Table Of Contents:
- Global Approaches For Operation Management
- Strategy for Taking care of Global Operation
- Operation Strategy Contents
- Global Total Quality Management In Financial Service Industries
- Global Inventory Planning And Control Management
- Inventory Planning And Control
- The Operation
- The Market
- Global Change Management Strategies In Financial Environment
- Strategy for Change
- Financial Services Environment
- Change Need In Current Financial Environment
- Global Operations Design
- Process Design
- The Volume-Variety Effect of Process Design
- Process Type In Service Operations
- Aspects Of Products And Services
- Supply Network Design
- Process Technology
- Global Procedure Planning and Control
- Global Supply String Management
- Strategies For Global Human Being Resources
- Global Operational Improvement
- Global Operational Challenge
- Appendix 1:
Global operation management in financial institution has seen unstable activities lately anticipated to global financial downturn and competition for market share. The key aspect which underpin global environment will be internationalisation and globalisation. Global procedure identifies dynamics which influence the world current economic climate and successful integration of global dispersed function or activities. Matching to Yip(1995) " global procedure can be refer to, amongst others global sourcing, to have developing or service facilities globally or to source motorists of globalisation including global market, each which increase competitiveness through increase sales by expanding into new market". On the other hand, Slack, et al (2001) argues that globalization is the opportunities for operation managers to build up both distributor and customer relation in different area of the world.
Recent strategies in global competition among organisations require expansion of trade internationally by the pattern of foreign direct investment which has resulted emerging recently industrialising country. In an extremely competitive global environment, companies need to set a proper define operation aims and ideas to successfully be competitive in both local and global market.
This task critically analyses the key global operation management techniques implemented by Barclays bank for its innovative process to tell apart itself as a distinctive global advantage management company offering tremendous service to organization and individuals. Barclay's global traders are one of the worlds greatest asset professionals and the world most significant providers of framework investment strategies. The company procedure strategy should echo its position in global, economical, political and sociable environment. (See Appendix one)
According to the project there are 8 major key factors for global operation management to be considered below;
- Global Total Quality Management operating industries (TQM gurus)
- Global Inventory Planning and Control Management
- Strategies for Global Change Management
- Global Operation Design and Process
- Global Operations Planning, Scheduling
- Global Distributions and offer Chain Management
- Strategy for Global Human Resources.
- Global technique for operation Management
Global Approaches For Operation Management
Operation management is a organized approach to solve all the problems regarding the change process that convert some inputs into result that are useful and could fetch income for the company. Relating to Slack, et al (2001) global operation management is the word used for the actions, decision and obligations of operation professionals who take care of the creation and sent of produce and service. The operation strategy should participate the company total technique to achieve global dominance. Financial service product faces unique challenges which need customers present during the production and service delivery. This involves Barclays to improve its operation process that will add value to achieve competitive gain.
Strategy for Taking care of Global Operation
Effective procedure through successful use of resources worldwide drive towards a globalize financial system. Global market imposes new standards on quality and time requires procedure managers to think local market and penetrate the global market. To accomplish its goals towards globalization, there must be improve communication solutions and open financial system. The company strategy should achieve adequate utilisation of tool and adequate customer support.
This strategy has prove success by placing itself as customer-oriented company and empowering customers world wide to make different alternatives of progressive financial product to meet their needs.
However, global strategy gets the following pull backs;
- To manage multinational operation faces difficulties of dialect and customs difference, different management style and various laws and regulation.
- The current monetary downturn has damaged consumer spending and self-confidence in the banking industries.
- Complex global operation by multinational faces moral and environmental challenges.
Operation Strategy Contents
In global procedure content, your choice and action should be specific to achieve the objective. The content shows the four perspectives;
- Operation strategy as top- down perspective
- Operation strategy as bottom-up perspective
- The market need perspective
- The procedure resources perspective
Global Total Quality Management In Financial Service Industries
Total quality management
The business market leaders face huge pressure in the current turbulent competitive environment that's progress by globalisation, macro-environment factors and advanced scientific development of internet. The strong market pushes through this competitive environment are suffering from global customers who are usually more alert to changes in the global market.
