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Problems in Bank One Essay

Bank One is one of the oldest banks in operation in United States for more than 3 decades and which has a successful client list.  In the recent years beginning from 1999, Bank One is confronting problems with the management, customers and from employees. There are many mergers, acquisitions and takeovers by Bank One which has increased the turnover of the Bank One as well in its earnings.  Low morale of employees who totally account to 83,000, improper cost control, overhead expenses, rendering of dissatisfied customer service lead Bank One  millions of good customers, who preferred to lift accounts from Bank One.

The quality of loans, commercial bank service began to appear very weak with high interest rates.  There was also no improvement in IT systems and accounting systems due to which the working system is performed on a slow pace.  There was no impact on Bank One share price in stock market even after announcement of change in management.

 One of the biggest problem for Bank One was pre-tax earnings were $500 million less than expected for the year 1999 and the analysts told that Bank One would be still lower in the coming years and more problems began for Bank

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One with First USA Credit Card Unit. In the same year, four top executives left Bank One bringing an operational halt to the Bank One and apart from this change, there was another change in the leadership of CEO.

The above discussion indicates that the problems of Bank One were not in one single direction or in a single particular operational activity of the Bank One. The problems of Bank One are in focused areas viz., employees, management, customer service, products of Bank One and lack of constant watch of Bank One share price and its analysis.

Current culture

The culture of Bank One consists of several operations viz., retail banking, investment management operating from Chicago headquarters, with several branches in Midwestern and southwestern states, there are 1800 branches, 5,100 ATMs, 2,200 telephone bankers and two Internet platforms viz., Bankone.com, Wingspan.com and most actively there are 7 million household and 500,000 small-business customers. The senior management is always attentive in the operational activities of the bank  by collecting information from employees,  going through the balance sheets, particularly expenses and costs that are going out of control within Bank One and there is no proper check about the overall activity and neither about financial statements.

 The problem of low morale among employees is also contributing to the change in work environment of Bank One and there are politics in office which does not do any kind of good for the Bank One in lifting the efficient operations of Bank One.  There are no proper HR policies, HR manager or regular meetings with employees.  The system of functional operation, holding responsibility for customer service,  a sense of responsibility for being an employee of Bank One such as these inherent qualities for employees which are optimum requirement are not existent in Bank One.

Most of the employees do not either feel responsible for the job nor cast the burden on some other employee as a result of which poor customer service is recorded and there are no positive feedback from customers about the service quality from customers.

Current leadership model

The current leadership model is at its best incomparably with the fact that firstly there is an investment to the extent of $57 million in the Bank and secondly the leadership experience is vast, beginning from American Express Company and further the leadership was analyzed by several financial and banking analysts who held that selected leader must be perfect in order and discipline and who can drive the turnover and working of Bank One into profits.

 The leadership in Bank One is scrutinizing every area of operation viz., products,  customer service, HR policies, administration and financial statements, IT and accounting systems to restructure the working of Bank One.  It is only possible for a person who has an expertise in the field of Banking and management in organizational behavior.

Apart from bringing the order and discipline for employees, it is important to satisfy Board of Directors of Bank One with restructuring plan and organizational behavior and this has been successfully prepared by the current leader in Bank One.  The career and work experience is vast and aptly suitable for Bank One as the leader also holds a membership from World Economic Forum to drive banking sector into the future with profits and high efficient working systems.


Bank One has wide scope for expansion of business by rendering global services to customers, introduce innovative schemes for existing customers and improve quality of service to the existing and new customers to retain and good and reputation of Bank One.

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