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ORGANIZATIONAL CULTURE - TCS

ORGANIZATIONAL CULTURE - TCS

I hope you all had a good time reading about the Tower Building Activity, Khan Academy, Valley Crossing
and Goal Setting, Mid-Term Experience and last but not the least Michelin !
Keeping the flame alive I would like to sprinkle my thoughts about the "Organizational Culture at Tata Consultancy Services".
First of all, we need to understand what Organizational Culture is. I would like to quote Mehmet Ildan here:
"All cultures have things to learn from all other cultures. Don’t get stuck in your culture. Go beyond it. Get out of your aquarium; get out of your farm; get out of your castle; break your bell jar! Give chance to other cultures and to other opinions! This is the best way for you to see the inefficiencies, absurdities and stupidities in your culture!"

Organizational Culture

The values and behaviors that contribute to the unique social and psychological environment of an organization. Organizational culture is the sum total of an organization's past and current assumptions, experiences, philosophy, and values that hold it together, and is expressed in its self-image, inner workings, interactions with the outside world, and future expectations. It is based on shared attitudes, beliefs, customs, express or implied contracts, and written and unwritten rules that the organization develops over time and that have worked well enough to be considered valid.

Also called corporate culture, it manifests in

(1) the ways the organization conducts its business, treats its employees, customers, and the wider community,

(2) the extent to which autonomy and freedom is allowed in decision making, developing new ideas, and personal expression,

(3) how power and information flow through its hierarchy

(4) the strength of employee commitment towards collective objectives.

It is termed strong or weak to the extent it is diffused through the organization. It affects the organization's productivity and performance, and provides guidelines on customer care and service; product quality and safety; attendance and punctuality; and concern for the environment. It extends also to production-methods, marketing and advertising practices, and to new product creation. While there are many common elements in the large organizations of any country, organizational culture is unique for every organization and one of the hardest thing to change.

First of all, I would like to brief about the company.

TATA CONSULTANCY SERVICES

Tata Consultancy Services Limited (TCS) is an IT services, business solutions and outsourcing organization that delivers real results to global businesses, with a high level of certainty. TCS offers a consulting-led, complete and integrated portfolio of IT and IT-enabled services delivered through its unique Global Network Delivery Model, recognized as the benchmark of excellence in software development.

Founded in 1968 as part of the Tata group, TCS is headquartered in Mumbai, India and is a public limited company , listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India. In FY 2011, TCS reported consolidated revenues of USD 8.2 billion. TCS has built a global reputation for its ability to help customers achieve their business objectives  – by providing innovative, best-in-class consulting, IT and IT-enabled solutions and services. TCS’ core set of values underpin all activities in the Company and these include leadership with trust, integrity, excellence, respect for the individual and learning/sharing.

The Company plans to further strengthen and consolidate its position in the global IT industry as an integrated full services player with a global footprint in terms of innovation, operations and service delivery.

Large global corporations which make up the customer-base are today looking for strategic partners

who not only excel in technology and possess a full-services delivery capability but can also understand their business and leverage that domain expertise to deliver technology-led solutions to their business problems.

The customer-centric, domain-led business unit structure helps TCS constantly sharpen and grow its competencies in each of the industry verticals it services. Domain expertise is advanced through investments made in a global network of solution centers and innovation labs, hiring industry experts and by encouraging associates to get industry-recognized certifications and training.

TCS has a Global Footprint

They have invested in building a large, global sales network to reach out to clients across the world. 

As of March 31, 2011, TCS had 145 offices across 42 countries, catering to some 1034 active clients. The break-up of  offices by geography is as below: 

• 18 offices across USA and Canada
• 12 offices across 7 countries in Latin America
• 11 offices across UK and Ireland
• 22 offices across 12 countries in Europe
• 18 offices across 12 countries in Asia Pacific
• 7 offices across the Middle East and Africa
• 54 offices across India

TCS by numbers

For TCS, as a global software company, a lot of cultural integration is familiar territory. When TCS acquired UK's Pearl in April 2006, along with its 900 employees , for some 480-odd million GBP, it was one of the early birds to catch the global M&A worm. The deal was a landmark in more ways than one — first, it gave TCS entry into the lucrative life and pensions business market in the UK and Europe. It catapulted it into number two position in that industry; made it one of the top IT employers in the UK — TCS now employs about 2,000 people on the ground in UK — and more than anything, it gave TCS the cachet of being a top-end local company of standing, instead of just another Indian offshoring firm. Perception in the local market changed a lot, say insiders.

Just as an organization needs the right talent to drive its business objectives, people need the right environment to grow and achieve their career goals. Working with TCS affords you with a sense of certainty of a successful career that would be driven by boundless growth opportunities and exposure to cutting-edge technologies and learning possibilities. 

The work environment at TCS is built around the belief of growth beyond boundaries. Some of the critical elements that define the work culture are global exposure, cross-domain experience, and work-life balance. Each of these elements go much deeper than what it ostensibly conveys. 

There are 4 types of Organizational Culture:

1. Control (hierarchy)
2. Compete (market)
3. Collaborate (clan) 
4. Create (adhocracy)

This typology reflects the range of organizational characteristics across two dimensions that were found critical to organizational effectiveness. The spatial implications for each type are presented so that workspace planners might be able to interpret the results of an organizational culture assessment in their process of designing environments that support the way companies work and represent themselves.

TCS Value proposition:

The TCS employer brand positioning builds on their strengths and communicates TCS as an organization that offers its employees a complete Global IT Career by highlighting the three main value propositions:

Global exposure

Freedom to work across domains

Work life balance

CONTROL (HIERARCHY)

Hierarchical organizations share similarities with the stereotypical large, bureaucratic corporation. As in the 

values matrix, they are defined by stability and control as well as internal focus and integration. They value

standardization, control, and a well-defined structure for authority and decision making. Effective leaders 

in hierarchical cultures are those that can organize, coordinate, and monitor people and processes.

