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Organizational Change Management in Quantum Bank - Case Study Example

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The paper  “Organizational Change Management in Quantum Bank” is a comprehensive example of the case study on management. Organizational change management (OCM) is an essential framework and effort that arise to realign the organization structure, respond to the effects of new business processes and cultural changes in an enterprise…
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Organizational Change Management Student’s Name Course Professor Date Table of Contents Table of Contents 2 1.0 Introduction 3 2.0 Case Summary 3 3.0 Aspects of Organizational Change Management In the Case 4 3.1 Common Initiative/vision for change 4 3.2 Strong Executive Leadership 5 3.3 Educating Employees on how day-to-day work will change 8 3.4 Evaluation Plan 9 3.5 Rewards 11 4.0 Conclusion 12 References 13 1.0 Introduction Organizational change management (OCM) is an essential framework and effort that arise to realign the organization structure, respond to effects of new business processes and cultural changes in an enterprise. OCM centrally focuses on people within the organization by applying a systematic approach to promote new relations, behaviors, skills, setting new expectations and proactive communication. OCM is geared forward by specific objectives to facilitate right information and promote a higher likelihood of stakeholders to buy in despite the initial discomfort associated with such a change. This report covers a case study involving Quantum Bank and how it took OCM. It will illustrate some aspects that facilitate a successful OCM as highlighted by Rouse (2014). There are five core aspects that should be reflected by OCM strategy. First, stakeholders should agree on a common purpose or vision for change and separate it from competing initiatives. Secondly, to communicate the vision, strong executive leadership is essential part of the process to sell the business case. Thirdly, a strategy should e set t educate employees about the changes to be effected in day-to-day operations. Fourthly, a concrete monitoring and evaluation is necessary to, with follow-up plans to measure the success of change and address unsuccessful issues. Lastly, the strategy should reflect reward in terms of monetary and social outcomes to encourage individuals or groups own new roles and responsibilities. 2.0 Case Summary The Quantum Bank Inc. is an American-based bank with branches throughout the southeast of U.S. In 1999, Quantum launched its Website to offer their customers an opportunity to check account balances, obtain various services and information and send questions using emails as well as link a variety of useful information. Majorly, it desire to revolutinalize its services was a proactive attempt to face competition in the industry. In turn, the case focuses on roles and responsibilities, training and communications plans as well as continued evaluation and coordination of change activities. The change that was triggered by the need to offer various online services, reflect a lot of aspects that pertains to OCM as analyzed. 3.0 Aspects of Organizational Change Management In the Case 3.1 Common Initiative/vision for change Quantum decided to change the traditional approach to delivery of services to customers. In turn, they would allow customers to have a real time access to services through the online offerings. The bottom line of the change was to aid an objective of the bank to expand its geographical area and market of operation. In turn, the Web site was to expand its online services over time and include other online services like payment, application for credit cards, loans, opening accounts and management of investment portfolios. According to Buchanan (2013), a vision promotes corporate sense of being and enduring purpose. It transcends day-to-day issues as it provides meaning in present and future. In turn, it encourages and empowers both leaders and followers to act towards or implement change. Change must e necessitated by a reason. It is pervasive and a fact of life in almost all organizations (Mantere, Schildt & Sillince, 2012). The impetus for change comes from the environment. Strategic leaders’ works in strategic environment where they continuously understand change and takes it as a continuous process. Environment can be both internal and external and the role of strategic leaders is to understand why the changes in the environment imply the need for an organization to change and when it does not. In most cases, reactive change realigns the internal changes to accommodate the external ones. However, strategic leaders try to balance both proactive and reactive changes by crafting and managing strategic visions. First, change focuses on survival and enables organization to prosper in complex, volatile and complex environment. Powerful forces pressurize organizations to alter its policies, structures and practices. Day (2012) noted that globalization is an example of pressure that demand skills and increased communications problems. The vision in Quantum Bank majored on Information Systems which would require an internal project manager in place. The strategic importance of the project led the Vice-president to prefer staffing the project internally rather than consulting various firms that specialize in such projects. In turn, the Vice President identified two finalists from a list of ten or so people who would lead the desired changes. To break the case further, the idea to leverage new opportunities by extending the geographical area of operations by Quantum would be facilitated by communication. Information Systems emphasizes on communication within and outside the organization. A major aspect of OCM; a vision, is demonstrated well to aid for the initiation of change. 