Strategic change management at the Citibank

Citibank, a significant international bank or investment company, is the buyer bank arm of financial services big Citigroup. Citibank was founded in 1812 as the town Bank of New York, later First Country wide City Bank of New York. As of March 2010, Citigroup is the 3rd largest bank holding company in the United States by total investments, after Standard bank of America and JP Morgan Chase.

Citibank has retail banking operations in more than 100 countries and territories about the world. Over fifty percent of its 1, 400 office buildings are in the United States, mostly in NEW YORK, Chicago, LA, the SAN FRANCISCO BAY AREA Bay Area, and Miami. Recently, Citibank has broadened its procedures in the Boston, Philadelphia, Houston, Dallas, and Washington, D. C. , urban centers.

In addition to the typical banking orders, Citibank offers insurance, bank card and investment products. Their online services section is just about the successful in the field, [citation needed] professing about 15 million users.

As a result of the global financial crisis of 2008-2009 and huge losses in the worthiness of its subprime mortgage loan belongings, Citibank was rescued by the U. S. authorities under plans arranged for Citigroup. On November 23, 2008, in addition to original help of $25 billion, an additional $25 billion was committed to the corporation as well as guarantees for risky property amounting to $306 billion. Since this time, Citibank has repaid their federal loans in full.

Citibank was one of the first U. S. finance institutions to introduce programmed teller machines in the 1970s, to be able to provide 24-hour access to accounts. Customers might use their existing Citicard in this machine to withdraw cash and make deposits, and were already accustomed to utilizing a machine with a card to get information that recently required a teller.

In April 2006, Citibank struck a package with 7-Eleven to put its automated teller machine (ATMs) in more than 5, 500 convenience stores in the United States. Within the same month, it also declared it could sell most of its Buffalo and Rochester, NY, branches and accounts to MHYPERLINK "http://en. wikipedia. org/wiki/M&T_Bank"&HYPERLINK "http://en. wikipedia. org/wiki/M&T_Bank"T Lender.

Introduction

Change Management is a couple of process of an individual is been changed to some other process to make the success or even to achieve the targets of the company. For eg In case a person works in india can be an process expert if the company wants to start a new branch in the us. Then what the business should do? The Company should take a good decision by moving the staff from india to America. So that he is aware of the process and he choose the skilful person who is worth because of this task. So change in the globe is common and best for the encompassing as well. However the change should make income for an company objectives.

Strategic change management is an intergrated process in the company by creating the strategy and utilizing in to work activities. By implementing we need to monitor the actions work done by the staff so predicated on the standard check we can make a change to the company as well as it'll increase the economic expansion of business.

Change management is a well structured designed way by interchanging the individual or team from a current state to a desired state or company would like him to go for a particular state to accept the existing change running a business environment for the expansion of organisation.

Task 1

2. 1 Need for Change
The Changes are happening in the organisation of both external and interior issues. The next issues of point are below

  • Drastic change in the global market growth
  • Changes in financial downturns
  • Serious changes running a business strategy
  • Technological changes in business
  • Expanding business widely

All Organisation have to make their own changes, in any other case they'll be moving in the same tempo, they cant achieve more what the other will. So proper changes is something very needed for a business success. To mee the troubles definitely the company needs a differ from both external and inner environment

Citibank as an exclusive are facing a few of the challenges, the next below changes are below

Economic downturn : Everyone is aware the global market is in a significant problems position now. In this situation badly influenced country in the us and Europe. Due to Lehman brother bankrupt the company finding a difficult position now. Lehman brother was 4th most significant investment bank in america, because of the personal bankruptcy the America is in a crucial situation. This will not eventually others lenders, So for that reason every bank or investment company is using new strategy to overcome with this situation. This economic downturn made a great collapse on banking sector.

Competitive pressure : India is the second largest people in the country. In india we can find many private banking institutions to its best plus they give the service to the custome is also remarkable. Now it is now time every loan company should use the strategy to bring customers with this bank. Therefore the Citibank has started out a new center by transferring the money to other banks by NEFT. This is not introduced in the othere lenders. So everyone attention has considered Citibank. So this is there we need to execute the strategy and make successful. So this would build a competitive pressure to other bankers.

