| Course | MGT 424 Leadership |
|---|---|
| Module | Module 7 |
| Paper type | Change leadership plan |
| Length | About 1,011 words, 6 pages |
| Format | APA 7 student paper |
| School | Aspen University |
| Program | Business Administration |
| Updated | October 2026 |
Free sample paper for MGT 424 Module 7
The Second Try: Leading a Community Bank's Mortgage Department Onto a Digital Loan System
Student Name
Business Administration Program, Aspen University
MGT 424: Leadership
Instructor Name
Month Day, Year
The Second Try: Leading a Community Bank's Mortgage Department Onto a Digital Loan System
Prairie Trust Bank, a composite community bank in Cedar Rapids, Iowa, has 14 branches and a mortgage department of 11 loan officers and 6 processors who originate about 900 home loans a year. Last year, the bank bought a digital loan origination system that lets applicants upload documents online, tracks each loan's status and checks files for missing items automatically. The system was installed in March with a memo from the chief lending officer and a half-day vendor training. A year later, only about 30% of loans are processed in it. Most officers still collect paper documents, email files to processors and track loans in their own spreadsheets. Meanwhile, two online lenders have entered the market with closing times of about 25 days, against Prairie Trust's average of 41. The chief lending officer has asked for a plan to try again.
Why the First Attempt Stalled
Kotter (1995) studied companies attempting major change and identified eight errors that commonly derail them: too little urgency, no strong group of allies steering the effort, no clear picture of the future, too little talk about that picture, obstacles left standing, failing to plan visible early successes, announcing success before the work is done and leaving new practices unconnected to the culture. The first rollout made most of them. The memo explained the system's features but not why the bank needed it. No respected loan officer championed it. Officers' performance was still measured only on loan volume, so time spent learning the system cost them money. And the project was declared complete when the software went live.
Building Readiness
Armenakis et al. (1993) argued that readiness, people's beliefs and intentions about a change, must be built before resistance appears. A readiness message has two parts: a discrepancy message showing that the current state falls short of what is needed, and an efficacy message showing that the people involved can make the change succeed. Leaders can deliver these messages through persuasive communication, through active participation that lets people learn by doing, and by managing external information, such as reports from outside sources that confirm the need. The first rollout delivered neither message.
Why Some Resist More
Oreg (2003) found that people differ in a stable disposition to resist change, with four parts: routine seeking, a preference for familiar routines; emotional reaction, stress when change is imposed; short-term focus, attention to immediate inconvenience over long-term benefits; and cognitive rigidity, reluctance to change one's mind. Interviews suggest that three senior officers, each with more than twenty years at the bank, score high on routine seeking and short-term focus. They are also the bank's top producers. Pressuring them would likely backfire; involving them could change the department.
The Plan
| Step | Action | Owner | By |
|---|---|---|---|
| Urgency | Show closing times against online lenders and three lost borrowers' stories | Chief lending officer | Month 1 |
| Guiding coalition | Form a team of two senior officers, two processors and the operations manager | Chief lending officer | Month 1 |
| Vision | Agree a goal: close in 28 days with fewer document requests to borrowers | Coalition | Month 2 |
| Communicate | Weekly five-minute updates in team meetings; one-page story of a loan closed fast | Coalition | Ongoing |
| Remove obstacles | Count system loans toward volume goals; add a processor as on-site helper for three months | Operations manager | Month 2 |
| Short-term wins | Pilot with four volunteer officers; publish their closing times | Coalition | Months 2-4 |
| Spread | Each pilot officer coaches one colleague | Pilot officers | Months 4-6 |
| Anchor | New standard: all loans start in the system; reviewed in performance evaluations | Chief lending officer | Month 7 |
What the Officers Said
Interviews with all eleven officers revealed reasons the memo never addressed. Several said the system added work at first, since they had to scan documents they used to hand to processors, and that no one had acknowledged the cost. Others said they did not know the bank was losing borrowers to online lenders, because no one had shared the numbers. Two newer officers liked the system and used it for every loan but felt awkward being the only ones. Processors said that loans started on paper and moved into the system halfway created the most errors. These comments support Armenakis and colleagues' point that readiness depends on understanding why change is needed and believing it can work.
Communicating the Need
The discrepancy message will be specific and local. In the first month, the chief lending officer will show the team closing times for the bank and its two online competitors and share the stories of three borrowers who withdrew applications last year, citing slow document requests. The efficacy message will come from the pilot officers' results, presented by the officers themselves rather than by managers.
Involving the Senior Officers
One senior officer has agreed to join the coalition after being asked to help fix the system's weaknesses, such as a slow document upload she found frustrating. Her participation delivers Armenakis and colleagues' efficacy message to colleagues more credibly than any trainer could, and it gives her the control that reduces emotional reaction.
