The System Archetypes are highly effective tools for gaining insight into patterns of behaviour,

themselves reflective of the underlying structure of the system being studied. The archetypes can
be applied in two ways - diagnostically and prospectively.
Diagnostically, archetypes help managers recognize patterns of behaviour that are already
present in their organizations. They serve as the means for gaining insight into the underlying
systems structures from which the archetypal behaviour emerges. This is the most common use
of the archetype.
Archetypes are effective tools for beginning to answer the question, “Why do we keep seeing the
same problems recur over time?”
Archetypes are also useful prospectively for planning. As managers formulate the means by
which they expect to accomplish their organizational ends, the archetypes can be applied to test
whether policies and structures under consideration may be altering the organizational structure
in such manner as to produce the archetypal behaviour. If managers find this to be the case, they
can take remedial action before the changes are adopted and embedded in the organization’s
structure.
. They are one of the tools used by managers to capture patterns and construct credible and
consistent hypotheses about the governing forces of the systems using these patterns. We have
used ten different archetypes to analyse this analysis.
Archetype 1: Limits to Growth
This archetype is made up of a reinforcing loop (growth) running into resource constraints causing
a balancing loop. Initially, this balancing loop serves to stabilize and limit growth, and in some
cases, may even lead to the complete collapse of the system. Typically, most managers react to
limits to growth by trying to push harder. When the rate of growth or improvement slows down,
managers compensate by striving even harder. Unfortunately, the more vigorously you push the
familiar levers (e.g., R&D, innovation, promotions, strategic alliances, recruitment of new and
young talent, borrowing, new debt-equity structures, venture capital, mergers and acquisitions, or
new joint ventures), the more strongly the balancing process resists, and the more futile your efforts
become.
In our analysis, the entire banking industry in order to push the limits of growth gave away loans
without having proper checks and measures in place during the competitive period of 2008-15.
Although this resulted in high growth in the short term but in long term resulted in creation of huge
Non-Performing Assets which ultimately slowed down the growth of the industry.
Archetype 2: Shifting the Burden
This archetype basically deals with symptoms, not the actual problem. It deals with a problem
symptom that prompts someone to intervene and solve it. First, they divert attention away from
the real or fundamental source of the problem. Second, easier solutions only worsen the
symptoms; they leave the underlying problem unaltered or even worse.
RBI in 2016 had cautioned ICICI bank regarding the ownership of the Mauritius based entity, first
land holding, but bank continued to defend her CEO, which resulted in a whistleblower complaint.
This situation could have been avoided by dealing with symptoms at the opportune time.

Archetype 3: “Fixes that Backfire”

The central tenet of this archetype is when you apply short term fixes to treat the symptoms instead
of correcting the actual root cause for good then the untended consequences start to set in
ultimately leading to a deterioration of the situation.
ICICI Bank lacked commitment to address the real issue on time. Instead they focused their
resources on working on the symptoms and fixing them which in turn has worsened the situation
for ICICI. This lack of commitment to address the problem led SEBI to look into the matter. SEBI
is scrutinizing from three angles: whether there were any disclosure lapses on the bank’s part; the
board’s role in decisions regarding loans given to the Videocon group; and independent directors’
view on the alleged conflict of interest.
Archetype 4: “Tragedy of the Commons”
A Tragedy of the Commons often involves a catastrophic crash – the destruction or degeneration
of the common resource to replenish itself. When resources are depleted beyond a certain point,
they cannot be replaced. Yet despite the dwindling resources, every one pushes harder to get one’s
share of the shrinking pie. While the issue is still under enquiry, it is to be learnt from this issue
that any person or institution needs to be more attentive and careful with their actions.
Many banks in India are facing the issue of NPA because each of these wanted to take leverage
from the economic growth and gave away loans which are common resources for the banking
industry. This overutilization of the loan process has in effect put the banking industry under
tremendous strain due these loans becoming NPAs.
Archetype 5: “Accidental Adversaries”
This means how groups or people who ought to be or want to be in partnership with each other,
end up bitterly opposed. They get locked up in fierce combat and resentment. The archetype of
accidental adversaries applies to teams working across functions or disciplines.
In our analysis the ICICI bank’s shielding of its CEO was one of the moments when it created
Accidental adversaries amongst the management and the stakeholders. It started with the bank
stakeholders questioning the management for giving a clean chit to the CEO which was followed
by the clarification that Mrs. Chanda Kochhar is on Annual leave and has not actually stepped
down on the aftermath of setting up an independent enquiry. It eventually led to the reputation of
ICICI bank taking a deep dent.

