Core competence – How a bank discovered it wasn’t banking

by Finn Majlergaard | 10. Mar, 2025 | Blog, Article, blog posts on creating great corporate cultures, company culture

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Leveraging Culture through Core Competences: A Bold Strategic Shift

This article explores what can unfold when an organisation examines its corporate culture and core competences with a truly open mind. It is also about having the courage, as a leader, to make bold decisions that fully leverage those core competences in support of long-term success.

A European bank approached Gugin with a request to help align its corporate culture with newly defined strategic objectives. Having recently undergone a merger, the bank—like many organisations in similar situations—was experiencing some cultural friction. Post-merger integration often reveals tension points, but during our initial assessment, we found no severe problems. That in itself was a pleasant surprise.

This allowed us to shift our focus towards designing a new company culture that could harness the core competences of the merged organisations and support the bank’s strategic vision. Gugin initiated its standard dual-assessment process.

The first phase involved our Cultural Due Diligence process, which provides a comprehensive quantitative and qualitative analysis of an organisation’s culture. In this case, we mapped the ‘cultural DNA’ of both legacy banks, and also constructed a third—an aspirational cultural DNA representing the values and behaviours required to deliver on the bank’s strategy.

Comparing the three cultural DNAs revealed significant gaps. The cultural differences between the two merged entities were manageable. However, the gap between the current cultures and the desired culture was alarmingly large.

We presented our findings to the executive team, recommending that we complete the second phase—our Organisational Effectiveness Assessment—before drawing conclusions. Some leadership voices began expressing regret over the merger, believing they had focused too narrowly on cost synergies and market expansion while underestimating the cultural implications.

Nonetheless, we agreed not to act prematurely. The Organisational Effectiveness Assessment aims to identify ‘cultural friction’—situations where processes, systems, or norms hinder people from doing the right thing. For example, if a company claims to prioritise customer service but rewards only financial performance, cultural friction results. It’s the organisational equivalent of driving with one foot on the accelerator and the other on the brake.

As the assessment progressed, it evolved beyond internal boundaries. We included select customers in the process to gain an external perspective on cultural alignment.

The Big Gap in Core Competence

When asked what they believed their core competence was, the bank’s senior leadership pointed to technical banking skills and product-specific expertise. When pressed on how they validated that view, the response was simply, “Because we are a bank.”

We shared an unexpected insight: their core competence wasn’t banking. It was customer relationship management. Our cultural and organisational assessments, together with customer feedback, painted a consistent picture—one of employees striving to deliver outstanding customer service despite clunky systems and lack of product knowledge. The culture was deeply customer-centric, not driven by rigid rules but by long-held values and relationships.

This revelation posed a cultural dilemma: should the bank remain anchored in traditional banking operations, or pivot to embrace and enhance its true core competence?

The Courageous Decision

Initially, the bank intended to outsource back-office operations, including call centres. But as we explored the strategic options, we debated an even more radical path—outsourcing the banking operation itself and focusing entirely on their customer-centric strengths.

At that time, it felt too bold to suggest. But just one week later, the executive team made the daring decision to do exactly that: they would outsource their core banking operations to a white-label provider, a global player with cutting-edge systems. This would allow them to channel their energy and talent into what they did best—building deep, human, customer relationships. That was their core competence, and it was one no competitor could easily replicate.

The Outcome

Migrating to a third-party banking platform was technically complex and, at times, painful. But the transition succeeded. At the same time, Gugin guided the organisation through a cultural transformation that aligned seamlessly with their new strategic positioning. With friction reduced and clarity restored, energy surged back into the organisation.

Challenges remained—naturally—but they were manageable. And crucially, because the transformation preserved and celebrated the company’s strongest cultural values and core competences, the majority of employees and leaders chose to stay. Their commitment helped smooth the transition and embedded a new, unified culture built around authenticity and strength.

In the end, this bold decision redefined the bank—not by abandoning its past, but by rediscovering its true core competences and making them the centrepiece of its future.


Action Points: Discover and Leverage Your Real Core Competence

  • Reach out to Gugin to assess whether your organisation’s perceived strengths align with your actual core competences.

  • Let us help you evaluate how well your corporate culture supports your long-term strategic goals.

  • Use our Cultural Due Diligence and Organisational Effectiveness Assessments to uncover hidden value and reduce cultural friction.

  • Understand how your core competences can become your unique competitive advantage—something no one else can replicate.

  • Transform uncertainty into opportunity by aligning your culture, strategy, and operations around what you truly do best.

Gugin – Get in touch 

 

How can Gugin help you discover your organisation's true core competencies?

