NAME: Lawal Adedeji INSTITUTION: Keller Graduate School of Management COURSE: HRM 587 TITTLE: JP Morgan Chase Bank and Bank of America DATE: 03/06/16 JP Morgan Chase Bank and Bank of America Over the last few years JP Morgan Chase Bank and Bank of America have undergone similar changes in their operation and such changes have enabled them to become some of the top banks in United States. JP Morgan Chase Bank is one of the oldest institutions of finance in the United States. The bank has a long history dating back to over 200 years. Currently, it is the leading global financial services firm with assets of $2.4 trillion and it operates in more than sixty countries (Leedy, 1999). The company is leading in investment banking, financial services for consumers and a big business and it has more than 240, 000 employees. Similarly, the Bank of America is a multinational banking and financial services corporation. It is the second largest bank holding company in the United States by assets. In provision of its services and products, the Bank of America operates 5100 banking centers, 16300 ATMs and online and mobile banking platforms (Boffey and Nader, 1975). Both JP Morgan Chase and Bank of America have undergone almost similar changes in their operations to achieve their current global financial position. I have selected the two banks since they are the leading banking institutions in America and have grown almost at a similar pace regardless of the time in which they were started. The operation of the two banking systems is one and the same and it is quite fascinating that the challenges and changes that the two banking institutions undergo are almost similar. Over the last seven years, both JP Morgan Chase and Bank of America have been cautiously navigating their way through a transaction banking paradigm shift, emphasizing on the quality of their banking system as much as their size. Both banks have invested in building technology, expertise and global reach required to help corporations grow. They have both ventured into mobile banking, extended their banking system globally and currently are on the verge of moving towards greater integration of banking services. Underpinning this cooperative way of working is a revolution in technology. References Boffey, P. M., & Nader, R. (1975). The brain bank of America: An inquiry into the politics of science. New York: McGraw-Hill. Leedy Jr, M. J. (1999). U.S. Patent No. D408,054. Washington, DC: U.S. Patent and Trademark Office. Running head: THE CHANGE ANALYSIS - IMAGES OF CHANGE The Change Analysis - Images of Change Adedeji Lawal Keller Graduate School of Management 03/14/2016 1 THE CHANGE ANALYSIS - IMAGES OF CHANGE 2 The Change Analysis - Images of Change Facts and Information from the proposal The banks are financial powerhouse of not the only United States, but also to the whole world. Somehow they are the oldest banks in the United States. They are the most successful banks in the United States of America. The two companies all operate globally i.e. they are MNCs. They are the major source of employment, for example, JP Morgan Chase Bank boasts of approximately 240,000 employees. According to Boffey and Nader (1975), JP Morgan Chase Bank has approximately 5100 banking centers, and 16300 ATM centers while at the same time offering online, and mobile banking services. Their growth paste is rather similar irrespective of their initiation period. The major performance ensuring their greater performance in a very competitive field of offering financial services is handling successful mergers and acquisitions (Banulescu & Dumitrescu, 2015). Changes and how they impacted to the operation of JPM and BAC Both the Bank of America and JP Morgan Chase Bank have undergone some changes that have made them the top financial institution in the United States. For example, the shape of JP Morgan Chase Bank has gone under mergers and amalgamations with other financial institution. To mention just a few; in 2010 JP Morgan acquired full operation and ownership of the United Kingdom joint venture. Another M&A took place in 2008, where the bank acquired the all the deposits, assets, and other liabilities of Washington banking operations (Banulescu & Dumitrescu, 2015). This was responsible for the expansion of the bank to California, Florida, and the Washington States. Previously, there were M&A with various financial institutions such as Banc One Corp., Chase Manhattan, and Manufactures Hannover Corp. among others. Bank of THE CHANGE ANALYSIS - IMAGES OF CHANGE 3 America has also undergone various mergers and acquisitions to ensure its expansion in the recent past. For example, the institution has planned a merger with Goldman alongside Citi Bank. This will see their M&A forecasts to range from $3.3 trillion to $4.5 trillion. This will be an increase to the prior from $2.7 trillion-$4.5 trillion (Taylor et al., 2012). Images Sizes of the bank (Operation) An MNE or MNCs are companies that offer similar services in different countries under different operations. Both the Bank of America and JP Morgan Chase Bank offers their services in several developed countries and least developed countries. This, therefore, ensures the continuous