Prepare a project report on Total Quality Management of ACLEDA Bank
Submitted To Dr. V. V. SESHU BABU
Submitted By: Kao Dana
Date: 10 May 2003
Table of contents
Page
I- Introduction
General Background 1
1- Shareholders 3
2- Board of Directors 3
3- Executive Committee 3
4- Provincial Branch 3
II- Two Obstacles in introducing or implementing TQM in ACLEDA
Bank 4
III- Vision, Mission and Quality Policy Statement 5
1- Vision 5
2- Mission 5
3- Quality Policy Statements 5
IV- Evaluation of the current role of senior managers in ACLEDA
Bank 5
1- General Manager 5
2- Finance Manager 7
3- Treasury Manager 8
4- Human resource and credit Manager 9
5- Marketing Manager 10
6- Information Technology Manager 10
V- Code of ethics of ACLEDA Bank 11
VI- Strategic Quality Plan for ACLEDA Bank 11
VII- Customer Satisfaction Questionnaire reference 12
VIII- Evaluation of ACLEDA Bank's present Performance Appraisal
System, Recognition and Reward System, and Decision-
Making Methods 13
IX- Evaluation of the use of the Juaran's Triology by
the organization 14
1- Plan 14
2- Control 15
3- Improvement 16
X- Evaluation of the customers/ suppliers relationship in terms
of inspection, training, team approach, and recognition 16
Reference 18
I- Introduction
A- General Background
ACLEDA was established in January 1993, as a national NGO for Micro and Small Enterprises Development and Credit. From the earliest days ACLEDA received the support of a number of major international development agencies. Two factors, namely expansion of its network to cover 14 of Cambodia's 21 provinces and its ability to operate at a profit to ensure its sustainability, led both its Board and its international partners to conclude that ACLEDA should be transformed into a bank. This would not only provide a secure regulatory framework lacking under its previous status but would enable ACLEDA to enlarge its range of funding options (e.g. equity injection, taking public deposits, obtaining commercial inter-bank loans) to support expansion of its core micro-finance business. The Ministry of Commerce issued ACLEDA a Certificate of Incorporation as a Public Limited Liability Company in August 2000. ACLEDA completed the transformation from NGO to a bank and the National Bank of Cambodia granted ACLEDA a license on October 7th, 2000.
Under the process, the existing NGO transferred the assets and on-lent its liabilities (long term loans from donors) to the new ACLEDA Bank. In return, it received 32% of the Bank's capital of US million; the ACLEDA Staff Association, a trust established to give its staff an equity interest, will purchase up to 19% and the remaining 49% has been taken up in equal parts by four foreign investors, namely the International Finance Corporation (part of the World Bank), DEG- German Investment and Development Company, FMO- Netherlands Development Finance Company and Triodos Doeun (Netherlands).
ACLEDA has expanded its business achieving an average portfolio growth rate over 15% p.a. since 1997. At the transformation, ACLEDA had loan portfolios of US,462,166 million to 56,706 borrowing customers (averaging approximately US per loan) of which nearly 80% are women. ACLEDA's market share is more than 60% amongst the MFIs, and is growing. ACLEDA Bank currently employs 662 staff in 66 offices in 14 provinces and has loan portfolios of US,980,016 to 81,453 borrowing customers. Currently ACLEDA Bank's total assets are approximately US million.
To guarantee effective and efficient management with clear check and balance, ACLEDA Bank has set up their governance structure as follows:
B- Organization Structure
1- Shareholders
In total, there are six shareholders (ACLEDA NGO, ACLEDA Staff Association, IFC, DEG, FMO, and Triodos Bank). They have two roles, as the investors and the lenders to the bank. They form the supreme body of ACLEDA bank, called the Annual Shareholders Meeting. The meeting takes place once a year to review the report of the annual financial audited statements submitted by the board and approve the annual report and declare the dividend proposed by the board. The shareholders also appoint the board of directors of the bank and they will approve the proposal, which is not in the competency of the board.
2- The board of directors
There are nine board members in ACLEDA Bank. All of them get appointed by the shareholders during the shareholder meeting. They are accountable to the shareholders. Their roles are to make and approve all policies submitted by the executive committee. Those policies are: credit policies, financial policies, staff and incentive policies, audit policies, customer service policies, and financial product policies. The board meets three times a year to review the reports on the banking operation and development submitted by the executive committee. The board of directors appoints the general manager of ACLEDA Bank who is also the head of the executive committee. The board is responsible to ensure that the executive committee implements the policies approved and set by them.
