Decreasing the Time it Takes for a Customer to have a Resolution from a Dispute on the Account.
Executive Summary
Synovus Bank is one of the Oldest organizations that was incorporated in the early 1880s. The Bank has expanded since inception and has diversified its business portfolio to investment, accepting deposits, selling securities and loans, mortgages, retail banking, to mention a few. The Bank has executed many financing decisions that involve mergers and acquisitions to increase its financial power and expand its market share. Due to the emergence of covid-19, the Bank has encountered challenges in conducting its internet banking activities. Instant change from cash transactions to debit and credit card transactions has caused traffic intensity to the system, leading to delays, fraud, errors, and cards’ misplacement.
The proposal uses problem analysis, for instance, SWOT analysis and Six-Box Diagnostic Model, to analyze the company’s disputes. The Baldrige Excellence Framework is used to develop recommendations that Synovus bank will implement to resolve the emerging issues. Finally, Kotter’s eight-step model is used to determine how the Synovus bank should effect change to meet customers’ demands and specifications.
Table of Contents
2.1 SWOT Analysis of Synovus Bank. 7
2.1.1 Strengths and Weaknesses. 7
2.1.2 Opportunities and Threats. 8
2.2. Six-Box Diagnostic model 9
2.3 Baldrige Recommendations. 12
2.3.4 Measurement, Analysis, and Knowledge Management. 13
3.0 Implementation Using Kotter’s Eight-Step Model 14
Decreasing the Time, it Takes for a Customer to have a Resolution from a Dispute on the Account
1.0 Introduction
Customer satisfaction is a fundamental aspect that determines business value and growth. Due to emerging intense competition in the banking sector, Synovus bank is striving to formulate strategies that will improve the quality of services rendered to customers. Enactment of appropriate policies and plans will result in increased market share, profitability, increase in the value of stock per share, reduction in service and waiting costs, and improving the goodwill of the company. Synovus bank tactic is to provide quality services to its clients with; sincerity, courtesy, effectiveness, and recruiting experienced experts who will confirm the needs of the customers. According Leninkumar (2017) concedes that maintaining satisfied customers is inexpensive than tapping new potential customers. Customer retention, loyalty and referrals are essential elements that organizations are striving to deliver (Leninkumar, 2017). Synovus Bank needs to implement plans and tactics that will ensure customer satisfaction.
The proposal strives to examine the arising issue of delays in Synovus bank as well as provide appropriate recommendations and resolutions to address the problems. Waiting costs in Synovus bank results to customer dissatisfaction. The long-term effect of the issue will result in the loss of loyal customers to a competitor. Bureaucratic systems and designed procedures for solving customers’ complaints are ineffective. Synovus bank has to evaluate its control system formulate appropriate sharing of information to its stakeholders, for instance, authorized signer of merchants and the customers. The proposal applies available investigative techniques of SWOT analysis and Weisbord’s Six-Box diagnostic model to analyze the delay disputes in customers’ Account. Appropriate use of the models will assist in determining the business feasibility internally and externally (Summers, 2017). They will also unravel the effectiveness of the policies and procedures integrated into the system to achieve risk reduction in terms of fraud and errors, reliance on the interconnected systems, and efficiency in cost reduction. Application of Baldrige performance excellent framework model will provide appropriate recommendations that need to be implemented to correct the delays experienced in service delivery to customers (program, 2019). Synovus bank needs to coordinate with the organization merchant’s authorized signer to minimize traffic intensity of Time spent while waiting for their disputes to be solved. The model will depict the best recommendations on how the parties will communicate to reduce waiting and increase service delivery to its customers. Finally, Kotter’s model will be applied to induce a change in Synovus bank to improve the utilization factor of delivering services to its customers.
1.1 Background Overview
Since the inception of Synovus bank formerly known as Columbus Bank & Trust in the 1880s, the institution has emphasized on customer satisfaction. Synovus Bank has ventured into retail banking, investment activities, provision of mortgage services to its customers, internet banking, many benefits to increase revenue as well as confirm customers’ needs and specifications (“History of Synovus financial Corp,” n.d.). The Bank has a caring team of experts that strives to align organizational goals with that of customers’ to increase its market portfolio. As a going concern principle depicts, Synovus bank has engaged in mergers and acquisitions to improve its financial ability and to compete favourably in the competitive market (“History of Synovus financial Corp,” n.d.). Businesses to strive to meet their short-term and long-term financial obligations to compete favourably as well as increase the profitability of an organization.
