- June 15, 2020
The United Services Automobile Association
TheUnited Services Automobile Association
UnitedServices Automobile Association is a mother insurance company. Itconsists of current and former military officers and NCO’s who havecarried out policies. Through this, they insure each othersimultaneously as a group. USAA was started in the year 1992 by agroup of army officers who aimed at protecting each other when theyare not in a position to protect themselves and their propertiessince they are considered a high-risk group. USAA was formed toserve armed forces members and those who served in the United StatesArmed Forces. USAA is a direct marketing innovator and most of thebusinesses were carried out through emails and telephoneconversations and later advance to Internet sales and services. Thefirm provides a broad range of personal property and casualtyinsurance, including vehicle, renters, homeowners, umbrella insurancepolicies and valuable personal resources. It also extends toproviding policies for whole and long-term life insurance andannuities. However, USAAas any other company faces challenges in customer relations andsystem failures through its operation.
USAAstarted offering homeowners and life insurance in the 90’s alsobanking and brokerage services. Award and Market best`s rating iswhat enabled USAA to develop a sustainable and competitive advantagein its low-cost structure, a high retention of customers andefficient use of technology and competence to carry out proficientclient services. USAA also offers dental, vision and Medicare. Also,the company provides investment solutions including individualretirement accounts, mutual funds, rollovers and transfers, 529college saving plans, youth investing products, managed portfolios,stocks, bonds, and exchange- traded funds. The firm further offersretirement planning, financial planning, wealth management, trustservices and real estate agency services.
USAAcustomers have lately reported of poor customer care services andsystem failure (Customer Service Problems, 2016). A 12 years customerreported of poor communication between him and the customer caredepartment, which forced him to wait for fifteen hours to get help. The case on poor customer relations happened when the customer`s ATMcard failed to withdraw money earlier on and still no transactionwent through. He decided to contact customer care, and he ends uphaving his call hung up or disconnected. Some customers havecomplained about issues concerning their accounts. They reportedhaving no access to their account information and no deposits goingthrough. The miscommunication experienced by the bank customers arecreating fears and causing the clients to question the safety oftheir money. Some clients threaten to close their accounts with USAAsince the company is expressing irresponsibility in informing theircustomers on the increasing account issues. Poor communication by thebank raises doubts among the customers, which may lead to the firmmaking losses and losing their clients (Carpenter, M., 2016).
USAAaims at becoming one of the technological intensive firmsinternationally. The bank made this choice to help solve the problemsthe company is facing. The company uses its database to keep thecustomers updated, to find ways to reduce cost claim, which helpsthem offer a waiver to customers on repair services. USAA hasinvested on customer remote deposit capture using a scanningtechnology. The bank has developed an app used by the iPhone wherethe customer can take the back and front images of their checks andsubmit them online. USAA leads internationally in mobile banking.Their clients can access and execute banking, investments, stocktrading and insurance application through their phones.
USAAis reported to fail on their customer relation (Green,2016).Their employees are said to be rude to the clients, especially thoseunder the customer care department. The customer care agents hung upon their clients or fail to explain on the client`s inquiry duringthe calls. There have been systems failing and bouncing of checks.The technology used in the bank is blamed for bringing up problems,which end up affecting the clients.
Questionfour and five
Kotter’schange model is considered when a company is in need of makingvariations in the firm. Kotter’s change model comprises of eightsteps namely: increased urgency, Build the guiding team, empoweraction, get the right vision, communicate for buy-in, createshort-term wins, do not let up and make it stick. These steps helpimplement changes in a company. The managers are the team leaders tochange in their firm by explaining the reason to take change andmotivate employees to take up change. USAA is in need of change incustomer relation and communication to regain customer trust. Sincethe problem is known, the company manager should mobilize theemployees to focus on achieving the change through a dominant team. All obstacles that may cost the company achieving the goal need to beeliminated or solved to preventing the company from experiencingfailure in change making. The challenge likely to be experiencedthrough this plan is the lack of cooperation from the employees. Ifsome of the employees fail to take up the idea, it may lead tofailure. Therefore, mobilization and teamwork are necessary throughthis plan. To ensure that the change sticks it needs to be includedin the company’s core values (Kotter`s 8-Step Change Model:Implementing Change Powerfully and Successfully, 2016).
Thereshuffling of employees from different departments will help inachieving of change, though it may lead to the delaying of attainingthis goal as they try to learn, it will motivate them to work on thebest achievements. Allowing employees to participate indecision-making is an excellent way to ensure that they keep focusedsince they are not willing to fail their decision (Carpenter, 2016).
Asa manager, I have learned to keep full-time communication with myclients and always being honest to create trust, ensure unity betweenthe employees and proper following of the company rule to achieve thecompany`s goals. I have also learned on applying constant remindingthe employees on the organization culture will help them not to takethem for granted since it may result in the company or businessfailure. I have also learned to ensure that anytime change isachieved it remains as a goal to keep this will help to ensure thechange exists (Carpenter, M., 2016)
USAAfaces the challenge of communication and system failure, which risksthe customer’s trust. The clients are angry because the firm lackshonesty on system failures. The challenges facing USAA shows thatcompanies should be transparent on the happenings to prevent customerloss. Employees should respect organization cultures and keep theirfocus on better customer relations. The act of a company being honestwill help maintain the client’s trust and give them the motivationto get services from the firm. So as to have a successful business,one must learn to plan carefully and build proper foundation it willmake the process of change easier and improve the chances of success.Impatience leads to failure of change projects.
Carpenter,M. (2016). Principles of Management 1.0 | Flat World Education. FlatWorld Knowledge.Retrieved25 November 2016, fromhttp://catalog.flatworldknowledge.com/bookhub/5?e=carpenter-ch08
Green,C. (2016). CustomerService Problems. Communities.usaa.com.Retrieved 28 November 2016, fromhttps://communities.usaa.com/t5/Bank-Services/Customer-Service-Problems/td-p/8947Kotter`s8-Step Change Model: Implementing Change Powerfully and Successfully.(2016). Mindtools.com.Retrieved 28 November 2016, fromhttps://www.mindtools.com/pages/article/newPPM_82.htm