Report: Change Management Strategies for National Australia Bank

This report examines change management within the National Australia Bank (NAB), addressing issues of fraud, unethical practices, and a need for cultural reform. It provides an overview of NAB's context, including its customer base and employee size, and analyzes organizational behavior and leadership challenges. The report delves into relevant literature, exploring Lewin's Change Model (unfreeze, change, refreeze), Kotter's Change Management Theory (eight-step model), and the ADKAR Theory of Change Management, assessing their applicability to NAB's situation. It evaluates potential solutions, emphasizing the crucial role of leadership in fostering change and employee cooperation. Finally, the report recommends suitable strategies for NAB to transform its culture, promote ethical practices, and achieve its organizational objectives, drawing upon the change management models discussed.

Running Head: Change Management in NAB
Change Management in NAB
Report
System04104
6/6/2019

Change Management in NAB
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Table of Contents
1. Introduction.........................................................................................................................2
2. Overview of Company........................................................................................................2
3. Analysis of the organisational behaviour or leadership issues...........................................3
4. Literature Review...............................................................................................................4
4.1 Lewin’s Change Model....................................................................................................4
4.1.1 Unfreeze.....................................................................................................................4
4.1.2 Make Changes............................................................................................................4
4.1.3 Refreeze.....................................................................................................................5
4.2 Kotter’s Change Management Theory.............................................................................5
4.3 ADKAR Theory of Change Management........................................................................6
5. Evaluation of Possible Alternative solutions required to improve the situation.................7
6. Recommendations for the most suitable strategies.............................................................8
7. Conclusion..........................................................................................................................9
References................................................................................................................................10

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1. Introduction
Change is the crucial part of any organisation that determines the success of the
organisation. Change is the necessity of every organisation to grow and succeed in future and
compete with other organisations. The present report is about the change management in a
major Australian Bank named ‘National Bank of Australia’. From last few years, large
numbers of Australian banks are suffering from corruption charges in the country including
Australian and New Zealand Bank Groups (ANZ), National Australia Bank (NAB), and
Westpac Banking Corporation etc. The Australian government reformed an investigation
agency to inspect these banks, which was called Royal Banking Commission (Hornstein,
2015). The Royal Banking commission submitted their final report in February 2019, in
which commission suggest major changes in the banks to reform the culture of banks and
ensure ethical practices. This report discusses the issue of NAB and about the possible
change in the bank to reform the organisation as an ethical organisation. This report also
includes the various change model and theories in the literature review, which will provide an
insight for the suitable strategy for the change in NAB.
2. Overview of Company
The National Australia Bank is a reputed banking organisation in Australia. The NAB
serves more than 10 million customers in the country in 900 locations. The bank has more
than 35,000 employees who are committed to provide a fare and quality services to the
Australian citizens and business organisations (National Australia Bank Ltd., 2018).
However, the NAB is one of the famous banking organisations in Australia and known for its
best services. The bank provides its services to various small and large business
organisations. NAB was known for its best organisation culture and ethical practices but from
last few years, the bank faces the allegations of fraud, poor organisational culture, unethical
practices, and cheating with customers. These all issues need a major transform in the culture
of the organisation (National Australia Bank Ltd., 2018). However, bringing change in the
organisation is not an easy task as large number of people rejected to accept the new changes
in the organisation. Even the involvement of top management in the fraud and corrupt
practices is also a major concern in the organisation. NAB is one of the top four Australian
banks and it covers a large portion of Australian financial market and customers. The NAB
has number of options that will help the organisation to change its culture.