Total quality management is an important tool in any business to surmount future challenges within the turbulent financial service environment. TQM provides the financial business leaders with a formalised process in setting clear and attainable corporate goals and at exactly the same time courses the management in planning ways of maximise resources also to achieve win-win relationship.
Total quality management (TQM) can be an organization-wide process that revolves around the Total Quality Triad. It assumes that there surely is never circumstances of perfection (Kelada, 1996).
Hence, to be able to that strategies are developed in an included manner, three important total quality key points must be adhered to - involvement and commitment by stakeholders and senior management team, employee involvement and ongoing advancements to meet customer satisfaction.
Source: Bradford University
Total Quality Management In Global Financial Services Environment
In the global financial services environment, Total Quality Management (TQM) provides the overall strategy that fosters constant improvement in an organization. The implementation of a Quality Management System (QMS) will not equate to self-generated results.
Continuous improvement of the QMS is of paramount importance for conference and satisfying clients' ever changing needs and requirements. The goal of the task is to recognize quality improvement through Kaizen program, performance measurements; benchmarking with appropriate key performance signals; and essentially developing a balanced scorecard to accomplish continual improvement.
Practices by non-financial organisation
Good practices put in place by building organizations in proper partnerships alliances and knowledge management was discovered and developed tips for improvements to gain competitive benefit in the building industry.
TQM not suitable for financial services environment
TQM is not actually ideal for any service organisations but it surely helps the service organisations to concentrate on the contribution of senior management team, participation of most employees and managing inside process towards reaching client satisfaction.
Long Term client relationship
In global financial services environment business strategy is building on long-term customer associations. Over 90 percent of the task is repeated business from faithful clients. This plan yields cost advantages, income, and growth, allowing them to attract and preserve investors and thus fuel further expansion.
There are a number of freelance writers whose work dominates the quality motion. Their ideas and approaches have stood the test of time and also have come to from a body of accepted knowledge, to lead and guide their own movements in quality.
They have grown to be known as 'gurus'
- Crosby Philip B.
- Deming W. Edwards
- Feigenbaum Armand V
- Ishikawa Kaoru
- Juran Joseph M
- Oakland john S
- Shingo Shigeo
- Taguchi Genichi
All the above mentioned Gurus have offered their own work on quality management and also have made a substantial impact on the globe through their contributions to improving not only businesses, but all organizations including national governments, public organizations, educational corporations, medical organizations, and a great many other institutions and organizations.
Global Inventory Planning And Control Management
What is planning and control?
The purpose of planning and control is to ensure that procedures are working effectively and the creation of products and services as required. There is another purpose of planning which is to minimise uncertainty and risk and a clear view of future forecasting.
Financial planning and control
It is a well known fact that a successful business helps organisations to create enough cash in order to cover costs and make some profit.
The difference between sales and cost is income. The businesses aren't always likely to be profitable from the very first day but there must be an expected plan for them to become profitable.
There should be proper financial controls for all your businesses. The information should be exact and complete and should fulfil the legal requirements. The restricted financial control always helps the financial organisations or any company to keep an eye on their current situation and always predict the future environment.
The information derived from financial statement analysis may be used to establish future working goals (financial planning) and regulate how to meet proven goals (financial control).
Developing pro forma financial assertions is an important area of the planning and control processes.
Inventory planning and control in financial services environment
Inventory planning and control in financial services environment is the technique of organising the difference between demand and offer of financial products and services.
Inventory control is not a tiny subject from a financial perspective way. Inventory is absolutely important and major current asset for any business including financial services organisations. Because of this, there are always procedures of businesses to keep the inventory as low as possible because too much cash endure in inventory. The aim of lowering the inventory can be achieved with modern inventory management processes that will work effectively.
Inventory Planning And Control
- Operations resources
- Customer requirements
Global Change Management Strategies In Financial Environment
In today's world of economical and technological development, the organisations have changed significantly. The change had only been possible through restructuring, technical improvement and merging with other businesses.
The most important concern for the organisations is to use such change to attain the behavioural and cultural change that is most probably necessary to achieve the organized benefits.
Behavioural change does not only happen in the organisation. Change is only going to occur if there is control, clear goals and prepared benefits for its stakeholders. All of these should be properly communicated in a timely manner.
