Business process analysis of a regional Australian bank's operations

Business processes are a significant element in the effective operation of any organization and the manner in which such processes are undertaken, implemented and managed in direct relation to the level of success of the organization. With the advancement in the business industry and the constant change in consumer preferences, there is the need for change management within an organization. In the same way and manner, business processes ought to be scrutinized and appraised to make certain that they consistently satisfy the needs of the organization and continue to be efficacious.

In this particular report, a United States regional bank will be the focus organization. Three banking business processes will be mapped using cross-functional and relationship diagrams.

The analysis will take into consideration the rigidity and interrelation that subsists between functions and phases of the process, ascertain blockages, consider process measurement and service blueprinting. Prevailing processes and services need to be acknowledged with an emphasis of pinpointing cohesions, redundancies and interdependencies. The ineptitudes and wastefulness need to be relocated, which will flush out cost and increase dexterity (Weiss, 2011).

The Organization

The organization selected for this report is a regional bank or financial lending institution that offers financial services to the general public in Australia. The financial services rendered by the organization include: retail banking, mortgaging, brokerage, and asset management. The main reason as to why this organization was selected is owing to its non-efficiency in its financial and human resource activities, its rigid dealings and also unclear organizational practices (Zensar, 2016).

Mission

The mission of the organization is to render the highest, safest and most convenient customer service and financial assistance to the community they serve.

Target Market

The targeted consumer market encompasses the surrounding population of the community within the region, which is roughly 400,000 individuals. In the contemporary, the bank renders financial services to about 230,000 consumers in a year, with a mixture of mortgage, asset management, brokerage and retail banking clients.

Strategy

To attain what is proclaimed in its mission statement, the company's strategy places emphasis on a number of key distinctive approaches:

1. Render quality, accessible, and reliable financial assistance

2. Augment financial services to the community we serve

3. Enhance sustainability and financial viability by generating profits

4. Attract, train, retain and develop quality and experienced employees

5. Engage and be socially responsible to the community

The strategic main concerns of the organization for the forthcoming three fiscal years include:

1. Comprehend and take into account the constantly changing financial needs and preferences of the consumers

2. Render accessible, reliable and quality financial services that are pertinent and fitting to the financial needs of the consumers

3. Guarantee a viable financial service in the future periods

4. Increase and develop the capacity and dimensions of the organization to be up-to-date with the changing financial settings and meet the conceivable future financial needs of the community within the region

Business Process Identification

In definition, a business process is a pool of tasks within the organization that are associated and which discover their cultivation in the delivery of a product or rendering of a service to a consumer. This encompasses the inputs and outputs and its main goal is to generate an outcome that is sought after. These set of tasks, which comprise a business process, once concluded, will bring about an organizational objective. Business process analysis facilitates the comprehension of a business process (Huoy et al., 2010).

Relationship and Cross-functional Maps

1. Customer Acquisition and Relationship

Customer acquisition to the bank can take place or come about through the rendering of different financial services. Consumers can be acquired to the retail services department through the need for a savings account, a fixed deposit account, a credit card, and also an own demand draft for the individual financial needs. This consumer acquisition and relationship is a clerical responsibility largely undertaken by customer service representatives. Nonetheless, the retail service clerks and tellers have an impact on the process.

2. Lending

Lending for the financial institution has cross-functional and cross-relationship processes. It encompasses a mixture of secured lending and unsecured lending. With regard to secured lending, the consumer pledges his or her assets against the loan amount being granted. On the other hand, with respect to unsecured lending, the consumer does not have to pledge any assets. Whereas the financial institution undertakes lending for both key processes, for the purpose of this report, lending will focus on mortgage lending for consumers.

3. Recruitment of the Financial Staff

Different from the recruitment of general members of staff such as marketers, sales representatives and other laborers, which would form a support process, the recruitment of financial service personnel is a key procedure in rendering core financial services. This is owing to the fact that being a financial institution, the financial services cannot be rendered by employees who lack fundamental knowledge in financial matters.

