This presentation represents a variant of system approach to the implementation of management by objectives and KPI in the bank. Offer for your bank must be based on your business need, the features of the corporate culture and IT infrastructure. Looking forward to meet you for presentation of our comprehensive services, to know out about your needs and then to prepare a proposal.

1. Minsk 2016
Development and implementation of
MBO and KPI systems in a bank

2. We create key decisions and key events
in partnership with our customers.

3. Purpose of KPI system
Decomposition of strategic and tactic goals to the
level of responsibility of individual managers and
staff.
* KPI (Key
Performance
Indicator) –
is a type of
performance
measurement
which evaluates
the success of an
organization or of
a particular
activity.
Operative monitoring of the
productivity and efficiency of the bank.
The system of material stimulation
and non-financial motivation, based
on a culture of aim achievement.
3

4. The composition of the KPI system
• KPI methodology
• Tree of objectives for the bank
• Position profiles
• KPI information system :
o Data acquisition and processing
subsystem
o Performance indicators calculation
subsystem
o Compensation calculation
subsystem
o KPI analysis and monitoring
subsystem
• System roles:
o Methodologist
o Manager
o User
o Administrator
4

5. The composition of the KPI
methodology
• Regulations on material incentives
• Regulation on KPI reporting
• Positions profiles
• Indicators library
• Templates of indicators calculation formulas
5

6. Example. Tree of objectives (fragment)
The sum of
attracted
deposits
The amount
of attracted
deposits
The quality
of the
portfolio
Number of
attracted
clients
The sum of
concluded
contracts
Average daily
balances on
deposits
The dynamics
of credit assets
The quality
of SME
assets
Interest and fee
income of small
and medium
business
Interest and fee
income of big
business
The financial
result of
corporate
business
…
…
…
The
bank's
profit
The financial
result of the
retail business
Bank
executives
level
Business
units
level
Department
level
Local
office
level
Specialist
level

7. Example of position’s profile
(client manager, services for corporate segment)
The group of
competences
Competence Indicator Level
Knowledge
Information
Security
Observance of banking and trade secrets
2Observance of confidentiality
Observance of information security
Bill of exchange
and certificate of
deposit
Options
1Target audience
Functionality
Credit technology
The application process
3
Determination of GSL
Skills and
abilities
Conducting
correspondence
Ability to build suggestions
1
Using the rules of business correspondence and writing etiquette
Using IAMS Skills in the use of IAMS 2
Corporate
competence
Focusing on the
external client
Presentability, the ability to attract people
2
Clarification of customer needs and opportunities
Formal
requirements
Education Any field of education
College
degree
Experience Experience in the banking sector 7

8. Information KPI system
Questionnaires
Data
WarehousePOS
CRM
Accounting
systems
Employees and
managers
Data acquisition
and processing
subsystem
Performance
calculation subsystem
Compensation
calculation
subsystem
Analysis and
KPIs monitoring
subsystem
KPI Methodologist

9. Platforms for automation
Depending on the bank's IT-landscape and objectives
of the project, we propose to consider the options for
KPI system automation platforms:
In collaboration
with IBA Group,
Belarus
In collaboration with
Kertios Consulting,
Russia
In collaboration
with KPI Lab,
Russia 9

10. Our offer
10

11. Integrated project of implementation
and automation for KPI system
Development of
methodology and
position profiles
Trial
measurements
and adjustment of
the system
Automation
Design of KPI
system to be
automated
Phase I Phase II Phase III
It's possible to separate
projects of development and
system automation or make
individual project of setting
KPI system without
automation
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12. Development of methodology
and positions’ profiles
The first phase of the project includes the development of:
• Concept of KPIs’ management system.
• Tree of objectives and Balanced Scorecard (BSC).
• Regulation of monetary incentives for employees.
• Position profiles for managers and specialists (sets of indicators for each
position covered by the system).
• Specifications of indicators (calculation formulas, sources and methods of
obtaining information, the periodicity of the revision, the targets and limit values
for related indicators).
• Individual C&B agreement with the employee.
12

13. Trial measurements
and adjustment of the system
Initially, the system is not automated. The system is
being tested by the available means of information
exchange and processes automation.
The goals to achieve during the system testing:
• Determine the system spread sequence
• Getting the KPIs’ trial measurements
• Correcting individual positions profiles to optimize
system’s performance
• Creating the task list for the system automation
13

14. Designing of automated KPI system
• Collecting, analyzing and
recording business
requirements
• Designing the system
architecture based on the IT
infrastructure and prospects
of development of the system
• The development of technical
specifications for automation
• Recommendations regarding
the choice of automation
platform and vendor for
implementation
Technical task
• List of terms and abbreviations
• Purpose and objectives of the creation of an information system for KPIs management
• The business requirements for KPI management system
– Functional requirements for KPI management system:
– The structure of the subsystems
– Means and methods of information interchange between subsystems
– Integration with external systems
– Scaling features
– Personnel qualification requirements
– Requirements for system reliability and diagnostics
– Security and data protection requirements
– Requirements for the user interface
– Terms of use
– Functional requirements for the subsystems:
• Storage subsystem
• NSI management subsystem
• KPI calculation subsystem
• Subsystem of calculation of the variable part of salary
• Performance management subsystem
• The monitoring subsystem, performance analysis and reporting
• Subsystem data export
• Requirements for technical support
• Requirements for acceptance testing
• Documentation petition

15. Automation
We provide support for the
full cycle of an automation
project:
• Collecting of business
requirements
• Project scope
confirmation
• Schedule monitoring and
confirmation of the
"control points“
• Matching of acceptance
tests techniques and test
cases
It is possible to bind our
remuneration to the project's
success indicators (including
compliance with the schedule
and budget of the project)
Vendor
Bank
Spe-
cifica-
tion Imple-
mentation
Methodology
Project
management
15

16. Project team
Andrey Gusakovsky
Managing partner and founder of
the company "Key decisions".
Certified Management Consultant
(CMC) in accordance to
International Council of
Management Consulting
Institutes (ICMCI).
Serge Mustafaev
Project manager in projects of human
resource management systems
installation, diagnostic of sales,
personnel assessment, changes in the
organizational culture of the company,
audit and optimize the functional and
organizational structure. Extensive
experience in the development and
implementation of incentive systems
based on KPI, MBO and BSC.
Victor Stepanov
Head of IT practice.
Management consultant,
economist, expert in the field
of project approach and
management automation.
Extensive experience in the
field of management
accounting systems, project
management, KPI, ERP, CRM,
PLM, BPMS.
16

17. Next steps
This presentation represents a variant of
system approach to the implementation of
management by objectives and KPI in the
bank.
Offer for your bank must be based on your
business need, the features of the corporate
culture and IT infrastructure.
Looking forward to meet you for
presentation of our comprehensive services,
to know out about your needs and then to
prepare a proposal.
17

18. >350
consulting projects implemented for
Belarusian, Russian and Ukrainian
companies
>200 author’s seminars
and trainings >100 exclusive business
events
Our company
18

19. Company structure
Consulting
department
Department of
Business Events
Business Training
Department
Recruiting
Department
19

20. Key decision - is a combination of our
experience and understanding of the
uniqueness of each business.
- it is more than 20 years of experience in management
consulting
- it is more than 12 800 trained staff
- it is more than 100 stars and business gurus from around the
world
- 7 types of services is the company's staffing
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21. Our customers
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22. г. Минск, пер. Загородный 4-й, д. 58-Б
офис 319
kr@krconsult.org
+375 17 256 67 32
+375 17 256 90 43/44
www.krconsult.org
www.facebook.com/krconsult