Evaluating Organizational Change Management Approaches

The document analyzes various strategies for organizational change management, emphasizing Kurt Lewin's model as foundational. The three-step process of unfreezing, changing, and refreezing is highlighted for its effectiveness in facilitating sustainable change within organizations. Additionally, the analysis explores how corporate volunteerism can enhance employee commitment and foster a culture that supports innovation. It discusses the role of leadership in successfully implementing these strategies, drawing on evidence from various studies to underscore their impact on organizational dynamics. Furthermore, it touches upon the broader implications for developing an adaptive, resilient organization capable of navigating complex changes.

Running head: CHANGE MANAGEMENT
Change management
Name of the student
Name of the university
Author note

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Executive summary
The aim of this report is to discuss about the change management process being initiated by ANZ
bank under the leadership of John McFarlane. The challenges being faced by the organization in
the initiation of the change management had also been discussed in this report. The role of the
leadership in initiation of effective process of change management has been discussed in this
report. This report concludes that, initiation of the change management in the organization is
having both opportunities and challenges to be faced by the managers. However, ANZ bank has
benefited from the initiation of the change management.

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Table of Contents
Introduction......................................................................................................................................3
Key aspects of the organizational transformation of ANZ bank.....................................................4
Community development.............................................................................................................4
Initiation of the gender equality...................................................................................................4
Cost cutting initiatives.................................................................................................................4
Enhancement of the organizational culture.................................................................................5
Initiation of the leadership development program.......................................................................6
Challenges in the change management............................................................................................6
Attributes of key leaders at ANZ bank............................................................................................8
Recommendations............................................................................................................................9
Conclusion.....................................................................................................................................11
Reference.......................................................................................................................................12

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Introduction
Change management is being initiated by the contemporary business organizations in
order to adapt to the change in the market or business scenario. This is due to the reason that, the
current business scenario is having much more competition. Change management is being
implemented in different operational sectors of the business organizations (Hornstein 2015).
Thus, the more effective will be the alignment and coordination of the departments of the
business organizations, the more efficient will be the implementation of the change management.
However, implementation of the change management is having different barriers that should be
effectively identified. This is due to the reason that, implementation of the change management
involves determination of the interest of different stakeholders in the organization (Altamony et
al. 2016).
ANZ bank is one of the leading financial institutions in the Australia with having their
market presence in different locations around the world (Our company | ANZ 2018). They have
implemented successful change management in their internal management under the leadership
of their CEO John McFarlane in the late 1990s. However, though there are various competitive
advantages being gained by them through the initiation of the change management, there are
various issues also being faced by them. Moreover, the change management in ANZ bank
involves the huge role of leadership due to the reason that, the role played by their CEO was one
of the key factors for the successful implementation of the change management.
This report will discuss about the key transformation being identified during the tenure of
John McFarlane in ANZ bank. Moreover, the challenges being faced by the organization in the
initiation of the change management will also be discussed in this report. The role of the

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leadership in managing the change management in the organization will also be discussed in this
report. In accordance to the issues being identified, various recommendations will be discussed
in this report.
Key aspects of the organizational transformation of ANZ bank
Community development
One of the key organizational transformations being initiated at the time of the John
McFarlane is stopping the trend of the closure of the branches in different locations. This is
being done due to the reason that, in the late 1990s, there was public outrage regarding the
closure of the bank branches (Seltzer, 2017). Thus, under his leadership, ANZ bank stopped the
process and initiated in catering to more number of the customers. Thus, it helped them to create
favorable image in the market by going against the business trend.
Initiation of the gender equality
John McFarlane initiated the gender equality in the organization due to the reason prior to
his appointment, there were no female candidate in the higher level management of the ANZ
bank. Thus, initiation of the gender equality in the higher level management helped the
organization to gain goodwill in the market (Roberts 2015). On the other hand, it also helped
them to adhere to the corporate social responsibilities. Gaining of the goodwill in the market
helped ANZ bank to create positive impression among the customers compared to their
competitors.
Cost cutting initiatives
Two of the revenue generating options available for the business organizations is the
increase in the profitability of the organization and reducing the cost of the operation. Under the