Relationship Maps

The following diagrams in this section will encompass the business processes of different business functions and operations within the bank, which will be outlined in the form of relationship maps.

Savings Account Team

Customer Service

Customer Presentation

Fixed Deposit Account Team

Retail Service Section

Credit Card Team

Demand Draft

Figure 1: Retail Service Department presentation relationship map

Chief Operating Officer Approves Recruitment

Interview Panel

Unit Manager

Payroll

Human

Resources

Advertising Agency

Applicants

Appointee

Referees

Candidates

Finance

Figure 2: Financial Staff Recruitment relationship map

Credit Department

Loan Approver

Client Request for Mortgage Loan

Loan Manager

Finance

Figure 3: Mortgage Lending Relationship Map

Cross-Functional Maps

The following diagrams in this section will encompass the business processes of different business functions and operations within the bank, which will be outlined in the form of cross-functional maps.

Client Financially Assisted

Client

Client Presentation

Customer Service

Client Information and financial need

Retail Service Section

Retail financial need assessment

Teller

Demand Draft

Fills Form

Deposit/Withdrawal

Savings Account Team

Fixed Deposit Account Team

Credit Card Team

Provide Credit Card and Details

Figure 4: Retail Service Department presentation cross-functional map

Approve salary budget

Recruitment need identified

Chief Operating Officer

Establish recruitment request

Offer chosen candidate

Shortlist applicants

Job requirements generated

Unit Manager

Hire Appointee

Prepare job advert

Schedule Interviews

Screen Applicants

Recruitment request logged

Human

Resources

Advertise position

Advertising Agency

Interview candidates and shortlist

Interview Panel

Submit Application

Applicants

Candidates

Conduct Referee Checks

Referees

Appointee Accepts

Appointee

Establish employee file

Payroll

Process Invoice

Adjust budget if needed

Finance

Figure 5: Financial Staff Recruitment cross-functional map

Client granted mortgage

Client fills form

Client requests for mortgage

Client

Gives pre-approval

Checks documents

Loan Approver

Loan Manager

Gives approval

Checks documents

Approves funding

Credit Department

Funds granted

Finance

Figure 6: Mortgage Lending Cross-Functional Map

Analysis

1 Savings Account Team

Customer Service

Customer Presentation

1

2 3 Fixed Deposit Account Team

2 1

Retail Service Section

Credit Card Team

1

Demand Draft

1

1. Disconnect

2. Interface

Discussion

In the assessment of the retail service business process at the regional bank, there are threats and drawbacks that, if not taken into consideration, can have an adversarial outcome for the organization. This encompasses having a disparaging impact on ethics, productivity and performance of the bank. The main faults taken into account in the business process include financial accountability and examination at the difference phases of the process. In particular, the key aspect that ought to be addressed and restructured encompasses the four final different phases of the retail service, which are not scrutinized and held culpable for their activities and undertakings. It is deemed that a restructuring to instigate a better and more effective design for the business process is considered necessary (Biazzo, 2000).

Conclusion

Business processes are a noteworthy component in the efficacious operation of any organization and the manner in which such processes are undertaken, implemented and managed in direct relation to the level of success of the organization. The key difficulties within the management of the business process at the regional bank fundamentally originate from the poor structural basis of the organization. It also emanates from the extensive lack of accountability within the different phases of the process. Substantial enhancement ought to be undertaken to increase the level of efficiency, advance better prospects for financial outcomes, increase the quality level of services rendered and ensure consumer satisfaction in overall. The implication of this is that there is a need for reformation and streamlining of the retail service business processes. Therefore, structures that institute accountability ought to be put into place and ensure communication of the positive and negative reports of each of the stages throughout the process. In particular, the bank ought to institute performance measurement practices with the main objective of gaining insight as to the manner in which the process is carried ought right from the beginning up until the end (Weiss, 2011).