Change Management Practices and Growth of the Eastern and Southern African Trade and Development Bank
Abstract
This study's objective was to identify change management practices and growth of the TDB. During a stakeholders’ meeting in December 2016 in Nairobi, and at the sidelines of the African Union Summit in Addis Ababa, in January 2017 the Preferential Trade Area Bank, (PTA) leadership communicated that it had rebranded to Eastern and Southern Africa Trade and Development Bank (TDB). According to TDB, the rebranding illustrates the intention to transform the whole organization into a world-class African investment ready institution, ready to take on projects that will significantly impact the region’s economies. The rebranding is a component of a bigger strategy for revitalization reflected by the years of reforms and innovation. The Bank has introduced new member states, launched new class of shares and new shareholders. The Bank has a more modern, robust governance structure, and a stronger institutional frame work as reflected in the new Treasury and Risk Management Division. The study, which is qualitative in nature, makes use of face-to-face interviews via an interview guide as well as secondary data collected through newsletters, financial statements and videos. Theoretical framework of the study is informed by contingency theory, which advances the argument that there is no one-best-way approach to change management. In this regard, the researcher used both planned and emergent theoretical models of change. Change management practices observed include business continuity programs, workshops & trainings, performance management programs using tools such as the balance-score card, anti-money laundering programs, enhanced governance & risk management, and Lean Six Sigma methodology of managing change. The parameters for growth at the Bank include the international ratings, growth in loan portfolio, assets, shareholders capital, improvement in loan quality, reduction of non-performing loans, growth in membership, expanding of the human resource capacity and overall growth of the balance sheet. The study concludes that there is no one-best-way approach for change management. Different complimentary models must be used depending on situational and contextual factors, keeping in mined that team participation and top management support is very crucial for success of change management practices and growth. Top management allocation of time, resources and responsibility to team leaders motivate them to undertake change management and growth projects with better ownership and avert crisis when changes occur. Team participation allows the different members of the team to provide feedback on the change management programs they are undertaking while pursuing the planned change and organizational growth. This feedback forms the basis for the emergent models of change that address issues arising.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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