TO: Tri-Cities Bank; Board of Directors
FROM: Chris Billings; SD President
DATE: April 11, 2013
SUBJECT: BSC Performance Measurement
I have proposed a plan to get what’s best out of our wonderful employees and make Tri-Cities Bank the most desirable bank to host customer’s deposits. It will increase financial performance from the bottom, up. The program is called the Balanced Scorecard (BSC). It works by using four business perspectives and lead/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 PERSPECTIVE| CUTOMER PERSPECTIVE| INTERNAL BUSINESS PERSPECTIVE| LEARNING & GROWTH PERSPECTIVE| Outstanding loan balances| Customer satisfaction| Customer retention| Employee training hours| Deposit balances| Thank-you calls/cards| New Products introduced| Employee retention| Non-Interest Income| | Referrals| New loans created|
| | Cross-sales| Employee turnover|
| | Number of products per customer| |
| | Sales calls to potential customers| |
| | Number of new customers| |
| | New accounts| |
Why each measure placed in its particular perspective? Here is some criteria: Financial Perspective includes the financial objectives of the company Customer Perspective includes ways customers view the company Internal Business Perspective includes actions that must be improved or implemented to improve bothe financial and customer perspective. Learning and Growth Perspective includes ways to craft employees and internal structure to create a better business environment.
CAUSE & EFFECT CHAINS
LEARNING & GROWTH INTERNAL BUSINESS CUSTOMER FINANCIAL Employee Training Hours Sales to customers Customer Satisfaction Decreased...