This action might not be possible to undo. Are you sure you want to continue?
the recent years but it continues to explore ways to improve its performance further. Chris Billings, the new president of TCCB’s southern division (SD) believes that the Balanced Scorecard (BSC) could be used to boost TCCB’s financial performance. The BSC helps an organizational align activities to its vision and strategy, enhance external and internal communications, and evaluate organizational performance in comparison to achievement of strategic goals (“What Is,” n.d.). One of BSC’s major benefits relate to causal relationship mapping from nonfinancial performance measures to key financial measures monitored by TCCB. Nonfinancial measures of TCCB are classified into Learning and Growth Perspective, Internal Business Process Perspective, and Customer Focus Perspective (Stan, 2001).
Categorization of Measures into Balanced Scorecard Perspectives Learning & Growth Perspective * Employee Training Hours * Employee Satisfaction * Employee Turnover Internal Business Perspective * Sales Calls to Potential Customers * Referrals * New products Introduced * Cross-sells * Number of Products per Customer * New Accounts * Number of New Customers Customer Perspective * Customer Satisfaction * Customer Retention * Thank-You Calls/ Cards to New and Existing Customers. Financial Perspective * Outstanding Loan Balances * NoninterestIncome * Deposit Balances * New Loans Created
Thank-You Calls/ Cards to New and Existing Customers. My categorization of measures into the Customer Perspective is based on how customers view TCCB. service. New Accounts. Noninterest-Income. TCCB should identify the areas where resources are required and develop a plan that empowers its employees to fulfill the objectives of other perspectives. The concerns of customers generally fall into cost. New products Introduced. and Cross-sells measures into this perspective. Referrals. My categorization of measures into the Internal Business Perspective is based on considering the areas that TCCB must excel. This is the reason why I categorized Customer Satisfaction. TCCB’s financial objectives must act as the focus of every . TCCB should identify its key market segments and customers. 1992). Employee Satisfaction. Products per Customer. performance. TCCB should invest in people and infrastructure. TCCB must identify processes that should be created or improved so that financial and customer perspectives can be realized. and quality categories (Kaplan & Norton. TCCB must determine how they can add value for customers and tailor their products and services that cater to the specific needs of the customers. My categorization of Outstanding Loan Balances. Deposit Balances. and New Loans Created measures into the Financial Perspective is based on how TCCB appears to Stakeholders. Customer Retention. time. and Number of New Customers measures into this perspective. This is the reason why I placed Sales Calls to Potential Customers.My categorization of Employee Training Hours. and Employee Turnover measures into the Learning & Growth Perspective is based on how TCCB should continue to create and improve value. To achieve the high standards set in the other three perspectives.
they will be well placed to provide high-quality service to the customers. The effectiveness of an organization’s strategy is best measured through its financial performance. Cause and effect chains in the BSC will happen as following: An improvement in learning will cause the internal processes to improve. creating differences in the BSC implementation quality and producing variation in performance between branches A-E. An improvement in the internal processes will cause the customer value to improve. the effectiveness of employee training programs is measured through in-house tests on a range of training topics. while an increase in the successful referral count and crosssells causes noninterest income to increase. If employees of TCCB are trained in customer service. I think Branch A did a good . Therefore. heading towards greater customer satisfaction and higher customer retention (Stan. so if the financial performance of TCCB increases significantly. effectiveness in sales. At TCCB. An increase in employee skills and knowledge will result in cross-sell proposals and high-quality referrals.activity. Every measure that TCCB selects for its BSC should be an integral segment of a causal chain that produces an improved performance on financial objectives. An improvement in the customer value will cause the financial performance to improve. 2001). the nonfinancial perspective measures will act as primary indicators of value addition that will be unmistakably demonstrated by improvement in the financial measures (Stan. and profitability of products. Managers of the five SD branches brought their own individual styles to the BSC implementation process. Current customer base maintenance lays the foundation for an increase in loan and deposit balances. then its strategy would be deemed successful. 2001). knowledge on local bank. if TCCB’s strategy is good.
provide clarity on targets. I think the pilot study on the overall is a success considering the fact that all SD braches A-E. and offered cash incentives as an encouragement to well-performing employees. take . I would suggest that they inform all their employees about why the BSC was being implemented and how it will be implemented. and noninterest income. Branch D promoted growth and helped its employees focus their ideas. Branch C set realistic scorecard measures. Branch C promoted teamwork and made all its employees individually and collectively realize their role in the bigger picture.job in making all its employees understand why the BSC was being implemented. and they made sure that the workload was evenly distributed and the BSC measures were challenging but yet realistic. Branch C focused on employees by taking their feedback and offering encouragement through quarterly parties and earned time-offs. Branch A and Branch B both offered cash incentives to employees who went above and beyond their scorecard expectations. Both Branch D and Branch E allowed their employees to compare their performance with the others. involve employees in the development of the BSC. when compared to last year showed significant improvement in all the key financial indicators (except Branch E’s noninterest income). I would ask them to set challenging yet achievable goals. namely: loan balance. I would recommend ND managers to integrate the four balanced scorecard perspectives. and offer incentives to employees based on performance. provide clarity on organizational goals and overall picture. Branch E however failed to set challenging goals. Branch C however set some unrealistic scorecard measures for its employees. deposit balance. distributed expectations evenly. Both Branch A and Branch B let their employees know how the BSC will be implemented. Just like Branches A and B. involve employees in scorecard development.
d. allow employees to compare their performance with others. Customer.). and subject measures but also between performance outcomes and future result drivers (“The Balances. objective. Internal Business. . The BSC thus translates TCCB’s strategy into Learning and Growth. tie performance to employee growth assessment. and Financial perspectives and strikes the right balance not only between internal. external. and offer incentives to employees based on performance.employee feedback on a regular basis.” n. promote teamwork and growth. distribute workload evenly.
allbusiness. D.tw/news/%5BHarvard%20Business%20Review%20%20January-February%201992%5D%20-%20Kaplan%20&%20Norton%20%20The%20Balanced%20Scorecard%20%20Measures%20That%20Drive%20Pe. (n.d..pdf The Balanced Scorecard. Retrieved June 19. & Norton. (2001).com/accounting/mgmt/balanced-scorecard/ . Tri-Cities Community Bank A BALANCED SCORECARD CASE. R. 2008.References What is the Balanced Scorecard? Retrieved June 19. (1992).balancedscorecard.aspx Stan. 2008. 2008.quickmba.edu. from http://library.tmu. Retrieved June 19. P.com/humanresources/employee-development/814343-1.org/BSCResources/AbouttheBalancedScorecard/ta bid/55/Default. from http://www.). S.html Kaplan. from http://www. The Balanced Scorecard: Measures That Drive Performance. 2008. D. from http://www. Retrieved June 19.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.