In the PMO Club podcast, we have previously discussed many interesting topics, including portfolio management [https://pmoklub.profexec.com/poscast/miert-nelkulozhetetlen-a-projektportfolio-menedzsment-a-sikeres-cegek-eleteben/], transformational projects [https://pmoklub.profexec.com/poscast/a-sikeres-valtozas-titka-transzformacios-projektek-es-a-kulcsfontossagu-lepesek/], and emotional intelligence [https://pmoklub.profexec.com/poscast/ne-valjunk-azza-a-vezetove-aki-miatt-elmennek-az-emberek-az-erzelmi-intelligencia-szerepe-a-ceges-kulturaban/]. This time, however, we would like to showcase the possibilities, challenges, and solutions in executing a unique global project through a concrete example.
Recently, the largest merger in the banking history of the region took place, resulting in the creation of MBH Bank. Our recent guest, Patrícia Seprődi, Managing Director of MBH Bank, played a key role in this. She is also the head of the Integration Management Office and the Center of Excellence, following the unique triple bank merger process closely and proactively from start to finish. The nearly three-year process successfully concluded on May 1, 2023, resulting in the establishment of Hungary’s second-largest, purely Hungarian-owned financial institution.
On April 1, 2022, Budapest Bank and MKB Bank merged, followed by the merger of Takarékbank with the then MKB Bank on May 1 of this year, creating MBH Bank Plc. thanks to a name/brand change.
Strategic Planning
The first step in the process was the creation of Magyar Bankholding, which facilitated the merger of the three member banks, providing the legal background necessary to execute the merger steps. “After the first step, we had to develop the medium- and long-term strategy of Magyar Bankholding. This strategy outlined the processes and goals for the next two years, guiding us significantly, as we had to follow the milestones of this strategy.”
Time Factor
When building a strategy, many factors must be considered, one of the most important being time. There are two approaches to a project’s temporal execution:
For MBH, creating and establishing unified banking operations as quickly as possible was a fundamental aspect, which early on defined the strategic path. Later, other considerations were aligned with this strategy, the most important being human factors, technological tasks, business challenges, customer perspectives, legal and other operational tasks, and program management.
There’s a famous saying that culture eats strategy for breakfast. MBH leadership recognized this early on and began implementing specific action plans to build the new corporate culture. Fortunately, neither culture was chosen exclusively. Instead, under the leadership of the HR team, many workshops were held to interpret cultures and define values, where lengthy discussions took place about the type of workplace they wanted to create.
For a project of this magnitude, it is advisable to involve external experts who have done similar work before and have more experience than we do. MBH Bank also sought the help of major consulting firms, which supported the merger and risk minimization through various training sessions.
Human factors are one of the most prominent elements in any project. Identifying key personnel is crucial in a project of this caliber, which should be examined from two perspectives:
To maintain motivation during a project, it is important to highlight intermediate results. We Hungarians are not particularly good at this, yet it is a crucial element. One of the most important leadership responsibilities is to recognize achievements, pause for a moment, and celebrate them.
When an organization executes a large-scale program, everyone focuses on achieving the goal. After such a significant performance, an emotional vacuum naturally develops among people. It is therefore worth preparing for what happens after the project is completed. Post-project tasks can be very helpful, but it is important to make organization members aware that they have reached the starting point of a new chapter, with many useful tasks still ahead.
The preparatory work for the MBH merger began virtually simultaneously with the onset of COVID-19. The company found itself in the online space overnight, initially a challenge, but later to their advantage.
Why? Every project manager knows that one of the most challenging tasks is booking meeting rooms that can accommodate everyone and provide the necessary tools. Moreover, this involves travel, which takes up a lot of time. Therefore, managing a project in the online space can also be beneficial.
The MBH Bank merger serves as an example of the peculiarities of managing a large-scale project, affecting smaller groups organizationally, and highlighting the importance of human factors in such a complex, large project.