Change Management in Ucg

HULT International Business School EMBA

Carlo Giorgis

HULT International Business School Executive MBA Change Management

UniCredit

The reorganization of the Group Internal Audit Department: analysis of organizational changes

Individual pre-assignment: Carlo Giorgis

Change Management

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HULT International Business School EMBA

Carlo Giorgis

EXECUTIVE SUMMARY

In 2005, following a merger and the appointment of a new Head of Department, the Internal Audit Department changed from a specialization on process of the audited local entities to a specialization on the activity performed. Despite the expected results in terms of structure and process were ultimately achieved, the change process caused large disruptions in the internal environment and required more time than planned. Reasons were mainly due to: o o the commanding leadership style and low credibility of the Head of Department; the strategy and implementation process, lacking of employees involvement and effective communication.

Change Management

2

HULT International Business School EMBA

Carlo Giorgis

Table of Contents

1 2 Introduction ......................................................................................................................................................4 Background .......................................................................................................................................................4 1.1 1.2 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 3 4 5 IAD organizational structure before the change (June 2005) ..................................................................4 IAD organizational structure after the change (January 2006) ................................................................5 Was the change process successful? ........................................................................................................5 Was there an (un)official leader?...