress had placed a strain on the Lehman staff with some departing the firm for other opportunities (Masters, 2008). There was considerable uncertainty in the integration that was only made worse by the external environment which saw the worsening of the financial markets’ crisis. The leadership of Barclays and Lehman both played a critical role in the beginning of the integration of the businesses. · Culture of Barclays versus Lehman – A second issue that was critical in the integration of the businesses was the culture of the two firms which were evidently different enough to cause clashes between the staff. A key indicator in the success of integration of acquisitions of businesses is the number of staff staying put in the new organisation (Saigol, 2008). As there were a number of Lehman staff that did not join Barclays or eventually moved on to other organisations or just left the firm, there were concerns that the integration was not proceeding effectively for the organisation and that the handling of the integration by Barclays was resulting in the departures of the Lehman staff. · Motivation of Lehman Staff – Another issue related to the integration of the business was the motivation of the staff of Lehman Brothers. Not only were the staff personally impacted by the failure of the bank but the integration of the Lehman staff into the Barclays business also placed a large uncertainty in the staff. Almost fifty days since the acquisition of Lehman Brothers by Barclays, a large number of the Lehman staff had left behind the new firm (Wilson, 2008). Those that continued on were not particularly motivated as there remained large uncertainty in terms of their

role in the new organisation (Barclays) and the implications the move to Barclays would have on them, personally and professionally. The issues presented were three of the most critical issues which faced Barclays in the integration of the Lehman businesses and staff. This section was based on secondary research complemented by discussions with Barclays' staff that had experienced first hand the changes in the...
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