Loren Domingo-Tangco
BUS-470 Applied Business Project
Sladan Sinanovic
May 31, 2020
Problem Statement
The bank has faced a high increase in cross-selling scandal cases, which has profoundly damaged its reputation. The mission and the value of the bank were to satisfy the customer's needs and help them succeed financially. Contrarily, a close look at the scandal and reasons for its existence went far away from the bank key goal.
Problem Statement Worksheet
Organizational problem
Organizational Ethics
The most affected stakeholder by the problem
The problem is most likely to affect the company staff, shareholders as well as customers. The Cross-selling scandal means fewer earnings for the shareholder, who are the critical beneficiaries of the profits attained through daily transactions (Tayan, 2019). The money lost at the course of the scandal will significantly reduce regular earnings. Customers of the bank are also other victims of the problem; the bank staff uses unethical means to exploit money from customers when unable to meet their daily targets.
The employees of the company were also affected by the problem; those found guilty of opening new accounts without customer permission were laid off their duties. Opening of unauthorized customer accounts was fueled by high targets, which were set by the management (Klemash et al. 2019).
Type of the problem
The problem is based on self-interests, knowledge, and skills among the staff and poor organizational structure (Klemash et al. 2019). The action of the bank staff to exploit money from the customers to attain their daily targets is entirely unethical.
Suspect causes
Among the critical causes of the problem are the splitting of customer deposits, overbearing sales culture, employees’ misconducts, excessive pressure of employees by the top management, and Illicit practices (Tayan, 2019).
Improvement goal and the long-term impact
The main goal is to identify a solution to the five leading causes of the scandal, which will help prevent the company staff from participating in any unethical practice that is not in line with its goals.
Impacts to the stakeholders
The cross-selling scandal has caused significant loss of finances to both customers and company shareholders.
Customers were able to lose significant amounts of money, which was withdrawn from their accounts without their consent.
Solution
proposal
The company should consider making the roles of different executive directors clear. Having a clear and distinct role will help in holding individual staff accountable. Caution employees from doing any form of the transaction without customers' permission.
Those found guilty of exploiting customers for self-interests should be laid off their duties and prosecuted in a court of law.
Final problem statement
The cross-selling cases which go against organizational ethics have highly increased among the bank employees. The targets set by the management are putting employees under pressure to perfo.
Loren Domingo-TangcoBUS-470 Applied Business ProjectSladan Sin.docx
1. Loren Domingo-Tangco
BUS-470 Applied Business Project
Sladan Sinanovic
May 31, 2020
Problem Statement
The bank has faced a high increase in cross-selling scandal
cases, which has profoundly damaged its reputation. The
mission and the value of the bank were to satisfy the customer's
needs and help them succeed financially. Contrarily, a close
look at the scandal and reasons for its existence went far away
from the bank key goal.
Problem Statement Worksheet
Organizational problem
Organizational Ethics
The most affected stakeholder by the problem
The problem is most likely to affect the company staff,
shareholders as well as customers. The Cross-selling scandal
means fewer earnings for the shareholder, who are the critical
beneficiaries of the profits attained through daily transactions
(Tayan, 2019). The money lost at the course of the scandal will
significantly reduce regular earnings. Customers of the bank are
also other victims of the problem; the bank staff uses unethical
means to exploit money from customers when unable to meet
their daily targets.
The employees of the company were also affected by the
problem; those found guilty of opening new accounts without
customer permission were laid off their duties. Opening of
unauthorized customer accounts was fueled by high targets,
which were set by the management (Klemash et al. 2019).
Type of the problem
The problem is based on self-interests, knowledge, and skills
among the staff and poor organizational structure (Klemash et
al. 2019). The action of the bank staff to exploit money from
the customers to attain their daily targets is entirely unethical.
2. Suspect causes
Among the critical causes of the problem are the splitting of
customer deposits, overbearing sales culture, employees’
misconducts, excessive pressure of employees by the top
management, and Illicit practices (Tayan, 2019).
Improvement goal and the long-term impact
The main goal is to identify a solution to the five leading causes
of the scandal, which will help prevent the company staff from
participating in any unethical practice that is not in line with its
goals.
