Leadership and Change Management: Analysis of Westpac's Transformation

This report provides a comprehensive analysis of organizational change management at Westpac, particularly focusing on the leadership of CEO Gail Kelly and her strategic initiatives. It examines the changes implemented, such as increasing the representation of women in management and promoting diversity, and how these changes impacted the company's performance. The report delves into the application of Kotter's change management model to explain the transformation process, highlighting the steps taken to address urgency, build coalitions, and communicate the vision. It also discusses the challenges encountered and provides recommendations for sustaining and expanding the positive changes. The analysis includes a review of relevant literature on leadership, change management, and diversity, offering insights into the strategies employed and their effectiveness in driving organizational success. Overall, the report provides a detailed overview of the change process, its impact, and suggestions for future development within Westpac.

Running Head: ORGANIZATIONAL CHANGE MANAGEMENT
ORGANIZATIONAL CHANGE MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................2
Literature on Case Study Subject....................................................................................................3
Leadership and Change Management Concept...........................................................................3
Changes Made by CEO Gail Kelly in Westpac...........................................................................4
Application of Theory or Explaining Change.................................................................................9
Analysis of Change Process.......................................................................................................11
Recommendations..........................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................16

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Introduction
The different changes brought about by Gale Kelly in Westpac have helped the
organization in bringing forth improvements in the situation of the business. Empowerment of
the women in the processes of the organization and the manner in which the diversity in the
organization based on gender is undertaken has helped the business in bringing forth changes in
the systems of the organization in the market. The transformation that was planned by the CEO
of the organization has helped the same in bringing forth changes in the strategic decision
making systems of the business. Kelly confidently took steps to bring in changes in the
organization, Westpac, through the global financial crisis and merge with St George. It has
helped in the growth of the organization. On the other hand, the diversity management, the equal
employment opportunities, and the provisions of including women in the management of the
organization have helped the same in maintaining a balanced workplace.
The report aims at undertaking steps to bring in changes in the systems that are
undertaken by Kelly in Westpac and the manner in which the change has helped the organization
to make continuous innovation to sustain in the international markets. On the other hand, the
report also identifies the issues in the change process and thereby recommends actions for
bringing in sustenance and expansion in the business.
Case Description
The CEO of the organization, Westpac, Gale Kelly took steps to bring in changes in the
systems of the management based on the equal distribution of the workforce. The different
strategies that are undertaken by the business is dependent on the proper functioning of the

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organization as per the objectives of the same to excel in the international markets (Ugwu,
Onyishi. and Rodríguez-Sánchez 2014). Kelley took steps to initiate 40 % women in
management by 2014, which has grown to 50 % by 2017 (Kumar 2013). The different key
elements of the change in the systems of the organization are dependent on the functioning of the
workforce. The balance in the workforce has helped the business to bring in changes in the
situation of the organization.
The sustenance of the business is reflected through the increase in the net profit margins
of the organization while operating in the international markets. On the other hand, the equal
employment option of the organization has helped in maintaining he steady levels of innovations.
The idea that was adopted by Kelly was to involve women in the upper management of the
organization to bring in changes in the situation and its functioning as per the needs of the same
in the market. The strategy has helped the CEO in ensuring the flexibility of the workforce and
the systems and the performance of the business operations in the market. The key elements of
the change in the systems of the organization are dependent on the introduction and prioritization
of women in the management systems of the business. The vision was to bring in changes in the
management through balancing the different factors of the gender based recruitments.
Literature on Case Study Subject
Leadership and Change Management Concept
Schoemaker, Krupp and Howland (2013) revealed that change management indicates as a
process, techniques and tools for managing the change within the organizations tools that can be
used to facilitate people make successful personal transitions taking place in the adoptions and
change realization. These researchers also stated that leadership development and change

