Today, The Royal Bank of Scotland (RBS) is one of the biggest banking institutions with its capabilities to provide world-class services whilst maintaining its reputation as a top financial services provider in the banking industry. Its leadership in this market is remarkable, and so are the ways the bank’s governing body has been able to manage the complexities, challenges and changes that come with the industry. Understanding that the Royal Bank of Scotland (RBS) has recently undertaken a series of changes, this report provides an outlook of the approaches RBS has taken to manage those changes. This report also includes the assessment of the success that RBS has experienced with the implementation of those changes. The implication of this approach and changes made on the part of RBS are also provided.
A. RBS has undertaken a series of changes in recent years. Describe the approach they have taken to manage change and evaluate the success of these changes. Why has RBS developed such an approach?
The Royal Bank of Scotland (RBS) has been a leader in the provision of financial tools and services in Europe since 1727. RBS has established itself as a pioneer of sustainable business restructuring and decision-making, which has helped it to maintain a competitive advantage in the industry. For a long period of time, RBS has been able to manage and cope with economical climate changes, but with the recent global economical recession and the challenges it has proposed, RBS has had to implement new policies and restructuring to its business in order to manage market uncertainty. This means the bank needs not only developing elemental management approaches, but also including leadership innovations in its business structure to ensure adaptability to change. As part of its ability to take the lead in its industry, there were various essential moves RBS attempted to initiate in order to promote high level of achievement for its set goals and in order to achieve the required change for it to be able to be on top in its industry. Therefore, there is no other definite move that RBS should demonstrate than to ensure emancipation of change as it tries to formulate actual effort to address the changing needs in the industry for financial services. After all, to ensure high level of leadership, coping with change is necessary (Kotter 1998). No one could contest the fact that major organizations providing financial services have to initiate change, and not doing so would only lead to their disadvantage in the future. The RBS has undertaken a series of changes in recent years. In this report, the proponent tries to describe the approach that the bank has taken to manage change. The proponent also assesses the success of these changes. Part of this report is an explanation on why RBS finally made the kind of approach it has undertaken recently. RBS Approach
As a leading financial service provider, RBS does not only ensure the achievement of higher revenue for its offered services, but above everything, profitability. To guarantee certain level of profitability, there were important trends RBS initiated for years. These include the following: * Differentiated offerings through diversified customer segments. * High level in coping with change and complexities through creation of management roles and organizational structures. * Strong support for the human resource.
* Quick adoption to external changes.
Market segmentation strategy is made possible through segmenting customers into retail, commercial and corporate. The good thing about this strategy is making sure of maximizing opportunity for RBS by providing to various needs of its target customers to end up with sustainable operation. As a result, RBS has finally succeeded today in providing personal, private, business and corporate banking experience for diverse customer segments particularly in the...