Bank of America Case

According to Goldratt's theory of limitations, every organization has at least one

bottleneck. Overcoming these obstacles is almost impossible since they act as stumbling blocks.
There are two types of blockages. In addition to the internal limits, there are also market
constraints to consider. As Goldratt points out, for an organization to rise far beyond restrictions,
it must first recognize its limitations. The firm must be run so that the issues it faces are
addressed. Because of this, firms must understand that there is no one answer for all of their
challenges. There must be a continual effort to adapt to varied conditions and demands while
managing restrictions.

Goldratt (2004) stated that Bank of America is among the country's most prominent
banking firms. Services offered by Bank of America include asset management, financial risk
management, and a wide range of additional products and services for both individuals and
businesses. Non-banking institutions, such as Visa, Capital Management, and International
Commercial Banking, are also the bank's business partners, which provides banking services
(NYSE, 2012). Here, we explain how Bank of America might employ Godlhatt's notion of the
theory of constraints as in the Goal to address some of the company's problems.

When it comes to customer service complaints and approvals, a website called Customer
Service Scorecard (2009) reports that Bank of America does have one of the poorest ratings.
Website data shows that Bank of America scores 472 out of 553 on the list. The firm has a 200-
point total score of 25.62. A total of 1104 consumers were surveyed for this research. There is a
Terrible customer service system in place. Customer dissatisfaction has been cited as a reason for
the automation system's shortcomings. According to the reviews, even after mainly waiting in
line for an extended period, the automated system still hangs up on clients. Every time the call is
moved to another department, the computerized system hangs up. Additionally, the clients
complain about the harshness of the customer service team on the phone, as well as the inability
of the customer service agents to remember their ss number, account number, or other personal
information.

In the opinion of Andrew (2019), consumers have complained about customer support
workers' lack of sufficient training, are unprepared to numerous circumstances, and are often
moved to other customer care agents. Over the phone bill payments are complicated and time-
consuming for Bank of America customers. The bank needs to reorganize the customer due to
these and other issues. Goldratt's The Goal approaches must be used. Bank of America's
customer service issue is an instance of a market limitation. When demand for a company's
goods or services exceeds its capacity, a market constraint is triggered. A lack of structure or
effective reaction by Bank of America seems to have resulted in high demand for customer
relations from its employees. Goldratt argues that the impact of a limitation is entirely dependent
on the organization's performance, regardless of the constraint's type. The organization and
structure of a firm revolve around providing excellent customer service.
The three pillars of Goldratt's theory of constraints may all be applied to Bank of
America. The "inherent simplicity" argument is the basis for the theory's first premise. Goldratt
argues in this notion that the more complicated a system is, the more easily it can be solved. This
suggests that the challenge is difficult to solve due to the many issues' interconnectedness. It's
like a cascading domino effect: solving one problem automatically solves the others. One aim is
assumed to be necessary for efficient management in the second premise. The third tenet asserts
that an organization's smooth operation depends on mutual respect (Gundlach, 2009).

Problematic Customer Service at Bank of America Solved using Theory of Constraints

Quality is a problem

Situations resulting in consumer limitations are all too typical in businesses of all sizes.
Nevertheless, how the business interacts with its clients is crucial to its success. Customer
happiness should be the company's primary purpose, and the consumer is the vote for the firm.
Customers are not satisfied with successful businesses. These people put forth a lot of effort to
impress them. When it comes to delivering superior customer values, it means going above and
beyond what is expected of you daily.

Most multinational organizations use value as a strategic driver to set themselves apart
from the competition in the eyes of their consumers. Valuables may be thought of as the quality
of anything, depending on how desirable or helpful it is. Organizations benefit from a value-
driven marketing approach in several ways. Reduced limitations, better cooperation, and
increased workplace cohesiveness are examples of how Goldratt stresses the importance of value
in the workplace. Customer relations may be improved if Bank of America adheres to these
procedures.

"Organizational and conceptual" barriers to successful consumer interaction. For a farm

to be successful, it must shift from conventional client interaction tactics to a more holistic
marketing structure that engages all partners in the product. Ultimately, its marketing strategy
will be strengthened if it incorporates an equal opportunity approach—an example of a
marketing strategy that considers all of its stakeholders. For example, a premium hotel company
devised a plan to identify consumers based on their demographics. As a result, each new segment
of the population has its unique brand portfolio. As a result, the corporation could tailor its
pricing and service offerings to meet the demands of a wide range of clients. Because of the wide
range of consumer demands, it provided a distinct customer experience on many levels. The
process was facilitated with the company's flexibility in meeting individual requirements. Louis-
Vuitton also created a magazine named NOWNESS to update clients about the company's
newest offerings. Streaming highlight videos of newly released items were also posted on the
company's Facebook page. Their shared capacity to build a customer relationship system that is
both engaging and long-lasting and maintain high-quality standards is what unites the two
businesses.

It's a struggle to work as a team

The firm has to be dispersed into smaller teams to function as a whole. Each unit is
tasked with identifying bottlenecks and implementing changes in their respective area of
responsibility. After that, a measuring method is built to offer feedback on the enhancements
made throughout the whole company's various departments. A remuneration that includes an
enthusiastic celebration is created to thank employees for their successes if there is an overall
increase in job pace.
For any team's efficiency and development, the advice of others should be taken into
account. Successful business managers believe that for an organization to succeed, it must
achieve the following things:
1. The team's objectives and procedures for accomplishing the goals must be articulated.
2. Every team member should know exactly what they're doing and how it contributes to the
greater good.
3. The group as a whole makes sound judgments.
4. When comments and feedback are given and received in an appropriate manner
5. Five. Disputes are settled amicably.
6. When it comes to high-performing teams, it's not an accident.
7. By establishing reliable and comprehensive team-building methods, they have built the
capacity to adapt to their teams' changing circumstances, composition, and competencies.
8. For a corporation to achieve high performance, it must follow the rules as mentioned
earlier.

Technology's Unsolved Problems

Customers and businesses may build trust via the use of social media. My organization
will create a trusting relationship with its social network via social media and CRM. Customers
will access this information and communicate with the company online. Viewing apps, including
likes (Facebook), opinions, and postings on the public page, will increase confidence in the firm.
Social media not only let people connect with one other, but they also help innovative
technology get the word out throughout the world. My firm can utilize social media to
communicate with people worldwide for a fraction of the cost of traditional methods, such as
trade shows and conferences. My ability to merge CRM technology with social media makes my
IT future secure.

Business Management Learner's Perspective on Business Strategy:

The following guidelines have been put forward to maximize rewards over reasonable
investments. The limitations indicated below are specific to the position of a Business
Management student who has just graduated with honours. They have continued an internship
with a well-known financial franchise, a very successful and capitalistic organization that
adheres to the principles described in the book.

Accounting for Financial Resources: Continual Improvement and Development Strategies