Impact of BOQ Organizational Structure on Innovation and Performance

This report examines the business operations of the Bank of Queensland (BOQ), an Australian financial institution, focusing on its organizational structure and its effects on innovation and overall performance. The report provides a historical overview of the company, detailing its services, organizational structure, and strategies. It highlights the significance of BOQ's hierarchical structure and its impact on communication, decision-making, and the implementation of innovative products and services, such as the collaboration with River City Labs. The analysis further explores how the organizational structure influences the company's financial stability and customer satisfaction. Recommendations are provided to enhance employee innovation and improve the company's performance. The report emphasizes the importance of organizational structure in driving innovation, customer satisfaction, and overall business success.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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Executive Summary:
The paper analyses regarding the business operations of a renowned organization operating in
the Australian financial industry named as Bank of Queensland. The paper discusses
regarding the history of the company and provides key insights regarding the business
operations of the organization. At the same time, the paper shares important information
regarding the organizational structure of the company. In addition to this, the paper portrays
the effects of the organizational structure on the success of the company in incorporating the
innovation in the services and products of the company. The tie up between Bank of
Queensland and River City Labs is recognized as a significant step for the company in
improving their ability in innovation. At the same time, the paper delivers an important
understanding of the impact of organizational structure on the overall performances of the
company and the success is pretty prominent with the generation of larger revenue.

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Table of Contents
Introduction:...............................................................................................................................3
Background information of the selected company:...................................................................4
Overview of the organizational structure of the company, strategies and possible reasons:.....5
Impact of the organizational structure of the company in the management of innovation:.......6
Impact of the organizational structure of the company in the overall performances of the
company:....................................................................................................................................7
Recommendation:......................................................................................................................8
Conclusion:................................................................................................................................8
References:...............................................................................................................................10

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Introduction:
The prominence of innovation is increasing in a significant manner in the modern
world of business. The modern business environment is observed to be associated with
frequent changes and with a precise consideration towards the effects of the globalization, the
dynamics of the business environment is seen to change in a significant manner. Crane et al.
(2019) claimed that the impact of the globalization is one of the crucial factors responsible
for the effective minimization of the market monopoly in the modern world of business and
along with that, the market entry of increasing number of new organizations is seen to
increase the competitive rivalry in a notable manner. Having said that, the companies are
observed to face the necessity of identifying different techniques for the management of the
changing dynamics of the market and that is certainly increasing the importance of the
innovation in the business operations of the company (Narula 2014).
Jones (2013) stated that the organizational structure is an influential factor for the
companies in increasing their ability of creative or innovative thinking for the much required
introduction of the innovative products and services and at the same time, the company’s
ability in improving the overall performances is also dependent on the increased efficiency of
the organizational structure of the company. For an efficient understanding, the paper
discusses regarding the business operations of Bank of Queensland and with a precise focus
on the structure of the company, the paper evaluates the impact of the organizational structure
of the company on the innovation. At the same time, the paper analyses the effects of the
structure of the company on the overall performances of the company. With identification of
specific impurities, the paper provides a crucial set of recommendations for the success of the
company in improving the incorporation of innovation in their business activities and the
overall performances.

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Background information of the selected company:
The selected company is observed to be one of the renowned organizations operating
in the banking and financial service management industry of Australia. The selected company
was established in the year 1863 (Boq.com.au. 2019). The current headquarter of the
company is seen to be situated in Brisbane, Australia. The capability of the company in
introducing the innovative products and services enabled the company for an efficient
business conduct of over 150 years and the growth of the company is seen to continue in
substantial manner. Having said that, the company is seen to operate through 252 branches
along with 3055 number of ATMs (Boq.com.au. 2019). The company has the expertise of
providing services such as the consumer banking, Commercial; banking, finance and
insurance management, mortgage loans management along with the credit card services
(Boq.com.au. 2019).
The excellence of the senior management of the company which includes the
Managing Director and Chief Executive Officer, George Frazis is playing a substantial role
for the success of the company and that is visible with the financial improvement that the
company is able to achieve (Boq.com.au. 2019). In the year 2014, the company is able to
achieve 260.5 million Australian dollars as net income and at the same time, the company
increased their net assets to 43.027 billion Australian dollars (Boq.com.au. 2019). Other than
this, the company also improved the value of their total equity which is evident with a figure
of 3.3405 billion Australian dollars in the year 2014 (Boq.com.au. 2019). Apart from the
visionary leadership from the part of the senior management of the company, the diversified
skills and competencies of the 1903 number of employees of the company is an important
factor for the growth of the company (Boq.com.au. 2019). In addition to this, Carayannis,
Sindakis and Walter (2015), claimed that the diversity in the business operations of the
companies is an important factor that improves the sustainability of the business operations of

