Strategic Change Management

This document discusses the importance of strategic change management in organizations. It covers the driving factors for change and the implications of not responding to those changes. It also explores change management models and strategies for successful implementation. The case study of Commonwealth Bank is used to illustrate these concepts.

Strategic Change
Management

Table of Content
EXESCUTIVE SUMMERY ...........................................................................................................5
INTRODUCTION ..........................................................................................................................6
MAIN BODY ..................................................................................................................................7
Needs of changes and the driving factors for the change and also evaluate the resources
implication for not responding to those changes .....................................................................7
Change management models to implement change successfully for organization..................11
Change management strategy involving stakeholders of the company and also devise
strategies to overcome resistance.............................................................................................13
Conclusion And Recommendations..........................................................................................13
REFERENCESS............................................................................................................................14

EXESCUTIVE SUMMERY
As per the report has been cover the case study of the Commonwealth bank which is
one of the top bank in Australia. It has explained the importance of the change management
because change management bring the opportunities for the company to increase their growth
in the banking sector which will be profitable for the Commonwealth bank. It has also
explained the key drivers of the change which is necessary for the company t implement
properly to take advantages but the some change drivers can impact negatively if the
company will not implement it problems or look toward the negative side of the change
management. Understanding any applying the proper sources can helps the company to
implement the change process properly for their business, and they can take competitive
advantages in the market.
The Change management models like Lewin”s Change management and the Mckiney 7
S Model will be helpful for the Commonwealth bank to implement the changes process, and
they can follow the steps which are given in the models to run their change process smoother
and successfully (Al-Ali And et.al., 2017). In the end of this report has been provided change
recommendation a for the Commonwealth bank, so they can improve the performance of their
busies and make their operation better and smooth and this will help them to take competitive
advantages, and they will able to show their presence by using the suggestion from the
recommendations part of this whole report and implementing the changes in this section.

INTRODUCTION
Strategic change management is the process in which companies implement changes at
their workplace, so they can improve the performance of the company and take the growth in
the economic scale (Brender, Yzeiraj and Dupuy., 2017). Changes are important but
implementation of the changes with the strategic planning is more important.
Company overview
The Commonwealth bank is the Australian multinational banks who are having their
business across the Asian countries, U countries and New Zealand. This shows their
international presence in the market. This Bank provides the various financial services which
include Personal banking m Superannuation, retail, institutional banking, insurance and the
booking services. This bank also get listed in the Australian Securities Exchange in years 2015
with the coloration with the one of the well recognized company Bankwest. There are more
than 5000 employees are working for this company and making them achieve their business
goals and their objectives which help them to grow their banking business in the banking sector
in Australia.
Background Change
Commonwealth bank has implemented many changes in their workplace to improve
their performance and one of them is organizational change to increase flow of communication
at the workplace of the Commonwealth bank. They Implemented change, so they can improve
the performance of their business and also create good environment and employees
engagement. Commonwealth bank was having very complex structure which become the
barrier of the change and their employees were not able to provide information to the
companies superiors, and they were not able to communicate their problems with the superior
level (Burns And et.al., 2016). It was not only with the subordinates but this problems was also
faced by the companies superiors because if they want to send any useful information then it
was taking time to get information to the lower level because it passes through the various
department and then the lower level get the information. Commonwealth bank implemented
the Matrix structure which is was much better as compare to their previous company structure.
The matrix structure increase the flow of the communication at the workplace because the
upper and lower level both can able to communicate with each another which increase the flow
of the communication at the workplace of the company, and they were able to provide useful

information to each other. This also improve the performance of the company and employees
both because every level of the department start getting the information on the times and it was
also creating good relationship between the employees, and company also focus to encourage
employees work in group so this decrease the conflict situation at the workplace of the
Commonwealth bank and create rust among the employees for the companies superiors. Flow
of communication at the workplace is necessary for the every business because it has huge
contribution for the company to achieve the competitive advantages and company can show
their presence in the market where they are operating their business and achieve the higher
growth in their business and their Matrix stricture improve the performance.
MAIN BODY
Needs of changes and the driving factors for the change and also evaluate the resources
implication for not responding to those changes
Changes plays important for the organizations because it helps to improve their
performance and help to take the competitive advantages (Cameron and Green., 2019). It is
essential for the Commonwealth bank superiors to implement the changes at the workplace
when t is needed so company can able to achieve the competitive advantages, and they can
show their presence. There are some of the needs where changes for the Commonwealth bank in
necessary, and they have to implement changes otherwise they can suffer from the losses and
this can affect their business they do not respond to the change factors. Crisis - During the
crisis in the economy affect the whole sector in the economy where changes are needed if they
want to survive then they have to implement some of the changes and Commonwealth bank is
connected with the economy and the banking sector ha huge impact on the countries economy
and during the crisis the financial institution are affect mostly. Changes like collaboration with
the other company can be good option for the Commonwealth bank to survive the crisis
because they will have string financial resources and both the companies will also have to
share their losses so the can able to survive and some another factors which bring the
exchange and company have to accept it to be stay in the competition in the Australian banking
sector and as we know the banking sector is full of technology based and now they are proving
their services from the mobile and other technology, so they customers can enjoy the services
properly and satisfy their needs (Doppelt., 2017). Technology change with the times and it is
necessary for the Commonwealth bank to flow the new technology trends, so they can be

