Ing Directs

The role of the responder: (e.g. Basil Bell: Senior vice president of operations)

The operations group headed by Basil Bell, senior vice-president of operations, consisted of 41 operational associate and managers. The prime task of the operations group was to provide back office support to the call Centre and other functions in the bank.

Introduction

ING direct corporate mandate was to provide a superior value proposition the use of cost-effective products and services with high interest rates on deposits, low rates on loans. ING direct Canada concerned with the subsequent staff burnout led to increased error rates and excessive overtime. It needs to find a solution a on a current process improvement of mailroom that deal with meeting the operations demands of a rapidly growing client base and processing of new accounts that took major time of mailroom capacity. MacDonald and I decided to analyze the new account processing separately and we shared insights on March 9 to decide on strategy.

This paper studies and analyses the main issues of the case, proposes various alternatives and makes recommendation based on the analysis.

Key Issues (10 marks)

Issue 1 (Most Important Issue):

The most pressing issue I have to deal with is to managing the banks rapidly growing client base without increase in staff level. ING Canada management put its efforts to maintain low infrastructure costs by only one location that stressed tight budgetary controls. The strategy was to develop a banking operations using low cost by services with high interest rates on deposits, low rate on loans and no service charges. No forecasting and benchmark measurements existed on any of the processing activities to determine appropriate staffing levels. As there is only one location is used, space prevented a massive growth in operations personnel as the number of clients increased. In 1999, there were 220,000 accounts and the corporate plan for 50% client growth (110,000 new accounts)...