Cultural Dimensions in Poland and Colombia: A Comparative Analysis

The assignment content discusses the management of change process by John McFarlane in a banking institution using Breakout Strategy. It also compares cultural dimensions between Poland and Colombia based on Hofstede's Six Cultural Dimensions, highlighting their similarities and differences in power distance, individualism/collectivism, masculinity, uncertainty avoidance, long-term orientation, and indulgence.

Change Management

Executive Summary
The paper is divided effectively along two different parts. The first part analyses the
organisational transformation scenario generated in ANZ Bank by its CEO, John McFarlane.
It analysis the different types of cultural transformations brought about in the firm by its CEO
with its relevant impacts on the operations of the firm and its human resources. Further, it
reflects on the different challenges that are countered by the management of firms like ANZ
endeavouring such cultural transformations for implementing the transformation strategies. It
also analysis the leadership qualities of two CEOs like John McFarlane and Michael Smith
pertaining to ANZ Bank. The second part of the paper focuses on analysing and comparing
the cultural paradigms of two different nations, Poland and Columbia through the use of
Hofstede Cultural Dimensions Model.

Table of Contents
Part 1..........................................................................................................................................4
Main Features of Organisational Transformation..................................................................4
Challenges for Managers in Implementing Transformation Strategies.................................6
Evaluation of the Attributes of Key Leaders at ANZ............................................................6
Attributes of Jon McFarlane as CEO.................................................................................6
Attributes of Michael Smith as CEO.................................................................................7
Role of Leadership in Influencing, Directing and Managing Change...................................7
Part 2..........................................................................................................................................8
Cultural Dimensions between Poland and Columbia.............................................................8
References................................................................................................................................10

Part 1
Main Features of Organisational Transformation
McFarlane teamed up with his new management group in ANZ Bank to develop a program
for bringing about organisational transformation that aimed in bringing about a competitive
and sustainable advantage for the firm in the long run. The ANZ Bank was suffering
immensely owing to the closure of a number of branch outlets with also increases in the fee
structure. McFarlane observed that ANZ had retreated from serving the rural communities
with also the absence of women in responsible roles along the bank’s hierarchy. The change
program initiated by McFarlane was implemented in a rapid fashion through generation of
increased cost cutting in large number of branches of ANZ Bank and also in terms of bailing
investments along different emerging markets that helped in reducing the risk profile of the
bank. Further, McFarlane also focused in restructuring the operational activities of ANZ’s
head office by means of streamlining and outsourcing of banking operations and also through
generation of large scale reduction of staffs involved in the bank’s headquarters. The change
management program brought about by McFarlane potentially contributed in reducing the
cost-to-income ratio for ANZ Bank while also enhancing and sustaining the customer and
employee satisfaction rates.
Further, the change program of McFarlane also contributed inn shifting the bank’s focus from
corporate banking to retail banking such that it started targeting high value retail customers.
The initial steps towards organisational transformation were undertaken by McFarlane and
his team during 2000 where they focused on enhancing and highlighting the human face of
ANZ. The change strategy undertaken by the team were mainly based along three parameters
like Perform, Grow and finally Breakout. In terms of Performance, the change program
encouraged the bank to not only deliver increased performances but also generate high
returns for its shareholders. In terms of Growth, the change program ideally focused on
enhancing the potential of bank’s revenues, market leadership and brand image. Finally, in
terms of Breakout the change management team aimed in generation of sustainable
leadership and also in promoting long-term success for the banking firm (Kouzes & Posner,
2017).
Subsequently the management team at ANZ commissioned McKinsey and Co. for conducting
an effective audit of the bank’s cultural parameters. The study conducted by McKinsey
revealed potential gaps between the values of bank and personal employee and also the
manner in which the employees perceived the banking organisation. The survey reflected a
combination of both positive and negative inferences from the employees. Employees
observed the existence of bureaucratic and hierarchal elements in the firm and also existence
of a silo mentality while also exercising greater control over information and not sharing
them with subordinate teams. McFarlane in terms of designing the change program rightly
understood that banks are required to generate values based on the inputs rendered by
employees and staffs rather than the values interpreted by the visions of the senior
management team. Similarly, McFarlane also stressed on the generation of decisions in terms
of engaging the inputs provided by the subordinate members of the different departments and
also in contributing in the formulation of a shared vision promoting organisational success.
The change program designed by McFarlane contributed in benchmarking the performances
of the bank with other high performing organisations operating in Australia. The study
enabled ANZ determine its areas for improvement and thereby helped in designing a
performance and value assessment survey.