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leadership of the John McFarlane, ANZ bank initiated the process of the cost cutting initiatives.
However, in due course of the cost cutting initiatives, the number of jobs is not being cut. He had
initiated bailing out the investment being done in the developing countries, internal operations
are being restructured and partial operations are being outsourced (Handley and Benton 2013).
Thus, the average cost of operation is being reduced, which further enhanced their profitability.
Enhancement of the organizational culture
In the competitive business scenario, organizational culture is important to gain
competitive advantages. This is due to the reason that, the more effective will be the
organizational culture, the more will be quality of the customer service along with enhanced
productivity of the employees. In the case of the ANZ bank, John McFarlane initiated the change
in the organizational culture (Buschqens, Bausch and Balkin 2013). This is due to the reason
that, according to him, if the organizational culture can be made favorable, then competitive
advantages can be gained from the side of the employees. In accordance to this policy, John
McFarlane identified and benchmarked some of the top organizations in the market known for
their effective organizational culture.
Moreover, the employees are also being involved in the process of creating the new
organizational culture. This is the different approach to what ANZ bank was having before.
Involvement of the opinions of the employees in determining the organizational culture helped to
cover the diverse requirements of all the associated stakeholders in the organization. Various
initiatives are being take care of in enhancing the organizational performance (Azanza, Moriano
and Molero 2013). Measures such as initiation of the motivation plan for the employees by
providing reward to the employees are being started. Thus, involving the feedback of the

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employees, providing reward and recognition to them and initiation of the customer oriented
approach helped the organization to have an effective and favorable organizational culture.
Initiation of the leadership development program
Under the leadership of John McFarlane, ANZ bank initiated the leadership training and
development program for their managers. Hey have initiated different programs for identifying
and developing talents in the organization. Various managerial levels including the middle and
the lower levels are being included in the training and development program. This helped to have
the future leaders ready in place along with managing the employees effectively.
Challenges in the change management
Implementation of the change management is having various challenges to be faced in
the organization. This is due to the reason that, initiation of the change management is having the
negative and positive impact on different stakeholders. Thus, stakeholders having or perceiving
negative impact from the initiation of the change management will have more chance to resist.
The following sections will discuss about the challenges being faced by the managers.
 Resistance from the side of the employees is one of the most common challenges being
faced by the managers in initiating the change management. This is due to the reason
that, initiation of the change management involves loss of jobs for the employees. In the
given case of the ANZ bank, it is being stated that, John McFarlane had outsourced some
of their operational activities and changed the location of their offices in order to cut the
cost. However, outsourcing involves loss of jobs in the organization, which will have
negative impact on the employees (Bateh, Castaneda and Farah 2013). Thus, according to
the power interest matrix, employees are having more interest in the process of the

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change management than having the power. Thus, they will resist this kind of
organizational change.
 Resistance can also be originated from the side of the management also. This is due to the
reason that, the approach of the change process may not meet the criterion of the higher
management. For instance, in the case of the ANZ bank, it is being stated that, John
McFarlane initiated the change in the organizational culture by involving the feedback
from the employees (Baker et al. 2013). He also concentrated more on involving the
employee opinion on the management activities, which was different from the existing
culture of the organization. Thus, this caused in the emergence of the conflict in the
management. There may have managers who will have reservations in involving the
employees in their activities. Thus, managers in the change management process will also
have to face the challenges from the side of the higher level management.
 Diversity in the organization and in their workforce will also prove as a challenge for the
managers in implementing the process of the change management. This is due to the
reason that, diversified workforce comprise of employees from different social and
cultural backgrounds (Hafsi and Turgut 2013). Therefore, the particular approach of the
change management process may not adhere to the different requirement and expectation
of the employees. In the case of the ANZ bank, they are having their market presence in
different locations around the world. Thus, different locations will have different level of
acceptance towards the organizational culture. It will be a challenge for the managers to
initiate the process of the change management according to the need of different cultural
and social criterion.

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 The current market scenario is much more challenging and competitive in nature.
Moreover, the trend and requirement of the customers are changing more frequently.
Thus, it is one of the key challenges for the mangers to initiate the change process in the
organization according to the change in the market trend and requirement (van den
Heuvel et al. 2013). In addition, initiation of the change management involves cost for
the organization. Thus, will be difficult for the managers to initiate the process of change
management frequently according to the change in the market.
Attributes of key leaders at ANZ bank
In the given case study, the key attributes of the leadership roles in the ANZ bank are
being discussed. There are various positive and negative attributes being discussed in the case
study. Two leaders of ANZ bank are being stated in the case namely, John McFarlane and
Michael Smith. Following sections will discuss about the key attributes of the leaders being
discussed in the case.
 One of the key attributes of John McFarlane is his well rounded approaches. This is due
to the reason that, in the case study, it is being stated that, John McFarlane is having
equal concentration towards personal and professional life. Thus, it helped the
organization to have the same approaches for the employees. John McFarlane motivated
his employees to have proper work life balance, which in turn enhanced their
effectiveness and productivity (Isaacs 2016). Therefore, the transformational approach of
the leadership style of John McFarlane helped to have positive influence on the
employees.

