Commonwealth Bank Australia: Management Issues, Analysis and Solutions

This report examines the management challenges faced by the Commonwealth Bank of Australia, particularly concerning the loss of customer data and the resulting impact on the bank's brand image. The analysis identifies weaknesses in employee training, database security, and data backup systems as contributing factors. The report proposes several steps to address these issues, including improved risk management, data encryption, and disaster planning. Furthermore, it suggests implementing McKinsey's 7S framework to enhance various aspects of the organization, such as strategy, structure, systems, shared values, style, staff, and skills, to prevent future data breaches and improve overall organizational effectiveness. The goal is to strengthen data security, improve customer trust, and enhance the bank's reputation in the competitive market.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
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Executive Summary
The report has helped in the analysis of the management issues which was faced by
Commonwealth bank in Australia. Furthermore, the different issues have been highlighted
along with managing the issues with proper implementation of different management change
theories which helped in reducing the issues related to loss of customer data. The different
steps have been followed which helped in reducing the issues in an effective manner.

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Table of Contents
Introduction................................................................................................................................3
Overview of Commonwealth Bank............................................................................................3
Analysis of the Issue in Commonwealth Bank..........................................................................3
Resolution of the Issues in Commonwealth Bank.....................................................................4
Steps to be Followed by Commonwealth Bank.....................................................................4
Implementation of Change Management Model in resolving Loss of Customer Complaints...5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
The report helps in the entire analysis of the management issues which is currently
being faced by the organizations in the entire competitive market. The company which has
been taken into consideration in the respective report is Commonwealth Bank and the
problem which is being faced by them is relating to the loss of the customer details and this is
one of the major management faults which is required to be resolved in an effective manner
as such issues do not crop in the near future.
Overview of Commonwealth Bank
Commonwealth Bank of Australia is one of the multinational banks of Australia
which has their business across different other countries such as Asia, United States and
United Kingdom. The bank tries to provide different kinds of financial services such as
business. Retail and other investment and broking services (Commbank.com.au, 2018). The
headquarters of the company is in Sydney, Australia and the number of locations include
more than 1100+ branches. The areas served the company is worldwide and the revenue
which have been earned by the company is more than A$26.005 billion and till 2017, the
number of employees working in the organization.
Analysis of the Issue in Commonwealth Bank
The main issue which have been found in the Commonwealth Bank is relating to the
loss of the different customer details which has affected the firm in a negative manner.
Furthermore, this has been seen that due to some fault of the employees in the organizations,
the important and essential information of the customers were lost and this affected the brand
image of the respective bank. The main reasons for losing the details regarding the customers
in the bank are as follows:

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Firstly, the management of the bank was not strong in nature as the employees were
not properly trained regarding the maintenance of the data of the customers of the
organization and this led to loss of the details of the customers as there was no such
planning of the bank (Bratton and Gold 2017)
Secondly, it was seen that the system or the database which has been maintained by
Commonwealth Bank was not strong enough and the data were not being saved by the
company as well which led to huge loss of data which were important in nature
Lastly, the respective bank did not use the online form of saving the database which
was a huge mistake committed by them and this was ineffective in nature
Resolution of the Issues in Commonwealth Bank
There are different issues related to the loss of the customer details in the market
which was faced by the Commonwealth Bank. However, these problems are required to be
handled by the company in an effective manner which will be helpful in reducing the issues
in a positive manner. The respective bank needs to take different steps in order to reduce the
different grievances of the customers along with prevent the loss of the important details of
the customers. The security breach can be resolved with the help of the different kinds of
management models which can be implemented by the company in
Steps to be Followed by Commonwealth Bank
Proper identification of the issues and list the different possible solutions and evaluate
the respective options with proper professional development
Furthermore, the prioritize the problems and focus on the problems or the mistakes
which can be controlled by the company along with implementation of full disk
protection which will help in securing the data breach of data

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Creating disaster plan which will assist in reducing the breach of the data as this will
modernize the data encryption procedure and this will help in reducing the data which
has been stole (Meyers and Van Woerkom 2014)
These are the different major steps which are required to be followed by
Commonwealth Bank in order to solve the different issues in an effective manner as this will
help in maintaining a strong customer client base. The main aim of the management is to
attain the different organizational goals in an efficient and effective manner through proper
planning, organizing and leading the organizational resources. This is essential in nature to
resolve the loss of customer details in the organization which will make the functions more
effective and the brand image of the organization will be improved as well.
Implementation of Change Management Model in resolving Loss of Customer
Complaints
With proper planning and organizing of the different tasks performed in the
organization, the professional development will be enhanced in an effective manner. The
McKinsey’s 7S model can be used by Commonwealth bank which will help in improving the
different strategies which will help in resolving the issue. The seven major aspects of the
company have to be analysed such as:
Strategy which can be used is security has to be made strong and this will lead to no
security breach as well (Piazza and Castellucci 2014).
Structure is the other option in which the company is required to be diversified which
will enhance the change management strategy effectively.
Systems is required to be enhanced by the company which will help in
Shared values are the other S which is not efficient, however the company needs to
diversify the tasks within the organization (Kipping and Üsdiken 2014)

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Style which is being used is not as effective as there has been security breach,
however with the help of improving the style such as inclusion of the system which
will help in storing the data such as with advancement of the technologies (Geisler
and Wickramasinghe 2015)
Staff are the main element in which diversity is required by providing them with
proper training in handling the different tasks in an effective manner (Serenko and
Dumay 2015).
Skills is the other technique in which this was seen that security safety skills are
required to be included which will improve the efficiency of the tasks performed by
them (Kolk and Rivera-Santos 2018).
With the help of the change management model, this can be ensured that
Commonwealth Bank needs to train the employees regarding the emails as these can be
suspicious in nature (Serenko and Bontis 2017). Furthermore, installation of the endpoint
protection software along with secure web gateway can help them in identifying and blocking
exploit kits before they infect the systems in an effective manner.
Conclusion
Therefore, this can be concluded that the Commonwealth Bank suffered from huge
issue which is relating to the breach of data. This has been seen that the loss of the customer
details hampered the brand image of the company and there were no such diversification and
planning among the employees in the organization. Furthermore, this has been seen that with
implementation of McKinsey’s 7s framework model, Commonwealth Bank tried to reduce
the breaching of the data and this helped them in managing the different kinds of issues
effectively by application of the 7S.

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References
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692.
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of Knowledge Management, 19(6), pp.1335-1355.
Commbank.com.au. 2018. Personal banking including accounts, credit cards and home loans
- CommBank. [online] Available at: https://www.commbank.com.au/ [Accessed 9 Aug.
2018].