Technological Development: In previous couple of years technology has been developed a vast and it helps in lots of ways for us. A number of the banks don't possess service of transferring the money to other person for the same loan company he gets the account. We are able to transfer the amount but it will require 1 day for registration then we can transfer the amount of money. Citibank has developed new strategy by with ina moment money will be transferred to the consideration. If we'd that person into the payee list. Because of the technological development it make very easier to the client.

Planning for expansion: Citibank atm has great deal of branch over Chennai and Mumbai metropolitan areas, as a supply back from customers they may have opened lot of atms for customers welfare. So by creating a wide expansion they can sustain their most significant market position.

Stake holders demand: Its nothing but who participates in the company by directly or indirectly. Straight means those people who have invested the money in the company. Their demand is like company should earn revenue plus they have to top detailed in the global market. Indirectly means customers, their demand is like online services, atm services, deposits and repayment in online. Which means this will motivate the lender for change.

2. 2 Driving Factors that affect the change

Changes will not take place atlanta divorce attorneys short while, There are some important travelling factors which takes on to be an important role for change in the organisation. You can find two elements of factor external and inner.

External Factors : The External environment factors are of two different types the general environment and task environment.

External Environment
The general environment of company are listed below

Political changes and execution of a new government

Current overall economy changes such as increasing down of currency markets and exchange rates

Technological change which may affect the real human life in both products and process

Legal implication of new federal polices

Clearly these factors are apart from impact in change in the company.

Definitely the company will overcome the troubles would prosper and anticipate to these development as they translate straight or either a threat that must overcome a chance.

Internal environments

Internal factors play a major role for changing within an organisation. These factors are traveling the change and make the organisation support for attaining the target.

Change of Management: Each and every organisation make a change over the principle executive officer after some years of service. When a new chief executive office comes in to the organisation make some new tactical changes to the company.

Financial Issue: Generally every organisation want to help make the budget competitive for the job. They need the output result to be effective in minimal budget. This is what every organisational target. In some times this wont workout in some of the tasks, in this case they will make the change to cut down the budget amount.

Technological Development: In such a modern world everyday a lot of new inventions have come to exist new by the scholars to promote the business enterprise, make the life span convenient and comfortable. Company can advertise their business by the technology they may use the ability and competite others.

In circumstance of Citibank, involve some of the factors which powered its change in the last few years.

Economic Downturn : Inside the global recession Citibank has been badly afflicted for eg Citibank again end BPO assignments have been outsourced to india in the name of Citigroup global services, after the recession affected the marketplace as well as the bankrupt of lehman brothers as damaged the America terribly. In those days citigroup has been bought by TATA CONSULTANCY SERVICES. Otherwise it would be problematic for the organisation to keep their business.

Political concern: Generally based on the new government guidelines and regulation, the bank will stick to the policy and make a new strategy based on the new legislation.

Technological Development : When comparing with other bank or investment company always Citibank at the very top. Their service is fantastic eg online service is user-friendly to the customers. They utilize the entire technology development.

Customers expectation : Citibank always fulfil their customer needs. Eg they provide sms service to pay the monthly bill or to know the exceptional amount of the expenses. After that they are doing extra services like paying the mobile costs, electricity bill etc.

Demographical situation : Citibank has lot of branch in india and other main towns like Chennai and Mumbai, So they have got the plan to open up the brach in remote villages of citi for the benefit for the customer submission and the reviews. This may creat a extra standard change in socio overall economy of india.

Pressure from the rivals: Generally in india there are great deal of private finance institutions which is very competitive, Citibank did many strategy changes to help make the bank or investment company as unique, for eg. Those that lend the money for mortgage, the citi has came forward and offer loan in an attractive interest to the customers.

The above factors mentioned here which performs the major role for change in the company. I've not shown down all the factors. No matter the factor that's not important, organisational change is the process which relates to growth of the organisation. Its inability or success however the change is vital to the company to attain the organisational target.