Good examples of companies with hierarchical cultures are McDonald’s (think standardization and 

efficiency) and government agencies like the Department of Motor Vehicles (think rules and bureaucracy). 

As well, having many layers of management—like Ford Motor Company with their seventeen levels—is 

typical of a hierarchical organizational structure.

COMPETE (MARKET)

While most major American companies throughout the 19th and much of the 20th centuries believed 

a hierarchical organization was most effective, the late 1960s gave rise to another popular approach—

Compete (market) organizations. These companies are similar to the Control (hierarchy) in that they value 

stability and control; however, instead of an inward focus they have an external orientation and they value 

differentiation over integration. This began largely because of the competitive challenges from overseas that forced American companies to search for a more effective business approach. With their outward 

focus, Compete (market) organizations are focused on relationships—more specifically, transactions—with 

suppliers, customers, contractors, unions, legislators, consultants, regulators, etc. Through effective external 

relations they feel that they can best achieve success. While Control (hierarchy) optimize stability and 

control through rules, standard operating procedures, and specialized job functions, Compete (market) 

organizations are concerned with competitiveness and productivity through emphasis on partnerships 

and positioning. 

COLLABORATE (CLAN)

In the values matrix Collaborate (clan) are similar to Control (hierarchy) in that there is an inward focus 

with concern for integration. However, Collaborate (clan) emphasize flexibility and discretion rather than 

the stability and control of Control (hierarchy) and Compete (market) organizations.With the success of many Japanese firms in the late 1970s and 1980s, American corporations began to take note of the different way they approached business. Unlike American national culture, which is founded upon individualism, Japanese firms had a more team-centered approach. This basic understanding affected the way that Japanese companies structured their companies and approached problems Their Collaborate (clan) organizations operated more like families—hence the name—and they valued cohesion, a humane working environment, group The key to using culture to improve performance lies in matching culture or attributes to organizational goals.

CREATE (ADHOCRACY)

In the values matrix Create (adhocracy) are similar to Collaborate (clan) in that they emphasize flexibility 

and discretion; however, they do not share the same inward focus. Instead they are like Create (adhocracy) 

in their external focus and concern for differentiation.With the advent of the Information Age, a new approach developed to deal with the fast-paced and volatile business environment. Social, economic, and technological changes made older corporate attitudes and tactics less efficient. Success now was envisioned in terms of innovation and creativity with a future-forward posture. An entrepreneurial spirit reigns where profit lies in finding new opportunities to develop new products, new services, and new relationships—with little expectation that these will endure. Adhocratic organizations value flexibility, adaptability, and thrive in what would have earlier been viewed as unmanageable chaos. 

Culture potpourri:

People from diverse backgrounds and geographies have come together in pursuit of a common vision.

Open door policy:

Our corporate culture is open and inclusive; irrespective of your experience, you will immediately be welcomed into the team, and would always have a significant role to play.

On-the-job learning:

Intense training and development programs facilitate on-the-job learning.

Mentor programs:

Our mentor programs foster supportive relationships that help develop skills, behavior, and insights to enable you to attain your goals.

'Global Family' identity:

What sets TCS apart is the support, encouragement, and nurturing provided to you at every step... just like a family.

Community Services:

Maitree was started with an objective of bringing TCS associates and their families closer and include them as a part of the TCS extended family.

The BIG questions in an organization !

Learning:

How do I enable Team learning?

Employee Involvement:

How do I enable continuous improvement?

Personal Growth:

How do I walk the the journey of self discovery and growth?

Owning TCS Culture:

How do I influence culture?

Role Enhancement:

How do I take eup nw responsibilities and set new directions?

Professional Excellence:

How do I become a role model and a friend?

PROPEL – The Intervention: Culture Building at TCS 

PROPEL was introduced as a revolutionary intervention with the dual objectives of facilitating the exchange of ideas and helping in immediate problem solving, while also encouraging bonding and self-development 

among and within teams. 

   

As the organization and its relationships grew, it brought its own challenges, whereas change remained a constant. PROPEL was introduced as a platform and a tool to help bring about this change, in consonance with the TCS belief of “Let us make it a joy for all our stakeholders”. Promoting continuous improvement at a cross-functional level was one of the envisaged objectives. Change management was enabled through alignment with growth strategy; by creating platforms for dialogue on the current and emerging experience of the organization. 

PROPEL has helped the organization build a culture of collaboration, creativity and also networks of relationships through its two modes: 

1.  Confluences: Listening to the voice of the employee in a team scenario, by creating a platform for open sharing of thoughts on a relevant theme. This is achieved through a balance of fun, introspection and interaction, while evoking commitment to self development. 

2.  Camps: Platform for problem solving, focus on the Quality, Cost and Delivery measures of throughput resulting in transfer and adoption of best practices within and amongst relationships in the 

organization. 

Team Alignment through PROPEL framework

Team alignment was a PROPEL application initiated for members of this large relationship, to reflect on its own state, to build a coherent statement of current realities and to channel potent restlessness and dissatisfactions within the relationship, into a convergent blueprint of responsiveness and new levels of maturity. It looked at redefining desirable role behaviors, and hence conveyed responsibility for movement at the collective as well as individual levels, for the team. This was brought about through the following stages:

1.  Initiation: The Spiral dynamics framework was used to map the relationship in terms of its evolution. Tools were administered to a group of Project Managers to identify the gaps between where the

team is (current state) and where it should be (desired state) and the steps to be taken to bridge this gap.

Spiral Dynamics posits that the evolution of human consciousness can best be represented by a dynamic, upward spiraling structure that charts our evolving thinking systems as they arc higher and higher through levels of increasing complexity.

