Change Management: Theory, Models, and Application in ANZ

This article discusses the theory and models of change management and change leadership applied in ANZ. It also identifies the issues and proposes recommendations to resolve them. The article highlights the challenges in managing the change process and the importance of effective communication and training. The major change models discussed include Lewin’s Model, McKinsey 7S Model, Kotter’s Change Management Theory, Nudge Theory, ADKAR Model, and Bridges’ Transition Model.

Change Management
1

Contents
Executive Summary.............................................................................................................................3
Introduction.........................................................................................................................................4
Apply theory and models of change management and change leadership to a given scenario......5
Identifying the issues and proposing supported recommendations to resolve the issues...............9
Conclusion: Recommendation............................................................................................................9
References..........................................................................................................................................10
2

Executive Summary
In this assignment, the change management theory and application will be described, and the
various issues and challenges will be as well discussed. There will be recommendations and
the assignment will be concluded with the analysis about why such issues arise and their
solutions. The case of the ANZ will be taken up this assignment for evaluation.
3

Introduction
The Australia and New Zealand Banking Group Limited or the ANZ, the third largest market
capital based bank in Australia, is known to be the most sustainable global bank in the
continent. It was founded in 1835 and later became expanded as a result of merger between
the Bank of Australia and the Union Bank of Australia Limited. Besides Australia, the bank
is leading among New Zealand’s banks.
The concept of change management is the arranged technique setup that deals with transition
and transformation of the organisation’s goals, mission, processes and business and technical
operations. The main objective of the change management is to execute strategies for
bringing about changes, regulating these changes as well as ensuring prompt and effective
adaptation and smooth adjustment to changes. Sometimes situations arise where the structure
of the organisation requires immediate changes in procedure and mechanisms. The common
situations that give rise to need of changes include technological advances, evolution of
processes, trends of consumer demands, needs and preferences, entries of new businesses and
so on and so forth. In terms of management, the change management also refers to the
planning and application of alternatives to the present approaches and control processes.
(Cranston, 2018)
Before understanding the concept of change management with respect to the ANZ, it is vital
to understand the ANZ business and work system. The ANZ has a long history, dating over
170 years. Over the years the financial organisation has undergone several kinds of
expansions, growths and ventures. Today it handles a huge range of services and products,
financially, in the retail, small business, corporate and institutional sectors. The organisation
owns over 471 billion Australian Dollar worth assets and have operations in over 30
countries. The structure of the organisation has five main divisions, the major ones being in
Australia, New Zealand and Asia Pacific. Each division has its own functions and units
dedicated to meeting customer needs and requirements. (Cikaliuk, et al 2017)
In 2008, the organisation started expanding and developing the existing values and
operations. The management took assessments and evaluations, interacted with employees,
researched on the global best practices and analysed the recent existing Engagement and
Culture Census. The census is the key measurement tool of people and culture that exists in
the company’s system. The ANZ established that the employees wanted more integrity,
4

collaboration, accountability, respect and excellency and other ethical values. The company is
focused on an inclusive and healthy work culture. There is the objective of keeping the
employees connected with the culture of the company. The ANZ is one of the leading
organisations which encourage financial literacy and inclusion.
The company had seen its ups and downs throughout the last few decades. From poor
performance in the 1990’s to mistrust of the public in the banking system, the organisation
had undergone several issues and challenges. With the start of the 2000’s, the ANZ started
focusing on organisational transformation. In order to maintain and update its transformation,
the company has to understand the dynamics of change management and apply the
approaches and techniques of the change management concept. (Moradi-Motlagh, and Babacan
2015.)
Apply theory and models of change management and change leadership to a given
scenario
The organisational change or transformation management is a structure technique which
brings about changes in a smooth, functional and successful manner, with the aims of getting
long term oriented results. Globalisation and innovation have emerged with continuous
changing business environments. Technology like internet has revolutionised the modern day
business context. There is a constant requirement for implementing effective changes. Hence
the need for change management. Long standing organisations as well as newly come up
companies are all experiencing changes. The ability to adapt and adjust to the changes is
quite vital and strategic. Change is difficult and consumes quite a lot of time and energy.
Major changes are complex to create because of the presence of deep structure, culture and
business operations. Changes are created and organisations are expected to adapt rather
quickly as possible in order to gain competitive advantages over other companies. Some
organisations do not change overnight due to their reluctance to adapt to changes and they
prefer to stick to their old operations, approaches and policies. Yet it is crucial that they
change their organisational features. Companies and organisations take their own time to
transform and adapt to changes especially companies which are old and have been in business
for a very long time. The changes can either influence or affect the performance at work and
the employees. (Bollen, et al 2015)
Companies and organisations must learn to change themselves in order to survive the changes
in the market and business context. There are several Change Models which help companies
5

