2015′s First 15 – #8 – Banking Performance Management

Performance management is always a tough one. There are so many numbers. There are so many models. When we add data visualization and the neverending discussion about Big Data to the mix, it’s enough to make your head spin, isn’t it? Mine is spinning right now.

http://www.dreamstime.com/stock-photo-to-do-list-concept-post-illustration-design-image29879760Instead of going into which metrics you should be tracking, I’d like to highlight several items that you should have on your to-do list, which will eventually make it to your ta-da list. By the way, I’m not a big fan of lists, but the home office makes me create them.

Financial versus non-financial

Financial metrics are certainly important. This is especially true in a financial services company. However, we can’t neglect metrics about time, quality, and culture.

When it comes to time, measuring and reporting on duration within certain processes is relevant. Also, how many times we were on-time, early, and late is also important. This sort of Pareto analysis gives us an understanding of performance from a different perspective. In terms of quality, institutions often turn to surveys and other forms of input from customers and employees. We like to consider quality in terms of how well are we meeting the requirements of various stakeholders from a marketplace, operational, and financial perspecitve. Finally, measuring culture may be the most imporant aspect of non-financial measurement. However, you cannot neglect the way in which your culture is or is not performing to the standards applied by leadership and the board, and even by customers.

Creating a performance culture

“Creator,” starring Peter O’Toole, is a favorite movie of mine. In it, the protagonist defines love like this: “Love Formula. Add up the number of times that you think about the lady each day. Subtract from the total the number of times you think about yourself each day. If the remainder is more lady, and less yourself, then it’s love.” I suggest we are not thinking about our culture as much as we should be. Moreover, the elements of culture that we need to operationalize, we often neglect to do consciously. You hope that culture is realized. Don’t hope. Create.

http://www.dreamstime.com/royalty-free-stock-image-time-to-do-what-s-right-saying-clock-quote-words-illustrate-moral-choices-positive-features-such-as-image31478236Incentive versus initiative

I’ve often written about incentive versus initiative. When embarking on a performance management project, start with initiative. Get people excited about doing what they ought to do and not necessarily by what they will get out of it. I think you will find that the performance that is ultimately measured will be dramatically different than what you ever imagined.

Over the last couple of months, we’ve talked about process, people, place, and performance. How and where are you addressing each of these key elements of your organization? Let us know. We’d love to hear from you.

Reconn Radio: Podcast #12 – Week of 02/24/2014


The Economy, Investment Services & Farewell to Spangler

This week, I discuss the economic items for this week. We also delve into investment services with our special guest, Joel Beck of the The Beck Law Firm. Joel brings a wealth of information on broker/dealers and general considerations in forming an investment business unit for your bank or credit union. You can learn more about Joel on his website, www.thebeckfirm.com, or follow him @brokerdefender. Finally, we say farewell to Harold Ramis. He has, indeed, crossed the stream. May he rest in peace.


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