Strategic Change management - HSBC bank

Running head: MANAGING CHANGE IN HSBC
MANAGING CHANGE IN HSBC
Name of the Student
Name of the University
Author Note

MANAGING CHANGE IN HSBC1
Executive Summary
In this paper the author discusses about the change that is happening in the Hongkong
Shanghai Banking Corporation. The key drivers of change that is increasing the business,
reducing cost and the resistance that the company is facing for change. The paper also
discusses about the models and theories used for managing change; Lewin’s Model and
McKinsey 7 Stages. The leadership and management style and how it helped the bank in
implementation of change is also mentioned. The triple bottom line theory for sustainable
development is also examined upon.

MANAGING CHANGE IN HSBC2
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Key Drivers of Change...........................................................................................................3
Overcoming Resistance to Change........................................................................................4
Problems in the Organisation.................................................................................................5
Change Management Theory.................................................................................................5
Lewin’s Change Management Model................................................................................5
McKinsey 7 S Model.........................................................................................................6
Application of Change Management Theories..................................................................6
Triple Bottom Line.................................................................................................................7
Leadership Style.....................................................................................................................8
Conclusion..................................................................................................................................9
Recommendation........................................................................................................................9

MANAGING CHANGE IN HSBC3
Introduction
The Hongkong and Shanghai Banking Corporation is one of the leading banks in the
world. It started in 1865 as a local bank catering to the international needs of the clients. Its
headquarters are in London with over 9500 offices across the world. There have been many
changes that the bank has gone through since the mid-nineties. HSBC faced many difficulties
and resistance while changing and implementing new ideas that would benefit the whole
company. Resistance towards change can be defined as an unwillingness of the employee to
adopt the change due to the employees not wanting to get out of their comfort zones, learn
new skills. There is a trouble that people have in establishing a vision of the life that would
be after the change; this creates a fear of the unknown and the uncertainty that lies ahead that
discourages people from changing. (Our history, 2020)
The aim of the paper is to understand the managing of change done by HSBC, the
change theories and models used by the bank in reducing the resistance and implementing it
as smoothly as possible, the leadership and the managing style of the bank in the
implementation of the change. To know how the company is using the triple bottom line
theory for a cleaner future.
Discussion
There are many factors that have to be kept in the mind while changing the policies
and the operations of a company. Change is inevitable in the company; to keep up with the
trend in the market, the advancement in the technology and the economic conditions of the
market place changes have to be made. Change can be created either externally or internally.
Adapting to the changes before them being forced on the company helps the company in
getting a competitive advantage in the market (Damanpour, Sanchez‐Henriquez, and Chiu.,
2018). HSBC has always reacted to the changes with an early start to gain more advantages
out of the change.
Key Drivers of Change
HSBC has had many changes in the management system and its operation due to
changes in the economy, the instability of the government, inflation and recession as well as
the changes in the technologies. The internal factors that bring about change were hiring of
new people, employees leaving the organisation, offshoring of the work and implementation