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3. Analysis of the organisational behaviour or leadership issues
NAB was known for its best organisational environment and ethical practices, but
from last couple of years, the NAB faces strong allegations of fraud and unethical practices in
the organisation. However, the NAB is known for its commitment towards its customers and
people who works in the organisation. NAB provides a best organisational work environment
to its employees and encourages them towards the ethical and cultural practices in the
organisation (Montague, Larkin & Burgess, 2016). However, the major concern for NAB
from last years is its culture. The organisation is trying to reform its culture from last 2 years,
but not a significant improvement was seen. On the final day of report submission of Royal
commission, NAB has also submitted a self-assessment report in which it was mentioned that
bank need to improve in some areas like organisation culture, ethical practices, and fair
leadership practices in the organisation. However, the Hayne report (another name of Royal
Banking Commission Report) that the major financial organisation needs to improve the
culture in the organisation and same thing applies on NAB as well. However, the NAB bank
is also known for its agile approach in its business innovation that provide opportunities to
NAB to implement changes in the organisation and look forward towards its mission and
vision. The Agile methodology of NAB not only helps to bring the change in the
organisation, it also helps the other employees to focus on ethical practices in the
organisation (Amernic & Craig, 2013).
The other problem in the organisation is that the involvement of leaders and top
executives of banks in the unethical practices in its business operation. The key people of the
organisation knows that NAB was engaged in corrupt practices such as charging fees for no
services, inappropriate use of customer funds and investment, taking bribes, issue in
insurance claims, selling various insurance with false and fraud information, and mislead the
top authorities and regulatory bodies about banking practices (Gilchrist, 2018). These all
practices in the organisation were conducted by the lower level staff to upper level
management, and the involvement of key people in NAB in such type of unethical practices
was a major concern. These all organisational issues, unethical practices, and absence of right
culture in the NAB forces the organisation towards change. However, the organisation needs
to change its culture and encourage the people towards the ethical practices in the
organisation (O'Brien, 2014).

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4. Literature Review
Culture of an organisation determines the way that how people behave and act in the
organisation. The culture of any organisation is the key factor in the success or failure of the
organisation. However, organisation culture is a conventional behaviour of an organisation
that includes behaviour, belief, and attitude of people. However, the change in culture can be
termed as a major transform in the organisation, which needed a cooperative support from
both top management and staff of the organisation (Lumsden, 2019). However, changes play
a key role in the organisation where the technology and exterior environmental factors of the
organisation are changing rapidly. However, adopting the change, does not mean that
problems is over rather the organisation needs to ensure that change will be followed and
accepted by every people in the organisation. Proper implementation of change is crucial for
the organisational success and in achievement of organisational objectives. However,
implementing the change in NAB to transform the organisational culture is not an easy task
rather NAB needs to acknowledge and train its employees prior to implement the change in
the organisation.
4.1 Lewin’s Change Model
According to the Lewin’s change management theory, change can be implemented in
three phases in any organisation. These three phases are as follow: unfreezing phase, make
changes, and refreezing phase.
4.1.1 Unfreeze
The unfreeze stage involves proper preparation for carrying change in the
organisation. The unfreezing stage helps the organisation to create an environment in which
change can be easily implemented. It also includes the acknowledgement to employees and
staff about the change and considering their views about the change. The unfreezing stage
also includes informing people that why change is necessary in the organisation and what will
be the benefits for the organisational after implementing change (Cummings, Bridgman &
Brown, 2016).
4.1.2 Make Changes
In the second phases, the organisation exercises the real practices and processes of
change. This is very time-consuming phases where organisation tries to implement the
change and avoid any resistance of people (Matos & Esposito, 2014). People resistance
against the change is so common in the organisation; therefore, organisation needs to take

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more time in making the change in the organisation. The role of a leader and managerial
skills are so crucial in this phase, as they are responsible to manage and implement the
change properly in the organisation. The quality leadership and proper managerial power is
vital to manage the change in the organisation. However, according to Lewin, communication
and time, two major factors in this stage of change (Dasborough, Lamb & Suseno, 2015).
4.1.3 Refreeze
At his stage, the change generally accepted and implemented in the organisation. The
people started to accept and adopt the change in the organisation and works according to the
new changes (Amernic & Craig, 2013). The works is stable in the organisation in this stage
and all things are back to their normal stage. In this phase, the organisational people are well
familiarized with the change and they are committed towards to organisational objective and
goals working with new changes in the organisation. However, this phase requires a
commitment of people towards the organisational objective and goals and they make sure that
changes are used all the time even after achieving the organisational goals (Davis, 2012).
4.2 Kotter’s Change Management Theory
The Kotter’s model uses the eight-step model for bringing change in the organisation.
The John P. Kotter has given eight steps in Change management, which are as follow:
(Source: McConnell, 2013)

