Analyzing Change Management and Strategy at Lloyds Bank

This report examines change management strategies at Lloyds Bank, focusing on the significance of purpose, vision, mission, and objectives in determining the bank's strategic direction. It highlights the processes and tools used by Lloyds Bank to manage change, including strategic planning models like William's model and change management frameworks like Kotter's 8-Step Model. The analysis incorporates SWOT and PESTEL analyses to evaluate the internal and external business environment, emphasizing the importance of adapting to factors such as technological innovation, market demands, and regulatory changes. The report also discusses strategies for managing risk at local, national, and international levels, along with the role of Key Performance Indicators (KPIs) in measuring and improving organizational performance. This document is a student contribution and is available on Desklib.

Change Management

Table of Contents
Introduction .....................................................................................................................................1
Main Body.......................................................................................................................................1
Conclusion.......................................................................................................................................5
References ......................................................................................................................................6

Introduction
Change management is defined as a systematic approach used by the business
organisation to effectively deal with any kind of transformation of an business goals, processes
and task (Ansoff and et. al., 2018). It enables business to effectively implement required
strategies for managing the change. For this report Lloyds Bank is taken into consideration.
Loyds Bank is a well established retail and commercial bank. It was founded in 1765 by John
Taylor and Sampson Lloyd. It is committed to offer 24 hours telephone and online services. This
report highlights value of purpose, vision, mission and objectives in determining the strategic
direction of the business. Also the process and tools considered by the business organisation to
determine their strategies to handle the change is also highlighted in this report.
Main Body
Strategy is defined as a proper plan of actions determined by the business organisation in
order to achieve their long term goals and objectives. It includes setting objectives and priorities,
analysing actions that needs to be considered to achieve those goals and mobilise required
resources to execute the actions. Proper implementation of strategy helps the business
organisation to achieve desired goals and objectives leading to enhance their overall
performance. It is also a clear set of task and objectives that outline how an organisation will
compete in a specific marketplace. In case of Lloyds Bank, proper and clear strategy will help
the bank to offer a vision of the future, determine the purpose and values of an organisation.
Another benefit of implement the right strategy for the bank is that it will enable them to develop
a single, forwards looking vision that can be suitable for the bank and the shareholders. In case of
Lloyds Bank, main business strategy of bank includes to effectively work towards helping
Britain prosper through satisfying their needs (Bailey, Mankin and Garavan, 2018).
Strategic planning is one of the essential process consider by higher authority of the
organisation to analyse their vision for the future growth and determine their long terms
effectively. In context to Lloyds Bank, to understand the strategic planning process of the bank
William's model of strategic management can be taken into consideration (Strategic Planning,
2021). This model includes mainly four factors that will help the chosen bank to gain
competitiveness in the marketplace. such as strategic management element, this factors helps the
chosen bank to determine the mission, goals, value of the bank as well as the key decision
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makers. The second element is Analysis and diagnosis, it enables the bank to evaluate and
analyse the environment and various factors that can impact the functioning of the bank. Third
element is choice, bank will consider number of alternatives available and accordingly assess
that right strategy is selected. Next, bank considers required plan, policies, resources, structure to
smoothly implement the strategy. And chosen bank ensure that strategy and implementation
leads to achieving desired objectives. Lastly, the chosen bank should regularly evaluated in order
to avoid any kind of risk and barriers and achieve their desired goals (Chapman, 2019).
Developing clear purpose, vision and mission statement plays an essential role in the
success of the organisation.These statement helps in determining the team's desire in a concise
manner, assisting business to focus on what is really essential, leading to offer a basis for
creating other aspects of organisational strategic plan. In context to Lloyds Bank, the vision
statement of the bank is to help the society to effectively deal with the complex social issues
faced by them through offering them required aids. Also the mission statement of the Lloyds
Bank is to help Britain prosper. The bank is committed to offer quality services for more than
320 years across each and every community and households. The main purpose of the bank is to
continue to offer quality services to their target customers. Having clear set of mission, vision
and purpose helps the chosen bank to set goals that will sue the main competencies of the bank
leading to achieve their strategic objectives. It helps them to have proper guidance to set the
value and strategy. For example, the chosen bank's mission and vision statement of helping
Britain to prosper and helping society to handle complex issues enables the set their strategy as
well as plan accordingly to accomplish their mission and vision (Dawson, 2019).