2.  Awareness sessions & Workshops: Overviews on Spiral Dynamics and its application to achieve team alignment was shared with the team. In Jan 2012, a workshop was organized with the team to discuss

the findings based on the analysis of data. A few key observations were:

• Differential perceptions of current reality by leadership and the rest of the team
• Need to make a few critical role shifts
• Need to align the broad directions and future steps

This workshop allowed the team to clearly discuss their perceptions of the team’s current situation and  the following observations were agreed upon:

• Need to negotiate expectations and sufficiently understand interdependence
• Reluctance to confront and bring issues to a head
• Stress
• Results and task oriented disposition        

These results were then compared to the leadership’s expectations from the team. Greater the convergence and alignment between leadership and the team on the current state and the directions for movement, greater the power of focused deployment of energies, and empowered, autonomous decisions and actions within the team. Gaps were identified, developmental areas were prioritized and broken down and categories identified to pinpoint where the greatest impact from team development efforts will be achieved.

3.  Gap analysis:  This was done to enhance understanding of the different roles for each job position, identify the ones suitable for the different job positions and come up with action items to address the

themes agreed upon. As a next step, each member had to identify the gaps based on the role selected. For e.g.: The below roles were identified for a team member job position:

• Self-developer
• Team Player
• Crafts-person

The roles would vary depending on the location as well. Onsite members would have roles that require higher customer interaction.

4.  Implementing improvement plan: Follow-up meetings were held at 6-8 week intervals to monitor progress made as well as to identify areas of improvement using Deming’s Plan-Do-Check-Act (PDCA)

cycle. The Team Alignment tool was created in September 2005 with an aim of cascading the team alignment concept to the team member level in a shorter span of time.

5.  Next steps: The team now has a 30, 60, 90 day implementation plan for the same. Incorporation of the  three high priority action items arising from the team alignment exercise, as goals in the team was

contemplated. Additionally a PROPEL camp was planned, to agree upon the steps to be taken to close the action items for each of the roles.

References

http://www.tcs.com/about/corp_responsibility/documents/tcs_corporate_sustainability_report_low_resolution_09.pdf

http://careers.tcs.com/CareersDesign/Jsps/WorkingatTCS.jsp

http://careers.tcs.com/CareersDesign/Jsps/WorkingatTCS.jsp

Conclusion

I feel with positive initiatives and proper management bad cultures in an organization can be changed. TCS is an example of a company which is true to its values. It never compromises on quality and values. Even in dire situations, it always takes a stand which is ethically and morally correct.

OUR MID TERM EXAMS!!!!

                               OUR MID TERM EXPERIENCE!!

PRE-EXAM JITTERS

A month in NITIE and we were bombarded with a lot of exams and presentations. In the same league, we had our mid-term for "Principles of Operational Management". We had to recall all the classroom teachings, practical learning, management concepts and the blog experience for the mid-term. There was a sense of anxiety before the mid-term and everyone was busy preparing for it in the best possible way. 

PREPARATION

http://pomcourse2012nitie.blogspot.in/2012/07/pom-quiz-questions.html

Amidst all the long hours of reading Stoner and learning the concepts of management, Mr Mandi posted an online quiz for all of us. It was a very fruitful experience. We had a brainstorming session on the quiz and everyone came up with brilliant ideas and views. The whole concept of such debatable statements made it all the more interesting.

The more we discussed, the more ideas came up. Everyone had such wonderful thoughts which never came out before the session. The questions were tricky too. For instance, if the working conditions are enhanced, will the productivity be increased. Or if the working conditions are better, will the burden on the workers be reduced. Such questions generated the maximum conflicts and by the end of the session we all came to a mutual consensus.

THE DAY

Before we began, Dr Mandi in his usual chirpiness made us shout slogans like "Aaj ki roti aaj hi kamayenge" ... "Socho becho .. becho seekho ... seekho socho"

There is this thing with such slogans which brings out the best in you. You have this feeling of doing something for yourself.The paper was distributed to us one by one and with each passing second, the thought of what and how the paper would be grew larger and deeper. Finally the paper landed in my hands and a quick glance brought a smile to my face. I had studied the syllabus and was happy to see most of the questions in my zone.

Time management was not a major worry for a lot of people as everyone was well prepared. The major issue in an exam is the preparation and the time management. Since most of the people had read the concepts well, so the other factor was not a big issue.

We had to share the examination hall with Section C who had their Financial Accounting Mid-Term but unlike us they had the issue of time management. The paper was a little lengthy as they say and they found it difficult to finish it on time.

The paper had a variety of questions almost engulfing the whole syllabus. From managerial skills to Hawthorne experiments, the paper had everything taught in the classes. Everyone took less than 1 hour to finish the paper and we could all see smiling faces post exam. They had this satisfaction that the hard work put in the preparation has finally reaped benefits.

THE EVALUATION

 After the exam, we got a mail from Dr Mandi with the subject "POM Quiz test results". My heart started racing and with prayers flowing into my mind I opened the mail. We had been evaluated and the evaluation is given as below :

1. Technical skills emerge as critical for higher levels of managerial

positions Ans. FALSE

Right answers - 97 %; Wrong answers - 3%

2. Flat Hierarchy organization involve greater coordination with in

organisaiton compared to taller hierarchy organizations - Ans.. FALSE

Right answers - 49 %;  Wrong answers  - 51%

3. Bounded rationality principle encourages the managers to be

gamblers Ans. FALSE

Right answers - 69 %;  Wrong answers  - 31%

4. Craftsmanship encourages involves specialization Ans. FALSE

Right answers - 97 %;  Wrong answers  - 3%

5. Hawthorne experiments concluded that better working conditions

leads to higher productivity Ans.. FALSE

Right answers - 73 %;  Wrong answers  - 27%

6. Organizations structures are conditioned by he organizational

purpose and organizational processes. Ans. TRUE

Right answers - 98 %;  Wrong answers  - 2%

7. As per SMART goals principle realizable goals may be defined as the

goals that are already realized. Ans. FALSE

Right answers - 97 %;  Wrong answers  - 3%

8. Both scientific management and administrative management theories

conflict each other . Ans. FALSE

Right answers - 23 %;  Wrong answers- 77%

9. The word ..Scientific means in Scientific management..

Verifiable, Objective, Involves testing and experimentation,

analysis; synthesis; logic; rationality; empiricism; repeatable,

10. Differentiate Work - Job:

Job:  A group of homogeneous tasks related by similarity of functions.