evolve and transform and survive. Companies choose the model that suits them and their
goals according to some important criteria, including the goals of changes, the assessment
findings, the sequential order of system and the extent to which changes are to be made. The
major ones are as follows-
 The Lewin’s Model- one of the most popular approaches which divides the change
process into three stages or phases. Lewin stipulated Unfreeze, Making of changes
and Refreeze as the three stages. The method of the model starts with unfreezing
when the organisation realises that changes are to be made. Current and existing
system is analysed and the situation is assessed to understand what changes are to be
made, whether they are necessary immediately and whether they will pose risks on
being implemented. Perception of changes is changed and resistance against changes
is reduced. Allowance for natural an progressive changes is gradually allowed. The
organisation prepares itself for changes and their challenges. (Islam, 2016) The second
stage, Changes, then starts gradually. The company makes sure that the time is right
to make according changes. Changes are prioritised and plans are put into action.
Teams are guided on the step by step changes and communication is made on all
levels to initiate changes. Switching to newer and updated version of the system takes
time and energy and that is allowed. Training is conducted as well for those who are
unfamiliar with the new changes. Embracing of new happenings is actively
encouraged. The final stage, Unfreezing, then gets underway. Once the company has
effectively and successfully initiated, applied, embraced and accepted the new
changes and has settled down, the stabilisation process starts. Reviews are made and
constant evaluation is made regarding the success of the plans and actions. Everything
returns to normalcy but in a changed manner. It is made sure that the changed system
is consistent and continuous.
 McKinsey 7S Model- the 7S Model is one of those approaches companies can always
use when other approaches fail or go out of use. (Doppelt, 2017) The approach helps
the company analyse the cohesiveness of the workplace and the need to change.
Highlighting and evaluation is done and a series of 7 steps are taken to allow gradual,
progressive and productive changes without hurrying any process unnecessarily. First,
strategies or plans are made, with development being done of a step by step procedure
or a future plan. Second, structure or stage is analysed and evaluated. The attributes of
the management and organisational structure are segregated, identified, arranged and
6