Business environment is defined as sum of various factors present inside and outside the
business organisation but directly leading to impact the functioning and profitability of the
organisation. Analysing internal and external business environment factors plays an essential role
in effective strategic planning. In context to Lloyds Bank, SWOT and PESTEL analysis is taken
into consideration to determine the business environment of chosen bank. Swot analysis helps in
analysing the strength and weakness of the company as well as various opportunities and threat
present. In context to Lloyds Bank, the main strength of bank is that it has strong presence in the
retail banking along with having around 45000 employees and 16 million customers
(Dneprovskaya and et. al., 2018). Fall in credit rating and complaints regarding tax evasion is
considered to weakness for the bank. Expansion into new emerging market and increased
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services can be great opportunity for the bank, in addition to this change in political factors like
Brexit can create threat for the bank.
PEST Analysis is where the any kind of changes in the political or government policies
leads to creating unfavourable environment for the bank such as recent change of Brexit in UK
can impact the profitability of the chosen bank. Also in case of Economic factor, change in the
inflation and recession will lead to impacting the profitability of the bank. Social factor includes
the attitude, behaviour and culture that directly impact the functioning of the bank. Chosen bank
is effectively working towards helping the Britain prosper socio economically, promoting
workforce diversity as well as enhancing accessibility and assisting consumers with disabilities.
The chosen bank is also adopting new and advance technology such as online payment to
enhance their customers experience (Kerzner, 2018).
Organisational change is defined as the state that occurs when an organisation moves
from its current state to desired state, any kind of change leads to directly impact the functioning
and profitability of the organisation. There are various reasons that leads to change in the
organisation such as it can be due to end of product life, or it can be due to some change in the
external factors. Change is a part of each and every organisation that is needed to be considered
by them effectively. In case of any organisation that main that leads to trigger the change
includes the change in governmental policies, or change in market demand, change in the
technology. All these factor leads to occurrence of change in the business organisation. In
context to Lloyds Bank, the importance of change leads to the successful adoption and utilisation
of change within the bank. It enables the employees to effectively understand the change and
work towards it. In case of chosen bank, some of the current changes includes increasing demand
of personalised customers’ services, fast technological innovation and challenging competitors.
These changes directly impact the profitability of the bank, so in order to deal with these proper
strategies have been implemented by the bank as well as proper change management is also
considered (Kerzner, 2019).
Change management is also described as the manner in which an organisation determines
and implement required change in their internal and external process. In order to deal with the
change like personalised customers services, fast technological innovation and challenging
competitors and determine the required strategy. the Kotter's change management model is
considered by the chosen bank. Kotter change management model helps business organisation to
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deal with the risk and implement new changes. It was developed by John Kotter in order to
enhance every person's ability to change as well increase their chances of growth (Kotter's 8-Step
Model, 2020). It includes mainly eight steps such as increase the urgency, it allows the bank to
determine the potential threat and examine the opportunities. Also creating honest and valid
reason to make the people understand the need of their involvement. Forming powerful guiding
coalition, manager of the chosen bank determine the change leaders and ensure their
involvement in the entire process. Bank also ensure that each and every one is working towards
the change as a team. Third step is developing a vision and a strategy, in order to determine the
change proper and clear values, vision and strategy are realised by the bank. Next step that is
communicating the vision effectively and convincingly. Then bank works towards removing the
obstacles through ensuring that the processes and structure are properly in placed and linked with
the banks vision. The sixth step is creating short term wins, the bank ensure that they have
created some short term wins in the change process that will lead them to build confidence for
long term. Next step that is considered by the bank is consolidating gains, there is continuous
improvement (Klun and Trkman, 2018). The last step is anchoring change in the organisation
culture, the bank ensure that change becomes the essential part of bank's culture as well as
visible in all aspects. Considering all these step helps the bank to effectively determine their
strategy and effectively deal with the change.
