Maybank: Organisational Transformation Through Human Resources

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SMU513
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MAYBANK: ORGANISATIONAL TRANSFORMATION
THROUGH HUMAN RESOURCES
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Our corporate mission — humanising financial services from the heart of ASEAN — applies to
how we do business, not only externally, but also internally. It is about how we operate as a team
and how we treat each other.
- Nora Abd Manaf, Group Chief Human Capital Officer, Maybank Group 1
It was January 2018. Nora Abd Manaf, Group Chief Human Capital Officer, Maybank, the largest
bank by market capitalisation in Malaysia, thought back on the time in 2008 when she had received
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a call from Tan Sri Dato’ Sri Wahid, the then Group CEO of Maybank. Wahid had invited her to join
the Bank in a key strategy role, to enable its transformation from a strong local bank to a regional
player. At that time, Maybank had a proud history of 48 years, and Nora had known that change
would not be an easy task. Nevertheless, she accepted the challenge.
Wahid and Nora, along with the Group EXCO colleagues, launched a transformation plan for the
business and the HR function in two phases, spanning 2008-2015. The transformation encompassed
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revamping the organisational structure of Maybank to facilitate its regional aspirations. As a regional
organisation, more visibility was needed within the organisation to enable cross-synergies.
Maybank’s HR strategy also had to transform to facilitate successful regional expansion. Its core
values needed to be recast to drive employee confidence and inspire them to achieve the business’
objectives. The Talent Management Framework needed to be reviewed and renewed in order to drive
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a high-performance culture, underpinned by the right policies and processes. Good performance
needed to be recognised, and actions aligned with the Bank’s objectives had to be fairly rewarded.
The Bank also had to reposition itself as an employer of choice for talented potential new hires.
In 2015, on the back of stellar results achieved in the implementation of the Maybank transformation
strategy, the Bank set its sights on maintaining its lead against the new headwinds of digitisation and
automation in the industry. Nora was now working to poise the organisation for its foray into the
next frontier of artificial intelligence, the gig economy and a new generation of millennial employees.
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She thought hard about the next steps to be taken in preparing Maybank’s employees for this new
and imminent wave of change.
1
“Maybank, Malaysia: 10 Questions for Nora Abd Manaf, Senior Executive Vice President and Head, Group Human Capital”, Willis
Towers Watson, August 30, 2011, https://www.towerswatson.com/en/Insights/ , accessed February 2017.
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This case was written by Dr Fermin Diez and Adina Wong at the Singapore Management University. The case was prepared
solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of
a managerial situation. The authors may have disguised certain names and other identifying information to protect
confidentiality.
Copyright © 2019, Singapore Management University Version: 2019-05-10
This document is authorized for educator review use only by Dr. Lalatendu Kesari Jena, Xavier Institute of Management (XIMB) until Jul 2021. Copying or posting is an infringement of
copyright. Permissions@hbsp.harvard.edu or 617.783.7860
SMU-19-0018 Maybank: Organisational Transformation Through HR
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Maybank Group
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In early 2018, Maybank was among Asia's leading banking groups and South East Asia’s fourth
largest bank by assets, in addition to being the largest in Malaysia by market capitalisation. The
Maybank Group had an international network of over 2,200 offices in 20 countries - Malaysia,
Singapore, Indonesia, the Philippines, Brunei Darussalam, Vietnam, Cambodia, Thailand, People's
Republic of China, Bahrain, Uzbekistan, Myanmar, Laos, Pakistan, India, Saudi Arabia, Great
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Britain and the United States of America. The Group offered an extensive range of products and
services, which included consumer and corporate banking, investment banking, Islamic banking,
stock broking, insurance and takaful and asset management. It had over 43,000 employees worldwide.
External and Internal Crisis
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2008 was a momentous year for Maybank as it celebrated a track record of 48 profitable years, albeit
registering declining growth in the more recent years prior to 2008. This was despite the onset of the
global financial crisis that had severely impacted many global banks, and a general loss of confidence
in the growth potential of the banking sector. Maybank itself, along with other Malaysian banks, was
relatively unscathed. Thus, it was not much of a surprise that the Bank’s 2008 annual report
mentioned plans to become a ‘leading regional financial services group’, rather than being content
to focus on growing domestically. 2 The Bank brought in a new CEO that year and a new Chairman
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in 2009.
This new regional push meant that Maybank needed to make acquisitions in a more definitive manner.
On 26 March 2008, Maybank announced that it would be acquiring Bank Internasional Indonesia
(BII), the sixth largest bank in Indonesia. 3 The deal, which concluded in December 2008, had
