Strategy Change Management at National Bank of Abu Dhabi (Essay Sample)

STRATEGIC CHANGE MANAGEMENT AT NATIONAL BANK OF ABU DHABI (NBAD)
[Student’s Name]
[Course]
[Tutor]
[Date of Submission]
Executive Summary
This report is based on strategic change management in National Bank of Abu Dhabi that is also known as NBAD. The report gives an overview of the organization and includes the current position of the organization. Furthermore, the background of what change means is discussed in-depth and where possible examples given. The report also gives the rationale for the use of the change management processes described concerning NBAD. The next section explores the drivers for strategic change in NBAD as well as their resource implication. The best change management strategy for NBAD is then explored with each of the elements well elaborated. The next section covers the issue of resistance that must show up whenever a change is being instituted. Last but not least, the report presents a series of recommendations and a summary of the gist of the whole content. The last part has a list of sources contacted when compiling the report.
Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc434575487 \h 2Introduction PAGEREF _Toc434575488 \h 4Background of the Organization PAGEREF _Toc434575489 \h 4Background of Change PAGEREF _Toc434575490 \h 5Models of Change Management and Relevance to NBAD PAGEREF _Toc434575491 \h 7Kotter’s Change Management Model PAGEREF _Toc434575492 \h 7Kurt Lewin’s Model PAGEREF _Toc434575493 \h 10Factors Leading to the Need of Change in NBAD and their Resource Implications PAGEREF _Toc434575494 \h 12Change Management Strategy for NBAD PAGEREF _Toc434575495 \h 14Strategies to Overcome Resistance to Change in NBAD PAGEREF _Toc434575496 \h 15Conclusions and Recommendations PAGEREF _Toc434575497 \h 17Bibliography PAGEREF _Toc434575498 \h 19
Introduction
Background of the Organization
Emiri decree established the National Bank of Abu Dhabi also known as NBAD in the year 1968 (NBAD, 2015). NBAD was the first local bank to play a role in the process of revolutionizing the financial systems of Abu Dhabi and the UAE in general (NBAD, 2015). Today, the bank has expanded its operations through branches and offices that are present in more than 19 countries in nearly all the five continents (NBAD, 2015). NBAD has branches in UK, France, South America, China, Libya, Sudan, Egypt, and Brazil. Furthermore, NBAD also has a one of the largest networks in the UAE (NBAD, 2015). The governance of NBAD is through a board of directors whose members have diverse experience in various domains and fields that act as a success factor for the bank. The senior management team guides the strategic direction of NBAD is as well as manage the daily operations of the bank (NBAD, 2015). The current CEO is Alex Thursby, who took the lead in 2013 (NBAD, 2015).
Throughout the past years, NBAD continues to receive accolades as well as awards in different categories (NBAD, 2015). The awards span on strategic operations such as business, leadership, technology, organizational excellence, products and retail products both locally and internationally. NBAD is placed among the leading banks in the Middle East and ranks in the top 5 as the safest banks globally (NBAD, 2015). The Foundation in Abu Dhabi and thus an understanding of the dynamics associated with the Arabic regions, NBAD is better placed to understand the connections between the Arab areas and the markets in the world. NBAD lists on Abu Dhabi Stock Market since 2000 where it originated with almost 30% of its shares (NBAD, 2015). NBAD’s mission is to be recognized as the world’s best Arab Bank (NBAD, 2015). The success of the bank lies with the mission that ensures the customers are well served through the provision of excellent services and products (NBAD, 2015). NBAD has three strong pillars that anchor its development mission (NBAD, 2015). They include home markets wholesale network markets and new franchise markets (NBAD, 2015).
Background of Change
Change whether at personal or organizational level is inevitable and determines the future directions as well as success (Carraher, Buckley & Carraher, 2008). In the complex business world, most organizations seek refuge on organizational change so as to remains relevant. External, as well as internal forces, are a substantial hindrance for organizations to meet their objectives, remain sustainable and prosper (Carraher, Buckley & Carraher, 2008). Management of strategic change within the current market is one of the dilemmas that most managements have had to come to terms with through valid solutions. The pace with which an organization responds to change determines its rate and thus level of success in the market (Carraher, Buckley & Carraher, 2008).
