UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ LE THI Y NHI INEFFECTIVE TASK ALLOCATION OF MORTGAGE BUSINESS SERVICE TEAM AT BANK H MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2020 TIEU LUAN MOI download : skknchat@gmail.com Ineffective task allocation of Mortgage Business Service team at Bank H 2 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ LE THI Y NHI INEFFECTIVE TASK ALLOCATION OF MORTGAGE BUSINESS SERVICE TEAM AT BANK H MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR. DOAN ANH TUAN Ho Chi Minh City – Year 2020 TIEU LUAN MOI download : skknchat@gmail.com Ineffective task allocation of Mortgage Business Service team at Bank H 3 INEFFECTIVE TASK ALLOCATION OF MORTGAGE BUSINESS SERVICE TEAM AT BANK H Executive summary. Objective and Scope. Process map of Mortgage Business Service.
Symptom 1: High overtime in MBS. Definition of overtime and impact of overtime. Diagnosis and analysis. Symptom 2: High time-consuming process in MBS.
Definition of time-consuming process and impact of time-consuming process. Diagnosis and analysis. Symptom 3: High number of document errors in MBS. Definition of document error and impact.
Diagnosis and analysis. Preliminary cause and effect tree. High job demand and job control in team MBS. Ineffective task allocation in team MBS.
Low staff capability of team MBS. Poor quality of applications in team MBS. Lack of clear objective for task completion. 39 TIEU LUAN MOI download : skknchat@gmail.com Ineffective task allocation of Mortgage Business Service team at Bank H 4 4.
No base on staff competency, personality, and motivation. Low flexibility and robustness. Alternative solution 1: Build Key Performance Indicators (KPIs) of Balanced Scorecard (BSC) by analytical hierarchy process (AHP) and Simple Multi-Attribute Rating Technique (SMART). Design a KPIs of BSC using AHP and SMART for MBS.
Benefit and cost. Alternative solution 2: Create competency dictionary for team members using Knowledge, Skill and Attribute (KSA) model. Design a competency dictionary for MBS. Benefit and cost.
Action plan for implementation. 84 TIEU LUAN MOI download : skknchat@gmail.com Ineffective task allocation of Mortgage Business Service team at Bank H 5 List of abbreviations and definition RBWM Retail Banking and Wealth Management – a global business serving Retail customers OPS Operations – a global function CLMBS Cards, Loans and Mortgage Business Service – target department MBS Mortgage Business Service – target team in CLMBS department SLA Service Letter Agreement – a commitment to complete service within a specific time SUT Standard Unit time – standard processing time for a specific task TAT Turnaround Time – actual total time from receiving a request until completion OT Overtime – working time after agreed time in contract ID card Identity card – personal information card QAS Quality at Source – the quality of application provided by Sales CIC Credit Information Center - government department to provide credit information of customer HUB H Universal Banking – core banking system AAPS Application Processing System – core lending system SFE Staff Front End – core banking system KPIs Key Person Indicators – is an evaluation criterion that demonstrates how effectively a company/team/person is achieving the objectives BSC Balance Scorecard TIEU LUAN MOI download : skknchat@gmail.com Ineffective task allocation of Mortgage Business Service team at Bank H 6 List of diagrams Diagram 1: Preliminary cause and effect tree (Source: Consolidated by author). 21 Diagram 2: Cause and effect tree (Source: Consolidated by author). 24 Diagram 3: Behavior mechanism.
31 Diagram 4: Official cause and effect tree (Source: Consolidated by author). 38 Diagram 5: Updated official cause and effect tree (Source: Consolidated by author). 39 Diagram 6: Final cause and effect tree (Source: Consolidated by author). 48 Diagram 7: The Balanced Scorecard Links Performance Measures (Adapted from research).
51 List of figures Figure 1: Organization Chart of Bank H (Sources: Internal data). 9 Figure 2: Organization Chart of CLMBS (Sources: Internal data as at 01Dec2019). 10 Figure 3: Organization Chart of MBS (Sources: Internal data as at 01Dec2019). 11 Figure 4: End to end process of home loan (Source: Internal procedure).
11 Figure 5: The dynamic interactions between the model sectors. 13 Figure 6: Total average OT and total volume of CLMBS separated by team from June to November 2014) Figure 7: Percentage of SLA failure in CLMBS separated by team from June to Dec 2019. 17 Figure 8: Percentage of application with errors in CLMBS separated by team from June to November 2019 (Source: Internal data). 20 Figure 9: Job description of MBS team members (Source: Internal data).
25 Figure 10: Job requirements of MBS team members (Source: Internal data). 30 List of tables Table 1: Total average OT and total volume of MBS from June to November 2019. 15 Table 2: Maximum capacity, SLA and actual time of MBS in 2019 (Source: Internal data). 17 Table 3: Total volume of MBS divided by tasks from June to November 2019 (Source: Internal data).
18 Table 4: Average volume of MBS per day divided by tasks from June to November 2019. 18 Table 5: Constructs of Capacity, Capability, and Performance in Relation to the Role of Contextual Factors Construct. 28 Table 6: Average SUT of team in CLMBS separated by teams from June to November 2019. 33 Table 7: Current tasks allocation of MBS separated by person in charge (Source: Internal data).
34 Table 8: Time conflict of tasks MBS separated by person in charge (Source: Internal data). 35 Table 9: Percentage of application with errors: return to sale in MBS from June to Nov 2019. 36 Table 10: Performance objectives of team MBS (Source: Internal data –appendix 8). 45 Table 11: Scale of relative importance (Adapted from research).
