Unit 1 Case Study
docx
keyboard_arrow_up
School
Park University *
*We aren’t endorsed by this school
Course
635
Subject
Health Science
Date
Feb 20, 2024
Type
docx
Pages
7
Uploaded by DukeBoulder13544
1
Unit 1: Case Study
Department of Healthcare Administration, Park University
HRM636: Change Management and Conflict Resolution
Professor. Sheriley Smith
October 21, 2023
Case Study 1.1: Managing a Branch Closure Program
2
Introduction
The bank is recognized as well-established in the retail banking industry and has an extended history. But as new players enter the financial market, the established bank finds it harder and harder to remain competitive. Deposit alternatives via mobile and internet are among the many recently introduced banking choices. Furthermore, the competitors have given up the greater overhead costs linked to operating a larger bank branch location.
The operations board members of the conventional or established bank bear the obligation of identifying the most effective means of reducing expenses and preserving the business as a whole. The current branch network will be reduced, it has been decided. The board has been offered with the option of delaying the optimal course of action due to lower overhead costs associated with closing the larger branch sites (Hayes, 2018).
Step 1: Possible action
As per the website Bank Innovations, a growing number of conventional banks are acknowledging the necessity of cutting down on distribution expenses and accommodating alternative channels like online and mobile possibilities, given the changing client base and technological improvements (Marous, 2012). Higher client interest was attained by larger, more established banks by giving the consumer a sense of strength. But as time goes on, people are become more aware of their finances and realizing that they have banking options outside of their current provider.
Being a member of the Operations Board implies that we are accountable for coming up with ideas on what the board should do to stay ahead of the competition. The board has made the decision to eliminate items from table 1.1 (Hayes 2018) and give consideration to those that offer
3
the greatest value. By careful planning, the Operation Board members are also making every effort to proceed with the least amount of negative impact. When deciding what to do, it can help
to think about what is certain and prepare for people's reactions.
For instance, identifying the key shareholders impacted by the change, determining the benefits of closing the branch, accounting for the staff affected by the change, and determining the best course of action to follow the closure in order to retain current clients while attracting new ones are all examples of potential early actions that could be taken. To identify what needs time and thought at a particular planning stage, the stages from Table 1.1 for potential actions will be arranged in order of possible outcomes early on.
A list of ideas that the board has discussed is included in table 1.1 in Chapter 1 (Hayes, 2018). As the scenario has indicated, the bank will have to cut costs by reducing the branch network. Many parties will be involved in this event as a consequence. In order to create a sequence of events, the Operations Board benefits from outlining potential actions. During the branch closure, the potential course of action will also help to maintain organization and timeliness.
Step 2: Assembled Plan
The procedures being examined in table 1.1 must be done in the correct order because the alternative actions provided are not in any particular order. Every aspect of the branch closure procedure is taken into account while listing the items. Throughout the process, it might be necessary to repeat some of the processes. Depending on the stage of closure the bank is going through, the measures indicated on stable 1.1 are relevant. The following stage categories are possible lists of the steps to make;
Firstly, the pre-closure stage.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
4
2. The mid-closure stage.
3. The post-closure stage.
Assembly of Actions
Early or Pre-Closure stage
Overview of the Branch Closure Action Plan.
Ascertaining the Principal Investors Impacted by the Modification.
Point Out the Advantages of Finishing the Branch Closure.
Determine who is responsible for closing the branch.
Select a Closure Date and Timetable.
Choose Other Potential Growth Areas.
Mid-Closure stage
Determine the Best Course of Action to Keep Current and Draw in New Customers
Following Closure.
Create employee packs for people that the closure has displaced.
Make plans for the reassigned staff's training.
While things are changing, keep working with staff and inspiring workers.
Identify the bank's marketing and promotion areas.
Determine Which Areas Could See a Revenue Increase.
Offer Convenient New Client Tools.
After or Post Closure Stage
5
Consider the advantages and strengths of the branch closure at the post-closure or
after-closure stage.
Talk with the parties involved about the success of the branch closure and its
outcome.
Maintain Staff Training Programs.
Increase the Bank's Marketing and Promotion.
Expand Bank Operations (including online and mobile platforms).
The traditional bank has placed more emphasis on preserving those relationships because every
stage of potential action impacts the lives of those (such as personnel and clients). Different
marketing channels are also given prominence because the closing of physical outlets on the
branch network also results in less physical presence in the neighborhood. As with any change,
there will be some adjustments during the initial branch closure, but the objective is long-term
success and to create an enduring future.
Overall, the Operating Board is acting appropriately to maintain its competitiveness in this
dynamic market. Those traditional banks should go outside their physical sites in the financial
sector in addition to maintaining a physical presence. Customers in the consumer pool may
benefit from a bank that provides more banking choices (Pilcher, 2017). Even with the
availability of online and mobile banking, larger banks still see a remarkably high volume of foot
traffic every day. The members of the Operations Board have faith in the choice to shrink the
branch network in order to maintain competitiveness.
6
Reference
Hayes., J (2018). The Theory and Practice of Change Management (5
th
Ed.). Palgrave
Macmillan.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
7
Marous., J.(2012). Banks Transforming Branch Networks to Improve Efficiencies. Bank
Innovation. Retrieved October 21, 2023 from
https://bankautomationnews.com/uncategorized/banks-transforming-branch-networks-to-
improve-efficiencies
.
Pilcher., J.(2017). Do Banks Need Branches in the Digital Age? The Financial Brand. Retrieved
October
21,
2023
from
https://thefinancialbrand.com/news/banking-branch-
transformation/bank-credit-union-branch-network-strategy
.