Maybank paying approximately RM4.26 billion (US$1.05 billion) 4 to Temasek Holdings’ Fullerton
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Financial Holdings Pte Ltd and Kookmin Bank for a 55.6% stake in BII 5, while purchasing the
remaining shares from other shareholders for slightly over RM3 (US$0.74) billion. 6
This acquisition would give Maybank a foothold into the fast-growing banking industry in Indonesia,
an underpenetrated market and the largest economy in Southeast Asia. 7 Indonesia also had the
largest Muslim population in the world, and Maybank saw many synergies with being able to grow
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2
Maybank Annual Report 2007, http://www.maybank.com/en/investor-relations/reporting-events/reports/annual-reports.page, accessed
March 2018.
3
“Maybank Wins Bid to Acquire Bank Internasional Indonesia”, Maybank2u, March 26, 2008,
http://www.maybank2u.com.my/...Personal, accessed March 2018.
4
US$ 1 = MYR4.06158 as at 1 January 2018.
5
Bursa Malaysia announcements dated 30 Sept 2008 for final payment to Fullerton, 7 Oct 2008 purchase price for additional 16.26%
stake in BII and 2 Dec 2008 for remaining stake in BII as well as deal completion
http://www.bursamalaysia.com/market/listed-companies/company-announcement/647677
6
“Maybank Wins Bid to Acquire Bank Internasional Indonesia”, Maybank2u, March 26, 2008,
http://www.maybank2u.com.my/...Personal, accessed March 2018.
7
“Maybank in $2.7 Billion Bid to Buy BII of Indonesia”, NYTimes, March 26, 2008,
http://www.nytimes.com/2008/03/26/business/worldbusiness/26iht-maybank.1.11429856.html, accessed March 2018.
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“Maybank's Buy in Indonesian Bank an Important Move Regionally, Says Nor Mohamed”, Bernama Daily Malaysian News,
14May2008, Factiva database via SMU Pyxis, accessed March 2018.
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its Islamic banking business, as many corporates in Malaysia were already doing business in
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Indonesia (Malaysia was itself a majority Muslim country). 8 However, the terms of the deal were
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viewed with skepticism by onlookers, who found the price tag expensive. 9
The day following the announcement of the proposed acquisition of BII, Maybank’s share price fell
to its lowest in 3.5 years on concerns over the valuation of the deal (refer to Exhibit 1 for share price
chart and financials of Maybank from 2007-13). 10
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Maybank managed to bring down the price-to-book ratio from an initial high of 4.6x to 4.1x, and
subsequently even further through a rights issue. 11 In early 2009, Maybank undertook a rights issue,
raising roughly RM 6 billion (US$1.48 billion), to fulfill its working capital needs as part of its
regionalisation ambition, and as a pre-emptive move to strengthen its capital structure, given market
expectations for financial institutions globally to hold higher capital levels.
While working on integrating BII as part of the Maybank Group and expanding its regional ambitions,
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Maybank also acquired Singapore-based stockbroker Kim Eng Holdings in 2011 to the tune of
S$1.79 billion (US$1.39 billion 12). 13 Not only was Kim Eng Holdings a top-five stockbroker in
leading ASEAN markets such as Indonesia, Thailand and Singapore, it was a strategic addition to
build out Maybank’s regional capabilities in investment banking and the equity markets.
The continuance of the acquisition strategy and fortification of new business lines made it even more
imperative that the HR function needed to adapt more quickly to the speed and complexity of change.
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Nora explained, “As in any major acquisition, there will be sentiments from shareholders. However,
with the BII acquisition, we believed that it was a strategic move for Maybank to get its footprint
into the Indonesian banking market to regionalise our operations.”
When asked if BII bank employees trusted the new management, she replied, “As with any new
management takeover, building trust is a key priority. Whilst there is always trepidation, there was
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appreciation for the value that all stakeholders could reap from this opportunity. This was
operationalised through a transformation project team directly accountable to the management team.”
She then added, “There was no way to determine if the timing of the acquisition was right as the
decision to acquire BII was made prior and we had to proceed with it. We then put in motion a
repositioning strategy as well as transformation initiatives. However, ten years into the acquisition,
Maybank Indonesia has now become a significant contributor to the Maybank Group. We have seen
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traction in its financial performance since and we believe the key drivers of this success were a
8
“Maybank Wins Bid to Acquire Bank Internasional Indonesia”, Maybank2u, March 26, 2008, http://www.maybank2u.com.my...,
accessed March 2018.
9
“Maybank’s Indonesian Bet Pays Off”, The Edge Report, April 11, 2017,
http://www.theedgemarkets.com/article/special-report-maybank%E2%80%99s-indonesian-bet-pays, accessed March 2018.
10
“Maybank Shares Dive after Pricey BII Purchase”, CNBC, March 27, 2008, https://www.cnbc.com/id/23820932, accessed March
2018.
11
Joyce Goh and Anna Taing, “Special Report: Maybank’s Indonesian Bet Pays Off”, The Edge, April 11, 2017,
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http://www.theedgemarkets.com/article/special-report-maybank’s-indonesian-bet-pays, accessed September 2018.

