Change Management - Bank Simpanan Nasional

INTRODUCTION

Change can be defined as the movement from present stage to the future state. (Graetz,2004)

Change management can be defined as a structural approach (process and tools) for managing change. Changes can occurs in an organization due to the change of leadership, management style, vision and mission of the organization. The changes which had been done by an organization will have their own impact on the organization. however, the organization may didn’t know either the change which has been made by the organization will give a good impact or the bad impact to the organization. In here, we can see the importance to have a tools in order to control the bad impact and encourage the good impact in the process of changing in the organization.

By referring to introduction of managing change, I chose the article of relating with Bank Simpanan Nasional which discuss on the lauching of refreshed brand of Bank Simpnan Nasional with strong customer focus. The change which had been made by BSN is a big change as BSN comes with the new vision for the future of ‘A better life within your reach’. The bank had underlines distinct proposition in order to ensure the vision is able be achieved.

CENTRAL DISCUSSION OF THE ARTICLE

Why do we need to change? We need to change in order to improving ourselves. This is the reason behind the transformation of BSN as they saw the need for them to improve.

According to business dictionary, branding can be defined as the process involves in creating a unique name and image of a product in the consumer’s mind. Therefore, rebranding woul means that the organization is redoing the process of branding of an organization. Refreshing brand means that the organization started back from the start of the process or changes it a bit according to how he thinks the new brand can suit the old brand. In the article, the Chief Executive of BSN had undelined four distinct proposition as the foundation of BSN brand promise to give their customer differentiate experience which can be seen below:

Commited: BSN commited to excellence in all that they do.

Agile: BSN anticipate market trends and leverage on opportunities

Respectful: BSN value diversity among the people, ideas and point of views to put themselves in their shoes in order to understand their customer needs

Ethical: BSN promise to be transparent, honest and uphold the highest moral values.

These four are the four propositions which had been listed and underlined by the CEO of BSN in the launches of the product. BSN also set the vision to be the leading financial institution serving every Malaysian. BSN is well known as a Malay-Centric Bank as most of the customer of the bank comes from Malays races. (take quotation and references from the previous article). However, the bank started to adopting the concept of 1Malaysia into their bank as they tries to enlarge their market area to non-Malay as well. BSN set the vision to become the best financial institution for all Malaysia through easy, seamless and pleasant through the upgraded network. In order to achieve this, the bank holds partnership with Telekom Malaysia (TM) in order to provide fast and better service on the network to the people. (insert the quotation on TM and BSN partnership here) The partnership which had been signed in 2015 will saw the improvement of qualities in operation.

The focus of Bank Simpanan Nasional after rebranding is to ensure that everyone has access to quality and relevant banking services within their reach. The bank had done several changes in order to achieve their new vision. As mentioned before, the bank started to change from the is well known as the Bank for the Malays as majority of the customer is the Malay, in order to change the people perception, the bank adapting the concept of 1Malaysia into the bank principle as the bank encourage the other races to saving in their bank. The bank want to get rid of the perception of the bank only for Malays. The bank then started to target the young executive to become their customer and they more focus on balancing the customer centric as they before known as Malay-centric bank now they look to balance and make the bank 1Malaysia bank. The concept can be understandable as the other competitors also doing the same. It is the same situation of Bank Islam when they try to get rid of the people perception of the bank only for muslims only. The other approach had been applies by CIMB group as they change the name of the bank in order to encourage other races to doing business with the bank. The bank formerly known as Bumiputera Commerce Bank which make the people to have perception of only the Bumiputera can do financial operation with bank. The change then success as we can see that other races such as Chinese and Indian started to doing financial business with CIMB. This is what Bank Simpanan Nasional trying to do as they realise the need for them to change in order to improve their service and expand their market in the country. Through the action and strategies of changing the centric of the bank, the bank then would able to expand their market to the other race group.

SUBJECT COVERED BY THE AUTHOR

The author had focusing on the subject of rebranding of the financial institution. The process of rebranding is a long process as there are lots of things to do in order to ensure the process of rebranding is successful for the organization and the process of rebranding will able to give a positive impact to the organization.