Systems Thinking Application: Reducing Customer Loss at ICICI Bank

This report addresses ICICI Bank's struggle with customer attrition by applying systems thinking. It proposes an incentive system for employees to attract new customers, highlighting the importance of aligning financial incentives with leadership and organizational culture. The report emphasizes that changes to payment arrangements must be coupled with broader organizational changes to be effective. It suggests leveraging effective leadership to drive culture and aligning performance management frameworks. The 'rich picture' tool is used to visualize the problem situation, demonstrating how the incentive plan aims to increase the bank's customer base and overall productivity by motivating employees and fostering a sense of partnership tied to the bank's financial success. The report concludes that systems thinking broadens the range of available solutions by encouraging diverse problem articulation and informed decision-making.

Running head: SYSTEMS THINKING
SYSTEMS THINKING
Name of the Student
Name of the Organization
Author Note

1SYSTEMS THINKING
Part A
Recently working in the ICICI bank of India, it has been noticed that the bank has been
struggling a lot with customer loss to all the competitors. There is a sudden need for the problem
to be overcome. System thinking is defined as an approach which is used for solving a number of
problems which are associated with the organization by properly viewing all the problems as
several system parts in total (Young & Leveson, 2013). The bank brought an idea of introducing
an incentive system for the employees of the bank so that the bank can be able to bring in new
customers. Having this aim in mind. The plan of incentive basically represents a significant step
and towards the appropriate direction. It is thought to be a way which will be effective for
motivating all the employees of the bank (Beuren, Ferreira & Miguel, 2013). All the employees
after receiving the incentive will definitely be able to operate more as business partners and will
be responsible for tying personal reward towards the bank’s financial success. Incentives which
are monetary are very much motivating and used for rewarding the employees for their
performance. Incentives are also used for rewarding the productivity of the employees by
providing extra money or bonuses. Hence, a program of providing incentive is basically a formal
scheme for promoting and encouraging a specific behavior by a particular group of people during
a time interval which will help in increasing the efficiency as well as the bank’s productivity.
These incentives includes all profit sharing plans, insurance of life or bonuses. It is to be
essentially noticed that any kind of change which is made to the arrangements of payments will
not be so much effective if they are not coupled with the changes accompanied to the broader
organization system. Alternative way is calling out the leadership central role. An effective
leadership is basically considered to be a key where the leaders drive the culture. Using the
financial incentives employees are motivated to a great extent and hence the productivity of the

2SYSTEMS THINKING
bank also increases a lot. The performance management and the management of frameworks
which are mainly cultural are the most effective one when they are aligned properly. Any kind of
misalignment may lead to a great confusion if the outcomes are inconsistent with respect to the
organization’s true intentions. Hence, these recommendations are holistic and are not simply
directed to the remuneration which is in isolation. The rich picture tool has been utilized in this
case for showing and describing the situation where the issue is actually lying (Cristancho et al.,
2015). A rich picture is basically a way of acknowledging and exploring any particular situation
and provides an expression with the help of diagrams in creating a mental model. The rich
picture describes how the plan of incentive has been used for increasing the number of customers
of the bank (Berg, 2014).
System thinking is seen to be responsible for increasing the choice range which are made
available for finding a particular solution of any particular problem within any organization. This
is done by broadening the people’s thoughts which will further help in problem articulation in
several ways. It always people for making a number of informed choices and also used for telling
stories which basically describes the system’s working. The system thinking tools are considered
to be as the effective vehicles used for describing, communicating and finding the system’s
understanding in specific groups.

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Rich picture

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References
Beuren, F. H., Ferreira, M. G. G., & Miguel, P. A. C. (2013). Product-service systems: a
literature review on integrated products and services. Journal of cleaner production, 47,
222-231.
Berg, T. (2014). Understanding iconography: a method to allow rich picture interpretation to
improve (Doctoral dissertation, Heriot-Watt University).
Cristancho, S., Bidinosti, S., Lingard, L., Novick, R., Ott, M., & Forbes, T. (2015). Seeing in
different ways: introducing “rich pictures” in the study of expert judgment. Qualitative
health research, 25(5), 713-725.
Young, W., & Leveson, N. (2013, December). Systems thinking for safety and security.
In Proceedings of the 29th Annual Computer Security Applications Conference (pp. 1-8).
ACM.