We found we could boil it down to three core strategic themes which aligned well with three of the perspectives of the BBS. The final outcome was learning and more unified organization and a deeper understanding of key business value drivers and activities.
Elopement led the day-to-day functioning of BBS activities, and Norton was retained for consulting support. Given the two cultures, there were inevitable tugs-of-war between them after the merger. Everybody agrees on the overall objectives, but it takes time to align 8, people and make appropriate infrastructure investments and commitments.
Revenue growth was slow uh to lower interest rates and outflows of deposits to nonbinding service providers, such as mutual funds.
The BBS group linked the Revenue Growth and Reduce Risk outcome objectives back to objectives in, respectively, the Customer, Internal, and Learning and Growth perspectives that were the performance drivers of these outcomes see Exhibit 5. Jordan for years had believed that most of the Retail Banks small business accounts were profitable.
We got delayed by gaps in our measurement system. The BBS was well accepted because it was very consistent with our management philosophy to focus on activities, process, and components that, according to our theory of linkages, must be accomplished to produce the outcomes we desire.
Mutual funds were also sold through a branch-based brokerage operation. The process of implementation of the BSC systems proved very successful for the Retail Bank because it allowed managers and overall organization to stay focused on key consumer segments and profitability targets.
We now realized that a necessary condition to produce new sales was for our salespeople to have more customer contacts. To begin to appreciate the value of BBS at Chemical, you have to understand that its primary benefit was to pull together the two management teams. In MayHegiras attended a presentation about the BBS and was convinced that his approach could help create the cultural change he desired at the Retail Bank.
People debated whether to use substitute measures or leave the measures blank until improved data systems could be developed.
This objective emerged from extensive consumer research that the bank had recently conducted. It is an element in a major communications program to 15, individuals.
Exhibit 1 shows summary financial information for New York Markets division in and The scorecard gives us the measures we need to stay focused on performance, while at the same time enabling us to clarify and communicate our vision, and focus our energies for change.
Lee Wilson, chief of staff for the Retail Bank, concurred with this view: Measuring Customer Profitability William Jordan, managing director, had market management responsibility for the consumer and small business activities in New York Markets.
The trend lines were clear. What do you think Bill Gates is buying for all that money? Kaplan prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. He recalled his first impressions of the BBS:Designing a Balanced Scorecard to Measure a Bank's Performance: A Case Study Sabah M.
Al-Najjar (Corresponding author) Department of Business Management, College of Administration and Economics Keywords: Balanced scorecard, Performance management, Performance evaluation, BSC methodology, Iraq 1.
Alex Castle, Joseph Etoo Ndjongo, Seungji Hong, Jordan Natelson, Yutong Wang ACCT Professor Duru April 22, Case Analysis: “Chemical Bank: Implementing the Balanced Scorecard” The restructuring of Chemical Bank with the merger of Chemical Bank and the Manufacturers Hanover Corporation has transformed the %(9).
Chemical Bank: Implementing the Balanced Scorecard case study solution, Chemical Bank: Implementing the Balanced Scorecard case study analysis, Subjects Covered Implementing strategy Management accounting Performance measurement by Robert S.
Kaplan, Norman Klein Source: Harvard Business School 19 p. Thus, in the case of Chemical Bank, the main reasons to use a balanced Scorecard with all these measures are: · You can't manage what you can't measure The only way managers can determine if their organizations are on the right path toward achieving their objectives is by monitoring performance in a discipline and constant manner.
Chemical Bank: Implementing the Balanced Scorecard. MENU. Implementing the Balanced Scorecard case study. Robert S. Kaplan The retail bank division of Chemical Bank faces declining margins. Chamical Bank Case. CHEMICAL BANK CASE Micheal Hagerty, head of this division, envisioned Balanced Scorecard (BSC) as a powerful tool to achieve the organizational and cultural transformation required by the Retail Bank in order to articulate and implement this new vision, mission and strategy across all levels of the organization.Download