Work - Physical or mental effort or activity directed toward the

production or accomplishment of something.

Tower Building Activity

                                         Introduction

Just after a few classes and some very good interactions with people from different parts of the nation, a glance at the time table said “Principles of Organization and Management” by Dr T Prasad. The lectures on the first few days were enriching in their own unique way, so I was looking forward to the class. I was astonished and spell bound by the way Dr Mandi (I will call Dr T Prasad as Dr Mandi) started the session. An introduction which included a lot of significant achievements literally swept me off my feet.

Mr Mandi had initiated Mandi and Hamara Dhandha which had always appealed me. I had seen few seniors participating heavily in such events and coming out with flying colours. With each passing minute my goals in life got stronger and they suddenly had a purpose.

“Socho ... Becho ... Becho .... Seekho ... Seekho ... Socho” sums up the ideology of every individual hoping to create a name for himself. Everyone is capable of creating ideas but only a few have the courage to implement them. Dr Mandi encouraged everyone not to be a part of the herd but to have one’s own identity. He dreams his students become millionaires and have thousands of people working for them.

“Aaj ki roti aaj hi kamayenge” instilled in me the desire to think about my future from the first day itself. The general idea of “kar lenge” has to be shunned. We have to become self reliant as soon as possible. Dr Mandi showed us how money can be made from simple toys but with a larger meaning. A simple game of tic-tac can be converted into a number puzzle and can be sold for a significant amount of money. A lot of other applications of physics and maths can also be a good source of learning for the children (consumers) and at the same time be a source of income for the producers.

Pink Floyd - Another brick in the wall 

The age old tradition of molding students in a similar cast is analogous to another brick in the wall. The out-of-touch education system is bent on producing compliant cogs in the societal wheel. We need to come out of the cocoon and create a name for our self. This mentality needs a turn around and an initiative by Pink Floyd was beautifully shown in the session. The video can be viewed at:

Are we doing enough to change all this?

A serious thought has to be put in on the education system prevalent nowadays.

The video on Mandi showed the kind of effort put in by the students and Dr Mandi. Mandi was covered by well known media houses of the country.

It shows how money can be generated from innovative ideas and good implementations

Tower Building Activity

The nuances of management were taught by Dr Mandi through a tower building activity. Small wooden cubes were used to create a single stack of as many cubes as possible. The risk taking ability of an individual was tested through an open auction. The auction resulted in only three people ready to pay money in case they fail to achieve the pre-defined target.

The 3 people selected were portraying the top management, manager and the worker. The audience were equivalent to consumers and they too had an important role to play.  Customers/consumers always expect producers to do well. They are always with the producers and are more interested than the competitors.

The top management was also providing inputs time and again on how to get the task done.  The manager made sure that the worker is always performing the task with perfection. He motivated the worker and always pushed him to give his 100%. The worker was tired and exhausted and at times also felt that the task at hand is too difficult but gradually as the activity went along, the seemingly difficult task of building 18 blocks seemed achievable. The audience provided the much needed motivation and after the task was completed, even the audience felt that the difficult task of 18 cubes in a single stack can be achieved by many which seemed impossible in the start.

SMART

The whole idea was summarized through the concept of SMART where Specific, Measurable, Attainable, Realistic and Timely were perfectly understood through the activity. One has to be very clear with the task to be performed. Initially people were willing to build a stack of 30-35 blocks but eventually when the hurdles were explained a lot of them were not willing to do more than 20. The hurdles and uncertainties in the process of management was pictured and everyone has to be prepared to face them with perfection. The attainable figure of around 20 blocks seemed realistic to everyone as we moved along. The timely execution of the activity is also very important.

We have to understand that the workers are very important and need to be taken care of. The management has to ensure that the workers are properly treated which would pave the way for a smoother process. During the activity, the worker was exhausted and he was on edge for most of the later part. But the support of the management as well as the consumers gave him the desired mental support and the activity was successfully completed.

Theory X and Theory Y

In terms of Theory X and Theory Y, the manager was Theory Y manager of situation 4. The worker liked his work and the manager also treated the worker as not lazy.

According to me, situation 4 is the best. The worker should enjoy his work and the manager should not find the worker lazy.

The dangerous situations would include where the manager assumes the worker is lazy or the worker dislikes his work. Even when the worker likes his work but the manager feels he is lazy the situation can be very bad.

One should understand the basics of management. If you cannot do it, it is not management.  Management includes  the participation of each and every individual. For instance, without the audience the achievements of M S Dhoni, the Indian Cricket captain would look very small. Audience is also a major part of any activity.

Summary

During my stint at TCS, there were a lot of instances during which we had to provide the deadlines for the project and there were cases when we had undermined the obstacles which could come in our way. We missed deadlines and that bought a bad name for the company. This is where management comes in. We need to weigh in all the possible cases and come up with a plan B in case the desired outcome is not achieved. One has to fetch for himself. There are no free lunches. The whole gist of the activity lies in the fact that the equal participation of every individual is important for the goal to be achieved.

All you have ever wanted to know about Deutsche Bank

Deutsche Bank AG (literally "German Bank") is a global banking and financial services company with its headquarters in the Deutsche Bank Twin Towers in Frankfurt, Hesse, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia-Pacific and the emerging markets. In 2009, Deutsche Bank was the largest foreign exchange dealer in the world with a market share of 21 percent.
Deutsche Bank has offices in major financial centres including London, Madrid, Frankfurt, New York, Paris, Moscow, Amsterdam, Dublin, George Town, Cayman Islands, Toronto, Kuala Lumpur, São Paulo, Singapore, Hong Kong, Tokyo, Sydney, Dubai, Riyadh, Mumbai, Bangkok and Belgrade.