12
US$1 = S$1.2882 as of January 2011.
13
“Maybank Expands Regional Investment Banking Platform Via Acquisition of Strategic Stake in Kim Eng”, January 6, 2011,
Maybank, http://info.maybank2u.com.sg/about-us/news/2011/6jan11.aspx, accessed May 2018.
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sharper focus on leadership and better business planning. The existing management team was very
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experienced and aligned with Maybank’s culture.”
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New Leadership, New Direction, New Hires
New CEO
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In May 2008, Tan Sri Dato’ Sri Wahid joined as CEO of Maybank. Trained as an accountant, he had
built a reputation as a problem-solver at several Government-linked companies in Malaysia,
including the successful turnaround of an indebted infrastructure company. 14 He came into Maybank
with the expectation that he would help the bank successfully navigate the pressures of the global
financial crisis, and maintain Maybank’s lead as the largest bank in Malaysia.15 Wahid observed that
when he joined the Bank, it was growing at a mere rate of 5% per annum, compared the average
annual rate of 20% of its competitors CIMB, RHB and Public Bank. 16 This meant that Maybank
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could lose its pole position and fall to third place within two years.
The focus was on getting the right talent on board to turn the company around. Wahid said,
We don’t want to do the same amount of business with fewer staff but grow the business so
everyone is productive. If you have the option to grow the business to a level you can justify the
staff you have, then pursue that option. 17
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Reflecting on the results of the transformation much later, Wahid observed,
Within 18 months the business had grown so fast there was no need to retrench staff… Maybank
became the most valuable company listed on Bursa Malaysia. 18
To ensure that the human capital was capable of carrying out the Bank’s strategy, Wahid first
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communicated the imminent threat to the Bank’s leadership in the industry, creating a ‘burning
platform’ about the urgent need for change in the way business was being done. Second, he hired
senior management from outside the bank who would be able to drive the change that was needed to
achieve its objectives. One of his first new hires was Nora, who joined as Senior Executive Vice
President, Human Capital, in October 2008.
Nora joins Maybank