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management tend to be the most vital priorities for several organizations. House et al. (2013)
stated that one of the vital reason companies struggle is because of these companies struggle to
follow both leadership development along with change management as separate and interlinked
challenges. Change leadership can be understood as the capability to influence along with
enthuse other people by means of personal advocacy, drive along with vision along with access
resources to develop a strong platform for ensuring change.
Changes Made by CEO Gail Kelly in Westpac
Latham (2013) under the leadership of Gail Kelly, Westpac was positioned as a pioneer
in launching effective leadership practices in order to attract and support women. These
researchers also revealed that management along with women in management numbers has
turned out to be sluggish at the time Gail Kerry became CEO in the year 2008. Westpac now
intends to attain market leading target of more than 50% women in leadership by the end of
2017. This CEO analyzed that need of leadership in ensuing better change management on
diversity that can support women prospers in the bank. Simsek et al. (2015) evidenced that Gail
Kerry realized there should be a sustained investment within the programs along with that
practices is required for attaining goals like target of attaining 50% women within the roles of
leadership. The CEO developed innovative new programs targeted at women to encourage them
in joining men dominated areas like IT and considered recruitment of women from outside the
banking industry. Gail Kerry also encouraged women from outside the banking industry to join
Westpac.
Ding, Li and George (2014) explained that change regarding women leadership
encouragement in Westpac was introduced and implemented by Gail Kerry. It made sure that
under her leadership can ensure strong heritage when in consideration to the women’s

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participation along with leadership within the organization. These researchers also stated that the
bank appointed a number of women within the roles of senior leadership. Malewska and Sajdak
(2014) indicated that the board of Westpac focused greatly on maintaining cultural diversity
change and had been the pioneer in appointing female directors. Focusing on such change
management through effective leadership Gail Kelly dealt with several barriers related with
women empowerment and leadership. Westpac reputation for inclusive leadership practices that
was well-founded. These researchers also indicated that Westpac had a strong culture of treating
people sustainability and equally. Wahjudono, Ellitan and Otok (2013) revealed that Kerry Gail
requires refocusing on the progress of Westpac and focused on the same the CEO announced a
series of changes within the strategy practices along with the appointments along with a range of
publically developed goals.

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Figure 1: Change Implemented by Gail Kelly in Westpac
(Source: Du et al. 2013)
According to Norzailan, Yusof and Othman (2016) stated the major steps taken by Gail
Kelly in collaboration with the HR and Corporate Affairs Executive Manager for rebooting
necessary actions on women empowerment within the bank. The role of the head of diversity
management was changed and was channelized towards the maintaining increased diversity. The
rationale for better diversity management was considered by the CEO to be a commercial need
rather than maintaining a fairness agenda. Two major business reasons for improvement in the
women’s position through diversity leadership were explained by Schweitzer (2014). Firstly, in

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Westpac diversity of experience along with appreciation of different ways of generating value
was considered as better leadership strategies in attaining better results on women empowerment
within the bank. The fact that the CEO set goals of empowering 40% women within the
management they are increasingly getting renowned within professional circles (Klenke 2017).
Moreover, such effective diversity leadership is observed to be highly distinctive in Westpac as
this facilitates the bank in increasing their position as a preferred employer in Australia.
Figure 2: Progress in Culture Surveys in Westpac Australia
(Source: Rhode, 2017)

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In contrast, Antonakis and Day (2017) presented a view from elaborating the above
figure that there is a gender leadership gap within Westpac and diversity is deemed to have an
increased priority. This is for the reason that it facilitates the bank’s management, the CEO Gail
Kelly along with the bank to get behind as it is deemed as a major priority in better change
management maintenance within Westpac. These researchers also evidenced that the need to
refocus on women’s progress within Westpac facilitated the CEO in implementing a range of
changes through her exceptional leadership in the areas of strategy, practices and appointments
along with a range of publically explained goals.
Cook and Glass (2014) indicated that Gail Kelly implemented change management in
Westpac through encouraging senior leaders. The CEO focused on reinforcing their commitment
by means of casting a “leadership shadow” and utilizing their behavior to role model along with
setting standards for the overall organization. In implementing such change on diversity and
women empowerment within Westpac, Gail Kelly faced certain barriers as some of the leaders
needed the discipline too consistently and proactively position mission of the company on
gender. Hoyt and Murphy (2016) revealed that this was not that easy and for brining in such
change on diversity culture, being “on message” was vital for generating and sustaining
momentum all through the bank. These researchers also explained certain diversity leadership
and change management strategies for bringing in major changes on women empowerment
culture within Westpac:
 Recognizing as well as celebrating the female leadership within and external to the
Westpac
 Ensuring sponsorship from senior executive of the diversity streams along with
developing “employee action groups”