3.2 Strong Executive Leadership Stacey was the then Vice-President Information Systems in Quantum Bank. She is revealed in the case as a decisive leader with clear focus on change, the requirements, planning, communication and coordination. Hendy & Barlow (2012) observes terms such leaders as enthusiastic prospector as they continually perceive change and uncertainty in the environment, experiment with potential solutions to trends to ultimately lead the organization to prosper over the long run. Hers is planned change in order to maintain the Bank’s relevance in the face of global pressure. According to Buchanan (2013), communicating a vision is all about influences among mind-sets, speech and behaviors. Communication efforts help people shape language to have a consistent message. As people use similar words and symbols, it becomes possible to move towards a similar direction. Stacey explored an imaginative way that would help her talk about change in Quantum and make them more connected to try to achieve the outcomes. She referred to change as internal project. In turn, she expanded the target audience to crystallize the change. As a strategic leader she identified Bill Fence, a computer science graduate and Andy Dover an MBA holder with Civil Engineering undergraduate degree. As it was discussed above, strong executive leadership is meant to communicate vision and sell the business case that delineates change. Communication phase seeks to expand the discussion and gain a greater clarity for an issue by getting key people to talk and communicate about the issue (Battilana & Casciaro, 2012). In turn, leadership builds support and gradually people in the organization realize that change is imminent. The expectations developed help to understand that the problems will be solved; things turn better as procedures changes. However, at this point there are few specifics that can give a complete picture of change. Buchanan (2013) observes that, leaders alert the organization by use of specific terms. At some point, after leaders have studied the issue and build support for change inside the organization, they make formal announcement having planned and timed it to achieve maximum effect. A leader can use various ways to communication; speech to BOD, distribute pamphlets, presentations or informal discussions. Stacey identified the agents of change by settling on Bill and Andy as the best internal managers that can facilitate change. The two would help build support as Bill is indicated as having exposure to a variety of areas in the bank. He had a reputation of ability to solve difficult and technical problems with users of various computer systems commenting that he was service oriented and would describe concepts in simple non-technical terms. He had technical knowledge in hardware and ability in programming. On his part, Andy he was involved in different management training programs in the bank. He had successfully carried out several encoding operations and implemented several process improvements. In his performance evaluations, his strength was noted as being able to step back from a problem in order to decipher how various issues are interrelated. Quantum Bank Organizational Change Management New Roles for OCM in Quantum Bank: Adopted from The Quantum Bank Case. 3.3 Educating Employees on how day-to-day work will change Langley, Smallman, Tsoukas & Van de Ven (2013) argues that, education seeks to promote or avail information and accurate analysis. It cites the relevant skills beforehand. Through up-front education, employees are prepared and see logic in change effort. Education serves to halt the unfounded fears concerning the effects of change to individual and groups. Change comes with adjustment problems and the only way to curb the problems is to support the employees to face the difficult times and transition period. When employees are feeling skillful and ready for change, they likely buy into change. The role of education largely falls on Andy who had strong organizational skills. He would present information effectively and often requested to make short presentations in relation to a particular project status to executive management. Andy was able to communicate regularly with project team members keeping them abreast of project’s progress. He is noted to be passionate about ideas and highly able to get buy-in from team members for his ideas. Furthermore, he is noted to be a planner who stays abreast of trends in technology. His basic understanding of how Internet works and knowledge of various buzzwords allowed him to explain and teach other team members. Bill current position as a Webmaster involves the maintenance of the bank’s website. The staffs that fall under his jurisdiction include a programmer and hardware specialist. It is noted from the case that Bill has developed a good rapport with the two direct reports. In turn, they have emulated much of his style. Although he has immediate assistance from the two staffs, Bill is noted to be strongly involved in technical aspects of the site. The two staffs also work long hours similar to their senior. 