Strategic change management at the Citibank

strategic potpourri counseling at the Citi relyCiti rim, a study international brink, is the consumer banking arm of financial operate giant Citigroup. Citibank was founded in 1812 as the urban center brim of New York, later First National City Bank of New York. As of March 2010, Citigroup is the third largest bank prop ships comp each in the United States by total assets, after(prenominal) Bank of America and JP Morgan Chase.Citibank has retail banking operations in much than 100 countries and territories most the world. More than half of its 1,400 comp hotshotnts atomic number 18 in the United States, mostly in New York City, Chicago, Los Angeles, the San Francisco Bay Area, and Miami. More recently, Citibank has expanded its operations in the Boston, Philadelphia, Houston, D onlyas, and Washington, D.C., metropolitan argonas.In addition to the standard banking transactions, Citibank offers insurance, credit card and investment products. Their online proceedss di great deal is among the most no-hit in the field,citation needed claiming about 15 billion utilizationrs.As a result of the global financial crisis of 2008-2009 and huge losses in the value of its subprime mortgage assets, Citibank was rescued by the U.S. authorities under plans agreed for Citigroup. On November 23, 2008, in addition to initial aid of $25 billion, a further $25 billion was invested in the corporation unneurotic with guarantees for risky assets amounting to $306 billion. Since this time, Citibank has repaid their establishment loans in full.Citibank was one and only(a) of the first U.S. banks to stick in shape-driven teller machines in the 1970s, in order to give 24-hour access to accounts. Customers could utilise their existing Citicard in this machine to withdraw cash and bring on deposits, and were already accustomed to using a machine with a card to institute information that previously required a teller.In April 2006, Citibank struck a deal with 7-Eleven to put its automated teller machine (ATMs) in more than 5,500 convenience stores in the United States. In the precise(prenominal) month, it also announced it would sell entirely of its Buffalo and Rochester, New York, branches and accounts to MHYPERLINK http//en.wikipedia.org/wiki/MT_BankHYPERLINK http//en.wikipedia.org/wiki/MT_BankT Bank.IntroductionChange anxiety is a set of act upon of an individual is been moved to a nonher member for qualification the success or to carry out the objectives of the g overning. For eg If a person flora in india is an process expert if the company wants to start a recent branch in America. hence what the company should do? The Company should cover a fair decision by moving the employee from india to America. So that he is aw ar of the process and he select the skilful person who is expense for this project. So pattern in the world is common and good for the ring as wellspring. But the spay should actualize profit for an presidential term objectives.strategic commute copement is an intergrated process in the nerve by creating the schema and instrumenting in to hit activities. By machineing we need to oversee the activities work give rise by the employee so ground on the regular enclose we send packing subscribe a substitute to the physical composition as well as it sop up out increase the economic growth of business.Change concern is a well structured designed approach by interchanging the person or squad from a current assure to a desired state or company wants him to go for a particular state to hope the current stir in business environment for the growth of organisation. tax 12.1 Need for ChangeThe Changes argon happening in the organisation of both external and internal issues. The following issues of point ar beneathDrastic flip in the global market growthChanges in economic downturnsSerious lurchs in business schemaTechnological re browses in businessExpanding business widelyAll fundamental law be bewilder to shake their own agitates, otherwise they pass on be moving in the same tempo, they grasst hand more what the other does. So strategic tacks is something truly essential for a business success. To mee the ch solelyenges definitely the organisation needs a change from both the external and internal environmentCitibank as a cliquish are facing some of the ch whollyenges, the following down the stairs changes are below Economic downturn E rattlingone is aware the global market is in a serious crisis position now. In this situation badly bear on country in America and Europe. Beca physical exertion of Lehman brother bankrupt the company finding a hard position now. Lehman brother was 4th largest investment bank in the USA, because of the bankruptcy the America is in a critical situation. This should not happen to others banks, So because of this every bank is using bleak-fashioned outline to overcome with this situation. This economic downturn remove a wide explode on banking sector.Competitive pressure India is the second largest population in the country. In india we potentiometer find numerous private banks to its best and they give the service to the custome is also outstanding. Now this is the time every bank should use the scheme to bring customers with our bank. So the Citibank has started a new quickness by transferring the monetary resource to other banks by NEFT. This was not introduced in the othere banks. So everyone attention has false to Citibank. So this is there we need to implement the dodge and make successful. So this would create a competitive pressure to other banks.Technological organic evolution In finally few years technology has been expatiateed a vast and it helpers in many ways for us. Some of the banks dont affirm facility of transferring the funds to other person for the same bank he has the account. We provide transfer the amount but it go out catch one twenty-four hours for registration therefore we faecal matter transfer the money. Citibank has came up with new dodging by with in a minute money will be transferred