Archetype 6: “Success to the Successful”

This archetype states that given the equal opportunities when two systems are competing with each
other, one system gets better and better and other one gets worse and worse. This archetype consists
of two reinforcing loops which interact in such a way as to create a single reinforcing loop wherein
if one loop increases the other decreases.
In our analysis, competitors such as HDFC Bank gained from loss of reputation of ICICI Bank.
HDFC Bank CEO hopes to increase the market share because its nearest rival, ICICI Bank, is
fighting the allegations of conflict of interest and lack of disclosure. Thereby we can define in this
case that competitors are in a virtuous cycle whereas ICICI Bank finds itself in a vicious spiral.
Archetype 7: “Balancing Process with Delay”
This archetype is based on the principle that in a sluggish system, aggressiveness produces
instability. Either be patient or make the system more responsive. This means the system in which
the response to action is delayed.
The lack of swift response from the ICICI Bank board for the allegations of “quid pro quo” led to
the instability and uncertainty among investors and shareholders. The initial inaction and the
inadequate response on the part of the ICICI bank management fostered negative sentiments
among the shareholders thereby leading to crumbling of the faith that existed between the two
entities. The bank could have managed the whole case in a much better way after the warning
signals of the RBI, given in 2016. The protective strategies adopted in the aftermath of the
revelations proved counterproductive for ICICI bank itself which in turn vindicated this archetype.

Archetype 8: “Growth and Underinvestment”

This archetype states that if there is a genuine potential for growth, one must build capacity in
advance of demand, as a strategy for creating demand. This archetype operates whenever a
company reduces its growth by investing less.
The archetype states that growth and underinvestment go hand in hand. Both the attributes are two
sides of the same coin. In this case, if the credit lending committee would have been a little
stringent in giving the loan, then the situation might not have arisen. On moral and ethical grounds,
it should be foreseen that a financial institution, which is marred by shareholders, can turn turbulent
with an impulse. In such a situation, concerting to the fact that Mrs. Kochhar was the MD, it could
have been a better proposition in going for an impasse. Since nothing as such was catered to, a
major rift was created between the shareholder’s and the management, thus evoking Mrs. Kochhar
into a long drawn annual sabbatical.

Archetype 9: “Escalation”
Two groups or organizations, each see their welfare as dependent on a relative advantage over the
other. Whenever, one side get ahead, the other feels threatened, and acts more aggressively to re-
establish its advantage. This situation, in turn, disturbs the other and makes it more aggressive.
The escalation archetype has its roots in the accidental adversaries’ archetype.
The banking industry in India has become such a competitive market that every player is on the
lookout for grabbing that single opportunity which will push them ahead of the others. Sometime
in the course of achieving this the borders of ethics gets surpassed. This was one of the primary
reasons for overlooking the facts during this period. This aggressiveness in the competitive
approaches led to overlooking of the fact that Mrs. Chanda Kochhar was the part of the same credit
committee which was responsible for approving loan to Videocon which was involved in dealing
with her husband. A bit cautious attitude instead of aggressiveness could have been better to all
the concerned parties.
Archetype 10: “Eroding Goals”
The organization shifts the burden by adopting a short-term solution that essentially compromises
its long-term goals and performance standards. The basis of this archetype is to hold the vision;
do not compromise established standards for short-term gains. The short-term gains identified in
this analysis was achieving commercial targets and individual achievements. This was the main
driving factor in providing loans without intensive fact checking and due diligence. The bank could
have lowered their goals on careful assessment of the situation and aligning the short-term goals
with the long-term ones. This would have ensured that their standards were not compromised,
values were not eroded, and performance standards were maintained.