It is only natural we assume that a company's products and services are its core competencies. Often it is, but not always as we have just learned. Gugin has helped a lot of companies around the world discover their true core competencies. The companies, where we find that their core competencies are not directly associated with their products or services, all have one thing in common. Things have changed. Their product or service used to be their core competencies but changes in the external environment have moved the company in a new direction.

A cultural due diligence is a good start

We always start by conducting a Cultural Due Diligence on the organisation. It is a process and a tool developed by Gugin over the past 20 years, whose purpose is to identify the core values of the organisation - in short, the cultural DNA of your organisation. They are usually not the values you see in the corporate presentations, but the true values that drive the decision processes, the attitude towards employees and customers, etc. These values change gradually over time because any organisation has to adapt to the external environment.

You become good at what is valued. So your core competencies in your organisation are closely linked to your organisation's true values. When we have identified the true values via the cultural due diligence we will look at how the supporting behaviour is, how the surrounding systems are, etc.

Then we have an excellent foundation for identifying the core competencies - the things you do better than anyone else.

The last part of the process is a discussion with the leadership team on what they will do next. When there is a gap between what you think you are good at and what you in reality is good at you have to make a choice. 

You either have to choose to strengthen what you are really good at and get someone else to do you the rest or you have to develop your corporate culture and develop your core competencies so you become good at something else.

The only option you shouldn't choose is to keep on pretending you think you know what your core competencies are before you have verified it.

 

 

Dr Finn Majlergaard
Dr Finn Majlergaard

CEO Gugin, Professor, Author, Keynote Speaker, Author

  • We align your corporate culture with your strategy.
  • We take you safely through major changes in your organisation.
  • We develop the crucial cultural intelligence in your organisation by training your employees and leaders
  • We help you develop a competitive advantage with a unique corporate culture

Gugin has helped more than 600 companies around the world creating a winning corporate culture.

Contact Gugin

Top 5 challenges for managers

I just say things as they are…

I just say things as they are – is a phrase we often hear. It reveals that the person saying it has very low cultural and emotional intelligence

What separates a good leader from one who truly moves people? Research — and decades of cultural intelligence practice — point to one word: charisma. And unlike talent, charisma can be learned.

In 1979, Warner Records refused to send Prince on tour. Not because of his music — they knew he was exceptional — but because he lacked charisma. He couldn't yet move an audience. Fast forward one year, and Prince had transformed himself into one of the most commanding performers in the history of popular music. He didn't wait for charisma to arrive. He worked at it, systematically, studying and adopting the techniques of the performers he admired.

That story is not just about rock and roll. It is a precise metaphor for leadership. At Gugin, we have spent over two decades helping leaders across cultures and industries make exactly this kind of transformation — not by telling them to "be more confident," but by equipping them with concrete, learnable strategies rooted in emotional intelligence, cultural intelligence, and communication science.

 

Why Most Charisma Advice Fails

The most common advice leaders receive about charisma is frustratingly vague: project confidence, be warm, be present. These qualities do matter. But they are nearly impossible to "just do" on command, especially under pressure, across cultures, or in unfamiliar organisational contexts.

Research by Professor John Antonakis and his colleagues at the University of Lausanne Business School has shown that charisma is not a personality trait reserved for the few — it is a set of communicative behaviours that can be identified, taught, and practised. In their studies, randomly selected middle managers who underwent structured charisma training were subsequently rated by peers and subordinates as more charismatic, more competent, and more trustworthy. The training worked.

At Gugin, we have built on this science and gone further — weaving it together with emotional intelligence (EQ) and cultural intelligence (CQ) to create a leadership development approach that is both evidence-based and globally applicable.

The Nine Charismatic Behaviours — And What They Really Require

The Antonakis research identifies nine concrete charismatic leadership tactics: using metaphors and stories, showing moral conviction, expressing shared feelings, setting high expectations, using contrast and rhetorical questions, using lists, and animating communication with body language. These are the building blocks. But building blocks need a foundation — and that foundation is emotional and cultural intelligence.

Take metaphors, for example. A metaphor is only powerful if it resonates with the audience. In Gugin's cross-cultural leadership programmes, leaders quickly discover that a metaphor drawn from American sports culture may fall flat in a team from Northern Europe, and that a story invoking individual heroism may alienate a collectivist audience in East Asia. The charismatic tactic is the same; the cultural calibration is everything.

The same applies to moral conviction. Appealing to shared values is one of the most potent charismatic tools a leader has. But whose values? Which moral frameworks? A leader operating across multiple cultural contexts must understand that concepts like fairness, loyalty, duty, and hierarchy carry profoundly different weight in different cultures. High cultural intelligence — the ability to read, respect, and adapt to cultural difference — is what allows a leader to express genuine moral conviction that actually connects rather than alienates.