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These eight steps in Kotter’s change theory helps to bring the changes in the
organisation in easy and systematic ways. The major idea behind this theory is that accepts
the proposed changes and prepare for it rather than changing itself. The Kotter’s theory
focuses on short-term goals and inspiring a sense of urgency and maintaining the momentum
of change in the organisation. However, the major problem in this change management
theory is that no steps can be skipped and every phase in this theory should be followed in a
systematic way. However, it is one of the time consuming theory, because it is based on the
systematic approach. It also gives additional pressure on the top management to implement
the change (Dima & Skehill, 2011).
4.3 ADKAR Theory of Change Management
The ADKAR change model primarily focuses on the organisational goals. ADKAR
change model focuses on the key goals and objectives of the organisation and considers those
specific organisational activities, which are directly connected with the organisational goals.
The organisation decides the goal and result based on this model and then gets the result in a
systematic order thus the change can be implemented and continued in various activities of
the organisation. This model also helps the organisation to find out various loopholes in the
change management process, which further helps to organisation to provide appropriate
knowledge and training to those staffs or workers who participate in the change process
(Mitchell, Fredendall & Cantrell, 2015). The ADKAR model provides a capability to the
organisation to find out the existing gaps in the change process and helps the change process
to achieve the desired result in the organisation. The ADKAR model split the change process
in various small sub parts and check the every parts whether it is effectively working in order
to archive the organisational goals or deviates from the desired results of the organisation
(Dumay & Dai, 2017).
However, these models help the organisation to implement the changes to achieve the
desired result. These models can also help the NAB to implement the change in order to
achieve the organisational objective and success in the future. NAB can use the Lewin’s
theory of change to improve its organisational culture and achieve the desired result of the
organisation to eliminate the immoral and uncultured practices form the organisation and
create a good cultural environment on the organisation (Kuipers, Higgs, Kickert, Tummers,
Grandia, & Van der Voet, 2014).

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5. Evaluation of Possible Alternative solutions required to improve the situation
The NAB needs to improve its organisation culture and it is the necessity of the
organisation that the key people of NAB will co-operate the organisation to bring changes
and establish a strong culture in the organisation. The importance of leader in changing the
culture of an organisation is crucial as a leader can easily influence and motivate people to
adopt the changes and change the culture, which helps to achieve the desired goal of the
organisation (McConnell, 2013). However, the fraudulent and corrupt behaviour of
organisational employees is a major concern for the NAB and it will damage its reputation
and image among its customers. Therefore, bringing change in the organisation is an essential
need for the organisation (Gilchrist, 2018).
The second option, which may be affective in changing culture is restructuring the
organisation and transform the entire structure according to the organisational goals and
objectives. It will help the organisation to avoid those people in the organisation who
involved in any unethical practices in the organisation (Amernic & Craig, 2013). The
inefficiency of leadership in managing fraud is a major problem for the organisation and it
can be handled if the organisation change the structure and share the responsibility and
accountability of key people in transparent way. Change in organisational structure is not an
easy task and it requires lots of efforts of both organisational people and top leaders of the
organisation. Apart from this, the organisation can also form a committee to monitor the
activities of organisational people and bring a change when any possible de-regulation
detected during the monitoring and observation of employees activities. The committee can
also help to inspire and motivate people towards the ethical practices in the organisation
(Munir & Terry, 2018).
The NAB can also launch various training and development programs to enhance the
culture in the organisation and encourage people to practice only ethical activities in the
organisation. The organisation should also provide freedom of speech and liberty to the
organisational people, thus they can raise their voice against any unethical activities
(Fordham, Robinson, Cleary, Blackwell & Van Leeuwen, 2018). It is the responsibility of
manager and top executives of the organisation to ensure that there will be no unethical
practices in the organisation. NAB should implement a solid change background in a
complex environment of the organisation, thus the organisational culture can easily be
improved and people performs their job in ethical ways in order to achieve the organisation