3- The executive committee
The general manager appoints the members of the executive committee. There are seven members in the executive committee. Those members are the department managers of finance, credit and human resource, treasury, marketing, information technology, legal team, and internal audit team. The general manager chairs it. It meets every week. They are responsible for the day-to-day business of the bank.
4- Provincial Branches
The branch managers manage the branches. They are appointed by the general manager to manage the branches and their operations. They are accountable and reported to the general manager of ACLEDA Bank. Those branches are the main center for sales of banking services and products such as loans, savings and deposit, transfer, foreign exchange, overdraft, etc.
II- Two obstacles in introducing or implementing TQM in ACLEDA Bank.
As we understood from the textbook and the session on TQM, it is defined as the system of producing high quality products/services initially rather than depending on detecting defects later through inspection. It is a process that stresses 3 principles: customer satisfaction, employee involvement, and continuous improvements in quality. The goal of TQM is to eliminate all defects. TQM often focuses on benchmarking world-class standards, product/service design, process design, and processing. And it has the following elements:
q Top management commitment and involvement.
q Design products for quality.
q Customer involvement.
q Design production processes for quality.
q Control production processes for quality.
q Develop supplier for partnership.
q Customer service, distribution, and installation.
q Build teams of empower workers.
q Benchmarking and continuous improvement.
There are 2 problems happen in ACLEDA Bank. Firstly, ACLEDA Bank has designed its credit policy very clear for the credit officers in all ACLEDA Bank branches to implement to guarantee the best quality of loan portfolios according to the international standard [Portfolios at Risk (PAR) is less than 10%]. When it is implemented, the loan portfolios cannot grow according to the plan. Because everybody in the branches is focusing on the quality of loan portfolios furthermore it does not only effected with the growth but also with customer services. That policy makes the customers wait too long for receiving the loans they normally take them only two days for loan approval instead, it takes them two days. The bank conducted the customer surveyed every 3 months to determine how satisfactory the bank's services are to customers. Areas of deficiency are identified (customers complaint on time consumption since they are waiting too long), policies are reviewed, and corrective actions are taken to change operations and modify the nature of services delivered. Charts monitor the accuracy of customers' accounts and are updated weekly to show trends. Operating procedures are reviewed and corrected to bring deficiencies into an acceptable range.
Secondly, Employee involvement in setting the employee incentive and payment policy in ACLEDA Bank. ACLEDA Bank can involve some management at certain level in developing the payment incentive policy, but it can't involve all employees of all levels. When it becomes the policy for implementing in the bank, the level of satisfaction is not high as expected by the top management and some of the employees.
III- Vision, Mission and Quality Policy Statements
1- Vision:
In 10 years time, ACLEDA Bank will be the best service quality provider and the most trusted bank in Cambodia.
2- Mission:
The mission of ACLEDA Bank is to continuously improve its products and services to meet its customers' needs, allowing it to prosper as a bank and to maximize its shareholders (the owners of the bank) value.
3- Quality Policy Statements:
In ten years time, ACLEDA Bank will be the best quality service provider and the most trusted bank with its mission is to continue to improve its products and services quality to meet its customers' needs, allowing ACLEDA Bank to prosper as a bank and to maximize its shareholders value.
- Quality first and quantity is next.
- Customers' complaints must be responding as soon as possible.
- Care both internal and external market.
- Customer is our king.
- Customers are our consultants.
- Continuously improving our services and products quality is everybody job in ACLEDA Bank.
- Customers' services are everybody job in ACLEDA Bank.
- Customers are always the first.
- Place customers before us.
IV- Evaluation of the current role of Senior Managers in ACLEDA Bank
1- The General Manager
He manages his relationship with the Board of Directors to ensure a common understanding by Board members as to the critical success factors and key operating constraints, which affect ACLEDA, including such elements as:
q Business culture
q Regulatory environment
q Target market
q Product range
q Communications and logistics issues unique to Cambodia
q Systems and controls
q Short and long term objectives
q Liquidity and funding needs
q Credit and other policies
q Others.
The General Manager makes recommendations and provides sufficient information to the Board to allow Board members to provide assistance and support to raise capital funds from international sources in the form of additional equity, subordinated loans, or other appropriate instruments.
The General Manager makes presentations and provides to the Board for their review at semi-annual Board meetings the following:
q The strategic plan
q The annual business plan
q Financial statements
q From time to time, appointments to the senior management team, specifically the Managers of the Finance Department, Human Resources and Logistics Department, Credit Control Department, and Marketing and External Affairs Department
q Annual proposal for senior management compensation.