2. 3 Learning resource Implications : Resources are the major factors of the company. The better resources can bring the earnings and chance to the organisation. Organisation use different resources to accomplish their goals. The major resources utilized by the company are explained below

1. People Resources

2. Financial Resources

3. Physical Resources

Human Resources : Human resources is the most important resources in the company. They maintain all the department in the organisation like, admin, cafertaria, marketing, company etc. HR team is the main one who recruit people for other department. If a new process involves the organisation they are one who recruit people according to the criteria of the process. HR team helps other roles in the organisation like employees needs and trainings etc. To achive the organisational goal change is a lot needed for organisation.

Financial Resources : Finance is very much important to the organisation, devoid of that nothing can be carried out. For every and everything we need finance. Eg to provide training to employees and induction to new people for every and everything we need money. So the company will give attention to finance, they need a good productivity with minimal budget. Within the recession period lots of the banks have experienced the problems. A number of the lenders have reduced the salary of the employees of the lender.

Physical Resources : Physical resources support the recruiting department to get the job done properly in a right way. For eg recruiting cannot do all the task devoid of proper physical resources. Infrastructure, transportation, machine are arriving under the physical resources which can help for human resources and mutually they can achieve for organisational expansion.

3. 1 Systems of regarding stakeholders

Stakeholders are the people who have desire for the company or have affect or vitality over it. For changes in the organisation stakeholders plays a significant role. The inner stakeholders have more power and even more interest. Some have low powe and high interest. Stakeholders support is very essential to organisation devoid of their support changes is extremely hard.

The Key stake holders may divide into two categories

Internal and

External

Internal Stakeholders : Internal stakeholders are people who work inside the company is called interior stakeholders. For eg customer, employees and management. They are the most reliable to the changes going on in the company.

External Stakeholders: The individuals who are outside the company are called exterior stakeholders. For eg provider, buyer, federal etc.

Stakeholders of Citibank: Citibank stakeholders play a significant role in changes of organisation. They are the one who accept change and make it successful. Devoid of them changes is extremely hard. They have to agree to the change so that people can achieve our organisational aim. The stakeholder of Citibank can identify as pursuing

Investors : The buyers of loan company is vey important. For the reason that stakeholder is the investor. So he's more important to company. So they have got the full effect to changes in the organisation.

Employees: Employees of the company plays a major role in change of organisation. Once the changes need to the organisation, the direct support originates from the employees to change or resist the change. All of the employees of the bank in the organisation are fundamental stake holders of the organisation.

Management: Management is entirely responsible for the growth of the company. They are the one who execute the strategy and implement in way of life and make success for the organisation.

Customers: Cutomers will be the property to the company, when the changes place in the organisation customer target to the company. Aswell as loan company is very thinking about customer when the change is certainly going on.

Share holders: Shareholders are the owner of the company. The bank offers high priority to the shareholders, with out their decision the lender cannot change anything in the company. Shareholders have high interest and high priority in the company.

Community: Community is something very important, bank have to shop around whats happening because a few of the muslim banking institutions are offering interest free as that is religious to them. So like that we need to give low interest of home loan to customers, so that customer attention will turn around.

Government: Government is one kind of stakeholder in the organisation. Because our company is paying corporate tax to the government as well as they have the strong vitality on the business. Loan company obeys legislative roles made by the federal government.

Stakeholders of the company has every capacity to change in the company and put into action the change in day to day activities. After the stakeholder provides suggestion, management will think about the change and put into practice the same in to company. The stakeholders have significantly more privilege to occur the change in the organisation as they have more curiosity about the company.

3. 2 Involving stakeholders in the change management strategy
Involving stakeholders in the strategy change is depend on the realationship between the stakeholders and the company. The steps regarding stakeholders are below

Identifying their desire for organisation

Identify the result strategic challenges

Graph the partnership between

Recongnise the important stakeholder from the organisation

As per mendelows matrix the stakeholders of categorisation is explained below

High ability + High interest = Shareholders, Executive body

High Electric power + Low interest = Government,

Low vitality + High interest = Employees, shareholders

Low ability + Low interest rate = Customers, community

3. 3 Analysis of the systems used to entail stakeholders

Change in the company will be success only if we regularly do the audit check on that particular changes. So we can be aware of whats taking place because the impact of failing of a powerful change can be very high, sacrificing in market, changing in senior management, sacrificing of employees.

