Organizational Change Plan for Cowboy Bank Inc. - Part 5


Section 3: Change Management Plan

The two previous sections have dealt with issues surrounding the change implementation plans. This section tackles the technical issues of the plan. It is the body of this document. It elaborates on all aspects of the plan that is going to implement the changes formulated by the leadership board of Cowboy bank. This section shows the assessment of the organization’s readiness to change. It identifies the key messages that are being established by the plan by observing the perspective of each of the stakeholders, identifying concerns that might arise from the messages and showing how the plan will present the changes to be made in a positive light and make them likable by the different people affected.

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This section will clarify the structure of how the change program will be established. It will provide the comprehensive plan with timelines and steps to be taken in educating, communicating, implementing and institutionalizing the changes. It will identify how the plan can be customized or be flexible to varied situations during the transition period. The section will also elaborate on key areas that might require additional support such as consultations.

Another part of this section will identify arrangements that are required during the transition to ensure that the plan is successful in achieving the objectives of the change program. The impact on the workflow of the bank will be addressed in this section. It will identify what possible ways the bank will be affected in relation to workload and how to avoid or reduce the negative impacts. Multiple initiatives might be instituted at the same time. This section will identify ways in which the organization can juggle the intricacies of change program implementation plan.

Finally, this section will provide performance measures that will assess the efficiency and advancement of the organizational change. The issues addressed in this section cover the largest proportion of material on the implementation plan.

3.1 Readiness of Cowboy Bank to Change

The mandate of this document is not to evaluate whether the leadership team made the correct decision in instituting the change program. Its main mandate is to form a plan that will implement the changes in the organization while maintaining high levels of morale among the employees. Consequently, for the plan to work, it has to have considered the current state of affairs in the organization (Hung, 2004). For this reason, this section evaluates the state of affairs at Cowboy bank and how ready it is for change. This allows the plan to provide for additional contingencies if necessary.

In the first section, introduction, the factors necessitating the changes in Cowboy bank were elaborated. The bank is experiencing difficulty in establishing growth. After about 80 years of business, model of the bank has failed to institute substantial growth. The bank leadership team therefore decided to change the structure of the bank and the approach to lending. The current state of Cowboy bank is a stable one. However, like any other company operating costs associated with the old model are rising while growth has stagnated. This indicates the need for change in the bank.

The bank has an asset base of $5 billion. It is currently operating in all 254 counties in Texas. It employs about 1000 loan officers and almost as many customer service representatives. The branches serve as contact points for the customers. Customers who require loans approach the financial institution and place a loan application. The loan officers are responsible for evaluating the applications and granting or refusing the loan applications. The customer service representatives act as service providers for walk-in customers. They offer the information relevant to the customers’ needs. These are the main communication media for the bank.

The bank intends to institute growth by making two major changes. The first is by installing credit scoring software. This software is cheap and reliable in evaluating loan applications and predicting repayment. The leadership team has observed that the organization would accomplish a significantly larger work load by installing the software instead of using the loan officers. This means that the workforce used to evaluate loans is left without work, hence the change in the job description. The bank intends to train a majority of the loan officers to transform from their current tasks and become sales people. This is seen to improve contact with customers. Instead of the customer going to the branch, the loan officer comes to him or her.

The second change is the target market. The bank has traditionally focused on the agriculture industry. In order to increase its market, it has decided to form a department dealing in home loans. This department will be independent of the current organization, but under same executive. The home loans will provide a diversification in the market. While the agricultural industry seems to have stagnated, the mortgage industry is experiencing exponential growth. This will boost revenues for the bank during the transition period.

Evaluating the current state of the bank, it is ready for the change program. Even though the business has almost stopped growing, the bank has substantial resources that will last longer than the transition period. The bank also has sufficient supply of familiar personnel. Though some personnel will have to undergo training, the bank will have enough of them to undertake the sales jobs once the training is over. This reduces the time spent hiring new employees. It also means that the bank will be able to retain royal employees who are committed to the organization’s goals. The bank is a leader in the lending market in Texas. This counts because; it will be easier to influence customers to adapt the new structure. The reputation the bank had built over the last 80 years supports its course.

