Friday, March 1, 2019
Tri-Cities Community Bank Case Study
Tri-Cities Bank MEMORANDUM TO Tri-Cities Bank shape up of Directors FROM Chris Billings SD President DATE April 11, 2013 SUBJECT BSC Performance Measurement I adjudge proposed a plan to nail whats best out of our wondrous employees and make Tri-Cities Bank the roughly desirable bank to host clients makes. It will increase financial performance from the bottom, up. The program is called the fit Scorecard (BSC). It works by using four ancestry perspectives and manoeuver/lag indicators and has several performance measures that fall into one of the four business perspectives.Below is a table that labels which measures I believe would fall into which perspectives for Tri-Cities Bank. FINANCIAL scene CUTOMER sentiment INTERNAL BUSINESS PERSPECTIVE encyclopedism & GROWTH PERSPECTIVE Out rest loan balances Customer satisfaction Customer retention Employee develop hours Deposit balances Thank-you calls/cards New Products introduced Employee retention Non-Interest Income Referral s New loans fabricated Cross-sales Employee turnover frame of products per client sales calls to potential customers Number of upstart customers New accounts why distributively measure placed in its particular perspective? here is some criteria Financial placement includes the financial objectives of the company Customer Perspective includes ways customers view the company Internal Business Perspective includes actions that mustiness be improved or utilise to improve bothe financial and customer perspective. Learning and Growth Perspective includes ways to craft employees and informal structure to create a wear business environment.CAUSE & EFFECT CHAINS LEARNING & GROWTH INTERNAL BUSINESS CUSTOMER FINANCIAL Employee Training Hours Sales to customers Customer Satisfaction Decreased outstanding loans Employee Happiness Number of new customers LEARNING & GROWTH INTERNAL BUSINESS CUSTOMER FINANCIAL Employee belongings Referrals, Cross-sales Customer retention r ate Increase deposit balances New accountsThe experience and effect chains show that begging with learning and growth and internal business comes customer satisfaction and retention and leads to better financial standing for the Bank. Better trained employees make more sales to customers which leads to satisfaction in those customers. Also, the same employees for long periods makes a home feel and will create referrals from existing customers and will create new accounts. The customers will stay and deposit balances will increase. Analysis of BSC in branches Branch A jolly trenchant B effective C effectiveD moderately effective E unavailing Report to the Board of Directors In each branch A-D, the BSC program was implemented as a trail run. Branch A shows to have moderately improve performance as the system was effective. Customer service repp Mary Richards says, The BSC helps clarify our strategy. Branch B also shows to have had a positive effect using the new system. They use it there as a motivational tool to get better at each task. I think the BSC is being used to encourage us to do better. We are rewarded when we improve says Glenda Smalley Teller.Branch Cs implementation of the BSC showed to be effective. They truism it as a way to clarify the goals of the branch and how to get the most out of the entire branch. The scorecard taught us how everyone has a part in achieving branch goals by selling, cross-selling, serving as a communication port, and make customers feel welcome says Mortgage Loan Organizer Debbie Henson. Branch D had a moderately effective result from the trail of the BSC. They saw it as a way of charting growth within the branch. Individual incentives were awarded for better performance.Customer religious service rep Al Taylor stated, For example, we can earn $50 each month if we meet our individual BSC goals. Our branch president is always looking for better ways to reward us for reliable BSC performance Branch E was the only bran ch that didnt seem to get a good grasp on what the BSC has to offer. Participation in developing the scorecards wasnt offered. They didnt see it as a big deal and that tangible rewards arent associated with doing well on the BSC. Loan representative Tim Vines exclaims, Its difficult to get an idea of our strategy from management.Maybe what I do helps (or does not help) us come upon our strategic goals. Recommendations Branch E may not have implemented the BSC properly which could have made the program ineffective for them. To avoid this paradox again, each branch needs to clearly state the objective of the program. from each one employee must be able to participate in developing the scorecard. each(prenominal) goal must be reasonable but also challenging. solely of this is up to the branch manager and their job of adding the BSC to his/her branch.