Manging Change at
Manging Change at
1. Explain some of the triggers of change in ANZ
Australian and New Zealand Group Ltd (ANZ) is one of the five largest leading companies in Australia. It has more than 700 branches in Australia with 34,000 plus international employees.
The Australian Banking Industry has undergone considerable changes when the Federal government deregulated the industry in 1980’s. Previously, it was highly conservative and protected with a public service culture. ANZ had to adapt to new changes of deregulations.
Due to mergers and acquisition in Australia, from 1960 to 1980, 12 trading banks dwindled to 9. After deregulations and issuing new licenses, the numbers escalated to 34. Subsequently, new competitors emerged in home mortgage industries and banks, which operated on a low cost framework. Hence, the banks were unfamiliar with the new pressures (Wood, Zeffane, Fromholtz, Wiesner, Creed, Schermerhorn, Hunt, Osborn, 2010).
Regarding the change in ANZ, deregulation sparked it off which presented significant challenges for ANZ and other banks in the industry. According to Lewin’s three phrase of planned change, phrase one - where they create a felt need for change by disconfirming their current attitude and behavior caused by environmental pressure (Wood, et al., 2010).
When such changes are imposed, organizations become prosperous. Therefore, ANZ was keen on implementing extensive changes to remain successful.
On the whole, usually imposing external forces for changes leads to reactive changes. Sometimes even changes required by legislation are forced upon. Even though, there were no legislative changes imposed on ANZ, however, it had to change to survive the competition.
Notably, due to tough market conditions, ANZ chalked up bad debts due to several years of poor performance. To overcome this situation, ANZ’s essential focus was on cost reduction and adopting an aggressive approach in seeking new businesses.
So as to overcome the financial crisis and excessive competition, ANZ has to implement a change program.
2. Analyze and describe the change strategies adopted by ANZ The Australian Banking Industry had undergone considerable changes when Federal government deregulated the industry in 1980’s. Deregulation led to high competitiveness in the banking sector as the number of trading banks rose. In general, deregulation presented significant challenges for ANZ and other banks. To survive this competitive environment, ANZ adopted many change strategies. The key reason for change focused on cost reduction and seeking new business. 75% of change programs failed, as employees are not engaged in it. Hence, it is a worrying problem. So as to bring an “across the border” change in employee mindsets, ANZ initiated Perform, Grow and Breakout cultural change program in 2001. By 2008, more than 30,000 employees had participated in it. The first breakthrough participants were CEO, business heads and senior staff. This is a normative-reductive strategy, which attempts to “bring about a change by establishing values and assumptions to support for the change that emerges naturally,” (Wood, et al., 2010). ANZ employed external consultants, McKinsey & Co., to analyze the organization’s culture. The analysis revealed a gap between the bank’s perception and employee’s personal value. To bring about cultural changes, the bank built engagement at both top and bottom levels of the organization and then meeting in the middle. Besides, bringing about cultural changes, ANZ implemented structural changes. Previously, it had a bureaucratic structure, which restricted the flow of information. In addition, ANZ measured its financial and operating results against Australia’s highest performing organizations. To set this benchmark, the bank set up its performance, ethic and value assessment survey. The bank measured its success...