Asked Question Overview for  : Management of Change

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Executive Summary 

This project planning report lists major elements that cause or require change management within our organization. It includes identification and analysis of issues requiring change. The issues spread across areas like change management to address changing bureaucracy and stakeholders. The first section introduces to the organization and highlights its basic missions, focus of strategies and talks broadly about the change and its impacts on the organization.  The first section, with the help of models of change management, illustrates why change is required. The following section explains the planning process to manage the change by developing the management plan. It also lists the potential and current impact of change on the organization’s resources like stakeholders. The final section explains how the change management plan will be implemented to stabilize the change for better prospective.

Table of Contents 

1. 1.     Introduction

2. 2.     Analysis of Issues of Requiring Change

3. 3.     Development of Change Management Plan

4. 4.     Implementation Process of Change Management Plan

5. 5.     References

Introduction

We need to include the basic introduction of the organization in order to help us identify and understand the key issues, which are going to be discussed in the context of the change and the change management process. The report specifically discusses the need and impact of change through bureaucratic bodies and types of developments occurring within the organization. The management report gives a careful overview of the background which will serve as the basis of the change and to what extent that change is imperative for the betterment of the organization, in the current economic context. We will also discuss about the strengths and weaknesses of bureaucratic organizations to understand their impact within our organisation. The report will assess the impact of change on key stakeholders to develop the economic plan accordingly. In the end the report will assess how the management plan will be implemented to ensure its most effective implication on all the organizational resources. Let us begin now by giving a brief introduction to our organisation.

Introduction to the International Bank of Finances

The International Bank of Finances (IBF) was established in 1962, and gradually it developed to be recognized as one of the leading inter-governmental organisations in the field of banking and financing. The IBF has the rapport of working in close cooperation with both governmental and non-governmental organizations. By far, the bank has established its branches across 102 member states and is running its offices in over 86 countries across the world.

The IBF has been ensuring effective and reliable banking and financing services to governments and all other stakeholders. The IBF provides orderly management of all kind of banking liquidity and investments issues, all in line with legislative and economic trends to ensure maximum governmental and international banking cooperation.

Considering that change is inevitable for any organization to operate, but still organizations and resources tend to resist the change for one or the other reason. However, there are many internal and external factors which keep causing change in an organization and its management plans (Hatt, J. 2003). Therefore, we as a management team need to address the change by understanding out missions, strategy focus to implement an effective change management plan. The mission of the IBF is to provide the best banking and investment benefits to society and commercial institutions. It seeks to effectively meet growing operational challenges. The IBF also seeks to successfully address the banking issues to promote social and economic development through its operations. The management strategy of the organization is to constantly provide its customers the most cost effective services. It plans to stay in pace with technological advancement and address with success the growing complexities that occur due to it.

Analysis of Issues of Requiring Change 

As Brown, D. R., and Harvey, D. 2006 understand, there could be three major trends which essentially contribute to causing and shaping change. The three trends include, 1) globalisation and growing competition due to it, 2)  Information technology and its advancements, which makes it necessary for an organisation to bring change in its technological development strategies and thereby ways of operating and functioning, and 3) Management and operational challenges and innovation which become imperative to deal with changing economic and market trends. Today, every commercial organization wants to keep pace with the e-business sector, which is showing radical change in terms of technology and in the way a business is carried through it. Therefore, as Brown, D. R., and Harvey, D. 2006 suggest there has to be managerial innovation to deal both with global competition and challenges posed because of dynamic technology trends. Let us make a brief literature overview to understand the key issues subjected to change management.

Literature Overview

Lewin, K, 1947 made one of the initial attempts to study the process of change in organization management. He made two salient observations, which included, first, that change initiatives always encounter strong resistance from resources, despite the general agreement on the management goals. Second, that implementation of change management process is often short lived and system tends to return to its preceding state after a few months only. The second observation was even confirmed by Ancona, A., Kochan, T.A., Scully, M., Van Maanen, J., & Westney, D. E. (2005). The literature leads us to understand that organizations tend to strongly resist change, because of factors like habits and group norms.

Therefore in the change management plan we need to make provisions for reducing the effect of forces that tend to resist change. Besides, Lewin, K. 1947, also concludes that reducing the resisting forces proves to be more successful than increasing those forces, which are in favor of change. The research gets us to an understanding that the change management implementation process requires us to carefully analyse the resisting forces, to lead effective change process and ensure post-change stability.

