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Challenges in Change Management in Central Banks

Author

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  • Radoica Luburić

    (Executive Director of the Central Bank of Montenegro)

Abstract

Someone said long time ago that everything is subject to change and that change is the only constant. If changes, as occurrences of long duration, are viewed through their temporal dimension, we will see that they are unstoppable. This is how it has always been and how it will always be. What is a novelty, however, is that changes have accelerated over the recent years and this trend could continue in the future. Scientists have been warning that this acceleration of changes should be taken very seriously because these are not some kind of sporadic and accompanying occurrences of limited effects and duration but ongoing and dynamic processes taking place in every sphere of social life to varying degrees. Successful change management, therefore, has been increasingly gaining importance and becoming the conditio sine qua non for a sustainable development of organisations and, therefore, of financial and banking institutions. Although I tried to focus on central banking here, it could be said that the key challenges in change management in central banks are much alike challenges that arise throughout the financial and banking system from which they are inseparable. Certain specific features that are characteristic of a central bank are primarily determined with the importance this supreme monetary authority has not only in the financial system of a country, but also in the entire society. The main task of a central bank is the preservation of price and financial stability, and indirectly and keeping in mind the global interconnections, even broader than that. Acceleration of changes in all spheres of social life calls for not only the need to question the traditional understanding of change management in central banks, but also to redesign and innovate the existing models thereof. If central banks change following the principles of quality management and if they successfully manage risks and become more committed, powerful and transparent in strengthened their role in the area of social responsibility, they will have the opportunity to go down the road of success, regardless of all temptations that will be waiting for them on this road.

Suggested Citation

  • Radoica Luburić, 2013. "Challenges in Change Management in Central Banks," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 2(2), pages 35-49.
    • Handle: RePEc:cbk:journl:v:2:y:2013:i:2:p:35-49
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    File URL: http://www.cbcg.me/repec/cbk/journl/vol2no2-3.pdf
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    References listed on IDEAS

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    2. Blanchard, Olivier, 2012. "Monetary Policy in the Wake of the Crisis," MIT Press Book Chapters, in: Blanchard, Olivier J. & Romer, David & Spence, Michael & Stiglitz, Joseph E. (ed.), In the Wake of the Crisis: Leading Economists Reassess Economic Policy, edition 1, volume 1, chapter 1, pages 7-13, The MIT Press.
    3. Blanchard, Olivier J. & Romer, David & Spence, Michael & Stiglitz, Joseph E. (ed.), 2012. "In the Wake of the Crisis: Leading Economists Reassess Economic Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 026201761x, December.
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    More about this item

    Keywords

    change management; systemic approach; process approach; total quality management; operational risk management; financial and banking system; central banks;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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