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Leading organization (Barclays)

1.0 Executive Summary

The main goal of the study is to identify relevant changes that may be incorporated in Barclays so that it can cope with dynamic economic business environment. The internal and external environment poses challenges on Barclays bank change management strategies. The report will analyses data from different sources such as internet, online tutorials, google books, and past dissertations and thesis. Briefly, the study will analyses challenges that Barclays bank has incurred in the recent and past years that stems from change. Nowadays, the magnitude of global, competitive, and environmental market is unpresented with change. The global state of competition is extremely fast, that is, volatile with sudden downturns and explosive upsurges and chaos that describes the economies competitive change direction. The study will analyses how banking sector can cope with this unpredictable world on building on flexibility and enormous amount of change. Although, change management managers cannot predict the future, there should try to establish means on how to convert risks in case of any mishap as stated in this report. The report will analyze how this banking sector can take advantage of competition opportunities to outdo competitors and maintain its leading position. Finally, the report will offer recommendations for change management implementation and conclusion.

2.0 Introduction

Change is vital in financial businesses such as Barclays that incurs highly competitive economic, market, and customers share environment. Advancing technologies, macroeconomic change, and financial liberation are the leading changes that impacts Barclays bank. Fortunately, the bank will employ SWOT analyses change initiative to address these changes and improve its market competition. Change is a dynamic process in business sector putting into consideration economic condition, completion, and goods lifecycle (Billings, Capie 2004). Barclays needs to change its operating condition in order to be in line with upcoming and recent financial business condition. Leaders are accredited for financial business organizations change management. In short, the director of Barclays bank is responsible for managing change in this corporate. The internal and external business environment factors will assist in analyzing challenges that Barclays bank is facing currently (Onsarigo, Paul & Selvam, 2017). The report will also offer brief recommendations on how Barclays can improve its financial stand in competitive economic world. Lastly, the study will discuss the most ideal leadership style to be employed by the director of Barclays bank.

Barclays bank is a financial business that concentrates on cash flow such as deposits, loans, loss and interest in a given state. In line with that, Barclays is a bank focused in serving customers by helping them realize their financial that is committed in serving the United Kingdom. Barclay bank covers fifty states across America, Europe, Middle East, Africa, and Asia. It has given more than 130,000 jobs opportunities to different communities worldwide. Rogers, 2016 states that, it is committed in serving people through banking systems financial transparency. Thus, Barclays is an international corporate that gives expert solutions support and insights to individuals, groups, and companies.

Change is vital in every corporate, It helps the business to deal with competitive environment that is constantly changing. Many challenges may stem when they try to implement change in a given organization. For instance, Barclays bank in this case might loss its employee loyalty and customer’s base who don’t apprehend the importance of change. This research was developed to analyze the impacts of change on leading organization. It was supposedly intent to propose ideal analysis on how to develop change in a given organization in order to develop the desired corporate. The CXEO of Barclays is responsible for enhancing change among employees by ensuring that they follow certain strategies. The various skilled change management stakeholder are made available to initiate, establish, and implement this process. , Finally, the organization should involve employees when implementing change because there are vital bodies in ensuring successful change implementation process.

Growth rates, interest’s rate, and inflation rates are economic factors that influence organizational operations. These are key determinates of change. Although, there are positive signs of running business in UK, where these factors are quite favorable. During analysis, there was higher economic growth in UK. The analysis revealed that domestic products were 2.7% higher during peak seasons. However, operating states financial recession impacts Barclays negatively because of reduced citizen’s disposable income initiating a negative demand consumption. Thus, economical factors are significant tools to be considered during change implementation process. Socio-cultural factors are believed to influence Barclays bank business performance. Higher levels of education and overall literacy has made people more conscious with digitalized ways especially on mobile banking systems. So Barclays bank needs to offer digitalized means of banking such as service access through mobile phone apps to ease money withdrawal and deposits. Barclays should consider elderly people adoption of internet things in money savings, transfer, and deposits. As the customers, are becoming more informed, then, Barclays should devise means on how to gain from improved social and cultural factors. Thus, Barclays bank internal culture must be improved to attract more customers and aid the change process. Customer relations and supply chain flow is highly dependent on advancing technology. Barclays should employ advancing technology to increase customer’s satisfaction using devices such as radio frequency and online transfer system. Technology use in giving services helps bank to gain competitive business advantage. The corporates environmental factors are constantly changing Barclays bank social responsibilities. Most societal concerns stems from company environmental issues such as it’s involved in communities development project and job opportunities to neighboring citizens. Barclay’s corporate communal responsibility it is on the way in which corporate observes stakeholder’s obligation. The company should also be concerned on how to reduce environmental exploitation and preserve energy. Legal factors does influence the change process in Barclays bank. There is no distinct organization that operates without legal issues. Mortgages, loans, and credit cards are the leading financial services in which Barclays bank is engaged in. It has to consider customers privacy legal issue. There are several governing bodies that monitors operations of business activities. Thus, legal factors consideration is essential in aiding change management process.

