Transforming TSB Group (C): Managing Change Teams

Published 10 Jan 1997
Reference 4582
Topic Operations
Region Europe
Summary

In 1989, the new Chief Executive of TSB Group's retail bank, Peter Ellwood, launched a massive reorganisation of the bank's operations that resulted in the Bank's operating profit more than doubling over a period of two years. The cornerstone of this effort was the "branch network redesign" project, a "process reengineering" effort conducted before the term BPR became fashionable. This project, like the other four components of the transformation, was managed by a dedicated team of full time change agents, based on Peter Ellwood's strong belief that "the only way to bring about large-scale radical change is to divorce the action of change from the day to day process of management. Responsibility for delivering change should be given to dedicated, focused project teams using rigorous project management methodology". The network redesign team was very successful, but the company found it difficult to reintegrate the team members into "normal operations" at the end of the project. As a result, most of them left the company shortly thereafter.

Teaching objectives

This case is the third of a four-part series examining various aspects of TSB Group's transformation between 1989 and 1995. It is focused on the process (rather than the content) of this restructuring, with a particular emphasis on the importance of project management techniques and the role of full time change agents. The case raises important questions on the selection and management of change teams, the interface between teams and line management, and the disbanding of the teams. The case can be used on its own, or in combination with the (A) case (which provides more background on the company and the industry), the (B) case (which provides more detail on the content of the five projects implemented between 1989 and 1991), and/or the (D) case, which documents the second wave of changes within the Bank (1992-1995).

Keywords
  • AUTOMATION
  • CENTRALISATION OF BACK OFFICE ACTIVITIES
  • LEADERSHIP
  • CHANGE TEAMS
  • PROCESS REDESIGN
  • MANAGEMENT OF CHANGE
  • PROJECT MANAGEMENT
  • RESTRUCTURING