Strategy for Change
Three important rules to control change are:
- Change management is not the goal in itself:
For an company to be successful, change management takes on an important role. Change management is all about managing the process effectively and leads to an environment where an improvement in performance are realised.
- The change goals must play an active role in realising the change:
Change in tasks will identify and successfully talk the image, therefore letting the employees know that the organized benefits have altered and play an active role in realising those organized benefits.
- Employees will be the greatest asset for any organisation:
Employees are probably the greatest concern for any organisation. The image or goal of any purpose can only become actuality if the employees have confidence in the project and also have the desire to accomplish it.
Financial Services Environment
In the last ten years, financial services sector has been through major changes. The financial sector is a rewarding field in which there is every chance to make or improve a career, particularly if personnel is loyal, hard working and also have given the right regress to something easier support. It can't be dismissed that the current procedure for globalization and market deregulation has often resulted in restructuring within organisations. If these major changes have been mis-handled, then it could bring job insecurity and causing increased pressure on work forces, which in turn can lead to higher work related stress, and a possible lack of commitment and desire.
Change Need In Current Financial Environment
Capital, currently, is grossly overvalued. Company objectives are all about maximizing value for shareholders, the providers of capital. This may lead to companies implementing strategies that not necessarily gain stakeholders such as customers and personnel. The same emphasis on capital, and shareholder value, breeds an poor focus on short-term results. Shareholders of stock listed companies want better results every quarter, leading management to adopt decisions that are not actually in the longterm hobbies of the business and its stakeholders. This needs to change.
Global Operations Design
A global operation must be designed to allow efficiency and efficiency. It must not happen by default. "To "design" is to conceive the looks, layout and workings of something before it is built. " (Slack, chambers and Johnston, 2007).
Global businesses design consist of process design, products or service design, process solutions and layout design.
Slack, Chambers and Johnston, 2007; identified process design as "the entire configuration of a process that determines the series of activities and the flow of transformed resources between them". Process design should reflect process purpose.
"Processes should be designed so they can create all products and services which the operation will probably introduce". (Slack, Chambers and Johnston, 2007)
The Volume-Variety Effect of Process Design
Normally, the look of an activity for a financial services organisation in a country is dependant on volume-variety. This also applies globally.
Process Type In Service Operations
Process design will be determined by the volume and variety. When volume level is low, you have the likelihood that variety will be high. When size is high, you have the probability that variety will be low therefore you will see standardisation.
Professional services provide high degrees of customised services predicated on customer needs. As a result may have higher level of variety and low level.
Mass services process have a high number of trades, often concerning limited
customisation, example gocompare. com. Because of this there will be high volume and so variety may be low.
Service shops process sit between professional services and mass services, usually with medium degrees of level and customisation.
In global procedures design, FSO comes within the Mass Services category. That is high size and less variety. Therefore, there may be standardisation. This is because;
Due to globalisation, there exists more movement of individuals across the world. It is therefore important to make a uniformity of procedures so that customers from different part of the world who've seen such a product or services at other parts of the world could easily identify and understand the processes.
- Cost Saving
In FSO, it cost of money to create a process. A number of the cost will be the amount paid to consultants and key management staff to design a process to attain efficiency and success. Hence such an activity is copied by other branches throughout the world to save lots of money.
There is also a whole lot of management time in process design. Hence, it is better for other branches in other area of the world to replicate so that management time will be kept and allocated to alternative activities.
- Human Reference Management
Globalisation has also lead to the activity of personnel, especially senior and management staff across the world. To ensure that they fit in to the system easily, process are standardised.
- Global Management Strategy
Most FSO now start to see the world as a worldwide village. For that matter, top management start to see the world global procedure as one device. Because of this, they choose similar processes over the whole global organisation.
- Products or Service Design
"Products and services are often the very first thing that customers see of any company, so they must have an impact. " " An excellent design is to satisfy the customer. " (Slack, Chambers and Johnston, 2007). As customer gets satisfied, the company can achieve its vision (Lynch and Combination, Performance Pyramid).
According performance pyramid produced by Lynch and Combination (Advanced Performance Management, Essential text, 2007); Customers base their satisfaction on quality and delivery time. The organisation bases their satisfaction on process time and level of waste. This is known as level four.
