Capability Strategy for CBA
Entering into a business without having proper and effective strategies is consider to be a fatal outcome for the business organisation. As a result of that most of the business organisations incorporates and enlists series of strategies to ensure their smooth business activities in a high competitive market. In this context, the Commonwealth Bank of Australia has been suffering with a number of problems and issues since 2014 in not only organisational framework but the entire business decorum is facing severe threat to exist in the international market. The issue was related to the data breach in CBA system that cost huge reparation and turned upside down for the business orientation of CBA.
In this regard, the purpose of this report is to identify proper strategic planning coupled with relevant and effective strategies in order to procure a better framework for Commonwealth Bank of Australia. Therefore, the report discusses the strategies from different aspects like capability strategy, system strategy, structural strategy, leadership strategy, cultural strategy and change management strategy. Moreover, an overall evaluation and the possible issues are also taken into the discussion in order to recommends the company some pro-active measures before implementing the strategies.
As far as the capability strategy is concerned, Helfat and Peteraf (2015) argued that the bridging strategy will play a pivotal role to enrich and increase the capabilities of the business organisation. In this regard, there are some key factors that has to be focused in order to ensure the success for the business organisation. As the Commonwealth Bank of Australia is facing serious threat to its business due to the data breach in 2014 therefore it is the time for the organisation to emerge as a new and coincided with the moral and ethical business practices. It is associated with the overall aspect of the organisation where skills, mission, vision, integration, process and technology are contributed robustly. Based on this understanding, Beske, Land and Seuring (2014) advocated that the root cause of the failure can be turned into the strength of the organisation by putting light on every aspect of the business operation. On the contrary, Villar, Alegre and Pla-Barber (2014) advocated that before implementing a strategy it is important for the organisation to figure out the origin of the problem. On the basis of the problem the company can take a series of effective measures in order to eradicate the threat and solidify the business orientation effectively.
System Strategy for CBA
Therefore, at first putting emphasis on the talent or skills are identified as one of the major aspect for Commonwealth Bank of Australia. It is resembled with the interests and integration of the employees with the organisational decision making process and ventilate the mission and vision of the company so that they can measure the objectives and goals that can lead the company towards success. Moreover, a strategic planning mechanism is also required that will deal with the efficacy of the strategy. According to Helfat and Martin (2015) the enhancement of the capability within the company will follow a proper framework that can elucidate the objective of the company and its long and short term goals as well.
In the words of Simon, Fischbach and Schoder (2014) system and process are the core elements for the success of tan organisation. In this regard, lack of efficiency in the top level management in Commonwealth Bank of Australia perturbed the entire process of effective business orientation for future business sustainability. It was found that the CBA executives and the management was incapable to identify the threat. As a result of that the growing threat continuously hampering business activities of the organisation and it was beyond the ability of the management to fix it. In this regard, Purce (2014) asserted that putting emphasis on the top-line performance will facilitate better outcome for future business success. Therefore, the first step will be dealt with the confirmation goals and objectives that coincide with the analysis of the issues extensively. In addition to this, current diagnosis of the present situation in CBA management will put some light on the crisis and incompetence of the managers. Moreover, reviewing the skills and talents of the higher management is also considered to be an important aspect for the organisation. Furthermore, it is essential for the company to define the solutions and its primary elements so that all the people associated with the strategy will get an idea of the implementation of the strategy. As a matter of fact, defining the solution will lead towards the planning of the solution. In this regard, Wheelen et al. (2017) mentioned that creating a solution planning for the development of the top-level management is associated with the in-depth knowledge in resource plan and estimated deadline and financial expenses. Finally, the entire process will be concluded with underlining the deliverables in terms of future relevance of the process, opportunities and the short term and long term goals to achieve. Therefore, the top-line performance strategy is highly effective for the development of an efficient system strategy for Commonwealth Bank of Australia.
