|Subject Title||Responsible Leadership|
|Assessment Title||Policy Memo (Assessment 2)|
|Assessment type (group or|
|Weighting||30 per cent|
|Format / Layout of Assessment||Report:|
|(details of what to include) (cross the appropriate check boxes)||ICMS Cover Page Table of Contents|
Synopsis / Executive Summary
|ICMS Cover Page|
|Paper submission PowerPoint submission|
Peer review (group presentation)
(clear, succinct, without repetition)
Policy Memo to the Board. Write a 2000-word policy memo to the Board of your current organisation or other approved organisation. This policy memo will include an analysis of the key planning and innovation challenges faced by contemporary business organisations and business leaders. Identify potential responsible leadership strategies which could be incorporated into strategic planning and change for the organisation.
Prepare a 2,000 word report (plus/minus 10 per cent). The focus is on high quality critique and integration of academic sources.
All reports should include a minimum of six (6) academic peer review journal articles. Additional sources may include company websites, industry associations, and government authorities.
Non-scholarly websites, including, but not limited to, Wikipedia, UKessays.com etc. may not be used.
|Example of Structure of Report|
The Reports will follow conventional Business Report format, which includes the following sections, with numbers and description for each section and sub- section.Title Page Executive Summary Table of Contents
2.0Case Study overview
6.0Appendices (if relevant)
** The number of sub-sections may vary depending on the writing structure. Please ensure that a meaningful word or phrase is used for each sub-heading.Referencing Style
APA i.e. author-date citation and referencing must be used consistently.Academic Integrity
All reports will be carefully reviewed for academic integrity. Students should ensure that all materials are properly cited and referenced. All secondary sources need to include the primary reference also.
This study is intended to perform a case study analysis to identify different organisational issues that are faced by an organisation. For this case study analysis, Westpac bank has been selected. The organisation has an adequatemas performance, but they have some non-financial issues such as key planning issues and innovation issues. The case study showed the fact that the organisation has some problems in an organisation such as leadership issues, or employee empowerment issues or institutional learning issues which need to be resolved to secure better organisational outcome. Innovation is essential for the development of the Australian banking industry. The industry mainly faces challenges for failing to anticipate future consumer expectations and innovation issues. The chance of fraud makes it even more challenging for organisations like Westpac to gain customer trust. For solving the innovation issues, an innovation culture and trust culture need to be fostered throughout the organisation. The proper leadership of the leader will help to attract talent pool and bringing innovation.
In this present era, the modern generation has become highly ethics concerned. Presently, millennial regards the values and ethics more than a generous salary. According to the research conducted by the global tolerance, 62% millennial are there who want to work for an organisation that can make a positive impact on the society or the condition of the organisation. Therefore, the responsible leaders are those who enable and moderates the interaction with different stakeholders of the organisation. This policy memo is intended to show different types of challenges that are faced by an organisation. After that, it offers different responsible leadership strategy for resolving the issues faced by an organisation.
2.0 Case study overview:
This case study mainly focuses on the responsible leadership function in the Westpac bank. The case study considers different aspects of the organisation and shows mostly different challenges faced by the organisation that requires the involvement of the responsible leadership in the organisation. Westpac bank is the bank and financial service provider of Australia that operates their business on a worldwide basis (About us, 2019). The organisation is one of the public limited company. The organisation has its branches in 1204 number of locations. Moreover, they have ATM in more than 3222 number of location. Different products of the organisation that are offered by the organisation are consumer banking, insurance as well as finance, mortgages, corporate banking, consumer banking, investment banking, private equity, global wealth management, and credit cards (About Westpac Group Australia, 2019). According to the data of 2018, the bank has more than 14 million customers, and they employ more than 40000 people in the organisation (About Westpac Group Australia, 2019). This report is aimed to show different challenges faced by Westpac bank and offer recommendations for resolving the issues. This report is focused on the below-mentioned functions:
3.0 Case study analysis:
The below-mentioned explanation offers a better overview of different challenges faced by the Westpac organisation related to the responsible leadership.
