The organizational structure and lack of vision hindered effective performance management for one of our banking sector clients. In their retail banking division, different types of branches manage very different clients and portfolios, thus evaluating the performance of the branch as a whole and the employees proved to be challenging. The leadership of the company was looking for a reliable tool to objectively assess the performance using the right benchmarks and metrics, with the objective of improve efficiency of the branches while providing right incentives to their staff.
Because of Altair’s expertise in data-driven modeling, we were brought in to help establish a new performance evaluation system. From the beginning the idea was clear: we would propose a tool that was transparent, reliable, easy to use and versatile.
We started with the definition of the principles to guide the development of the model:
Altair proposed a three-stage plan that involved diagnosis of the status quo, analysis and definition of hypothesis and actual design of the model to the management. Adding on to the performance evaluation function, the model could also estimate the optimal workload and portfolio size, run simulation of branch productivity and suggest regional “bundle” of branches to cooperate in order to achieve highest efficiency.
The new model brought clarity to the internal management of retail banking division, and leadership developed a clear vision of how to align the branches to achieve better results. The success of the model was reflected in the substantial savings realized in personnel management costs and the employee motivation reached an all-time peak shortly after the model was implemented.
March 01, 2007
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