Chemical Bank
Chemical Bank : Implementing the Balanced Scorecard
Submitted By : Group 12
KUSHAL KISLAY
FT151093
MEHUL JAIN
FT152088
SIDDHARTHA PAUL FT154003
VIVEK KHATTAR
FT154063
JAYANTH SATHEESH FT152025
Background
• Chemical Banking Corporation was performing a radical organizational transformation into a marketfocused and customer-focused organization after the
1991 merger with the Manufacturers Hanover
Corporation.
• Shift its image from a narrow provider of traditional financial services to a broader and innovative provider of superior financial service and advice.
• Micheal Hagerty, head of this division, envisioned
Balanced Scorecard (BSC) as a powerful tool to achieve the organizational and cultural transformation.
Retail Banking in the 1990s: Challenges
Ahead
• Intensely competitive
• Rapid evolving technologies, shrinking spreads, and alternative
Channels were some of the characteristics of the new environment. • Passes from 14,000 banks during the 80´s to 10,000 banks in the
90´s.
• Customer demanding for new investment and insurance product
• Fewer deposit, withdrawal and check-cashing
• Tough for traditional deposit
• Revenue growth slow down due to lower interest rate
• Operating expense increase
In 1994, the New York market division acted as a distributor and referral source for Chemical's mortgages, credit cards, home equity loans and consumer credit products.
• No. 1 market share
• 150,000 accounts
• 24% market share
• Double up net income to $30MB
• Reduction in operating expense
Balanced Scorecard
• BSC concept in mid 1992 by FrancavillaImprove objectives and measure 4 areas
1. Financial
2. Customer
3. Internal business
4. Learning and growth
• Francavilla ask Tony LoFrumento to build Balanced Scorecard for the New York Market Division
• Francavilla divided the senior management group into 4 subgroups, each one responsible for each BSC perspectives
Impact of BSC
Original statement
• Focus on attractive market
• Increase Fee Revenue
• Improve
Submitted By : Group 12
KUSHAL KISLAY
FT151093
MEHUL JAIN
FT152088
SIDDHARTHA PAUL FT154003
VIVEK KHATTAR
FT154063
JAYANTH SATHEESH FT152025
Background
• Chemical Banking Corporation was performing a radical organizational transformation into a marketfocused and customer-focused organization after the
1991 merger with the Manufacturers Hanover
Corporation.
• Shift its image from a narrow provider of traditional financial services to a broader and innovative provider of superior financial service and advice.
• Micheal Hagerty, head of this division, envisioned
Balanced Scorecard (BSC) as a powerful tool to achieve the organizational and cultural transformation.
Retail Banking in the 1990s: Challenges
Ahead
• Intensely competitive
• Rapid evolving technologies, shrinking spreads, and alternative
Channels were some of the characteristics of the new environment. • Passes from 14,000 banks during the 80´s to 10,000 banks in the
90´s.
• Customer demanding for new investment and insurance product
• Fewer deposit, withdrawal and check-cashing
• Tough for traditional deposit
• Revenue growth slow down due to lower interest rate
• Operating expense increase
In 1994, the New York market division acted as a distributor and referral source for Chemical's mortgages, credit cards, home equity loans and consumer credit products.
• No. 1 market share
• 150,000 accounts
• 24% market share
• Double up net income to $30MB
• Reduction in operating expense
Balanced Scorecard
• BSC concept in mid 1992 by FrancavillaImprove objectives and measure 4 areas
1. Financial
2. Customer
3. Internal business
4. Learning and growth
• Francavilla ask Tony LoFrumento to build Balanced Scorecard for the New York Market Division
• Francavilla divided the senior management group into 4 subgroups, each one responsible for each BSC perspectives
Impact of BSC
Original statement
• Focus on attractive market
• Increase Fee Revenue
• Improve