3.0 Key Changes and appropriate models

Barclays bank incurs many challenges on daily basis that originates primary from internal and external business factors;

3.1 Financial liberalization; although it can assist in deriving enormous benefits this process great challenge on economic prosperity and change management development. Financial liberalization is the act of removing government intervention from bank markets. Although, financial liberalization can attract drastic economic growth, it may increase Barclays bank financial vulnerability and even attract financial crisis.

3.1.1 Urgency to change; Addressing financial liberalization issues, Barclays Bank will be in a position to minimize financial constraints and thereby diminish investments cash flow sensitivity. These will help to increase firm’s investments which depends primary on internal funds. Thereby, Barclays needs to barn economic restrictions that limits financial growth.

3.1.2 Benefits of change; Free trade advantages, inward investments, economies of scale, improved competition, and lower prices are some of the leading benefits of financial liberalization.

3.2 Advancing technologies; this is the second key challenge that Barclays Bank encounters on daily basis. Wearables, partnerships, digital and mobile banking, automated economic services, apple store experience style, Non – Banks proliferation, upgraded ATMS, and block chain which transforms financial and banking services are some of upcoming banking technologies that Barclays bank should employ in order to maintain its competitive position (Console, 2005).

3.2.1Urgency to change; Upcoming technologies have modified banking sector from paper based to digitized banking sector. All banking and managing systems has been changed. It is now changing bank’s customer’s service delivery. Barclays bank should be in a position to employ advanced technologies in its operations although they are costly and demanding in order to improve its overall performance and efficiency.

3.2.3 Benefits of change; Barclays bank will be in a position to maintain and improve its well accredited status in the business world. Incorporation of advanced technologies will also ease its functionality and service provision. This will assist in increasing customer’s base and minimizing employee’s redundancy.

3.3 Macroeconomic Environment Change; this refers to general economic condition of a given state influenced by worldwide financial markets and interest rates changes. It concerns technological, socio cultural factors, ecological factors, political factors, economic, and demographic factors. This forces are believed to shape financial business opportunities, although they poses great threat to the corporate. The macro business environment concerns the entire economy instead of a particular sector. Generally, this environment includes the fiscal, monetary, spending, employment, inflation, and GDP trends.

3.3.1 Urgency to change; the microenvironment is believed to determine financial business operations through monitored cash flows and other external factors such as employment. People’s spending, employment rates, GDP trends, and inflation are major determinant of financial business as Barclay’s economics’ stand.

3.3.2 Benefits of change; putting into great consideration macroeconomic factors, Barclays bank will be able to operate effectively and efficiently in a given states. It will shape its financial position in the business world. The company will also be able to reap benefits from economies of scale and minimize risk chances such as financial breakdown.

SWOT Analysis for Change Management

  Strengths Weaknesses
  ·      Best business market in the UK and worldwide ·      Higher technology and market exploitation costs
  ·      Unique selling strategies ·      Compliance costs
  Stakeholders and customers accredited satisfaction ·      Change resistance
  ·      History of running business ·      Reduced application of advancing technologies
Internal factors ·      High brand equity ·      Tax avoidance
  ·      Independent traders ·      Management uncertainty
  ·      More than 130,000 employees ·      Unexpected changes in microenvironment (Cox, Soobiah, 2018).
  ·      It has branches in more than 50 countries worldwide  
  Opportunities Threats
  ·      Banking services ·      Competition from other banking institutions.
  ·      Diversification opportunities ·      Constant changes in banking sectors.
  ·      Enhanced worldwide market coverage  

 

3.2 Change Vision

Barclays bank exists in an environment that is dynamic, and thus this organizations vision, mission, direction, corporate goals will be implemented with a turbulence notion in order to develop useful end outcomes. Thus, Barclays bank vision is to develop on the strengths as a wholesale bank and diversified consumer tastes anchored in US and UK home markets and global outreach.

