Essay About Chemical Bank And Financial Institution

Chemical Bank: Implementing the Balanced Score Card
Chemical Bank: Implementing the Balanced Score CardACCT 5110November 26, 2016Dr. FillingJoseph AntonacciClint BrillExecutive Summary:Chemical Banking Corporation was going through an extensive change in the organization. In early 1995 Michael Hegarty was head of the Retail Bank Division and oversaw the transformation. The transformation process of the organization began with the merger of Chemical Bank and the Manufacturers Hanover Corporation at year-end 1991. The new and larger banking company was better positioned to compete in the marketplace which was characterized by intense pricing competition, outflow of deposits to mutual funds, rapidly evolving technology, and increased customer demand for value. The primary change in the organization was its ability to expand the products and services provided to its customers. Michael Hagerty, head of Retail Banking Division, wanted to implement the Balanced Scorecard (BSC as a tool to achieve success in the organizational and cultural transformation. The essay prompt below explicates Chemical Bank’s implementation and use of the BSC.Essay Prompt:Why does Chemicals Retail Bank, a financial institution with the bulk of its inputs and outputs denominated in financial terms, need measures other than financial to motivate and evaluate its performance?The need for other measures (other than financial measure) to evaluate its performance is largely due to the changing demand for the products and services (such as annuities, investment products, and technology based payment services, etc.) When dealing with the customers and service financial measure is not sufficient in performance evaluation. Other measures need to reveal weak and strong points in the organization. This will better allow the Bank to understand its most profitable and weakest areas. Existing programs and campaigns must have a measure of efficiency and efficacy to optimize learning efforts and execution.What does Mike Hegarty want to accomplish with the BSC?Hegarty wanted to accomplish many thing with the implantation of the BSC. Goals that were to be met are as follow;Promote positive cultural change and optimize learning within the organizationRedefine core business competencies in the Retail Banking DivisionCreate a clear methodology that monitors performanceMeet financial, customer, and internal strategic learning objectives guided by the BSC processImprove overall strategy formulation and communication through all levels of the organizationWhat are the enabling conditions for a successful BSC project?   Comment on the BSC implementation process at Chemicals Retail Bank.Enabling conditions for a successful BSC include identifying a clear focus, gathering feedback for the projects efficiency/efficacy, and cultivate/increase innovation in products and services being offered. Additionally, there must be improvement in new skills, overall access to the company’s strategic information, and a common unity of purpose (everyone on the same page).