Submitted by: Submitted by clima001
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Words: 1314
Pages: 6
Category: Business and Industry
Date Submitted: 11/14/2015 08:05 AM
Affinity Plus
Constance F. Lima-Gonzalez
November 11, 2015
WMBA 6040
Problem statement; priorities and performance pressures
The root cause of the credit union’s problems based on a 5-Whys is the MOE system that it employs and the lack of preparation of handling the traffic that it generated. The system has worked well for the credit union. However, the many members that it has generated are too much for it to handle. The” MOE system is the leverage point here, altering it would take care of most of the issues the credit union is encountering” (Meadows, 2014). “The causal loop diagram of the credit union is a reinforcing feedback loop” (Gharajedaghi, 2011). The more it uses the MOE system in its current state, the more of the ensuing consequences it will experience.
A description of the root cause issues on the basis of 5 whys:
Why did Affinity experience priorities and performance pressures?
Affinity was experiencing an all time employee turnover. Hiring freeze implemented by stakeholders in the previous year lead to difficulties in handling large volume of new lending as well as calls it was receiving on daily basis due to growth in their business
Why the hiring freeze?
Affinity wanted to retain employees who were willing to adapt to the MOE strategy it had introduced. The Member, Organization, Employee technique aimed at giving members the first priority by building trust with customers. To adapt to MOE, Affinity had to change their business model to allow for decentralized decision making from the traditional centralized decision making. To achieve this, it had to be very selective when hiring and even had to let go employees who were not willing to adapt this new business model. This caused burden and pressure on their new system.
Why did the new system experience pressure?
The new system experienced pressure because the rapidly growing business due to the change in business model. Most existing members wanted to underwrite new business while...