Recent layoffs at all the big companies remind us of the fact that any skill, any position, and any Employee can be replaced. It doesn’t matter how long one has worked for an organization and/or how critical one’s skills and position are to the company. We are in a digital age where we compete with technology more than intellectuality. A serious question every job seeker and employee must ask oneself is how I keep myself competent, relevant, and valuable amidst the volatile, uncertain, complex and ambiguous world.

The cardinal mistake that every employee does is to define commitment with attributes like loyalty, sincerity, tenure et cetera. They place their trust in the company, thinking that if they are sincere in their efforts and loyal to their leaders then the company will be loyal and will reciprocate the same towards them. Employees get long service awards which extrinsically motivate others and create a false sense of security that organizations recognize and revere employees with long service records. However, many of us tend to see only the number of years of service but don’t understand the journey to get there. It is pivotal to understand how the commitment in an organization is defined before setting a target number of years to work in an organization.

Organizational commitment is how an individual feels towards an organization. it’s like a psychological bond. It is a strong belief in and acceptance of the organisation’s goals and values. According to O’Reilly and Chatman (1986), there are three dimensions of organisational commitment are described as internalisation, identification, and compliance.

1. Internalisation measures the extent to which the employee feels they share the same mission and values as the organisation.
2. Identification describes the employee’s desire to affiliate with their organisation without accepting the organisation’s values as his/her own.
3. Compliance describes an employee who accepts the organisation’s values for his/her gain but does not internalise or hold any of those same values.

Though the above model was not very popular, Meyer and Allen (1991) proposed the most popular and comprehensively validated multidimensional model, which also has three dimensions as following

1. Affective commitment refers to the employee’s perceptions of their emotional attachment to or identification and involvement with their organisation and its goals.
2. Continuance commitment refers to employees’ perceptions of the costs associated with leaving the organisation.
3. Normative commitment refers to employees’ perceptions of their obligation to their organisation.

Now that we have a very fundamental understanding of what organizational commitment is, there are two parts to it. How does an organization approach its employees to stay longer in the company and what does an employee has to do to can stay longer in the company? These are two different approaches.

Once out of college, when we look for a job we want to work with established companies where we feel secure about our job. However, we neither factor nor emphasize the nature of work. For example, from a class of computer graduates, all of them may not be employed as software developers. Some may be into other functions, and or other support roles. It is perfectly fine as long one loves the work but if one accepts employment because of the company reputation, or the perks that come along, then the layoff or becoming obsolete down the lane is always there like the sword of Damocles

Employees tend to move into the comfort zone and slowly get into the zone of continuance and normative commitment. As people get older and remain in their organisations, they may develop an emotional attachment to the organisation that makes it difficult to switch jobs. Married people have greater financial burdens and family responsibilities and need more stability and security in their jobs. Therefore, they are likely to be more committed to their current organisation than their unmarried counterparts.

Organizational change management is a systematic approach to dealing with the transition or transformation of an organization’s goals, processes, and structure. It is a complex and critical process that involves making deliberate and systematic changes to an organization’s structure, processes, or culture to implement new strategies, technologies, or organizational structures. Organizational Change Management is vital for businesses as it helps manage the impact of change on employees, customers, and stakeholders. In today’s fast-paced business world, change management has become an essential part of the corporate landscape. In order to understand the different types of changes that an organization can undergo, it is important to distinguish between first-order change and second-order change, as well as between transformational and transactional change, and individual values and needs.

The importance of change management lies in the fact that change is an integral part of organizational life. Organizational change can be driven by internal factors such as technology, processes, and personnel, or external factors such as market competition, customer preferences, and government regulations. Effective change management ensures that businesses remain agile, resilient, and competitive by minimizing the negative impact of change while maximizing the benefits.

First-order change is incremental, meaning it involves making small adjustments to existing processes or structures. First-order change typically involves refining or improving existing processes or practices, rather than making significant changes to the organization as a whole.

Second-order change, on the other hand, is more radical and transformative. It involves rethinking and redesigning the entire organizational structure or processes and often requires significant cultural or behavioural shifts. Second-order change typically requires more time, resources, and buy-in from stakeholders than first-order change.

Transformational change is a type of second-order change that involves fundamental shifts in the organization’s culture, values, and beliefs. Transformational change often requires a significant investment of time and resources, as well as a strong commitment from leadership and other stakeholders.

Transactional change, on the other hand, is a type of first-order change that involves making small adjustments to existing processes or structures in order to improve efficiency or effectiveness. Transactional change can be more easily managed and implemented, but may not result in significant improvements to the organization as a whole.

It is important to consider individual values and needs in the change management process. Employees and other stakeholders may have different preferences and priorities when it comes to change, and it is important to take these into account in order to ensure successful implementation. Engaging employees in the change process and providing opportunities for input and feedback can help to ensure that their needs are being met and that the change is well-received.

