Change management and organization leaders - Myassignmenthelp.Com

Question: Discuss about the Change management and organization leaders. Answer: Introduction: Change is the most constant factor in any organizational sector. The most important survival strategy in the present of all the business companies is the constant process of change to entertain the customers and their ever-changing demands. It has to be mentioned in this context that the economy has been in a very whimsical state ever since the global financial crisis, and the danger of recession prevails all the time. Along with that, in the past few decades, the consumerism has grown exponentially as well, in the present, there are a thousand options available for the consumers on almost every sector and retaining customer loyalty has become more difficult than ever. Hence, the business companies have increasing competitive and in order to stay ahead of the game, each business sector attempts to go through a constant process of change at all times (Anderson and Anderson 2010). It has to be mentioned in this context that the implementing any change in the organizational sector is associated with many risks and there are various challenging elements that can serve to be resisting factors in the process of successful change implementation. Now in the light of the present economical conditions, no business sector can avoid the constant change process. That is the reason why the need for efficient change management and leadership expertise is required, so that the resistance and non-compliance to the change implementation can be successfully overcome (Hayes 2014). This report will attempt to discuss the challenges that a business organization can face when accounting any change or crisis, and will discuss how these challenges can be overcome with adequate leadership and change management taking help from a case study. Organizational transformation is a key facilitator of change in the corporate sector and it has to be mentioned that the impact of this transitioning element imparts the greatest effect on the operational and structural characteristics of an organization. In the case study provided for this assignment, the rise and the organizational challenges faced by the ANZ bank has been discussed. This bank has been the pioneer in providing economic literacy and inclusion in the nation and has had a success path to behold ever since its establishment in the late 1800s. However, like any other successful business corporation, there have been many challenges that the organization has faced during the journey of its rise in the economy. On a more elaborative note, in the late 1990s the company has been facing issues like risky financial debts, poor organizational culture and structure, reduced employee morale and most of all customer dissatisfaction. All of this factors have been affecting the bran d image and market stability of the bank and there has been a crucial need for efficient leadership to improve the situation, which has been attempted by the recruitment of Mcfarlane as the new CEO. The leadership changes the newly appointed CEO engaged in were successful in bringing about many benefits to the organization including cost- cutting, job cuts, and massive streamlining and outsourcing; however the most important step taken by this leader has been the organizational transformation (Doppelt 2017). The very first huge change in the operational characteristics of the bank had been to incorporate the strategy Perform, Grow and Breakout. Three of these strategies were indicated at delivering satisfactory financial performance, securing brand image and attempting sustainable leadership and long-term success. According to the most of the theories on organisational change management, any organizational transformation can be directly associated with restructuring and redesigning the business processes of the particular organization (Dixon, Meyer and Day 2010). The above mentioned changes not only attempted to overcome the performance and brand reputation issues that the bank was facing but redefine the operational characteristics of the bank itself (Giltinane 2013). According to the theory of strategic transformation, any organization that attempts to change and modify the strategies is place for regaining the sustainability and competitive advantage in the market is going through a s teady corporate self- renewal. Mcfarlene attempted to follow this organizational transformation type, redefining the business objectives and activities in order to provide the bank a improved and renewed brand image in the consumer market. The breakout strategy is the conspicuous example, which helped Mcfarlene impart a string cultural change in the organization (Edwards 2010). In this process of cultural change Mcfarlene attempted to discover al the discrepancies in the organization, undertake performance management initiatives that helped the individual issues of the employees be identified and addressed for improved performance and productivity. Along with that, the performance review and talent acquisition programs arranged in the bank helped increase employee engagement and loyalty in the organization. The cultural change implemented by Mcfarlene extends to the three phased processes of performance management and talent acquisition. All these changes helped rebuild the core structural strengths of the organization and overcome the organizational discrepancies and issues in the bank. Reflecting on the change management and leadership attempted by Mcfarlene as a new