Designing change in complex systems - Part 1: analysis and synthesis

A while back, I identified a problematic workflow at my job - essentially, there was a breakdown in the communication loop, and information wasn't being relayed back to our customers. I could clearly see where the breakdown was happening so with my manager's permission I approached the team responsible and asked them to fix it. Simple, right? I can almost see you facepalming. I'm facepalming too, don't worry.

What Past Masha didn't know back then was that implementing change in the workplace has a pretty low success rate - about 30-40%, according to global management consulting firm, McKinsey, and Gartner, a research and advisory firm. And because Past Masha was unaware of these damning statistics, she didn't even think about researching how to best carry out the brilliant plan she thought she had.

Fast forward to the first semester of my Masters program in Design Research where I was handed a case study exactly on this very subject. It placed me in the role of a human-centered designer leading EnergyBank - a prototype ethical banking initiative focused on sustainable energy micro-financing.

As a Lead Designer I was responsible for relocating my team from Melbourne to Mirboo North, a small Victorian farming town. EnergyBank is a subsidiary of EZN Bank, which was implicated in the 2017 Royal Commission into banking misconduct and is now attempting to rebuild trust through this rural proof-of-concept.

The challenge involved managing reluctant staff facing relocation, establishing presence in a community with zero trust in banks, navigating hostile media scrutiny, and developing ethical micro-loans for environmentally-friendly community initiatives. Key complications included staff retention issues, establishing a co-working space in a skeptical town, and balancing the competing interests of the parent bank, innovation branch, and local community. Here is the link to the full case if you're interested in reading all the details.

Image: a systems map of the bank case study.

In this series of posts, I'll guide you through how I resolved this case following the assessment instructions. We were provided with three assessments to complete the case. The first was the analysis and synthesis, to analyse opportunities, obstacles, resistances, and constraints, to research the sector represented in the case, and to select and configure the design team from the personas listed in the case study file.

The second was to design the implementation model of how I propose to orchestrate meaningful change. It was advised that the model should lean towards innovations in the process and new ways to manage change from a human-centred design perspective.

And the third was an evaluation and impact report - we needed to reflect on the implementation model and consider how to build a human-centred, sustainable and/or innovative evaluation process, including what is evaluated; as well as the impact of the work.

Part 1: analysis and synthesis

I'll dive right in here - I divided this section into three parts: the background and context, the analysis and ideation, and the team configuration. It was important for me to explore the background of the sector first as well as the town that the team was moving to before I was able to identify and opportunities and obstacles.

Background and context

Rural towns

Research into Australian rural towns yielded a difficult landscape: these towns face significant economic challenges, with persistent income inequality when compared to urban cities: as of 2012, the median gross household income in capital cities was 1.37x higher than in rural areas (National Rural Health Alliance, 2014). Rural communities struggle with fewer employment opportunities, higher costs for goods and services, and reduced access to essential services such as healthcare and education.

Mirboo North

Mirboo North, where I was moving my team to, is a historical town established in 1877 and is roughly a two hour drive from Melbourne. Dairy farming was and is still the principal industry, and they also diversified into olericulture (vegetable farming), manufacturing and retail. I found that the community (current population ±1600) is deeply proud of their town, with multiple families tracing their roots back to the original town settlers. They have a large number of community organisations and volunteer groups, which all contribute to opportunities to participate and make a difference at a local level.

Sustainable finance frameworks

Sustainable finance frameworks can help reduce rural-urban disparities by directing private investment towards climate-resilient rural economies, emphasising environmental, social, and governance (ESG) factors in investment decisions for sustainable growth (European Commission, 2025). In rural Australia, blockchain and distributed ledger technologies may enhance transparency and efficiency in climate finance, although equitable governance is essential for fair distribution of benefits (Schulz & Feist, 2021; Chan, 2024).

Analysis

After establishing the foundation of my case within the background and context of the surrounding ecosystem, I proceeded to the analysis phase.

Opportunities

1. Community trust (re)building. Trust in major Australian banks has plummeted to an all-time low following scandals that led to the establishment of a Royal Commission in December 2017, aimed at investigating systemic misconduct in the banking industry.

2. Co-working space. In 2023, the closure of 400 bank branches in Australia highlights the opportunity for co-working spaces to foster community hubs that encourage face-to-face interactions, essential for genuine empathy, as emphasised by philosopher Emmanuel Levinas.

3. Ethical micro loans and blockchain tech. EZN Bank emphasises ethical micro-financing as a key pillar, with Bendigo Bank recognised as the "Most Trusted Bank" by Australian farmers in 2024 after investing $40.3 million back into communities. Additionally, blockchain technology may enhance climate action by enabling transparent transactions and efficient monitoring, thereby increasing trust in climate initiatives.

Obstacle

1. Team relocation. The team faces a challenging relocation, going from the busy urban environment of Melbourne, to a small rural town a 2 hour drive away. Some team members outright quit, but others are willing to weather the change but raise concerns such as farm life, education opportunities, and distance from family. Working conditions, salaries, and incentivised relocation will need to be considered.

Resistances

1. Community hostility and scepticism. Rural communities have deep mistrust of banks, with Mirboo North described as a "hostile town" in this specific context. The case of a young farmer losing his organic dairy farm due to an unscrupulous EZN Bank loan manager has heightened scepticism.