to the account. If we had that person in to the payee list. Because of the technological development it make very easier to the customer. preparedness for extension Citibank atm has nap of branch over Chennai and Mumbai cities, as a feed back from customers they receive opened lot of atms for customers welfare. So by creating a wide extension they erect retain their largest market position. plump for holders take on Its nothing but who participates in the organisation by at present or in educately. Directly means those who harbour invested the money in the organisation. Their demand is similar company should earn profit and they have to top listed in the global market. Indirectly means customers, their demand is equal online services, atm services, deposits and requital in online. So this will motivate the bank for change.2.2 Driving Factors that entice the changeChanges does not take place in every little(a) while, There are some all important(predicate) driving component parts which plays to be an important fiber for change in the organisation. There are two move of factor external and internal. foreign Factors The outer environment factors are of two contrastive types the cosmopolitan environment and task environment.External Environment The general environment of organisation are listed belowPolitical changes and murder of a new governmentCurrent saving changes such as boost down of stock market and exchange ratesTechnological change which may affect the gentle life in both products and processLegal implication of new government policesClearly these factors are isolated from influence in change in the organisation.Definitely the organisation will over come the challenges would do well and anticipate to these development as they translate directly or either a th reat that mustiness overcome an opportunity.Internal environmentsInternal factors play a major habit for changing in an organisation. These factors are driving the change and make the organisation support for achieving the objective.Change of Management Each and every organisation make a change over the pass executive officer after some years of service. When a new chief executive office comes in to the organisation make some new strategic changes to the organisation. pecuniary Issue Generally every organisation want to make the compute competitive for the project. They need the output result to be effective in minimum budget. This is what every organisational objective. In some times this wont work out in some of the projects, in this case they will make the change to cut down the budget amount.Technological wear outment In this modern world every solar day a lot of new inventions have been invented new by the scholars to promote the business, make the life convenient and com fortable. Organisation can advertise their business by the technology they can use the opportunity and competite others.In case of Citibank, have some of the factors which driven its change in the last few years.Economic Downturn In the global recession Citibank has been badly affected for eg Citibank back end BPO projects have been outsourced to india in the name of Citigroup global services, once the recession affected the market as well as the bankrupt of lehman brothers as affected the America badly. At that time citigroup has been acquired by TATA CONSULTANCY SERVICES. Otherwise it would be rough for the organisation to pass their business.Political issue Generally fit to the new government rules and regulation, the bank will adhere to the policy and make a new schema according to the new legislation.Technological Development When comparing with other bank always Citibank at the top. Their service is outstanding eg online service is user companionate to the customers. Th ey make use of the full technology development.Customers expectation Citibank always carry out their customer needs. Eg they provide sms service to pay the bill or to make do the outstanding amount of the bill. Apart from that they are doing extra services like paying the mobile bill, electricity bill and so onDemographical situation Citibank has lot of branch in india and other principal(prenominal) cities like Chennai and Mumbai, So they have the plan to open the brach in remote villages of citi for the benefit of the customer involve and the feedback. This will creat a extra ordinary change in socio economy of india.Pressure from the rivals Generally in india there are lot of private banks which is very competitive, Citibank has done many strategy changes to make the bank as unique, for eg. Those who wreak the money for mortgage, the citi has came front and offer loan in an spellbinding absorb to the customers.The above factors discussed here which plays the major role for change in the organisation. I have not listed down all the factors. Whatever the factor that is not important, organisational change is the process which is related to growth of the organisation. Its failure or success but the change is very important to the organisation to achieve the organisational objective.2.3 Resource Implications Resources are the major factors of the organisation. The better resources can bring the taxation and opportunity to the organisation. Organisation use unlike resources to achieve their goals. The major resources apply by the organisation are striked below 1. Human Resources2. financial Resources3. Physical ResourcesHuman Resources Human resources is the most important resources in the organisation. They champion all other department in the organisation like, admin, cafertaria, marketing, supplier etc. HR team is the one who recruit lot for other department. If a new process comes to the organisation they are one who recruit people accordi ng to the criteria of the process. HR team facilitates other roles in the organisation like employees needs and readinesss etc. To achive the organisational goal change is much needed for organisation. financial Resources Finance is very much important to the organisation, with out that nothing can be done. For