Change Management

ASSIGNMENT # 1

Managing a branch closure program: An exercise in

planning and managing the process

Submitted by:

Irtiza Haider
Mahnoor Saif
Saba Hafeez
Sidra Siddique
Tehniat Fatima

Submitted to:

Cdr (R) / Asst. Prof. M. Akram

Management Sciences, Bahria University

Islamabad
STEP 1:
Order of Actions Early/Late
1 Arrange an awayday for members of the ops board to focus their Early
thinking on emerging threats and opportunities
2 Identify key stakeholders who might be affected by the change Early
3 Identify a project leader and set up a branch closure team Early
4 Identify the information required in order to decide the number Early
and location of branches to be closed in order to achieve
targeted benefits
5 Identify which branches are to be closed Early
6 Identify (and quantify) benefits sought from closures Early
7 Assess effects of the closures on other aspects of the bank's Early
functioning
8 Identify what steps could be taken to retain high value Early
customers affected by the closures
9 Identify any personal gains or losses that might be perceived by Early
those employees who will be affected by the closures
10 Plan what will happen to displace staff (redeployment, early Early
retirement, redundancy)
11 Develop a personnel package for displaced staff Early
12 Plan any training that may be required for staff who are to be Early
assigned to other work
13 Hold team meetings to brief staff about the closure plans and Early
indicate when they will be informed about how they
(personally) will be affected by the change
14 Brief key managers about the problem and win their support for Early
the closure plan
15 Inform staff how they, personally, will be affected by the Early
closure plan
16 Seek views of branch staff about the issues which will have to Early
be given attention if the closure plan is to be successfully
implemented
 17 Consider what might be done to motivate employees to accept Early
the change?
18 Decide on date for first closures Late
19 Specify timetable for implementing the closure plan Late
20 Announce closure plan to existing customers Early
21 Issue a press release about the closure plan Late
22 Initiate program to make properties suitable for disposal (e.g. Late
remove vaults)
23 Explore the best way of disposing of redundant properties Late
24 Train members of the branch management team in change Early
management skills
25 Monitor progress against timetable and anticipated benefits Late
26 Reflect on how well the change is progressing and discuss with Late
colleagues what else could be done to ensure the change is
successful
27 Post-implementation, provide feedback to staff about how the Late
change is affecting performance
28 Celebrate successes and build on them to motivate people to Late
continue working to improve the bank's competitive position

STEP 2:
Sequence of actions
1. Arrange an awayday for members of the ops board to focus their thinking on
emerging threats and opportunities
2. Identify key stakeholders who might be affected by the change
3. Identify a project leader and set up a branch closure team
4. Identify the information required in order to decide the number and location of
branches to be closed in order to achieve targeted benefits
5. Identify which branches are to be closed
6. Identify (and quantify) benefits sought from closures

 Note: Action 4, 5, 6 are come in parallel to each other

7. Assess effects of the closures on other aspects of the bank's functioning
8. Identify what steps could be taken to retain high value customers affected by the
closures
9. Identify any personal gains or losses that might be perceived by those employees
who will be affected by the closures

 Note: Action 7 must be used repeatedly

10. Plan what will happen to displace staff (redeployment, early retirement,
redundancy
11. Develop a personnel package for displaced staff
12. Plan any training that may be required for staff who are to be assigned to other
work
13. Hold team meetings to brief staff about the closure plans and indicate when they
will be informed about how they (personally) will be affected by the change
14. Brief key managers about the problem and win their support for the closure plan
15. Inform staff how they, personally, will be affected by the closure plan

 Note: Actions 12 and 13are used in parallel with each other

16. Seek views of branch staff about the issues which will have to be given attention
if the closure plan is to be successfully implemented
17. Consider what might be done to motivate employees to accept the change?
18. Decide on date for first closures

 Note: Actions 16 and 17 are also used in parallel to each other

19. Specify timetable for implementing the closure plan

 Note: Action 17 is repeatedly used

20. Announce closure plan to existing customers
21. Issue a press release about the closure plan
22. Initiate program to make properties suitable for disposal (e.g. remove vaults
23. Explore the best way of disposing of redundant properties
24. Train members of the branch management team in change management skills
25. Monitor progress against timetable and anticipated benefits
26. Reflect on how well the change is progressing and discuss with colleagues what
else could be done to ensure the change is successful
27. Post-implementation, provide feedback to staff about how the change is affecting
performance
28. Celebrate successes and build on them to motivate people to continue working to
improve the bank's competitive position

1. Recognition 3. Planning for

2. Diagnosis
of need Change

6. Leading & 4.
5. Sustaining
Managing Implementing
Change
People Change

STAGE 1:

Recognizing the need for change and starting the

change process
There is a need for change because of the competition that has arisen due to new
entrants into retail banking sector

We start the change process by

 Motivating people to move from current status quo by creating a sense of

urgency
 Arrange an awayday for members of the ops board to focus their thinking on
emerging threats and opportunities
  Brief key managers about the problem and win their support for the closure
plan
 Inform staff how they, personally, will be affected by the closure plan
 Seek views of branch staff about the issues which will have to be given
attention if the closure plan is to be successfully implemented
 Consider what might be done to motivate employees to accept the change?

STAGE 2:

Diagnosis (what needs to be changed)

In second step we assess the problem and opportunities. The basic problem in this
scenario is that traditional banks have high overheads costs as compared to new
entrants into retail banking.

This includes the following steps

 Identify key stakeholders who might be affected by the change

 Identify the information required to decide the number and location of
branches to be closed to achieve targeted benefits
 Identify which branches to be closed.

STAGE 3:

Planning and preparing for change

In this step we plan the process to achieve the goals.

This includes the following

 Plan what will happen to displace staff (redeployment, early retirement,

redundancy
 Develop a personnel package for displaced staff
 Plan any training that may be required for staff who are to be assigned to other
work
  Hold team meetings to brief staff about the closure plans and indicate when
they will be informed about how they (personally) will be affected by the
change

STAGE 4:

Implementation and reviewing the progress

 Seek views of branch staff about the issues which will have to be given
attention if the closure plan is to be successfully implemented
 Consider what might be done to motivate employees to accept the change?
 Announce closure plan to existing customers
 Monitor progress against timetable and anticipated benefits
 Celebrate successes and build on them to motivate people to continue working
to improve the bank's competitive position

STAGE 5:

Sustaining the change

Sustaining change means that we have to sustain that change for longer period of
time.

 Develop a personnel package for displaced staff

 Post-implementation, provide feedback to staff about how the change is
affecting performance

STAGE 6:

Leading and managing the change

 Reflect on how well the change is progressing and discuss with colleagues
what else could be done to ensure the change is successful
 Post-implementation, provide feedback to staff about how the change is
affecting performance
 Celebrate successes and build on them to motivate people to continue working
to improve the bank's competitive position