profit to the companies and hence, their success. Offering varieties of quality services Both the banks provides various services to their customers through allowing the use of various access to the banking services. For example, they all offer online banking services, they also offer mobile banking, they also have several branches in the United States and other countries. Lastly, they offer ATM services at various public places to ensure satisfaction of customers. Some of the service offered online includes money transfer, balance enquiry, mini statement, cash withdrawal, payment services among others. Mergers and Acquisition Diversification Both the banks have been in operation for at least 200 years. Hence, they understand the industry well. This is witnessed in their successful bids of M&A with different banks around the United States and outside. This has helped them in shaping up to one of best financial service providers around the world (Allahrakha et al., 2015). Comparing and Contrasting THE CHANGE ANALYSIS - IMAGES OF CHANGE 4 Growth through Mergers and Acquisition The banks were able to take advantage of 2008 Global Financial crisis to lure distressed firms into acquiring them. JPM ensured this through the acquisition of Bear Sterns & Company; on the other hand, BAC ensured acquired Countrywide Financial and Merrill Lynch & Company. Such firms were on the verge of being declared bankrupt. JPM added to its investment banking division through acquiring of Bear and Stearns paying a share price of $10 for a share that was initially trading at $60. For BAC, acquisition of Countrywide helps them increase their mortgage services (Taylor et al., 2012). Sizes of the Bank (Operation) They are among the largest financial institution globally. They operate as multinational enterprises around the world i.e. they operate in other countries apart from their home country (United States). JPM is the fourth largest financial institution in the world regarding assets it possesses, amounting to $2.7 trillion. It has subsidiaries in approximately more than 70 countries overseas. On the other hand, according to Forbes, Bank of America is the third largest bank in the United States in 2010. Its assets are amounting to $2.1 trillion, and it is operational in all 50 states. It has branches overseas that are approximately more than 50 (Banulescu & Dumitrescu, 2015). Variety of Quality Services Both banks offer greater quality services to their customers. Fed usually tests the stress of the banks especially when the firm wants to increase their capital program. JPM will have the go ahead to continue serving the customers after passing the stress test. All the financial institutions in the United States faces the same headwinds, but JPM has a better dividend yield as well as positive performance as compared to others such as BAC. BAC, unlike JPM, was granted only a THE CHANGE ANALYSIS - IMAGES OF CHANGE 5 conditional approval of its capital program. This was because of their low dividend yield of 1.3% as compared to JPM, which had a dividend yield of 2.9%. The dividend yield of JPM was considered decent (Taylor et al., 2012). Image that Facilitated change Increasing the operation, given that both JPM and BAC only operates in countries less than a hundred each i.e. approximately 70 and 50 countries respectively. Increasing their operation to countries with stable finances will ensure an increase in earning to both companies. They can also operate in other countries with varying rates or unstable economies (Kitov, 2012). They can hedge against such exposures of exchange by only allowing withdrawals in USD. The continuous investment will surely boost their income (Allahrakha et al., 2015). Change Agent Both the banks have experience in operation in finance and other related areas. Since all the two firms expanded through mergers and acquisition, I will take M&A as a change agent. They did proper timing when several banks were facing tough times due to the financial crisis of 2008. Several banks and other financial institutions were facing bankruptcy and, therefore, were already wishing for dissolution (Kitov, 2012). This is the time both the banks came in to take over, acquire, and merger with certain banks at extremely unacceptable prices, for example, buying a share that was initially selling for $60 at $10. Hence, mergers and acquisition are the change agent to two of the most successful banks in the United States (Banulescu & Dumitrescu, 2015). THE CHANGE ANALYSIS - IMAGES OF CHANGE 6 References Allahrakha, M., Glasserman, P., & Young, H. P. (2015). Systemic importance indicators for 33 US bank holding companies: an overview of recent data. OFR Brief, (15-01). Banulescu, G. D., & Dumitrescu, E. I. (2015). Which are the SIFIs? A Component Expected Shortfall approach to systemic risk. Journal of Banking & Finance, 50, 575-588. Taylor, S. J., Tzeng, C. F., & Widdicks, M. (2012, December). Bankruptcy probabilities inferred from option prices. In 25th Australasian Finance and Banking Conference. Kitov, I. (2012). Cross comparison and modelling of Goldman Sachs, Morgan Stanley, JPMorgan Chase, Bank of America, and Franklin Resources.Morgan Stanley, JPmorgan Chase, Bank of America, and