Consequently, all these attributes of the bank are capable of supporting the change program and this implementation plan. This positive evaluation means that the plan will not have to find additional contingencies (Madsen, Miller, & John, 2005). However, the plan will have to cover all possible loopholes that might derail the change program.

3.2 Key Change Messages

One of the organization’s objectives for this plan is to effectively communicate a compelling vision of the change to all stakeholders. Media of communication have been covered in the previous section. However, there is a need to identify what messages are being communicated by this communication media. The message is essential for the accomplishment of the goals (Armenakis & Harris, 2002). The main message that is being transmitted to the personnel is that change will be of value to them. It is important that this message be enforced. The leadership team intends to change the organization for financial reasons. Change will grow the business. If this is the message emphasized to the personnel, the rate of adoption of the change will be considerably low.

This is because it does not insight emotion nor does it motivate the employees. It just shows that the company favors money more than its employees. The key message has to be personal. It has to touch each of the employees. It has to insight emotion and motivates the personnel to work towards the goals of the organization (Goodman & Truss, 2004). While this might seem to be a trick it is not. In actual sense if the decline in profits continues, the bank is likely to slide into bankruptcy. This would result in a significant proportion of the human resource losing their jobs. If the revenue collection of the company improves, the employees will definitely benefit.

For that reason, the leadership has to choose the message they communicate carefully. This plan will communicate the message of personal benefit. This is to improve the rate of ownership and acceptance (Wanous, Reichers, & Austin, 2000). The employees can, therefore, actively work towards achieving the goals instead of just passively accepting the changes because they have no choice.

It is also imperative to contemplate the program from the perspective of the personnel. This improves the effectiveness of the plan in implementation (Bernerth, 2004). For instance, a loan officer who is just told about his or her pending change of work and relocation will possibly panic at first. A rational individual will then consider the different options. An older employee will probably choose to retire instead of undergoing the different changes, depending on his or her personal situation. A young employee might choose to stay or find work elsewhere depending on his or her ambitions. Middle aged workers are most likely to stay put. This is because, for an individual with several dependents, job security is vital. Job security allows the individual to provide a livelihood to his or her dependents without fail. A permanent job also means that other benefits apply. These benefits are likely to influence the decision (Bercovitz & Feldman, 2008).

The message communicated by the leadership team to the personnel is interpreted differently by varied individuals. Therefore, while communicating to the younger employees, the supervisor might use a different media and maybe twitch the message to accommodate the difference in response and interpretation. For instance, the team might communicate the message emphasizing on the benefits attached to the job, while dealing with middle aged persons, while they might focus on the job’s future opportunities when dealing with the younger demography. These different messages are meant to attain the same goal but use different wording.

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This change management plan will seek to present the idea of change in a positive light. Change threatens the comfort of the personnel. Most individuals in an organization are satisfied with what they are doing. Some individuals have ambitions of climbing the corporate ladder. In the case of Cowboy bank, however, the organization is overhauling the whole system. The old model is being restructured. This disrupts even the most ambitious of the employees. This threat will therefore be faced with resistance. If the employees understood that the change program is for their own benefit, they would probably ease the resistance to it. This plan will utilize different media identified before and varied messages to present the idea of change in a favorable manner. The adoption of the change program would rise considerably.

3.3 Structure of the Plan

The plan will follow a simple plan. This is to ensure that there are no complexities hindering implementation. The table below shows a summary of the plan.

Actions Who When (Period) Performance Measures
Communication and Education of the Personnel on the changes Leadership team and Managers 1st year - Feedback from the employees on the changes

- Morale of the employees

Installing credit scoring Software Leadership team 1st to 2nd year - Effectiveness in predicting loan repayment
Winding up of branch operations Branch managers 1st year - Time spent

- Accountability levels

Reallocation of Personnel Human Resource department 1st to 2nd year - Time spent

- Morale of employees

Training of personnel Human Resource department 1st to 3rd year - Routine tests by trainer

- Effectiveness in sales

Mortgage market launch Leadership team 1st year - Number of mortgages sold

- Market share

Institutionalization of the changes Leadership team 1st to 3rd year - Time spent from initial action to the final step

- Growth levels

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