Middle Management Development Program (MMDP) for Managerial Staff of the Commercial

Bank of Ceylon PLC.

Learning Diary

Name of Participant/Group No: W D P Gunawardena / Group No. - 04

Module: Managing and Driving Change / Session No: 02

Subject: Leading, Embracing & Driving Change

Date of Submission: 18.12.2022

1. Summary of what you learned in the session in your own words (Facts Sheet)

 Change both as a person and an organization is inevitable and therefore both individually and collectively
we should embrace change and best manage it to prevail.
 Change is not a one-step goal but a series of actions/stages which should be driven and managed by
leaders.
 One main obstacle for change is the ‘Resistance’ and therefore effective managing of same through the
application of contemporary best practices is essential to achieve the desired change.
 Once the desired change is achieved, it is of paramount importance to sustain the status-quo without going
back to old habits and for this purpose application of various tested management strategies throughout the
change process would be beneficial.

2. Key Learning Points (KLPs)

 Change is inevitable and we need to embrace the change to sustain.

 Change is a question of whether we want to continue with ‘Old Ways’ instead of ‘New Ways’.
 In today’s context companies are competing not only with other industry players but in an arena which
includes other competing industries.
 Two leadership styles could be identified in the change management process. They are namely,
‘Transformational’ and ‘Transactional’ leadership styles. Transformational Leaders develop the people
below them to achieve the desired change while Transactional Leaders focus only on a specific purpose.
 Managed change reduces negative consequences and accelerate change in contrast to unmanaged change.
 Successful change strategies are typically a combination of both technical and human aspects.

-1-
 Based on the extent and speed of change, the process could be categorized as Transformational,
Realignment, Revolution or Reconstruction.
 Based on the risks associated with the process, change could be categorized as Standard, Normal or
Emergency change.
 Disruptive innovation is a goal for global competition (e.g., Land Master made by Mr. Ray Jayawardhana).
 Peoples’ self-esteem will go through different phases during the change process starting from ‘Denial’ to
‘New Confidence’.
 Resource Based View (RBV) is a strategy formulated by organizations to understand the elements of the
business for a long-term competitive advantage.
 Under RBV, four resource types are identified which provides an organization a competitive edge over the
others. These are namely Valuable, Rare, Inimitable and Non-substitutable resources.
 POLC are main elements of change Management (Planning, Organizing, Leading and Controlling)
 Four Action Framework (ERRC Framework) provides key leadership activities of change management
process (i.e., Eliminate, Reduce, Raise and Create). It is being used mainly in business re-engineering.
 Four-Culture Typology provide insights as to what extent a company’s culture is lenient towards
individualism or collectivism.
 Resistance to change could be identified in three ways. Those are Individual, Group and Organizational
resistance.
 The Theory of Planned Behavior (TPB) is a psychological theory that could be used in sustaining change.
 One other model that could be applied in sustaining change is the Kotter’s 8 step change management
model.
 ‘Nudging’ is a good practice of change which makes employees less resistant towards the change process.

3). What aspect of your job/function or development does this relate to?

Development Aspect - 01
During past couple of years, in many forums within the organization, it has been under discussion that
grooming of junior staff of the bank is not taking place up to the expected level, leading to increase in
dissatisfied employees and higher employee attrition among the junior grades. In terms of the continuity and
succession of the bank this has become a concerning aspect which should be addressed by the Management
with the assistance of middle Managers.

In this regard, as the SME Manager of a Colombo based region heading a team of around thirty young and
aspiring team members, I have a bigger role to play in this change management process, where junior staff
should be kept motivated and coached to become future leaders of the organization.

However, prior to formulate any initiatives to groom the junior staff it is the seniors who have to first
understand whether we want to continue with ‘Old Ways’ instead of ‘New Ways’ as the current dilemma is

-2-
mainly due to the non-acceptance of the seniors of the fact that the world has moved forward during past 10
years in a very rapid phase.

In today’s context if organizations do not successfully change and innovate, they tend die quick. Therefore, as a
middle Manager who is in a position to influence a sizeable group of junior staff to take over the reins of the
organization in the time to come, I aspire to become a ‘Transformational Leader’ for them, supporting the
cause of the organization.

Development Aspect – 02
Since the emergence of Covid-19 in 2020, Sri Lanka has been grappling with one challenge after the other and
currently goes through the worst of the economic and social challenges the country has ever faced.

As a result of the above, almost all industries including banking have been going through many struggles to
sustain businesses and thus experiencing difficulties in shifting our focus towards the most vulnerable area of
the banking business which is managing of ‘Non-Performing Credit Facilities’ (NPCF). One main reason for
this is that for almost a decade the bank had been able to record exponential growth in terms of portfolios and
profits, without NPCF being much of a challenge.

Hence, all middle Managers should make a mind shift towards controlling the inflow of NPCFs during next
couple of years while achieving a moderate growth in portfolios. This is easier said than done as for longer part
of our careers we have run after achieving the highest portfolio growths. Despite that we got to understand that
change is inevitable, and we need to embrace the change to sustain. Also, managed change reduces negative
consequences in contrast to unmanaged change and based on the risks associated with the current practices, this
mindset change could be categorized as ‘Emergency’ change in view of the urgency.

Development Aspect - 03
Ever since I became a SME Manager, I have let go of many opportunities for higher positions that came my
way due to lack of self-assurance. My superior officers in many a times have tried to convince me that I am
good enough to take such higher responsibilities but due to lack of self-belief I somehow let those challenges
go pass me. In hindsight it appears that I was not trusting my capabilities and reluctant to change myself
according to the challenges thrown at my way.

From above what could be determined is that resistance to change could be an individual issue as much as it is
an organization wide concern. However, what is important to understand is that change is inevitable even for
individuals as much as it is true for organizations and therefore if we do not change as individuals too, it is
matter of time that we become obsolete. Hence, I should embrace the change so that it will grow me
individually and make me a better contributor towards the organizational success.

-3-
Participant’s Signature:
Date: 18.12.2022

-4-