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 Prior to the joining ANZ bank, John McFarlane is having huge corporate experience.
Thus, it helped him to not repeat the issues being faced by him in his early careers. On
the other hand, the vast corporate experience of him also helped the ANZ bank to gain
rich leadership ideas (Guerrero and Pena-Legazkue 2013). Thus, the direction of him got
enhanced with the past experience being gathered by him.
 John McFarlane also known for the social and customer oriented approach (Mukerjee
2013). In the case study it is being stated that, majority of the aspects of the change
management being initiated by him are customer and society oriented. This helped to
involve the associated stakeholders in the change management process along with
reducing the chance of origination of the resistance.
 On the other hand, Michael Smith was being selected as the successor of John
McFarlane. One of the key attributes for him is also the vast corporate experiences. In the
case study, it is being stated that, Michael Smith is having experience of being the former
head of HSBC Asian banking division (Brockner, Senior and Welch 2014). Thus, it is
also helpful for the organization to gain the vast experiences of the leader.
 Another key attribute of the Michael Smith is the acceptance towards the use of latest
technologies (Peek et al. 2014). This is due to the fact that, in the case study, it is being
stated that, Michael Smith has initiated the use of the latest technologies in the
organization. Thus, the more acceptable will be the leader towards the latest technologies,
the more will be the effectiveness of the leader in the organization.
Recommendations
Thus, in the above discussion, there are various issues being emerged in the process of
the change management. The following sections will discuss about the recommended steps to

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overcome the identified issues. Change management models such as Lewin’s model of change
management will be used to determine the recommended steps.
 The first step of the Lewin’s model of change management is Unfreezing. This step refers
to the process of communicating with the associated stakeholders in the change
management process along with involving the feedback of the stakeholders who are
having interest in the change process (Shirey 2013). This is important due to the reason
that, prior to the implementation of the change management, it is important that the
employees and other associated stakeholders should have the knowledge and
understanding. This will help to reduce the probability of having resistance from the side
of the employees.
 It is being recommended that, the managers responsible for the implementation of the
change management should first communicate with all the associated stakeholders
regarding the change process and the motive of the implementing the change. This will
help in having a mutual understanding and coordination among the stakeholders prior to
the initiation of the change.
 The next step in the Lewin’s model of change is the changing process. In this step, the
transition from the existing process to the new process is being initiated (Sarayreh,
Khudair and Barakat 2013). In this step, the managing skill of the leaders will be tested
due to the reason that, employees will face the difficulty in adapting to the new process.
 Thus, it is being recommended that, mangers should have the effective skill of
management in having seamless process of change in the organization. Moreover, it is
also being recommended that, the feedback from the employees should be gathered in
due course of change process in order to identify the shortcomings of the process.

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 The last step of the Lewin’s model of change is refreezing. This step refers to the process
of bringing stability in the organization after the implementation of the change
(Cummings, Bridgeman and Brown 2016). This step includes aligning the employees
with the new change process in the organization. Providence of the training and
development programs for the employees are also being included in this step.
 It is being recommended that, managers should follow the transformational style of
leadership in the organization to have the long lasting impact of the implemented change.
This is due to the reason that, it is important for the managers to determine the challenges
being faced by the employees in adapting the new culture in the organization. Thus, the
managers should gather the feedback from the employees regarding the new process in
the organization and rectifying it accordingly.
Conclusion
Thus, from the above discussion, it can be concluded that, initiation of the change
management in the organization is having both opportunities and challenges to be faced by the
managers. This report discussed about the attributes of the leaders of ANZ bank being mentioned
in the given case. It is being seen that, both the leaders of ANZ bank are having various positive
attributes, which helped them to drive the organization effectively. In addition, this report also
discussed about the benefits being gained by ANZ bank from the initiation of the change process
along with identifying the issues to be faced by the managers. This report concludes that, there
are few challenges to be faced by the managers in the process of the change management. In
accordance to the identified issues, various recommended steps are being discussed with relation
to the Lewin’s model of change management.