Moral Transitioning: Rivalling Storylines of Strategy-Identity Change in a Dutch Bank

This dissertation explores the evolving role of banks in the Netherlands, particularly in light of societal pressures and moral responsibilities that extend beyond their traditional function. The case study focuses on “North Bank” (a pseudonym), which is undergoing a phase coined as "moral transitioning," where it seeks to address past wrongdoings, align with sustainability goals, and combat financial crime. The study highlights the complexities of this transformation, including internal and external tensions, persistent negative public perceptions, and the ambiguity surrounding North Bank's shifting organizational identity.

The central question raised in the dissertation is: “How do North Bank’s organizational members navigate and engage with challenges related to the strategy-identity change process of moral transitioning?” Public dissatisfaction perpetuates the view that banks prioritize their commercial interests over societal welfare. Despite North Bank’s efforts to implement a sustainability strategy and tackle financial crime, these actions may be perceived as reactive rather than genuine. This skepticism reflects the difficulty of overcoming the "sticky" past—a legacy of organizational misconduct that continues to haunt the bank.

The dissertation argues that North Bank's moral transitioning consists of two key steps: acknowledging past wrongs and attempting to atone for them by shaping a positive future. However, the organization struggles with misalignment between its evolving identity and strategic direction. Organizational members face challenges in embracing the new trajectory, especially when the shift is sudden or lacks clarity. Temporal dynamics—how the past, present, and future are perceived—are critical in shaping these transformations. While external pressures push the bank to reform, internal discussions about sustainability and compliance with laws like the Wwft (anti-money laundering) legislation reflect ongoing resistance and ambiguity.

The dissertation also explores the influence of conflicting internal and external narratives on North Bank’s strategy. Externally, societal pressures demand accountability and change, while internally, different levels of the organization exhibit varying degrees of support or resistance to new strategies, such as sustainability initiatives. These divergent perspectives create ongoing tensions that must be navigated by the bank’s leadership. The concept of "spatial work" is introduced to describe how managers reconcile these conflicting viewpoints and guide the organization through a landscape of multiple potential paths.

In coping with a shifting organizational identity, the study demonstrates that North Bank has been trapped in a state of uncertainty and ambiguity. Its core organizational identity is centered around survival, making it highly sensitive to external judgments and challenging to establish a clear direction amid competing narratives. The bank's leadership has adopted a transitional approach, gradually implementing changes and allowing for multiple interpretations of the organization’s identity to coexist. This flexible, adaptive strategy helps mitigate resistance and fosters a more sustainable evolution of the bank's identity.

Overall, by exploring how organizational members at North Bank make sense of organizational changes, the dissertation underscores the importance of sincerity and authenticity in moral transitioning, and how these qualities influence the success of strategy-identity alignment in navigating societal and temporal expectations.