Integration - Causal Chains and Strategy - Essay Example

This improvement will be caused due to the increased employees’ professionalism and their motivation. Thus, TCCB customers will be satisfied with an excellent service. Customer’s satisfaction will lead to improved loan and deposit balances, and non-interest income. Also, satisfied customers will advertise TCCB to other people because of its excellent service and broad assortment of products (new loans, etc.). The 3rd chain: Customer’s satisfaction and retention will be also increased due to making thank you calls and providing cards to new and existing customers.

Having TCCB cards customers will come again to the TCCB, thus will be increased customer’s retention. Finally, TCCB will improve its loan balances, deposit balances, and non-interest income. While evaluating the effectiveness of the balanced scorecard approach between two categories of branches A-E and F-J, it was obvious that the first category (A-E) demonstrated much better financial results than the second category (F-J). According to the data presented in Table 3, all branches that had applied the BSC except E, demonstrated financial increases in loan balance, deposit balance and non-interest balance.

While the branches F-J also have demonstrated financial improvements for one year of performance, these improvements were hardly noticeable. In 2001, F branch demonstrated decrease ($1 mln) in deposit balance comparing with the previous financial year; performance of G branch in loan balance did not change for one year; and branch H have demonstrated decrease ($3 mln) in noninterest income (Albright, Davis, Hibbets 2001, p.59). The branches that applied BSC demonstrated only increases in loan balance, deposit balance and noninterest income; there were no decreases in terms of financial performance.

While the financial improvements were performed by A-E