Millars BankCase Study

LOÏC MAILLARD

KEVIN LEBLOND

Table of Contents

I. Overview

II. Current Situation

III. Statement of Problems

IV. Options

V. Discussion

I. Overview

Takes place in 1994 Saudi Arabia, Middle East - UAE Millars Bank

British Bank in Saudi Arabia

Millars Bank’s branch in Saudi Arabia is seeking a new Corporate Loan Officer

I. OverviewWomen in Abu Dhabi

Very traditional, Muslim based Culture

Women account for 1-2% of the UAE’s high executive positions, 20% hold administration positions, 35% are in the national workforce, and 80% are classified as household workers.

However, progress is being made: The percentage of female employees quadrupled between 1980 and 1990,

with the total number of national females working in all fields reaching 100,000 by 2010

The right of UAE women to take part in the development of all areas of their society is laid out in the UAE Constitution, adopted when the federation was founded in 1971

Social justice should apply to all and that, before the law, women are equal to men.

I. OverviewCharacters

Mr. Duncan Vice President

Mr. SmothersBank Manager

Ms. MarshNew Loan Officer

Head Office – London, UK

Millars Bank – Abu Dhabi, UAE

I. OverviewExhibits

Dialogue between Mr. Smothers and Ms. Marsh

Series of faxes exchanged between Mr. Smothers and Mr. Duncan

Janet Marsh’s CV

Letter from Ms. March to Mr. Smothers

I. Overview : Exhibit n°1 Dialogue between Mr. Smothers and Ms. Marsh

Mr. Smothers and Ms. Marsh are meeting in Mr. Smothers's office in Abu Dhabi.

Smothers: Miss Marsh, I frankly don't know what to say. I would have thought, with your obvious knowledge of the Middle East, that you would have disqualified yourself from this position.Marsh: Mr. Smothers, I understand what you're trying to tell me, but I really don't see that we have a problem. Believe it or not, when I was first transferred to Cairo five years ago, John, John Phillips, the manager there, had very much the same reservations you have today.Smothers: I know John. Know him very well.Marsh: Well, it worked out beautifully…Smothers: But, Egypt is not Abu Dhabi. Egypt is progressive, very liber al, women are acknowledged as professionals. But in the Emirates .Marsh: You don't want me to stay.Smothers: It's not me. Please understand that I would be delighted to have you stay. But, but, I can't imagine, Miss Marsh, how you could

do your job. Our clients are conservative, traditional. They expect their principal loan officer to be a man. They won't do business with us. They won't take us seriously.

Marsh: Why not?Smothers: They just won't. It's simply not done. Unheard of, even.Marsh: With all due respect, I think you're vastly mistaken.Smothers: What?Marsh: That's right. Mistaken. Our clients come to our bank to borrow pounds in order to finance projects that must be paid in pounds. Nothing more, nothing less. What they are looking for is a loan officer who can place their loan at a competitive interest rate and in short order. Isn't that correct?

I. Overview : Exhibit n°1

Smothers: Yes. And no.Marsh: Why no?Smothers: Miss Marsh, you've been in corporate banking long enough to realize that personal relations between a client and a lending institution are vitally important. I, I can't see how our clients could, would relate to you. And we're not the only bank in town either. Why, just in Abu Dhabi alone there are at least two dozen foreign banks with whom we are in direct competition, not to mention the other two dozen Emirate-owned banks plus all the other foreign banks with represen tatives on restricted licenses who also can occasionally take business away from us.Marsh: Mr. Smothers, I am well aware of competition and the role of the loan officer. I am so well aware, in fact, that I feel that I can be as

effective, or more effective, than I was in Beirut and Cairo. I understand the Middle East. I've lived here for many years. I speak, read, and write Arabic. I know the customs, the religion, the history, and, most importantly, the business of business. How many other loan officers are fluent in Arabic?