Barclays stands as a business lender and retailer bank till 329 years ago. It has created a leading business market with use of Barclay card (Batiz – Lazo & Wardly 2007). Again, in the past 20 years, it has developed strong banking investment Barclays bank, dynamic business environment is exposed to competition because of various changes triggered by external and internal factors such as economic environment, politics, evolving technologies, and changes in customer needs. In order to operate efficiently, Barclays should employ change management in response to externally and internally driven competition governed by its vision. The external business environment concerns the industry, and the remote business environment. Remote environment concerns social cultural, technological, ecological, demographic, political, and economic factors. Barclays should try and analyze preceding competitive forces (Khan, 2018). Analysis should focus on identifying and evaluating competitor’s information. Determine competitor’s capacities, strengths and weakness, it will make it possible for Barclays bank management to devise ways on how to outdo them. Customers, credit0ors, suppliers, and competitors are key variables in economic business world.

3.3 The Future and Present Change Gap

There is notable difference between the present and ancient ways of working in Barclays Bank. In the past, Barclays bank had overall few number of competitors in global and home market. Nowadays, there are plentiful of banking sectors, money savings and transfer systems worldwide. This imposes a great challenge on Barclays bank that must struggle to maintain its competitive business stand and leading position. In line with that, Barclays bank management should ensure continued effort to improve ways of working and employ advancing technologies.

Some years back, Barclays bank had overall less number of branches worldwide, thus its coverage was minimal and hence ease of supervision and banking services improvement system (Drake, 2001). Nowadays, the bank covers, 5o countries worldwide which poses a great challenge on this bank management to improve on service quality provision and ensure its sustenance in global markets. These days, Barclays bank has a large number of employees from different ethnic groups unlike in the past when it operated primary in home market. Rohmetra and Smith, 2004, state that there is need for change management leaders to put into consideration markets diversity issues on such matters as beliefs, completion, consumer insight, government regulations, and demographic factors. Addressing these issue is a great challenge, demanding and impacts more costs. Lastly, some years back, Barclays bank was paper industry but nowadays is digitalized sector focused on mobile banking. Thus, the change management team should try and improve digitalized money transfer and saving system in order to enhance change implementation.

3.4 Key Stakeholders in the change initiative

Barclays bank leaders, managers, and directors are the leading stakeholders in establishing change initiative. The stakeholders should embrace advancing technologies, financial liberalization, and macroeconomic environment changes positively. Barclays bank is bound to union contracts that actively seek to improve organization financial stand and customer base (Hussain, Matlay 2007). Key change initiative stakeholders should portray skilled expertise and improve personnel relations that will aid change management process. Core stakeholder’s competencies are key in developing success of any organization.

Stakeholders should establish well defined change policies, requirements, and procedures that are vital in developing digitized sector and maintaining its financial stand. Given the fact that, Barclays bank operates on turbulent environment, possession of essential skills and knowledge by change development team will help to aid its competitiveness. Stakeholders are driving force behind every enviable success especially among leading corporate. They are the people that ensure corporate plans are implemented in accordance to organization goals and realization of these goals promptly.

The following are some of the notable challenges that change management stakeholders might encounter when implementing change;

  • Mistrust
  • Lack of adequate funds to sponsor the process
  • Government regulations
  • Fear of unknown
  • Bad timing
  • Change misunderstanding
  • Poor communication

The resistance to change results from fear of unknown, mistrust, bad timing, governmental regulations, poor communication and misunderstanding change. Many leaders in organizational don’t understand the need to change. Management might be afraid to embrace change due to fear of unknown that might result to failure to implement this process. Lack of clear lines of communication between the stakeholders, manages and employees, and entire Barclays associate attracts hindrances to change. Change adoption is quite hard when employees are not informed and consulted in advance. The change management might possess inadequate skills to establish and implement change. When entire Barclays bank associate do to understand the importance of change it will be quite hard for stakeholders to implement this change. Bad timing of change implementation process might pose challenges and peoples maybe unwilling to embrace this change. Government rules and regulations are major constraints of the change process. Lastly, mistrust among employees and change management might attract negative perception on the change process and their might be unwell to corporate during this vital transformation.

