The document discusses strategies for banks to transition from traditional banking to diversified financial services companies. It outlines goals such as increasing revenue from fee-based products, cross-selling to existing customers, and providing consistent service across channels. The balanced scorecard approach is presented as a way to align business units, link strategy to performance management, and clarify roles. A case study of a bank that implemented the balanced scorecard is described.
1. Creating the Strategy Focused Bank A Discussion Document Jonathan Chocqueel-Mangan February 2003 t : m tyler mangan clear thinking: decisive action
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6. The Balanced Scorecard identifies individual strategic themes which define the bank’s overall strategy The BSC articulates a business’ unique set of hypotheses about what drives value creation across these dimensions Sample Banking Strategic Themes Product Development Focus on developing and bundling innovative & tailored financial products and services. Marketing / Sales Focus on relations with customers to build the value proposition (e.g., cross-sell services). Risk Management Rapidly approve loans while maintaining the highest level of credit quality. Manage enterprise-wide risk. Customer Service Offer seamless customer service across all channels: branch, call center, and internet. “ Customized Financial Solutions” “ One-to-One Marketing” “ Effectively Manage Risk” “ Provide Seamless Customer Service” Operations Focus on productivity management, operating performance, and improving the efficiency ratio. “ Enhance Productivity”
9. . . . and the corresponding Strategy Map Sustainable profit growth Revenue growth in Key Segments Achi e ve s trateg i c c ost base Streamline and optimise business processes Bala n ce growth and r isk Risk and capital management Enhance productivity through lowering cost to serve “ Provide me with good value and innovative solutions” “ Be my valued, Trusted Financial Adviser / Provider” “ Provide me with consistent, personalised, easy, and convenient service” Deliver Propositions to meet existing and future customer needs Understand Customer needs Execute right delivery experience for each proposition Enable delivery channels to provide high quality, differentiated services Provide Chann e l c la r ity internally and externally Migrate routine transactions to cost efficient channels Deliver reliable, easy to use SVC information Exploit technology driven by the business needs Modernise technology and communication cap a bili t y Deliver performance management systems that recognise and reward high performance Enable achievement of personal career goals in line with business need Create an open and supportive culture where staff are entrusted and empowered Establish organisation skills in coaching, mentoring, selling and relationship management
16. We can bring examples from a wide range of blue chip clients
17. For more information contact Jonathan Chocqueel-Mangan tel(m): 07767 498411 tel(o/f): 01737 226857 email: [email_address] www.tylermangan.com t : m tyler mangan clear thinking:decisive action Helping clients create adaptive organisations
Notas do Editor
With a plan in place, and a simple process for monitoring progress, the next stage is to identify actions. Closing the gaps with ‘internal projects’ is not new – but doing it in such a way that takes account of the scarcity of resources and aligns them with clear goals, clarifies accountability, and potentially links projects to budgeting and planning processes may be. With your strategy map in place, projects that don’t support key objectives should be shelved or delayed. And if you can’t bring yourself to do that, then you may have to ask if you have the right objectives.
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