History

1870-1919

Deutsche Bank was founded in Berlin in 1870 as a specialist bank for foreign trade. The bank's statute was adopted on 22 January 1870, and on 10 March 1870 the Prussian government granted it a banking license. The statute laid great stress on foreign business: "The object of the company is to transact banking business of all kinds, in particular to promote and facilitate trade relations between Germany, other European countries and overseas markets.

The bank's first domestic branches, inaugurated in 1871 and 1872, were opened in Bremenand Hamburg. Its first foray overseas came shortly afterwards, in Shanghai (1872) and London (1873). Already, at this early stage, the bank was looking further afield, making investments in North and South America, Asia, and Turkey.

Major projects in the early years of the bank included the Northern Pacific Railroad in the US[ and the Baghdad Railway (1888). In Germany, the bank was instrumental in the financing of bond offerings of steel company Krupp (1879) and introduced the chemical company Bayer to the Berlin stock market.

Deutsche Bank's early decades were a period of rapid expansion. Issuing business began to grow in importance in the 1880s, and in the 1890s it really took off. The bank played a major part in the development of Germany's electrical-engineering industry, but it also gained a strong foothold in iron and steel. A solid base in Germany permitted the financing of business abroad, which in some cases kept the bank occupied for years, the best-known example being the Baghdad Railway.

The second half of the 1890s saw the beginning of a new period of expansion at Deutsche Bank. The bank formed alliances with large regional banks, giving itself an entrée into Germany's main industrial regions. Joint ventures were symptomatic of the concentration then under way in the German banking industry. For Deutsche Bank, domestic branches of its own were still something of a rarity at the time; the Frankfurt branch dated from 1886 and the Munich branch from 1892, while further branches were established in Dresden and Leipzig in 1901.

In addition, the bank rapidly perceived the value of specialist institutions for the promotion of foreign business. Gentle pressure from the Foreign Ministry played a part in the establishment of Deutsche Ueberseeische Bank in 1886 and the stake taken in the newly established Deutsch-Asiatische Bank three years later, but the success of those companies in showed that their existence made sound commercial sense.

When in spring 1914 the "Frankfurter Zeitung" told its readers that Deutsche Bank was "the biggest bank in the world",Frankfurter Zeitung, Erstes Morgenblatt, 5 March 1914. The claim marked the highpoint but at the same time the end of an era. During World War I, the source of the visionary vigor that had driven many a determined company to succeed gradually dried up.

1919-1933

The immediate postwar period was a time of liquidations. Having already lost most of its foreign assets, Deutsche Bank was obliged to sell other holdings. A great deal of energy went into shoring up what had been achieved. But there was new business, too, some of which was to have an impact for a long time to come. The bank played a significant role in the establishment of the film production company, UFA, and the merger of Daimler and Benz.

The bank merged with other local banks in 1929 to create Deutsche Bank und DiscontoGesellschaft, at that point the biggest ever merger in German banking history. Increasing costs were one reason for the merger. Another was the trend towards concentration throughout the industry in the 1920s. The merger came at just the right time to help counteract the emerging world economic and banking crisis. In 1937, the company name changed back to Deutsche Bank.

The crisis was, in terms of its political impact, the most disastrous economic event of the century. The shortage of liquidity that paralyzed the banks was fuelled by a combination of short-term foreign debt and borrowers no longer able to pay their debts, while the inflexibility of the state exacerbated the situation. For German banks, the crisis in the industry was a watershed. A return to circumstances that might in some ways have been considered reminiscent of the "golden age" before World War I was ruled out for many years.

Deutsche Bank was one of the major drivers of the collateralized debt obligation (CDO) market during the housing credit bubble from 2004–2008, creating ~$32,000,000,000 worth. The 2011 US Senate Permanent Select Committee on Investigations report on Wall Street and the Financial Crisis analyzed Deutsche Bank as a 'case study' of investment banking involvement in the mortgage bubble, CDO market, credit crunch, and recession. It concluded that even as the market was collapsing in 2007, and its top global CDO trader was deriding the CDO market and betting against some of the mortgage bonds in its CDOs, Deutsche bank continued to churn out bad CDO products to investors.

The report focused on one CDO, Gemstone VII, made largely of mortgages from Long Beach, Fremont, and New Century, all notorious subprime lenders. Deutsche Bank put risky assets into the CDO, like ACE 2006-HE1 M10, which its own traders thought was a bad bond. It also put in some mortgage bonds that its own mortgage department had created but couldn't sell, from the DBALT 2006 series. The CDO was then aggressively marketed as a good product, with most of it being described as having A level ratings. By 2009 the entire CDO was almost worthless and the investors (including Deutsche Bank itself) had lost most of their money.

Gregg Lippman, head of global CDO trading, was betting against the CDO market, with approval of management, even as Deutsche was continuing to churn out product. He was a large character in Michael Lewis' "The Big Short", which detailed his efforts to find 'shorts' to buy Credit Default Swaps for the construction of Synthetic CDOs. He was one of the first traders to foresee the bubble in the CDO market as well as the tremendous potential that CDS offered in this. As portrayed in the book "The Big Short" of Michael Lewis, Lipmann in the mid of the CDO and MBS frenzy was orchestrating presentations to investors, demonstrating his bearish view of the market, offering them the idea to start buying CDS, especially to AIG in order to profit from the forthcoming collapse. As regards the Gemstone VII deal, even as Deutsche was creating and selling it to investors, Lippman emailed colleagues that it 'blew', and he called parts of it 'crap' and 'pigs' and advised some of his clients to bet against the mortgage securities it was made of. Lippman called the CDO market a 'ponzi scheme', but also tried to conceal some of his views from certain other parties because the bank was trying to sell the products he was calling 'crap'. Lippman's group made money off of these bets, even as Deutsche overall lost money on the CDO market.