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the companies and under such situation, the development of the divisions such as the Retail
Banking, BOQ Finance, BOQ Specialist, St Andrew's Insurance and Virgin Money Australia
is crucial for the sustainable business operations from the part of the company (Boq.com.au.
2019).
Overview of the organizational structure of the company, strategies and
possible reasons:
Considering the senior management of the company, it is visible that George Frazis is
the managing director of the company and at the same time, George Frazis is designated as
the chief executive officer of the company as well. In addition to this, the executive team of
the company is seen to include Matt Baxby, the chief financial officer of the company, Debra
Eckersley, Group Executive People and Culture, Adam McAnalen, the Chief Risk Officer of
the company, Lyn McGrath, Group Executive Retail, Donna Vinci, the Chief Digital and
Information Officer of the company and Peter Sarantzouklis, Group Executive BOQ Business
(Boq.com.au. 2019). The hierarchical formation of the organizational structure of the
company is considered to be significant for the success of the company in increasing the
innovative products and services for their customers. Considering the experience of the
individuals placed at the executive team of the company, the success and the sustainability of
the business performances of the company is pretty evident.
With a precise focus on the strategies of the company with the mentioned
management team in place, it is understandable that the heart of the company’s business
strategies is the customers. Understanding the value of the customer preferences and the
importance of retaining the customers in an efficient manner for the improvement of the
sustainability of their business performances, the senior management of the company is
observed to strategize with precise consideration towards the establishment of the good

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corporate governance, efficient management of the community, effective management of the
environmental sustainability along with improved management of the people and culture
(Boq.com.au. 2019). With a precise look at the business strategy of the company, it is
understandable that the senior management of the company are putting strong emphasis on
ensuring the customer satisfaction, accessible, affordable and transparent products, efficient
customer complain resolution, information security and protection of the privacy along with
the financial hardship support. The senior management of the company is able to understand
the importance of the good corporate governance in the company and that is visible with their
strong emphasis on ensuring the transparent disclosure, ethical business conduct, compliance
to the relevant legislation, remuneration, efficient risk management and the management of
the shareholder return in a sustainable manner. With a precise focus on the business strategies
of the company in managing the environment, it is evident that the company is responsible
towards efficient usage of the resources, management of the eco- friendly property and assets
along with effective reduction of the environmental impact of operations.
Impact of the organizational structure of the company in the management
of innovation:
Considering the significance of the hierarchical structure of the company, it is evident
that the smooth flow of communication is increasing the success of the company in
communicating with the employees regarding the development of the innovative ideas for the
improvement of their business activities (Tidd and Bessant 2018). The senior management of
the company is able to gain the importance of aligning their business activities with the
preferences and demands of the customers and that led the company to apply the
technological advancement in their operational activities in an efficient management The
hierarchical structure helped the company in improving the efficiency of their decision
making and that is evident with visionary decisions such as the team up between the company