The General Manager takes the lead in coordinating with regulators to obtain permission for ACLEDA to offer new products and services. He has regular contact with outside legal counsel to monitor regulatory and legal developments and their impact on ACLEDA. He is to take an active role with the Bankers Association in order to raise the public profile of ACLEDA and to gain access to competitive information. The General Manager will arrange for inter-bank credit lines.
2- Finance Manager
The Finance Manager is responsible for developing new liability and treasury products and for ensuring that accounting and operations controls are adequate to support new product introduction. He is responsible for ensuring compliance with all regulatory ratios and requirements and serves as the chief compliance officer of ACLEDA. He is responsible for overseeing the annual external audit of ACLEDA as well as for the publication of the institution’s annual and six-month financial statements. He ensures that there are prudent financial and accounting policies and procedures in place as well as adequate systems to support, monitor, and control the business activities of ACLEDA in Head Office and across all Branches nation wide. He supports the General Manager in long term financial planning and in arranging additional funding from external sources.
3- Treasury Manager
q The Treasury Manager has full and primary responsibility for ACLEDA Bank’s cash handling and management, including delivery of cash to Branches and District Offices to fund lending activities. In addition, Treasury Manager is responsible for collecting payments due to ACLEDA from donor contracts. He develops over time deposit taking, foreign exchange, funds transfer, and other products. The treasury dealing activities will report directly to the General Manager, so as to ensure clear segregation of duties. Treasury settlements will remain within the Finance Department as a control function. The Treasury manager manages and controls the cash handling activities of ACLEDA, including:
q Delivery of cash to Branches and other recipients
q Receipt of sums paid in cash
q Physical security over cash
q Recording of transactions
q End of day balancing.
q Prepare cash flow forecasts to ensure there is adequate cash on hand in Branches and Head Office.
q Collect payments due to ACLEDA from donor contracts, including:
q Receipt of payments
q Recording of transactions
q Follow up of late payments.
q Preparing a schedule of payments due from each donor contract.
Arrange payment of interest expense in connection with subordinated loans or other borrowed funds.
This will include confirmation of pays/receives, investigations, recording transactions, reconciliations, and funds transfer. Manage a formal Treasury Dealing and established reporting directly to the General Manager of ACLEDA, provide support to the Asset-Liability Management Committee, including:
q Preparation of reports to be used by the Committee
q Design and development of treasury products.
q The Treasury Manager is responsible for the development of the treasury function, including:
q Development of new products such as foreign exchange dealing, money market investments, funds transfer, deposit products, and others
q Development of policies, procedures, and controls related to the treasury function
q Development of technical expertise in all aspects of treasury.
q The Treasury Manager is Chairman of the Asset and Liability Management Committee and is responsible for supervising the following:
q Policy making, including liquidity management, interest rate, exchange rate, gapping (currency, maturity), investment, Branch funding allocation, and others
q Rate setting, specifically interest and exchange rates
q Monitoring key asset-liability ratios and data and market conditions
q Approval of new liability and treasury products
q As the treasury dealing function is developed, monitoring the performance of FX and money market dealing activities and setting and monitoring dealing limits.
The Treasury Manager is involved in all liquidity management decisions and is responsible for developing a funding strategy for Branches.
4- Human Resource and Credit Manager
He reports to the General Manager and acts as the chief credit officer of ACLEDA. He acts as the primary credit quality control point for ACLEDA and ensures that prudent credit policies, procedures, and controls are being used in a consistent manner in all Branches and Head Office. In this capacity:
q The Manager is responsible for preparing and revising credit policy, and for monitoring compliance with credit policy;
q The Manager monitors internal audit findings related to credit control;
q The Manager acts as Chairman of the Credit Committee and participates in all decisions of Credit Committee, including the approval of large exposures;
q The Manager provides credit expertise to Branches in respect of problem loan management.
5- Marketing Manager
The Marketing Department Manager reports to the General Manager and is responsible for supporting the business development activities of the Branches as well as for ensuring that ACLEDA’s business development and lending productivity goals are met.