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 Tracking as well as managing progression on diversity change management through
maintaining regular “talent days” for all senior teams
 Gail Kelly also developed certain innovative programs focused on development,
recruitment as well as women empowerment promotions in Westpac bank
Application of Theory or Explaining Change
Wells (2014) indicated that “Kotter’s change management model” is the best change
management model which is considered for explaining change within the Westpac Bank. This
theory can better explain Gail Kelly’s leadership management within the bank through and this is
explained through eight change management steps in the model.
Sense of
Urgency
Set a
powerful
coalition
Develop
change
strategy
Co mmu nica
ting the
change
vision
Remove
obstacle
s
Generate
sho rt-term
ach ievemen
ts
Pr o ducing mor e
cha nge t hr ough
gain s
Ancho ring
new
changes in
cultur e

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Figure 1: Kotter Change Management Model
(Source: Authors Creation)
 Sense of Urgency: In bringing diversity change within Westpac it is considered
necessary by Gail Kelly to identify the urge for change within the company’s culture. In
response to same, the CEO has taken certain necessary steps in identifying the threats in
not maintaining gender diversity along with anticipating the opportunities on resolve such
issue on women empowerment. Based on the same, Westpac took necessary steps
(Inauthentic 2015).
 Developing a Dominant Coalition: In order to encourage employees with relevance of
change, Gail Kelly considered taking vital steps for unifying the major actors of the
gender diversity project. It is also deemed to simplify the transformation process and
facilitate in building emotional commitment that can support the change process.
 Generating Change Strategy: Several strategies and plan are developed by Gail Kelly
in planning to dealing with the organizational issue of gender inequality issue. It is the
efficiency of the organization to reveal the best solution strategy in ensuring the culture
change in Westpac bank (Kinnear and Green 2017).
 Communicating Change Vision: Gail Kelly discussed the change strategy within a
close meeting that did not serve to be highly beneficial for the organization. Instead daily
communication along with open conversation resulted in implementing women
empowerment change management advantage for the Westpac bank.
 Addressing Obstacles: The CEO of Westpac Bank considered it important to eliminate
all the barriers associated with the change process. Through addressing the barriers it

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turned out to be advantageous for the management to execute their vision and mission on
encouraging gender diversity.
 Developing Short Term Achievements: Gail Kelly realized that in practicing change
management leadership for bringing in gender diversity within Westpac, it is better to
attain short term target rather than the long term fixed goals. Along with that, the CEO
also considered that attaining the short term change management goals that facilitated in
motivating other leaders in the company (Hoyt and Murphy 2016). It also maintained
moral boost up to attain the long term achievements in change management on women
empowerment.
 Producing Change through Gains: Gail Kelly also focused on attaining successful
leads towards attaining great changes in developing new targets on gender diversity on
long term basis. Conversely, the CEO also took into neither consideration that successive
gains are nor symbol of satisfaction and considering same, she encouraged the leaders
and the company to support the change process.
 Ensuing New Changes in Culture: Kotter stated that transformation or change should
be the most important strategy for any company (Hoyt and Murphy 2016). In
consideration to that, Gail Kelly ensured change in all the aspect of the working
environment in Westpac. Such process presented a change within practice that the
employees are getting accustomed with and support more women employment in the
bank.
Analysis of Change Process
Changes help in delineating the different improvements in situations of the businesses.
The key elements of the change in the processes of the organization is recognized through the