MGT603 Assessment 1 Part A: Systems Thinking Approach in Banking

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MGT603 Assessment 1 part A
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Systems Thinking Approach
There is an example of a bank which was pursuing the mission to be one of the biggest mortgage
lenders, there were implemented the hard performance targets which were based on the business
rather than the services. This resulted in the over-lending mortgages to the customers to the
organization. As the consequences of such a situation in the banking organization found itself in
the trouble.
It was found by the bank that the bank was losing the customers as well as its profits. A great
number of the customers were withdrawing themselves from the processes because such a
process was taking a long time whilst others were driving the demand higher through chasing the
progress updates which were not required. Such calls were as a consequence of the poor design
of the workflow as well as the inability of offering ad complete effectively as well as efficiently,
and those were mainly concentrated on how they could have managed in a better way manage
their abandonment rate of the calls (Mjema, 2018).
Such concentration led to the staff being targeted highly on the call duration, the thinking being
that if such staff would deal with such calls in a quick manner; this would decrease the
abandonment rate. This will lead to better customer services provided by the bank. Such kind of
thinking can be seen in different kind of companies and although abandonment rates do not have
any kind of direct correlation to the customer services and focusing on reducing such rate can
cause to doing the wrong thing. In such a case scenario, there was found that the morale of the
staff was tumbled as there was need of handling the frustrated customers continuously and they
were unable to give to them what they actually wanted. This, in turn, has led to high employee
turnover as well as the absenteeism. These were the consequences of such a connection issue
with the organization. Such kind of problems can be handled by adopting the system thinking
tools in the business. Such a problem can be overcome by using system thinking tools.
The system thinking tool will be helpful for such bank in order to understand their operations as
a system and to understand that how the workflow of such calls can be handled in an appropriate
manner through using the system thinking tool (Jagustović, et. al., 2019). With such kind of the
shift in the system thinking as well as the concentration on the new measures around delivering
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the customer’s requirements, the bank will be able to decrease the number of the days required to
move any mortgage from application to offer from the average of 47days o 5 days and the
application to complete fell from the average of 102 days to 27 days. Such system thinking tools
can prove to be useful in the development of a good system within an organization to handle its
operations and solve such kind of problems in the near future.
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References
 Jagustović, R., Zougmoré, R. B., Kessler, A., Ritsema, C. J., Keesstra, S., & Reynolds,
M. (2019). Contribution of systems thinking and complex adaptive system attributes to
sustainable food production: Example from a climate-smart village. Agricultural
Systems, 171, 65-75.
 Mjema, E. A. (2018). A System Thinking Approaching Maintenance, Production, and
Quality. Tanzania Journal of Engineering and Technology, 26(2).
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