Many banks and financial services firms have a far less
clear picture of their business, and the factors that will ensure
their future success, than they imagine.
Business intelligence software firm Actuate has published a
report authored by Bernard Marr, a world expert in Strategic
Performance Management and research fellow at the Cranfield School
of Management, which reveals the banks’ shortcomings.
The report,
‘Managing Strategic Performance in Banks and
Financial Services Firms; From Going through the Motions to Best
Practice’, is a comprehensive study on strategic performance
management in the financial services industry.
It takes an in-depth look at 15 of the world's leading banks and
financial services firms and considers their approaches to
performance management to determine where firms are going
wrong.
At each company, between two and eight different principals,
from managing director to chief operating officer and chief
executive officer, were interviewed at length about their
performance management strategies.
The report shows that many banks have been lulled into a false
sense of security through over-reliance on historical financial
information as their guide.
They are failing to measure and manage the likely drivers of
future performance - such as reputation, talent, customer
relationships and organisational culture.
Distracted by irrelevant and misleading performance indicators,
or worse, failing to observe any of these indicators at all
(despite being at pains to gather the data) organisations are
selling themselves short.
They are charging ahead with new business strategies, says the
report, without bringing the rest of the business with them, or
ensuring that every part of the firm is aligned with its current
goals.
Bernard Marr said, “Despite being overrun with supposedly
valuable performance data, many organisations appear to be plodding
on regardless of the results.
"Already bloated performance management systems are being
further obscured by compliance-related measurements, even though
these might have little bearing on the future health of the
business, as measured by revenues, profit margins, competitive
positioning and customer perception,” he said.
Download the report >>
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