A Generic Organizational Change Plan Outline (Based upon Kotter’s Perspective for Transformation) I. Introduction II. Executive Summary/Purpose/Goals a. Include recognition of the need for change b. Recognize need for a plan III. Actions/Steps/Events that will Establish a Sense of Urgency Given the Organizational Culture a. Analyze current and/or future market and competitive realities b. Identify the opportunities and/or threats driving the need for change IV. Actions/Steps/Events taken to Form a Powerful Guiding Coalition a. Identify the key players needed to advance a change effort b. Define the selection, structure, and relational characteristics of the team V. Actions/Steps/Events to Create a Compelling Vision for Change a. Create a vision for directing the change effort b. Determine point A (where the firm is currently) and point B (where the firm desires to go) c. Develop a timeline for the change journey VI. Actions/Steps/Events to Effectively Communicate the Vision a. How will communication take place? In what format and communication channel? (i.e., in person, by e-mail, by division, by focus groups, publicly, privately, etc.) How often and/or on what timeframe? b. Who will be involved? How will they be selected? How will they be involved? VII. Actions/Steps/Events to Manage Resistance to Change a. Education and communication b. Participation and involvement c. Facilitation and support d. Negotiation and agreement e. Manipulation and co-optation f. Explicit and/or implicit coercion VIII. Actions/Steps/Events to Empower Others to Act on the Vision a. Removing systems or structures that hinder the change project b. Encouraging risk-taking and nontraditional ideas IX. Actions/Steps/Events to Plan and Create Short-term Wins a. Create visible performance improvements b. Acknowledge and reward employees involved in improvements X. Actions/Steps/Events to Consolidate Improvements and Produce More Change (i.e., advance the change project) a. Use credibility from early successes to change additional systems/structures that do not fit the new vision b. Develop employees/recruits who can implement the new vision XI. Actions/Steps/Events to Institutionalize the New Approaches a. Articulate the link between new behaviors/processes/structures and organizational success b. Develop actions to ensure leadership development XII. Actions/Steps/Events to Reevaluate Change a. Evaluate critical success factors as control measures b. Analyze the environment to determine if point B is still appropriate Page 1 of 2 MGT 597 – Organizational Change PlanningWinter Mini 2021 - 2022 Organizational Change Case Scenario Rural Bank, Inc. (RB) is a $5 billion financial services organization. For the past 50 years, RB has focused exclusively on the lending of money to farmers and ranchers for the purchase of land and equipment (tractors, cotton pickers, etc.). They operate solely in Texas and have an office in every county within t.

1. A Generic Organizational Change Plan Outline (Based upon
Kotter’s Perspective for Transformation)
I. Introduction
II. Executive Summary/Purpose/Goals
a. Include recognition of the need for change
b. Recognize need for a plan
III. Actions/Steps/Events that will Establish a Sense of Urgency
Given the Organizational Culture
a. Analyze current and/or future market and competitive
realities
b. Identify the opportunities and/or threats driving the need for
change
IV. Actions/Steps/Events taken to Form a Powerful Guiding
Coalition
a. Identify the key players needed to advance a change effort
b. Define the selection, structure, and relational characteristics
of the team
V. Actions/Steps/Events to Create a Compelling Vision for
Change
a. Create a vision for directing the change effort
b. Determine point A (where the firm is currently) and point B
(where the firm desires to go)
c. Develop a timeline for the change journey
VI. Actions/Steps/Events to Effectively Communicate the
Vision
a. How will communication take place? In what format and
communication channel? (i.e., in person, by e-mail, by division,
by focus groups, publicly, privately, etc.) How often and/or on

2. what timeframe?
b. Who will be involved? How will they be selected? How will
they be involved?
VII. Actions/Steps/Events to Manage Resistance to Change
a. Education and communication
b. Participation and involvement
c. Facilitation and support
d. Negotiation and agreement
e. Manipulation and co-optation
f. Explicit and/or implicit coercion
VIII. Actions/Steps/Events to Empower Others to Act on the
Vision
a. Removing systems or structures that hinder the change
project
b. Encouraging risk-taking and nontraditional ideas
IX. Actions/Steps/Events to Plan and Create Short-term Wins
a. Create visible performance improvements
b. Acknowledge and reward employees involved in
improvements
X. Actions/Steps/Events to Consolidate Improvements and
Produce More Change (i.e., advance the change project)
a. Use credibility from early successes to change additional
systems/structures that do not fit the new vision
b. Develop employees/recruits who can implement the new
vision
XI. Actions/Steps/Events to Institutionalize the New
Approaches
a. Articulate the link between new

