DYK Accenture case 2

Do You Know Accenture Competition

Case Study 2 : Transformational Change Management for Merger Regional Bank

By : Roria Angelina E.P (Gadjah Mada University)

 

 

I was asked to lead a team that would help ABC XY Bank prepare for changes by managing complex organizational and workforce transitions once the business and IT solution were in place. One of the challenges is to help ABC XY leadership and the integration team in carrying out an effective transition to a new way of working. I guided by Accenture Transformational Change Management Methods Framework to make a solution. And here is my solution.

 

First, our team will lead initial dialogue to the leader who involved in Bank X and Bank Y merger process to be ABC XY bank. This step will be a priority in this process that begin transformational change. By doing journey planning and creating value management strategy, this dialogue will gain commitment proceed that will guide all of the next process in transformational change.

After doing that, we assess a journey measurement and value realization and also issue definition and assessment that will become standard value or target value that must be achieved in this transformational change. Then, we continue to transform all of alignment that the bank have, like leadership, strategy, culture, business process, performance, organization, application and technology alignment. Finally, it can produce stakeholder engagement to operate ABC XY bank. The bank will always emphasize the ongoing dialogue that they ever had to do their activities.

There are some important things that must become priorities in transformational change in bank merger process, such as IT, human resources, and customer. After a merger or restructuring, there are many changes will be affect them like data migration, organization structural, employee and customer responses from both of the bank, X and Y.

IT Transformation

Formerly, both of the bank had their own IT system and network architectures. After merger to be ABC XY bank, the changes happen to their system such as new network architecture, needs for data migration, etc. SAP will be used to do this data centralization. Data centralization process will correct data duplication if it is found.

Human Resources

Many companies, therefore, do not effectively measure and manage one of their most critical and expensive assets : their people[1]. Human resource or people may have attitude change when receive information that tell the banks will be mergered. Some people might be enticed to stay and some others might decided to leave. That condition could make significant impact to ABC XY bank. Accenture has developed an approach that called “Human Capital Analytics” that enables organizations to leverage analytics in a way that improves workforce planning, more closely aligns organizational capabilities with business strategy and ultimately derives better business value from workforce talent.

 

 

From this HR analytics and also Accenture Transformational Change Framework, our team need an accurate assessment of the way things really are (“What happened”), diagnose the causes of whatever problems exist (“Why did it happen?”) and develop a degree a predictive and forecasting capabilities (“What should happen?”). All of those question are used to gain insight generation. That it will be used to gain insight validation and so on. Finally, ABC XY bank will have performance monitoring of their human resource in every level of the structural organization (finance, HR, Marketing, etc). By having it, ABC XY bank could know which employee are worth to be maintained.

Customer

Before the merger process begin, Bank X and Bank Y must give announcement to their customer about the merger. It will avoid their customer shock and decide to leave both of the Bank and go to their competitor (because of lack information during the merger process). The information must be communicated to the customer clearly from the beginning until the end of merger process. All of information can be communicated by providing facilities that can assure customer get update through hotline service, website, customer care, etc.

All of the step that are explained above should be done as good as possible by considering the Accenture transformation change management framework. By doing the change management well, the merger process until ABC XY bank begin to operate will be certainly success.

References :

1. Accenture. Human Capital Analytics : Generating insights to meet complex workforce, HR, and business challenges.

2. Accenture. Transformational Change Management Framework.

3. C. Barbara et al. Information Systems Management in Practice. 2004. Pearson Education International. New Jersey.

4. Accenture. Managing The Risks of a Changing Workforce.

5. Accenture. The High-Performance Workforce Study 2006.

 


[1] Accenture. Human Capital Analytics : Generating insights to meet complex workforce, HR, and business challenges.

13 Comments (+add yours?)

  1. roriaangelina
    Jan 10, 2011 @ 20:13:56

    Reply

  2. renath
    Jan 10, 2011 @ 20:17:23

    I think there’s no words I wanna say..how a great thinking..
    wonderful… 🙂

    it would be more interesting if you give some picture there..

    I hope you’ll win this “struggle” …

    Reply

  3. Andy Sumbayak
    Jan 10, 2011 @ 20:17:33

    that’s a great idea how to merge two banks.
    the methode is very good.
    thanks a lot for the information.

    Reply

  4. Arie Yohanes Dezvyanto
    Jan 10, 2011 @ 21:28:43

    For me, it is a nice analysis how you make the problem to be solved. I am interested in your idea that begins the steps with dialogue between the leaders of the former banks and make it as the first priority since the initial dialogue to determine next processes could be the hardest part. But I still cannot get your point that you want to deliver in the third paragraph. Maybe you should explain more about what the journey measurement and the value realization is and what is the object of your definition and assessment that you wrote. But the idea to make a standard value as an output was great. For the other things that you explained I can’t agree more. Regards.