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Nora herself came in with a broad swath of industry experience. A trained accountant who had
studied Human Resource Development at Cornell University, Nora had worked in the
14
Amy Duff, “Profile: Tan Sri Abdul Wahid Omar”, Economia, May 8, 2017, https://economia.icaew.com/features/may-2017/profile-
tan-sri-abdul-wahid-omar, accessed March 2018.
15
Ibid.
16
Ibid.
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17
Ibid.
18
Ibid.
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telecommunications and semiconductor industries early in her career. 19 She then rotated through
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different HR roles within Asia and in London with Standard Chartered Bank, before taking up
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Wahid’s offer to join Maybank. 20
Nora’s early days at Maybank were not always smooth. As an outsider, she had to convince senior
management that as part of the Executive Committee, she could do the job. She recalled,
With 48 years of operating very much with a country focus and then taking on other MNCs who
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are 100 years ahead of them, Maybank has become the number one bank in Malaysia. This is a
proud organisation, and rightly so; it’s earned that right. The organisation and its people would
therefore question – who was I to come in and tell them what to do?
Nora had to establish her credibility with her executive committee members before she could put any
change recommendations forward. However, she persisted, eventually overcoming resistance to her
ideas. She explained how she managed to win the acceptance of her senior management peers,
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You have to know your stuff – you can’t wing it. Knowing your stuff means knowing the business
of Maybank, and not just the HR component. If you’re supposed to represent the knowledge on
human performance and workplace effectiveness and its impact on the business, and if you don’t
have it, then you don’t have the right to be at the table.
Group Transformation
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In July 2009, Wahid announced that Maybank was undertaking a massive programme, LEAP30
(Lead, Execute, Achieve, Progress), that would entail a “group-wide transformation of people,
processes and systems” (refer to Exhibit 2 for LEAP30 objectives).
LEAP30 was Maybank’s performance improvement programme to achieve the Group’s vision to
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become a leading regional financial services group by 2015, focusing on three strategic thrusts: 21
• Secure Maybank’s position as the undisputed leader in financial services in Malaysia
• Strengthen regional presence through enhancing the quality of operations in seven out of 10 Asean
countries Maybank operated in, whilst continuing to look for opportunities in other lucrative growth
markets in the region
• Become a talent and execution-focused company
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Under the Transformation programme, 30 initiatives were identified in nine areas of the bank,
including human capital, finance, operations and the different business lines. Wahid explained,
19
Profile of Puan Nora Abd Manaf, August 24, 2016, http://mcba.my/member/web/bundles/mcba/files/profile-of-puan-nora-abdul-
manaf.pdf, accessed March 2018.
20
Crunchbase, “Nora Abd Manaf”, https://www.crunchbase.com/person/nora-abd-manaf, accessed March 2018.
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21
Aditi Sharma Kalra, “Banking on a New Way of Working”, Human Resources, August 28, 2015,
http://www.humanresourcesonline.net/features/qa-nora-abd-manaf-maybank/, accessed February 2017.
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Through LEAP30, we have begun to realign our operations, re-engineer organisational
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processes as well as build a high-performance talent pool that will serve as the foundation for
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sustainable growth in the future. 22
Within the first year of implementation, 16 of the 30 identified initiatives of LEAP were under way,
and had borne fruit, bringing about RM183 (US$45) million in additional pre-tax profit and cost
savings for the bank. 23
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Humanising
Of the 30 transformation programmes, many were focused on People and Performance. Maybank
was aware that the day-to-day impact of people and culture carried a lot of weight; therefore, all its
people initiatives were guided by its Five People Pillars (refer to Exhibit 3 for the five People Pillars).
These People Pillars were also aligned with Maybank’s mission to Humanise Financial Services.
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Humanising was conceived of in terms of being closer to the communities that the bank operated in,
and helping its customers achieve their aspirations. Humanising human capital within the bank would
mean making employee development a top priority. Training employees, empowering them, and
aligning them with the bank’s vision and mission, would make it easier to execute the business
strategy. As Nora explained,
Humanising is about the customer (staff) experience, together with speed and low cost.
Humanising is not just a word. You can’t tell people to do unto others when things are not done
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unto them. We have a number of pillars of humanising from a staff’s standpoint. We check if we
are really acting on these five pillars at any time, e.g. respect, fairness and transparency.
Two phases of Transformation
LEAP30 was carried out in two phases. Phase I, which was carried out from 2009-10, was dubbed
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‘creating the momentum’. It aimed to put in place the organisational structure and lay the ground for
building organisational capability by increasing the project execution capabilities and human capital
development of the bank. 24
In July 2010, the bank reorganised itself into a structure called the ‘House of Maybank’, in order to
drive the three key businesses regionally—Community Financial Services, Global Wholesale
Banking and Insurance and Takaful. 25 The new structure would encourage greater cross-border
cooperation to bring about increased cross-selling and bundling of products and services to customers
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(refer to Exhibit 4 for the House of Maybank organisational structure).
22
Annual report 2009, Annual Reports, Maybank, https://www.maybank.com/en/investor-relations/reporting-events/reports/annual-
reports.page?, accessed March 2018.
23
Ibid.
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25
Ibid.
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Phase II of the Transformation, which lasted from 2010-15, was called “converging aspirations”, in
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which the bank’s businesses would individually drive their own initiatives, as well as capture cross-
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business synergies, to facilitate bank-wide performance. 26
The bank projected to have more than 40% of its pre-tax profits derived from operations outside of
Malaysia by the end of the Transformation programme in 2015. 27 At the beginning of 2014,
Maybank again revamped its structure to strategically enable its regional expansion. The new
structure was intended to enable better collaboration across countries and deployment of resources
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across the region.
Human Capital Transformation
First steps
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Overseeing massive change
To oversee the implementation of HR initiatives, Nora started two units. The Overall Transformation
Office unit tracked milestones that were set at the start of the programme. The Group Human Capital
Change management unit was managed directly out of Nora’s office as she felt that the ability to
respond with agility and granularity was critical. In her view, decision making and implementation
of changes had to be quick when scenarios changed, or reinforcements were needed.
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Reorganising the HR function
In 2008, Nora reorganised Group Human Resources to drive change more effectively within the
bank. 28 A Centre of Expertise would provide advisory and functional expertise on HR solutions,
policies and governance for the bank. Business HR units would provide HR solutions that integrated
well with the Bank’s structure, to ensure that business targets were met.
A dedicated Shared Services Centre was also set up, which comprised a one-stop centre for
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consolidated services including payroll, benefits, data management, and a recruitment centre to
enhance capabilities in recruiting in an effective and speedy manner.
Human capital objectives

Nora’s goal was to make Maybank the top quartile employer of choice in the markets in which it was
present. Her primary objectives were: to improve Maybank’s capability to attract the right talent,
inculcate a high-performance culture, reward and recognise excellent performance, and develop and
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build a strong leadership pipeline. 29
To do so, a HR transformation roadmap was drawn up to ensure a holistic approach to drive