3. behaviors/processes/structures and organizational success
b. Develop actions to ensure leadership development
XII. Actions/Steps/Events to Reevaluate Change
a. Evaluate critical success factors as control measures
b. Analyze the environment to determine if point B is still
appropriate
Page 1 of 2
MGT 597 – Organizational Change PlanningWinter Mini 2021 -
2022
Organizational Change Case Scenario
Rural Bank, Inc. (RB) is a $5 billion financial services
organization. For the past 50 years, RB has focused exclusively
on the lending of money to farmers and ranchers for the
purchase of land and equipment (tractors, cotton pickers, etc.).
They operate solely in Texas and have an office in every county
within the Sate. The average office is staffed with four customer
service representatives (CSRs) who perform the majority of
clerical duties, and four loan officers who take credit
applications, analyze them, and make loan decisions. RB is a
traditional lending institution where current and potential
customers drive to their local branch and request funds as
needed. That is until now.
Growth in the agricultural sector has been nonexistent for
several years. The truth is that the bank is in decline, as new
business is roughly 5% of the asset base per year while payoffs
result in nearly 10%. The firm must grow rapidly and

4. consistently or the bankruptcy spiral will continue. The
leadership team understands the dilemma and has made the
decision to undertake the needed revolutionary (radical) change
to position the firm for growth. In response,
YOU have been brought into the firm as a leadership
team member to function as the change agent.
The situation is this – First, a new technology has become
available (radical change is often initiated by innovation). It is
credit scoring software. It is reasonably cheap and has proven
reliable in predicting loan repayment and maintaining credit
quality. After a review of RB’s current trends, it has been
determined that 90% of current lending could be accomplished
satisfactorily with the new software.
This software would assist in RB’s change from a
traditional banking culture to that of a very proactive sales
culture. No longer would loan officers sit behind desks and wait
for loan requests. They would have company cars, laptops,
portable printers, etc. In essence, they would now be money
salespeople. Instead of passively waiting, they would be outside
calling on potential clients in search of the desperately needed
new business. Of course, such a dramatic cultural shift,
predicated by the change, will have numerous implications for
the company.
For one, the change means the structure must also change
(The strategy must dictate the structure, not the other way
around). With the new business model, there will be no need for
an office in every county. In fact, the company expects to move
from the current 254 offices to only 20 strategically located
around the State, as customers will no longer be expected to
come to their local office. Of course, this impacts personnel. In
particular the number of CSRs will decline and many of those
remaining will likely have to relocate to the new regional area
offices.
The bigger impact, though, will be on the loan officers.
Most have been with the organization for many years and valued

5. because of their exceptional abilities with credit analysis. The
new system, though, means that actual “human” credit analysis
will only take place with a small percentage of loans. Thus, the
decision has been made to have one underwriting center in
Dallas, staffed by only 40 business analysts (BAs). There are
currently approximately 1,000 loan officers. And although we
only need 40 of them doing “hands on” analytical work, we
need the other 960 (and possibly even more) out “hitting the
pavement” looking for new business (business development
officers). Of course, some of these newly labeled BDO’s can
make the transition from underwriter to money salesperson
without a great deal of training. Others will make the transition
with much training and great effort. Unfortunately, others will
simply be unable to make the change, albeit through no fault of
their own. It is safe to assume there will be significant
resistance to change that you will have to overcome.
In response, our HR function will be greatly impacted. Not
only will we need to hire many more employees, we need to
make sure they have the newly valued skills – the ability to sell
money is now more important than differential credit analysis.
Moreover, these money salespeople will need to be compensated
differently, with a portion of their income tied to their sales
performance. Branch managers must now become effective sales
managers. But we must also make sure that everyone, CSRs,
BDOs, and BAs are all on the same page of seeking new
business for growth and that all are treated fairly – not the same
– but equitably. Because of the change, it is reasonable to
assume that every HR function – training, development,
compensation, benefits, etc. – will be impacted for every
position in the company. Of course, these levels of broad
change may also result in lowering the morale of many in the
organization, so we need to make sure this is addressed.
In addition, the leadership team has made the decision to
move beyond agricultural lending and pursue home loans in
their attempt at rapid growth. Of course, all past suppliers,
advertisers, etc. are solely focused on farming and ranching.

6. The first home loan advertisement they ran had a tractor in the
background and did not go over well with suburban home
buyers. In response, RB has decided to go with a strategic
business unit structure. They will basically have two separate
organizations under the corporate umbrella of RB. This will
necessitate a separation of sales and underwriting into
agricultural markets and home loan markets, with personnel
dedicated solely to each. This will have great impact in most
every functional discipline in the firm – loan accounting,
marketing, finance, etc.
And this is the point. While we often think of change in
terms of going from point A to point B, we rarely consider the
extensive reach of the implications organization wide. At this
point, you can assume the leadership team has completed the
proper analyses and their course of action is needed and in the
best interest of the firm, so that part of the heavy lifting is done
for you. Now the real issue with organizational change
management –
YOU must develop the plan to implement the needed
changes. You must maintain acceptable morale by properly
educating the employees. You must effectively communicate a
compelling vision of the change to all organizational personnel
(remember transformational leadership?). You must foresee the
implications upon and reactions by every functional discipline
within this organization. You must create a comprehensive plan,
complete with action steps and timelines, to educate,
communicate, implement, and institutionalize the needed
changes. As part of the plan, I want to see support (from the
journal literature) for your methods. The survival of this firm,
and the livelihoods of its many employees, is squarely placed
upon your shoulders.
Welcome to organizational change planning. I wish you great
effort!

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