National Australian Bank: Cultural Change Program - Case Study Example

National Australian Bank: Cultural Change Program Name Course Institution Date National Australian Bank: Cultural Change Program Introduction This report is about the case study provided which deals with the issue of organizational change in National Australian Bank. The cultural practice inherent in the bank has been highlighted in line with the scandal that befell the bank. There is a portrayal of a link between the cultural practices that were adopted by the bank and what happened latter on. The scandal that faced the bank was an awakening on its approach to various issues within. The bank had to go through a change program with the focus of redefining its approach to meeting customer needs. This basically revolved around changing the overall public image by redefining how work is done in the bank. Change Management Theories There are a number of change management theories that have been discussed by different academicians. One of the change management theories that have been highlighted is the Kurt Lewin’s Change Management Theory. In the implementation of change in this bank, the Kurt Lewin’s theory has been applied. In every organization, culture is perceived through the unique approach to issues of corporate governance. Each organization establishes itself in a particular manner in relation to handling certain issues inside the organization (Carter 2008, p. 22). Consequently, such approach influences service delivery to customers as well as interaction with other stakeholders in the organization. Moreover, the approach used by the leadership especially when dealing with employees conveys much about the culture of the organization. The leadership of NAB in relation to handling particular responsibilities within their domain communicates much regarding the same. Strengths & Weaknesses of Cultural Perspectives The first perspective of the theory of culture is integration. This is the perspective that prevails upon consensus across the organization. One of recognizable strengths of this perspective is its consistency. Unlike other perspectives, this perspective has been noted to be very consistent. What the perspective postulates in connection to culture across within a collective is the same. On the other hand, this perspective leans so much on conformity. There is high degree of conformity with prevailing practices. This can be very challenging when dealing with the issue of organizational change. The differentiation perspective of organizational culture views culture as a combination of individual cultures in an organization. This perspective criticized on the grounds of inconsistency. Indeed the perspective portrays inconsistency with various manifestations in various groups. The issue of inconsistency has often been the main source of disagreements and conflicts that are associated with this perspective. It brings out confusion when defining relationships in the setting of a group. An advantage of this perspective is the fact that it has a strong subcultural understanding. The perspective clearly defines cultural affiliations at the subculture level. The ambiguous perspective is very unique indeed. This perspective brings into focus the issue of embracing differences among members of the group. Through this perspective, it becomes clear that in most cases it is almost impossible for all people to agree towards a particular course. One of the strengths of this approach is the fact that it is real in its approach. The fact that this approach does not embrace collective conformity has been termed as the basis of inconsistency. This indeed has been used to imply it to be its greatest undoing. Kurt Lewin’s Change Management Theory The Kurt Lewin’s theory of organizational change encompasses three main steps. The first step is the freezing step. This is where the organization is made aware of the need to embrace change with respect to a particular course. Since people love the status quo, resistance is expected at this stage (Naeem, Aslam & Muhammad 2013, p. 21). People will use every means possible to fight the proposed changes. That is the point where the driving forces will meet the restraining forces in the bid to ensure each side’s demands are met. At the end of it, the force that happens to be stronger will carry the day. After the freezing stage, the next stage is embracing change/ moving on/transition. When the organization moves on, it shows that people have given in to the driving forces for change. Many things will have taken place in the organization at this stage. For instance, some employees may have been forced to quit the organization. The last stage of this change model is the refreezing (Naeem, Aslam & Muhammad 2013, p. 18). This is when individuals have embraced change already. New ways of carrying out duties in an organization would have been embraced. This organizational change process has been replicated in NAB very clearly. After the scandal, the organization had to go through a change process in order to gain the required momentum to appeal to more customers. The employees had to embrace the reality that the image of the organization had been tainted after the scandal that almost ruined the bank completely. Due to this, these employees had to get used to new approaches to dealing with issues in the organization. During the process, key employees left the organization. Such employees are some of those who could not fit into the new design of the organization. After that, the new approaches to work in the organization were instituted by the new CEO. These included moving to the new offices where all employees were to discharge their responsibilities. These changes were followed by rebranding strategies. Cultural Change Perspective at NAB From the approach used by NAB in implementing the change after the scandal, this organization based its approach on integration perspective of culture. In designing the new organizational outlook, the organization embraced uniformity in almost all areas. Through the new approach, the organization wanted the customers to feel how valued they were through their new dedication to service delivery. The guidelines were provided on how to undertake the various responsibilities in the organization. The organization focused on promoting management programs that will allow effective communication across the organization. For instance, the decision to transfer the offices of all the employees to one building was a move of its own. The organization demonstrated its commitment to transparency. Based on what the organization did, it is easier for the customers to have an idea of the organization’s efforts to ensuring transparency. This was a very good move for the organization. Another way which shows that indeed the organization adopted the integration perspective is the nature of the new business strategies. The complete rebranding of the company through the change of its brand logo was very critical. Moreover, the business tried to reflect that through the newly designed mission statements. It is said that the aim of these mission statements was to create a physical manifestation of the bank’s culture. The mission statements revealed the priorities of the bank. Such priorities would definitely begin with customer satisfaction as the bank undertakes a rebranding mission. The focus of the organization was slightly shifting with time. The organization was concerned more about its reputation as a whole (Furtado& Fadil 2012, p. 290). All these changes point to the integration perspective of culture. From what has been instituted in this organization, it shows that culture can be measured using some metrics. The focus upon the reputation of the entire organization addresses the issue of consensus in the organization. It is through consensus that the organization wants to be viewed by the public as having good reputation. Future Recommendations The organization so far seems to have gained some new grounds in its rebranding move. It is good for the management to understand fully the economic value of corporate culture to an organization. The image of the organization is a reflection that customers get to be the real organization. Based on the importance of the brand image, I would advise the management to invest more resources in building good reputation for the bank after all that happened. More emphasis ought to be directed at the bank’s marketing unit. It is the marketing unit that sells the brand of the organization to the public (Dev. 2013, p. 10). More so, the bank must shift its main focus from profit making to customer satisfaction. The CEO ought to understand that investing in customer is never a loss. In order for the image of the organization to be preserved for the benefit of the business entity at large, there is need to inculcate that even in the employment policy. Let every new employee understand the priorities of the organization. The company ought to communicate the importance of prioritizing the customer to the new employees. Through this, the company will build a brand image that will take the company very far. All this is about the organizational culture. This actually demonstrates how powerful culture is on an organization. Conclusion Many theories have been advanced regarding organization culture and change. This is because these two aspects matter so much to an organization. In essence, no organization can exist without the two aspects. Change occurs to every organization as it faces new challenges and opportunities its growth path. On the other hand, the issue of culture speaks much about the overall organization. NAB is on the right path in trying to rebuild the tainted image. The message being passed across is that this is a reformed organization with the past completely gone. This is true all other organization that happens to have gone through the same ordeal like NAB. References Carter, E 2008, Successful Change Requires More Than Change Management, Journal of Quality & Participation, vol. 31, no. 1, pp. 20-23. Dev., S 2013, Assessing and Understanding Organizational Culture: Various Views and Theories, Indian Streams Research Journal, vol. 3, no. 5, pp. 1-11. Furtado, B. & Fadil, P 2012, The Four Faces Organizational Culture, Competitive Review, vol. 22, no. 4, pp. 283-298. Naeem, A., Aslam, K. & Muhammad, F 2013, Change Management Process and Activities Impacts on Organizational Performance: A Case In Perspective Of Organizational Culture, Journal of Psychology & Business, vol. 10, no. 1, pp. 10-24. 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