The Learning and Growth Perspective - Assignment Example

Question Learning Growth Perspective Internal Business Process Perspective Service Perspective Financial Perspective Employee Training hours New products introduced Customer Satisfaction Outstanding Loan balances Employee Satisfaction Referrals Customer retention Deposit Balances Employee Turnover Cross Sells New Accounts Non – interest income Sales Calls to potential customers Number of new customers New loans created Thank you calls/cards to new and existing customers Number of products per customers Explanation: The learning and growth perspective includes the performance measures which should be fulfilled in order to improve the internal competencies and values (Kaplan and Norton). The employee training hours along with increasing employee satisfaction and reducing employee turnover rate will provide the bank with the opportunity to improve the internal competencies and values. Along with this the internal business process perspective includes the performance measures related to the areas and domains in which the bank should improve the performance and excel in order to achieve the financial goals and targets (Kaplan and Norton). Hence, new products introduction, referrals, cross sells, sales calls, and thank you calls have been categorized as the internal business perspective. Customer satisfaction, retention, new accounts, number of products per customers, and number of new customers have been categorized as the customer perspective as all these measures identify the customers’ perceptions and views. Lastly, the outstanding loans balance, deposits balance, new loans, and the non interest income have been categorized as the performance measures of the financial perspective. Question # 2: Causal Chain 1: Logic of the Causal Chain 1: If the employees will receive training and development in the domain of important job domains and competencies, this in turn will increase the overall employees’ competencies and skills. This on one hand will facilitate the process of improving and enhancing the overall employee satisfaction and on the other hand will improve the overall employee performance. This in turn will facilitate in increasing the number of successful sale calls to new customers along with increasing number of referrals and cross sells. Increasing successful interaction with the new and old customers will result in increasing customer satisfaction along with increasing number of new customers and new accounts. Hence, this will eventually lead to increasing number of loans creation, deposits balances, and other income. Causal Chain 2: Logic of the Causal Chain 2: Increasing hours of employee training and development will result in improving the overall employees’ skills and performance. This will contribute towards the improvement and enhancement of the overall employee satisfaction. As a result the overall employee turnover rate will decrease; because satisfied employees will not leave the job. This in turn will facilitate in the overall process of increasing the number of successful thank you calls and cards to new and existing customers. This increasing interaction with the customers will lead to increasing the customer satisfaction rate and ultimately the overall customers’ retention rate will improve. Hence, these will be more outstanding loan balances and no interest income for the bank. Causal Chain 3: Logic of the Causal Chain 3: Increasing training and development hours in the domain of new product development will lead to increasing the overall employee learning regarding the new product development. This on one hand will improve and enhance the overall employee satisfaction and on the other hand will facilitate in the process of introducing new products and increasing sales calls to the new and existing customers. The new products along with the increasing successful interaction with the new and old customers will result in increasing customer satisfaction and will motivate them to opt for new products hence increasing number of products per customers and at the same time increasing new customers and improving the customers’ retention rate. Hence, this will eventually lead to increasing number of loans creation, deposits balances, outstanding loan balances, and other non interest income. Question # 3: The graph 1 presented below shows the percentage growth in the loans, deposits, and income of the branches of the bank where balanced scorecard was implemented along with the percentage growth in the loans, deposits, and income of the branches of the bank where balanced scorecard was not implemented. It can be clearly inferred from the graph 1 that the branches where balanced scorecard was implemented showed more improvement and growth in the domain of loans, deposits, and other income as compared to the branches where balanced scorecard was not implemented. Graph 1: Comparison of the overall performance of the branches of banks The graph 2 presented below shows the performance and growth of the loans, deposits, and incomes of all individual branches. The branches A to E have implemented the balanced scorecard, whereas the branches F to J have not implemented the balanced scorecard. The graph 2 clearly shows that the branches in which balanced scorecard have been implemented have shown more improvement in the overall performance (except branch E) as compared to the performance of the branches in which balanced scorecard has not been implemented. Graph 2: Comparison of the individual performance of the branches of banks Hence, it can be said that the implementation of the balanced scorecard has been effective and helpful in improving the overall performance of the branches of the bank. Question # 4: The graph 3 presented below shows the comparison of the individual performance of the branches of bank in which balances scorecard has been implemented. It can be seen from the graph that branch A has been able to reap the maximum benefits from the implementation of the balanced scorecard followed by the branch C, B, and D. However the branch E has been able to slightly improve the overall performance. This difference in the performance of the branches is because of the difference in the implementation of the balanced scorecard. Graph 3: Comparison of the individual performance of the branches of bank in which balanced scorecard has been implemented Implementation of Balanced Scorecard: In the four factors which have been responsible for the difference in the implementation of the balanced scorecard are as follow (Albright, Davis, & Hibbets, p. 54-60): 1. Communication: The branches which showed high improvement in the performance had clear communication in order to explain the purpose of the balanced scorecard; on the other hand branches which showed low improvement in the performance had poor communication and explanation regarding the use of the balanced scorecard. 2. Development of the Scorecard: The branches which showed high improvement in the performance developed the scorecard with the help of both, management and employees. On the other hand in the low performing branches the balanced scorecard was developed by the management only. 3. Goals setting and achievement: in the successful branches the goals were set in reasonable manner which were achievable for all employees. On the other hand the other branches came up with goals which were not achievable. 4. Incentives: in the branches which showed high improvement in the performance, there were well defined financial and non financial rewards, as compared to the other branches which had no clear incentives. Conclusion and Recommendations: Hence, it can be concluded that in order to reap maximum benefits from the implementation of the balanced scorecard the management should make sure that the balanced scorecard is implemented in effective and efficient manner with proper communication with the employees, development of the balanced scorecard in harmony with the employees and management, setting realistic and achievable goals, and defining proper incentives (Silverthorne). Works Cited Albright, Tom, Stan Davis, & Aleecia Hibbets. Tri-Cities Community Bank: A Balanced Scorecard Case. Strategic Finance, 83.4 (2001): 54-60 Kaplan, Robert, and David Norton. What is Balanced Scorecard? Boston, MA: Harvard Business School Press, 1996. Silverthorne, Sean. (2008). Executing Strategy with the Balanced Scorecard. Aug. 2008. 22 Jan. 2013. http://www.cbsnews.com/8301-505125_162-31540397/executing-strategy-with-the-balanced-scorecard/?tag=bnetdomain Read More