XYZ Bank Customer Retention Strategies: A Systems Thinking Approach

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SYSTEMS THINKING

Contents
Rich Picture.....................................................................................................................................3
Root Definition Report using CATWOE........................................................................................3
Recommendations for the bank to resolve the issue........................................................................6
References........................................................................................................................................7

Rich Picture
Root Definition Report using CATWOE
As this has been evaluated from the assessment 1 that XYZ bank has suffered from the issue that
they are losing their customers as well as the profits. Thus in this assessment the rich picture has
been designed so that the bank can able to recognize that why they are facing such issue and how
they can resolve it (Brauner & et.al. (2018)). This root definition report is going to define about
the entire issue along with its solution using the CATWOE Analysis. At the end the report will
be wind up by recommending two suggestions in order to resolve the problem.

CATWOE
This is the problem-solving checklist, which is used to resolve the business problems. This is the
checklist which provides the ethical framework for the approach of problem solving. This
analysis mainly done on the process of any organisation or on any system. This analysis is done
to reach out the best solution for the issue as the business problems are very complex to solve.
They can’t be resolve if the organisation sees only two-three components. To resolve this the
firm has to know that what is going in the root of that problem and have to recognise all the
components through CATWOE. This analysis will provide the firm to think about the solution in
various ways (Berg, (2015)). After doing the CATWOE analysis the firm will going to have the
better appreciation and understanding for the issue. Thus the analysis is begin and the six
components define to resolve the issue are outlined below -
1. C - Here C stands for the client and in this designed rich picture the clients are the
customers of the bank. As this is known that the customers are the key assets of the
company so they are the most crucial part of any organisation as without them, the firm is
nothing. In this issue the customers are leaving the bank because they are facing issues
with the banks. The customers are not getting the services of the bank properly. The bank
is providing the bad customer services and also there is no security provided to their
money (Wang & et.al. (2015)). This issue can be resolved if the bank start providing and
responding the customers in proper manner and the staff must treat the customers nicely.
The customers affect the bank in the huge manner as if there were no customers then the
profitability of the bank will going to decrease.
2. A - Here A stands for the actors, and these are the members who are involved in the
situation or process of bank. There are many actors in this situation such as customers,
bank, Loan, bank staff, bank clerk, mutual fund, and ATM. The customers are leaving
bank as they are facing some issues with the employee of the bank. The bank staff is not
treating the customers properly and there are very few staff members so this is very
difficult to handle the huge number of customers at one time and this takes too long to
stand in a queue for the chance. Thus this is not up to the expectation of the customers.
The mutual fund is not rising by the customers as they are providing very Low ROI. Loan

cannot be taken as the rate of interest is very high. The clerk of the bank is not making
the transactions properly and doing the work of fraud. The customer cannot withdrawal
the cash even from the bank ATM as sometimes the ATM is not accepting the card (Julie
Bawden-Davis, 2019). Thus there are too much problems arises and from all these the
reaction of the actors is that some are leaving the bank and some are facing the issue of
profit.
3. T - Here T stands for the transformation process which shows that what the bank will
input and what the output the customers and bank will get. The input is from the bank
side as they have improved their services and make sure about the expectations of the
customers fulfilled in proper manner. Thus by this the customers will get the output by
attaining the best outcomes from the bank in the form of good services and security to
their things.
4. W - Here W is stands for worldview, where the bank has to see their problem as in the
form of world view or in the big picture. They have to imagine that if this problem arise
for the entire world then what will they do and how they can resolve his. The issue must
be define by them that the problem is bigger and can be long lasting or the issue is not so
serious can be resolve in very short time (Pham, V. 2014). The bank must not make the
mountain of the problem that the issue become so bigger and also they don’t have to
underestimate their customer by taking the issue in a simple way.
5. O - Here, O stands for the Owner which is the part of the problem and the most important
one to resolve this matter. In this situation the owner is the bank, this is the one who can
help to resolve the problem by making changes in their bank organisation and by guiding
the staff about how to treat their customers.
6. E - Here, E is stands for the environmental Constraints, in this the constraints arises are
the rules and regulations of the bank along with their culture. The privacy laws are also
defined in this by the bank as they have to keep the thing of the customer in privacy. By
analysing the entire components the bank have to come with such a solution which can be
beneficial for both bank and customers.

Recommendations for the bank to resolve the issue
The two recommendations are suggested to the bank in order to improve their customer services
so that they can gain the satisfaction of the customers by which their profitability also increases.
Thus the following suggestions are recommended to the bank, and are mentioned below -
1. The bank can improve their customer services by empowering their employees, allow
their customers to have the self-service the bank can help their customers by becoming
their advisor not only the lender. This will come to an positive attitude towards your
client and this will satisfy them (Cisar & Habert, (2017)). The bank must create the
customer service culture so that they can get satisfy by the services provided to them and
also they must treat their customers in such a manner that they love the way you treat
them and prefer to ask you again if they are having any concern.
2. The bank must stay connected to their customers after the services provided to them.
They must ask them if any of the issue they are facing from and if any suggestion they
want from you. The bank must keep the interest rate on the moderate basis so that the
needs of both bank and customer get satisfy. The clerk of the bank must do the right
entries of the transactions done by the individual so that the customer must have the
records of all their transactions done by them.
Thus, all these suggestions will help the XYZ bank to resolve their issue faced by them and they
must take the help of CATWOE analysis done above in the report to resolve and find the better
solution of the problem.

References
Pham, V. 2014, Rich Pictures and CATWOE: Simple yet Powerful Scope-Modelling Techniques
| Elabor8. Elabor8. Retrieved 31 July 2019, from https://elabor8.com.au/rich-pictures-
and-catwoe-simple-yet-powerful-scope-modelling-techniques/
Julie Bawden-Davis. 2019, 7 Excellent Ways to Attract New Customers: Business Trends and
Insights. Retrieved 31 July 2019, from
https://www.americanexpress.com/en-us/business/trends-and-insights/articles/7-
excellent-ways-to-attract-new-customers/
Wang, W., Liu, W., & Mingers, J. (2015). A systemic method for organisational stakeholder
identification and analysis using Soft Systems Methodology (SSM). European Journal of
Operational Research, 246(2), 562-574.
Berg, T. (2015). Rich picture: The role of the facilitator. Systemic Practice and Action
Research, 28(1), 67-77.
Brauner, P., Ziefle, M., Schroeder, U., Leonhardt, T., Bergner, N., & Ziegler, B. (2018, May).
Gender influences on school students' mental models of computer science: a quantitative
rich picture analysis with sixth graders. In Proceedings of the 4th Conference on Gender
& IT (pp. 113-122). ACM.
Cisar, S., & Habert, G. (2017). Comparative Rich-Picture-Diagram for Assessment of Building
Sustainability Labels. In World Sustainable Built Environment Conference 2017.