Analyzing Key Issues

The IFB has widespread market coverage and strong international presence. It is affected by growing global competition, technological advancement and complex managerial innovations, in order to address the change. The bank serves both retail and corporate stakeholders by providing services like credit cards, commercial loans, mortgages and investment services. Its corporate client base includes both from small to large-scale enterprises. The change management plan undertakes management of headquarter, all other branches and offices across the states and countries. We need to address the response of the employees involved in the management plan at branch level and training sessions, to the change. Apart from this, we need to broadly address bureaucratic change, organizational development and stakeholder analysis.

1. Bureaucratic Change: Being an inter-governmental organization, there has to be higher degree of consistence, which is required to be maintained in implanting management change. The services and control enforced by headquarter must be in-line with the law and procedures. We need to give due consideration to the interests of stakeholders before we deliver the final outcome. It is important to exploit opportunities to reduce the perception of bureaucracy to implement an effective change management process and avoid delays (Jiménez, J. 2012).

We need to analyse weaknesses of bureaucratic organisation, which can affect level and scope of innovation and development in the organization. Consistency with bureaucratic organizations is important to maintain the goodwill of the organization. There is a possibility that differences and squabble with bureaucracy will impede the decision making process of the organization causing loss of goodwill and business (Kickert, W. 1997, p.232).

1. Organisational Development: Organizational development takes place out of planned and organized management in order to lead the organization to effective results. It requires analysis of organizational behaviour (Addison-Wesley, 1969, p. 9). It is apparent that today organizations function in the radically changing environment. Therefore, it is necessary for an organization to manage this change effectively. Organization development leads to influence its members to expand their competitiveness and responsibility. If organizational development is not in line with the competitiveness of its members and resources, it leads to lack of effective vision and successful decision making (Neilson, 1984, pp. 2-3).
2. Stakeholder Analysis: Understanding the interests and responsiveness of stakeholders is very important while managing the change. Analysis of stakeholders plays a decisive role in the success or failure of an organization. It requires us to identify key stakeholder which must be impressed to win their stable support. Opinions and views of stakeholders can help the organization shape the decision making and effective management of the organization. The key stakeholders of our organization include employees, management, analysts and beneficiaries. In order to prioritise key stakeholders we need to classify them as highly powerful and greatly interested, highly powerful and lesser interested, less powerful but highly interested and less powerful and lesser interested. Based on these criteria, the IBF will have to prioritize the key stakeholders in the order of beneficiaries, management, employees and bureaucratic organizations.
3. Besides the internal we can list certain external forces that drive change in the organization. We need to assess the economic trends, and if there is any potential economic crisis we need to manage the change so that it does not adversely affect the organization. Another important external force is technological advancement in the banking sector like e-banking and extensive online networking.

 Development of Change Management Plan with Stakeholder-based Approach

Farkas-Conn, I. 1999 suggests that the reorganisation of large international bank required reshaping the strategies with which they represent the communities or stakeholders that they serve. Accordingly, the IBF should hire personnel to understand the global market and potential competitiveness, which needs to attained. The organization also needs to understand the local economies. The new management plan for the change should have the motto, “think globally, act locally”, as Anderson Consulting believes.

In order to maintain financial responsibilities to our shareholders, we need to shift our operations into largely serving the SMEs.

The managerial innovation should be directed towards developing technological consistency with effective IT planning along with a productive shift in the marketing.

 In order to give maximum returns to the beneficiaries, we should explore and exploit the scope of best possible financial services and support to stabilize their association with the organization. The bank will have to work on carrying out both internal targets for organizational development in line with desired change in resources and targets against competitors. The plan will include the development of measures to assess the growth, efficiency, technological development and delivery of service. Since we have analysed the beneficiaries or customers as the prime key stakeholders, thus satisfying their needs and interests will be of our paramount focus.

Besides, we will manage the change following the process flow for Planned Change Management.  The following chart suggests direction to carry the change management change based on the stakeholder approach.