Due to the global emergence of world pandemic (Covid-19) in late 2019, it emerged that the contagious disease can be spread from person to person through touching the contaminated services. Stringent measures were formulated by a world health organization with the intention of minimizing the transmission of the virus. One of the restrictions was touching of the physical currency of notes and coins that acts as a catalyst in transmitting the virus. Also, most countries imposed a partial lockdown that led to the closure of schools and businesses globally. This policy resulted in most people using credit cards and debit cards in conducting business transactions. The instant change to credit and debit cards has caused much dissatisfaction to customers as their queries concerning the account disputes are not managed in-time. According to Synovus bank and merchant policies, a customer is not allowed to file a dispute with the Bank upon elapse of 60 days after receiving the bank statement. The authorized signer is the only permitted individual who should file the dispute with the Bank, not the cardholder if the stipulated period has not elapsed. Application of rigid structures in service delivery to customers exposes the weaknesses of the system as the primary cause of delayed services in the Bank.
Synovus bank disputes need to be unravelled and examined by experts to develop a proficient implementation plan that influences change in the organization. Some of the core issues that prohibit effective service delivery include complicated filing of customer acknowledgement form for domestic disputes, signed disputes for international clients, execution of refunds that takes five days for signature-based customers and more than ten days for pin-based activities to credit their accounts. Cardholders have been disgruntled on how the relevant parties conduct the whole process. Synovus bank has to integrate an efficient communication system that facilitates the effective transmission of information between the relevant stakeholders to enhance service delivery. Application of feasible models will unravel the short-comings of the existing designs in Synovus bank and facilitate in developing practical recommendations and implementation strategies.
2.0 Diagnosis
Synovus Bank operating system was evaluated using two techniques; SWOT analysis and Weisbord’s Six-Box models. The models assist an organization in designing the proficient successful plans, strategies and policies that enable an organization to realize its vision while adhering to its mission and corporate social responsibility regulations. The models are applied to various organization departments determine whether the actual results of organization projects, services and quality of products is achieved according to customer demands. Also, the model depicts the appropriate measures that should be executed when installing the internal control systems that eradicate fraud, developing of accounting systems that facilitate electronic funds transfer, and instant feedback between relevant stakeholders when a dispute arises. Findings of the organizational Analysis are discussed as follows;
2.1 SWOT Analysis of Synovus Bank
SWOT analysis model assists an organization in identifying its strengths, weaknesses, opportunities, and threats that the business is encountering (Gurel, 2017). The model has been used to determine the internal and external challenges that the Synovus bank organization is facing (See Appendix A). Internal business environment depicts the internal issues that result in financial loss and reduction of the business. In contrast, the external business environment shows the external opportunities and threats the company is facing.
2.1.1 Strengths and Weaknesses
The internal business environment shows the ability of the business to meet its financial obligations to realize its vision (Gurel, 2017). Internal strengths of a business organization include its ability to enjoy economies of scale, professional experts, financial power to control its costs, ability to install the appropriate technology that facilitates reliable and effective communication among its stakeholders, and capability to install an effective system that allows effective transmission of information among its clients. The strengths of the business determine its ability to penetrate new markets and diversify its products to reduce business risk. Proper investment strategies in an organization help the company to acquire adequate resources that will be used to create services and products that are desired by the customers (Lemieux, 2017). Synovus bank engages in retail banking, investment of properties that are leased to customers, mortgages that it offers to its employees and customers who are interested in the facilities. The wide range of the products enables the firm to increase its profitable activities and spreads its risk to a wide range of products and market.
Although there are numerous strengths of the business, the organization also has internal weaknesses that inhibit service delivery in the organization. First, the organization has weaknesses in risk assessment, designed control procedures, and the general control environment of the organization (Doxey, 2019). Synovus Bank is encountering internal challenges that have resulted in fraud and error in the fees charged on the transaction costs by the Bank. The irregularity committed by the employees results in a financial loss to its esteemed customers (Lentner et al., 2019). Misrepresentation of financial transactions appropriately results in the forgery of the recommended transaction cost rate. Effective policies should be implemented to punish managers who override the accounting system in an organization as well as those who fail to implement the control procedures that minimize the risk of fraud in the organization.