V- ACLEDA Bank Code of Ethics
The code of ethics of ACLEDA Bank consists of five chapters with twenty-five articles which states (1) the Goal, that is to guarantee discipline, order, and set standardized guidelines for employees' incentive and supports, and manage the human resources in accordance to the labor law and to guarantee the benefit of the stakeholders of ACLEDA Bank; (2) Working conditions: conditions for employment and recruitment, rule for working practice, medical check requirements, working hours, holidays, special holidays, paid sick leave, dependent allowance, various allowances, leave application, rule on company's assets using, office use, discipline in working place; (3) Punishment and employees' rights: evaluation and rewards, rule of punishment, contract termination, employees' rights to protect themselves; (4) Security and Sanitation: sanitation in the working place, retirement, pension fund, disability and death; (5) Ending: the effective date of the code of ethics. Because of the well representation of the code of ethics, ACLEDA Bank can manage its resources with minimized risks since code of ethics guarantee standardized the implementation of the policies, discipline among staff of all levels, effective and efficient communication for both upstream and down stream, lack of bureaucracy, and taking good care of both internal and external customers of ACLEDA Bank.
VI- A Strategic Quality Plan for ACLEDA Bank
ACLEDA Bank has developed their five-year strategic planning annually. The strategic plan of ACLEDA Bank is a bottom up approach where by all the branches give the primary input to the strategic plan. ACLEDA bank strictly follows the seven basic steps to strategic quality planning. The process starts with the principle that quality and customer satisfaction are the center of the bank's future. It brings together all the key stakeholders.
1- Customer Needs- the first step is to discover the future needs of the customers. Who will they be? What products and services they require? Will the existing customers be change? How can we retain them? What will they want? How can ACLEDA bank manage to meet and exceed expectations?
2- Customer Positioning- By the year 2002, ACLEDA Bank has the average number of active client base of 82,000 persons. Of this numbers, how many of them ACLEDA Bank needs to retain. How is ACLEDA Bank going to retain the customers? How many more ACLEDA bank need to expand to meet their maximizing shareholder value (return on equity). How ACLEDA bank going to improve the service and products to maintain their existing customers and to attract new customers?
3- Predict the Future- By noting that the rate of exchange is continuously increasing. The planners of ACLEDA bank always look into their crystal ball to predict future conditions that will effect ACLEDA Bank products and services. Demographic, economic forecasts, and technical assessment or projections are tools that help predict the future.
4- Gap Analysis- The planners of ACLEDA bank always identify the gap between the current state and future state of the bank. For example: looking into the current year end loan portfolios to plan for the future
5- growth of the loan portfolios. An analysis of the core values and concepts is excellent technique for pinpointing the gaps.
6- Closing the Gap- At this level, ACLEDA Bank planners can develop the plan to close the gap by establishing goals and responsibilities. All
7- stakeholders should be included in the development of the plan. For example: ACLEDA Bank planners always include the branch managers in the plan development.
8- Alignment- The planners of ACLEDA Bank always make sure that the plan aligned with the mission, vision, and core values and concepts of ACLEDA Bank. For example: the speed, size of growth of loan outstanding, quick and convenience service for the customers.
9- Implementation- The relevant departments and branches allocate resources to collect data, design changes, and overcoming resistance to change, monitoring activity to ensure that progress is being made.
The planning team of ACLEDA bank meets quarterly to assess the progress and take any corrective action if needed. Normally the improvement of the plan is done annually by the planning team including the implementers from the provincial branches (Branch managers).
VII- Customer Satisfaction Questionnaire specifically designed for the bank
To be inline with ACLEDA Bank vision, mission, and goals of becoming the best service provider and the most trusted bank in Cambodia, ACLEDA Bank has established complaint boxes and placed them in all offices and branches of ACLEDA Bank. Customers of ACLEDA Bank can take a very quick not by filling in the complaint sheet and placed in either boxes. The boxes will be checked daily by the information service officer. He/ she will report daily to the headquarters and the headquarters will take action immediately on each complaint (Please refer to the annex I for the questionnaire designed for the bank).
VIII- Evaluation of ACLEDA Bank's present Performance Appraisal System, Recognition and Reward System, and Decision- Making Methods.