1. Plan and Prepare: The first step in effective change management is to plan and prepare for the change. This involves identifying the need for change, defining the scope, and setting realistic goals and objectives. It is also important to identify potential challenges and barriers to change and develop a comprehensive plan to overcome them. The planning phase also involves identifying the key stakeholders and communicating the change effectively to them.
2. Communicate Effectively: Communication is a critical component of change management. Effective communication involves keeping employees, customers, and stakeholders informed about the changes and their impact. Communication should be timely, clear, and consistent to ensure that everyone understands the reasons for the change, what is expected of them, and how the change will be implemented.
3. Build a Change Management Team: A change management team is responsible for overseeing and implementing the change. This team should be made up of employees with the necessary skills and experience to lead the change effort. The team should also be able to work collaboratively across departments and functions to ensure a smooth transition.
4. Provide Training and Support: Training and support are critical components of effective change management. Employees need to be trained on the new processes, technologies, and systems to ensure that they can perform their roles effectively. This also involves providing ongoing support to employees to address any challenges or issues that arise during the transition.
5. Monitor and Measure Progress: Ongoing monitoring and measurement are essential to ensure that the change is successful. This involves tracking key performance indicators, gathering feedback from employees, customers, and stakeholders, and making adjustments to the change management plan as needed.

1. Involve Employees: Employees are the most important asset of any organization. Involving them in the change management process helps to build buy-in, ownership, and commitment to the change. This also involves listening to employees’ concerns, ideas, and suggestions and incorporating them into the change management plan.
2. Stay Agile: Change is a continuous process. Effective change management requires organizations to remain agile and flexible to adapt to changing circumstances. This involves regularly reviewing and updating the change management plan to ensure that it remains relevant and effective.
3. Celebrate Success: Celebrating the successes of the change management process helps to build momentum and enthusiasm. This also involves recognizing and rewarding employees who contributed to the success of the change.

Effective organizational change management is vital for businesses to remain competitive and successful. It involves a systematic approach to planning, communicating, implementing, and monitoring the change. By involving employees, staying agile, and celebrating success, organizations can successfully manage change and realize the benefits that come with it.

In summary, successful organizational change management requires a nuanced understanding of different types of change, including first-order and second-order change, transformational and transactional change, and individual values and needs. By taking a holistic and strategic approach to change management, organizations can improve their chances of success and ensure that changes are implemented in a way that benefits the organization as a whole.

Existing risk management systems at banking organizations might not be ready to face the challenges of the rapidly changing world. Poised to become the top banking industry trends for 2019 and years to come, AI-driven solutions with machine and deep learning algorithms provide a solution. As for cyber risk management, experts at Deloitte point at the following trends in the banking industry:

1. Strengthen basic controls like IT asset, patch, and vulnerability management to identify and manage risks related to implementation of cloud and migration to open architecture.
2. Use analytics tools and AI with security in mind.
3. Build an IT infrastructure with security as a top priority: it should be able to withstand systematic attacks and long stress periods.

Fintechs and nonbanks now have a substantial influence in the banking industry. They are highly agile, innovative, and aim at exceeding the demands of modern customers in banking services and experiences. Established retail banks need to compete and often play catch-up. Still, they acknowledge the need to change, and change fast.

Thus, adopting the same approach is a potent solution for retail banks that aim at adopting the latest trends in the banking industry quickly and impactfully.

Since the time of industrialization, there have been several techniques introduced to measure performance, such as Management By Objectives(MBOs), SMART(Simple, Measurable, Attainable, Relevant, and Timebound)objectives, and Key Performance Indicators (KPIs). As time went by, a new concept named Objectives and Key Results (OKRs) emerged, which is built on the basis of Management by Objectives (MBOs). There are several companies, like Google, LinkedIn, Oracle, etc…,have achieved great results using the OKRs. However, some companies still use KPIs, and maybe they believe that the idea of performance evaluation does not become true without KPIs.

KPIs were inventedin the United Kingdom,andit is a performancemanagement method. KPIs are used to evaluate the performance of an organization, individuals,and team.It uses indicators as evaluation criteria to evaluate the performance,and KPIs intern usesSMARTcriteria.

OKRs,on the other hand,invented by INTEL, is a framework that helps to define Objectives and theirassociated success indicators which are called “Key Results.“OKRs are considered a critical thinking framework and a discipline to work together on measurable results. OKRs intern uses Management by Objectives (MBOs) criteria. OKRs can be implemented in four steps:

1. Setting Goals (Define the Objectives)
2. Determine the Key Resultsfor each goal
3. Establish and implementthe plan
4. Regular Review, feedback,and relentless improvement

Example OKR

Objective: Increase brand awareness

Key Result 1 (KR1): Create a subject matter article bi-weekly and upload it to the website

Key Result 2 (KR2): Conduct a minimum of two Agile trainings monthly

Key Result 3 (KR3): Meet and demonstrate our offerings to a minimum of three customers a month

There are some similarities; KPIs and OKRs are intended for the purpose of meeting the organization’s goals. Key indicators in KPIs and key results in OKRs are similar.

In conclusion, when compared with KPIs, OKRs are a perfect mechanism for an organization to meet the expected goals (objectives) since OKRs encourage transparency, collaboration, and involvement at all levels of an organization and a sense of ownership. In addition to it, OKRs provide a framework with steps to develop, track, and relentlessly improve.

References:

1. Niven, P. R., & Lamorte, B. (2016). Objectives and Key Results: Driving Focus, Alignment, and Engagement with OKRs (Wiley Corporate F&A) (1st ed.). Wiley.
2. Gray, D. (2019). Objectives + Key Results (Okr) Leadership: How to Apply Silicon Valley’s Secret Sauce to Your Career, Team or Organization. Action Learning Associates, LLC.