Changes are necessary in every field of business, especially when the current system of operations is identified as unsustainable. In addition, the success rate of investing on a change is dependent on the behaviors and the mindset of people. Stakeholders have the largest impact on the direction of an organizational transformation. The paper below discusses revolution in relation to the Force Field Analysis tool on the case study with title ‘Change: The Financial Industry of 2007.’
Answers of the Questions
To begin with, the main factor that triggered the change is the paralysis of the word financial sector due to the credit crunch. The credit crunch was caused by political, economic, social, and technological factors that negatively affected the business environment. To be more specific, the banks internal management decisions of giving out loan to people who had low abilities to re-pay these financial obligations led to the crisis. In simple terms, the trigger of the change in the context described was the financial breakdown in the banking sector (Gary, & Ray, 2013). The reason of the change is transforming the finance sector positively.
Secondly, the extent to which the change is depicted as a ‘Big Bang’ approach to change is enormous considering the fact that the transformation is not limited to one organization. The change is meant to bring in an effect in the world financial performance, which was generally weakened by the credit crunch. The sector of finance runs economies, an indicator that the impact of the change will have a significant economic impact. The impact is expected to bring a change that can be termed as a big bang.
The Critical Review
The critical review is based on the Force-Field Analytical Model, which is a useful tool in making decisions. The main analytics that will be demonstrated are forces supporting change and those that are against the change. This analysis is the best path to follow with the goal of enhancing reasoning and communication behind the change decision at hand. The illustration below represents the analysis.
|Forces for Change||Calming down the Paralysis of the Financial Sector/Credit Crunch through an inevitable path that stabilizes global banking||Forces Against Change|
|Stabilization of banking (2)||Impact of the environment (4)|
|Improved financial technology (2)||Political disruption (3)|
|Improved knowledge of business environments (5)||Fear of change from staff (2)|
|Reduced costs of production (3)||Resistance of consumers (1)|
|Support of economies (12)|
|Total Score = 14||Total Score = 10|
When carrying out the Force-Field Analysis of the change, considerations of how the change will be benefit the society, the supporters and those against the change and the reasons for each, the risks, and the impact of the change were deeply defined. As a result, it became easy to understand the influence of different factors on the change, which affect the financial sector. These considerations were vital in determining the stands of the plan that are vital in all times (Zand, 2015).
Notably, the decision of change is valuable considering the forces that support it. The benefits of the plan in the world are voluminous bearing in mind the fact that individual organizations will benefit, economies will benefit, and consumers of banking and credit will benefit as well. Through the analysis, it is clear that the pressures are controlled by the needs of the change (Mike, 2016).
In addition to the above, it will be important to ensure that all employees in this sector understand the change and have a positive attitude and mind-set towards it. People determine the success of any transformation and should be motivated greatly. The leadership should have strong initiates such as roll modelling (McKinsey & Company, 2015). Generation of sustenance is the main aim of the plan, which can have a great impact to all employees if they foster it. The communication can help in raising the score of the forces that support the change.
More or less, the article was insightful on the aspect of bringing a positive change in organizations affected by the credit crunch. Most importantly, the Force-Field Analysis is very vital in making the decision of implementing a change in the field of business. In addition, the analysis pointed out on critical issues that may have led to the credit crunch. Consequently, the paper forms an informative analysis that bankers and governments can use to avoid a similar occurrence in future.
Gary, R. & Ray, F. (2013). Change: The Financial Industry in 2007 (Case Study). Leading,
Managing, and Developing People. 6.3: 123-125.
McKinsey & Company, (2015). The Science of Organizational Transformation. Retrieved from
Mike, O. (2016). Force Field Analysis: Analyzing the Pressures For and Against Change.
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Wu, R. (2007). Component design, integration and service transformation in financial industry.
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Zand, D. E. (2015). Force Field Analysis. Wiley Encyclopedia of Management, 1-2.