workforce transformation in three principal areas – people policies, product and processes; manager
and employee interaction; and work environment. 30
26
Ibid.
27
Ibid.
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28
29
Ibid.
30
Ibid.
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Implementing Change to Support Business Strategy
Growth for the bank and our employees meant getting all on board to do the right things right,
building meaningful relationships with one another and our customers, for all to thrive.
- Nora Abd Manaf
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Nora’s People Transformation Plan was mapped out at the end of 2008. 31 It was deliberately
formulated to carry out and support the bank strategy and mission, both in terms of spirit and
substance. It entailed first a review and admission of HR policies and processes to understand what
was not working well, and what needed to be fixed, replaced, or created in order to meet Group
objectives and sustain them.
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Encouraging change in the right direction - Culture
Nora was very sure that values and culture were the bedrock for change. Establishing organisational
performance improvement could only happen if the foundational values of the organisation were
strong and the employees lived by them. The imperative for the Maybank Group was to change, and
the change had to start internally.
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The key attributes of the Maybank culture and values were summarised in the acronym ‘T.I.G.E.R.’
which stood for ‘Teamwork, Integrity, Growth, Excellence and Efficiency, and Relationship
Building’. The tiger, Malaysia’s national animal, 32 symbolised strength, grandeur and pride,
characteristics that Maybank wanted to be synonymous with—a symbol of pride as the country’s
largest bank, and also a company that its customers and employees were proud to associate with.
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Enabling and empowering Maybankers to deliver value and difference was a priority. Interventions
were emplaced to drive the right behaviours across the Group, which included strengthening the
performance management system, breaking silos through team effectiveness programmes and
coaching, programmes to improve technical, function or product knowledge, succession planning
and skills pipelines.
HR policies were simplified, those that were outdated were eliminated, while new ones were created
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to reflect the TIGER values. Changes to the Delegation of Authority (DOA) and Terms of Reference
(TOR) were approved by the Board in 2009. These changes gave more autonomy to management to
address people-related issues, transforming how work was done in the Group, i.e., reduced
turnaround time in processing and approving facilities. Upskilling and capacity-building programmes
were also redesigned and implemented to support this transformative phase via a combination of
training, on-the-job coaching, learning clinics, Brown Bags and workshops. An enhanced total
31
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32
Malaysian’s Pride, http://butterfly-insect.com/blog/malaysians-pride/, accessed March 2018.
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rewards framework was implemented to drive high performance and delivery of results. Workshops
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were introduced and compensation spreadsheets implemented to empower line managers to manage
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and reward staff accordingly. Greater line manager ownership was key to encourage ownership,
engagement and greater growth (refer to Exhibit 5 for the TIGER values). 33 Nora explained,
The work culture had to evolve to allow Maybankers to realise their ambitions and excel while
ensuring that our TIGER did not change its stripes and that our values continued to be integral
to the Maybank way of life, ideals that drive what we do and how we do it.
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Communication
During the transformation process, constant and clear communication on the Bank’s vision, mission,
actions and expectations of employees were a top priority for the Group executive committee (EXCO)
and senior management. 34 The Group EXCO led mandatory training curricula, which included
leaders-teaching-leaders series, conversation and dialogue series, learning interventions, and
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coaching. The EXCO was also involved in employee engagements, such as quarterly CEO-led group
townhalls, and regional and sectorial roadshows, to reinforce ways of working and addressed pain
points swiftly.
Group EXCO also practiced constant engagements to listen and act on employee feedback and
suggestions through multiple forums and platforms. Besides, employees had opportunities to engage
with management through many formal and informal sessions, including regular emails from the
President & CEO, updates on the employee portal, responding to feedback on the ‘ask senior
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management site’, teh tarik (tea) sessions, roadshows, C-suite conversation series sessions and visits
to the business units. This also included monthly effectiveness measurement indicators, and a yearly
employee engagement survey (EES). 35
Leadership values
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Maybank’s leadership talent competencies were newly defined at the onset of the business
transformation process and measured against the Group’s set of leadership competencies known as
S.E.A.R.C.H. (Strategic Visioning, Engaging and Developing Talent, Spirit of Achievement,
Cultivating Relationships, Customer-Centricity and Innovation and Change). It was reviewed and
updated again in 2014 to S.E.A.R.C.H. PLUS, which also measured benchmarks like global acumen,
navigating complexity, and raising the bar. There was a continual process of updating these
competencies to constantly ensure that they were leading (as opposed to lagging) predictors of talent
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success. Nora explained,
It is our internal “ruler” used for development, coaching, mentoring and succession planning
and, equally critical, preparing our employees to be productive and responsible leaders of today
and tomorrow.
33
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34
Ibid.
35
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Increasing Internal Visibility
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Dashboards
Within the HR function, the policies and practices that had worked well for Maybank as a local player
were no longer sufficient or effective given the bank’s ambition to be a regional player. A centralised
People Database that enabled better visibility of talent within the Group was created and rolled out
in 2009. This was in contrast to the erstwhile, more decentralised model that was highly reliant on
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manager sponsorship. Complementing this, a monthly People Dashboard (related to the internal
Talent Management Framework) was introduced in monthly EXCO and Management meetings in
2009. This provided a standard and consistent discipline of data capture, tracking and reporting of
