Answer To: Introduction Strategic Performance Measurement Systems (SPMSs) have long been recognized as a...
Abhishek answered on May 19 2021
STRATEGIC PERFORMANCE MEASUREMENT SYSTEMS (SPMSs) OF COMMONWEALTH BANK OF AUSTRALIA
Table of Contents
Introduction 3
Benefits and Explanation of the BSC in Reaching Strategic Objectives of Commonwealth Bank of Australia 3
Issues and Explanation Related to the Implementation of the BSC in Commonwealth Bank of Australia 5
Common Barriers to Successful Scorecard Implementation in the Financial Services Sector in General 7
Conclusion 8
References 9
Introduction
This current assignment is based on one of the most renowned banks of Australia. The assignment deals with the usages of and the implementation of the balanced scorecard for the objectives of the bank. The balanced scorecard is the kind of strategic planning and management system, which the organisations actually used to communicate with people they are trying to accomplish with. There are four main perspectives of this balanced scorecard (BSC): financial, customer, internal processes and many kinds of learning and the growth. First, the paper will deal with its benefits in respect of the bank, next with its issues and the last barriers faced, along with a suitable conclusion.
Benefits and Explanation of the BSC in Reaching Strategic Objectives of Commonwealth Bank of Australia
First benefit of BSC is better strategic planning. The business model is being visualised in s strategy, which actually helps the managers to focus on the cause and effect relationships between different strategic objectives of the bank. These benefits can help the bank in improving the digital experiences of the customers of the bank. With this planning, the customer can increasingly make decisions with ease and they can have a smooth interaction with their financial institution and competition (Lesakova & Dubcova, 2016). This BSC can help in improving the knowledge of the customers and can lead to the application of the experiences of the customers in improving the reputation of the bank of Australia.
The second benefit of BSC is improving the communication and the execution. This strategy can help the banks of Australia to have good communication both internally and the externally. This can help to have the better engagement of the staff and the external stakeholders of the bank to have good deliverances with banking issues (Harden & Upton, 2016). This can help the bank to enhance the data analytic capabilities, which is at the foundation of every retail-banking trend. From removing friction from the journey of the costumes to improvement of the delivery of the multichannel data is the fuel, which can power the initiatives, which has been made possible by BSC. Despite the vast amount of the data, which has been available to the banking sector, the bank may face a difficulty of determining the data, whether it will stand fruitful or not.
Third Benefits of BSC is the better alignment of the projects and initiatives. This factor has been helping the commonwealth bank of Australia to map their projects like the issuing of the loans and the debts, which will actually be focussed on the deliverances of the strategic objectives. These benefits can equally help the bank in meeting its competition priorities such as becoming accustomed to newer changes or developments or take action for the changes in a short period of time (Rotchanakitumnuai, 2017). This can also help the bank in evading its banking complexity such as the breadth and the depth of data at their disposal. This can help the bank in teaming up its coordinated vision for the suboptimal allocation of the human and the technical resources and exchanges of ideas.
Fourthly, the benefit of BSC is better management information. This will help the bank in designing its key performance indicators for various strategic objectives. This approach can report higher quality management information and the better decision making of the bank. These objectives can also help the bank in reduction of the operational costs (Yuliansyah, Gurd & Mohamed, 2017). Due to the razor thin rate of the interests and the operations of the margins, a lot of time and effort has been spent by this bank to cut costs wherever needed. These efforts have been without understanding the impacts on the experiences of the customers or without fixing underlying process flaws. These key rules and indicators laid down by BSC helps in the removal of this problem.
Fifth benefit is the improvement of the performance reporting. This is highly advantageous for the bank for fulfilling its strategic objectives. This benefit is fruitful for the design of the performances of the reports and the dashboards (Gomes & Romao, 2017). This ensures that the reporting of the management of the bank will be focussing on the most noteworthy strategic issues and help the companies in monitoring and execution of the plan. This performance reporting can help in the installation of the digital banking technology, which can apply the principles of the efficiency in order to process and operate the issues of the banks. This can help in the meeting of the problems and the easy handling of the customers who are actually coming in the bank.
Sixth benefit of BSC is Better Process Alignment. These benefits will help in the alignment of the organisational processes such as the budgeting, risk management and the analytics of the data with the strategic priorities. This alignment can help the bank in meeting its strategic objectives such as the investment in the processes of the innovation (Malagueno, Lopez-Valeiras & Gomez-Conde, 2018). The area, where this common weather bank is increasing the innovation, is customer service or any kind of experience, which is 84%. The channels, which are 82% followed by the processes, are 67%, whereas the sales and marketing are 56%. All these rating increments are part of the important strategic objective of the bank, which has been possible only by the implementation of BSC.
It can be seen that...