Objectives of Change Management Plan

Objectives of change management plan will be to introduce long-term change in the organization. For this purpose the management team will have to be credible, which will also determine the objectives of the plan. Following chart lists the main objectives of the plan:

• Identify the stakeholders and resources requiring change to capture the local economy and SMEs.
• Determine the entire change management process and accordingly constitute a change management board.
• Determine tools to carry out the change management process.
• Establish change management process responsibility on the team and board.
• Execute the change and establish control for successful management.
• Assess the risk or reverse impact of change on the business.
• Communicate the final changes to affected resources and stakeholders.

• Evaluate the change by analyzing changes to the project plan, project time and effort involved

Track the completion of change process by designing a time-specific schedule and expected targets or results. MANAGING THE RESOURCES OF THE ORGANISATION

RESOURCE OF THE ORGANISATION

Resource of the organisation includes:

-STRATEGY

-PEOPLE

-PROCESS

-TECHNOLOGY

Strategy: The importance of customer service must be recognized by the management team.

 1)     Try to increase customer responsiveness and levels of satisfaction.

2)     Take steps to increase customer loyalty and retention.

3)     Reduce cost of marketing and account acquisition.

4)     Take steps to enhance corporate image and gain competitive advantage.

People: We can truly state the ownership of the company belongs to the employees and only an organisational structure that support customer needs is successful

1)     Broad empowered team focusing on external clients.

2)     The results of the team are measured and they are accountable.

3)     Performance is linked with rewards.

4)     Associates in direct contact with customers have information, resources and power in hand.

5)     The team structure should be horizontal.

6)     A continuous improvement process should be in force.

Process:

1)     Handling effectively and making timely delivery of customer request e.g., sales and ordering.

2)     Providing good quality product or service by giving a timely response and resolution of customer or problems triggered internally i.e. providing report on all aspects of service delivery and performance management.

3)     Correct and timely bills, which includes invoices, handling adjustments and collecting payments.

4)     Determining any other gaps prevailing in the current functionality.

Technology:

1)     Flexibility and innovation can be achieved by advancement in both operation support system and customer facing technology.

2)     Company has to be really active so that personalized service can be provided even in a impersonal environment.

3)     Utilizing latest technology so that coordination across all customer contact channels can be achieved.

4)     Provide 24x7x365 service.

5)     Provide personalised service to the customers.

6)     A knowledge and data sharing infrastructure needs to created.

STAKEHOLDERS OF THE ORGANISATION

The key stakeholders of our organization include employees, management, analysts and beneficiaries. In order to prioritise key stakeholders we need to classify them as highly powerful and greatly interested, highly powerful and lesser interested, less powerful but highly interested and less powerful and lesser interested.

July to Oct Change Management Development Plan

Considering our objectives of expanding our reach in the SMEs and promoting interests of our key stakeholders we will follow the holistic approach of development plan. The table below will list the tasks to accomplish the plan objectives in time-specific manner.

Potential Impact of Change on Resources:-

• The resources will be trained to match up to latest technological developments.
• Key stakeholders will be managed closely to keep them satisfied and sustained.
• The resources will be directed to focus on capturing the SMEs market and local economy.

Communicate Change Plan To Stakeholders and Resources

Communication with stakeholders is utterly important as takes years to build trust but only an event to break it. We have to identify best methods to communicate with our key stakeholders and inform them about the plan of change and its impact on them.

We can communicate through the following modes:

• Formal dialogue forum like meetings, mail shots, public relation consultants
• General Media to promote the plan which intends to enhance the interests of beneficiaries and SMEs
• Workshops to train and involve the resources in t he plan of change.

Implementation Process of Change Management Plan:-

Change management is not over with just the development of the change management plan. It includes careful and insightful implementation. Successful implementation would require effective involvement of the resources like people and resources which will be affected by the change. If the IFB will try to impose change on the resources, it will rather create more problems. If we want to implement change process successfully, we have to set realistic and measurable change targets.

Before we can begin implementing the measurable organizational change, we will have to start managing the personal change. The management change will have to assess it beforehand that will it be able achieve the change itself, before it can be applied on the organization itself.

Considering the rapidly taking place changes with managerial innovation, we can implement the change with problem-bases learning approach (O’ Grady and Alwis, 2002). It will require the organization to substantial time on specific problems on daily, weekly or monthly basis. This approach will prove very helpful in keeping close track of the change process.

