Strategic Change Management: Improving RBC's Decision-Making Process

This report examines the strategic change management approach of the Royal Bank of Canada (RBC), focusing on how its organizational structure can be improved to facilitate smoother decision-making processes and enhance relationships with stakeholders. RBC's current hierarchical structure is analyzed, highlighting the roles and responsibilities delegated from the CEO down through various departments. The report emphasizes the importance of aligning business plans with sustainable growth and development goals, suggesting a dedicated line of responsibility for sustainability initiatives. It identifies the company's value proposition and customer relationships as key components contributing to sustainability efforts, particularly in areas like financial literacy, addressing ecological challenges, footprint reduction, and youth welfare. The report further explores how RBC's decision-making processes can incorporate sustainability considerations to benefit both the company and its external stakeholders, ultimately leading to enhanced corporate governance, increased customer awareness, and long-term profitability. The analysis draws upon academic sources to support its findings and recommendations for improving RBC's strategic change management practices.

STRATEGIC CHANGE MANAGEMENT
Strategic Change Management
Belal Saad

1STRATEGIC CHANGE MANAGEMENT
It can be said that an organization that is aligned to make amends in sustainable growth
and development will adopt a business plan accordingly. While carrying out the same, the
company needs to ensure that there is presence of delegation towards the achievement of such
goals. The delegation thus created should be reflected clearly in the organizational structure in
order to make its prominence clear. This paper will discuss about the structure of the Royal Bank
of Canada and how could it be improved to ensure a smooth decision making procedure
enhanced relationship with the stakeholders.
The current structure of the Royal Bank of Canada is one which can be considered
hierarchical. Such a structure is characterized by a vertical line of authority (Morschett,
Schramm and Zentes 2015) The Company is headed by the CEO. The chief financial officer, the
head of management and insurance, the chief HR officer and heads of other capital, treasury and
IT department all the executives who are responsible to report to the CEO of the company. Roles
are delegated further down the hierarchical structure. The adopted structure is the best suited for
a large scale organization and is thus justified (Aghina, Smet and Heywood 2014). In order make
considerable improvements and amend in sustainable development, companies should delegate a
line that is responsible for the division as a whole. This will enable the head of the organization
to be aware of the issues that are being faced by sustainability efforts of the company and can
thus be catered to.
Royal Bank of Canada’s business model comprises of their Key partners, Key activities,
the company’s value propositions, customer segments, channels, revenue streams and customer
relationships. The value proposition along with the customer relationships segment has been
identified as the key components that contribute towards the sustainability efforts of the
company. In order to manage the company’s aim to change to the changing attitudes of people,

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the changing responses to adverse climatic change and the changes its hopes to make through
their sustainability initiatives can be obtained by collaborating their efforts of the above
highlighted processes. The company aims to achieve certain feats in sustainable development.
Their initiative of promoting financial literacy, the RBC generator which work towards
creating a pool of investment that will be contributed to address the social and ecological
challenges, the footprint reduction plan and youth welfare initiatives directly correlate with the
company’s value proposition and customer relationship tactics. In this way the organization is
able to adjust to the worldly changes by implementing the same in their organizations plan or
structure.
The key activities of the company involve managing investments, offering financial
services such as loans, insurances and allowances, general banking such as commercial and
personal banking, providing risk management services and wealth management services. In
adapting and adjusting to the efforts of sustainability, the organizations are characterized by a
change in the decision making procedure (Fabac 2010). While carrying out initiatives such as
footprint reduction, youth welfare and financial literacy the company’s decisions will ensure that
the same contributes to the long term sustainability of the company as well as the society as a
whole.
Contributing to the above will ensure that the external stakeholders of the company the
company are benefited through the knowledge creation. In addition to that contributing to the
society will mean that the consumer community will have good or improved impressions about
the company. The enhanced goodwill will infer that the company has become successful in
making themselves more visible to the community. Every company intends to improve their
corporate governance and the same will be possible if the decision makers of the company

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contribute towards such initiatives (Mayfield 2014). This would finally result in increased
number of potential customers through increased awareness thus leading to long term
profitability.

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REFERENCES
Aghina, W., De Smet, A. and Heywood, S., 2014. The past and future of global
organizations. McKinsey Quarterly, 3, pp.97-106.
Fabac, R., 2010. Complexity in organizations and environment-adaptive changes and adaptive
decision-making. Interdisciplinary Description of Complex Systems: INDECS, 8(1), pp.34-48.
Mayfield, P., 2014. Engaging with stakeholders is critical when leading change. Industrial and
Commercial Training, 46(2), pp.68-72.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. International Organisational Structures
as Coordination Mechanism. In Strategic International Management (pp. 251-274). Springer
Gabler, Wiesbaden.