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Your assignment
Repeated news which tarnished the reputation of Banks make our leader Antony
jenking to introduce a major cultural change program in 2012. The program names
Project Transform. And three years down the line the media is still debating whether
the program has achieved all its objectives or not.
Before diving into the details and taking any side in debate I would take opportunity
to critique the idea of debate itself. Do cultures change overnight? Can we change
the thought process and work methodologies of thousands of employees who are
accustomed to one working style by mere declaration of new vision and value
statements? For Barclays, there has been more than mere declaration, there is a
constant reporting about achieving the value statements and monitoring of our
progress towards becoming the Go To Bank.
The five core principles on which the culture change program is based on are :
Respect, Integrity, Service, Excellence and Stewardship and there have been a
number of traning programs to explain all these values to the employees and the
reporting tools been amended to ensure that Barclays is living upto its values.
Three years down the line, we have managed not to get into any new controversy
but is that due to our culture change or due to the very strict regulations imposed
such that the Banks are not even allowed to enter into any risky business. But have
we won the hearts of people of society wherein we are operating or they still hate
us and feel we are the ones who play with their money to make profits for
ourselves.
Why are we unable to change the face of Bank, where are we lacking ? are our
values not clearly defined or are our employees not accustomed to live upto those
values ? maybe a bit of both. The Transform project was launched with a much of
fanfare and during the days of despair the perfect ground setting for a major
revolution. But was it delivered with such a force to make a strong impact on
workforce of thousands of employees. Maybe not and the results started to come in
only when the reporting mechanisms incorporated specific monitoring on the
progress of citizenship tasks.
I would first point out a shortcoming of the online learning system, wherein Barclays
uploaded very well designed course to instill the ideas of citizenship in the minds of
all employees . But if just online courses could change the mindset of employees
then the whole of educations sector would cease to exist. The online courses can
act a a good refresher but to bring a change in mindset we need a vibrant instructor
who lives the values himself and can advise all how the values bring a change for
betterment of all.
I would quote example of project citizen SBI launched in 2008 by then chairman OP
Bhatt. During the time of financial crises when all banks were reeling under pressure
from liquidity crinch and falling profits, he took advantage of situation and in a quick
flash energized the workforce of more than 200000 employees to achieve
excellence in customer service. The citizenship SBI course was delievered through
in person classes and that brought a huge change in mindset of the employees
whose dedication level increased many folds.
Next, I would like to comment on the benefit package. There is a move to switch
from Bonuses to the fixed package structure to comply with the regulatory
requirements and also the demands of society but we need to analyse that such a
big direct impact on the expectations of employees can
One issue being faced by the banking industry is the regulatory requirements which have
shrunk the profit margins and there is a need to innovate and reduce costs. I dont believe
why even in today world people believe that laying off employees is important to cut costs
and improve margins. Who gets laid off?
1. First to leave are the best achievers. They can manage another opportunity. They
quit.
2. 2nd are the rebels. Who concern about the organization and are never willing to
compromise. They cannot be a yes man and often pinch their supervisors.
3. The underachievers who create inefficiency in system are just a small minority .
Infact a majority of underachievers have better chances of survival because :
1. Their survival skills are good. They are surviving in the organisations for a long
time so they know how to obviate the risk of being laid off
2. The ones who have a good chance to survive are the non performing yes men.
They go overboard to satisfy the desires of the supervisors and survive the storm
somehow.
3. The old guys having spent so many years in the organization can manage to find
some godfather.
In Barclays case there has been a cascading effect on the inefficiency in system. The
top leadership is trying to engage the employees to get ideas from grass root level to
improve efficiency and there is a lot of scope of technological improvements and
process redesigns to create efficient systems but the participation from the good guys
down there is minimal. Because there is a fear that if the system gets efficient, lesser
number of employees would be required and the chances that the person who proposed
the efficient system will get laid off increase.
I relate this to another major HR shortcoming that there is no effort to create long term
resources who are expert in various fields. The people in one department spend so
many years doing the same task. They get expert in their field but they are not confident
about the other areas and surely the top jobs need expertise from different areas. Job
rotations should be encouraged and people should be given exposure to different areas
so that the good employees are not required to be laid off even when the job function
which they performed is not required at all by the organization.
The biggest problem that I have observed in Barclays is that there is surely inefficiency
in system but finding the burden employees is a difficult task when the number of
employees is more than 100000.
A few approaches that I can think of are:
1. New business ventures : employees can volunteer and go to new business line
2. Global expansion : Business enviorment might be bad in UK but there are so many
high growth economies out there
3. Taking voluntary leave applications : There would be many who need a break (A few
good people might go but atleast we have managed to keep them attached to
organization)
4. Voluntary resignations: The uninterested ones should be the first to leave as we
cannot expect commitment from them in bad times.
5.
Therefore there is utter discontent with the reward system as people believe that
the attempts to improve efficiencies increase the risk of them being laid off. This
surely has a badeffect on job performance because people do not work to their full
potential and organization commitment reduces as people start the contingency
planning and start exploring new opportunities.
The management is responsible to control all the bad effects and to improve the
systems to get back to the earlier profit margins. The intention of the management
is correct and they have drafted their plans to improve the face of Barclays in the
eyes of the public at large but the execution of the plans is ill planned. Not only
there has been a wide declaration in the media that Barclays has decided to lay off
employees but there are deadlines also planned for this task. These deadlines result
in uninformed decisions taken near the deadlines.
Why people resist change , sometimes its just a retaliation. I had to provide a
feedback on an employees task which was not upto mark and I did my job honestly.
He retaliated by speaking up againt my proposed changes without any reasonable
supporting thoughts. In the end, no one paid any heed to his points but he
succeeded in delaying the design for sure and the delays if keep repeating
combined create a huge roadblock to implement a successful change.
Second even with the policy of giving the time chart in advance already in place, we
still see many escalations from clients for not servicing their requests on time. Be it
inability of the back office to service requests on time or the systems being unable
to allow, surely there is a gap which if plugged can give us an edge over our
competitors and many in the back office would have their ideas on how can the
systems be improved but just because of the explanses involved to bring these
changes everyone has their mouth shut.
The front office , the darling of the system will never accept that it was inability of
the back office and would say they are capable but they did not do because till the
budget of back office is same there is a lot available to the front office and large
part of that goes directly into pockets of the employees.
The front office employees have huge responsibilities to bring in the revenues but
their inability comes from their own perception which has to be thre for selfish
nature of humans. Further the system hides their imcompetitiveness especially for
the servicing side. There might be a lack of ability in atleast a few teams and there
might be some need of help but that all is hidden. A team might be bringing large
amount of revenues but the opportunity would be even more in that area and their
market share might still be smaller.
There are all these issues which may or may not be present but because the front
offices are the revenue generators therefore they can afford to be lethargic and
their shortcomings would get hidden by the system as long as somebody is in
positive revenue system he is a darling of organization. In case of shortfall in
revenues the back office would face budget cuts for sure and that will further
hamper their ability to provide good quality service.
I am nto advocating for larger busgets but a complete overhaul of this budgeting
system so that all ateams are utilized to their full potential and the central figure to
determine which area needs more allocation so that the organization always keeps
moving in right direction and keeps brining in changes to the processes to ensure its
competitiveness among super strong peers.
First Page
Preface/ Abstract
Acknowledgement
Table of contents
Introduction
Organization Efficiency
Change Management
Proposition
References
This report has been submitted in partial fulfillment of the requirements for the
award of Post Graduate certificate in International business practice