Research Perspective

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Performance Management in Financial Services Isn’t Only for Executives:

Improving Operations and Sharing Strategy
throughout the Enterprise

Aligning Financial Services Performance

Performance management is a strategy and a set of methodologies and processes that can be used for managing performance in financial services organizations. Its purpose is to achieve a common set of goals and objectives in the most efficient manner. Functionally, performance management is about aligning day-to-day processes and activities with organizational strategy. This makes it of obvious value to financial services executives and professionals for several reasons: It communicates to all stakeholders an agreed-upon strategy and helps align the organization around it. It provides the framework for measuring results and taking corrective action when necessary. And it both increases visibility and mitigates risk, two characteristics often lacking in management of a financial services organization’s performance.

Our benchmark research into business intelligence and performance management shows that performance management in financial services organization can be improved: Only a small percentage of financial services organizations (5%) told us they feel completely confident about their technology for performance manage-ment. Many of those performance management efforts began with business intelligence (BI), but while BI is an important capability for measuring perfor¬mance, it alone is insuffi¬cient. That’s because most business intelli¬gence proces¬ses are historically focused. In addition, business intelligence often focuses on indi¬vidual processes while perfor¬mance manage¬ment aligns pro¬ces¬ses with strategy and goals. In fact, according to our research fin¬an¬cial services organizations rank strategy management (72%) and goals and object¬ives tools (64%) as the two most important supplements to BI. Balanced score¬cards and strategy maps also are common tools for managing performance in financial services organizations

 
 

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