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Transforming TSB Group (C): managing the change teams

Author: Dutta, Soumitra ; Manzoni, Jean-François ; Gee, FrancescaINSEAD Area: Technology and Operations ManagementPublisher: Fontainebleau : INSEAD, 1997.Language: EnglishDescription: 15 p.Type of document: INSEAD CaseAbstract: In 1989 the new chief executive of TSB Group's retail bank, P. Ellwood launched a reorganization 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 P. Ellwood's 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 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 thereafterPedagogical 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 retructuring, 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 details 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).
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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 retructuring, 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 details 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).

In 1989 the new chief executive of TSB Group's retail bank, P. Ellwood launched a reorganization 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 P. Ellwood's 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 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 thereafter

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