The performance appraisal system of ACLEDA bank is meant to identify, measure, and the management of human performance in the organization. It is used to evaluate of an employee's current or past performance relative to his or her performance standards. For example: a standard performance for a credit officer is that (1) his or her loan portfolio at risk (PAR) should not be higher that 10%. (2) His/her loan disbursement should be at least Riel 40 Million per month and (3) with the loan written off should not be higher than 2%. If they can perform according to this standard, he/she will be promoted one step. The purpose is to improve performance, and to provide a basis for promotion and demotion, salary increases, counseling, needs for position changes, etc. This performance appraisal system recognized those who perform well or not so well and need to retrain or to upgrade to catch up with the others in the organization or to see and recognize clearly those who could not perform at all according to the standard. ACLEDA Bank used both and in combination of methods of narrative form and the management By Objectives
(MBO) to appraise. ACLEDA Bank use both group and individual reward system for those branch and individual who can perform at the reward level. For the individual, he/she will be promoted more than two steps if there total score started from 302-400. (the scores are given based on the standard above: taking the same example of the credit officer, if he/she performed far poorer than the standard, he/she will obtain 0-149 and he/she is subjected to demote; if he/she perform poorer than the standard, he/she will be remained with the same step for another year; if he/she performs at the standard or a little bit above the standard, he/she will obtain 200 scores and will be promoted with one step (salary will be 5% increased); if he/she performs higher than the standard, he/she will obtain 201-300 scores, he/she will promote with two steps (salary will be increased with 10%); and if he/she performs much higher than the standard, he/she will obtain 301-400 scores and he/she will be promoted with three steps (his/her salary will be increased with up to 30%). As for group rewards are for those branches that can make three thins: (1) the return on equity is above 20% (any thing is above 20% will be shared in proportion to the individual salary but not more than two month of the total salary in the year, (2) those branches must meet their productivity plan (annually and it is subject to the review of the reward committee), and (3) write off rate should not higher than 5%.
Because ACLEDA Bank has good performance appraisal system, recognition and reward system, it can maintain good staff/employees and can continue to train and develop them so that they can continue to work much more effectively and productively and to enhance and guarantee long term bank shareholder as well as stakeholder value.
As for decision making in the bank, ACLEDA Bank understood that making poor decision is one of the deadly threats to the success of the bank and to one's career. People fail because they act haphazardly without regard to the values and goals of the organization so ACLEDA bank uses the following methods in decision making.
1- Non-decision
2- Unilateral decision
3- Handclap decision
4- Minority-rule decision
5- Majority rule decision
6- Consensus decision
The Bank manages to use either method number 1, 2, 3, 4, 5, or 6 base on the real situation. For example: Some decision is too tight take, the bank doesn't just take it. The bank chooses (1) non-decision and hold it for another discussion so that all parties to the decision making can think more and decide later. Sometimes there are a lot of work to be done to meet the report requirement of the National Bank of Cambodia and the weekend is overlapping with Saturday, then the management discusses with the related staff (four five of them) and asks them if they could work extra day (Saturday) and will be compensate leave if they agree they just handclap.
IX- Evaluation of the use of the Juaran's Triology by the organization.
The Juaran's Triology has three components: planning, control, and improvement.
1- Plan
Planning and decision-making determining the organization's goal and decision how best to achieve them, defining goals for future organizational performance and deciding on the tasks and use of resources needed to attain them.
Senior managers of ACLEDA Bank defined a specific plan that
- Within two years time of 2002-2004, ACLEDA Specialized Bank will be transformed a full-fledge commercial bank.
- ACLEDA Bank will become the leading bank in the field of microfinance working in both urban and rural areas in Cambodia from 2002-2003.
- ACLEDA Bank will attract funding on commercial terms by raising equity, by having access to commercial bank loans and by developing domestic savings services in the second half of 2002-2003.
- ACLEDA Bank will work with the lower segment of the market (Small and Micro enterprises and plan one credit officer will work with 400 customers with total average loan outstanding per annum of US$ 200,000.
- ACLEDA Bank will provide wide range of financial services including overdrafts, foreign exchange, current accounts and most importantly savings deposits from the last quarter of 2002. It is expected that there will be a growing demand for these additional financial services and that a large reservoir of domestic savings is currently held outside the formal banking system. And these products and services will be developed in response to the needs of the customers. The team of products and services development will do the products and services development.
2- Control
Controlling means monitoring employees' activities, determining whether the organization is on target toward its goals and making correction as necessary, monitoring and correcting on going activities to facilitate goal attainment. The managers of the bank evaluate the actual operating performance and compare the actual performance to the ACLEDA Bank goals and take actions on the difference if the project team and each department and the project- supported team involved with and implement the transformation plan to make sure that the teams are moving toward the organization goals of becoming a bank. The manager monitors and reviews to see if the schedule activities and outputs put forward if the bank can meet the goals of becoming the leading bank in the field of microfinance, attract more loan fund from commercial banks and depositors, and the transformed bank has full financial products for the customers or not. What should be improved to meet the goals? What kind of training is necessary for which group of employees and for how long? Give them clear instruction and train them properly so that they can monitor and correct themselves. Properly check if their activities and outputs planned for a specific period are really done as stated, e.g. daily activities, weekly, monthly, quarterly, and biannually activities and outputs are closed to what have been planned. For those who are not closed to the plan or away from plan, they will be corrected immediately.