each and everything we need finance. Eg to give dressing to employees and induction to new people for each and everything we need money. So the company will accent on finance, they need a good output with minimum budget. In the recession period many of the banks have faced the problems. Some of the banks have reduced the salary of the employees of the bank.Physical Resources Physical resources support the gracious resources department to do the job properly in a right way. For eg human resources cannot do all the work with out proper physical resources. Infrastructure, transportation, machine are coming under the physical resources which can help for human resources and unneurotic they can achieve for organisational growth.3.1 Systems of involving stakeholdersStakeholders are the people who have wager in the organisation or have influence or mogul over it. For changes in the organisation stakeholders plays a major role. The internal stakeholders have more magnate and more interest. Some have low powe and proud interest. Stakeholders support is very essential to organisation with out their support changes is not possible.The Key stake holders may divide into two categoriesInternal andExternalInternal Stakeholders Internal stakeholders are people who work inside the organisation is called internal stakeholders. For eg customer, employees and executement. They are the most effective to the changes happening in the organisation.External Stakeholders The people who are outside the organisation are called external stakeholders. For eg supplier, buyer, government etc.Stakeholders of Citibank Citibank stakeholders play a major role in changes of or ganisation. They are the one who strike change and make it successful. With out them changes is not possible. They have to accept the change so that we can achieve our organisational objective. The stakeholder of Citibank can describe as followingInvestors The investors of bank is vey important. In that stakeholder is the investor. So he is more important to organisation. So they have the full influence to changes in the organisation.Employees Employees of the organisation plays a major role in change of organisation. When the changes need to the organisation, the direct support comes from the employees to change or resist the change. All the employees of the bank in the organisation are key stake holders of the organisation.Management Management is altogether responsible for the growth of the organisation. They are the one who implement the strategy and implement in day to day activities and make success for the organisation.Customers Cutomers are the asset to the organisation, when the changes place in the organisation customer focus to the organisation. As well as bank is very keen on customer when the change is going on.Share holders Shareholders are the owner of the organisation. The bank gives postgraduate anteriority to the shareholders, with out their decision the bank cannot change anything in the organisation. Shareholders have high interest and high forwardity in the organisation.Community Community is something very important, bank have to look around whats happening because some of the Islamic banks are giving interest free as that is religious to them. So like that we need to give low interest of mortgage to customers, so that customer attention will turn around.Government Government is one type of stakeholder in the organisation. Because we are paying embodied tax to the government as well as they have the strong agent on the business. Bank obeys legislative roles made by the government.Stakeholders of the organisation has every power to change in the organisation and implement the change in day to day activities. Once the stakeholder gives the suggestion, vigilance will think about the change and implement the same in to organisation. The stakeholders have more privilege to travel by the change in the organisation as they have more interest in the organisation.3.2 Involving stakeholders in the change management strategyInvolving stakeholders in the strategy change is depend on the realationship between the stakeholders and the organisation. The steps involving stakeholders are belowIdentifying their interest in organisationIdentify the output strategic challengesgraphical record the relationship betweenRecongnise the important stakeholder from the organisationAs per mendelows matrix the stakeholders of mixed bag is described belowHigh power + High interest = Investors, executive director bodyHigh Power + Low interest = Government,Low power + High interest = Employees, shareholdersLow power + Low interest = Cus tomers, familiarity3.3 Evaluation of the systems employ to involve stakeholdersChange in the organisation will be success only if we regularly do the audit check on that particular changes. So we can be aware of whats happening because the impact of failure of an effective change can be very high, losing in market, changing in senior management, losing of employees.In the recent Citibank has made a major changes in the organisaiton They have message services, online services those who lend the money for mortage is very low interest to the cutomers. By implementing this changes they have used some methods to involve its stakeholder in the change management strategy.Meetings Citibank has arranged see with his stakeholders to share the view of change in the organisational strategyCoaching Citibank is regularly monitoring the employees. If an employee sticks in to the same process for two to three, years the employee will feel very bored to work, so he needs a change, so the organ isation will come front and give learn about the other process, so that employee should be ready to accept the change. assign Its one of the methods to involve the stake holders in the change management process. The management can assign some of the task by dividing between the team to delegate the work properly. This will make a huge change process in the organisation.Presentation It is one of the useful methods to get a line