Commonwealth Bank of Australia: Performance Analysis Report

This report examines the Commonwealth Bank of Australia (CBA), focusing on organizational learning, financial performance, and strategic recommendations. It highlights the benefits of organizational learning, including increased productivity, profitability, and employee satisfaction. The report analyzes improvements to people, processes, and products, as well as the importance of corporate social responsibility. It identifies existing problems in the banking industry, such as profitability challenges, evolving customer expectations, and regulatory burdens. Recommendations are provided to address these issues, including strategies to increase income, improve cost efficiency, enhance customer experience through personalization and digital platforms, and adapt to regulatory changes. The report concludes by emphasizing the significance of stakeholder collaboration and technological advancements for CBA's continued success, particularly in enhancing customer services and compliance with financial regulations.

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THE COMMONWEALTH BANK OF AUSTRALIA
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3 Benefits of Organisational Learning
The benefits of organisational learning at Commonwealth Bank of Australia include the
following:
1. Productivity picks up
2. Expanded profitability
3. Expanded benefit
4. Diminished employee turnover, as worker fulfillment levels rise and dependability
and duty is expanded
5. Increasing current standards by making a non-stop change mentality, shared
proprietorship for ventures and shared responsibility for comes about.
3.1 Improvements to People
Individuals are a critical piece of the quality framework. They should be evaluated and
prepared on the most recent necessities of process and item quality as required by the
clients and market (Moradi-Motlagh, 2015). Individuals arrangement and improvement for
work productivity should be possible deliberately through assessing employees' aptitudes,
preparing to fill the recognised holes and engaging employees.
3.2 Improvements to Process
Process reviews and factual process control are two vital devices that specialists can use for
process observing. Reviews are great devices for checking a framework and catching up with
remedial activities in insufficient zones. The ISO 9000 quality administration review and the
ISO 22000 sustenance health reviews are advantageous apparatuses; in any case, these
reviews are expansive based and may not give the required profundity of examining for

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close process observing. A procedure review that spotlights on the real organisation process
and covers all territories of an organisation's operations is a superior analytic apparatus to
evaluate the soundness of the organisation's procedures (Schlagwein, 2014).
3.3 Improvements to Products
Checking item quality is imperative, particularly when the item is devoured. A vigorous
framework ought to have item assessment systems to address the accompanying
necessities:
1. The assessment is finished in view of client and universal benchmarks.
2. The client necessities are continually observed and item quality is refreshed in view
of criticism.
3. Customer grumblings and non-conformance are tended to in a deliberate way
utilising Six Sigma to distinguish main drivers and restorative activities.
The Commonwealth Bank of Australia ought to take part in modifying item details on a
nonstop premise in view of client and market prerequisites.
3.4 Improvements to Organisation Performance
There is dependably opportunity to get better, particularly in an organisation that needs to
remain unmistakable, reasonable and keep up its focused edge. Perceiving the present
qualities and capacities of the workforce is as basic as recognising their undiscovered
potential to accept administration positions, take part in group building exercises, practice

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activity and grow better relational abilities (Akhtaruzzaman, 2014). In show, these
components not just add to a more compelling and durable association yet may likewise
enhance workers' individual execution levels.
The initial phase in enhancing any association is setting up and upholding the idea that there
are not diverse arrangements of principles that oversee the exercises of administrators and
subordinates (Schlagwein, 2014). Administrators must be considered similarly as responsible
for their own particular slip-ups and deficiencies as any individual who works for them
keeping in mind the end goal to encourage a solid and honest work environment. It is
likewise basic to debilitate chatter, address gossipy titbits previously they heighten to
distrustfulness and remain touchy to input on what the organisation could be improving the
situation.
4.1 Corporate Social Responsibility
Corporate duty takes many structures at Commonwealth Bank of Australia as we
consistently hope to have a beneficial outcome through the bank's part in the public arena,
its kin and the way the group work together.
Guided by the bank's vision to exceed expectations at securing and improving the budgetary
prosperity of individuals, organisations and groups, the bank effectively considers the
natural, social and financial effects and impact of its business, and search for approaches to
utilise its remarkable abilities and assets to make a positive commitment past the centre
business (Moradi-Motlagh, 2015).
4.2 Existing Problems
The following problems exist in today’s banking industry:

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1. Not profiting. Regardless of the greater part of the features about saving money
benefit, banks and monetary establishments still are not making enough degree of
profitability, or the arrival on value that investors require.
2. Customer desires. Nowadays it is about the client encounter, and many banks are
feeling weight since they are not conveying the level of administration that buyers
are requesting.
3. Administrative weight. Administrative prerequisites proceed to increment, and
banks need to spend a vast piece of their optional spending plan on being agreeable,
and on building frameworks and procedures to stay aware of the heightening
necessities.
5.1. Recommendations
Based on the profitability, customer desires and administrative issues facing the banking
industry and the Commonwealth Bank of Australia, the following recommendations have
been made to overcome them;
1. To overcome the cyclical profitability due to existing low-interest rates, the bank
should increase the share of Commission's income and fees. Likewise, the bank should
expand its non-interest income assets (Coleman, 2017, p. 23).
2. Improve the cost efficiency. The bank should acknowledge the fact that customers are
shifting to the digital platforms. Therefore, the bank should apply this as a cost
efficiency strategy. For example, the bank should improve its multi-channel distribution
capacity, and rationalize its retail network (Smyth, 2016, p. 32). The bank ought to
invest in the IT infrastructure which would enhance product distribution and customer
base. The recommendation would lead cost efficiency in the long run.

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3. To meet customers’ desires and expectations, the banks should. First, provide more
personalization experience to the customers. Offering a one-on-one interaction
between the customers and their desired products will leave them satisfied. Second,
providing more options. Customers want self- service, social and digital platforms.
Third, maintain constant with the customers (Group of Thirty, 2015, p. 33). Fourth,
Listen to the customers and quickly respond to them. And, five offering and controlling
the front line services more efficiently. Generally, the bank should focus more on the
nature and manner in which the customers are being treated unless the bank want to
lose thousands of its customers.
4. The bank should adopt a flexible and complementary tools and regulatory approaches.
The approaches would allow laying of solid foundations to implement administrative
tools that are adaptable in different markets and jurisdictions. These tools would allow
addressing continuous changes in the bank’s system in the long term (Financial
Stability Board, 2014, p. 13). Giving more attention to the tools, would ensure that the
bank is in a better position to overcome the administrative challenges. Lastly, the
reduction of the frequent alteration of the administrative rules will lead to greater
regulatory and administrative certainties.
6.0. Conclusion
The success of any organization is based on how effective it relates to all of its
stakeholders. Each of the stakeholders has a vital role to play in the organizational
processes and procedures. Success or failure to collaborate the strategies determine
the profitability and effectiveness of the organization.
The Commonwealth Bank of Australia should take advantage of technological advancement
to get closer to the customers and other interested parties. Customers are looking for more

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personalized services which can only be achieved by investing in the IT platform. Conversely,
changing to flexible and complementary administrative approaches will ensure flexible
smooth transitional of processes and compliance with the financial system regulations
within a given jurisdiction.

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References List
Akhtaruzzaman, M., Shamsuddin, A. and Easton, S., 2014. Dynamic correlation analysis of
spill-over effects of interest rate risk and return on Australian and US financial firms. Journal
of International Financial Markets, Institutions and Money, 31, pp.378-396.
Moradi-Motlagh, A., Valadkhani, A. and Saleh, A.S., 2015. Rising efficiency and cost saving in
Australian banks: A bootstrap approach. Applied Economics Letters, 22(3), pp.189-194.
Schlagwein, D., Thorogood, A. and Willcocks, L.P., 2014. How Commonwealth Bank of
Australia Gained Benefits Using a Standards-Based, Multi-Provider Cloud Model. MIS
Quarterly Executive, 13(4).
Coleman, D., 2017. Four major banks face further parliamentary scrutiny, Sydney: TimeBase.
Financial Stability Board, 2014. Guidance on Supervisory Interaction with Financial
Institutions on Risk Culture: A Framework for Assessing Risk Culture, s.l.: s.n.
Group of Thirty, 2015. Banking conduct and culture: A call for sustained and comprehensive
reform, s.l.: s.n.
Smyth, J., 2016. Australia toughens up on errant bankers, Sydney: Financial Times.