stayed in the companions otherwise t their customers have many options to go with the other
banking institute where they will get the better option or the better features. At this point
Commonwealth bank need the change in their technology, so they can compete with the other
banking companies who are their competitors and having better technology. They need to
implement change management process and bring the latest technology at their workplace, so
they can provide the best experience top their customers and stratify their needs their demand.
This will also encourage them to stay with the Commonwealth bank and enjoy their services
and their baking facilities. This will help them to take the competitive advantages, and they
will able to show their presence in the market where they are operating their business and give
better competition to the other banking institution in the market of the Australia.
Internal and external pressure also affect on the company and force them to bring the
changes, so they will able to survive in the market and stay in the competition. There are
some of the factors both internal and external which are the drivers of the change and its
necessary for the superiors of the Commonwealth bank to be aware about those change drivers
otherwise it can have some negative impact on them and if they are aware about the both
internal and the external changes then they can take the competitive advantages improve their
performance in the banking sectors (Doppelt., 2017). Here are some internal and external
change drivers-
Internal Drivers
New technology
New technology at the workplace of the Commonwealth bank can bring the change
because new technology also affect the companies task and also affect the employee's
behavior. It is important for the companies superiors to communicate with the employees about
the change, so they can make them understand that why new technology is important for the
company and how it will be helpful for us to improve our performance in the market. The new
technology bring the changes so the superiors should provide the training to the employees, so
they can learn that how this new technology will work (Dudney., 2019). Training to the
employees will affect the on their moral, and they will be more confident, and they will give
their best in the task.
Changing in attitude of Employees

Change in the employees of the Commonwealth bank is also an driver of the change
which can affect the performance and also can create the communication Gap. This can have the
negative impact on the other employees and this is necessary for the companies superiors to
look for the behavior of the employees who are creating conflict situation at the workplace of
the Commonwealth bank. Or they can also run the group practices and the collaboration task
in which employees will work in the task and b go their best in the task as a team. Group of
the employees are more capable to t any task properly and accurate as compare to the
individuals and it will also make their relationship better and Commonwealth bank can take
the competitive advantages through the practices at their workplace.
Changes in business process
Business process change when the companies are suffering from the losses, and they
were not able to perform well in their sector then they change their business process and or
change the market, so they can performance better and overcome in their business. Change in
the process is necessary for the companies we they are bot getting the better result from their
old business process (Lines and Reddy Vardireddy., 2017). They focus to develop their product
by understanding the needs and the demand of their customers in the new market . According to
the study of the customers they develop their product and give their best to market their product
and services better. This takes them toward the services otherwise their competitors can cover
take them.
Culture
Culture of Super Alloy Technologies does not believe in a one-off change, rather it
focuses on continuous changes aimed at high quality products delivery at best possible prices.
The need to improve product and services has also induced change in Super Alloy Technologies.
The company hoped to cut cost while at the same time improve quality and better customer
service.
External drivers
Technology
Commonwealth bank has expanded their business on the global level, so they also need
the technology which is trending on the international market. It is necessary for the
Commonwealth bank to follow the new technology trend to compete the other banks because
the competition art the international level is more higher as compare to the domestic market.