Franklin Resources (December 6, 2012). Boffey, P. M., & Nader, R. (1975). The brain bank of America: An inquiry into the politics of science. New York: McGraw-Hill. Adedeji Lawal Keller Graduate School of Management of Devry University Diagnosing the Change 03/27/2016 Change Diagnostic Model Over time many different models have been developed to evaluate and analyse company's performance. This paper analyses JP Morgan Chase Bank and Bank of America using the 7-S, (Structure, strategy, system, style, staff, superordi-nate goals and skills) Framework, (Waterman 1980). It was developed by the McKinsey & Robert Waterman, company consultant; Julien Phillips and Tom Peters, (Waterman 1980). The model is characterised by two propositions: organisation effectiveness is derived from the interaction of multiple factors; secondly, successful change needs attention to the interconnectedness of the variable. Structure is the organisational design in a formal way, (Waterman 1980). Strategy refers to \"the company's chosen route to competitive success\" while systems are procedures employed in various organisational departments such as finance an accounting, (Alexander 2011). Styles comprises of patterns followed by an organisation when handling challenges, carrying out daily operations and how it behaves when need arises. On the other hand skills are referred to as the special attributes or capabilities possessed by the subordinate staff working in different departments, (Waterman 1980). The superordinate goal is the major aim and objective that the firm is striving to attain or meet in future, (Alexander 2011).it is the driving force. Finally, Staff is described as the processes involved for human resource development in an organisation, (Waterman 1980). All these combined together, provides a full image of any organisation. Rationale for 7-S Framework Model Due to various reasons, I preferred to use 7-S Framework in my analysis to other diagnostic model. First, the 7-S covers all parts of the organisation starting from the company goals to the staff. Unlike the Congruence Model of Nadler and Tushman's, 7-S framework provides clear elements to focus on while initiating changes in an organisation. This makes it easier and faster to find areas that require changes as well as expected resistance. Secondly, the two banks, Bank of America and Chase Bank are currently facing stiff competition from other local and internal banks, (Kitov 2012). Therefore, by using 7Framework, both weaknesses and opportunities are pointed out clearly hence initiating changes in the respective areas to cope the stiff completion. The market in which the organisations operate also contributed to my choice of 7-S framework. Both Bank of America and JP Morgan Chase Bank are in the banking sector and operate in an international market, (Kitov 2012). For the sake of survival in this market they need well stated vision which represents a goal, well organised structures, systems and highly expertise personnel. All of these aspects are well evaluated and covered under 7-S model as compared to other models. SWOT Analysis: Bank of America Strengths The organisation has a strong system which has enabled it to control, manage all its financial products and services around the globe. Secondly, its strategies are well defined. The bank has utilised internet banking system to diversify its financial products and services, (Bank of America 2015). Weaknesses Mismanagement due to poor staff is the major weakness. Recently, six directors have resigned which has led to formation of a collision office for regulation purposes. This was due to management dilemmas. Another weakness is Poor organisational structure. The bank operates internationally but focuses more on local market than international market, (Bank of America 2015). Opportunities With its well-designed system, the company has an opportunity to offer innovative products. Furthermore, using its goal it has an opportunity to increase its market share by penetrating into other countries outside US. Threats Well defined structures from other banks might reduce firm's market share. Underutilization of the international market might lead to its failure internationally. SWOT Analysis: JP Morgan Chase Bank Strengths The company has a very attractive goal, \"At JP Morgan Chase, we want to be the best financial service company in the world Because of our great heritage and excellent platform; we believe this is within our reach.