2.1.2 Opportunities and Threats
Opportunities are external factors that are in favour of a business. They do the business to thrive in an external environment despite intense competition (Lemieux, 2017). Synovus bank should utilize the opportunity increased demand debit card transactions to increase its market share in the market. The organization can use its financial power to invest in research and development to increase the market of its products. Threats are external factors that the business has no control. These factors negatively affect the company in terms of market share, business reputation, and profitability. Due to the increased use of electronic financial transactions, the Synovus bank has experienced delays in processing debit card transactions. These long delays that take more than two days to execute a refund to cardholders’ credit account demotivate customers in an organization.
2.2. Six-Box Diagnostic model
In addition to SWOT analysis, the Six-Box model is also used in the Analysis of Synovus bank issues. The six-box model depicts areas that require frequent improvement to meet the customers’ demands (Hemmelgarn & Glisson, 2018). The model is subdivided into the following subsections;
2.2.1 Purpose – involves conceding the rationale for business existence. It answers many questions regarding organization mission towards realizing its vision. Organizational goals and objectives should align with customer specification and wants (Hemmelgarn & Glisson, 2018). Besides, organization staff should understand their job description and work towards achieving its goals. Synovus bank has not addressed the queuing problem whereby customers have to wait for 60 days to file a dispute with the Bank when a dispute arises. There is inadequate communication between the merchant’s authorized signer and the Bank. This gap creates customer dissatisfaction in the organization.
2.2.2 Structure
Organization structure determines the system of governance and the process of decision making (Hemmelgarn & Glisson, 2018). An appropriate method of design and understanding of the organization purpose results in improved performance. Each employee participates in decision making and feels part of the organization. In Synovus bank, there is inadequate communication structure as the organization faces fraudulent financial suppression as some accounting transactions are inflated to increase profit or whistled by corrupt managers. This acts questions the integrity and independence of the employees of the company. Unusual transactions in the organization remain unrecognized as customers’ funds are falsified by inappropriate accounting system in Synovus bank.
2.2.3 Relationship
Organization relationship is also a key element that determines the effectiveness of operational functions in an organization (Hemmelgarn & Glisson, 2018). There should be an appropriate relationship between departments, employees, and all relevant stakeholders to fulfil organizational needs. Synovus Bank has encroached with inadequate transaction systems that expose fraudulent activities in the organization. Also, there is inappropriate decision support systems and expert systems that can detect irregularity in the organization. Ineffective relationship results in inadequate detection risk assessment in the company.
2.2.4 Rewards
This approach advocates the recognition of excelling employees in the organization (Hassan & Arshad, 2019). Employees are motivated to deliver depending on the working environment and the management attitude towards them. Adequate remuneration and rewards will motivate employees in Synovus bank to verify customer identification, provide an audit trail of cardholders to detect irregularity, daily reconciliation of ATMs to ensure the effectiveness of the operation. The control risk in Synovus bank is high as fraudulent transactions are executed without being detected with external auditors.
2.2.5 Leadership
They are the essential people in an organization as they determine organizational direction and goal (Hemmelgarn & Glisson, 2018). Leaders coordinate the other parts of the model to deliver results to the organization as they design corporate strategic plans, risk management, performance appraisal, and creating value to the organization. They establish communication channels that facilitate sufficient information system flow within an organization of formal structures. Also, they focus on the broad participation of relevant stakeholders in delivering high consistency decisions that enable the organization to achieve its results. Finally, they improve the professionalism and competence of employees as they encourage the training of employees.
2.2.6 Helpful Mechanism
These are tools used to influence the success of the organization (Hassan & Arshad, 2019). They include organization strategies, installed internal operational systems, use of modern technology, for instance, artificial intelligence systems, automated teller machines, oracle systems, and feasible organizational policies that improve organizational performance.
Summary Issues
Synovus Bank has many issues that have restrained service delivery in the organization. The Bank has not designed measures to help disgruntled clients who have lost their credit and debit cards, excess charges executed inform of transaction cost, delays to receive approved refunds by the merchants to customers, bureaucratic procedures involved in filing disputes, 60 days to file a dispute, inadequate authorized signers to assist in delivering services, and weak systems that allows execution of fraud.
