Change Management and Leadership 14 Change Management and Leadership Executive Summary

Change
management and
leadership

Change management and leadership 1
Executive summary
Change management is a method to deal with the transformation of the company
goals, procedures, and technologies. The aim of the change management is to implement
strategies for operational change, controlling change and supporting people to acclimatize to
change. These strategies request to change properly. Both change management and leadership
have to be the top priorities of the organizations. This report includes the change management
of Kiwibank which is a New Zealand based bank. Kiwibank operates in the interest of New
Zealanders along with the profits staying in the nation. The bank has grown from a team of 7
to more than thousand robust. Kiwibank helps its public to attain financial independence. The
change management issues have been defined in the report along with the challenges faced by
the Kiwibank. Further, the change implementation process has been explained by making use
of organization management strategies. The communication plan and leadership have been
explained with the intention of considerating the role of the change agent. Finally, the
leadership styles used by the Kiwibank have been explicated along with the organization
culture.
In the end, it can be said that Kiwibank underwent two huge changes but the change
management strategies are proficient enough to succeed the organization in overwhelming
the challenges.

Change management and leadership 2
Contents
Executive summary..................................................................................................... 1
Introduction............................................................................................................... 3
Overview of the Kiwibank.......................................................................................... 3
Change management and purpose of the report................................................................4
Change management issues and challenges........................................................................5
Identification of the current issues confronted by Kiwibank.................................................5
Application of the change management life cycle model.....................................................5
Critical analysis of 3 change management models................................................................6
Kotter’s eight-step process for change management..........................................................6
Lewin’s Change Management Model............................................................................7
ADKAR Model....................................................................................................... 8
Recommending the most suitable model for Kiwibank..........................................................9
Change implementation................................................................................................ 9
Resistance to change................................................................................................. 9
Organizational management strategies for change management..........................................10
Communication Plan and Leadership..............................................................................12
The role of the importance of change agent...................................................................12
Communication Plan............................................................................................... 12
Leadership styles for effective communication...............................................................13
Kurt Lewin’s Leadership Styles..............................................................................13
Transformational change....................................................................................... 14
Leadership styles and organizational culture.....................................................................14
Organization culture............................................................................................... 14
Deep Assumption Approach..................................................................................... 15
Leadership styles using Consultant styles matrix............................................................16
Practitioner styles............................................................................................... 16
Conclusion.............................................................................................................. 17
References.............................................................................................................. 18

Change management and leadership 3
Introduction
Overview of the Kiwibank
Kiwibank is a New Zealand based bank. The bank is dedicated to a comprehensive,
progressive and safe workplace. The bank offers some of the banking services by its
PostShops and more through the financial services by the branches. Kiwibank is possessed by
the New Zealand government. The current chairperson of the board of directors is (BOD) is
Susan Macken. Kiwibank is a better banking alternative available in New Zealand. It offers
actual value for money and keeps the money where they fit in. The bank proposals a whole
range of the products and services which are leading to change (Kiwibank, 2019).
The products and services of the Kiwibank identified are personal banking, business
banking, and worldwide services. Personal banking comprises personal loans, home loans,
everyday accounts, saving accounts, credit card, investments, and insurance. Business
banking offers cheque accounts, lending, saving accounts, investments, credit cards,
merchant services, and insurance. The global services contain foreign exchange and foreign
currency accounts, online and manual global money transfers (Bloomberg, 2019).
Kiwibank is having a mission to conquest the hearts of Kiwis by offering superior
service, improved products, lower fees, and better interest rates. At present, the bank is
having 850,000 customers, a countrywide ATM network along with the PostShops all over
the nation which indicates that the bank can stay open longer than any other bank including
weekends (Kiwibank, 2019). The bank is available in airports, malls and other popular places
which makes easy for the customers to entree. The vision of the Kiwibank is to offer long
term value to the customers, shareholders, and nation. The bank is growing rapidly with the
innovative ideas in the channel.
The identified strategic objectives of the Kiwibank are given below.
 Enhance the long term value and constancy of the organization.
 Differentiate earnings
 Develop prevalent customer associations by the service channels and products
 Encounter market prospects by progress by the prevailing business and through the
targeted divergence

Change management and leadership 4
Change management and purpose of the report
The change management is an approach to deal with the transformation of and
establishment’s objectives, procedures or technologies. The aim of the change management is
to execute approaches for the effecting change, controlling change and assisting people to
adapt to the change. These strategies comprise an organized process for demanding a change.
The types of organizational change are:
Extensive change: The organization-wide change is identified as the large scale revolution
which affects the complete structure of the organization. It is mainly a step towards varying
the nature of the organization.
Transformational change: The transformational changes are adopted by the organizations in
order to examine the underlying strategies of the organization. A company is required to be in
drop with the environment surrounding cultural trends, social climate, and technological
advances (Kiwibank, 2019).
Personnel change: The personnel change requires a move in the company culture along with
the processes. If an organization decides to expand by recruiting employees then this shock
has to be absorbed. If this transition does not manage well then it can result in chaos and
inefficiency.
Unplanned change: An organization sometimes has to undergo the unplanned changes even
amongst the limitless data analysis and planned tactics. Such changes can even be introduced
in the unplanned mode to respond to change in the demographic structure of the association.
Remedial change: The remedial changes are introduced by an association in response to the
poor performance of the organization. These changes are made with the aim of increasing
efficiency and functionality (Cameron & Green, 2015).
The organizational changes are critical for the business in order to thrive in the competitive
world. But sometimes it becomes difficult to implement organizational change as some
employees are resistant to change. The senior-level employees especially resist change
because they consider that they will lose the value of something or they are not capable to
adapt the new things. The employees have also fear and uncertainty fuels resistance. The
resistance sometimes cannot be overcome by logic and force (Kiwibank, 2019). The
employees have a fear of unknown things. The lack of skills and communication also makes

Change management and leadership 5
the organization change to be adopted hard. The soft skills are really hard to master as
employees are generally taught to focus on the hard results.
The purpose of the report is to define change management and leadership. The report
includes the change management of Kiwibank and the issues and challenges faced by the
bank (Hornstein, 2015).
Change management issues and challenges
Identification of the current issues confronted by Kiwibank
Kiwibank was established in 2002. The bank underwent a wide restructuring in 2014
(Kiwibank, 2019). Its aim was to enhance efficiency by removing duplication and reducing
costs. The purpose was to meet the competitive market in order to meet customer
requirements. The restructuring led to the organization change and as a result teams and
relationships were transformed. In order to involve employees in the change process, the
bank practiced strategies like engaging employees in the design process and assisting leaders
to assist their people (Kelsey, 2015).
The several changes took place in Kiwibank in 2018 are identified as the nomination
of a qualified treasurer and earlier bank chief economist, Tim Main as the bank's treasurer.
The bank also recruited former ASB supervisor Steve Jurkovich as new CEO. The bank
decided to close out its former IT program as the central banking system upgrade. The
judgment to stop IT project came after the NZ super fund. ACC was accepted into the
Kiwibank with taking a combined 47% stake. At this time, the bank needed a shot of energy.
Two huge challenges were faced in the bank, first is to enhance the capital base of the bank
which will assist in competing with the best 4 Australian Banks (Trustpilot, 2019). The
second challenge identified was to sort out the IT crisis which viewed a new system to be
abandoned (Kiwibank, 2019).
Application of the change management life cycle model
Phases Discussion
Current state: The change management life cycle model has been used to implement