\" (JP Morgan Chase & Co. 2016) It has also utilised the internal human resource by employing local people in the countries it extends its products and services. Weaknesses The bank has insufficient IT infrastructures to maintain their systems in the banking sector. A poor style during mergers and acquisition that usually leaves a negative attitude from the public is a major weakness too, (JP Morgan Chase & Co. 2016). Opportunities Continuous restructuring to absorb all customers' needs and requirement is one of the opportunities. The company has also an opportunity of utilizing international expertise and skilled personnel to promote its business. Threat Overworking of staff members might make them to quit hence losing the most reliable skilled and expertise personnel. Secondly, stiff competition from other commercial banks. Potential areas of Resistance Through the analysis various areas were anticipated to encounter some resistance. To start with is the management of the two banks, JP Morgan Chase Bank and the Bank of America. The managerial teams are not willing to change one of the seven aspects in the operations. For instance, the management of the Bank of America is against altering its systems demanding that it will destroy their network. To mitigate the resistance past experiences in which the changes have been successfully initiated will be utilized to convince the management. A good example is the Bank of Canada which made some changes to its systems of operations. Another area is the subordinate staff. One of the changes for two banks is to utilize international market by obtaining skilled and experts from different regions to aid operations. Due to the fear to lose their jobs, employees are expected to offer resistance on this change. As a way of minimising resistance, each employee will be sign a long term contract prior changes so that they can all be assured of maintaining their positions or jobs. Recommendations It was observed that the Bank of America make little use of its well-developed systems in the international market. I therefore recommend that the company should focus more on the international market than the local market since it has the potential. Additionally, it should also restructure so as to accommodate all customers and employees. Secondly, both organisations should manage their staff well. They should outsource skilled personnel to improve the quality of their staff. It was found that both firms rely on US employees only to market and offer their products in all markets inclusive of international markets. Engaging locals in their operations will not only create a good rapport in the international market but will also generate more profit to the companies. For JP Morgan Chase Bank, it should improve its IT infrastructure since it was found that its systems are not strong enough to support and maintain its operations. References Alexander Michalski, (2011). The McKinsey 7-S Framework: Invented in the 1980s and Still A Possibility for Success Today, Open Publishing GmbH Bank of America Corporation Form 10-K. (2016). Sec.gov. Retrieved 16 March 2016, from http://www.sec.gov/Archives/edgar/data/70858/000119312509041126/d10k.htm J.P. Morgan Chase & Co. (2016). Company Information and Profile of J.P. Morgan &Co. Retrieved 25 March 2016 from: http://www.makingafortune.biz/list-of-companies-j/jp-morgan-chase-co.htm Kitov, I. (2012). Cross comparison and modeling of Goldman Sachs, Morgan Stanley, JPMorgan Chase, Bank of America, and Franklin Resources.Morgan Stanley, JPmorgan Chase, Bank of America, and Franklin Resources (December 6, 2012). Waterman, Peters, and Phillips, (1980): The 7-S Framework 1 Running head: COMMUNICATING CHANGE WITHIN CHASE AND BANK OF AMERICA Communicating Change within Chase and Bank Of America Adedeji Lawal Keller Graduate School of Management 2 COMMUNICATING CHANGE WITHIN CHASE AND BANK OF AMERICA Communicating Change within Chase and Bank Of America Communication is the main channel to address changes within Morgan Chase bank and Bank of America respectively. The key motivator toward better communication is delivering the right message, within the stipulated time. The world most developed teams are those with effective communication policy. It is to consider many factors before choosing the right pathways towards effective communication. The company is any organization of different stakeholders each doing the different task for the ultimate success. The company is made up of the following stakeholders: employees, customers, the management team, investor and the community to a great. These stakeholders combine efforts to make the company a success. The company cannot exist without the cooperating of each stakeholder. The banks need to address the changes to their customers in a way that will create an understanding of the financial situation. Customers in the two banks must be provided with the insight for the security of their finances within these banks. Bank of America and Chase Bank Morgan international banks the entire stakeholder needs to be communicated differently from another. In the case of the employee emails and internal memorandums are the most effective they must be provided with a mechanism to address the adding financial mechanism the two banks boost a mega employees 24,000 employees who need to give reason as to why these financial changes. In the case of customers, radio and television advertisement will be the most successful method to use the radio should be given enough information on the changes and ensure deposits will not be affected in the bank of America and Chase Bank with the banks operating around the global the bank of America chase bank must give appropriate reasons as to why the changes are being undertaken and how they 3 COMMUNICATING CHANGE WITHIN CHASE AND BANK OF AMERICA will affect the future of the company; the management team lives meeting will be the most beneficial and final to the investors using