Avoiding the Same Ending
Kotter warned that declaring victory too soon can undo a change. The coalition will not call the project complete when the pilot succeeds or when most loans start in the system. It will continue monthly reviews until the new standard has held for a full year, including the spring buying season, when volume peaks and old habits are most tempting.
Measures
The coalition will track the share of loans started in the system, along with average days to close, borrower satisfaction and the number of document requests per loan, reviewed monthly by the coalition.
Conclusion
The first attempt failed because it treated a change in how people work as a software installation. Kotter's errors explain the stall, Armenakis and colleagues' readiness model shows what employees needed to hear and Oreg's research explains why the most experienced officers resisted. A plan built on urgency, a respected coalition, visible wins and changed incentives gives the second attempt a better chance.
References
Armenakis, A. A., Harris, S. G., & Mossholder, K. W. (1993). Creating readiness for organizational change. Human Relations, 46(6), 681-703. https://doi.org/10.1177/001872679304600601
Kotter, J. P. (1995). Leading change: Why transformation efforts fail. Harvard Business Review, 73(2), 59-67.
Oreg, S. (2003). Resistance to change: Developing an individual differences measure. Journal of Applied Psychology, 88(4), 680-693. https://doi.org/10.1037/0021-9010.88.4.680
Reading the MGT 424 Module 7 assignment instructions
Leading change is a major topic in Aspen's MGT 424, and the module's assignment typically centers on mapping how one leader would carry a particular change through to adoption, resistance included. Let your classroom's Module 7 prompt settle the scope; the example plans one department's change. Describe the change and the current situation. If earlier attempts failed, explain why using research. Explain how leaders build readiness for change. Consider why individuals resist, including personal dispositions as well as situations. Lay out steps in order, with owners and dates, and explain what each step is meant to accomplish. Include short-term wins and plans to make the change last. End by naming the figures that will show whether people adopted the change and whether results improved.
How the MGT 424 Module 7 example is put together
The paper begins with Prairie Trust Bank's mortgage department, where 11 loan officers and 6 processors handle about 900 mortgages a year. A digital loan system was installed last year with a memo and a half-day training, and most officers kept using paper. Kotter's Harvard Business Review article lists errors such as failing to establish urgency, lacking a guiding coalition and declaring victory too soon. Armenakis, Harris and Mossholder's Human Relations article describes readiness as built on a discrepancy message and an efficacy message, delivered through persuasive communication, participation and outside information. Oreg's Journal of Applied Psychology article identifies routine seeking, emotional reaction, short-term focus and cognitive rigidity as sources of resistance. A table sets eight steps from a closing-time comparison to a new standard that all loans start in the system.
Reading the MGT 424 Module 7 grading rubric
Change leadership papers are judged on diagnosing the situation, applying change research accurately, addressing resistance with understanding rather than blame and presenting a realistic, staged plan. This example uses Kotter's errors to explain why the first attempt failed, so the second does not repeat them. Armenakis and colleagues' readiness model shapes how the need for change is communicated. Oreg's research explains why some officers resist more, leading to targeted support rather than pressure. The table assigns owners and dates. Measures track adoption and results, including closing times, and the coalition keeps reviewing through a full year.
MGT 424 Module 7 help: mistakes that cost marks
Change plans often list Kotter's steps without connecting them to the specific organization. Apply each step to real people, dates and actions. Another weakness is treating resistance as a character flaw; research shows people differ in disposition and that situations matter too. Explain both why change is needed and why people can succeed at it. Involve those affected in shaping the change. Plan short-term wins people can see. Avoid declaring success when the system is installed; success is when people use it and results improve. Finally, assign owners and dates, and measure adoption and outcomes. Interview the people affected before planning.
Write yours, or have the desk draft it
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MGT 424 Module 7 questions, answered
What does MGT 424 Module 7 usually ask for?
Aspen's MGT 424 covers leading change in this module, so planning how a leader would guide a specific change, including resistance, is typical. Check your classroom prompt.
What are Kotter's errors in leading change?
Kotter listed errors such as not establishing urgency, not forming a guiding coalition, lacking a vision, undercommunicating it, not removing obstacles, not creating short-term wins, declaring victory too soon and not anchoring changes in culture.
What is readiness for change?
Armenakis, Harris and Mossholder described it as people's beliefs that change is needed and that they and the organization can carry it out.
Where can I find a free MGT 424 Module 7 sample paper?
The example above plans a second attempt to move a community bank's mortgage department to a digital loan system, using research on change, readiness and resistance.
Why do some people resist change more than others?
Oreg found people differ in a disposition to resist change, made up of routine seeking, emotional reaction, short-term focus and cognitive rigidity.