NZDB 605: Change Management and Leadership
Assessment Instructions
This research-based case study is based on the following learning outcomes;
- LO1. Critically Analyse change management concepts, theories, models, issues and challenges within organizations.
- LO2. Research and evaluate solutions to change management issues and challenges within an organisation.
- LO3. Examine the role of communications and leadership within the change management process.
- LO7. Evaluate appropriate leadership styles and required ethics, professionalism and socially and culturally appropriate behaviour for leading and implementing change in different scenarios within an organisation.
Assessment Task
Case scenario
Background
Kiwi bank Limited (“Kiwi bank”) is based in New Zealand and was incorporated under the Companies Act 1993 on 4th May 2001. Kiwi bank was registered as a bank under the Reserve Bank of New Zealand Act 1989 (the “RBNZ Act”) on 29th November 2001 (Kiwibank, 2017). The Kiwi bank was established to serve a public interest in terms of offering lower fees, accessible banking to public, and to compete in an uncompetitive market dominated by four Australian banks. Kiwi bank challenged the oligopoly at that time pressurising the profit margins of these banks (The Green Party of Aotearoa New Zealand, n.d). Kiwi bank pursued growth and market share with better lending and savings rates and the government then injected more capital, enabling the bank to grow faster and squeeze the interest margins in retail banking which led this to the bank providing money to domestic borrowers instead of offshore bank dividends. The next step for the bank is to become an urbane commercial bank to compete away excess margins in the business lending sector (The Green Party of Aotearoa New Zealand, n.d).
Re-structuring in 2014
In 2014, Kiwi bank underwent its first major bank-wide restructure since it was established in 2002 (Wellplace.nz, n.d). The purpose was to improve the efficiency, while removing duplication, reducing the costs, and aiming to meet a competitive market to meet the customers’ needs ( Vaughan, 2014). This required a new direction and a mindset and culture change as the restructuring included reapplying and/or redundancy. At the same time, when teams and relationships were re-formed in the process, there were stresses on people and uncertainty for those long-term employees ( Vaughan, 2014). To actively support employees through the change process, Kiwi bank initiated strategies such as involving employees in the design process, resilient workshops, and supporting leaders to support their people. Employee Assistance Programme services were made available onsite for the affected people who took the opportunity and the results were positive (Wellplace.nz, n.d).
Changes in 2018
Following a reshuffling of shareholders, a number of changes took place in Kiwi bank. First was the news of appointment of an experienced treasurer and former bank Chief Economist, Tim Main as the Banks Treasurer. He has considerable experience as the Treasurer of BNZ, Australian Region Treasurer, Head of Balance Sheet Management for National Australia Bank, and Treasurer and Chief Economist of ANZ NZ. Main joined another recently appointed Senior Economist, Jarrod Kerr in the banks’ Auckland Office. Kiwi bank appointed former ASB Executive Steve Jurkovich as its new CEO. Jurkovich, has considerable ASB’s corporate, commercial and rural banking sector, and succeeded CEO Paul Brock. Brock left after Kiwi bank decided to close out the former IT Programme, Core MoD core banking system upgrade. The decision to stop the IT project came after the NZ Super Fund and ACC bought into Kiwi bank, taking a combined 47% stake (Hargreaves, 2018). In an interview in August, Jurkovich said;
“I think the place (the bank) needs a shot of energy. We need to ask ourselves: Are we really about the customer? Could we do more for small businesses and home buyers? We need to be much more open and transparent. Customers want evidence that they are getting a fair deal”.
Jurkovich faces two huge challenges; to increase Kiwi bank’s capital base which will help them to compete with the big four Australian banks, and sorting out the IT crisis that saw a new system abandoned and the bank forced to write off $100 million (Jennings, 2018). The changes in the banking sector in New Zealand in demographics, technology, consumer behaviour, Asiafication, the impact of an interventionist Government, and a subdued macro economy are also challenges facing Kiwi bank and these require 3 change management plans (PWC New Zealand, 2019).
These professionals have brought in a wealth of knowledge and experience from the sector and had numerous challenges ahead of them to drive the changes in Kiwi bank. In order to do the restructuring around the changes such as; new technology and improvements required for Kiwi bank, the bank has appointed Alaina Lamacraft as their new People & Practice Leader – Business Change Management who is passionate about driving this change. The Kiwi bank has advertised for two Change Managers who are enthusiastic to drive these innovative and revolutionary changes (Linkedin, 2019). They are required to have these specifications;
- designed and delivered organisational design initiatives;
- managed portfolios of change initiatives ensuring they are coordinated and generate the right outcomes;
- supported business change capability development to help increase change maturity in growing organisations.
- Assume that you are one of the Change Managers appointed to the position either in Wellington or Auckland based roles and you are required to research on the current challenges and issues in the industry facing Kiwi bank and how to introduce these changes to the organisation by recommending appropriate leadership styles to be followed. The research you conduct must be produced in the form of a technical business report.
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Your Task
Your task is to conduct research on industry and Kiwi bank New Zealand to discuss the questions and topics highlighted in the following table. Students will apply the principles and practices of change management to resolve the issues and challenges and recommendations to ensure the effective and efficient change management process of the organisation. Students are required to read the case study and then conduct independent research to analyse and discuss the following questions.