The key steps of addressing change resistance;

  • Organization current state examination, hereby, Stakeholders needs to diagnose the issues that Barclays bank ids currently battling. Then, propose an ideal change to overcome these challenges. When workers are promptly informed on importance of change their will be will to corporate.
  • Designing change implementation steps, this involves picturing the main aim of this change and expected challenges and benefits. Thus is the most ideal stage in enhancing change. Some key personnel will be kept in order to reduce employee’s anxiety and ensure overall success of change process.
  • Change itself implementation, this last step will be there to ensure that change management team has made it a possibility. At this step, employees will be relaxed although the corporate might incur some benefits or loss when customers are changing to embrace this change.

Appropriate skills of change management stakeholders;

  • Willingness and abilities to take risks
  • Broad knowledge on organization culture, structure, and leadership style.
  • Influential
  • Commitment
  • Trustful
  • Highly apprehended by corporates employees
  • Specialist and expatriate in global markets.

The change management team will accomplish the following through proper change implementation;

  • Barclays bank will maintain its corporate image and good reputation in UK home market and global markets.
  • It will establish a unique selling point that will impact stakeholders and customer satisfaction.
  • It will maintain a history of running a reputable business.
  • Barclays bank will im0prove its financial stand.
  • Customers will also be enhanced in a great way.
  • It will offer more job opportunities worldwide and in home markets.
  • It will be in a position to expand its coverage in different states.
  • Barclays will attract significant online pioneers.
  • Overall improved banking services.
  • Improved diversification and raw materials acquisition.
  • Increased willingness of government bodies to support this company.
  • Notable diversification in areas of interests and operation.
  • Tie ups and small chain business acquisition.

Thus, Barclays bank successful change process will help improve this company efficiency. Service quality and internal environment will also be enhanced. The existing, Barclay’s customer’s loyalty and Barclay’s reputation will also be enhanced. Barclay’s change management will help in reducing expenditure upsurges and overall corporate’s costs. In short, Barclays bank will be able to reap change benefits within a short span of time.

However, in cases where Barclays bank management will neglect the change process. Then the following challenges will be inevitable;

  • More overseas marketing issues.
  • High mergers acquisition.
  • Limited coverage and design due to competitive force.
  • Diverted market interests.
  • Changes in market demands and inclination.
  • Management Uncertainty.
  • Reduced presence in upcoming markets

Recommendations and Conclusion

Barclays bank operates in more than 52 countries worldwide and its operations and activities are influenced by different states political conditions. Tariffs, trade restrictions, and tax policies created by government dictates Barclays bank business change management process. Foreign government legislation process might limit Barclays Bank operations and ability to operate effectively in overseas state or else barn they offer to operate there completely. Barclays bank might be forced to employ a large number of students and elderly people due to foreign countries regulations. This a great challenge on change management especially when implementing strategies on how to improve labor efficiency. For example, back in 2011, the UK government increased the VAT from around 17.5% to 20% which affected Barclays bank profits levels.

Change in business is the only strategy that will influence business competition issues. Change improvement benefits are notable incorporates net value Change influences profitable reap where people are able to generates more advantages and benefits. Change will ensure increased competition, good reputation, and a large customer base. The continuous development toolkit is ideal in implementing Barclays bank final changes setups. Banking system requirement for change is the main purpose that drew development of change management leaders and stakeholders. Improved technology, reduced overall business costs, and resolved economics are key benefits of successful change implementation.