Deutsche was also involved with Magnetar Capital in creating its first Orion CDO. Deutsche had its own group of bad CDOs called START. It worked with Elliot Advisers on one of them; Elliot bet against the CDO even as Deutsche sold parts of the CDO to investors as good investments. Deutsche also worked with John Paulson, of the Goldman Sachs Abacus CDO controversy, to create some START CDOs. Deutsche lost money on START, as it did on Gemstone.

Performance

Year	2011	2010	2009	2008	2007	2006	2005	2004	2003
Net Income	€4.3bn	€2.3bn	€5.0bn	€-3.9bn	€6.5bn	€6.1bn	€3.5bn	€2.5bn	€1.4bn
Revenues	€33.2bn	€28.6bn	€28.0bn	€13.5bn	€30.7bn	€28.5bn	€25.6bn	€21.9bn	€21.3bn
Return on Equity	-	5%	18%	-29%	30%	26%	16%	1%	7%
Dividend	-	0.75	0.75	0.5	4.5	4.0	2.5	1.7	1.5

Deutsche Bank has been transformed over the past five yearsmoving from a German-centric organisation that was renowned for its retail and commercial presence to a global investment bank that is less reliant on its traditional markets for its profitability.

The bank has been widely recognized for this change and was named International Financing Review's Bank of the Year twice in a three year period, in 2003 and 2005. It has also won the prize in 2010.

For the 2008 financial year, Deutsche Bank reported its first annual loss in five decades. despite receiving billions of dollars from its insurance arrangements with AIG, including US$11.8 billion from funds provided by US taxpayers to bail out AIG.

October 2011: Based on a preliminary estimation from the European Banking Authority (EBA), Deutsche Bank AG needs to raise capital about €1.2 billion (US$1.7 billion) as part of a required 9 percent core Tier 1 ratio after sovereign debt writedown starting in mid-2012.

Management structure

Until recently, there was no CEO at Deutsche Bank. The board was represented by a “speaker of the board.” Today, Deutsche Bank has a Management Board whose members are:

 Josef Ackermann (Chairman and CEO)

  Hugo Bänziger (Chief Risk Officer)

Anshu Jain (Corporate and Investment Banking)




Rainer Neske(Private  & Business Clients)

Hermann-Josef Lamberti (Chief Operating Officer)

Stefan Krause (Chief Financial Officer) 

The Group Executive Committee is the Management Board plus the heads of the bank’s other business areas, namely: Kevin Parker (Asset Management); and Pierre de Weck (Private Wealth Management).

The Supervisory Board of the bank is chaired by Clemens Börsig

Mission

We compete to be the leading global provider of financial solutions, creating lasting value for our clients, our shareholders, our people and the communities in which we operate.

Our mission gives our business a clear purpose and direction. It is rooted in our brand. Our brand captures and projects a clear idea of who we are.

It is something against which all our activities – products, services, behavior and communications – can be judged. It is simple, succinct and unequivocal.

Our claim has always been much more than a marketing slogan or advertising strapline. It defines our attitude and will continue to do so. It carries an inclusive proposition: performance represents all that we do for our clients, not just bottom-line results. Visually, we say it with more conviction, with more passion, in a new handwritten style.

Deutsche Bank’s mission statement is: “We compete to be the leading global provider of financial solutions, creating lasting value for our clients, our shareholders, our people and the communities in which we operate.” The bank’s business model rests on two pillars: the Corporate & Investment Bank (CIB) and Private Clients & Asset Management (PCAM).

Milestones

Deutsche Bank was founded in Berlin in 1870 as a specialist bank for foreign trade. The bank's statute was adopted on 22 January 1870, and on 10 March 1870 the Prussian government granted it a banking license. The statute laid great stress on foreign business: "The object of the company is to transact banking business of all kinds, in particular to promote and facilitate trade relations between Germany, other European countries and overseas markets."

The bank's first domestic branches, inaugurated in 1871 and 1872, were opened in Bremen and Hamburg. Its first foray overseas came shortly afterwards, in Shanghai (1872) and London (1873). Already, at this early stage, the bank was looking further afield, making invest ments in North and South America, Asia, and Turkey.

1905 – 06 Opening of branches in Nuremberg and Augsburg

1909 –10 Opening of branches in Istanbul and Brussels

1914        Merger with Bergisch Märkische Bank in Elber­feld and its branches in the Rhineland-Westpha­lia industrial region

1916        Participation in the Deutsche Ozean-Reederei and the Mitropa

1917     Merger with Schlesi-scher Bankverein and Norddeutsche Credit-anstalt

1920    Merger with Hannover­sche Bank, Braun-schweiger Privatbank and Privatbank zu Gotha

1923     Hyperinflation in Germany

1924 – 25  Merger with Württem­bergische Vereinsbank in Stuttgart and Essener Credit-Anstalt

1926    Participation in the founding of Lufthansa and in the merger of Daimler Motoren-Gesell­schaft, Stuttgart, with Benz & Cie., Mannheim, to form Daimler-Benz

1927    Merger with Lübecker Privatbank

1928    Merger with Hildesheimer Bank

1929    Merger of Deutsche Bank and Disconto-Ge­sellschaft; the company is now called 'Deutsche Bank und Disconto-Gesellschaft'

1931–32 following the banking crisis, Deutsche Bank und Disconto-Gesell­schaft has to deposit a third of its share capital with the state-owned Golddiskontbank

Awards

Euromoney - Private Banking and Wealth Management Survey 2011

The Corporate Division Private Wealth Management of Deutsche Bank was ranked #1 for Germany in 20 categories out of the 34 categories in this year's survey, including:
Best Private Bank
Range of investment products
Range of advisory services
Portfolio management equity
Portfolio management fixed income
Foreign exchange
Lending/Financing Solutions
Real estate investment
Private equity investment
Family office services
Inheritance and succession planning
Specialized services for Entrepreneurs
Philanthropy services

Risk magazine - Risk Awards 2011

Derivatives House of the Year - the third time since 2003
Bank Risk Manager of the Year
Derivatives Research House of the Year
Hedge Fund Derivatives House of the Year
Inflation Derivatives House of the Year