In the recent Citibank has made a significant changes in the organisaiton : They have subject matter services, online services those who give the money for mortage is very low interest to the cutomers. By implementing this changes they may have used some methods to involve its stakeholder in the change management strategy.

Meetings : Citibank has set up ending up in his stakeholders to share the view of change in the organisational strategy

Coaching: 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 requires a change, so the organisation should come front and present training about the other process, so that staff should prepare yourself to simply accept the change.

Delegating: Its one of the methods to involve the stake holders in the change management process. The management can assign a few of the duty by dividing between your team to delegate the task properly. This will make a huge change process in the organisation.

Presentation: It is one of the useful methods to understand the stakeholder. The bank will set up power point presentation and make them understand what we are doing in the company. In order that stakeholders are aware of that which we are doing in the company.

3. 4 Resistance to change

Resistance to change can be explained as an person or team engaging in acts to avoid or disrupt an attempt to expose change. Amount of resistance itself can make different varieties from undergoing of change initiatives in the organisation.

Two types of resistance can be considered

Resistance to this content of change : A change in the technology or innovative to a particular reward for popularity.

Resistance to the process of change : This type of change is made for the influenced employees. Devoid of prior information a job is been given to the employees. After management recognizes they go for a change in the company.

Steps should be studied to control the amount of resistance of change in the company

Negotiation

Edit Review

Management should become aware of whats on offer in the organisation, because change in the organisation is something is not so easy to change. First the management teams go for the debate and involves the final outcome what should be executed or not in the organisation. Then again they need to set up the conference for the stakeholders, we have to explain the advantages of the changes in the organisation to shareholders and make sure they are understand. Finally we must communicate the changes to the employees.

We conclude for no matter what changes might maintain the organisaiton. And whichever the reason the changes have made necessary to execute in the company. The changes in the organisation is very much effective to achieve organisational aims.

Models of Strategic Change
There are many models of proper change

7S Model - Mckinsey

Five periods transition circle - Kulber - Rose

Eight steps to successful change - John p kotters

Change management model - Kurt luwin

Casual Change model - Burke - Litwin

7S style of Mckinsey : The 7S model can be used in a variety of situation where an alignment point of view is useful, underneath are the following examples

It helps to improve the performance of the company

Managers are willing to examine and find out its intent and reason and execute the model

It will help to generate a great business

Strategy : Plan for allocation of a company scarce resources, overtime to attain recognized goals.

Structure : The organisation is well structured and centralized.

System : Daily work in organisation and procedures should be follow employee

Shared Prices: This deals a major value to the business that influence the corporate culture and the general work in organisation.

Style: The key role of administrator is implemented in the company.

Staff: Quantity of employees in the company.

Skills: Very skilled employees are working in the company.

The Mckinsey 7S model requires seven interdependent factors which

are grouped as either hard or very soft elements

Hard elements are Strategy, Structure and System.

Soft elements are Shared worth, skills, style and staff.

"Hard" elements are easier to explain or identify and management can immediately influence them: They are strategy statements; business charts and reporting lines; and formal processes and IT systems.

"Soft" elements, on the other hands, can become more difficult to spell it out, and are less tangible plus more affected by culture. However, these delicate elements are as important as the hard elements if the business is likely to be successful.

Placing Shared Prices in the middle of the model emphasizes these ideals are central to the development of all the other critical elements. The company's composition, strategy, systems, style, personnel and skills all stem from why the business was originally created, and what it stands for. The original eyesight of the company was developed from the principles of the creators. As the worth change, so do all the other elements.

1. 2 Assessments of relevance of types of strategic change

Organisation is making changes based on the current situation and current market. There are so many models in tactical change but we cannot execute all the strategy into the organisation. We need to implement the correct strategy in the right time to do the success of the organisation. Among the list of other models of strategic change Kurt Lewins model is used in almost all of the circumstances.