planned on. Third, the system of the business operations, activities, features and other
arrangements are assessed to understand whether and what changes are to be made.
Fourth, shared values or core values and goals are prioritised and changed if necessary
or modified. Fifth, the style of changes is decided. Style is the manner or mechanism
of the changes and the process they are to be made in. Sixth, the staff is given the say
in the changes to be made, as they are directly involved with the business activities.
Their feedback and suggestions are assessed and planned out. Last, the skill set is
organised. The staff is trained and the organisation as well equips itself with new skill
sets and new trends so that its can flexibly stay up to date with the changing
environments. Staff skills are as well assessed to understand whether they are capable
of adapting to the changes being made. This model helps organisations get a deep and
detailed insight into its system and work place and policies in respect to the changing
environment and the rival competitors. (Cameron, and Green, 2015)
 Kotter’s Change Management Theory- this model is another popular theory and
globally used as well. This theory of change is also divided into stages or phases of
change planning and implementation. The first step is to increase urgency. This refers
to creation of sense of urgency for motivating the staff to start preparing to move
towards the objectives of the organisation. The company creates the sense of the need
of rapid changes to be made. The second step is to build a team. Right people are
recruited and trained for the apt jobs, tasks and skills. Teams are then built on the
basis of a mixture of skill sets, information, knowledge and dedication to the
organisational goals. The third step is to get the vision made and corrected or
modified according to the changes that are needed planned. The goals are fixed and
the changes are made goals as well. The fourth step is to communicate at all levels of
the organisation, planning on the smaller and minor steps to making decisions with
every unit on major changes to be made. The fifth step is to get things on the constant
and progressive move. The organisation supports the changes being made, makes sure
the change processes are smooth and constructive and achievable. The sixth step is
focus on short term goals and objectives so that these goals can build up long term
and major goals. The company starts with small steps and as it goes ahead, the steps
increase in enormity, scale and extent. The last two steps involve not giving up and
incorporation of changes. The company makes sure not fall back on its plans and
ensures the constant process of making progress. The company as well starts settling
in with changes being made and adapted into the system. (Kuipers, et al , 2014)
7

 The Nudge Theory- this theory is a psychology theory of effecting behaviour, attitude
and the nudging tendency to start making changings. The basic element of this theory
is that the organisation feels nudged to make changes for more effectiveness. The
behaviourist theory helps the company define its goals, determine the changes, be
aware of the changing environment and the need for changes. Choices are made and
decisions are made after finding evidence form assessment studies and consulting
with everybody including the employees. The company then decides whether the
change is good or effective and whether it is crucially needed. The changes are
presented as choices and alternatives. Obstacles are resolved and the changes are
planned and put into effect with help of the various change management models.
(Howes, et al 2015.)
 ADKAR Model- this model of change is an objective oriented management tool used
for different situations, crises and other circumstances. The tool measures the
situations, derives results and findings and sets goals. The situations that require this
tool include the need for supporting employees to undergo process of change or
transitioning, the need for tackling the resistance of the people associated to changes
and requirement for efficient planning of professional and personal issues. ADKAR
stands for Awareness of the need for change, Desire for bringing about the change,
Knowledge of the mechanism to effect changes, Ability of adapting to changes
regularly and Reinforcement of implementation of changes.
 Bridges’ Transition Model- this model of change focuses on three stages of changes,
phases that are benchmarked by small milestones. The first phase involves ending,
losing and letting go of the old system, the obsolete operations and mechanisms and
other familiar systems. The process is slow, painful, emotional and full of resistance
to letting go of what was normal. Once the phase enters the second stage, the neutral
zone phase starts. This period is marked by uncertainty and confusion while planning
and making changes. Various processes are carried out so that new changes are
adopted. Lots of adjustments are made as well. Once everything starts settling down,
the final stage winds up the entire change process. The new beginning phase involves
acceptance and implementation and maintenance with regularity. (Kilminster, et al
2015)
 The Kubler-Ross Five Stage Model- this model, also called the grief model, includes
five stages of changes from psychological perspective. The first stage is of denial
where the change is not being accepted willingly. Culture shock takes place. The
8