leader, it has to be mentioned that the change management model of McKinsey comes the closest, this a 7 step process of implementing and managing change, shared value, strategy, structure, sy stems, style, staff, and skills. In the organizational transformation attempted the actions by Mcfarlene also attempted to strategise the restructuring procedure for enhanced acceptance to the changes in the business process management structure and system (Hanafizadeh and Ravasan 2011). Along with that, he attempted a completely new style of leadership and focussed on the staff and their skill enhancement and recognition, by developing their talents and rewarding their performance. Overall, as a leader, McFarlane attempted to incorporate a shared value in the entire staff of the organization so that the changes can be accepted and complied to efficiently. The leadership style that McFarlane attempted is closer to the situational kind, as he also had to understand the issues that the bank had been going to through and adapt to the leadership style and strategies that worked best for the situation (McCleskey 2014). The challenges that are faced by the managers in implementing the transformational strategies are related with the results based on the community measures, people, customer, finances and performance management undergone by the managing directors to the divisional managers, customer facing staff and front line support. The first challenge includes the identification of the measurable and tangible benefits that can be accrued over the timeline of several years. Managers often fail to analyse the benefits at the beginning of the transformations. Without the well thought out plan, there exists a risk of the program getting scrapped. Banks mainly face the two types of challenges regarding the availability of the commitment and large amount of budgets by the stakeholders that add impractical requirement into the scope, which increases risks associated with delivery. Constricting the regulatory scenarios forces the bank to move into a fast changing environment which increases the risk associated with the success of the programs undertaken. Multiple stakeholders that arrive with different types of requirement risks the overrun of costs (Infosys.com, 2018). Stakeholder management, communication and governance- large banks function in the form of a model that depicts the organizational structures. Such functioning is completely based on the core banking functions. Thus, when a program needs to be executed that plans to transform the conduct of business and realign to the existing flow of the functions, there comes the hindrances. The change in the organizational functioning prevents the realignment of the previous flow of functions. Studies have shown that managers have reported to be experiencing conflicts between the line organizations and the project. While companies due to trans formational changes have performed in a redundant way due to the harmonized way of execution of the projects. Re-engineering the business process- most of the companies try to infuse and adapt the old practices in to the new systems. This hampers the modern day functioning of the core banking sector that greatly rely on the technology. The implementation structure is complex and the lack of the documentation inhibits the proper functioning of the individual structures (Infosys.com, 2018). Organizations always face the problem of having a transformation as a whole or bring in transformation in a phased manner. The choices made are based on the ability of the manager to execute the strategy; the availability of the skilled worker and teams often impedes the proper execution of the plans; another aspect is the control on the requests related to the change of management. Another important aspect is the identification of the risks and the realization of the values. Winning formula and the methodology of implementation- transformational strategies require the proven and the robust implementation methodologies. The misconception that one solution can solve all the problem is wrong and the managers seldom make this mistake when undertaking the transformational plans. Banking organization needs to move out of the comfort zone of taking ideas from the top managers to solve a transformational change. Whereas, there is a need to change the age old practice and adapt to taking the suggestions from the experts that can deal with the problem effectively. Challenges arise when the core banking systems do not function properly with the integrated working systems. The vital design decisions are not arrived at carefully and this affects the automation of the workflow, performance of the workforce. Migration of data- The old systems often has the issues of inadequate data, lack of proper documentation and insufficient expertise. Mapping of the data, data cleansing and data extraction are one of the biggest bottlenecks in implementation of transformation. The degree of the complexity increases to a large extent when the migration of data takes place across the different types of systems. The designs are faulty and migrations seldom are not done in a proper way, which may result in to derailment of the whole execution plan. Managers must emphasize on this aspect of the issue when considering the implementation of the transformational plan (Infosys.com, 2018). The Company ANZ Bank, is undergoing certain instabilities regarding the bad debts, low employee morale, poor organization, and customer dissatisfaction which is plaguing the company since the mid of 1990. After