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and the River City Labs for introducing the innovative products nad services from the part of
the senior management of the company (Boq.com.au. 2019).
The company is able to understand the importance of enhancing the quality of the
customer experiences for retaining the customer and under such situation, the tie up with the
River City Labs will be significant in contributing to the Australia’s innovation community in
accordance to the comments of Group Executive and Chief Operations, Digital and
Information Officer, Donna-Maree Vinci (Boq.com.au. 2019). The tie up is expected to be
significant for the customers of the company as it will enable the customers to experience
innovative banking solutions and new age services. At the same time, the tie up will also
provide significant opportunities to the employees of the company in improving their ability
towards gaining new insights and immersive experiences from the programs such as newly
created out-turn program. The participation of the employees in such program will be
significant in improving their ability in creative or innovative thinking.
Impact of the organizational structure of the company in the overall
performances of the company:
Considering the organizational structure of the company, it is evident that the
company experiences improved functionality and at the same time, the hierarchical structure
helps the senior management of the company in taking crucial decisions with the least
consumption of time. The efficient maintenance of the hierarchy from the part of the
employees of the company is crucial for the senior management of the company in making
the employees comply with the business goals of the company. Considering the objective of
the company in improving their share of transparency, it is visible that hierarchy in the
company enables it to conduct the business activities with perfect portrayal of the
accountability (Boq.com.au. 2019). Along with that, the success of the company in

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conducting a sustainable business which ensures that the employees of the company are
conducting ethical business activities with precise consideration towards the code of ethics is
largely possible due to the efficient formation of the organizational structure of the company.
As the organizational structure of the company is able to provide the required strength
to the company in designing their business activities in such a manner that it improves the
service reputation of the company and the excellence of the company in retaining their
service reputation is pretty much visible with the improvement in the financial stability of the
company (Gupta and Kumar 2013). The improvement in the quality of the operations of the
employees is pretty visible and that enabled the company to generate260.5 million Australian
dollars as net income in the year 2014 (Boq.com.au. 2019).
Recommendation:
Considering the urge of the senior management of the company towards the
innovation, the company is recommended to provide sufficient scop to their employees for
the improvement of the innovative or creative thinking. The company is recommended to
develop brainstorming sessions for their employees and at the same time, the employees are
expected to participate in the creative thinking activities such as six thinking hat or Osborn
checklist for improving their skills of innovative thinking.
Conclusion:
On an ending note, it is understandable that the selected company, Bank of
Queensland is able to conduct an efficient business in the Australian financial services
industry for more than 150 years. The company is able to acquire considerable amount of
success and the urge of the company in improving their ability in incorporating the
innovation and technological advancement is considered to be one of the main success factor
for the company. The hierarchical structure of the company influenced the success and in

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addition to this, the continuous efforts of the senior management of the company in
improving the presence of innovation in the business operations of the company is expected
to be achieved with the conduct of brainstorming activities.

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References:
Boq.com.au. 2019. BOQ and River City Labs Team up to Tackle Innovation | Bank of
Queensland. [online] Available at: https://www.boq.com.au/About-us/media-centre/media-
releases/2018/2018-02-19
Boq.com.au. 2019. BOQ Personal Banking | Bank accounts, credit cards, home loans | Bank
of Queensland. [online] Available at: https://www.boq.com.au/personal
Boq.com.au. 2019. Executive Team | Bank of Queensland. [online] Available at:
https://www.boq.com.au/About-us/executive-team
Boq.com.au. 2019. Sustainability | Bank of Queensland. [online] Available at:
https://www.boq.com.au/Shareholder-centre/sustainability
Carayannis, E.G., Sindakis, S. and Walter, C., 2015. Business model innovation as lever of
organizational sustainability. The Journal of Technology Transfer, 40(1), pp.85-104.
Crane, A., Matten, D., Glozer, S. and Spence, L., 2019. Business ethics: Managing corporate
citizenship and sustainability in the age of globalization. Oxford University Press.
Gupta, S. and Kumar, V., 2013. Sustainability as corporate culture of a brand for superior
performance. Journal of World Business, 48(3), pp.311-320.
Jones, G.R., 2013. Organizational theory, design, and change. Upper Saddle River, NJ:
Pearson,.
Narula, R., 2014. Globalization and technology: Interdependence, innovation systems and
industrial policy. John Wiley & Sons.
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.

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