Leadership Case Study

Corrado Passera Restructuring Poste Italiane and Banca Intesa: The Leadership Style of the Corporate Savior

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Abstract:

Corrado Passera was one among the rare breed of Chief Executive Officers who had the unique achievement of successfully restructuring three loss making Italian companies in a period of one and a half decade. A graduate from Wharton Business School, Passera joined the loss making Italian Information Technology Company, Olivetti, in 1999 as its Managing Director and Co-CEO. He, along with the company’s Chairman, Carlo DeBeneditti, restructured Olivetti by refocusing on the company’s core business line of ink-jet printers, slashing the redundant work force and hierarchy of management, and expanding the company’s business into an altogether different area of cellular telephony. Next, he was instrumental in restructuring the Italian postal services department, Poste Italiane., which was beset by government apathy and bureaucratic inefficiency. In 2002, when Passera left Poste Italiane, it was already a profit making company. His next assignment was to restructure the Italian banking Group, Banca Intesa. At that time, the banking Group was struggling under the burden of non-performing loans. It was also grappling with the challenge of integrating three separate independent banks, Banco Ambrosiano Veneto, the Cariplo Savings Bank, and Banca Commerciale Italaina; that combined to form Banca Intesa. Since September 2002, when Passera embarked upon the restructuring plans of Banca Intesa, the bank’s revenue had steadily increased.

The case provides a perfect backdrop for the students to discuss the leadership and motivation style of Passera. It also provides insight into the change management strategies of the corporate savior.

Pedagogical Objectives:

• To have a brief understanding of Organisational Restructuring
• To understand the importance of human resource management in the context of Organisational Restructuring
• To understand how delegation of authority and responsibility impacts in the employee morale
• To analyse how the employee morale and motivation enhances the performance.

Keywords : Corrado Passera, Poste Italiane, Banca Intesa, Olivetti, Leadership, Motivation, Change management, Corporate restructuring, Functional organisation, Customer focus, Hierarchy of management, Lay off, Leadership Case Study, Change manager, Inorganic growth strategy

Contents:

• Introduction
• Corporate Restructuring of Poste Italiane
• Corporate Restructuring of Banca Intesa
• Banca Intesa Prospers Under Corrado Passera