2. Media scrutiny. After the young farmer case, media attention has increased. EZN Bank must closely comply with new laws established from the Royal Commission.

Constraints

1. Timeline pressure. There is pressure to establish the co-working space quickly due to an invited journalist.

2. Skills gap and regulatory framework. The team's urban finance experience differs from rural and community banking requirements. New regulations require rural loans to be managed by experienced rural bankers.

3. Balancing stakeholders. Balancing the expectations of C-levels, Energy Bank, the rural community, and the team presents challenges.

Initial ideas and directions

When I started the early research, I kept in mind that this particular Master's program focuses on innovation. This mean that while I was searching out for established and effective methods, I was already thinking about how to innovate on them. I will further explore these methods in Part 2: designing the implementation model, but the following are my initial suggestions and action items.

Community trust building framework

Targets: Co-working space opportunity, community hostility resistance, team relocation obstacle.

It is imperative to develop a plan for rebuilding trust with the community. Early strategy includes further research into placemaking theory as a way bridge the gap between the team and the town while utilising the co-working space as much as possible. Another idea to explore is co-evaluation - instead of studying the town and its reaction to the bank initiative as subjects, how can I involve them in the evaluation process as participants?

Team change management plan

Targets: Team relocation obstacle, Balancing stakeholders constraint, Skills gap constraint

I researched tried and true change management plans and the most common one to pop up was Kotter's Eight Stage Process. I found a study where it was effectively implemented in a financial institution, which made it relevant for this Bank case. However, I strongly believe that the plan is missing one stage - empathy - and I will explore this further in Part 2.

Community focused micro finance implementation

Targets: Ethical micro-finance opportunity, balancing stakeholders constraint, trust rebuilding opportunity.

Although the initial two ideas emphasise the community and the team, the bank's interests must also be considered. The bank aims to pilot ethical micro-loans and sustainable investments, and the success of both the team and the project relies on this initiative. Some potential ideas include:

1. Conducting financial and digital literacy programs with the community - addressing the 45% of financially illiterate Australian adults (Dobrescu and Motta, 2024, para. 2) and declining Digital Ability scores among vulnerable groups (Australian Digital Inclusion Index, 2024). This will allow the community to make informed choices for their micro-loans, and give them ease-of-use in today's digital first financial climate.

2. Fund local sustainable initiatives following examples like Yackandandah's renewable energy project (Smith, 2022).

3. Reinvest eventual profits to address community concerns from the 2016 Gippsland survey:

   - High rates of adult obesity - 8.4% unemployment - 25.5% youth disengagement - Insufficient healthy food establishments

Team configuration

While I won't dive deep into which members I chose for my team as it will involve too much retelling of the case, I will explain what skills and qualities I need in my team based on both the background and analysis of this case study.

1. Community engagement: This skill is crucial as it enables the team to build strong relationships with stakeholders and ensure that the project aligns with the needs and values of the community it serves.

2. Financial expertise: Having financial expertise on the team is essential to effectively manage budgets, forecast financial outcomes, and secure funding necessary for the project's sustainability and growth.

3. Familiarity with start-up culture: Understanding start-up culture is important as it fosters an environment of innovation and agility, allowing the team to adapt quickly to changing circumstances and seize new opportunities.

4. Political and diplomacy skills: These skills are relevant because they help navigate complex relationships and negotiations with various stakeholders, ensuring that the project receives the necessary support and endorsement from influential parties.

5. Digital product and blockchain expertise: Knowledge in digital products and blockchain is vital for leveraging technology effectively, as it can enhance the project's efficiency and transparency in operations.

6. Sustainability, ethics, and climate knowledge: This expertise is increasingly important as it guides the team in making responsible decisions that align with environmental goals and promote social responsibility.

7. Skills in documentation: Proficient documentation skills are necessary to maintain clear records of processes and decisions, which supports accountability and facilitates communication among team members and stakeholders.

Conclusion

At this point, I have established the foundation for the next two sections: the implementation model and the evaluation framework. In Part 2, I will delve into each of the ideas I have mentioned and develop them further to tailor each one specifically for this case. And don't worry, I haven't forgotten about Past Masha and her foray into implementing change in the workplace - I will also explain how Current Masha was able to realise her mistake through this research module.

Bibliography

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2. Australian Digital Inclusion Index (2024) Key findings and next steps. Available at: https://www.digitalinclusionindex.org.au/key-findings-and-next-steps

3. Chan, G. (2024) 'Rural Australia believes in self-sufficiency, so let's set the terms of the renewable energy boom', The Guardian, 12 February. Available at: https://www.theguardian.com/australia-news/2024/feb/12/rural-australia-believes-in-selfsufficiency-so-lets-set-the-terms-of-the-renewable-energy-boom

4. Clean Energy Council and Farmers for Climate Action (2025) Billions in the bush: Renewable energy for regional prosperity. Clean Energy Council and Farmers for Climate Action, Australia.

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7. European Commission (2025) Overview of sustainable finance. Available at: https://finance.ec.europa.eu/sustainable-finance/overview-sustainable-finance_en

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