key performance metrics.
The HR Shared Service Centre began tracking predictive indicators. This was a conscious decision
made to directly steer HR policies to ones that were progress-enabling, and not only about operational
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mastery. In time, the HR function was regarded in a better light by internal customers, and the
improved relationship brought about better work outcomes.
Enhanced Talent Management Framework
An enhanced version of the integrated and systematic Talent Management Framework (TMF) that
was launched in 2009 aimed to ensure the sustainability of Maybank’s talent pool by continuously
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attracting, developing and retaining the right talent. Apart from ensuring that talent progression was
consistently tracked and reviewed through multi-level talent reviews, and that individual
development plans were implemented, Nora ensured that the bank’s people policies and practices
were aligned with its promise to humanise people management and development.
In 2009, a Talent Classification Matrix was introduced into the TMF to enable line managers to
classify their employees according to their performance levels and potential. Promising talent,
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identified by their managers, was then evaluated twice a year by a Sectorial Talent Review
Committee, which was chaired by the business sector head and factored into the annual budget
process.36
In 2011, to meet the Group’s regional need for talent, the Talent Management System was rolled out.
The expanded platform provided a consolidated view of staff skills, achievements and career
aspirations, and also helped the bank identify the best qualified individuals for any given position in
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the region. Employees were evaluated, not only through a Sector Talent Review, but also a Country
Talent Review and Group Talent Review process. The increased visibility across countries through
the multi-level talent review platform enabled greater number mobility and accelerated development
of talent. 37 As a result, by 2012, inter-sectoral transfers increased from 9% to 16%. 38
36
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37
38
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Succession planning
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The enhanced talent management process also facilitated succession planning across the bank with
more transparency and effectiveness. Maybank’s target to grow their internal talent by filling eight
out of every 10 vacancies with internal talent was achieved, with more than 70% of vacancies filled
internally in 2013.That year, more than 100 staff were deployed in cross-border assignments and
regional projects, a steep rise compared to 54 in 2012 and 11 in 2011. 39
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Performance Management and Compensation
Performance management
Besides recruiting top talent in the region, Nora wanted to aptly retain and reward employees, so that
they could grow with the Bank. In order to be an employer of choice, Nora reviewed the Bank’s
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compensation philosophies. This resulted in a performance management process and talent reward
system that was rigorous, reflected the bank’s culture and values, and encouraged and reinforced
behaviour that was aligned with its objectives. 40
In 2012, the Performance Management System and Balanced Scorecard (BSC) were enhanced to
empower staff to take more ownership of their careers and have a greater line of sight of their
contributions to the Group, while maintaining alignment with the Group’s Key Performance
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Indicators (KPIs). 41 The enhancements included replacing the 5-point scale with Met/Not Met for a
maximum of eight KPIs and Core Values rated as Demonstrated/Not Demonstrated without
weightage. Performance Management was also more focused on agreed impact between staff and
line manager.
In order to instil a pay-for-performance, meritocratic culture, Maybank’s total rewards strategy was
carefully tied to business strategy to achieve a twofold objective—ensure profitability and value to
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shareholders and be able to attract, retain and motivate employees to improve their performance and
grow their careers at Maybank (refer to Exhibit 6 for the elements of the total rewards strategy). 42
The rewards were structured to encompass both monetary and non-monetary incentives. Basic pay
was competitively benchmarked against the market, and total compensation included short-term and
long-term incentive pay-outs. 43 Non-monetary benefits included medical and health benefits, and
work experience-related recognition such as long-service awards and career development paths. 44
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39
40
41
42
43
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44
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Employee Development
Training and development of staff was a very high priority for Nora. In 2012, the Group invested
RM100 million (US$24.62 million) in learning and development programmes. Staff training
expenditure stood at 3.17% of total gross salary, far surpassing Bank Negara Malaysia’s minimum
requirement of 2.5%. In 2012, Maybank launched 280 e-learning courses, including 15 new syllabi,
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were offered with 108,558 enrolments. 45
Group Organisational Learning (GOL), also under Group Human Resources, prescribed a ‘70:20:10’
- 70% experiential, 20% relationship-based, and 10% formal learning - philosophy for employee
development. Experiential learning included assigning employees to new projects or providing them
international exposure. Relationship-based training included mentoring, buddy programmes, and
conversations with leaders. Formal learning was through platforms that included the MyCampus
yo
online e-learning portal, Maybank Academy (for customised courses, mainly for the SEARCH
competencies), and external programmes. 46
Employee Welfare
It all comes down to enabling realisations, creating the right climate with progressive policies
and interventions that help people work and engage whilst entrusting them to make good on what
op
has been delivered for them. Effectively, all the efforts were about co-creating for a shared future.
- Nora Manaf
On top of shaping the HR processes and policies to motivate employees to perform and align their
behaviours with strategy, Nora put in place measures to improve their quality of work life. This was
part of her promise to enable employees to manage work and life so that they could perform their
tC
roles effectively whilst in the workplace.
Recruitment
Nora streamlined the recruitment process by transforming the recruitment function into one
centralised ‘talent factory’. This was to enable reaching out to and attracting the best talent with a
consistent experience. 47
No
In order to find exceptional talent, Nora decided to employ non-traditional recruiting methods:
• An award-winning international case competition, Maybank GO Ahead Challenge (MGAC), to