Structural Strategy for CBA
As per the research of Kaiser, El Arbi and Ahlemann (2015) it can be argued that there are three types of factors that are responsible for the development of efficacy of the structural strategy preparation. In this regard, there are three factors that deliver effectiveness into the process of effective structural strategy in terms of value proposition, profit proposition and people proposition. Those three factors directly intertwine with the need for reconstruction or restructuring the existing shape of the company. According to Hair et al. (2014) the structural approach is coupled with the structuralism and re-constructional theory of change. In response to this, the value proposition strategy is associated with offering special rebate for the customers and from that offer it will gain profit. As a matter of fact, Li, Granados and Netessine (2014) advocated that the value proposition concept is related to the high performance and the profitability of the company. In addition to this, Tortoriello (2015) mentioned that the value proposition concept is not solely justified the motivation for the employees. Henceforth, it is important for the organisation to deal with the profit proposition perspective. However, the profit proposition primary deals with the value and adequacy of the profit in terms of changing the structure of the company and reconstruct it regarding the value and objectives of the organisation. In case of Commonwealth Bank of Australia the intriguing factor for structural strategy is considered to be one of the major factors that stapled with the needs and requirements of the company objectives. In response to this, putting emphasis on the people proposition is highly relevant and effective enough for the organisation in order to deal with the reconstruction of the company structure. In this context, it can be stated that the role of the people proposition is related to the positive motivation and the incentives for people resulted to support and implement the strategy effectively.
In this regard, the most important aspect for Commonwealth Bank of Australia to make a better organisational framework is to put focus on the effective leadership strategy in order to revamp the organisational practices effectively. In this context, it can be stated that the former CEO of the company Ian Narev had some leadership issues that affected the company’s business orientation negatively. As a matter of fact, he was trying to impose leadership on the employees in the process of top-down manner. Therefore, indecisions and maladministration had become one of the major aspect that created huge issues for Commonwealth Bank of Australia. Based on this understanding, McCleskey (2014) claimed that the transformational leadership strategy is the best possible way to motivate the employees and continue the business activities flawlessly. In the words of Breevaart et al. (2014) the transformational leadership quality will pave the way for efficient professional environment within the workplace. Van Dierendonck et al. (2014) stated that the role of the transformational leadership is to deal with the four elements in terms of the individualised considerations, intellectual stimulation, inspiration motivation and the idealised influence. Those factors are not only dealt with the process of the motivating the employees but also liable to enhance the organisational function to a great extent and ensure the profitability of the organisation.
Leadership Strategy for CBA
As a matter of fact, Birasnav (2014) advocated in a different manner by keeping focus on the aspects of servant leadership approach. As per the research of Herman and Chiu (2014) it can be stated that the role of the servant leadership is coincided with the nature of the leader to help and guide the employees to a positive aspect by implying the conscious choice of the employees and provides more flexibility into the workplace environment so that it will encourage the employees to input more effectiveness into the leadership characteristics. As a matter of fact, the appreciation and the acceptance of the employees to choose the leaders is also an important aspect that the servant leadership provides.
As far as the corporate cultural strategy is concerned, it can be argued that the strategy has a close affinity with the behavioural process in an organisation. For an instance, Peng (2017) pointed out three alignment of corporate cultural strategy in terms of symbolic reminders, min-sets of the employees and the keystone behaviours. In this context, the symbolic reminders are associated with the process of making the employees get accustomed with the cultural factors of an organisation through materialistic and symbolic understanding. It can be the method of business activities or the policy making of the organisation that can contribute to the efficiency of the organisational cultural strategy. On the other hand, the research of Bauer and Matzler (2014) attributed to the process of making the mind-sets of the employees in such a manner that can contribute effectively in the process of establishing effective cultural strategy. There are bulk of empirical evidences that have a direct correlation with the process of making better cultural strategy in to the workplace environment. For an instance, the attitude and beliefs are played significant role in order to ensure the efficacy of cultural practice within the organisation. However, the research of Peng (2017) figured out that the mind-set of the employees is an invisible factor but it is associated with the direct impact on the attitude and beliefs of the staffs extensively. On the other hand, the role of the behavioural aspect leads to the impression of triggering and recurring the behaviours in both visible and invisible manner. In response to this, Saeed, Yousafzai and Engelen (2014) advocated that the role of the managers is to take a bottom-up approach in order to transcend the cultural implication on the employees. Based on this understanding, it is highly important for Commonwealth Bank of Australia to encourage the employees to follow the cultural strategy in order to maximise the business and profitability.