the stakeholder. The bank will set up power point presentation and make them understand what we are doing in the organisation. So that stakeholders are aware of what we are doing in the organisation.3.4 opposite to changeResistance to change can be defined as an person or team engaging in acts to stop or disrupt an attempt to introduce change. Resistance itself can make different forms from undergoing of change initiatives in the organisation. ii types of resistance can be consideredResistance to the content of change A change in the technology or innovati ve to a particular reward for recognition.Resistance to the process of change This type of change is for the affected employees. With out prior information a job is been assigned to the employees. After management knows they go for a change in the organisation.Steps should be taken to manage the resistance of change in the organisation NegotiationEdit inspectionManagement should be aware of whats going around in the organisation, because change in the organisation is something is not very easy to change. First the management teams go for the discussion and comes to the conclusion what should be implemented or not in the organisation. Then again they have to set up the see for the stakeholders, we need to explain the advantages of the changes in the organisation to shareholders and make them understand. At last we have to convey the changes to the employees.We dissolve for whatever the changes might be in the organisaiton. And what ever the reason the changes have made necessary to implement in the organisation. The changes in the organisation is very much effective to achieve organisational objectives. bewilders of Strategic ChangeThere are many gets of strategic change7S Model Mckinsey five-spot stages transition circle Kulber RoseEight steps to successful change John p kottersChange management mannequin Kurt luwin workaday Change model Burke Litwin7S model of Mckinsey The 7S model can be used in a variety of situation where an alignment persuasion is useful, below are the following examplesIt helps to improve the performance of the companyManagers are willing to examine and learn its intention and reason and execute the modelIt will help to create a great business dodging Plan for allocation of a firm scarce resources, overtime to bring in identified goals.Structure The organisation is well structured and centralized.System sidereal day to day work in organisation and procedures should be follow employee shared out Values This deals a maj or value to the company that influence the corporate culture and the general work in organisation.Style The key role of manager is adopted in the organisation.Staff Number of employees in the organisation.Skills extremely skilled employees are working in the organisation.The Mckinsey 7S model involves seven mutualist factors whichare categorized as either hard or flabby elementsHard elements are Strategy, Structure and System.Soft elements are Shared values, skills, agency and staff.Hard elements are easier to define or identify and management can directly influence them These are strategy statements organization charts and reporting lines and courtly processes and IT systems.Soft elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful.Placing Shared Values in the middle of the model emphasizes that these v alues are central to the development of all the other critical elements. The companys structure, strategy, systems, style, staff and skills all stem from why the organization was originally created, and what it stands for. The original vision of the company was formed from the values of the creators. As the values change, so do all the other elements.1.2 Evaluations of relevance of models of strategic changeOrganisation is making changes according to the current situation and current economy. There are so many models in strategic change but we cannot implement all the strategy in to the organisation. We need to implement the correct strategy in a right time to execute the success of the organisation. Among the other models of strategic change Kurt Lewins model is used in most of the cases.Organisation should use this model for strategic change for organisational development. For a change organisation should change the chief executive officer and the managing director for achieving t he organisational objective. So that new managing director introduce new online banking service and atm service. At the beginning the employees wont accept the change. But later on we should tell the advantage of the changes in to the organisation. Then the new executive of the bank go for a change to manage the organisation.First the bank should arrange the take ining with the branch manager and the hale employee of the organisation and the backend team. And they should make understand the changes and benefits to the organisation. When the managers understand the vastness of change in the organisation, then they will cascade the message to the employees, in this way all the employees will ready for the change and move for their comfort zone.Secondly the management should be aware of changes is very important in the organisation. This stage of change is needed when the situation arises for the organisation. The changes will make the employees training, mentoring, groupdiscussion, so that employees could learn the changes and implement in the work.At the end change has been made now the managers and employees together should perform and achieve the goals of the organisaiton.1.3 Assessment of the value of using strategic interventions techniques in organisations The field of organisation using a variety of processes, approaches, methods, techniques, applications to address organisational issues and to achieve the organisational objective and to increase the performance of the organisation.Human process interventionsWith todays strong importance on human values. The following interventions are getting a great deal to the organisaiton. And that will change the organisation to different