Change Management : Managing a Merger for Regional Bank
Answer for Question no.2
By Lestian Atmopawiro
School of Electrical Engineering and Informatics
Bandung Institute of Technology
In managing organizational and workforce transitions we need to address main concern which need to be addressed, before delivering an appropriate solution. Consequently, after writer list challenges that have to be tackled, writer would like to point out solution to help ABC XY Leadership and the integration teams to carry out an effective transition.
Problem Solving Approach
In order to give a successful merger to ABC XY Bank, there are several steps that writer are going to apply in this problem.
– Defining key challenges
– Approach strategy to execute effective transition and a new way of working
– Strategy Execution
Defining Key Challenges
I believe that we have several key challenges in this organizational and workforce transition process, which is listed below :
– New job description in new merged bank
– New bank culture that has to defined, it’s very possible that former unmerged bank have a very different culture
– Approach to synergize merged bank’s employees
– Clarify the employees employment, in order to hinder the possibilities of diminishing workforce because of unclear situation between employees and bank itself.
– Approach to former consumer and new consumer in bank industry
Approach strategy to execute effective transition and a new way of working
Using Accenture’s Transformational Change Management Methods Framework pictured below,
In this framework, there are several steps have to be done in merger and acquisition process, mainly are dialogues. Dialogues are very improtant to establish an effective communication between employees, manager, and leadership team. The main idea of those dialogue is to ensure that worker can adapt to the impact that they get from the merger process and embrace the change within organization, so that the new merged bank can establish and develop a better performance.
In order to create a disciplined approach within organization1, there are few conditions that need to be met, which is
– Capacity for constant change, business leaders vision, commitment, and sponsorship
– Willingness and ability of employees to embrace change
– Program to support new business, such as :
- Human capital development model, to define bank needs and target management change needed. Organization assessment also needed to gather the bank’s ability to use human resource, then consequently give direction about change plans.
- Workspace solutions, program to establish workforce solution in the times of change, such as performance management, employee analysis, incentive, knowledge management,and goal alignment.
- Collaboration and simulation technology, providing an informational channel and tools to teach new users (employees) about how to work in new environment, what impact that they will get in daily work, and also how their effort contribute to bank’s performance.
In order to achieve approaches that have mentioned before, here is the step that will be taken :
– Create a Journey Management Office. This office has the responsibility to manage the organization and workforce management transition.
– Establish communication and define value management strategy, and also collecting capacity for constant change from bank leaders.
– Assess the real background condition from newly mergered bank, including the breakdown of main challenges that have described above, in ‘key challenge’ section.
– Apply Transformation Programs,
- Human Capital Development
- Align leaderhip role
- Align bank organization
- Align new business process
- Workspace solutions
- Align a new performance
- Align new culture
- Collaboration and simulation technology
- Align new technology and application
– Manage a stakeholder engagement
While applying change management, there are several things that need to be noted :
– Never collide different culture, if there is too many different culture principle. In order to achieve an optimal organizational performance, we also need high performing human resources. In practice, human capital is a person that greatly affected by company situation and culture. Hopefully, by doing an assessment into real condition of the both bank culture, via Accenture Culture Value Analysis for example, we can determine which culture can be used, or what new culture can be applied into new bank
– After ABC XY Bank have embraced a new culture, the next vital step is to create a strong organization in the bank, by creating a solid team. This is a process that Journey Management have to be focus on.
– Fair employment deal between all employees, to put a healthy and positive competition between employees, and also to keep key and vital employees within the new mergered bank.
– We need to complete the merger process as fast as possible, to reduce losses from company inefficiency because of unclear employee work, unclear organizational responsibility, etc.
In brief, there are few big steps that have to be taken in order to achieve successful organization and workforce transition,
– Defining key challenges in merger
– Approach strategy in merger execution
– Execute strategy based on assessment made, while taking important notes made in consideration
- Accenture. How can I improve my organization’s ability to adapt to continuous change?.http://www.accenture.com/NR/rdonlyres/63EE53BF-B5C1-42F5-9274-27FE9BB0FAA5/0/continuous_change.pdf
- Accenture. Transformational Change Management Method Framework.