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.
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The composition of the KPI system
• KPI methodology• Tree of objectives for the bank• Position profiles• KPI information system :o Data acquisition and processing
subsystemo Performance indicators calculation
subsystemo Compensation calculation
subsystemo KPI analysis and monitoring
subsystem
• System roles:o Methodologisto Managero Usero Administrator
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The composition of the KPI methodology
• Regulations on material incentives• Regulation on KPI reporting• Positions profiles• Indicators library• Templates of indicators calculation formulas
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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
Bankexecutiveslevel
Businessunitslevel
Departmentlevel
Localofficelevel
Specialistlevel
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 technologyThe application process
3Determination of GSL
Skills and abilities
Conducting correspondence
Ability to build suggestions1
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 people2
Clarification of customer needs and opportunities
Formal requirements
Education Any field of educationCollegedegree
Experience Experience in the banking sector 7
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
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
Integrated project of implementation and automation for KPI system
Development of methodology and position profiles
Trial measurements
and adjustment of the system
AutomationDesign 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
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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.
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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 automation13
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
AutomationWe 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
BankSpe-
cifica-tion
Imple-mentation
Methodology
Project management
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Project team
Andrey GusakovskyManaging partner and founder of
the company "Key decisions". Certified Management Consultant
(CMC) in accordance to International Council of Management Consulting
Institutes (ICMCI).
Serge MustafaevProject 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 StepanovHead 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
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.
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>350consulting projects implemented forBelarusian, Russian and Ukrainian companies
>200 author’s seminars and trainings >100 exclusive business
events
Our company
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Company structure
Consulting department
Department of Business Events
Business Training Department
Recruiting Department
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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
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