Western Australia Bank Call Center - Strategic Planning - Research Proposal Example

WA Bank Call Center A Strategy Proposal Report A. Review of Relevant Facts National Expansion Strategy Western Australia Bank or WA Bank best known today as Bank West serves more than 900,000 clients across its varied network of branches (Bank West Website) making it the market leader in the banking industry in Australia. Its client base further expanded after its acquisition by Commonwealth Bank in December 2008 (Bank West Website). The Australian Competition and Consumer Commission or ACCC did not oppose the acquisition of Bank West to help it continue its expansion and pricing strategies that would significantly maintain the competition in the banking and finance industry (ACCC). Prior to the acquisition, Bank West has been aggressively implementing its national expansion strategy in Australia. Competitive pricing, increase branch and affiliate networks, and enhancement in customer service tools particularly its call center were the priority areas that the bank were focusing as an effective aid in its national expansion strategy. It planned to open an additional 160 new branches all over Australia over a period of three to four years (Cox p1). However, the financial crisis that started in 2008 limited the funds that its mother company can provide to support Bank West’s national expansion strategy and risk its competitiveness in the market. Thus, the issue of continuity of its strategic plans as well its competitiveness became the driving force for its acquisition by the Commonwealth Bank. Currently, Bank West revolutionizes its customer service by adapting the motto of “happy banking” (Bank West Website) wherein customer service is hinge in providing convenience and value for the money of customers in transacting with the bank. This motto of customer service earned the bank numerous awards as well increase customer base (Bank West Website). Call Center Developments in information and communication technology or ICT led to the development of the call center industry. It brought to a new level the delivery process of customer service and marketing of products and services of businesses (Todd p.2). Call centers are made up of two types namely (1) in house call centers operating within a company and (2) an outsourced call centers that companies sub-contract (Todd p.2). Bank West has its own 24 hour telephone banking services or call center as an integral part of the systems it implemented to serve the needs of its clients its national expansion strategy program. Upgrade of its interactive voice recognition or IVR facility and development of a standard national call center model were two of the significant strategies adopted by the bank in order for its system to be at pace with its national expansion strategy (Cox p2-3). These improvements in its call center service model were meant to drive an increase in the client base of the bank. One of the key improvements implemented in the IVR facility was the use of a less formal voice that clients can easily understand. Its telephone menu for call center agents and clients were redesigned to be less formal using non technical banking terms (Cox p3) so as not to intimidate clients when they call the bank for queries or for any transactions. Lastly, it created a persona behind the voice of its IVR to let clients easily relate to the person behind the telephone. These innovations in its call center model were introduced prior to the financial crisis in 2008. Putting these innovations for strategic competition would mean higher lost for the bank in the end. Thus, the decision to allow the Commonwealth Bank to acquire Bank West was strategically inevitable to help maintain its competitive edge. However, the bank’s call center is faced with the challenge of “creating an environment where staff wants to come to work, do interesting interactions with clients and express their personality” (Cox p. 3). In short, it is faced with the challenge of maintaining a call center staff that can continuously carry out and support the happy banking motto of Bank West. B. Strategic Goals This proposal outlines a strategy to constantly improve the standard of working environment of the in-house call center of Bank West in order to meet the challenge identified by the head of its call center. Thus, the goal of this proposal is to develop a standard of positive working relations within the call center environment of the bank as well as equip its call center employees with the necessary skills and values to support the happy banking motto of Bank West. C. Policy Statements The following are the policy statements proposed for the bank management in order to carry out the strategic goals of this proposal. 1. The management supports training activities and the provision of cost effective benefits to the bank’s call center employees. 