Solutions – Level 3
Integrated Performance Management
Extraordinary time and expense goes into the annual planning and budgeting cycle, yet many high performance banks find their plans and budgets of little value when organizational changes invalidate the numbers. Some of the challenges include:
- History-based planning with little regard for industry and market considerations
- Spreadsheet-based planning that requires significant management time and expense and is prone to high error rates
- Defining objectives that are not aligned with strategy and do not consider other Line of Business objectives
- How acquisitions and branch openings/closings impact budgets
New planning and forecasting tools employ drivers – process and outcome metrics – as the basis for quickly developing new forecasts and budgets, if desired, to reflect change. Establishing a single information repository and integrating business intelligence and performance management functionality provides the foundation for a low cost, high performance technology platform and the basis for competitive advantage. Considerations include:
| Customer | Customer attrition rates – net gains and losses – can provide a basis for goal setting and rewards programs. |
| Product | Product penetration rates by demographic segment provide information to support product adjustments and/or target marketing campaigns. |
| Branch | When Branch Managers have access to business drivers for customers, products and associates, periodic plan adjustments are fast and intuitive, enabling reforecasting that reflects real business expectations. |
| Associate | If you measure it, you can manage it. Associate satisfaction and productivity are rarely measured and even more rarely used as considerations for targeted training and rewards/recognition programs. |
| Market | Demographic data has become more readily available, but is rarely integrated into planning processes. Using geographic demographics to plan target marketing and branch expansion programs can be very productive. |
| Industry | FDIC and NCUA data is readily available, but is rarely imported and employed in competitive analyses. |
Employing process and outcome drivers to quickly develop scenarios and forecasts is best practice with high performance organizations.
Call 800-533-7271, or e-mail info@businintel.com, to learn more about BI’s Integrated Performance Management.