Organisation should use this model for tactical change for organisational development. For a change company should change the chief professional officer and the managing director for reaching the organisational goal. In order that new managing director introduce new online bank service and atm service. At the start the employees wont accept the change. But down the road we should tell the advantage of the changes into the organisation. Then your new executive of the bank get a change to manage the company.

First the lender should organise the meeting with the branch director and the whole employee of the organisation and the backend team. And they should make understand the changes and advantages to the organisation. When the managers understand the value of change in the organisation, then they will cascade the meaning to the employees, in this manner all the employees will ready for the change and move because of their comfort zone.

Secondly the management should be aware of changes is very important in the company. This stage of change is needed when the problem develops for the organisation. The changes will make the employees training, mentoring, groupdiscussion, so that employees could learn the changes and use in the task.

At the finish change has been made now the professionals and employees mutually should perform and achieve the goals of the organisaiton.

1. 3 Analysis of the worthiness of using tactical interventions techniques in organisations

The field of organisation by using a variety of functions, solutions, methods, techniques, applications to address organisational issues and to achieve the organisational aim and to improve the performance of the company.

Human process interventions

With today's strong importance on human values. The following interventions are getting a great deal to the organisaiton. And this will change the company to different reach over the customers. The human being process can do a job and make them understand the great things about change within the organisation. The following interventions will be beneficial to change the jobs in the organization. New employees, different cultures working alongside one another, many grievances among organizational members, many conflicts, low morale, high turnover, ineffective teams, etc.

Guiding Individuals

Training

Counselling

Motivating

Mentoring

Leading in front

Group based

Group Discussion

Built the team

Management conflict

Virtual teams

Self aimed work teams

These proper change interventions will make a huge change in the business. The organization arranged training for the employees and they should keep an eye on the self evaluation of the staff. This can make the change in functional system efficiently.

4. 1 Develop appropriate model for change

Today corporation face immediate change like never before, Globalization has increased the market and opportunities for expansion and revenue. Capability to control change to meet up with the stakeholders needs is vital by todays market leaders and professionals.

Step one: Create urgency

For change to happen, it can help if the complete company would like it. Create a sense of urgency around the need for change. This might help you spark the original drive to get things moving.

Identify potential threats, and develop situations showing what can happen in the foreseeable future.

Examine opportunities that needs to be, or could be, exploited.

Start honest discussions, and give active and convincing reasons to get people chatting and thinking.

Request support from customers, outside stakeholders and industry visitors to strengthen your argument.

Step Two: Form a robust Coalition

Identify the true leaders in your organization.

Ask for an emotional determination from these key people.

Work on team development inside your change coalition.

Check your team for vulnerable areas, and make sure that you have a good mixture of men and women from different departments and various levels within your company.

Step Three: Make a Perspective for Change

A clear eyesight can help everyone understand why you're asking those to do something. When people see for themselves what you're seeking to achieve, then your directives they're given makes more sense.

Create a strategy to do that perspective.

Ensure that your change coalition can explain the perspective in 5 minutes or less.

Practice your "vision conversation" often.

Step Four: Converse the Vision

It's also important to "walk the converse. " What you do is a lot more important - and believable - than what you say. Demonstrate the sort of behaviour that you want from others.

Talk often about your change perspective.

Openly and frankly address individuals' concerns and anxieties.

Apply your vision to all facets of operations - from training to performance reviews. Tie everything back to the eyesight.

Lead by example.

Step Five: Remove Obstacles

If you follow these steps and reach this aspect in the change process, you've been talking about your eyesight and building buy-in from all levels of the organization. Hopefully, your personnel would like to get occupied and achieve the huge benefits that you've been promoting.

Figure: Drive field analysis

In the above amount, we see that we now have some pushes which want the proposed change called travelling force

Firstly recognized these both forces to put into action change in right way. Then it set up sitting with the restraining forces to develop a sense of urgency into them and use the travelling pushes to motivate the opposition rather than contradiction.