3.4 Evaluation Plan The evaluation in Quantum project is reflected in the process of deploying change. Bill is noted to have worked alone on the project. However, he had frequent meetings with the director of Information Systems in the bank. The director supervised the project. There was distinct division of responsibilities with director carrying much or design work while Bill was responsible for computer programming. In the process of collaborative change, Bill often proposed various and alternative ways to incorporate key features into the bank’s website. The director would evaluate the options suggested and identify the best to integrate in the system. Towards the end of the project, Bill actively proposed the features to include in the site. On the other hand, Andy is noted in the change process as involved in often requested to provide short presentations in relation to project status to the senior management. According to Langley, Smallman, Tsoukas & Van de Ven (2013), change can become complex and can be impeded at implementation stage. Part of the reason has highly to do with the behavior and style of organizational leaders. Complex and greater sized organizations highly face challenges at this phase as senior executives might be less inclined to participate with their subordinates and have a formal, step-by-step process for a long-term plan. The major role of a leader during implementation phase of a change is to provide information downward to the last detail of plan completion. Visionary leader keep the people concerned informed about the areas that should change and give a reason to further more changes and show the way actual change will be implemented. According to Battilana & Casciaro (2012), periodic information briefings concerning the status of any change should be a central aspect in the plan for change. In the process of change, people should be involved in the decision making process particularly in areas that affect them. When people participate in decision making, they get a sense of commitment to change. Another important point noted is that the project completion aligned to the set budget and time. It also considered the changes in scope that would be made as the project progressed. There were a number of suggestions put forward as a way to extend the site’s functionality. However, they were to be tabled once the site was launched officially. According to Hendy & Barlow (2012), scheduling change promote the success of a change process. People waste less effort once they are aware of when to start doing one thing and when to stop. They are also less frustrated and tend to continuously anticipate change and implement it accordingly. Implementation success also results from support from the top executive where strategic leaders demonstrate their concern and commitment to change. They act as key spokes-persons in the change process to offer incentives for change as well as embody change. Mantere, Schildt & Sillince (2012) reflects on the need for consolidated improvements where occasionally in the change process, there should be a period where the people involved in the change pauses to review what has happened and what is happening. In turn, they can realize the needs for revision of part or whole process or move on to greater heights of progress. Mantere, Schildt & Sillince (2012) argues that, past success is essential to promote greater wins and particularly if a leader consolidates the improvements and recognizes the people behind the success of change. 3.5 Rewards The final phase of OCM focuses on encouraging individuals or groups that have facilitated change to take ownership for emerging roles and responsibilities. In this case, the aspect is demonstrated well by how Bill ended up taking a current position as Webmaster. He was in charge of maintenance of the Bank’s Web site. He also oversees and coordinates two other specialists who work under him. Andy is indicated as communicating regularly during the project process though his role after the project is not well demonstrated. According to Battilana & Casciaro (2012), for a change to last, the requirements for advancement and promotion in an organization should be in a manner consistent with the vision that facilitated change. Succession decision after change can undermine the effort geared for many years toward change. Another way to institutionalize change arises by an attempt by a leader to show others how change has increased the organizational competitive advantage and improved performance. In turn, a leader should communicate to help people see connections of greater efforts they have employed and improvements. 4.0 Conclusion Organizational change management is a process. Change goes beyond having a mere vision and it has to do more with implementation. However, to make change effective, it requires a critical scanning of the internal and external environment to make clear estimations of the situation and determine the direction to be adopted by the organization. In turn, the leaders of change must be aware of organizational culture to promote education; training and communication as a way of leveraging that culture and help with change. These actions are taken beforehand. The success of change implementation highly depends on organizational executive and existing leadership style. Core participants should be involved in the decision making process, and in the continuous process of assessing change. As change is inevitable and continuous, the leaders should indicate promote ownership of the outcomes of change. All the above aspects of OCM were clearly demonstrated in Quantum Bank case study. References Battilana, J., & Casciaro, T. (2012). Change agents, networks, and institutions: A contingency theory of organizational change. Academy of Management Journal, 55(2), 381-398. Buchanan, D. (2013). Getting the story straight: Illusions and delusions in the organizational change process. Tamara Journal for Critical Organization Inquiry,2(4). Day, G. S. (2012). Aligning the Organization with the Market. Reflections on the Futures of Marketing. Hendy, J., & Barlow, J. (2012). The role of the organizational champion in achieving health system change. Social Science & Medicine, 74(3), 348-355. Langley, A., Smallman, C., Tsoukas, H., & Van de Ven, A. H. (2013). Process studies of change in organization and management: unveiling temporality, activity, and flow. Academy of Management Journal, 56(1), 1-13. Mantere, S., Schildt, H. A., & Sillince, J. A. (2012). Reversal of strategic change. Academy of Management Journal, 55(1), 172-196. Rouse, M. (2014). Organizational change management (OCM). TechTarget. Accessed [25 April 2015] from http://searchcio.techtarget.com/definition/ Read More
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