The Asset - Triple A Regional Awards 2010

Best Equity Deal - AIA
Best IPO - AIA
Best Sovereign Bond - ROP
Best Bank Capital Bond
Best Cross-border M&A

IFR - Awards 2010

Bank of the Year
Derivatives House
SSAR Bond House
EMEA High-Yield Bond House
Latin America Bond House
EMEA Equity House
Commodity Derivatives House

June 2012

Cannes Lions 2012

Cannes Lions – Gold Design Lion in the category “Environmental Design /
Exhibitions & Live Events” for the Anamorphic Mirror

Cannes Lions – Silver Design Lion in the category “Environmental Design /
Exhibitions & Live Events”

May 2012

The Asset – Triple A Awards 2012

Best Electronic Banking Solution in Thailand
Integrated Clearing Bank solutions for payments and collections – IATA Thailand (Role: Provider)

Best in Treasury and Working Capital – Best Multinational Corporation / Large Corporate Bank in Pakistan

Asiamoney – Best Domestic Bank Awards 2012

Best Domestic Equity House (The Philippines) – Deutsche Regis

April 2012

AsianInvestor – Investment Performance Awards 2012

Best ETF Provider for Asia Pacific (with db X-trackers ETFs, 3rd year running)

It's the 3rd consecutive year that Deutsche Bank receives this award, which reconfirms the success of Deutsche's platform year after year.

Deutsche Bank is one of the world’s largest ETF providers with more than US$40 billion in assets under management. With more than 240 ETFs in 10 stock exchanges globally on various asset classes including equities, fixed income, credit (long/short), money market, currencies and commodities, investors are able to implement a wide range of market strategies in a transparent, flexible and efficient manner.

The Asian Banker – Transaction Banking Awards 2012

Best Transaction Banking Product, Asia Pacific – FX4Cash
The Asian Banker Achievement Award for Euro Clearing, Asia Pacific

Financial-i – Leaders in Innovation Awards 2011

Leader in Innovation – Cash Management Provider, Asia

Décideurs – Leaders de la Finance 2012

Products

The bank offers financial products and services for corporate and institutional clients along with private and business clients. Services include sales, trading, research and origination of debt and equity; mergers and acquisitions (M&A); risk management products, such as derivatives, corporate finance, wealth management, retail banking, fund management, and transaction banking.

Corporate & Investment Bank

The Corporate & Investment Bank Group Division, or CIB, is responsible for Deutsche Bank’s capital markets business, comprising the origination, sales and trading of capital markets products including debt, equity, and other securities, together with our corporate advisory, corporate lending and transaction banking businesses. Our institutional clients come from both the public sector – for example, sovereign states and inter­national organizations – and the private sector. We serve the entire range of corporate clients, from medium-sized businesses to large multinational corporations.

CIB is subdivided into two Corporate Divisions: Corporate Banking & Securities and Global Transaction Banking.

Corporate Banking & Securities

Corporate Banking & Securities comprises our Markets and Corporate Finance businesses, and covers Deutsche Bank Group’s origination, sales and trading of securities, corporate advisory and M&A businesses worldwide, together with other corporate finance activities.

Welcome to Corporate Finance

As one of the world's leading investment banks, Deutsche Bank's Corporate Finance business provides the full range of integrated investment banking products and services for large-cap and mid-cap corporates, financial institutions, governments, government agencies, hedge funds and financial sponsors.

We recognise that selecting the right investment banking partner is critical - especially in these challenging times. Clients need banking partners who are able to offer stability, insights and global reach. Our relationships are enhanced by industry sector, country and regional expertise, closely aligned to high quality client solutions.

Our client offering includes comprehensive financial advisory - including both buyside and sellside Mergers & Acquisitions (M&A) and restructuring advisory - and capital raising services, underpinned by one of the world's largest and most successful debt and equity capital markets platforms, strong risk management and a global distribution network.

Global Transaction Banking

Global Transaction Banking covers Deutsche Bank’s cash management for corporate and financial institutions, trade finance business as well as trust & securities services

Cash Management & Trade Finance

Deutsche Bank’s Trade Finance and Cash Management teams provide commercial banking products and services - for both corporates and financial institutions - that deal with the management and processing of domestic and cross-border payments, professional risk mitigation for international trade and asset and liability management.

Our customers are supported in their domestic, regional and global trade finance and cash management programs through Deutsche Bank’s extensive global network of offices. These are situated in all major and secondary financial markets, including hubs in Frankfurt, London, New York and Singapore.

A complete range of robust and reliable solutions are available in Europe, the Americas and Asia Pacific, including:

db transaction solutions

db channel & information solutions

db liquidity management solutions

db financial supply chain solutions

db wholesale solutions

db trade solutions

db card solutions

Private Clients and Asset Management

The Private Clients and Asset Management Group Division, or PCAM, comprises Deutsche Bank’s invest­ment management business for both private and ins­ti­tu­tional clients, together with our tra­di­tional banking acti­vities for private individuals and small and medium-sized busines­ses. PCAM consists of two Corporate Divisions: Asset and Wealth Management and Private & Business Clients.

Asset and Wealth Management

Asset and Wealth Management comprises the Asset Management and Private Wealth Management Business Divisions.

Asset Management

Asset Management (AM) provides retail clients across the globe with mutual fund products through the DWS Investments franchise. It offers our institu­tional clients, including pension funds and insurance companies, a broad range of services from traditional to alternative investment products.
 

Private Wealth Management

Private Wealth Management (PWM) serves high and ultra high net worth individuals and families as well as selected institutions. It provides these very discerning clients with a fully integrated wealth management service, including inheritance planning and philanthropic advisory services.

Private & Business Clients

Private & Business Clients (PBC) provides a broad range of banking services including current accounts, deposits, loans, investment management and pension products, to private individuals and self-employed clients as well as small and medium-sized businesses. Outside of Germany, PBC has had longstanding operations in Italy, Spain, Belgium and Portugal and has been active in Poland for several years now. Further­more, PBC is also making focused investments in the growth markets of China and India.