Any kind of change occurrence can lead to impacting the performance and profitability of
the organisation. In order to continue to grow and enhance their performance in the marketplace,
it is essential for the business organisation to effectively manage their change and risk at local,
national and international level. In context to Lloyds Bank, in order to deal with changes at the
local, national and international level various strategies like appointing risk management team
and limiting high risk customers can be taken into consideration. Appointing risk management
team and offering them required training will help organisation to deal with the change
challenging competition. Local skilled team will help in managing the risk at local level,
similarly, the risk at present at the national level is handled by the team present at the national
level. Bank also has risk management team at the international level that can handle the risk at
international level (Pulakos, Mueller-Hanson and Arad., 2019). Also another strategy that can be
considered by the chosen bank can be limiting high risk customers, which includes the limiting
the customers with poor credit limit or enabling them to pay ahead of time. Bank ensure that the
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customers present at local level is offered services accordingly in comparison the national
customers. Chosen bank also has international customer base, so bank ensure that customer with
poor credit limit is limited. In addition to this in order to manage the change related to
technological innovation, the bank can work towards adopting new and advance technology.
This will also help them to offer personalised customers services to their target customers at
local, national and international level.
Key performance indicator is defined as one of the essential tool used by the business
organisation in order to determine and regularly analyse the performance of the organisation. It is
considered to be a quantifiable measure or tool of performance for specified goals. In context to
Lloyds Bank, there are some specific criteria of KPI are used by the bank. The bank ensures that
their performance is evaluated internally and externally leading to achieve desired goals and
objectives. In case of chosen bank, internal KPI are used by in order gauge internal goals in the
departments, but will directly impact accomplishing the core objectives of the bank. Whereas
the external KPIs are considered by the chosen bank to gauge department performance in context
to overall goals of the bank. The chosen bank uses KPIs like efficiency ratio, total loan
outstanding and loan yield which helps them to measure their performance and effectively deal
with the changes present internally and externally. The chosen bank's balance scorecard shows
that the statutory profit after tax is 20%, statutory ROTE is around 20 %. The external KPI are
considered to measure performance of department and their relation to the overall objectives of
the business. In case of chosen bank, the management measure the KPI based on the efficiency,
sales performance and their overall efficiency. It helps them (Vermaak and de Caluwé , 2018).
Conclusion
From the above discussion, it has been concluded that implementing right strategy helps
the business organisation to achieve their desired goals and objectives and handle the change as
well. This report helps in analysing that regular evaluation of business environment also help
organisation to deal with the change and implement right strategy. Also Kotter’s change
management model is also analysed to determine the strategy of the organisation in this report.
Additionally, use of various strategies like appointing risk management team and limiting high
risk customers also helps organisation to effectively manage change and risk is also analysed in
this report. It is also analysed that use of KPI's helps in effectively dealing with the change.
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References
Books and Journals
Ansoff and et. al., 2018. Implanting strategic management. Springer.
Bailey, C., Mankin, D. and Garavan, T., 2018. Strategic human resource management. Oxford
University Press.
Chapman, R .J., 2019. The rules of project risk management: Implementation guidelines for
major projects. Routledge.
Dawson, P., 2019. Reshaping change: A processual perspective. Routledge.
Dneprovskaya and et. al., 2018, September. Evaluation Indicators of Knowledge Management in
the State Service. In European Conference on Knowledge Management (pp. 182-XXI).
Academic Conferences International Limited.
Kerzner, H., 2018. Project management best practices: Achieving global excellence. John Wiley
& Sons.
Kerzner, H., 2019. Using the project management maturity model: strategic planning for project
management. John Wiley & Sons.
Klun, M. and Trkman, P., 2018. Business process management–at the crossroads. Business
Process Management Journal.
Pulakos, E. D., Mueller-Hanson, R. and Arad, S., 2019. The evolution of performance
management: Searching for value. Annual Review of Organizational Psychology and
Organizational Behavior, 6. pp.249-271.
Vermaak, H. and de Caluwé, L., 2018. The colors of change revisited: situating and describing
the theory and its practical applications. In Research in organizational change and
development. Emerald Publishing Limited.
Online
Strategic Planning, 2021 [Online] Available through; https://sba.thehartford.com/business-
management/what-is-strategic-planning/
Kotter's 8-Step Model, 2020 [Online] Available through;https://www.apty.io/blog/kotters-8-step-
model
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