second stage of anger involves frustration and disheartenment at the changes being
made. The third stage of bargaining involves compromising and negotiating as
changes are being adjusted with. The fourth stage of depression soon gets replaced
with the final stage of acceptance.
Identifying the issues and proposing supported recommendations to resolve the issues
Managing the change process involves several challenges because issues can arise during the
process. The vital aspect of any organisational transformation is the company’s ability to
effectively manage the transformation. The challenges lie in identifying the right changes
required in the changing environment, creating and maintaining the accurate adjustments, the
correct training of the right people for appropriate changes and persuading the acceptance of
the changes in the organisation. (Schermerhorn, et al 2014) Change management processes
require strong creative connectivity, awareness, marketing and communication. Successful
changes occur when the company can correctly define the changes to be made, monitor the
change process, counter any crisis or challenge and provide right measures. Issues can arise
when the following key challenges emerge-
 At times integration fails and organisations are faced with situations where the
organisational goals and policies do not align with the necessary changes.
 Navigation and negotiation of the changes can often fail and the changes being
implemented are not sustained properly.
 Mismanagement of changes lead to a complete chaos.
 Communication gaps can lead to management crises, where the changes made are not
known to all and not everyone is used to the changes or are not adequately trained or
skilled to handle the changes. Cultural and other kinds of clashes can also occur due
to miscommunication.
Conclusion: Recommendation
ANZ feels a few changes have to be made in its organisational structure. It has to be kept in
mind to majorly restructure the workplace without causing a major shift in the business which
might affect the company’s position. (Dumay, 2016) The company can start with a feedback
sharing arrangement with all units. Employees can be consulted and their suggestions can be
taken. They should be in the know about plans to make changes. The organisation can then
set up short term goals and initiate small steps towards small but significant changes. As the
changes increase in number and scale, the company can start reinforcing changes, training
9

and recruitment processes as well as application of any change model that suits its
organisational needs and structure. The plans should be kept simple and the changes should
be kept gradual and progressive. ANZ then can start changing the organisational framework,
and the workplace will soon adapt to the changes. (Adams, 2017)
To make changes, all companies should at first understand what changes are to be made and
the mechanisms to apply the changes. The change models and theories help companies in the
transformation process.
References
Adams, C., 2017. Understanding integrated reporting: The concise guide to integrated thinking and
the future of corporate reporting. Routledge.
Bollen, B., Skully, M., Tripe, D. and Wei, X., 2015. The global financial crisis and its impact on
Australian bank risk. International Review of Finance, 15(1), pp.89-111.
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide to the
models, tools and techniques of organizational change. Kogan Page Publishers.
Cikaliuk, M., Erakovic, L., Jackson, B., Noonan, C. and Watson, S., 2017. Board Leadership for
Strategic Transformation: Aligning Diversity Initiatives at the Bank of New Zealand.
Cranston, R., 2018. Principles of banking law. Oxford university press.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for business,
government and civil society. Routledge.
Dumay, J., 2016. A critical reflection on the future of intellectual capital: from reporting to
disclosure. Journal of Intellectual capital, 17(1), pp.168-184.
Howes, M., Tangney, P., Reis, K., Grant-Smith, D., Heazle, M., Bosomworth, K. and Burton, P., 2015.
Towards networked governance: Improving interagency communication and collaboration for disaster
risk management and climate change adaptation in Australia. Journal of environmental planning and
management, 58(5), pp.757-776.
Islam, M.A., Jain, A. and Thomson, D., 2016. Does the global reporting initiative influence
sustainability disclosures in Asia-Pacific banks?. Australasian Journal of Environmental
Management, 23(3), pp.298-313.
Kilminster, K., McMahon, K., Waycott, M., Kendrick, G.A., Scanes, P., McKenzie, L., O'Brien, K.R.,
Lyons, M., Ferguson, A., Maxwell, P. and Glasby, T., 2015. Unravelling complexity in seagrass
systems for management: Australia as a microcosm. Science of the Total Environment, 534, pp.97-
109.
Kuipers, B.S., Higgs, M., Kickert, W., Tummers, L., Grandia, J. and Van der Voet, J., 2014. The
management of change in public organizations: A literature review. Public administration, 92(1), pp.1-
20.
Moradi-Motlagh, A. and Babacan, A., 2015. The impact of the global financial crisis on the efficiency
of Australian banks. Economic Modelling, 46, pp.397-406.
Schermerhorn, J., Davidson, P., Poole, D., Woods, P., Simon, A. and McBarron, E.,
2014. Management: Foundations and Applications (2nd Asia-Pacific Edition). John Wiley & Sons.
10

11