Market share

Ordinary Share

Deutsche Bank’s share capital consists of common shares issued in registered form without par value. Under German law, each share represents an equal stake in the subscribed capital. Therefore, each share has a nominal value of € 2.56, derived by dividing the total amount of share capital by the number of shares.

Deutsche Bank shares are listed in Germany and in the U.S.A.

In May 1870 Deutsche Bank shares have been traded on the Berlin Stock Exchange for the first time, since December 8, 1880 the shares have been traded on the Frankfurt Stock Exchange.
On October 3, 2001 Deutsche Bank started trading its Global Registered Shares (GRS) on the New York Stock Exchange.    

Securities identification codes

Deutsche Börse

Type of issue	Registered Share
Symbol	DBK
WKN	514 000
ISIN	DE0005140008
Reuters	DBKGn.DE

New York Stock Exchange

Type of issue	GRS*
Currency	U.S.$
Symbol	DB
CINS	D 18190898
Bloomberg	DBK GR

* Global Registered Share

Overview 2012-2000

Date	Subscribed Capital	Number of Shares Issued	Market Capitalisation
June 30, 2012	EUR 2,379,519,078.40	929,499,640	EUR 26.5 bn
March 31, 2012	EUR 2,379,519,078.40	929,499,640	EUR 34.7 bn
December 31, 2011	EUR 2,379,519,078.40	929,499,640	EUR 27.4 bn
December 31, 2010	EUR 2,379,519,078.40	929,499,640	EUR 36.3 bn
October 6, 2010 capital increase completed 308.6m new reg shs issued more	EUR 2,379,519,078.40	929,499,640	EUR 38.2 bn
December 31, 2009	EUR 1,589,399,078.40	620,859,015	EUR 30.7 bn
December 31, 2008	EUR 1,461,399,078.40	570,859,015	EUR 15.9 bn
December 31, 2007	EUR 1,357,824,256.00	530,400,100	EUR 47.4 bn
December 31, 2006	EUR 1,343,406,103.04	524,768,009	EUR 53.2 bn
December 31, 2005	EUR 1,419,610,291.20	554,535,270	EUR 45.4 bn
December 31, 2004	EUR 1,392,266,869.76	543,854,246	EUR 35.5 bn
December 31, 2003	EUR 1,489,546,869.76	581,854,246	EUR 38.2 bn
December 31, 2002	EUR 1,591,946,869.00	621,854,246	EUR 27.3 bn
December 31, 2001	EUR 1,591,215,221.76	621,568,446	EUR 49.3 bn
December 31, 2000	EUR 1,578,275,957.76	616,514,046	EUR 55.2 bn

Branches

Deutsche Bank has offices in major financial centres including London, Madrid, Frankfurt, New York, Paris, Moscow, Amsterdam, Dublin, George Town, Cayman Islands, Toronto, Kuala Lumpur, São Paulo, Singapore, Hong Kong, Tokyo, Sydney, Dubai, Riyadh, Mumbai, Bangkok and Belgrade

       

Management structure and man power

Until recently[when?], there was no CEO at Deutsche Bank. The board was represented by a “speaker of the board.” Today[when?], Deutsche Bank has a Management Board whose members are: Josef Ackermann (Chairman and CEO); Hugo Bänziger (Chief Risk Officer); Anshu Jain (Corporate and Investment Banking); Jürgen Fitschen (Regional Management); Rainer Neske (Private & Business Clients); Hermann-Josef Lamberti (Chief Operating Officer) and Stefan Krause (Chief Financial Officer).

The Group Executive Committee is the Management Board plus the heads of the bank’s other business areas, namely: Kevin Parker (Asset Management); and Pierre de Weck (Private Wealth Management).

The Supervisory Board of the bank is chaired by Clemens Börsig.

It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia-Pacific and the emerging markets. In 2009, Deutsche Bank was the largest foreign exchange dealer in the world with a market share of 21 percent  .

                                                                                                       

Financial Performance

Facts and Figures

The Group at a Glance	2011	2010
Share price at period end1	€ 29.44	€ 39.10
Share price high1	€ 48.70	€ 55.11
Share price low1	€ 20.79	€ 35.93
Basic earnings per share2	€ 4.45	€ 3.07
Diluted earnings per share2	€ 4.30	€ 2.92
Average shares outstanding, in m., basic2	928	753
Average shares outstanding, in m., diluted2	957	791
Return on average shareholders’ equity (post tax)	8.2 %	5.5 %
Pre-tax return on average shareholders’ equity	10.2 %	9.5 %
Pre-tax return on average active equity3	10.3 %	9.6 %
Book value per basic share outstanding	€ 58.11	€ 52.38
Cost/income ratio	78.2 %	81.6 %
Compensation ratio	39.5 %	44.4 %
Noncompensation ratio	38.7 %	37.3 %
	in € m.	in € m.
Total net revenues	33,228	28,567
Provision for credit losses	1,839	1,274
Total noninterest expenses	25,999	23,318
Income before income taxes	5,390	3,975
Net income	4,326	2,330
	Dec 31, 2011 in € bn.	Dec 31, 2010 in € bn.
Total assets	2,164	1,906
Shareholders’ equity	53.4	48.8
Core Tier 1 capital ratio4	9.5 %	8.7 %
Tier 1 capital ratio4	12.9 %	12.3 %
	Number	Number
Branches	3,078	3,083
thereof in Germany	2,039	2,087
Employees (full-time equivalent)5	100,996	102,062
thereof in Germany	47,323	49,265
Long-term rating
Moody’s Investors Service	Aa3	Aa3
Standard & Poor’s	A+	A+
Fitch Ratings	A+	AA-

SWOT Analysis

SWOT is an acronym for the internal strengths and weaknesses of a firm and the environmental opportunities  

and threats facing that firm. It is a technique through which managers create a quick overview of a companies strategic situation.