Essays on Change Concepts and Theories to Lloyds Banking Group Assignment

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The paper 'Change Concepts and Theories to Lloyds Banking Group' is a wonderful example of a  Management Assignment. In the contemporary business environment, organizational leaders are confronted by unprecedented change in respect to global communication, globalized competition, changing customer demands, and quantity, type, speed, and span of change, which affect their performance results (Pryor et al. , 2008). Additionally, organizational leaders have to project and make critical decisions regarding future changes, whether in the short- or long-term. Therefore, because of complex and constant change in today’ s business environment, an organizational leader who reacts fast and conscientiously is bound to be successful (Pryor et al. , 2008).

This can be ensured by using relevant change management models or theories In the case of Lloyds Banking Group in the United Kingdom, the company’ s chief executive reacting to changing insurance customers’ demands by introducing Business Process Management (BPM) system to automate claims processing. However, he was uncertain about the forces that restrained change. Employees also lacked the overall vision of improving performance and were uncertain about their future work with the organization’ s insurance unit was claims processing was mechanized.

This led to resistance change. This report discusses how the company can effectively change to BPM using Lewin’ s Change Management Theory and Kotter’ s 8-Step Process. Topic: Introducing BPM at Lloyds Banking Group As a major commercial bank in the United Kingdom, Lloyds Banking Group also provides specialist insurance services to individuals and businesses in the country (Lloyds Bank, 2014). In the typical everyday insurance business, Lloyds Bank’ s brokers bring business to the market in support of the clientele and shop around to determine an organization that can cover their particular risks.

Afterward, the company’ s members underwrite insurance to the businesses. While an insurance policy would not eliminate a risk, it offers the clients with a level of security in case an accident happens. The company ensures complex businesses, including airlines. Recently, contemporary business threats like climate change, terrorism, and political instabilities have underscored a need for the company to always be responsive and futuristic in its endeavors. Lloyds Bank’ s office in London was supposed to change its manual practices to ensure that claims could be processed into a technology-driven process.

The company chief executive Antó nio Horta-Osorio was compelled to inform employees how he would push for greater efficiency. Claims settlement and Underwriting are the most significant functions of the company. In the highly competitive insurance market, speedy claims settlement is the main differentiator that puts insurers in the front position as an industry leader. Hence, Lloyds needed to enhance the operational effectiveness of its claim organizations and to cut costs linked to the handling of claims. The traditional methods of processing claims involved significant amounts of paper and manual work that caused significant delays.

The company needed centralized management to facilitate processing of policy and claims documents of customers who are geographically dispersed. As a result, Osorio decided to procure Business process management (BPM) to automate claims processing. Osorio started by offering information context regarding unsatisfactory operational processes. The manual claims process was particularly inefficient as it was less responsive to customer claims leading to poor customer service. While addressing employees in the change process, Osorio failed to create a need for change. Ultimately, the employees did not share the same perspective regarding the efficiency of the claims process.

Indeed, employees lacked the overall vision of improving performance. Employees also mistrusted BPM and considered to be a cost-cutting measure intended to lay off workers. Employees were also uncertain about their future work with the organization’ s insurance unit was claims processing was mechanized. Most of the employees who were used to the traditional claims process shared a feeling that they were on the verge of losing their jobs and possibly retrenched in case an automated process was implemented.

References

Hayes, J. (2002). The theory and practice of change management. New York: Palgrave Macmillan

Lloyds Bank. (2014). Scottish Widows plc and Clerical Medical Investment Group Ltd. Retrieved from http://www.lloydsbankinggroup.com/globalassets/documents/investors/2014/fitch_sw_2dec2014.pdf

Lunenburg, F. (2010). Approaches to managing organizational change. International Journal Of Scholarly Academic Intellectual Diversity, 12(1), 1-9

Mento, A., Jones, R., Dirnorfer, W.(2003). A change management process: Grounded in both theory and practice. Journal of Change Management, 3(1), 45-59

Pryor, M., Taneja, S., Humphreys, J., Anderson, D. & Singleton, L. (2008). Challenges facing change management theories and research. Delhi Business Review, 9(1), 1-20.

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