Problem Statement
Due to abrupt emergence of covid-19, instant change to use of debit and credit cards has caused traffic intensity in Synovus bank. This has resulted to some fraudulent staff engaging in irregularities. Debit cardholders have failed to receive services as their cards will not be replaced and issued in Time. Approved credit refunds by the merchant to the Synovus bank takes a minimum of two days to reflect in the customers’ Account. Cardholders are restrained from filing the dispute as only the authorized signer holders are required to file it. The issues can be resolved using Baldrige-Excellence framework as discussed below.
2.3 Baldrige Recommendations
The model helps business organization to determine its future direction by analyzing the present situation (National Institute of Standards and Technology, 2019). Organizations can analyze each department against the model to recommend the appropriate strategies to achieve organizational goal (See Appendix B). The model can be used interchangeably with SWOT analysis and six-box diagnosis model to derive feasible recommendation that will resolve problems in Synovus bank.
2.3.1 Leadership
As the Six- box model acknowledges leadership, Baldrige model requires professional leaders who strive to combine other factors to achieve organization goals. They develop plans and strategies that are in alignment with organizational goals. Besides, they also initiate the installation of the appropriate system that eradicates irregularity in an organization. Synovus bank leadership needs to install modern internet banking systems that enable customers’ disputes solved immediately. The leaders should also install effective internal control systems that shows any form of fraud executed by any management staff.
2.3.2 Strategy
The model under strategy examines how business organizations design their plans, tactics and policies to achieve its vision and mission (National Institute of Standards and Technology, 2019). Using the strategy model, organizational leaders can improve business performance by integrating feasible objectives that can be able to be completed. Synovus Bank is required to enact policies that will expose fraud in an audit trail of internal and external auditors. Also, the Bank should emphasize integrating a feasible system that can process customer transactions within a short time. Customer feedback should be given priority in an organization. Customers’ disputes should be handled appropriately to facilitate efficient service delivery and minimize delays.
2.3.3 Customer Focus
The model emphasizes on developing policies that conform to customer needs (National Institute of Standards and Technology, 2019). Public perception of the company determines market diversification and share in the competitive business environment. There should be a good relationship between the Bank and its customers to enhance retention, loyalty, and referral. Synovus bank should design strategies that will resolve customers dispute within minutes. Bureaucratic steps in filing disputes should be eradicated to improve fast service delivery in the organization.
2.3.4 Measurement, Analysis, and Knowledge Management
The model focus on measuring actual results against the set standards in the organization. Deviations are corrected as the company executes new plans that will improve service delivery. Synovus bank should measure its results against its set target to ascertain its performance. The model will help the Bank eradicate delays and frauds that exist due to weak systems.
2.3.5 Workforce
The model advocates recognition of employees in the organization. Employees can be motivated by introducing employee of the month of every department. This award will encourage employees to excel in their respective department, thus improving the quality of the organization. Synovus bank should recognize its employees to increase their satisfaction and become loyal to the organization.
2.3.6 Operations
It focusses on improving service delivery to increase efficiency and effectiveness of the use of organizational resources (National Institute of Standards and Technology, 2019). Synovus bank should install efficient systems that can detect risk and fraud when it arises in the organization. Appropriate methods will reduce Time taken for customers to file disputes.
3.0 Implementation Using Kotter’s Eight-Step Model
The eight-step model impacts change to the recommendations provided by the six-box diagnostic model and Baldrige recommendation model (See Appendix C). First, there is an urgent need to address the arising issues in Synovus bank. Customer delays reduce the service rate to customers. The organization should install an internal control system that is effective and gives immediate feedback to any irregularity. Second, the organization is required to outsource its system development functions to experienced firms to resolve system flaws. Untrustworthy employees in the organization should be forced to resign and pave the way to the independent and honest employees.
Third, everyone in the organization should understand the vision of the company to effect change (Bejinariu, 2017). Change is very vital in Synovus bank. The management should enact new policies that enable those who have misplaced the cards to receive service using alternative means. They should develop supplement methods of payment in case the cardholder loses the card. Fourth, everybody in the organization must understand the organization vision. The vision is what drives the employees to be committed to achieving organizational goals. Fifth, as the organization develops new changes, those opposing the changes should be forced to resign (Bejinariu, 2017). Individuals who are executing fraud in the organization should be forced to resign. Sixth, the Bank should create short-term plans and tactics that are in alignment with the organizational strategies. The short term plans feasibility indicates the appropriateness of the organization long term plans. Seventh, the organization should focus on building on the accepted change. Members should integrate the official change as part of the organization norms and culture. Eighth, the change should be incorporated into the organizational culture to ensure everyone is conversant with the strategies.