Emotional Intelligence: The Inner Architecture of Charisma

Charisma without emotional grounding is performance. It can work in the short term, but it rarely sustains trust. The leaders Gugin works with are taught to understand that emotional intelligence is not a soft supplement to charismatic leadership — it is its inner architecture.

Consider the tactic of expressing shared feelings. Antonakis identifies this as key: when a leader says "I feel the same uncertainty you do, and here is how I am holding it," they build identification and trust. But this requires real self-awareness. Leaders must be able to name and regulate their own emotional states before they can credibly reflect the emotions of others. In Gugin's programmes, we invest significant time in developing exactly this capacity — helping leaders identify their emotional triggers, understand how their inner states broadcast outward, and build the emotional vocabulary needed to communicate with authenticity.

Empathy — a core dimension of emotional intelligence — also directly underpins several charismatic behaviours. Setting high expectations while simultaneously communicating belief in others (another of the Antonakis tactics) requires a leader who genuinely sees the potential in the people around them. That kind of seeing is empathic. It cannot be faked over time. When Prince produced the band The Time for Warner Brothers, he did not simply demand excellence — he made each member believe they were capable of more than they thought. That is emotionally intelligent leadership in action.

Cultural Intelligence: Charisma That Travels

One of the most important — and most overlooked — dimensions of charismatic leadership in today's world is its cultural portability. A leader who is magnetic in one cultural context may be perceived as arrogant, shallow, or inappropriate in another. This is not a flaw in those audiences. It is a signal that charisma, like all communication, is culturally embedded.

Gugin's work in over 60 countries has shown us that the nine charismatic tactics are universal in their structure but must be culturally adapted in their expression. Rhetorical questions, for instance, invite participation and create anticipation — but their delivery must match the power-distance norms of the audience. In high-hierarchy cultures, a rhetorical question from a senior leader may silence a room rather than energise it. In low-hierarchy cultures, it may spark exactly the engagement intended. Cultural intelligence tells the leader which dynamic they are working in, and how to adjust.

Similarly, the use of storytelling — one of the most powerful charismatic tools — varies enormously across cultures in terms of what stories are appropriate, how direct or indirect they should be, and what kinds of protagonists resonate. Gugin teaches leaders to build a culturally diverse repertoire of stories and to develop the sensitivity to know which story belongs in which room.

How Gugin Trains Charismatic Leaders

Gugin's leadership development programmes integrate the science of charismatic communication with structured development in emotional and cultural intelligence. The process is iterative and experiential, not theoretical.

Leaders begin by gaining honest self-awareness: understanding how they are currently perceived, what emotional signals they project under pressure, and how their default communication style reads across cultures. This foundation phase often surfaces important blind spots — the technically brilliant executive who speaks too abstractly to inspire, the empathetic manager whose conflict-avoidance reads as a lack of conviction.

From there, leaders move into skill-building: practising charismatic communication tactics in safe, structured environments with real feedback. They learn to craft metaphors that carry cultural resonance, to tell personal stories that build connection without oversharing, to use contrast and rhetorical structure to sharpen their message. They receive coaching on non-verbal communication — the body language, vocal variety, and presence that Antonakis identifies as essential to bringing charisma alive.

Finally, leaders apply these skills in live contexts, with coaching support, and receive 360-degree feedback that tracks their progress. This mirrors the approach Antonakis found to be effective — group training combined with individual coaching — and embeds it within the broader cultural and emotional intelligence framework that makes the development durable and globally relevant.

Charisma as a Leadership Responsibility

There is a deeper point worth making. Charisma is not about making yourself more impressive. At its best, it is about making others feel seen, energised, and capable of more than they believed. It is about communicating in a way that bridges difference, builds shared purpose, and creates the conditions for people to do their best work.

In a world where leaders must navigate unprecedented complexity — technological disruption, geopolitical volatility, multi-generational and multicultural workforces — the ability to communicate with clarity, conviction, and emotional resonance is not optional. It is a strategic capability.

Prince didn't work on his charisma because he wanted to be famous. He worked on it because he knew, instinctively, that the music mattered — and that without the ability to connect, the music would never reach the people it was meant for.

The same is true of leadership. The work matters. Charisma is what carries it across.

 

About Gugin  |  Gugin is a global advisory firm specialising in cultural and emotional intelligence. We help organisations build the leadership capability to thrive in a complex, multicultural world. Learn more at www.gugin.com

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