    Reply

    • roriaangelina
      Jan 11, 2011 @ 13:27:31

      thank you for your suggestion…
      let me explain as possible as I can…
      During the transformational change in this merger process, as I know from my citation, managers tend to view the changes as successful without knowing why (they have no measurements or clear expectations about the change will produce). Therefore, journey measurement and value realization are important to be assessed to give the bank representation of their real target that should be achieved.

      I hope that my explanation can give you better understanding. I still wait for the next discussion..
      Regards.🙂

      Reply

      • Arie Yohanes Dezvyanto
        Jan 12, 2011 @ 22:41:05

        roriaangelina wrote:
        “…managers tend to view the changes as successful without knowing why (they have no measurements or clear expectations about the change will produce). Therefore, journey measurement and value realization are important to be assessed to give the bank representation of their real target that should be achieved.”

        Hmm…so, is it like a continuous evaluation and assessment to the implementation of the Guidelines which had been made in the Leader’s talk?
        If so, why managers don’t have the parameters about how effective the change is? Shouldn’t it been stated in the Guidelines?

        Arie Yohanes Dezvyanto wrote:
        “…what is the object of your definition and assessment that you wrote”
        roriaangelina wrote:
        “…and also issue definition and assessment that will become standard value or target value that must be achieved in this transformational change.”

        You haven’t answered my question yet. My question is about what definition you made (what did you define about?)? and What kind of assessment’s result you issued? Are they the output result of the evaluation?

  5. pebri
    Jan 10, 2011 @ 23:53:33

    This was good analysis but i found some lacking in your concept.i mean the details..
    EX:Costumer.It’s not an easy thing to defend the custumer’s trust through this merger so really need more consideration more than you’ve explained.i think need some explanation more than this.

    but over all it was inpirational and awesome.Gb u ro

    Reply

    • roriaangelina
      Jan 11, 2011 @ 13:03:15

      yeah, you’re right. I got it. It’s not easy to get customer trust during the merger process. But it doesn’t mean the bank can’t do anything to get it. In my opinion, by having services that will facilitate the communication between the customer and the bank, it can help the bank to convince them. Thank you so much for your suggestion. ^^

      Reply

  6. pebri
    Jan 11, 2011 @ 00:47:45

    be the #1,(lot of hope)

    Reply

  7. Brian
    Jan 11, 2011 @ 13:57:15

    Unlike any other blog who prefer to express the blog-owner emotion in one direction only, you brought a very interesting problem solving about two bank merger. No matter how complicated the process would be, we do understand the basic problem is about the communication. It’s good to have an initial dialog between top management from both banks which are about to be merged. As we know that even the top management couldn’t represent whole employee mind set, would it be better to have internal meeting with every employee from each bank to unify their target before initial meeting? Say, bank X’s top management has their internal meeting with their staff and employee (so does bank Y) then both banks represent their own mind set in initial meeting before they discuss further step for their merged future. I do believe that ” the internal meeting” step will make the initial dialog between the banks become more effective for a better future. Well, that’s all that I have in my mind for this blog. Overall, this blog is very informative with valuable information. Keep it going!

    Best regard!

    Reply

  8. edy
    Jan 11, 2011 @ 14:20:52

    I think this is very interesting because you make all details, especially the IT and human resources so that I as a person who does not understand what you can catch maksud.saya also agree with pebri about custemer servise less detail and does not consider things that might happen . but this is really awesome and very recommended to those who would do the merger🙂

    Reply

  9. Ari Supriyadi
    Jan 11, 2011 @ 14:28:48

    The process steps are clear enough. But I feel that it would be better if you able to tell more about the advantages if those banks merge. I am interested in the process, but I also want to know more about the advantages. As a non-managerial people, that is what I want to know the most. Regards

    Reply

  10. edward
    Jan 13, 2011 @ 06:19:14

    Dear Ms Angel,

    I found it’s difficult for me to understand your writing.
    So I read the case #1 and got more confused.haha…
    Well, maybe u should use a fifth grader’s vocabularies, dear.😉

    CMIIW
    The case #1 is about IT integration for those banks to merger and case #2 should be about organizational structure and workforce transition.
    (And my guess: if the case continues, it’ll be dealing with the customer issue)

    Anw, new organizational structure and workforce transition is a very very sensitive issue. Coz some people will probably lose their jobs…and if that so, there’ll be lots of “demo” just like what happens in the merger of E**a and F***i.. So maybe if you can find a book entitled “How to Talk to Labor Union When I Want to Fire My Employees: For Dummies”..that would be pretty helpful.🙂

    Cheers

    Reply

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