Culture Transformation

Client Success Story: Culture Transformation


The client was a Federal Home Loan Bank that provides discounted lending to community banks. Because the bank is a government sponsored organization, the bank's culture had a low emphasis on the profit motive and a relaxed culture with a strong emphasis on customer satisfaction. The new CEO believed it was necessary to strengthen the balance sheet to ensure the bank would be in a position to support their client members when times got tough. The CEO established a business strategy with an emphasis on managed profitable growth. He recognized that to achieve his strategic goals, he would need to create conditions where people could do their best work.


ISG was asked to lead a culture transformation that would result in a higher level of employee engagement. The leadership team agreed that the overarching purpose was to develop a culture of Partnership. A survey was developed to establish a baseline and to identify areas for improvement.

To ensure the change was sustainable, ISG suggested an infrastructure that included performance measurement ScoreCards (relevant information), reporting (performance feedback), results analysis, action planning and implementation, and variable pay linked to improved outcomes.

A format for conducting department-level action meetings was established. It provided employees with the autonomy to select and work on the issues they determined were the most important. Department action teams (DATs) were equipped with basic analysis and problem solving tools such as brainstorming, prioritization and flowcharting. During an 18 month period the DATs implemented 250 Action Plans.


  1. Year 1: Net Income improved by 26.4%
  2. Year 2: Net Income improved by 13.0%
  3. Year 3: Core Earnings improved by 22.1%

Employee Engagement Results
Baseline 18 mo 36 mo
   1. Learning Organization 66.5 79.4 80.6
   2. Roles 64.8 73.8 75.5
   3. Business Understanding 71.3 77.0 77.3
   1. Systems/Processes 61.6 72.9 73.2
   2. Work Environment 58.2 73.1 72.5
   3. Participation 56.5 72.0 71.6
   1. Authority 55.4 71.6 71.0
   2. Customer Satisfaction 80.2 85.2 83.4
   3. Results Orientation 69.3 77.7 77.0
   1. Rewards 59.0 72.7 72.5
   2. Employee Satisfaction 59.7 72.0 73.9
   3. Goals & Objectives 70.6 76.7 76.5
Overall Score 64.4 75.4 75.2