3.1 Key planning challenge:
The following problems are key planning challenges that are faced by Westpac. These challenges are shown below:
Westpac has admitted that they have cultivated a complex culture with the help of the ad-hoc solution. They have become unsuccessful in turning the ideas into the action. Though West bank has an adequate level of comfort with the complexity the following complexity to interact with the multiple frameworks, group as well as policies creates some level of difficulties for them (Furnyhough, 2019). Therefore, it can be said that the organisation has some issues in their culture that are creating challenges for the organisation in applying new laws or initiatives.
Moreover, the organisation does not have an active focus to empower its employees (Furnyhough, 2019). According to Choi et al. (2016), employee empowerment refers to offer a certain degree of responsibility and autonomy to the employees in terms of decision making in their organisation. Empowered employees feel them valued in their organisation which increases their work performance. Moreover, employee empowerment is also important to make the employees committed, loyal as well as productivity (Choi et al. 2016). Therefore, the lack of focus of the organisation in empowering their staff creates difficulties for the organisation in improving the efficiencies in making a decision (Choi et al. 2016). Westpac has an over-focus on the organisational safety that inhibits the proper employee empowerment by unnecessarily restrict the right of the employees to decide on the organisation (Furnyhough, 2019).
The leadership team of the Westpac bank is excellent to communicate the general values with the employees, but they are not sufficient in translating these values into the purposeful action for the employees (Furnyhough, 2019). It has been observed from a recent study that the employees of the organisation have an active focus in performing the right things, but the organisation do not have the active culture to "speak up” in the organisation (Mittal & Dhar, 2015). In the Westpac bank, when employees try to speak up, then the managers of the organisation take defensive actions and avoids the ideas or complaints of the employees. There are no healthy norms in the organisation where leaders identify the performance of the staff, offer feedback to the staff and raise different issues (Mittal & Dhar, 2015). Therefore, it can be said that the non-financial risks are not adequately considered in the organisation which creates planning related issues in the bank.
Institutional learning is highly relevant in an organisation in improving the abilities and experience of the employees (Furnyhough, 2019). Lack of institutional norm for the employees in taking some times to reflect and learn among other competing priorities can reduce the chances of organisational efficiencies (Jackson & Wilton, 2016). For planning and implementing a new initiative, employees need to learn new skills and abilities. However, the lack of focus in learning new skills can create difficulties for Westpac bank in implementing new initiatives in their organisation.
3.2 Innovation challenges faced by Westpac
Here, the innovation challenges experienced by Westpac concerning responsible leadership are analysed. According to Ramavhona & Mokwena (2016), innovation is significant to banks, as it provides efficient and news processes of capturing new business and improving customer loyalty. However, change needs an extent of risk, which is not good for banks. When banks are getting a beat on the potential demands of the customers, nothing is as challenging or confusing. Calculating and imitating to liquidity-cover proportion rules looks mild comparing to expecting future behaviours of the customers.
When it comes to Westpac, for more than 200 years, the organisation has backed determination and imagination, supporting modern Australian businesses. At the company, when businesses flourish, it thrives as well, that is the reason it arranges Westpac Innovation Challenges every year (Westpac Innovation, 2019). Despite the company faces innovation issues too, as technologies are being advancedcontinuously. In the banking industry, zero tolerance for error means clients at the authority of any system such as drawing out a mortgage can forego, possibly resulting in a credit squeeze. Therefore, at the beginning of a process, clients often do not practice all the perils; they only know that they need a loan for buying a home. However, if things go erroneous, a client's approach to risk will be different. They will start questioning the bank' decision and processes, as will the controllers. Innovation and technology can facilitate reducing mistakes and enhancing decision-making without being excessively inflated for clients or banks by processing and classifying spending of every customer. Hence, the major innovation issues faced by Westpac is a fraud and identity theft. Therefore, the company invested notably in several initiatives for handling the critical challenges of fraud containing finding before a customer knows about the incident occurred (Westpac, 2019).