IMPLEMENTATION OF SMART OBJECTIVE :-

SMART implies SPECIFIC, MEASURABLE, ACHIEVABLE, REALISTIC and TIMELY. I would here like to evaluate our change plan with respect to the smart objectives.

Specific – The objective should by specific and clearly understood by all the employees so when see our plan the objective is very clear i.e. to achieve operational efficiency and use upgraded version of technology and even the rewards which the employees will get are clear.

Measurable– One more factor which is very important while you are drafting the plan is that the outcome should be measurable as then only we can comment on the success of the plan implemented.

Achievable– It another very important issue as there is no point running after an objective which cannot be achieved. So the objective set should be achievable in the set period of time. The objective stated in our plan is very well achievable in the set duration of time.

Realistic– The objective should be achievable as the objective undertaken can be achievable

Only when the employees have the required skill set for the purpose and the requisite resources should also be available like to provide 24x7x365 service require additional manpower and to provide personalized service and a timely response to the customer the employees should have the access of latest software wherein all the data pertaining to a particular customer is available in no time.

Timely– It means the deadline given should be realistic in accordance to the resources and work environment of the organisation, even the responsibilities allotted to every employee should also taken into consideration (National policy improvement agency).

How to Implement the Plan of Change

• The plan will address how the change will lead to benefit to organization, resources and stakeholders. It will also determine how the change will occur manage each change as it occurs.
• We will request or inform for technological change through written and direct communication and it will be legally mandated on the resources.
• We will constitute business transition manager to incorporate change in the overall management and operations.
• In order to bring change in competitiveness of resources we will hire adequate resources and obtain funding to make sure that the plan is successfully executed.
• Technical configuration will be developed to describe how tools will be utilized and managed.
• We will develop change management plan forms and logs to use as templates for change management and its tracking.

Monitoring Change Management

In order to monitor change management we will schedule the change management determining the baselines, conditions and agreements. As the criteria to ensure plan-perfect change management we will establish costs change management. We will develop a budget to decide how the costs will change when the change is occurring.

Conclusion

The change management process report of the IBF discussed the key changes which will be addressed for effective operation and growth of the organization in the long run. It prioritized the key stakeholders, who will be affected by the change; thereby it suggested stakeholder-based change management approach to develop the management plan. In the final section the report suggested problem-based approach to successfully implement the change process.

Reflective statement

The change whenever brought in any organisation is always resisted by the employees but the change plan enforce in our organisation is well planned hence would fit in the organisation easily. I as an employee would benefit from the change as it would involve up gradation of the technology in the company so it will improve our skills as we would be updated with the latest technology and have full knowledge of the latest technology available in the market, even the rewards would be linked with the performance so in case we perform better we would get a higher pay so it adds to the motivation to contribute to the best of the capabilities. I as an employee would develop and flourish with the organisation and any change brought in for the development of the organisation would definitely add to the development of the employees as well.

References:

Addison-Wesley, 1969. Organization development: Strategies and Models, p. 9.

Ancona, A., Kochan, T.A., Scully, M., Van Maanen, J., & Westney, D. E. 2005. Managing for the future: Organizational behavior & processes. (3rd ed.). Ohio: South-Western.

Brown, D. R., and Harvey, D. 2006. An experiential approach to organization development. (7th ed.). New Jersey: Pearson, Education, Inc.

Farkas-Conn, I. 1999. New Strategic Partnerships Between Large International Banks with Small- and Medium-Sized Enterprises. American Society of Information. Bulletin, Vol: 25, No.2.

Hatt, J. 2003. Hiatt, J. 2003. Change Management: the people side of change.Learning Center Publications, Loveland, CO.

Jiménez, J. 2012. Change Management: Reducing the perception of bureaucracy with

standard changes. TSO. Information and Publishing Solutions.

Kickert, W.1997. Public Governance in the Netherlands: An Alternative to Anglo-American ‘Managerialism. Public Administration, Vol.75. No.4, pp.731-752.

Lewin, K. 1947. Frontiers in group dynamics-concept, method, and reality in social science: Social equilibria and social change. Human Relations, 1(1), 5-41.

National policing improvement agency. ‘Smart objectives’ viewed on 24 July 2012.

< http://www.npia.police.uk/en/docs/Example_SMART_Objectives.pdf>

Neilson, 1984. Becoming an OD Practitioner. Englewood Cliffs, CA: Prentice-Hall.

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