Context

The Executive Team of Lloyds TSB Retail Bank decided to make a significant shift from a ‘product first’ to a ‘customer first’ strategy.  This entailed, amongst other actions, convincing approximately 5,000 managers and co-ordinators of 30,000 staff to change a focus and behaviour pattern that had been built over eight years since the merger of the two banks.  This approach was seen by managers and the stock market to have been a profitable approach and the leadership team praised their people at the end of 2003 for another successful year. 

However, on 1 October 2003 the FSA instructed to bank to refund £90+Million to those of its customers who were deemed to have suffering mis-selling.  Furthermore, focus group analysis had shown that customers of all banks were moving against the hard product sell and looking for a more personal service.  The need for change was apparent to the leadership team.  The staff were thought to be ahead of the change in wanting an environment where they could give real customer care rather than being pressured to sell at every opportunity.  The concern was the middle to senior managers who had achieved their advancement in the old environment and who would be key in modelling and establishing, or obstructing, the new.

CLC was engaged to help the bank build and subsequently deliver a programme that would create awareness, develop understanding, build involvement and engagement and establish commitment to the customer focused programme called “You First” internally and externally.  CLC’s 5DL (Five Dimensions of Leadership) as the leaders context for their work were in real contrast to the bank’s business process and numbers mindset.  It was this complementarity that the bank elected to use in order to build an attitude and behaviour changing programme that would not be rejected by the bank’s middle management.


CLC Response

CLC consultants have a range of skills and experience that span a spectrum of business nous and acumen to psychological awareness and practice whilst encompassing both.  To match the client’s culture while, at the same time, providing the impetus to move them in the desired direction, CLC selected three consultants whose complementary strengths enabled them to stand alongside the client’s management and to stretch them in the desired direction.

CLC’s sponsors in the project were the HR Director who had seen the need for external assistance and the Marketing Director who had identified and defined the necessary change.


Overview of the Project

CLC conducted diagnostic interviews in November and December 2003 with the senior team and their immediate reports in order to discern the change readiness of these leaders and to understand the current reality in the bank.  Concurrently, CLC worked with the Programme Manager to define the project, to identify the resources and skills required and to establish a guiding coalition (in Kotter’s terminology).    

The results of the interviews were presented to the sponsors and a programme was agreed.  It consisted of:

  1. A workshop with the Senior Team to achieve alignment and commitment to the change programme
  2. Workshops with the management teams of all the Senior Team members to embed that alignment and commitment in the hearts and minds of the senior operational managers
  3. An awareness and understanding building communication programme to move people from the “2003 was a fantastic achievement” position to a recognition of the need to change in 2004 – and to change relatively quickly and dramatically
  4. A series of Engagement Workshops to take the next levels of management through the involvement and engagement stages and motivate them to lead their people down the same change journey – the commitment stage

Lloyds TSB’s policy with respect to use of outside consultants was to bring themselves to a point of self-sufficiency as soon as possible.  Therefore, it was decided to work with CLC to align the Senior Team members and their management teams, to build the Engagement Workshops and to train the trainers who would run these workshops at the subsequent management levels.

The workshop with the Senior Team was held in January 2004 and with the next level over the following three months.  One key feature of the workshops was the exposure of the managers to the power of mindsets and to an understanding of what was required of them as leaders to establish the new mindsets – the new culture.  Another feature was a practical identification of and commitment to the specific observable behaviours that would model the new culture.  In this way, attitudinal and behavioural change was addressed economically and effectively so as to put clear responsibility as well as skills into the hands of operational managers.

The project concluded, for CLC, with Train the Trainers workshops in May 2004 and a handover to Lloyds TSB’s own people.  The roll-out of workshops continued through 2004 and the “You First” marketing campaign and re-positioning of the bank took place as planned and resulted in significant transformation for LTSB.

5DL The Book

5DL The Book Rev1

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The Creative Manager

CM Reduced

An exploration for the potential for change in all individuals and the reasons why so many fail to achieve that potential in the environment of an organisation.