reach over the customers. The human process will do a project and make them understand the benefits of change over the organisation. The following interventions will be subservient to change the projects in the organization. New employees, different cultures working together, ma ny complaints among organizational members, many conflicts, low morale, high turnover, ineffective teams, etc.Guiding Individuals preparationCounsellingMotivatingMentoringLeading in frontGroup basedGroup DiscussionBuilt the teamManagement conflict practical(prenominal) teamsSelf directed work teamsThese strategic change interventions will make a huge change in the organization. The organization arranged training for the employees and they should monitor the self evaluation of the employee. This will make the change in operational system successfully.4.1 Develop appropriate model for change straightaway organization face rapid change like never before, globalisation has increased the market and opportunities for growth and revenue. Ability to manage change to meet the stakeholders needs is very important by todays leaders and managers.Step one Create urgencyFor change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. Th is may help you spark the initial motivation to get things moving.Identify potential threats, and develop scenarios showing what could happen in the future.Examine opportunities that should be, or could be, exploited.Start near discussions, and give dynamic and convincing reasons to get people talking and thinking. put across support from customers, outside stakeholders and industry people to strengthen your argument.Step Two Form a Powerful CoalitionIdentify the true leaders in your organization.Ask for an emotional commitment from these key people.Work on team building within your change coalition.Check your team for unclouded areas, and ensure that you have a good mix of people from different departments and different levels within your company.Step Three Create a wad for ChangeA clear vision can help everyone understand why youre asking them to do something. When people see for themselves what youre trying to achieve, then the directives theyre given tend to make more sense.C reate a strategy to execute that vision.Ensure that your change coalition can describe the vision in five minutes or less.Practice your vision public lecture often.Step Four Communicate the VisionIts also important to straits the talk. What you do is far more important and believable than what you say. Demonstrate the kind of behaviour that you want from others.Talk often about your change vision.openly and honestly address peoples concerns and anxieties.Apply your vision to all aspects of operations from training to performance reviews. Tie everything back to the vision.Lead by example.Step Five Remove ObstaclesIf you follow these steps and reach this point in the change process, youve been talking about your vision and building buy-in from all levels of the organization. Hopefully, your staff wants to get busy and achieve the benefits that youve been promoting.Figure Force field abridgmentIn the above figure, we see that there are some forces which want the proposed change c alled driving forceFirstly identified these both forces to implement change in right way. Then it arranged sitting with the restraining forces to develop a sense of urgency into them and use the driving forces to motivate the opposition quite than contradiction.Secondly the bank found some powerful people who positively support the need for change. It formed coalition with authority, delegation, status and expertise. It also ensures the team to have a good mix of people from different levels and different areas.Finally, it developed a sense of need of change in all kind of stakeholders of the bank e.g. customers, employees, directors, investors, community and others. It also introduced reward people for making change happened.4.2 Plan to implement a model for changeOrganisations use some tools to implement a model for change. Organisational development, business process re-engineering, delayring and rightsizing, get and pull strategy are the most common tools used for effectuatio n of change model.Business process re-engineering Business process reengineering (often referred to by the acronym BPR) is the main way in which organizations become more efficient and modernize.The two cornerstones of any organization are the people and the processes. Even the act of documenting business processes alone will typically improve organizational efficiency by 10%.engineering transforms an organization in ways that directly affect performance.1) Envision new processes2) Initiating change3) march diagnosis4) Process redesign5) Reconstruction6) Process monitoringThe most common approach to process improvement is to take an under-performing process, which is key to achieving the business objectives, and set about a systematic analysis to determine the most important areas for overhauling. These are then tackled on a project-by-project basis. The analysis and improvement is tackled by a temporary Process usefulness Team drawn mainly from people within the process.We may co nclude the point in this way that organisations need to use techniques before implementation of any change. Otherwise it may bring disaster for the organisation by resistance force to change. It also recommended that various tools or techniques may be used in integrated way for implementation of change in the organisations.4.3 Appropriate measures to monitor march onEffective change is needed to monitor the progress of change. Monitoring the progress of change is most important for effective change. Change is a process, where there might be some wrongfulness with people and some wrong with process. Change does not take place without proper monitoring over the process. Managers are required to keep an center of attention on the ongoing change and the reaction of this change. The evaluation of change progress can divide into following categories.Goal-based evaluation