spot diverse, global talent. The uniqueness of the MGAC was that it exposed candidates to real-
45
Do

46
Ibid.
47
12/20
life pressures and expectations of a high-performing organisation, challenging participants in
t
both financial and non-financial disciplines.
os
• Junior and entry development programmes that included the High Potential-Performer Integrated
Programme, the Branch Manager Entry Level Programme and the Global Management
Apprentice Programme. The latter was an entry-level programme that offered two-year rotational
opportunities and best-in-class learning, and development through on-the-job training and
international assignments.
rP
To improve recruitment and external branding of the Group, Maybank invested in schemes and
initiatives that re-introduced the Group to the market from an employer perspective. For example, in
2012, Maybank created an Employer Value Proposition (EVP) to express its humanising mission and
differentiate itself as an employer of choice. Its ‘GO Ahead’ EVP was both a mantra and statement
of intent: Maybank goes beyond keeping promises to exceed expectations. GO Ahead Create, GO
Ahead Grow, GO Ahead Lead and GO Ahead Fly. 48 The Maybank brand was also rejuvenated within
the organisation. In 2011, a Brand Advocacy Initiative was launched to further clarify the identity of
yo
the Maybank brand. Employees were guided on how to use humanising as an impetus and rationale
for their actions. 49
Results of the Transformation and Looking Ahead
In 2013, Wahid left his position as Maybank CEO following a surprise offer by the Malaysian Prime
op
Minister to join his cabinet and give a private sector viewpoint on Malaysia’s future economic
development. 50 Nora stayed, and in her capacity as Group Chief Human Capital Officer and Group
EXCO, she continued the effective execution of the Transformation plan she designed from the start.
By the end of 2015, the Transformation plan had yielded many positive results for the bank.
Financials
tC
By 2015, Maybank Group had expanded its footprint to all 10 ASEAN countries. Apart from
being the leading Islamic bank in ASEAN and Malaysia, it was also one of the top Islamic banks
globally. Greater synergies were forged within its regional network and the company recorded
higher revenues from cross-selling of products and solutions to its clients.
Revenues for 2015 stood at RM40,556 (US$9,985) million, more than double that of
No
RM18,560.2 (US$4,570) million in 2010. Pre-tax profit was RM 9,152 (US$2,253) for the same
year, up 70% from RM5,370.4 (US$1,322) million in 2010. 51
48
49
Ibid.
Do
50
Amy Duff, “Profile: Tan Sri Abdul Wahid Omar”, Economia, May 8, 2017, https://economia.icaew.com/features/may-2017/profile-
tan-sri-abdul-wahid-omar, accessed March 2018.
51
Annual reports 2010 and 2015, Annual Reports, Maybank, https://www.maybank.com/en/investor-relations/reporting-
events/reports/annual-reports.page?, accessed March 2018.
13/20
The bank continued to chalk up improvements in its people’s performance given its disciplined
t
approach from the onset of transformation to raise productivity. Income per employee and profit per
os
employee showed a steadily increasing trend from 2012 (refer to Exhibit 7 for figures).
Employee responses
Maybank’s staff engagement score had significantly improved since 2008. The results showed that
staff understood the rationale for being a truly regional organisation with a favourable rating of 86%
rP
in 2014, which further increased to 89% in 2017.
As a recruiter, the increasing number of submissions in the MGAC every year attested to the visibility
of the Maybank brand. Introduced in 2012, MGAC attracted 1,000 applicants in its first year, rising
to 5,000 in 2013, 10,000 in 2014, 23,000 in 2015, over 37,000 in 2016 and, in 2017, 40,000
applicants.
yo
Conquering the future
On 7 April 2016, Maybank published its 2020 strategic objectives on back of the results of the
Transformation programme that was completed in 2015. In it, the new Group President and CEO,
Datuk Abdul Farid Alias, declared that one of the bank’s ambitions was to be the ‘digital bank of
choice’ for its customers, 52
op
Today, everyone is talking about digitisation and the banking industry is witnessing a breed of
digital players encroaching into the traditional banking business. Our customers are also
changing the way they interact with us, as they are even more digitally savvy. How aptly and
quickly we respond and adapt will determine the fate of the Maybank brand in the future.
For Nora, her role and her task going forward was clear. She explained,
tC
The banking landscape is shrinking in the physical world whilst growing dynamically in the
digital world, emphasised by the push in Fintech. For this, it requires us to ready our employees
now with the skills and capabilities to operate successfully and ethically in these times. No one
will be spared from the disruptions that are around.
Getting the Maybank house in order was just the first step. There was much work to be done to
prepare the organisation for the imminent waves of change coming.
No
Do
52
“Maybank Outlines Its 2020 Strategic Objectives”, Maybank, April 7, 2016, http://www.maybank.com/iwov-
resources/corporate_new/document/my/en/pdf/corporate-news-release/2016/AGM2016FINAL.pdf, accessed March 2018.
14/20
EXHIBIT 1: SHARE PRICE CHART AND FINANCIALS OF MAYBANK FROM 2007-17
t
os
Maybank share price (in MYR)
rP
yo
Source: Yahoo! Finance, accessed 15 March 2018.
Maybank Income Statement