Disruption from innovation is another critical challenge experienced by Westpac. Modern technology such as mobile banking, real-time payments has both advantages and threats to the industry. Not any single organisation can excel at everything. It relates to innovation just as it relates to everything else conducted by banks. Hence, it is imperative to nominate a selected number of strategic ability platforms on which to develop what people call directions of innovation. Innovation does not take place in a void, and it does not occur entirely by chance. It grows on itself, collecting energy in particular directions as abilities are developed, lessors are cultured, and talent is appealed and cultivated. The actual nature of innovation is it is terrible to identify where it will lead. This is the problem faced by Westpac and other banks too. Hence, Westpac needs to think carefully regarding where they want to concentrate their exertions and place their risks (PWC, 2019). As commented by Bajada&Trayler (2015), innovation needs talent. Achieving talent is distress for the CEOs of banking. For example, recent PWC CEO Survey revealed that 77% of international CEO's think that lack of knowledge will obstruct growth and 52% are planning to employ to practice something related to it. Thus, the small talent pool is also an issue for Westpac to compete effectively by brining adequate innovation to the business.
Thus in spite of implementing several initiatives and practices, Westpac still faces innovation challenges, as innovation is an ongoing process. The security issues are the most critical and must be handled effectively for gaining customer trust and loyalty. The leader plays a vital role in this. The leader must play his role more responsibly in encouraging a culture of innovation within the organisation by encouraging employee engagement in the process.
4.1 Employee empowerment lacks
In Westpac, employees are not empowered enough to make decisions. It hinders their dedication and growth as well. The autocratic leadership style of the leader makes it difficult for employees to present their innovative ideas to the management and the complicated organisational culture is responsible for this to some extent. Employees hardly get a chance to learn new things and reflect on their activities for identifying their flaws. Thus, the planning issues also hinder innovation in Westpac too.
The organisational leader of Westpac needs focusing on promoting a culture of innovation within the organisation. The Australian banking industry is in a condition of mutability. Transformed dispute on reputation and perception, integrated with ambiguity around the speed, breadth and scale of planned disruption to the sector means the sector in the coming future and ahead will look very distinctive comparing to that of today. Therefore, Westpac needs becoming simpler and connected with the customers more deeply for offering them the next age of value formation
For achieving the satisfactory level of outcomes amidst the complexity, implementing an effective risk management strategy is necessary. The organisation needs to resolve the issue by reducing the complexity of their culture.
For increasing the efficiencies and productivity of the employees, it is highly essential to Westpac in empowering their employees. For empowering the employees, it is necessary for Westpac bank is offering ownership as well as authority by handing out some responsibility. Westpac must encourage their employees to develop a valid excommunication with their leaders, and other employees are essential. Offering a growth opportunity for the employees is also critical to the organisation in providing empowerment for the organisation.
Westpac must hire a professional person as their leaders who will be efficient in taking necessary steps to improve the organisational efficiencies. Along with that, the organisation must encourage their employees to share their ideas with the organisation so that it can be helpful for the organisation in assessing the proper need of the employees and satisfying it (Mittal & Dhar, 2015). The organisation must involve their leaders for evaluating employee performance and arranging training to improve it in case of any weakness.
Encouraging employees to develop self-learning is necessary for Westpac. The organisation must offer proper advice to their staffs about the importance of the self-learning. Moreover, Westpac must allocate some times to the employees so that the employees can get sufficient time for their leaning and reflecting their learning.
5.2 Creating a culture of innovation and trust
Innovation is required for overcoming fraud issues and retaining customers at Westpac. It needs a constant flow of talented people. For attracting talent pool, Westpac requires developing an environment and creating a culture that raises innovation. Thus, the company can easily attain the flow of talent craving to innovate. Change involves speed. Today's customers have become ever more demanding, and they want everything very fast. Goyal, Chawla&Bhatia (2016) stated that agile mythology facilitates delivering on the demanded speed and can be regarded as a must-have in the system of innovation development. Agile methodologies have boosted that project success from 11% to 39%.
Hence, Westpac needs bringing change to its working method by applying agile methodology, as it will provide iterative improvement. Innovation is not aimed at the feint-of-heart, specifically in a centuries ago industry, banking, where ignoring risks is key to the business. Therefore, attracting few risks into the leadership strategy for the sake of novelty can be unsafe without having explicit knowledge of possible demands and expectations of consumers. Therefore, the leader of Westpac needs assessing consumer experience and understanding the factors affecting their satisfaction and the way it influences their behaviour. It is essential for bringing innovation for staying relevant and achieving corporate goals. It needs a culture of confidence and innovation and the capability of listening to enhance the consumer experience.