email, and website updates will be the most effective (Sridhar,2016). The timeline for communication should be considered. To avoid panic the time should be enough and be communicated early, at least, one month before the actual change is undertaken will be necessary. Time will give the whole organization ample consideration for alternatives. Also, it will be needed for the entire enterprise to adapt to the changes expected thus at the time of change it will integrate within the system with ease. Furthermore, this time will create room for consultation within the organization to address any challenge that the change may bring. The two banks that is the Chase bank and Bank of America must use the best communication mechanism which will not disrupt any parties. The must be particular reason towards choosing a different type of communication toward stakeholders. In the case of employees, e-mail will be efficient because they can be sent thus saving time. Also e-mail is a cost-effective method of communication thus money will be saved. In the case of using internal memorandum they will be located in the main areas as employee notice board where each and every employee can access in this case, memos are inexpensive, second they provide evidence due to the signature appearing with them. Also, memo saves time and is ensure critical thinking thus becoming importantly in addressing employees in this context the worker in the Morgan Chase and Bank of America banks will need to guarantee their employee on their job and their finances (Strand, 2012). For the customer using radio and television advertisement, the primary drives are the television creativity and ability to reach large customer number is the core reason behind its use. Also, the use is powered by motion pictures which can be used to attract more 4 COMMUNICATING CHANGE WITHIN CHASE AND BANK OF AMERICA customers. According to available data, at least, every household own a radio Thus, it will be the most effective to communicate the change to clients, and also, its cost is presumably very efficient and lastly, the information is delivered within the time. Morgan and chase bank will need to critically show the customers finances are secure in any case and the changes will not affect their deposits The management will have looked for a better ways to provide the financial guidelines that are necessary chase and bank of America. The use of live meeting within the management team is because the management needs to discuss each and every idea adequately and come up with the best mechanism. In fact, it will bring more consultation which aims at providing the best changing conditions. In the case of investor website update will be necessary due to their attachment and busy schedule usually in other companies (Goetsch, 2014) the management of the Morgan chase bank and Bank of America will have to assure the customer and investor that their money is secure and also that the changes will improve the security of deposits. The independent contractor to make change needs to be give guarantees of their money by Morgan and chase bank respectively Bank of America and Chase Morgan banks should use the following communication policy. The communication within employee should be communicated by team leaders as they will be able to address any inconveniences and panic that the employees might have. The management team should then communicate the changes to the investors and the community; in general, this is because the management will be able to describe the reason behind the said changes. Changes are necessary to be addressed in the right way and the right channel for the maximum benefits the whole of the company. 5 COMMUNICATING CHANGE WITHIN CHASE AND BANK OF AMERICA References Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. pearson. Sridhar, S., Germann, F., Kang, C., & Grewal, R. (2016). Relating Online, Regional, and National Advertising to Firm Value. Journal of Marketing. Strand, R. (2012). The Scandinavian Cooperative Advantage. Management, 17(1), 99-120. 1. (TCO All) For the next set of questions, you will first select ONE of the TCOs of the course. Then, you will be asked to write an essay about the project you worked on this term over your two companies' change program based on the TCO you selected above. Select the TCO your essay question will cover: TCO A - Given that progressive and successful companies require their employees to embrace change, examine how changing work conditions impact the employees. TCO B - Given the inherent reality that all organizations must experience change in order to improve, demonstrate how \"models\" are used in Change Management, for diagnosing an organization's need for change. TCO C - Given external, internal and/or multi-levels of organization factors that drive change, assess and create a leadership model which supports and promotes each type of change within the organization. TCO D - Given that an organization's mission and vision will determine its strategy towards change, ensure that an organization's change initiative is aligned with and capitalizes on its culture and mission in preparation for change. TCO E - Given a selected Change Management implementation \"model\