Challenge and Context
The need for quality, cost discipline and customer experience value in everything we do. Buyers of institutional banking products have significant power when it comes to negotiating solutions for their businesses. Since the volumes of the transactions can be very high and the value of each transaction can also be significant, banks are prepared to create customised technical solutions for these customers. From ANZ’s perspective this means that they have to deliver products and services that meet or exceed customer expectations in terms of functionality and ease of use, that those products and services need to be of a high quality (often customised solutions) that are reliable and efficient, and that are produced at a reasonable cost to justify the development time and expense outlay by the bank to win the business. There are two main groups within ANZ that are involved in delivering these products to customers, and each has its own perspective: 1. Business 2. Technology
The Business Perspective involves negotiating with the end customer to understand the needs and requirements for their transactional banking. Each customer is unique and will have different needs depending on the kind of business they are, their size, the industries that they work in and the expectations of their own customers.
The Technology Perspective involves creating solutions that meets the needs of the customer. This is where technical teams scope out and deliver technology related solutions on behalf of, and in response to, the Business team.
The Management Challenge: Design a ‘model of the future’ that will support the Enterprise Agile Model of ANZ as they embrace environmental and operational change and seek to meet and exceed institutional customer and market expectations. The model must address both perspectives (business and technology), be capable of delivering quality outcomes for business, technology and the customer, and it must be lean. ANZ Management understands that designing a unified model will be difficult and will probably end up being so broad that it won’t be useful at the day-to-day operational level. On the other hand, any solution that you design must fit within the broader strategy of ANZ.
1. Organisational systems
2. Organisational strategy
3. Organisation / division / departmental structures
4. Organisation capabilities and competencies (including employee skills) 5. Staffing
6. Knowledge creation, flow, retention and organisational learning
8. Customer experience
9. Marketing and business development
10. Operational excellence (including agility)
11. Any other…
Management would prefer you to focus your attention in one particular area and solve one piece of the puzzle well rather than trying to solve the whole thing. The aim here is to arrive at a solution that management can implement – potentially as part of a broader scope of works – but that solution must enhance the customer experience and be of a high quality. You are required to justify your solution in terms of cost, risk and reward.
To identify and analyse the contextual elements that contribute to the challenge that the partner organisation faces. You are to present your work in a business report format. This involves undertaking and external and internal analysis of the organisation and making predictions about the future.
• Examine the data provided by the partner organisation and undertake your own research to find more relevant data.
o Have you got all the data you need? What other data would be helpful?
• Analyse the data you have collected using appropriate management tools and theories
o External organisational analysis
o Internal organisational analysis
• Explain how the nature of the challenge is a result of the combination of external and internal factors that you have discovered through your research and subsequently re-define the management challenge as a problem that can be solved through the combination of management theory and practice. (Note: we are not expecting you to provide the solution at this stage – just re-define the problem through a management theory lens)
• Write a business report describing the nature of the challenge through the particular management lens that you are viewing the problem
o Use a business report format.
IBIS Company report- ANZ
IBIS Industry Report- Banking in Australia
Management theories, tools and frameworks to use (MINIMUM 3 external and 3 internal)
a. PESTLE (recommended)
b. VUCA (recommended)
c. SWOT (recommended)
d. TOWS MATRIX
e. Industry Analysis
f. Strategic Alliances/ Cooperative Strategies
a. Mckinseys 7 framework
b. Viro Model (Intergrates with Porters 5 force analysis)
c. Value chain analysis
d. Resource strength/ Importance Matrix
All analysis should be done and put in appendix with the results being talked about in the report. The tools should be used in conjunction with each other, external review and internal review and not just everyone separately. Example provided below
The PESTEL framework helps managers understand which elements of the external environment that they should be paying attention to. Typically, they are expressed in categories such as: Political, Environmental, Social, Technological, Environmental and Legal. However this categorisation of elements only helps the managers to understand what to pay attention to, it doesn’t help them to understand why these elements are important or how to understand changes within these categories.
The VUCA framework helps managers understand how forces that are at play in the external environment are dynamic and what may cause change. The VUCA elements are usually expressed as: Volatility, Uncertainty; Complexity and Ambiguity. This framework helps managers to understand why there is a change in the external environment but doesn’t help managers to understand what to pay attention to.
Combining the PESTEL framework and the VUCA framework assists managers in analysing the external environment by identifying the factors within the operating environment that are relevant and it helps managers to understand the causes for potential changes in those factors. The process of combining these frameworks is known as utilising a confrontation matrix. Further, by applying a numerical weight to the factors within the confrontation matrix we can identify which are the most critical factors to pay attention to in the external environment and where the risk of change may come from. Once these factors and their associated risks are understood, managers can then begin to think about how they may mobilise resources and capabilities to reduce the threats (or to take advantage of the opportunities) in the external environment.
The PESTEL/VUCA confronta=on matrix is provided in Appendix X.
From the PESTEL/VUCA analysis we are able to conclude the following:
1. Conclusion 1
2. Conclusion 2
3. Conclusion 3…
To understand how these insights can be further used to help management make decisions relating to the opportunities and threats present in the external environment, we turn to the SWOT analysis.
a. Title Page
b. Executive Summary
c. Table of Contents
d. Introduction: Background Information about our Partner Organisation
e. Problem Definition: What is so characteristics about the management challenge for our Partner Organisation?
f. External Analysis: for example PESTEL & VUCA
g. Industry Analysis: for example Porter’s 5 Forces
h. Internal Analysis: for example RBV