As level four is achieve, contributes to level three. That's customers becomes satisfied, the company becomes flexible to meet customers needs and so productivity as complete increases.
Level three brings about level two. The company then get market show and high success therefore of level three.
Finally, the company finally achieve its eye-sight.
Aspects Of Products And Services
"All products and services can be considered as having three aspects". (Slack, Chambers and Johnston, 2007). That is, concept, offer and process. The concept, "which is the understanding of the type, use and value of the service or product".
FSO may control the three aspects mostly through both exterior and internal environmental analysis by using SWOT Analysis (power, weakness, opportunity and danger), Porters five makes and Porters Stone.
Supply Network Design
Supply network includes suppliers and customers. In addition, it include supplier's suppliers and customer's customers etc. It is "the network of dealer and customer operations that have romantic relationships with a surgical procedure". (Slack, Chambers and Johnston, 2007).
The network has a supply side. That is, network of suppliers, supplier's suppliers that provide resources to a surgical procedure. The demand area is, chains of customers, customer's customers that have the products and services made by an operation.
The supply network must be designed to reduce time and cost. The shorter network, the shorter the routine time and so the delivery time to the customers may also reduce.
Sometimes, FSO outsource some activities to lessen the source network to save lots of cost and increase rate.
Furthermore, it has also help reduce the source network by eliminating intermediaries. Example, e-procurement can enable FSO to gain access to a pool of suppliers directly. For the demand area, websites like moneysupermarket. com can be utilized by a wide range of customers directly.
Global Procedure Planning and Control
Most FSO fail because they neglect to plan and control their resources internationally. The situation of all banks in the current global recession is an average example. Aside from HSBC and Barclays Loan company to some extent, most banks nearly collapse. Northern Rock and Lloyds TSB are a exemplory case of failure to plan and control internationally. This shows that planning and control are extremely important because global operation for FSO is an extremely risky. Therefore, planning and control is important. That is to ensure efficiency and effectiveness globally.
The entire world current economic climate is interlinked. There exists free activity of capital around the world. Because of this, an economical downturn in a single area of the world could influence the rest of the world. Example, the downturn of the housing market in U. S. A. nearly causes the collapse of North Rock all together. Furthermore, the current recession in Dubai has influenced the Lloyds TSB in the U. K.
Some of things that are planning and control internationally are;
- Capacity Planning and Control
This "is the task of setting the effective capacity of the operation so that it can react to the demands placed upon it"(Slack, Chambers and Johnston, 2007). That is how to deploy resources to in a position to meet demand. That may be termed as flexibility of source of information utilisation. Globally, FSO must be flexible enough to cope with changing degrees of operation. Inability in capacity planning and control normally lead to hold off of delivering on time. Because of this, customers get dissatisfied and the long-term effect is lost of market share.
Some of the factors which could have an impact on global capacity planning and control are;
Political - Example are; political instability, federal regulations
Economics - Recession, Exchange rate, Foreign exchange control.
Social - Culture, Religious beliefs, Availability of staff
Technology - Level of technology
Environmental - Activities of environmental firms and international regulations on environmental issues.
Legal - Legislation like health and safety, anti monopoly laws
- Project Planning and Control
"A project is a couple of activities with a definite start point and an absolute end status, which pursues a defined goal and runs on the defined set of resources". (Slack, Chambers and Johnston, 2007).
It entails five stages. These are;
- Understanding the project environment
- Determining the project
- Project planning
- Technological execution
- Job control
Global task planning and control is difficult and risky. It is because, it's very big, it includes vast area, time dissimilarities and it may involve a great deal of resources. Poor planning and control of job can lead to failure. That is, more resources may be used than expected and the job may also not conclude on routine.
A job can be organized and handled by techniques such as critical way research and Gantt graphs.
The advantages of information technology has help to manage global assignments. Typically the most popular software for controlling global assignments is Groupware.
Global Supply String Management
Global operations professionals of FSO have to look beyond internal view if indeed they want to manage their businesses effectively. It is because, an organisation is determined by other organisations for survival and so there is the necessity to manage the resource and distribution of product and service. Decisions need to be made regarding source and distribution, to ensure that the needs of end customers are satisfied. That is, delivering customers with the correct products and services when needed at a competitive price.