Impacts to the stakeholders
The cross-selling scandal has caused significant loss of finances
to both customers and company shareholders.
Customers were able to lose significant amounts of money,
which was withdrawn from their accounts without their consent.
Solution
proposal
The company should consider making the roles of different
executive directors clear. Having a clear and distinct role will
help in holding individual staff accountable. Caution employees
from doing any form of the transaction without customers'
permission.
Those found guilty of exploiting customers for self-interests
should be laid off their duties and prosecuted in a court of law.
Final problem statement
The cross-selling cases which go against organizational ethics
3. have highly increased among the bank employees. The targets
set by the management are putting employees under pressure to
perform. Pressure cause employees to involve these acts to meet
the set goals.
References
Tayan, B. (2019). The Wells Fargo cross-selling scandal. Rock
Center for Corporate Governance at Stanford University Closer
Look Series: Topics, Issues, and Controversies in Corporate
Governance No. CGRP-62 Version, 2, 17-1.
Klamath Stephen, Jennifer Lee, and Jamie Smith. 2019. Human
Capital: Key Findings from a Survey of Public Company
Directors Retrieved from https://corpgov.law.harvard.edu/
Understanding Stakeholders
What is a stakeholder? According to Cambridge Dictionary “A
stakeholder can be an employee, customer, or citizen who is
involved with an organization, society, etc. and therefore has
responsibilities towards it and an interest in its success.”
While this definition appears generally broad, the stakeholders
involved with an implementation can be numerous. This section
reviews different types of stakeholders, introduces tools for
both stakeholder identification and analysis towards both
4. priorities and stakeholder support.
There are two different types of stakeholders, internal and
external. Internal stakeholders are those involved day to day in
the program. These are individuals associated with the actual
project or specific problem. External stakeholders are those
outside of the organization who are influenced or impacted by
the project or issue. There may also be external stakeholders
that may be part of the project depending on the issue.
There are many different stakeholders and it is important to
understand the interest and influence of each. The first step is to
brainstorm and identify all the potential stakeholders. Figure 1
is an example of a stakeholder diagram depicting the target
audience call center quality issue. The second ring of circles
represents the individuals or organizations that have a direct
connection with the interests of the primary stakeholder
impacted by the initiative. The other rings around the secondary
group are tertiary stakeholders who have a direct connection
with the interest of the secondary stakeholders in support of the
primary stakeholders.
The key purpose of this brainstorming tool is to ensure that you
have not missed a stakeholder group. First you must revisit the
problem statement to ensure that you have the focus of the
issue. Below the example problem statement is an example of
brainstorming for internal and external stakeholders.
Problem: Many call center representatives are not achieving
5. quality standards, thereby contributing to the overall low-
quality rating (92%) for the call center. Through data and
process evaluation, it was determined that the training time for
call center representatives is 30% less than other similar call
centers, which may contribute to lack of skills training. In
addition, the online tools available to the call center
representatives are not updated frequently with procedural
changes and do not contain all required information necessary
for representatives to perform their job. The low quality over
the past 6 months has resulted in a 2% decrease in customers
and a $550,000 loss in annual revenue. Decreased employee
satisfaction in the call center due to the issue has contributed to
a 5% increase in voluntary attrition, which costs the business
$80,000 annually. There is an opportunity to improve quality
and reduce both customer and employee attrition by addressing
the skills training and resource issue in the call center.
Figure 1
Once the stakeholder individuals or organizations are identified,
they require analysis for interest and support. The other critical
aspects of this analysis are to understand what the stakeholder
is contributing and identification of an action plan. Reference
8. Stakeholder TemplateName of StakeholderDescription of
StakeholderRole of StakholderLevel of Knowledge in
ProgramAvailable Resources, Information, Influence, Money,
Staff, Technology, etc.Level of InterestLevel of SupportLevel
of InfluenceAction Plan for Stakeholder EngagementLevel of
interestLevel of SupportLevel of InfluenceExample: Call Center
ManagerLeader of the Call Center in PhoenixProject
SponsorHigh level of knowledgeFunding of project and internal
resources from call centerHighPositiveHighMaintain regular
communication with stakeholder on progress and
updates.LowNegativeLowModeratePositiveModerateHighHigh