Inferences gained from the assessment of value and performance ethic contributed in
providing guidelines to the upper management of ANZ for developing and in also effectively
undertaking the strategic elements of Perform, Grow and finally Breakout. The Breakout
strategy of the Change Management program was considered as the pivotal or the central
focus such that it focused on bringing about a cultural transformation in ANZ Bank. This
strategy essentially focused in generating newer experiences for the different stakeholder
communities of the bank like employees, customers, shareholders and also other members of
the different external communities. Further, the Breakout strategy also focused on reducing
the element of bureaucracy involved with ANZ’s operations and rather aimed in generating
greater freedom to the internal people. The employees were further encouraged for handling
greater responsibilities and also in generating effective feedbacks both positive and negative
freely to the higher management (Keller & Price, 2011).
McFarlane and his team also contributed in designing a team catered for generating breakout
and cultural transformation in the firm. Three major initiatives were undertaken by the
breakout and cultural transformation team like designing of breakout based workshops and
also in designing charters and consulting for generating Breakout. The Breakout workshops
were focused on being designed to promote both emotional and also personal development of
the individuals. It encouraged the participants for evaluating their thoughts and values that
contribute in driving their behaviours for generating performances, effectively explore the
impact of such interactions on workplace standards and also help in developing an
understanding of shared interests and values of internal members in actionable terms.
Breakout strategy designed by McFarlane and his team is viewed as an effective charter that
guides process changes in ANZ for enabling cultural transformation in the banking
organisation. The charter also contributes in generating consulting and also diagnostic
services for assisting different business units in bringing about necessary cultural changes
such that the internal people can both dwell and work in a newly built cultural system. The
Breakout Program designed by the team is observed to be operational for a period ranging
from two to three days wherein it assists both the subordinates and the management team by
providing needed diagnostic tools for effectively probing and understanding the factors that
help in duly motivating them and also other stakeholders of the firm. It also contributes in
both engaging and in empowering the team members to work in a collaborative fashion for
generating effective decisions (Barrett, 2006).
The management team in the organisation was required to generate effective discussion with
the internal team members such that the same would be linked with performance assessment
programs for helping in tracking and monitoring the annual performances of the employees.
Further, employee development programs were also focused on being implemented such that
the same was taken to enhance the learning and growth of the people in the firm. The
Performance Assessment program undertaken by McFarlane was also taken to be developed
in terms of aligning positive reinforcements or rewards with the performance outcomes of the
employees. The generation of bonuses to employees in a half-yearly fashion was taken to be
generated annually to help in ideal cost savings for the firm. McFarlane and his team also
focused on designing a talent development program in the organisation through the
integration of the first line and HR managers. The line and HR managers are required to be
effectively trained to lead the performance assessment practices of the firm. The quality and
effectiveness of the talent management and development programs carried out at ANZ were
assessed through the installation of an external assessment team (Keller & Price, 2011).
Similarly, the transformation program carried out by McFarlane and his management team
also contributed in designing of a leadership program in the organisation such that which

helped in the identification and also development of the leadership potential among the junior
managers. ANZ focused on investing in a potential fashion for the development of internal
leadership potential in the firm (Kratschmer, 2013).
Challenges for Managers in Implementing Transformation Strategies
Managers tend to face increasing challenges in their bid to change the organisational culture.
In fact the changes to be brought about in the organisational culture are observed to be more
complex in nature compared to endeavouring of generating structural changes in the firms.
The mandatory nature of cultural changes to be brought about by the managers makes the
employees behave more pessimistically and suspiciously to the changes planned by the
management team. The employees being pessimistic and suspicious about the aftermaths of
the change process tend to create potential resistances in implementing the transformational
changes in the organisation. The employees tend to fear the unknown and always have a
feeling of becoming jobless owing to the transformations being introduced in the
organisation. The same makes the internal people generate potential resistances (Rutherford,
2011).
Similarly, the internal people adept to an existing culture seems very disinterested in shifting
towards a new cultural paradigm. These people tend to reflect a sense of comfort in working
along the existing cultures. The resistance to changes reflected by people adept to existing
culture can be reduced in that they have a feeling that the existing culture is obsolete and
more stereotyped in nature which in turn requires them to desire working in a new cultural
setup. Further, employees facing cultural changes required for implementation of
transformational strategies also suffer from the fear that working in the new cultural
framework would require them to unlearn their present work procedures and styles and rather
learn and enhance on their existing skills and expertise for handling of new tools and job
processes. The same affects the motivation of the staffs and encourages them to generate
potential resistances to cultural changes brought about in the organisation (Kratschmer,
2013).
Again, lack of trust on the business managers involved in planning and bringing about
cultural changes for implementing transformational strategies also tends to affect the drive or
motive of the people in supporting such changes. The managers involved in bringing about
cultural and structural changes in a repetitive and frequent manner make the subordinates feel
very tired for facing of continual changes. The same also triggers the employees for
generation of due resistances to changes (Nieswandt, 2015).
Evaluation of the Attributes of Key Leaders at ANZ
Attributes of Jon McFarlane as CEO
The attributes of John McFarlane as the CEO of ANZ is observed to rightly resemble that of
a transformational leader. As a transformational leader, John McFarlane served in a highly
motivated and passionate fashion for generating needed transformation along the internal
culture of the banking organisation. McFarlane acted in a highly focused fashion for helping
the banking firm gain on needed profitability and returns in the long run. He acted in a very
committed fashion for planning the change process in the organisation.
Further, John McFarlane did not fear the taking of risks while focusing on to implement the
change process in the organisation. Several cost cutting measures were undertaken by John
McFarlane that resulted in severe consequences like removal of excess managerial and other
subordinate staffs from the bank’s headquarters and different branches. The result was