Other competitors of this bank are standing behind them to overtake them and single mistake
by the Commonwealth bank can affect their business and other companies can overtake them.
So they have to follow the trends in the technology to stay in the competition.
Globalization
Globalization is the external change drivers which affect on the business process and
their expansion on the global level (Nisbett And et.al., Warren and Stories of Change Study
Team, 2017). The globalization of the companies bring the huge change for the company
because the quality p of the goods and their services should be better at the global level to they
need to improve their production department and the quality of the product also take change
because every market have different people and their demand for the product can be different,
so they have to study the demand the and needs of the customers in market where they are
expanding their new business, and they have to improve their product and services which can
satisfy the needs in of the customers in the new market country.
Hyper- competition
Hyper competition among different organizations has kept management on their toes
observing and reacting to every move by rivals. Recent years have seen large scale efforts at
innovation, outsourcing, mergers and acquisition among others and have become driving forces
of structural strategic changes in organizations in a bid to remain viable. This also affect the
Commonwealth bank, and they bring the change s they can take the competitive advantages in
the market, and they can able to show their presence in the market where they are operating their
business and gain customers loyalty and their trust.
Change in supplier
Change in the companies suppliers can also affect o their product quality and their
duration time. Companies change their suppers when they need like they are getting the raw
material in the higher prices and the quality of the goods in not creating any kind of profit for
them, them companies take the decision to change their suppliers, so they can get their
resources for the product in lower prices, and they can add some value for the customers and also
can make the profit in their business, the main aim of the company to make the product and if
they are getting the better quality product the lower prices then they will obviously go for the
others supplier (Rodrigues, Jiménez-Ruano. and de la Riva., 2019). This is an drive of the
change in the company's product prices, their product quality and their quantity as well and it

can have the positive and negative impact both for the company. It can be negotiation when the
quality o the product is not good and customers are denied to buy the product from the
company then this can create huge losses for the company, and they will not able to overcome
from the loses like this.
Resources implication for not reposing changes
There will be the high implication on the operations and the business of the
Commonwealth bank, if the resources of the invensys controls do not response to the planned
change (Satta, Maugeri, Panetti and Ferretti., 2019). The resources which are part of the
strategic change of the company are their staff, IT technology and the departmental heard of
the companies project team. Here are problems which can be created by this -
Lack of the It infrastructure in the Commonwealth bank will cause difficulty for them
fro the implementation of the new It system because back of knowledge and this will lead the
toward the failure in the project and the times of the project can be delay but the
Commonwealth bank is already using the technology at their workplace so their will be no
problem with them to implement new technology.
Demotivate employees can be reason for the company's failure in the change
management because change in the company can demotivate them. This can be solved for the
Commonwealth bank if their superiors will make aware ab out the changes to the every staff
members and providing the training for the new task can solve these problems and company ca
successful implementing change.
If the staff of the Commonwealth bank are not fully prepared to use the new technology
or the IT system and there is any DE-motivation in the staff then the employees will not able t
o utilize the benefits of using the new IT system, and they can also create some errors if they
are having the lack of knowledg (Schmidt, Groeneveld and Van de Walle., 2017)e.
Commonwealth bank superiors should train them, properly then they will able to produce
positive outcomes which will be beneficial for the companies business, and they will able to
achieve competitive advantages in the market provide better services to their customers.
Change management models to implement change successfully for organization
Commonwealth bank is bringing the new change in the company, and they are replacing
the old technology with the new one. To complete this change successful company have to
use the proper methods and the process for the change and There are many change management

models which are used for the to implement the changes in Commonwealth bank but two
most important and better tools and the Lewin”s Change management and the Mckiney 7 S
Model . Commonwealth bank can use those models for the successful and smooth change
process for the company. Here are both models of the change management -
Lewin's Change management
Lewin’s Change Management Model is one of the most popular and effective models that
make it possible for us to understand organizational and structured change. This model was
designed and created by Kurt Lewin in the 1950s, and it still holds valid today (Zhang And et.al.,
2019). There are 3 stages of this models which are Unfrozen, Change and Refreeze.
Unfreeze
This s the first stage of the change management in this stage the Commonwealth bank
have to prepared for the change and this is also a reality that change is needed and the crucial
for the company to improve their performance in the market. This stage plays necessary role for
the company because in this stage the people around the company will give their effort to resist
the change and this is necessary for the company to break this status quo. To overcome this
proves it is necessary for the superiors of the company to explain the employees that why it is
necessary to solve their doughty, and they should be aware about the change and the benefits of
the changes for the Commonwealth bank. Superiors of the company can communicate with the
employees face to face because this method work better and create trust among the employees.
Building of the trust among the employees will create motivation, and they will start
supporting the Commonwealth bank for the change (Zuckerman And et.al., 2018).
Change
This is the stage where the real transitions or the changes takes place. The process
may take the time to happen as people usually spend time to embrace the new happenings,
development and the changes. Company have to provide training and this is a responsibility of
the superiors of the company to help employees to understand the task.
Refreeze

Change management strategy involving stakeholders of the company and also devise strategies
to overcome resistance.
Conclusion And Recommendations

REFERENCESS
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