Secondly the bank found some powerful people who favorably support the need for change. It developed coalition with specialist, delegation, status and expertise. In addition, it ensures the team to have a good mix of individuals from different levels and different areas.

Finally, it developed a sense of need of change in every kind of stakeholders of the bank e. g. customers, employees, directors, shareholders, community yet others. It also introduced reward people to make change took place.

4. 2 Intend to apply a model for change

Organisations use some tools to implement a model for change. Organisational development, business process re-engineering, delayring and rightsizing, force and draw strategy are the most frequent tools used for implementation of change model.

Business process re-engineering: Business process reengineering (often referred to by the acronym BPR) is the main manner in which organizations become more efficient and modernize.

The two cornerstones of any group will be the people and the operations. Even the function of documenting business processes by themselves will typically improve organizational efficiency by 10%. engineering changes an organization with techniques that directly influence performance.

1) Envision new processes

2) Initiating change

3) Process diagnosis

4) Process redesign

5) Reconstruction

6) Process monitoring

The most popular approach to process improvement is to take an under-performing process, which is key to achieving the business enterprise objectives, and set about a systematic examination to determine the most important areas for overhauling. They are then tackled on the project-by-project basis. The analysis and improvement is tackled with a short-term Process Improvement Team drawn mainly from people within the procedure.

We may conclude the idea in this way that organisations need to work with techniques before execution of any change. Often it may bring catastrophe for the company by resistance pressure to change. In addition, it recommended that various tools or techniques can be utilized in integrated method for execution of change in the organisations.

4. 3 Appropriate steps to monitor progress

Effective change is needed to monitor the progress of change. Monitoring the progress of change is most important for effective change. Change is an activity, where there might be some incorrect with people plus some wrong with process. Change does not take place without proper monitoring over the process. Managers must keep an eye on the ongoing change and the result of this change. The evaluation of change progress can separate into pursuing categories.

Goal-based evaluation

Process centered evaluation

Outcome based mostly evaluation

Goal-based evaluation: All changes are happened predicated on some goal or goals. Once the change is going on, the change agent should focus on these goals, is the purpose of this change achieving or not.

Process-based analysis: Change must go through the process. Change is depending on the right process, the better the procedure, the change would be more effective. On this change process, someplace may any blunder; professionals should look onto it and beat the mistake in proper way, or sometimes he/she can alter or review the procedure again.

Out-come based evaluation: Final result is key factor of organisational changes. That's the reason, the evaluation of the change progress should be final result based. What was the target of the proposed change and how much achieved should be determined. Otherwise, it'll be waste material of time, waste of money.

Bank used these techniques of progress monitoring of change.

Meetings: Loan company should arranged conferences with this groups mixed up in change process to screen the progress.

Reporting: Bank also used to maintain reporting of progress of change on weekly, regular monthly and quarterly basis. This is a strong indicator of the improvement.

Quality circles: It is another tool utilized by Lender to monitoring the change progress. It formed an organization containing few members to monitor the overall quality of the change improvement.

Milestones: All changes have a milestone. Without any deadline no improvement can take place. Lender prioritize this tool of change progress to evaluate its change process.

Conclusion

Today, groups and organizations face speedy change like nothing you've seen prior. Globalization has increased the market segments and opportunities for additional growth and earnings. However, more and more diverse market segments have a wide variety of needs and objectives that must be understood if they are to become strong customers and collaborators. Thus, the capability to control change, while carrying on to meet the needs of stakeholders, is an essential skill required by today's market leaders and managers.

Bank made changes in the company during last couple of years to cop up with global current economic climate and competitive market. The bank used different strategic change model to meet the required change for organisational goals and targets. It also used the strategic intervention techniques efficiently to put into action the change e. g. business process re-engineering, organisational development, ethnical change etc in proper way.

It is recommended that the change process should involve all kind of stakeholders of company. It is vital to involve people from different levels and various departments of the organisation, make them understand the necessity for change, identify the driving a motor vehicle factors of change, control the resistance to improve by communication, delegation and redesign the change process and finally create an urgency of change one of the stakeholders. If the people know their own responsibility for the change, then it will become possible for the management to make change effective.

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)