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Development and implementation of MBO and KPI systems in a bank

This presentation represents a variant of system approach to the implementation of management by objectives and KPI in the bank. Offer for your bank must be based on your business need, the features of the corporate culture and IT infrastructure. Looking forward to meet you for presentation of our comprehensive services, to know out about your needs and then to prepare a proposal.

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Development and implementation of MBO and KPI systems in a bank

  1. 1. Minsk 2016 Development and implementation of MBO and KPI systems in a bank
  2. 2. We create key decisions and key events in partnership with our customers.
  3. 3. Purpose of KPI system Decomposition of strategic and tactic goals to the level of responsibility of individual managers and staff. * KPI (Key Performance Indicator) – is a type of performance measurement which evaluates the success of an organization or of a particular activity. Operative monitoring of the productivity and efficiency of the bank. The system of material stimulation and non-financial motivation, based on a culture of aim achievement. 3
  4. 4. The composition of the KPI system • KPI methodology • Tree of objectives for the bank • Position profiles • KPI information system : o Data acquisition and processing subsystem o Performance indicators calculation subsystem o Compensation calculation subsystem o KPI analysis and monitoring subsystem • System roles: o Methodologist o Manager o User o Administrator 4
  5. 5. The composition of the KPI methodology • Regulations on material incentives • Regulation on KPI reporting • Positions profiles • Indicators library • Templates of indicators calculation formulas 5
  6. 6. Example. Tree of objectives (fragment) The sum of attracted deposits The amount of attracted deposits The quality of the portfolio Number of attracted clients The sum of concluded contracts Average daily balances on deposits The dynamics of credit assets The quality of SME assets Interest and fee income of small and medium business Interest and fee income of big business The financial result of corporate business … … … The bank's profit The financial result of the retail business Bank executives level Business units level Department level Local office level Specialist level
  7. 7. Example of position’s profile (client manager, services for corporate segment) The group of competences Competence Indicator Level Knowledge Information Security Observance of banking and trade secrets 2Observance of confidentiality Observance of information security Bill of exchange and certificate of deposit Options 1Target audience Functionality Credit technology The application process 3 Determination of GSL Skills and abilities Conducting correspondence Ability to build suggestions 1 Using the rules of business correspondence and writing etiquette Using IAMS Skills in the use of IAMS 2 Corporate competence Focusing on the external client Presentability, the ability to attract people 2 Clarification of customer needs and opportunities Formal requirements Education Any field of education College degree Experience Experience in the banking sector 7
  8. 8. Information KPI system Questionnaires Data WarehousePOS CRM Accounting systems Employees and managers Data acquisition and processing subsystem Performance calculation subsystem Compensation calculation subsystem Analysis and KPIs monitoring subsystem KPI Methodologist
  9. 9. Platforms for automation Depending on the bank's IT-landscape and objectives of the project, we propose to consider the options for KPI system automation platforms: In collaboration with IBA Group, Belarus In collaboration with Kertios Consulting, Russia In collaboration with KPI Lab, Russia 9
  10. 10. Our offer 10
  11. 11. Integrated project of implementation and automation for KPI system Development of methodology and position profiles Trial measurements and adjustment of the system Automation Design of KPI system to be automated Phase I Phase II Phase III It's possible to separate projects of development and system automation or make individual project of setting KPI system without automation 11
  12. 12. Development of methodology and positions’ profiles The first phase of the project includes the development of: • Concept of KPIs’ management system. • Tree of objectives and Balanced Scorecard (BSC). • Regulation of monetary incentives for employees. • Position profiles for managers and specialists (sets of indicators for each position covered by the system). • Specifications of indicators (calculation formulas, sources and methods of obtaining information, the periodicity of the revision, the targets and limit values for related indicators). • Individual C&B agreement with the employee. 12
  13. 13. Trial measurements and adjustment of the system Initially, the system is not automated. The system is being tested by the available means of information exchange and processes automation. The goals to achieve during the system testing: • Determine the system spread sequence • Getting the KPIs’ trial measurements • Correcting individual positions profiles to optimize system’s performance • Creating the task list for the system automation 13
  14. 14. Designing of automated KPI system • Collecting, analyzing and recording business requirements • Designing the system architecture based on the IT infrastructure and prospects of development of the system • The development of technical specifications for automation • Recommendations regarding the choice of automation platform and vendor for implementation Technical task • List of terms and abbreviations • Purpose and objectives of the creation of an information system for KPIs management • The business requirements for KPI management system – Functional requirements for KPI management system: – The structure of the subsystems – Means and methods of information interchange between subsystems – Integration with external systems – Scaling features – Personnel qualification requirements – Requirements for system reliability and diagnostics – Security and data protection requirements – Requirements for the user interface – Terms of use – Functional requirements for the subsystems: • Storage subsystem • NSI management subsystem • KPI calculation subsystem • Subsystem of calculation of the variable part of salary • Performance management subsystem • The monitoring subsystem, performance analysis and reporting • Subsystem data export • Requirements for technical support • Requirements for acceptance testing • Documentation petition
  15. 15. Automation We provide support for the full cycle of an automation project: • Collecting of business requirements • Project scope confirmation • Schedule monitoring and confirmation of the "control points“ • Matching of acceptance tests techniques and test cases It is possible to bind our remuneration to the project's success indicators (including compliance with the schedule and budget of the project) Vendor Bank Spe- cifica- tion Imple- mentation Methodology Project management 15
  16. 16. Project team Andrey Gusakovsky Managing partner and founder of the company "Key decisions". Certified Management Consultant (CMC) in accordance to International Council of Management Consulting Institutes (ICMCI). Serge Mustafaev Project manager in projects of human resource management systems installation, diagnostic of sales, personnel assessment, changes in the organizational culture of the company, audit and optimize the functional and organizational structure. Extensive experience in the development and implementation of incentive systems based on KPI, MBO and BSC. Victor Stepanov Head of IT practice. Management consultant, economist, expert in the field of project approach and management automation. Extensive experience in the field of management accounting systems, project management, KPI, ERP, CRM, PLM, BPMS. 16
  17. 17. Next steps This presentation represents a variant of system approach to the implementation of management by objectives and KPI in the bank. Offer for your bank must be based on your business need, the features of the corporate culture and IT infrastructure. Looking forward to meet you for presentation of our comprehensive services, to know out about your needs and then to prepare a proposal. 17
  18. 18. >350 consulting projects implemented for Belarusian, Russian and Ukrainian companies >200 author’s seminars and trainings >100 exclusive business events Our company 18
  19. 19. Company structure Consulting department Department of Business Events Business Training Department Recruiting Department 19
  20. 20. Key decision - is a combination of our experience and understanding of the uniqueness of each business. - it is more than 20 years of experience in management consulting - it is more than 12 800 trained staff - it is more than 100 stars and business gurus from around the world - 7 types of services is the company's staffing 20
  21. 21. Our customers 21
  22. 22. г. Минск, пер. Загородный 4-й, д. 58-Б офис 319 kr@krconsult.org +375 17 256 67 32 +375 17 256 90 43/44 www.krconsult.org www.facebook.com/krconsult

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