Australian Regional Bank - Case Study Example

 Introduction Assessments of the internal climate of the Australian Regional Bank have indicated a need to restructure current internal policies designed to emphasize a teamwork philosophy amongst both the senior-level leadership group and the organizational staff. The bank has sustained a tremendous history of growth and internal successes that have been identified through the observational assessments of the Change Management Consultant, however, there is currently a widening chasm of disparity in terms of how the organization is to proceed as a thriving business entity in the 21st Century. Clearly, there is a separation of vision within the executive leadership group mandating an immediate necessity to unify this group by way of establishing a singular strategic goal for securing the bank's continued growth and obtaining policies which enhance internal productivity. A common purpose derived of senior-level unity of vision is a missing element from the organizational climate and this level of division is having a profound trickle down effect on the banking staff which further creates a disorganized and uncertain culture. Further, the rigid top-down leadership hierarchy of command established within the bank prevents empowering staff to utilize their vast skills through self-managed contributions. The breakdown of communication in the Australian Regional Bank can best be defined in the organization's lack of development regarding customer relationship management and this collapse of communication is impacting productivity on all levels. Despite the bank's history of substantial successes, radical change in terms of internal practice is proposed in order to move forward as a cohesive business entity. Situational Analysis Developing a common purpose within the executive leadership group should be recognized as a primary objective in order to establish a clear path forward in terms of how the company intends to sustain growth in its industry. While some new executives continue to resist the direction proposed by the Chief General Manager, others are attempting to mimic opposing successes established in the executives' previous career position. This division amongst leadership is substantially visible to the bank employees, creating a sense of confusion, doubt, and mistrust in terms of perceived manager/employee relationships. Lack of management visibility and support, especially for companies experiencing a transitional phase, will directly affect employees' perceptions about whether or not the company is well-managed (Boles & Sunoo, 1998). Faith in leadership and confidence in the strategic mission of the bank are defined by a unified executive staff which establishes internal cohesiveness, replacing confusion. Uncertainty of employees during any change processes will ultimately reflect on the implications for the individual employee, or the environment that employee is doing his or her work in (Elving, 2005). In terms of employee uncertainty, in most situations with the Australian Regional Bank, the executive leadership sets the tone for continuous misunderstandings, lack of employee productivity, and uncertainty about job security. The main factor in promoting the necessity for change in the bank is the monumental need to establish a method to effectively communicate; both in the executive group and amongst employees. Without communication, any change strategy stands a high probability of emulating the high percentage of change programs that fail (Croft & Cochrane, 2005). To the credit of the bank and its leadership, highly visible change procedures are already in place, highlighting a well-defined performance management system, establishing improved banking systems, and continuous internal restructuring. However, any change policy established requires establishing unity, a communication feedback and positive reinforcement loop, and a clear set of strategic goals that define a single objective to which everyone on staff can contribute. Because of the tone being set by executive leadership in terms of sustaining self-interest, this independent philosophy is spilling over into the entire staff causing what this Consultant perceives as "turf wars" and the sustainment of political career objectives. Ultimately, it is both the internal and external stakeholder who is experiencing the effect of the lack of camaraderie at the Australian Regional Bank and this air of confused disloyalty is preventing employees from contributing more to a team effort. The company has done a tremendous job of establishing a training system designed to develop technical competencies amongst the staff, however an instructional process of dealing with the external stakeholder needs development. Thriving in the midst of organizational changes requires getting the skills needed and not allowing knowledge to walk away (Tynan, 2006). In previous years, employees were rewarded for adapting to and contributing technical knowledge to the growth of the firm, however currently the centralized method of decision-making and lack of customer-focused communication is driving an employee resistance to internal change systems. Successful organizations are challenged to become a quality organization, a learning organization, and being customer-focused (Petty, 2000). The Australian Regional Bank is missing these key elements to achieving sustained growth and overall productivity. Problem Identification The main concern within the bank is a resistance to change in both the executive group and amongst the staff. Resistance to change is acknowledged as being a fundamental block to transformation and is a primary reason why change does not succeed (Mabin et al 2001). Having previously established the contributing factors to resistance, this climate of opposition must be addressed in order to move the bank forward. Further, the centralized structure of decision-making marks the employee perceptions of executive resistance to relinquish control over basic staff functions. Employees are not receiving adequate acknowledgement or support for autonomy in their positions, driving an attitude of self-preservation rather than that of contribution. This is leading to a high intention to leave the bank in pursuit of an external position and this concern with employee turnover can be traced back to the communication and feedback systems currently in place. Finally, the company focuses too much attention on the structural and technical aspects of the business and utilizes the performance management system to reward achieving quantitative targets, while dismissing customer service contributions. The external stakeholder thus receives inadequate attention. This problem can be traced back to internal mechanisms currently in place that do not promote a desire to excel in customer relations and will ultimately impact the bank long-term. Proposed Solution 1 The current methodology of authority as dictated by the executive leadership group requires the creation of a well-defined statement of intention and strategic mission for the Australian Regional Bank. Clearly, the opposition that exists within the senior-level group is created by opposing viewpoints and resistance to the dominating stance