The aims of supply chain management are quality, rate, dependability, flexibility and cost.
Internet and cellular phone have helped most global FSO to make romantic relationship between suppliers and customer work more efficiently and effectively. Through internet, global FSO has gained usage of extensive suppliers and also has used internet and mobile to provide banking services to remote customers in various countries.
Strategies For Global Human Being Resources
Human resources have got a key role in going into in to a new market to determine the chance and opportunity of the market. Human resources are worried about staffing, recruiting and retain employees, training and development, ethnic compatibility, communication and technology, and policies, procedures and framework.
As organizations grow worldwide, human resource management is becoming increasingly more complicated and challenging. The global business needs highly skilled and educated people for the procedure and the HR management support these folks to work as a team.
Many companies have developed technological tools to address and conquer the HR problems. Within the global operation the HR managers struggled to talk to the entire labor force effectively because they are spread all over the world. Many businesses develop impressive tools to communicate effectively to the labor force.
Some years prior to the managers are sending from the headquarters to the overseas business. With useful HR management many companies hiring people from geographic area and employing professionals without concerned of these origin.
The HR managers have to comprehend the issues happen in the global operation. Global human resource management mainly focussed on recruiting key professional. By establishing ethical standards and keep maintaining these criteria HR involved in the new operation, mergers and acquisition.
The human learning resource management should have a thorough knowledge of companies' business strategy, product and services to be successful in global business development. If the HR managers have no business knowledge their role will be limited by administrating and staffing. In case the HR takes effort responsibility for developing resource plans and solution for staffing they have an integral role in global business development.
When staffing for global operation the HR management should taken awareness of the timelines of building the new procedure, the abilities and experience required the long-term and short-term staff need, the option of local candidate and the position which have to be filled up soon.
The conditions and condition of the job includes payroll and compensations has to explain before recruiting the employees. Just as the global business many countries have different regulations and its own HR managers responsibility to improve the conditions and condition according to the country where it manages business. The HR must maintain a policy to all or any employees regardless of the place they work.
There are four principle option between local adaption and global integration. They are simply international strategy where knowledge copy from brain quarters. It is ideal for the when there is merely few overseas business. The second you are multinational strategy which is local adapted. The next alternate is globalisation strategy which is centralised technique for all the global operation. The final choice is the transnational strategy.
The HR administrator should entail in the homework process before acquisition or merger occurs. The due diligence includes analysing the experience and experience of the suggested merging management, the occupation tactics and the pay and gain practices.
The regular HR strategy would improve the efficiency of workforce and can preserve trained employees which will reduce the recruiting and staffing cost. The HR should set up a steady HR strategy as well as a regular localisation strategy. With out a constant HR strategy it is hard to recruit, retain and coach employees.
Global Operational Improvement
All the procedures have got range of improvement regardless of how well they handled. The managers should know their business and need to know how well they can be operating currently. The five performance objectives- quality, speed, dependability, flexibility and cost can be measure how well they are operating at this time. The customer satisfaction is other tool for measuring the performance.
The performance steps should be compared with a target. The prospective can be historically established, external performance founded or absolute performance target. It could be also done by bench marking which is comparing with own performance or many others in the similar industry.
The main concern for improvement can be evaluated using their performance and importance. The important-performance matrix can be utilized for this, which really is a strategy to compare the relative importance and performance to prioritize the improvement. Various other methods are employing for improvement, such as break in the action through improvement which is invention based mostly improvement, and the continuous improvement method as the name says it following gradual improvement method. The business enterprise process re-engineering process is another method of improvement which suggests redesign of process to fulfil customer needs.
To enhance the operation, it should know the cause of inability of the operation. There are multiple reasons for operational failing. It could be design failures, facilities failures, people failure like problems and violation, dealer failures, customer failure and environmental disruption. A lot of the failures real cause is human failures. As the failures can be managed and enhance the failures are a chance. Once the failures cause and impact understand the next step is try to avoid the failure in future. By retaining the operation carefully will minimise the probability of failure.
The Total Quality Management could be use to improve the operation, by inspecting, controlling and assuring the procedure will lead to enhance the operation.
The companies are increasing their operation and product by experience and learning from the entire world to be competitive in the global business. The companies have to innovate new product and service to win the world. The traditional operational functions need to be change with the demand of the global overall economy for multinational organisations.
