Positioning for Change: With People, Culture and Management: The Focus of Banks to Grow Their Businesses in Today's Increasingly Complex and Uncertain External Environment Has Brought Some Major Changes and Rethinking about How to Manage People and Transform the Internal Culture. (on the Cutting Edge)

By O'Connell, Bryan | Journal of Banking and Financial Services, December 2002 | Go to article overview

Positioning for Change: With People, Culture and Management: The Focus of Banks to Grow Their Businesses in Today's Increasingly Complex and Uncertain External Environment Has Brought Some Major Changes and Rethinking about How to Manage People and Transform the Internal Culture. (on the Cutting Edge)


O'Connell, Bryan, Journal of Banking and Financial Services


Already the industry has gone through much change and transformation over the last ten years, affecting people, culture and management in this process. Many jobs have been lost, but have been replaced with new people with different skills and ways of thinking.

Driving cultural change

It is important to recognise what has driven this change. In many ways, the internal management and culture in banks is a response to the pressures of change that come from the external environment, as well as the banks' own strategic initiatives.

As a result, the industry has transformed to such an extent that it is absolutely critical that fundamental adjustments are made to align how management handles people, its most precious resource.

There are many external forces applying pressure to staff. Time scales, for instance, have been reduced to internet time in which everyone demands immediate answers. There's plenty of information from many new sources, but it's often a quandary as to what is valuable and should be read.

Because customer expectations--and their power to get what they want--keep rising, there is constant pressure to be more customer focused. Existing and new competition threaten many segments of a bank's business and the forces of globalisation just keep rolling on, constantly affecting a wide gamut of retail, business and corporate financial markets.

Change is constant and a very permanent part of the landscape. There is greater volatility in financial markets and a much greater degree of operational risk.

Security has also become a major concern and there is more confusion about how to create value from technology. We need to be prepared for the unknown more than at any other time.

As a result, the internal culture and management of banks has lagged in terms of keeping pace with the changes and complexities faced. Unless the issue is successfully addressed, it has the potential to impede growth.

What the banks are doing

Productive culture is what is being aimed for and is the key to further successful growth strategies. Part of this is focused on looking across the business of the bank and setting targets that stretch individuals, increase performance and motivate people.

Many banks today talk about unleashing the energy of individuals and encouraging them to work at their best.

Some banks are driving this very hard.

The cultural focus at the ANZ Bank has shifted to driving more accountability, achievement, customer focus and general continuous improvement whilst maintaining cost reductions and shareholder value. Importantly what's `out' is bureaucracy, hierarchy, command and control and short-term focus.

The National Australia Bank is also addressing similar issues. According to the bank's executive general manager for people and culture, Peter McKinnon, the bank is focusing on innovation--diversity, creating a difference, new ideas and new perspectives.

`This involves bringing in executives and others with different backgrounds and experiences,' he says.

Banks are also measuring, using and publicising staff satisfaction rates. The well accepted view is the greater the satisfaction, the greater the productivity and performance which will result in turn in greater customer satisfaction and also execution of the strategy.

Leadership and management

A major precondition to achieving this transformation of culture revolves around having new forms of leadership and management. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Positioning for Change: With People, Culture and Management: The Focus of Banks to Grow Their Businesses in Today's Increasingly Complex and Uncertain External Environment Has Brought Some Major Changes and Rethinking about How to Manage People and Transform the Internal Culture. (on the Cutting Edge)
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.