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objective. The leader can also create an environment where people can easily represent their
ideas and views that could be favourable for the change (Pascoe & Welsh, 2011).
Change in organisation culture needs a strong step in the organisation to motivate the
people to adopt the new changes. It is the nature of human being that they always resist
changes. Therefore, it is possible that most of the organisational people will resist the change
in the organisation. The top management and leaders should talk such type of people in the
organisation and motivate them to adopt the change (Lumsden, 2019). The leader should also
explain the staff and people that in what manner the proposed change will be beneficial for
them and for the organisation. The acceptance and approval of staff members in the banking
organisation is so crucial as it helps the organisation to properly implement the change
process in the organisation and determine the success of the organisation. However, the
organisation can also form a training and development team, which helps the organisation to
educate and aware organisational people about the change benefits and advantages to
participate in the change process. NAB can also recruit new and young taken in the
organisation who can easily adjust with the new organisational culture and environment of
the organisation. The recruitment and selection of new people will provide opportunities to
organisation to explore the change in each and every department of the organisation (Oates &
Dias, 2016).
6. Recommendations for the most suitable strategies
The unethical practices and poor culture in the NAB is a major problem in the
organisation. This problem needs a strong organisational change that facilitates the
organisation to remove the poor culture of the organisation and encourages people towards
the ethical practices. The NAB should focus on assigning fresh responsibilities and
accountability to every member in the organisation and encourage them towards the ethical
practices (Gilchrist, 2018). Change in organisational structure will be really a good option
that helps the organisation to bring a solid and ethical organisation culture. For this purpose,
the NAB should focus on bringing a change in the overall organisational structure and
implement a new legislation in the organisation related to fraud and unethical practices. There
should be some strict provisions in the new laws of the NAB, which contains strict penalty
and prison for unethical practices in the organisation. Change is not a onetime process rather
it should be implemented in the organisation on regular basis and it should be implemented in
the organisation in order to achieve the organisational objective.

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To implement the change in NAB, the organisation should follow the Lewin’s model,
which includes three phases; unfreeze, change over, and refreeze. The NAB can implement
the change process in the organisation in consideration with the staff and top management of
the organisation and also can encourage those people who resist change. The first phase of
the Lewin’s change management is always crucial as it considers lots of thing in the
organisation. The organisation can also set short-term goals after implementing the change
process that will further help the organisation to motivate people and encourage them to
participate in the change process. The short-term victory and goals can work as a motivation
factor in NAB that can inspire other people to adopt the change process and ensure the
success of the organisation. However, the role of leaders and top executives of the
organisation is crucial in implementing the entire process of bringing change in the
organisation.
7. Conclusion
In conclusion, change is crucial for any organisation to meet the modern technological
and external environmental changes outside of the organisation. However, change is also
crucial in eliminating organisational barrier and obstacles in the organisation. NAB requires
change in the organisation because of its unethical practices and poor culture behaviour of
people within the organisation. However, the involvement of top management and leader in
the unethical practices is also a major concern for the organisation. NAB needs to implement
the change in the organisation to change its culture and it is started with restructuring the
organisation and set the responsibility and accountability of every person in the organisation.
A strict law and regulation also helps the organisation to establish a great culture in the NAB
and avoid any unethical practices in the organisation. However, the NAB needs to follow the
Lewin’s three-step model, which helps the organisation to implement the change process in
the organisation in proper and commanding ways in order to achieve the organisation
objectives and goals.

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