of the Chief General Manager. Establishing a mission profile which highlights a common goal for the bank will reduce self-interest and resistance to policies as promoting a singular path forward will create a sense of unity in the executive group and restore employee faith in the competency of senior leadership. Organizations with clearly established goals are viewed as better places to work, especially by individuals wishing to progress both financially and careerwise (Mathis & Jackson, 2003). Analysis of the leadership group, as well as the employees, points out a high turnover rate which is created by conflicting viewpoints and having no singular vision with which to apply focus. The Chief General Manager, having been granted actual authority for decision-making and the overall design of the firm, must utilize the competencies of his executive staff to draw out a strategic mission. A period of sessions with which all senior leaders are granted an opportunity to propose its design will establish unity in the executive group and diminish opposition after establishing this set of objectives. Steps to avoiding resistance include offering support and to start the commitment "bandwagon" early on (Gomez-Mejia et al, 2005). The bank's executive group must agree to dismiss the failures and misconceptions of the past and agree to work toward a common goal. Proposed Solutions 2 Decentralizing the command structure of the Australian Regional Bank should be noted as the secondary priority in rebuilding employee relationships. The staff members have illustrated vast degrees of technical competencies and senior leadership must reinforce employee value by promoting levels of autonomy in staff functions. The employees' resistance to restructuring changes is derived of poor feedback and communication, thus leadership must relinquish its rigid control mentality and provide a more streamlined performance management system which recognizes employee contributions to sustaining customer relationships. In order to make these changes effective, leadership must establish a more positive organizational culture by creating the space for new communicative interaction and safeguarding a credible and open process (Ford, 2005). Thus the implication is for a cultural change methodology that begins at the highest levels of authority in the bank. Employees were once celebrated for their commitment to achieving growth as an upstart banking organization, however, the centralized structure of command has diminished the employees' abilities to stretch the boundaries of their competency. Decentralizing decision-making within the firm begins with establishing a workable training program with an emphasis on customer relationships and then, upon completion of the program, allowing employees the freedom to become more active in process decisions affecting the external stakeholder. Recommendations It falls on the responsibility of the Chief General Manager to address the bank's need to design a practical set of mission objectives. His first priority is to offer acknowledgement of the previous division between his subordinate executives and allow the group to propose potential outcomes to a defined mission to be utilized as a unified focus. Successful projects are characterized by addressing the needs of employees, especially rewarding employees for change and innovation as well as effective project management (Smith, 2003). Within a period of two to three group sessions, the firm can map out a workable mission agenda. Further, to engage the employees in the process, the Chief General Manager should celebrate the efforts to establish a list of objectives by posting the efforts of the executive group and distributing meeting minutes to the staff members which highlight the activities of the executive group. This will ensure that employees are recognized and promote the strategic objectives to gain employee support from the beginning of the mission inception. Timely agreement to drawing out the mission should be celebrated, as well, amongst the contributing executives to secure a sensation of acknowledgement for their efforts. The decentralization of command authority requires a more extended timeline, as employee autonomy will be justified by the completion of customer-focused training programs. In planning instructional programs, leadership must examine the forces which drive the necessity for improved customer service. In the organizational planning process, a force refers to any influence acting in an organization such that the organization's state is changed by the presence of that factor (Schwering, 2003). Currently, processes are in place which create the duplication of activities and excessive redundancies in procedure. The force driving these wasteful duplications is the centralized command structure which creates chaotic, confusing, and non-motivated staff members who feel threatened by criticism and lack of acknowledgement for their competency levels. As part of the decentralization plan, executive leadership must involve the human resource function to aid in designing a more streamlined performance management system with controls in place that define the nature of reward for productive customer-based performance. Such a timeline to initiate both a viable training and performance management can be mapped out in one month. As with any change program, highlighting steps to secure the employees' interests by posting efforts at revitalizing performance systems will ensure a workforce that perceives security and stability. Management must remain a visible component throughout this transitional process in order to secure employee perceptions of managerial contributions to enhancing performance management policy. Conclusion The changes within the Australian Regional Bank require significant investment of the leadership group to the change program. Establishing a sense of loyalty and teamwork indeed begins at the top of the management hierarchy and must trickle down to the lowest levels of staff. The troubles experienced in terms of resisting change, perceptions of limited autonomy, and poor communication and feedback loops can be isolated and eliminated within a reasonable timeframe. The key is to draw the entire organizational staff back into a cohesive, productive unit by eliminating perceptions of confusion and doubt and replacing them with a more positive organizational culture. The decentralization of authority and creating harmonious teamwork philosophy begins with executive leadership, who must lead by example, in order to drive a similar method amongst the staff members. It is proposed that the external stakeholder, as well as those involved in the internal activities of the bank, will reap the rewards of a system designed to meet the needs of a challenging, contemporary organization. Bibliography Boles, Margaret & Sunoo, Brenda Paik. (Jan 1998). 'Three barriers to managing change'. Workforce. Vol. 77, Iss. 1, p.25. Croft, Lucy & Cochrane, Natasha. (Spring 2005). 'Communicating change effectively'. Management Services. Vol. 49, Iss. 1, p.18. Elving, Wim J L. (2005). 'The role of communication in organisational change'. Corporate Communication. Bradford. 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