Change Management | Organisational Transformation Scenario of ANZ Bank
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Added on 2019-11-08
Change Management | Organisational Transformation Scenario of ANZ Bank
Added on 2019-11-08
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Change Management
Executive SummaryThe 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 CEOwith 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 ContentsPart 1..........................................................................................................................................4Main Features of Organisational Transformation..................................................................4Challenges for Managers in Implementing Transformation Strategies.................................6Evaluation of the Attributes of Key Leaders at ANZ............................................................6Attributes of Jon McFarlane as CEO.................................................................................6Attributes of Michael Smith as CEO.................................................................................7Role of Leadership in Influencing, Directing and Managing Change...................................7Part 2..........................................................................................................................................8Cultural Dimensions between Poland and Columbia.............................................................8References................................................................................................................................10
Part 1Main Features of Organisational Transformation McFarlane teamed up with his new management group in ANZ Bank to develop a programfor bringing about organisational transformation that aimed in bringing about a competitiveand sustainable advantage for the firm in the long run. The ANZ Bank was sufferingimmensely owing to the closure of a number of branch outlets with also increases in the feestructure. McFarlane observed that ANZ had retreated from serving the rural communitieswith also the absence of women in responsible roles along the bank’s hierarchy. The changeprogram initiated by McFarlane was implemented in a rapid fashion through generation ofincreased cost cutting in large number of branches of ANZ Bank and also in terms of bailinginvestments along different emerging markets that helped in reducing the risk profile of thebank. Further, McFarlane also focused in restructuring the operational activities of ANZ’shead office by means of streamlining and outsourcing of banking operations and also throughgeneration of large scale reduction of staffs involved in the bank’s headquarters. The changemanagement program brought about by McFarlane potentially contributed in reducing thecost-to-income ratio for ANZ Bank while also enhancing and sustaining the customer andemployee satisfaction rates. Further, the change program of McFarlane also contributed inn shifting the bank’s focus fromcorporate banking to retail banking such that it started targeting high value retail customers.The initial steps towards organisational transformation were undertaken by McFarlane andhis team during 2000 where they focused on enhancing and highlighting the human face ofANZ. The change strategy undertaken by the team were mainly based along three parameterslike Perform, Grow and finally Breakout. In terms of Performance, the change programencouraged the bank to not only deliver increased performances but also generate highreturns for its shareholders. In terms of Growth, the change program ideally focused onenhancing the potential of bank’s revenues, market leadership and brand image. Finally, interms of Breakout the change management team aimed in generation of sustainableleadership and also in promoting long-term success for the banking firm[ CITATIONKou17 \l 1033 ]. Subsequently the management team at ANZ commissioned McKinsey and Co. for conductingan effective audit of the bank’s cultural parameters. The study conducted by McKinseyrevealed potential gaps between the values of bank and personal employee and also themanner in which the employees perceived the banking organisation. The survey reflected acombination of both positive and negative inferences from the employees. Employeesobserved the existence of bureaucratic and hierarchal elements in the firm and also existenceof a silo mentality while also exercising greater control over information and not sharingthem with subordinate teams. McFarlane in terms of designing the change program rightlyunderstood that banks are required to generate values based on the inputs rendered byemployees and staffs rather than the values interpreted by the visions of the seniormanagement team. Similarly, McFarlane also stressed on the generation of decisions in termsof engaging the inputs provided by the subordinate members of the different departments andalso in contributing in the formulation of a shared vision promoting organisational success.The change program designed by McFarlane contributed in benchmarking the performancesof the bank with other high performing organisations operating in Australia. The studyenabled ANZ determine its areas for improvement and thereby helped in designing aperformance and value assessment survey.
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