ACLEDA Bank management understands clearly that transformation might not work if the employees don't understand and not fully participate. Making ACLEDA Bank, the leading bank in the field of microfinance is even more difficult if the employees don't participate and work in a very creative manner. Attracting fund from commercial banks and financial institutions is dependent on the performance of the bank (the high return of the bank resulted from the contribution of the professional work of the employees and their high productivity). Full banking services, too, are dependent on the readiness of the system and the absorbing capacity plus commitment of the employees cope up with the new bank products.
3- Improvement
In order to guarantee continuous improvement of all services (transfer, foreign exchange, cash payment services) and products (loan to small and micro enterprises, termed deposits and savings, overdraft) in ACLEDA Bank, Quality Council composed of CEO, senior managers of functional areas (department managers of marketing, treasury, credit, finance), coordinator (legal team leader), and employee representative was established to develop with the inputs from all personnel; the strategic long-term plan with goals and annual quality improvement program with objectives; create total education and training plan; determine and continually monitor the cost of poor products and service quality; determine the performance measure for the bank approve those for the functional areas; establish multifunctional project and departmental or work group teams and monitor their progress. Improvement and learning were focused in ACLEDA and, they are included new and improved products/services enhancing value to the customers; look into the new opportunities; reduce errors, defects, waste and related costs; responsiveness and cycle time performance; productivity and effectiveness in the use of resources; the bank performance in terms of its public responsibilities. All those improvements need to be embedded that is part of the daily work, seek to eliminate problems at source, and driven by opportunity to do better. Because of these activities of quality council, improvement to all products and services of ACLEDA bank can be done continuously and in timely response to the customers' needs and complaints.
X- Evaluation of the customer/supplier relationship in terms of inspection, training, team approach and recognition.
In customer/ supplier relationship, ACLEDA Bank has a stance on long-term commitment, trust, and shared vision and the whole organization preaches a family-type relationship, where each party preserves their identity and independence.
Inspection
In terms of inspection with its goal s to eliminate, substantially reduce, or automate the inspection activity. Four phases are involved: (1) 100% inspection, (2) sampling, (3) audit, and (4) identity check.
Training
Normally the training conduct by both management and credit officers of ACLEDA Bank and at both ACLEDA Bank premise and the community where by the customers and ACLEDA Bank officers can mutually discuss on what both sides want in order to meet both side agreement. For example: credit information, interest rate, loan repayment, loan contract, loan security document, penalty, requirement from the customers for loan application. As from the supplier of ACLEA Bank, we have specific example: ACLEDA Bank purchase the powerful software from the off-shore company (supplier). Both parties work together to understand the both side needs so that the training could match to the needs of the party to the training (they train each other). This training is viewed as an investment, not an expense.
Team Approach
For the customers, ACLEDA Bank includes them at the early stage by conducting the customer survey to find out their needs so that the bank product development team can design the products and services according to the wish of the customers. After the products/services get designed they are tested with the customers and those services/products can be changed (upgraded0 at the request of the customers. as for the supplier, ACLEDA bank team up with them from the beginning to avoid disagreement at the level of products/service supply point.
Recognition
For the customers who perform well in terms of good loan repayment (on time repayment without delay), they can have quick access to the second loan (maximum two days time, normally it take the customers three days to have access to a loan from ACLEDA Bank), or they can have access to the other loan product for instance to small business loan or small-scale industry loan with less interest rate.
As for the suppliers, if they become reliable source of supplies, ACLEDA bank treat them the first choice supplier and give priority in terms of supply (with the same price ACLEDA Bank will choose the reliable supplier) since ACLEDA bank did not have newsletter it cannot post in the news. ACLEDA Bank uses and keep these practices to maintain good relation with all good customers and reliable suppliers.
References
- Total Quality Management, International and Second Edition in 1999, by Dale H. Besterfield, the Professor Emeritus, Southern Illinois University; Carol Besterfield-Michna; Glen H. Besterfield, Associate Professor, University of South Florida; Mary Besterfield-Sacre, Assistant Professor, University of Texas at El Paso.
- Handout provided by Lecturer Dr. VVR Seshu Babu.
- ACLEDA Bank documents including the organizational chart.