Cultural Strategy for CBA
Change management is considered to be one of the essential factor that can generate effectiveness into the process of making effective business environment in Commonwealth Bank of Australia. In this regard, Cummings, Bridgman and Brown (2016) opined that the Lewin’s change management plan will be highly relevant in order to implement effective business practice. The change management strategy of Lewin is associated with the framework of unfreeze, change and refreeze. As per the understanding of Bakari, Hunjra and Niazi (2017) the Lewin’s model of change management is highly effective in procuring effectiveness and success into the change in place. It can be stated that first stage in the name of Unfreeze deals with the process of delivering a better process open up the possibilities for the organisation in order to accept the situation and formulate a mechanism that has a relevance to make the change in need. Moreover, it can be stated that it is pertinent for the organisation to perceive a clear vision regarding the role of change and behave accordingly. On the other hand, the change process is associated with the process to develop a proper plan of change so that the process will be finished effectively (Dawson, 2014). Moreover, the different aspects and the needs are also taken into consideration so that it will successfully fit the objectives and the goals of the organisation. Finally, the refreeze process will be followed in terms of closing the change process because the purpose of the organisation is being served. From that point the company will initiate its operations effectively in accordance with the change in place. Based on this understanding, it can be argued that Commonwealth Bank of Australia is suffering with a series of problem regarding its management decision making and the structural inaccuracies. It requires a change and the Lewin’s change model rightly supports the requirement of the organisation and foster more efficiency in course of the business prospect.
The above strategies are rightly coincided with the issues that are erected due to lack of administrative qualities and organisational inadequacy. It can be asserted that there are lots of issues that Commonwealth Bank of Australia is dealing with in its operations and expansion in business. For an instance, the existing quality of leadership and the systematic framework are not helpful to solidify the process of making progress. Therefore, it requires some strategic measures to ensure the profitability and effectiveness into the process.
Change Management Strategy for CBA
Therefore, the organisation has to choose a number of effective strategies that corroborate the objectives and organisational framework extensively. In this regard, choosing the top-level performance is highly relevant because there are lot of issues in the managerial decision making that need to be fixed. On the other hand, bridging the capability with the organisational mission and vision strategies is also facilitated a better organisational practice that also puts emphasis on the skills and innovativeness of the employees. Similarly the effective leadership strategy in terms of the servant leadership or the transformational leadership can be highly important to guide the organisation into the right path. Subsequently, Lewin’s change management plan will be effective enough to deal with the entire process strategically.
However, there are some implementation issues that Commonwealth Bank of Australia can be faced in order to implement different strategies. In this regard, the issues are as follows,
- Complexities of the strategies can be identified as one of the major factor that can deal with the organisational strategic management. In this regard, making an effort to create advanced strategy can be jeopardize the process of formulating a structural advantage. As a matter of fact, attaching several number of strategies will be considered as not only complex but critical enough to implement.
- Moreover, it can be stated that all the above mentioned strategies are relied on the efficiency of the managerial position. Therefore, it is important for the organisation to implement the leadership strategy efficiently so that all the other practices and strategies will be completed effectively. In fact, the purpose of this strategic management is to ensure an all-around change within Commonwealth Bank of Australia so that it will take enough time to refurbish positive outcome within the organisation.
In this regard, there are some important recommendations that Commonwealth Bank of Australia should follow in order to continue flawless strategic management in business. For instances,
- Using a timeframe is highly required in case of making right planning and constructing an effectiveness into the process. In this regard, the time frame will show the outline of the entire plan and facilitate a better understanding of the required time and resources that can make the strategic planning highly effective.
- Briefing the aims and objectives of the company with special emphasis on the process of strategic management will be effective enough to incorporate the employees in course of implementation. It is associated with a proper collaboration between the higher authority and the employees to resolve the issues with the help of the strategic planning.
- In fact, prioritising the strategies in the light of getting positive outcome is also an important aspect for the organisation in order to facilitate better and effective framework.
Conclusion
From the above discussion, it can be claimed that despite of having a series of issues regarding the implementation of the strategies, the strategies are effective and intensely linked with the issues. In this regard, Commonwealth Bank of Australia has numerous issues related to its business operation. The 2014 data breach within the CBA created huge international issue and the company lost its market expansion drastically. Therefore, the discussion is not only focusing on the effectiveness of the leadership or the operational mechanism rather willing to change every aspect of the company from operation to the structure and cultural strategy of CBA. Based on this understanding, the mentioned strategies are highly associated with the strategies and dedicatedly creates an advantageous environment for Commonwealth Bank of Australia to expand its market in near future. Therefore, it can be concluded that the report is pragmatic and relevant enough to identify the situational analysis of Commonwealth Bank of Australia and suggests required strategy to deal with the situation effectively.
References
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