Smothers: Not many. I'm not even myself. But that has not been a disadvantage.Marsh: Has it been an advantage?Smothers: No, I can't say that either.Marsh: Besides, Mr. Smothers, let me remind you that this is a British bank, not an Arab bank and . . .Smothers: But a British bank in an Arab country.

Dialogue between Mr. Smothers and Ms. Marsh

I. Overview : Exhibit n°2 Series of faxes exchanged between Mr. Smothers and Mr. Duncan

DATE: 18 July 1994TO: P. SMOTHERSFM: W. DUNCANRE: REPLACEMENT OFFICER

J. L. MARSH, REPLACEMENT FOR MATHERS, ARRIVING 1 AUG FOR ASSIGNMENT 15 AUG. MARSH FORMERLY CORPORATE LOAN OFFICER, BEIRUT AND CAIRO. FLUENT ARABIC. HIGHLY SUCCESSFUL IN FORMER POSITIONS. CREDITED WITH EXPANDING CAIRO LOAN OPERATIONS BY 30%. SHOULD BE ABLE TO ASSUME EXTENSIVE DUTIES IN MINIMUM TIME. PLEASE REPLY UPON MARSH ARRIVAL.

CORDIALLY,DUNCAN

Fax from Smothers to Duncan:

JANET MARSH ARRIVED YESTERDAY. HAVE SERIOUS DOUBTS AS TO HER ABILITY TO PERFORM DUTIES ADEQUATELY GIVEN STRONG TRADITIONAL ARAB CULTURE HERE. PLEASE ADVISE ASAP.

Fax from Duncan to Smothers:

PLS CLARIFY MESSAGE RE MARSH.

Fax from Smothers to Duncan:

CLARIFICATION REGARDING JANET MARSH: FEEL ARABS WILL NOT DEAL WITH WOMAN LOAN OFFICER. EMIRATES VERY TRADITIONAL, NOT ACCUSTOMED TO FEMALES IN BUSINESS. COULD SERIOUSLY JEOPARDIZE OPERATIONS. PLEASE ADVISE.

I. Overview : Exhibit n°2 Series of faxes exchanged between Mr. Smothers and Mr. Duncan

I. OverviewExhibit n°3

Janet Marsh’s CV

I. Overview : Exhibit n°4 Letter from Ms. March to Mr. Smothers

Dear Mr. Smothers:In relation to our conversation of yesterday, I feel some further clarification of my position is desirable.Let me assure you, first, that I did not apply for this position in order to create a “test” case regarding the employment of women in executive positions in the Arab world. It is simply that the qualifications posted for the position were ideally suited to my talents.

Let me also assure you that I gave considerable thought to the possible complications involved, but I felt, and still feel, that my own administrative skills are sufficient to overcome objections that arise initially from our predominantly Arab clientele. My positions in both Beirut and Cairo have taught me much about how to proceed in the Middle East, and I trust I can draw on those lessons to ensure a smooth and speedy transition from Cairo to Abu Dhabi.

In Cairo I worked with a number of Saudi clients and, in general, had friendly and excellent relationships with them. Although they were certainly traditional in their social views, I found them to be extremely progressive in their business outlook. This progressive viewpoint extended to our client/banker relationship, where I was seen as “a banker”. Their attitude was quite clearly one of financial pragmatism, i.e., if Millars employed me in such a position, I must be qualified.

I. Overview : Exhibit n°4

Additional anecdotes abound; however, in most of them “financial pragmatism” was more important than “cultural tradition”. Had I been an Arab woman, things might have been different, but as an Englishwoman working for an English bank, I have been allowed to stand outside the “cultural tradition”.

In conclusion, Mr. Smothers, I simply urge you to grant me the opportunity to serve Millars Bank in Abu Dhabi. If my performance is not satisfactory, I promise to step down from the position within ninety days.I thank you in advance for your consideration.

