facing? Customers were becoming increasingly sophisticated, and
demanded better service and better products.
The Bank Act in 1980 had caused the well-known established banks to face increasing competition from a growing number of financial institutions. No longer possible to differentiate themselves on the basis of Operational efficiency as the competition can match them. The protagonist is facing the problem of convincing the senior management to deploy CSI in his/her division as the management structure is decentralized and each Senior Vice-President had complete autonomy in his/her division. Convince the Position Review Department to include CSI as part of their report as they were not obligated to alter their evaluation system.
Is it really a Problem?
BWM report emphasized categories such as efficiency,
volumes, numbers of accounts, and Green Machine activity, but not the quality of service. This report made people go against the mission statement of the company which emphasized on customer being their biggest asset. It was getting difficult to differentiate themselves on the basis of operational efficiency and without shifting their attention towards quality of service being provided, it will be difficult to face competition. None of the existing methods of monitoring customer satisfaction was centralized and there was also no bench mark for each branch to compare themselves
Causes of the Problem
The decentralized management structure with each Senior
Vice-President having complete autonomy over his/her division makes it difficult to roll out CSI nationally. The Position Review Department is an independent department that is not obligated to implement CSI in their evaluation system. The employees and branches were evaluated on the basis of their productivity and not on the quality of service being provided to the customer. This conflict between efficiency vs. quality had put people in a conundrum. The existing customer satisfaction methods were very generic and did not attend specifically to the needs of the regional branch manager.
Solution to the Problem
Convince the senior management by showcasing the
results of the study conducted in 50 branches Highlight the observed positive correlation between service measurement and productivity measurement Highlight the fact that they are at a competitive advantage as no other competitor were conducting such studies As the new system would align with the companies mission statement, this can be used as a solid reason for The Position Review Department to include CSI as part of the evaluation system Finally, the system is centralized which will help in coordination and scheduling.