The new technologies and options able the firms to find and access knowledge before their competition. Therefore multinational companies have to act through to quick to the new knowledge they gain to maintain in the industry. The firms need to practice to learn from wherever the knowledge is generated. Once the knowledge is helped bring together it should be converted as an ground breaking product service or process which can only help in global procedure. The globally successful companies be capable of spread their innovation across the global market.
The companies have to obtain wide selection of technology and techniques to achieve success in global procedure.
Global Operational Challenge
The problems of operational management a wide range of, but the major challenges are the impact of the globalization of markets, the changing view of the sociable responsibility, the environmental responsibility of businesses, the influence of technology development on procedures management and the emergence of the idea of knowledge management. (Nigel slack, Stuart chambers, Robert Johnston).
The concern for operation is that it has to understand the changes throughout the market and business and react to that as quickly as possible. Within the global operation the supply chain has to increase to depends upon to be successful.
The different countries 've got different management ideas according with their culture. As the individuals are the ruler in the market, the managers who don't know the culture and attitude will fail in the global business market. The organisational culture is just how things are done regular. The political and environmental difference between countries to country is a superb concern for the managers.
The people decisions are related to their social rules and laws and regulations. Some places the people buying patterns rely upon their status, therefore the management need to have good understanding of the customer needs according with their status.
When designing something or services it should fit to the culture. The option of technology and skills are an issue for global operation and the labour cost and skilled labours. The travelling and the storage area capacities are other difficulties for global operation.
The managers need to comprehend and analyse overseas organisations, suppliers and customers regularly. Understanding the working connection between suppliers and customers in each area will give the durability and weakness of the supply and chain and can enhance the global procedure by analysing alternative party organisation.
The main recommendations are about how precisely Barclays bank put into practice its key global operation management policies to attain better result and be global super power in financial service.
1. As a long-term expansion strategy, it advised that total quality idea should be adopted that will foster continue improvement in its operation. Although TQM it not suited to financial service environment, it can help formation of quality group affecting all employees and mature management to concentrate on achieving client satisfaction, devotion and customer retention.
2. Additionally it is suggested that Barclays loan provider empower and support its personnel for change management. Due to globalization and market deregulation, financial sector often undertake constant restructuring and government intervention.
3. It is strongly recommended that the lender researches into variety of product and process design to maintain position as world leading innovator in financial service. This may enable the company to gain customers from different area of the world to get market show and high profitability.
4. Failure of good long-term planning business lead to collapse of North Rock, because of this it is strongly recommended the execution of effective and successful long-term planning and handles to triumph over environmental uncertainty in the banking industries.
5. It is strongly recommended for investment of improve progress it to keep track of supply network and e- procurement.
Recent global economic crises in the financial companies has put immense pleasure on operation managers to put into practice and developed ideal ways of maximise resource to get competitive gain and build global brand.
Barclays bank views opportunity in the global market to gain market show over its competitors by continuous improvement on quality and product technology to meet customer's satisfaction and needs.
To improve the level of global dominance, the procedure management team has assessed the key operation factors and chosen change strategy to manage behavioural and culture change at different part of the world to achieve the planned benefit. Doubt in the financial business, the bank will use the right forecasting methods and effective inventory management that will monitor changes and respond to action needed to reduce cost.
Barclays loan company is a varied financial service group with head office established at Canary Wharf London. It was founded 300 years ago focus on global procedure in bank, investment banking and investment management
Barclays is FTSE 100 Company outlined on the London Stock exchange and is the fourth greatest lender in U. K. It is a global lender with operation in sixty countries and 850 international branches. It performs in European countries, United Point out of America, Africa and Asia.
The company offer broad range of financial product and services to consumers, small company and commercial clients they are personal loans, personal savings, investment, Barclays card, current account, home loans, insurance, premier banking, mobile banking, asset management and car finance.
To achieve it global dominance it has segmented its operation into seven strategic sections of Barclays International, Barclays Africa, Barclaycard, Barclays Capital, Barclays Global Investors, Barclays Private customer and U. K retail bank.
Barclays standard bank main competitors in U. K are HBOS plc, HSBC Positioning plc and Lloyds TSB group.