Very truly yours,J. L. Marsh2 August 1994

Letter from Ms. March to Mr. Smothers

Millars Bank is an International British Bank with branches around the world

The Abu Dhabi Branch needed a new Loan Officer

Millars’s Head Office in London recommends a certain « J. L. Marsh »

Mr. Smothers, Bank Manager of Millars Abu Dhabi thought it was a man

Very traditional culture in the Middle East : The Bank Manager is worried as to how women are perceived

II. Current SituationKnown facts

II. Current SituationIntercultural differences

Strengths Weaknesses

• Mr. Smothers− Local Employee− Knowledge of local Culture

• Ms. Marsh− English woman − Speaks Arabic fluently− Has already worked in Arab

Countries− Already had Saudi Clients

• Mr. Smothers− Does not speak Arabic

• Ms. Marsh− Is a woman – Conflict with

local culture

II. Current SituationManagement

Strengths Weaknesses

• Mr. Smothers− Has worked in the branch for several

years

• Ms. Marsh− Many experiences− Highly qualified for position− Has worked for over 12 years at Millars

Bank− Worked alongside a good friend of Mr.

Smothers, John Phillips in Cairo− Head Office recommends/approves her− Motivated & determined

• Mr. Smothers− Stubborn− Not willing to take the risk− Did not notice/Know beforehand

that the replacement officer was a woman

• Millars Bank− Sent a replacement officer without

taking into account local culture− Decisions come from the top, local

manager did not have a say

II. Current SituationCommunication

Strengths Weaknesses

• Millars Bank− Apparent lack of communication between

Head Office and local branch− Local branch Manager did not have a say

in the Head Office’s decision− Usage of Faxes inefficient (But we’re in

1994)

III. Statement of Problems

Ms. Marsh is very qualified for the position of Loan Officer, but Mr. Smothers is worried faced to the local culture.

Apparent flaws in internal communication, as Mr. Smothers did not know the candidate was a women.

Head Office did not take into account local culture

IV. Options1st solution

Status Quo – No changes, Ms. Marsh integrates Millars Bank Abu Dhabi

Advantages Disadvantages

• Compliance with initial decision

• No additional time lost for recruitment

• Arab speaking Loan Officer

• May create tension/conflicts with M. Smothers

• Possible client loss

IV. Options2nd solution

Accept Ms. Marsh’s proposal: Start with a trial period, and will step down if non conclusive

Advantages Disadvantages

• Ms. Marsh integrates Millars Bank

• Arab speaking Loan Officer• Additional challenge for Ms.

Marsh, that will increase her effectiveness

• Complies with Head Office decision

• She will step down on her own if not successful

• Possible Client loss• If this doesn’t work, they will

have to recruit someone else

IV. Options3rd solution

Pair Ms. Mash with a Arab speaking/local man

Advantages Disadvantages

• Keep Ms. Marsh experience & Knowledge

• No cultural conflict – The man will be in charge of clientele

• Additional cost ( Recruitment and salary)

• Must find a compatible partner

IV. Options4th solution

Keep Ms. Marsh in the organization but transfer her to another branch

Advantages Disadvantages

• Ms. Marsh will still work for Millars Bank

• No Loan Officer in the Abu Dhabi branch

• Need to find someone else (Additional costs)

• Does not comply with initial decision

IV. Options5th solution

Comply with local culture – Fire Ms. Marsh

Advantages Disadvantages

• No cultural conflict • Loss of a good asset• Time & money consuming –

Need to find a replacement• Conflict with Head Office

IV. OptionsOur recommendation

2nd solution Accept Ms. Marsh’s proposal: Start with a trial period, and will step

down if non conclusive

Advantages Disadvantages

• Ms. Marsh integrates Millars Bank

• Arab speaking Loan Officer• Additional challenge for Ms.

Marsh, that will increase her effectiveness

• Complies with Head Office decision

• She will step down on her own if not successful

• Possible Client loss• If this doesn’t work, they will

have to recruit someone else

V. Discussion

What do you think of Mr. Smothers' reaction when he realized that Ms. Marsh was a women ?

Do you think she can succeed in her job despite the traditional Arab culture ?

Do you think that gender is important in certain businesses / Jobs ?

Thank you for your attention