53 Table 12: Preference matrix. 56 Table 13: Normalized matrix. 57 Table 14: Estimated spending time for solution KPI of BSC (Prepared by author). 60 Table 15: Example of competency item rating (given by author).
68 Table 16:Training proficient ranking (Source: Internal data). 69 Table 17: Proficient level of using business systems and processes (Source: Internal data). 69 Table 18:Estimated spending time for competency dictionary (Prepared by author). 71 Table 19: Action plan for KPIs of BSC and competency dictionary (Prepared by author).
72 TIEU LUAN MOI download : skknchat@gmail.com Ineffective task allocation of Mortgage Business Service team at Bank H 7 Executive summary From the beginning of 2019, customer centricity and healthiest human system are some of the emerging focus of all levels in the H group and H Vietnam in specific. From 2020, adding two more strategies which are operational efficiency and cost management. To promote such strategies, everyone in bank H has to take actions to review, improve, and simplify processes, procedures, systems, etc.…in order to upgrade customer services and experience, and encourage better work- life balance for the workforces to have the healthier working conditions. Currently, in Mortgage Business Service (MBS) – a team in the department Cards, Loans, and Mortgage Business Service (CLMBS), the ineffective task allocation is a long-lasting problem that leading to high overtime (OT) and high time-consuming processes.
Therefore, this ineffectiveness is a big obstacle for implementing customer centricity, the healthiest human system, operational efficiency, and cost management in the short term and developing team in the long run. The mentioned above finding is located by several qualitative in-depth interviews with VP, manager, and employees of the CLMBS department. Combining with analysis from secondary data and related literature, this paper is to step by step diagnose the most concerning symptoms with its consequences, identify the real problems, then explore the potential causes and main causes. Applying theory-informed problem-solving in the organization to study and analyze the current task allocations, the nature of tasks, the competency, and motivation of each employee of MBS, the author aims to support the management of the CLMBS department to understand about the real problem clearly and objectively.
Subsequently, this paper can suggest the CLMBS department the alternative solutions and action plans to generate an effective task allocation to resolve the real causes, symptoms, and negative impacts on the department, team members, and customers. Then, they can evaluate and choose the best and most applicable solutions not only to serve customers in the best way by committing the services, improving processing time but also to equip the team members with methodologies and tools to arrange the workload more scientifically, maximize the capacity and minimize overtime. TIEU LUAN MOI download : skknchat@gmail.com Ineffective task allocation of Mortgage Business Service team at Bank H 8 1. Background H Banking group is one of the world’s largest banking and financial services organizations.
Group serves more than 40 million customers in 65 countries and territories with 238,000 employees around the world. Exceptional access to high-growth markets and a strong balance sheet are the advantage of the group. Based on that, the group builds the strategy to capitalize on long-term trends affecting the financial services industry. From June 2018, after a long period of transformation, the group is now to refocus on growth to increase customer numbers, take market share, and grow revenue and profits.
To do that, the group’s strategies are customers with customer-centricity and people development to fulfill the potential of online University, and care for staff with the Healthiest Human System program, increase the efficiency of operation, and cost management. H Viet Nam Bank (Bank H) is opened its first office in Saigon (now Ho Chi Minh City) in 1870. In August 1995, Bank H opened a full-service branch in Ho Chi Minh City. Now, Bank H has 14 branches in Ho Chi Minh City, Ha Noi, Da Nang, and Binh Duong and serves both retail and wholesale customers with all available financial services in the market.
Adhering with the group, bank H is focusing on customer centricity, healthiest human system, operational efficiency, and cost management to continuously improve and develop the bank. Bank H offers a lot of solutions for wholesale customers for import, export, and guarantees including working capital, growth, payment, investment, and managing risk. In term of retail banking, Bank H have offered several products including Visa and MasterCard credit card, debit card, accounts and deposits and lending products, insurance, and investing. With continuous effort, Bank H has achieved a lot of awards: best foreign bank in Viet Nam from 2006 to 2012, 2014 to 2019 by Finance Asia, a best retail bank in Viet Nam in 2016, 2017, and 2019 as per Banking and Finance Asia… 1.
Organization Chart Bank H follows the group structure to divide departments by Global Business and Global Functions. All global business and function units have to report to entity manager in country level and functional manager at regional, and global levels. In this paper, it is mentioned the entity manager reporting line in Viet Nam only. Figure 1 shows the organization chart by businesses and functions.
TIEU LUAN MOI download : skknchat@gmail.com Ineffective task allocation of Mortgage Business Service team at Bank H 9 Figure 1: Organization Chart of Bank H (Sources: Internal data) Each department has allocated in job scope to different positions. Below is specification in each department of organization: Retail Banking and Wealth Management (RBWM): serve retail customers including sale, and service via branches, transaction offices, tele sale, mobile sales, contact centers, marketing, products, underwriting service and collection. Wholesale Banking (WSB): serve wholesale customers including sale and service. Global Market (GM): perform liability trading transaction.
Global Trade and Receivable Finance (GTRF): provide import and export payment transactions for wholesale customers. Legal Consulting (LGA): provide legal consultation for all banking activities. TIEU LUAN MOI download : skknchat@gmail.com Ineffective task allocation of Mortgage Business Service team at Bank H 10 Regulatory Compliance (RC): provide regulatory compliance consultation for all banking activities, working directly with government.