Monique Leroux: Leading Change at Desjardins Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Monique Leroux: Leading Change at Desjardins

Summary

Monique Leroux was elected as the Chairperson, President and CEO of Desjardins Group which was the world’s sixth largest cooperative financial group. Under her tenure, she made the firm grow rapidly by reaching 45,000 employees, 5,400 elected officers, 397 caisses and total assets of $196.7 billion along with $363 million in patronage. Under her leadership she made a significant transformation while overcoming all resistance at a large Canadian Financial Cooperative operating in Quebec, which was competing with top notch banks in Canada. To compete successfully in a changing and demanding financial service industry, Desjardins integrated and consolidated traditional values to prepare for the future. Leroux however was looking to create stimulate innovations within the organization moving forward in the future therefore; Leroux was looking for different options that she could pursue to in the future.

Problem Statement

With the current financial crisis Monique Leroux is looking to create conditions to stimulate innovation within the organization or within the cooperative partners. She is basically looking to grow the organization in spite of the cultural and financial challenges. The company is looking to prepare for the future while consolidating and integrating the current values in an increasingly inter-dependent financial system.

Suggested Alternatives

Maintaining focus on Quebec

The first option for the company and Monique Leroux, is to stay in Quebec and look to serve the already developed customer base and work within the existing structures business model. The advantages of the current business model will not require alliance or partnership with any of the financial firms because the company has expanded itself in the industry. Another advantage for the firm expanding within Quebec will give the opportunity of market penetration, where they have a strong clientele.

However, the disadvantage associated to sticking within Quebec will be that thegrowth prospect for the company will be stagnant and they will be relying only on the Quebec customers to bring in the business and financial revenues to the company. And if the company does not grow or expand itself, then it actually does not create opportunities for new people take over higher positions in the management. Therefore, in spite a successful firm within Quebec it has to find ways of expanding and entering new regions and markets.

Expanding in Canada

The second option as presented in the case is expanding in Canada. With strong leadership of Leroux and financial strength of the company, Desjardins can look to expand its operations all over Canada. As the case states, the company was already ranked number sixth with more than 45,000 employees; the ideal scenario for the company should involve expansion. The advantages of expanding initially in Canada are that it can enter new regions of Canada by forming strategic alliance or partnership with a local firm that is operating with similar business model of cooperatives. The company can even expand its financial operations because of the business model where the company has become second largest credit union in Canada. Desjardins credit ratings rank among the best in the industry.

In commercial markets in Quebec, market share went up from 18% in 2002 to 28% in 2012 by focusing on small and medium-sized businesses. However, the disadvantage of this move will make the company to raise funds by entering in the different regions of Canada. And as the case states, cooperatives do not have the capacity to increase capital from the equity markets and only gets limited debt on the bonds market. Along with this, moving away will hamper the values of the employees and the company.

Expanding internationally

The third option for the company is to expand globally after becoming one of the most successful financial firms in Canada. The number of employees since the appointment of Leroux has increased dramatically where employees are satisfied and content with their work. The advantage of this move will make the company become a global entity and expand in various geographic regions. This will increase more opportunities for the current employees to transform themselves into potential leaders in other countries. .................

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