2. The management recognizes the vital role of the bank’s call center and its employees to the effective delivery of customer service leading to an improvement in the bank’s client base. 3. At the end of six months to a year, Bank West’s call center working relations improvement program has been fully instilled within the organization. D. SWOT Analysis Internal External Strengths Already laid out its national expansion strategy which puts its in house call integral to its success. Increase potential for market base with its affiliation with Commonwealth Bank, one of the biggest financial institution in Australia Focused on maintaining competitiveness in the market Presence of an efficient and experience head in the bank’s call center. Recognize contribution of its in house call center to improve customer service and increase customer outreach Opportunities Wide recognition of the presence of Bank West in key Australian states. Increasing presence of call centers in Australia signifying the readiness of customers to deal with call center agents. Continuous development in technology that contributes positively to the improvement of call center technology. Tax discounts provided by Australian government to companies setting up call centers (The Australia) Weaknesses High turnover of call center employees Presence of resistance to long working hours by call center employees as a result of the national expansion strategy program. Issue of cost inefficiencies in the operation of the call center. Alienation of call center employees to the overall organizational units of the bank. Threats Global financial crisis which tightens spending of the bank. Increasing call centers in Australia that creates an opportunity for call center employees to hop from one call center to another. Lower customer confidence due to acquisition of Bank West based on 2009 Canstar Bank Customer Satisfaction Award. E. Driving Forces for Change Driving Forces The presence of a committed manager in the call center of the bank as well as recognition of top management on the crucial role of the bank’s call center to its expansion strategy is a positive driving force to create and support changes to be introduced within the call center environment. Restraining Forces The in house call center of Bank West is struggling with a very high turn over rate of employees thereby affecting the work esteem of the rest of the employees manifested in resistance to long hours at work, for example. Such attitudes and work environment become restraining drivers to changes that the bank’s call center must undergo. Also the global financial crisis that is still being felt today forms part of the restraining forces for the bank to push through with its expansion plans with the call center an integral part of it. The cost to be incurred by these plans needs to be reconsidered. F. Strategic Plans Implement Behavioral Gap Analysis Conduct gap analysis of the current behaviors of call center employees compared to the behavior expected by management. Behaviors of employees should demonstrate emotional intelligence in relating with customers, their fellow employees and their supervisors. Thus, self management, self awareness, social awareness and social skills (Armstrong p. 128) are necessary behaviors displayed by call center employees. Expected Outcome: Determine the current behaviors of call center employees in their regular interaction with customers, fellow employees and supervisors. Recommendations: Review evaluations of customers to services provided by call center employees particularly their observations in the behavior of call center employees while interacting with them. Plot the summary of these evaluations to the behavior that the bank expected from its call center employees. Sub-contract a professional human behavior evaluator to evaluate the behaviors of call center employees while interacting with customers, with fellow employees and with their supervisors. Implement Competency Gap Analysis Assess the capacity of call center employees to effectively carry out their individual functions in the call center and to carry out the happy banking customer service motto of the bank. Improving the competency of employees is one of the core values necessary for a company to thrive in a competitive market (Harvard Management Update p.4). Expected Outcome: Assessment of the competency of call center employees vis-à-vis their job functions. Recommendations Coordinate with the human resource department to conduct a skill assessment survey of all employees of the call center. Assessment must focus on the comparison of employees’ performance in the last one year based on the results of their job evaluations and compare it to their job functions stated in their work contracts. Conduct a personal and focus interview with employees to determine competency problems or issues they currently face. Implement an Employee Assurance Program At this time of recession, the bank’s call center employees are worried whether they will lose their jobs or not; contributing to a sense of apprehensive environment within the workplace. Also, it partially contributes to incidence of employee turn over. Employees who felt uncertain with their position in the bank will start looking for jobs elsewhere given that Australia’s call center industry is started picking up (Australia Council of Trade Union) again. Once hired from other companies, employees will immediately leave Bank West. It is during times of recession that companies should strengthen their competitive advantage by holding on to their human resource (Navarro p. 7) that will become an advantage for its expansion once the recession is over. Further, employees relations are enhanced by improve and open communications (Armstrong p. 818) that settles any differences between management and