S
op
tC
No
Source: Malayan Banking Berhad Group, S&PCapitalIQ database, via SMUPyxis, accessed March 2018.
Do
15/20
t
EXHIBIT 2: LEAP30 INITIATIVES
os
rP
yo
op
tC
No
Do
16/20
t
os
rP
yo
op
tC
Source: Annual report 2009, Annual Reports, Maybank, https://www.maybank.com/en/investor-

relations/reporting-events/reports/annual-reports.page?, accessed March 2018.
No
Do
17/20
EXHIBIT 3: HUMANISING MISSION: FIVE PEOPLE PILLARS
t
os
YOU Matter Go Ahead. Grow Diversity & Respect & Dignity Fairness &
Inclusion Transparency
We listen when you You are You are valued for We show the same We strive to
speak. Act on encouraged, helped, who you are and respect to anyone, ensure you are
feedback. And supported and what you bring to regardless of level, informed. We
make time to enabled when you the team, and we race, age. We are encourage you to
explain decisions. want to learn, look for your ethical in our seize
rP
develop and grow. uniqueness and dealing. And we opportunities.
embrace different have honest, open
views. and trusting
conversations with
you.
Source: Maybank
yo
EXHIBIT 4: HOUSE OF MAYBANK ORGANISATIONAL STRUCTURE
op
tC
No

Do
18/20
EXHIBIT 5: TIGER VALUES
t
os
rP
yo
op
tC
No
Do
19/20
EXHIBIT 6: ELEMENTS OF THE TOTAL REWARDS STRATEGY
t
os
rP
yo
EXHIBIT 7: INCOME PER EMPLOYEE AND PROFIT PER EMPLOYEE 2012-2016
Profit before tax

Year/US$ Income per employee
per employee
op
2012 88,024 41,152
2013 95,546 45,713
2014 96,988 47,690
2015 113,777 49,027
2016 124,646 49,518
tC
Source: Maybank
No
Do
20/20

Maybank: Organisational Transformation Through Human Resources

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What were the challenges faced by Maybank in 2008?

What were the challenges faced by Maybank in 2008?

What were the steps taken by Maybank to transform its HR strategy?

What were the steps taken by Maybank to transform its HR strategy?

t

Copyright © 2019, Singapore Management University Version: 2019-05-10

External and Internal Crisis

http://www.theedgemarkets.com/article/special-report-maybank’s-indonesian-bet-pays, accessed September 2018.

Nora joins Maybank

Through LEAP30, we have begun to realign our operations, re-engineer organisational

Two phases of Transformation

(refer to Exhibit 4 for the House of Maybank organisational structure).

reports.page?, accessed March 2018.

Human Capital Transformation

Human capital objectives

build a strong leadership pipeline. 29

To do so, a HR transformation roadmap was drawn up to ensure a holistic approach to drive

- Nora Abd Manaf

reports.page?, accessed March 2018.

success. Nora explained,

reports.page?, accessed March 2018.

Increasing Internal Visibility

Enhanced Talent Management Framework

roles effectively whilst in the workplace.

• An award-winning international case competition, Maybank GO Ahead Challenge (MGAC), to

reports.page?, accessed March 2018.

life pressures and expectations of a high-performing organisation, challenging participants in

Results of the Transformation and Looking Ahead

EXHIBIT 1: SHARE PRICE CHART AND FINANCIALS OF MAYBANK FROM 2007-17

Maybank Income Statement

Source: Annual report 2009, Annual Reports, Maybank, https://www.maybank.com/en/investor-

EXHIBIT 3: HUMANISING MISSION: FIVE PEOPLE PILLARS

Source: Annual report 2012, Annual Reports, Maybank, https://www.maybank.com/en/investor-

EXHIBIT 5: TIGER VALUES

EXHIBIT 6: ELEMENTS OF THE TOTAL REWARDS STRATEGY

EXHIBIT 7: INCOME PER EMPLOYEE AND PROFIT PER EMPLOYEE 2012-2016

Profit before tax

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