immense job loss for different individuals. McFarlane undertook the above risk in terms of
generating a strong decision which in turn helped in enhancing the margin for ANZ Bank
(Schüppel, 2014).
Apart from the above decision another set of strong decisions were also undertaken by Jon
McFarlane as is required of a transformational leader. John McFarlane was instrumental in
outsourcing and in streamlining the job operations of the headquarters. The same contributed
in emptying the staff population involved in the headquarters and contributed in cost cutting
and in improving the cost-to-income ratio.
Similarly, John McFarlane as a transformational leader is also observed to focus on
motivating and inspiring people to think about new and creative ideas at the workplace. Jon
McFarlane focused on the introduction of positive reinforcements like rewarding and
recognising the performances of the individuals both managers and staffs inside the
organisation. Further, John McFarlane also focused on development of the skills and qualities
of the internal leaders through incorporation of coaching programs. The same helped in the
sharing of ideas and experiences by staffs and managers in a mutual fashion (Rumley, 2012).
Attributes of Michael Smith as CEO
The leadership attributes of Michael Smith as the CEO of ANZ Bank is observed to resemble
that of a contingent or situational leader. Smith’s joining as the CEO of the bank made him
face potential challenges like difficulty in sourcing money, volatility of the debt and equity
markets and also lack of trust of the people on the banks. Smith facing the above situation
worked with his managerial team in generating different types of actions like enhancing the
capital structure of the bank while also in improving the liquidity situation and in enhancing
the balance sheet of the bank. Further, Michael Smith and his team were instrumental in
generating needed restructuring in ANZ Bank for improving the customer focus; enhance the
level of accountability of the staffs and management to the customers and also in developing
a stronger management position. Michael Smith also focused on developing the efficiency of
the banking organisation to face future economic emergencies (Hogue, 2013).
Role of Leadership in Influencing, Directing and Managing Change
The role of leadership in influencing, directing and in managing the change process in ANZ
Bank can be largely attributed to the leadership style of John McFarlane for being greatly
instrumental in bringing about changes in the organisation.
John McFarlane influenced the transformation or the change to be brought about in the
existing culture of ANZ through the generation of the slogan, ‘the bank with the human face’.
Further, McFarlane and his team directed the transformational program through the
introduction of three sets of strategies like Perform, Grow and Breakout. The Perform
Strategy was directed for delivering greater performance for the organisation and in
generating greater value to the shareholders. The Growth Strategy was directed for
strengthening the potential of the brand and also in augmenting the revenue and leadership
position of the organisation. Finally, the Breakout strategy was enabled for promoting long
term success and growth of the banking institution. Finally, regarding management of the
change process, John McFarlane stressed on rendering a cultural change in the organisation
through the effective implementation of the Breakout Strategy. Workshops, Charters and
Consulting were developed for rightly implementing and fulfilling the objectives concerning
the Breakout Strategy. Further management activity was also concerned regarding the
generation of Key Result Areas (KRAs) across different domains like financial, internal and

external people and also general communities for evaluating the efficacy of the Breakout
Program (Keller & Price, 2011).
Part 2
Cultural Dimensions between Poland and Columbia
The comparison of the cultural dimensions between Poland and Columbia is reflected in
terms of Hofstede’s Six Cultural Dimensions as follows.
(Geert Hofstede, n.d.)
Both Poland and Columbia reflect high scores in Power Distance. The same reflects the
existence of hierarchal structures within the firm and also centralisation of authority and
decision making functions. The subordinates in the organisation are required to follow the
directions and guidelines shown by the management and superior authorities.
In terms of individualism and collectivism, Poland reflects the existence of an individualistic
culture where individuals focus on gaining their own career growth and development.
Promotion is generated on the basis of merit. Colombia on the contrary, reflects the existence
of a collectivist culture where individuals focus on working in groups rather than
individually. They also like to take care of the needs and expectations of the group workers
(Mandal & Vong, 2015).
The culture of both Columbia and Poland reflects existence of a Masculine culture. The
masculine character reflects that they are highly ambitious in nature and focus on meeting
their achievements. Further, the Columbians and the Polish people are also driven by
potential competition and thereby enhances on their expertise for generating greater
efficiency in the long run.

Both the Polish and Columbian culture is observed to reflect increased scores of Uncertainty
Avoidance. These cultures resist the incorporation of innovation and moving over to
untapped markets or segments. They are also interested in sustaining links to their traditional
cultures (Binder, 2016).
In terms of long-term orientation, both the Polish and Columbian cultures reflect lower
scores. Columbia tends to reflect lower scores than Poland. Increased scores regarding Long-
Term Orientation reflect that the organisations focus more on generating and meeting of
short-term objectives and are also linked with their tradition.
Finally, in terms of Indulgence, the Polish culture reflects very low scores compared to
Columbians. The low indulgence score for Poland reflects that they are less interested in
incorporating the elements of leisure and hobby in their working spheres compared to the
Columbians. The Columbians are rather interested in integrating the elements associated to
leisure and hobby with their day-to-day working activities (Petrakis, 2014).

References
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