The Business Impact of a Leadership and Change Management Program

OZ Financial Services (OZ-FS) is one of the largest providers of a variety of financial services in Australia . OZ-FS has a reputation as a progressive organisation committed to providing excellent services to its customers, whilst also focusing on controlling cost and placing a high value on the human capital within the organisation.

The financial services industry in general in Australia operates in a state of tremendous transformation and transition. The implementation of new technology and financial services’ delivery systems are radically transforming the financial services field. These issues, combined with the need to attract, develop and retain staff are some of the challenges for OZ-FS.

The organisation is attempting to take advantage of these challenges. One initiative for this transformational activity is a Leadership and Change Management program, which is being conducted in two phases. The first phase, which was completed in December 2003, was "to identify key challenges and issues facing OZ-FS and to provide feedback to the program participants on their leadership and learning styles". The aim of the second phase was to "develop appropriate leadership skills and capabilities for officers with the potential to undertake leadership or influencing roles within OZ-FS in the future".

An important component of the second phase was to undertake a comprehensive evaluation to identify what was being or could potentially be achieved with the Leadership and Change Management program.

Expected Outcomes

The following were outcomes required by the Senior Executive Group:

• To build an environment in which there are increased levels of trust and improved morale across OZ-FS and where people at all levels feel valued;

• To develop leaders, who will inspire and motivate other staff to demonstrate behaviours consistent with the OZ-FS’ core values and “the way we lead and manage;”

• To demonstrate communication practices and methods that develop and maintain effective relationships with internal and external customers, having regard to cultural diversity and access to the use of appropriate technology;

• To demonstrate best practice in leading and managing change that takes into account the goals of the organisation and the needs of consumers and employees;

• To develop a culture that establishes and encourages innovative ways of learning and decision making and providing opportunities for divergent thinking;

• To implement action learning projects that result in (a) the agreed recommendations and priority issues from Phase One being addressed and (b) the participants’ demonstrating:

• increased awareness and self-confidence;
• a greater readiness to take responsibility and initiative; and
• skills in communicating, problem solving, networking and managing and coping with change.

A comprehensive data collection strategy, which involved measurement and evaluation at four levels, to determine the following:

1. Each participant’s reaction and satisfaction to the Program content and their planned action;
2. Each participant’s learning ie increased knowledge and skills
3. Each participant’s application on the job
4. Each participant’s change in business performance as a direct result of the program

After thoroughly validating and analysing the data OZ-FS received a 51% return on investment .

The positive ROI was exciting as it represented the powerful intent of the participants, their teams and their new networks, to apply their new skills for the immediate benefit of OZ-FS.

This was particularly heartening for the management and sponsors of the program. There were also many other benefits, which were at that time intangible, however they had the potential to deliver a quantum of benefits for the organisation in the short to medium term.

Apart from this excellent result, there were also an array of projected benefits and a further suggestion of the possibility of a Projected ROI.