Bank of America- Case Study

1154 WordsJan 23, 20085 Pages
Case Study Brief Introduction: The Bank of America was formed in 1998 after the merger of California based Bank of America and the Nations Bank of North Carolina. At the end of the 20th century the bank stood as the second largest bank in the American market with close to 4500 branches operating in 21 states. Most of these branches were located in high growth markets of the south and west coast. Globally, it employed 1, 40,000 employees across 190 nations, over $8 billon in revenues, $360 billion in deposits and some $600 billon in assets. However the markets had been consolidating for sometime with the total number of banks in America having reduced to 7000 from an figure of 14000 first recorded in 1985. Intense competition…show more content…
Could the team undertake this process? - Remuneration of associates had been to a large extent performance based which was then changed to fixed compensation. Resistance from other employees outside the I&D team had forced a retract. What was the right way forward? - Attitude in the company towards the I&D was generally that they received preferential treatment compared to their peers. Next Step The bank's leadership had offered additional branches as a reward to the team. This would lead to an increase in experimentation capacity by 40%-60%. With all the issues highlighted earlier the decision to adopt these branches was not an easy ask. The need for additional capacity was felt by some team members but others highlighted the demand for resources and attention that the step would command. The branches allocated now were underperformers and it was felt that failure there would not be considered as a setback and yet success could really propel the I&D concept into mainstream organizational philosophy. Adoption outside Atlanta was considered difficult with differences in culture and coordinating over distances being challenges. Multiple branches might confuse the customer and underperformance by the team on a large scale may affect funding in the future. Should the team take up these branches? The team had not faced a single big failure and some felt that maybe their learning could be

More about Bank of America- Case Study

Open Document