4.0 Evaluation
After implanting the proposed changes, various evaluation techniques will be used to ascertain the effectiveness of the new policies and strategies. Both qualitative and quantitative study will be conducted to detect any variance that necessitates correction. Plans that are ineffective are scrapped off as new methods are developed. The organization should administer an open-ended questionnaire to the customers to give feedback on the recent changes. Also, a quantitative analysis will be conducted on actual results against expected results to correct any variances.
5.0 Results and Summary
The proposal strives to propose efficient and effective decisions that can enable Synovus Bank to manage its disputes with its customers. There were rigid policies that inhibited business growth that required to be eradicated to develop new approaches that are in alignment with customer demands. Organizational change is a matter of urgency in Synovus bank as there are reported cases of fraud and error in the accounting system. Also, the management should not override the internal control systems that can detect risk in the company. Various models have been used to detect the organization problems, how the issues can be resolved in implementing the newly developed strategies that are effecting change.
6.0 References
Bejinariu, A. C., Jitarel, A., Sarca, I., & Mocan, A. (2017). Organizational Change Management–Concepts Definitions and Approaches Inventory. In Management Challenges in a Network Economy: Proceedings of the MakeLearn and TIIM International Conference.
Doxey, C. H. (2019). Internal controls toolkit. John Wiley & Sons.
GÜREL, E. (2017). Swot analysis: A theoretical review. Journal of International Social Research, 10(51), 994-1006. https://doi.org/10.17719/jisr.2017.1832
Hassan, N. H., & Arshad, N. I. (2019). Proposing construct for organizational agility model in Malaysian automotive organization. 2019 6th International Conference on Research and Innovation in Information Systems (ICRIIS). https://doi.org/10.1109/icriis48246.2019.9073673
Hemmelgarn, A. L., & Glisson, C. (2018). The role of mental models in organizational change. Oxford Scholarship Online. https://doi.org/10.1093/oso/9780190455286.003.0008
History of Synovus financial Corp. – FundingUniverse. (n.d.). Search Thousands of Company Profiles – FundingUniverse. https://www.fundinguniverse.com/company-histories/synovus-financial-corp-history/
Lemieux, V. L. (2017). A typology of blockchain recordkeeping solutions and some reflections on their implications for the future of archival preservation. 2017 IEEE International Conference on Big Data (Big Data). https://doi.org/10.1109/bigdata.2017.8258180
Leninkumar, V. (2017). The relationship between customer satisfaction and customer trust on customer loyalty. International Journal of Academic Research in Business and Social Sciences, 7(4). https://doi.org/10.6007/ijarbss/v7-i4/2821
Lentner, C., Vasa, L., Kolozsi, P. P., & Zéman, Z. (2019). New dimensions of internal controls in banking after the GFC. Economic Annals-ХХI, 176(3-4), 38-48. https://doi.org/10.21003/ea.v176-04
National Institute of Standards and Technology (2019). 2019-2020 Baldrige excellence framework: Proven leadership and management practices for high performance
Program, B. P. (2019). 2019-2020 Baldrige excellence framework (Education): Proven leadership and management practices for high performance.
Summers, D. C. (2017). Quality. Pearson.
7.0 Appendix A
SWOT Analysis
The model depicts internal strengths and weaknesses, and external opportunities and Threats
Strengths weaknesses
Qualified employees weak internal control
Goodwill fraud and error
Financial power system delays
Opportunities Threats
Wide market shares intense competition
Product diversification customer dissatisfaction
Cost leadership partial lockdown of the economy
8.0 Appendix B
2019 Baldrige Performance Excellence Framework
National Institute of Standards and Technology (2019). 2019–2020 Baldrige excellence framework: Proven leadership and management practices for high performance. Gaithersburg, MD: U.S. Department of Commerce, National Institute of Standards and Technology.
9.0 Appendix C
Kotter’s Eight-Step Change Model
(Source: Adapted from Kotter 1996)