employees. Expected Outcome Call center employees are assured of their job tenure. Recommendations The call center manager coordinate with bank executives to discuss the problem and arrange for an assurance meeting between executives and call center employees to assure them that there is no risk of losing their jobs during the recession and that the bank is resilient already given the recent acquisition by Commonwealth Bank. Distribute communication paraphernalia to call center employees across branches assuring them of their fears of lay off from the company. Memorandums from top management and assurance pamphlets should be distributed to call center employees across branches. Implement a Rewards Package or Incentives Program The bank has already put in place its financial benefits package. However, what is lacking is the non-financial rewards package such as recognition of good performance and work relations with fellow employees. A rewards system is a good strategy for human resource since it makes employees feel valued within the organization (Armstrong p. 128) thereby further motivating them to excel in their work performance. Expected Outcome: An established non-financial rewards package or incentive program Recommendations Develop an Outstanding Call Center Employees Awards Program for employees who garnered the most positive feedback from customers. Develop a Recognition of Positive Action Citation for employees who gave a delightful gestures or service to a customer who reported such gesture to management. This delightful service gestures from employees are one of the differences that Bank West can offer to customers that will help it “outperform its rivals” (Porter p.62) once it is established within the culture of the company. This is what makes the bank different in its competitive strategy. Establish a regular meetings of call center employees with their supervisors at least once a week to resolve issues or challenges they face with their daily activities. Implement a Work Shifting Schedule One of the weaknesses of the call center environment of the bank is the resistance of employees to long hours of work as a result of the national expansion program. A work shift schedule can resolve this issue so that each employee will only be required to report to work for an average of 8 hours and will not be forced to spend long hours at work. Expected Output Established 8 hour work shift schedule for employees duly coordinated and monitored by the human resource department. Recommendations Human resource department and call center supervisors plot a shifting schedule for all employees. Human resource department design a night differential compensation for call center employees that will serve on graveyard shifts. The shifting schedule should be rotated among employees every two weeks or every month. Design and Implement a Regular Employee Training Program The results of the gap analysis on call center employees’ behavior and competency will become the basis of the training program to be implemented by the human resource department for the call center employees of the bank. Expected Output A training program that continuously improve the behavior, competency and relationship of call center employees. Recommendations Include a regular team building activities for call center employees to provide time for mingling with each other, as a form of relaxation and resolves team building issues within the call center workplace. Design a call center employee customer service refresher course. Time Table of Activities Activities Month 1 2 3 4 5 6 Conduct behavioral gap analysis Conduct competency gap analysis Implement employee assurance program Design a rewards package or incentive program Implement outstanding call center employees awards program Implement a recognition of positive action citation for employees Implement regular meeting with employees and supervisors Design a work shifting schedule for employees Implement a work shifting schedule Design a regular employee training program Implement the first training for employees for every branch Works Cited Armstrong, Michael. A Handbook of Human Resource Management Practice (10th ed). Kogan Page Limited 2006 Australia Competition and Consumer Commission. ACCC not oppose to Commonwealth Bank of Australia’s proposed acquisition of Bank of Western Australia Ltd. 10 December 2008. Retrieved on 24 August 2009 from http://www.accc.gov.au/content/index.phtml/itemId/852913 Australia Council of Trade Unions. On The Line- The Future of Australia’s Call Centre Industry. 20 June 2002. Retrieved on 24 August 2009 from http://www.actu.asn.au/public/callcentral/ontheline.html Bank West Website. About Us: Our Profile. Retrieved on 23 August 2009 from http://www.bankwest.com.au/Media_Centre/Bankwest_Awards/index.aspx Bank West Website. About Us: History. Retrieved on 23 August 2009 from http://www.bankwest.com.au/About_Us/History/index.aspx CANSTAR Cannex. Bank Customer Satisfaction Awards. March 2009 Cox, Anne-Marie. Meet the voice behind BanWest’s Boom. Interactions Quarterly Perspectives, November/December 2007. Navarro, Peter. The Well-Timed Strategy: Managing the Business Cycle for Competitive Advantage. Wharton School Publishing 2006 Porter, Michael. What is a Strategy? Harvard Business Review. November/December 1996. Todd, Patricia. WA Bank Call Centre, 2006 Read More