such poor performance of ANZ Bank for several years, ANZ Bank appointed John McFarlane for the post of CEO in the late 1990s. Along with the new management team, McFarlane managed and developed a program for the organizational transformation. The transformational change is aimed towards the sustainable and competitive advantage over its competitors in the worldwide market. The company under the apt leadership quality of McFarlane showed gradual changes in the financial performances. However, in the late 1990s there was a sudden spread of distrust and ill will towards the major banks located in Australia. Following such distrusts led to the closure of the several branches and increase in fees. There was a widespread perception that the banks are not doing the right thing by the community, to their customers and their employees. McFarlane sensed the major issues related to the bank closure and directed a freeze on the closure of the banks and inhibited the retreat from the rural communities. In the year 2000, step was taken towards the transformation of the organization with an aim to inculcate and convert ANZ Bank in to a bank with human face. A study was conducted within the organization functioning of the ANZ Bank. The data from the study revealed that, there were discrepancies related to the existing employee values, personal values and bank values and the organization perceived the banking functioning. McFarlane emphasized that the bank need to develop values based on the employee input, while not on the values that were dreamt by the senior managers. According to this scenario, McFarlane displayed a situational leadership. Goleman theory of situational leadership, which emphasize on the leadership quality of authoritative leader. This theory states t hat the leader is very good at analysing the problems and the challenges. This style of leadership is accurate for an organization which is drifting away from the targets and the aims (Giltinane, 2013). Later on, The ANZ Bank appointed the McKinsey Co to conduct a thorough study of the culture in bank. McKinsey also conducted a benchmark against Australias other highest performing organizations. After analysis of the report of McKinsey, McFarlane stated that breakout is a must for the stakeholders of the bank, which includes the employees, shareholder, customers and the broader communities. Thus, according to him the removal of the bureaucracy within a banking organization will provide people with a lot of freedom, profound responsibilities and accurate feedback which will contain both the negative and positive feedbacks. Change in culture is an amorphous concept. McFarlane recognized that it is important to both track and measure the success the breakout. Hence, it was seen that management of performance is an integral part of ANZs breakout strategy and people capital. This particular case can be related with the Hersey-Blanchard situational leadership theory which is based on the variable leadership that depends on the situation and the circumstances. The leader acts through the quickest way that benefits the employees and the organization. Hersey-Blanchard situational leadership theory is based on certain behaviours like the participating style, selling style, delegating style and telling style. The participating style emphasize on the share of the ideas and it can be correlated with the fact that McKinsey was assigned to look conduct the survey. Selling style demarcates the explanation of the decisions that can be profoundly found within the statement issues by McFarlane. Delegating style can be referred to the decisions that the managers are delegated the authority to carry out the implementation of the transformational strategies. While the communication style refers to the set of vocal instructions given to all the employees, managing directors and the divisional managers to undergo the performance management (Luo and Liu 2014). Conclusion: On a concluding note, it can be mentioned that the change is an absolutely necessary in order to survive in the present economy and continue to have a sustainable and profitable existence in the market. However, it also needs to be mentioned that an organizational transformation, regardless of its magnitude risks the business process management and functional operational characteristics of the organization as well. Hence, the resistance and noncompliance is more or less inevitable, and that is the reason why the need for efficient leadership and change management is escalating at a rapid rate. There are various change management models which can guide the organizational leaders through a steady and successful process of change implementation, however, the real challenge lies in the ability to understand the exact need based on the situation and issues prevalent in the scenario. It can be clearly deduced from the case study analysed in the assignment that the change management process and its successful implementation depends solely on the abilities of the leader to assess the situation and align the need of the hour with the strategies that he or she is going o implement for overcoming the challenges. Hence, it can be mentioned that is a crisis situation demanding a full scale organizational transformation requires situational leadership most essentially for the change management to be effective. References: Anderson, D. and Anderson, L.A., 2010.Beyond change management: How to achieve breakthrough results through conscious change leadership. John Wiley Sons. 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