The study is essential to change management leaders who will apply findings to enhance change implementation in dynamic financial sector. The scholars and researcher will benefit from this study as their will get vital information on how change management is ideal in leading organization. It will also enhance their knowledge base on financial business sector. Stakeholders and policymakers like that of the government will apply findings in formulating different policies that governs banking sectors. Business community will benefit from research findings on how to establish strategic responses to dynamic and complex environments. Lastly, commercial banks namely Barclays will apply findings in setting appropriate changes and change implementation. The study concerns itself in change management implementation. It focuses on change management that economic organizations employ in order to remain competitive in business world. The various environmental factors and challenges created by change has also been exploited. For a corporate to remain competitive according to Sallyanne, 2004, it must search for means on how to improve change and growth that pose demand and threat response. The change management managers should be conversant with organizations strength, weaknesses, opportunities and threats in order to implement change successfully. Thereby, create paradigms that states what will work in the given business. Although, the established paradigm might change with changes in competitive forces, and environmental factors.

Banking sector being a turbulent environment, corporates must change them strategies and beliefs in order to maintain EVR (environment values resources) congruence. The banking sector environment is quite uncertain and hence more dynamic and complex. This dynamism is initiated by drastic technological changes involving processes and products. The environment becomes complex when changes and forces shaping them are hard to understand. Often, dynamism and complexity occurs relatively.

The relationship between environment, structure, and strategy is exploited exhaustively, unlike change dynamics which is somehow neglected in change management. The increase of environment changes, heterogeneity, and hostility are linked to certain changes that are characterized by strategy making means. Wilson, 2004 argues that, the relationship between change and environment is stronger in successful firms unlike unsuccessful ones. Several competitive changes stems from technological advancement, globalization, and liberation and from enlightened customers. These changes creates competition, thus immediate demand on directors to develop financial performance and productivity. Barclays bank being one of those corporates that is facing environmental changes should employ proper strategies in response to this issue.

The final change implementation process should focus on management transition. Responsibilities division, resources allocation, and planning are idea tools in change implementation. The change management team are required to create enthuse among employees through goal sharing and vision created by change. The need for change should be upon employees. The organizations management must observe staff response to change in order to ascertain its success. Finally, the change process should be implemented constantly in order to enhance its successful chances.

Conclusively, it is clear that Barclays bank is operating in a dynamic environment and change management must devise means on how to employ upcoming changes. Although, the Barclay bank has applied several efforts in order to cope with competition, the corporate has not yet realized its organization objective. This is clear because environmental turbulence in banking industry is a great challenge.            Barclays should try to remain creative when distributing various goods and services. Innovation is a key aspect in banking industry. In banking sector, competition is stiff and Barclays bank has to adjust to ideal changes. Banking sectors have to constantly relate with the given environment as a source of input. That is, the external environment offers market and resources to banking sector. The industry effects external environment through industrial, geographical, ecological, technological, sociological, and economic factors. Thus, the external environment dictates organization threats and opportunities in the entire industry’s life cycle.

References

Batiz – Lazo, Wardly 2007. Banking on Change: Information systems and Technologies in UK High Street Banking, 1919 – 11969. Financial History Riview_Cambridge.org

Billings, Capie 2004. The Development Management Accounting in UK Clearing Banks, 1920 – 70. Accounting, Business & Financial History _ Tylor & Francis.

Consoli, 2005. The dynamics of technological change in UK retail banking services: An evolutionary perspective. Research Policy _ Elsevier.

Cox, Soobiah, 2018. Evidence on post – financial crisis corporate culture in UK listed banks .Journal of Banking Regulation _ Springer.

Drake, 2001. Efficiency and Productivity Change in UK banking. Applied Financial Economics _ Tylor and Francis.

Hussain, Matlay 2007. Financing Preferences of Ethnic Minority Owner/Managers in the UK. Journal of small Business and enterprise.

Khan, 2018. Risk Management Disclosures: Evidence from the UK banks. Higher Education service science management _ joherd, com

Onsarigo, Paul, Selvam, (2017). Technical Efficiency for Strategic change and Global Competitiveness. Strategic Change _ researchgate.net

Rogers, (2016). The big four British Banks: Organization, Strategy and the future. Books. Google.com

Rohmetra, Smith, 2004. Training and Development in the Changing Technological Environment: the case of Barclays, UK. Journal of Management Research _search proquest.com

Sallyanne, 2004. Corporate Social Responsibility and structural change in financial services. Managerial Auditing Journal _ emaraldinsight.com

Wilson, 2004. Implementing Base II: A Case Study on the Barclays Base I II preparations. Journal of financial Regulation and Compliance _ emeraldinsight.com



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