Some trends shape the direction in which change occurs in the contemporary business environment. First off, globalization has made the market complex by expanding competition. Organizations also change to include diversified workforce as well as outsource some of the labor (Adenike, Omotayo & Abolaji, 2013). Secondly, advancement in information technology continuously makes organizations reconsider their old systems and upgrade thus keeping pace with the rest of the competitors in the market (Adenike, Omotayo & Abolaji, 2013). Raid technology makes the old systems obsolete, case in which organizations have to invest in new technologies that would optimize their operations and confer a competitive advantage (Carraher, Buckley & Carraher, 2008). Additionally, changes within the IT systems force the organizations to acquire the new systems due to the security and other range of advantages that they assure the organizations.
Thirdly, innovations in management and leadership also guide the direction in which change in an organization takes for total benefits. As the management of the workplaces and organization transform into new strategies, the organization is left with the options of engaging new operational human management within the organization (Naghibi & Baban, 2011). Changes in the industry and the market also force the organizations to resort to change. The regulations within the markets, as well as the legal obligations of organizations, are very dynamic making change the best way to cope with the pace. Lastly, situational factors such as continued or sudden failure of an organization can also elicit change in an organization, so it soars back to normalcy (Naghibi & Baban, 2011).
There are different types of organizational changes (Naghibi & Baban, 2011). First off, there is planned change that occurs when the leadership deliberate and resolve for the need of change so as to proactively organize and execute the change (Adenike, Omotayo & Abolaji, 2013). Secondly, there is also unexpected change that is random and determined by the prevailing situations of the organization (Naghibi & Baban, 2011). Transformational change, on the other hand, is broad in nature and occurs when an organization changes its culture, structure and the way it operates (Naghibi & Baban, 2011). The opposite extreme to transformational change is incremental change that involve alterations in the organization without necessarily changing the culture of an organization (Adenike, Omotayo & Abolaji, 2013; Naghibi & Baban, 2011).
Another type of change that is common in most organizational literature is the developmental change that occurs with the chief aim of making a situation efficacious such as increasing market share and expanding the customer base (Naghibi & Baban, 2011). Last but not least, remedial change as it name suggests seeks to defuse a situation such as improving the performance of a new product or service as well as improving the organization so as to be successful (Naghibi & Baban, 2011). Examples of organizational change include operational or structural change, technological change, mission changes, HR management changes, and strategic changes (Naghibi & Baban, 2011). Some factors make the National Bank of Abu Dhabi (NBAD) destined for organizational change as well as the best methods and strategies to make the change work better.
Models of Change Management and Relevance to NBAD
There are different perceptions of change depending on the extent to which the people and organizational processes affect each other (Normandin, 2012). There is no single best way to manage change. However, some models have been proposed by previous organizational studies literature. For the scope of this paper, Kurt Lewin’s Model and Kotter’s Model are the key change management models that are relevant to NBAD.
Kotter’s Change Management Model
Kotter came up with a multistep approach that involves eight stages in defining the direction and success of change management in an organization or a system (Sharma, 2007 p.47). In some literature, this model of change is referred to as one of the most influential contemporary model of change management in organizations through eight steps. The model advocates for optimized communication before, during and after the change process (Normandin, 2012). The initial step of this model involves creating a sense of urgency. Here the leadership or management actively involves themselves in analyzing the competitive environment through forecasting the potential opportunities as well as threats (Normandin, 2012). Additionally, there must be awareness of the organizational forces that create the urgent need for the change (Sharma, 2007).
The second step crucial to the model involves the formation of a ruling coalition (Sharma, 2007 p.47). In this stage or stage, a management team is set up to lead the change. The process involves thorough scrutiny of the management based on their competence then constituting a t...