Branch Performance Measurement
Change is coming
The debate about the future of financial institution branch networks continues to rage. On one extreme are those who believe branches are obsolete and everything will be digital and self-service within a few years. On the other extreme are those who believe traditional branches are here to stay in much their current format. In between are a full gradient of beliefs, a lot of discussions, many experiments and a dose of worrying. A common thread no matter where on the spectrum your beliefs are, is that branch networks are evolving and the rate of change is accelerating.
Performance measurement basics
One of the most frequently read articles in this blog is Teller Performance Measurement. It discusses five key attributes of performance measurement programs that produce positive benefits. All of them apply to any constructive performance measurement program.
- Fairness: The program must accommodate and treat fairly the differences between branches, employees and jobs.
- Recognition: High performers need to be recognized.
- Definition: Those measured need to understand what is being measured and how it is scored.
- Remediation: The program must identify sub-standard performance, but also provide a process to improve it.
- Automation: Gathering the information must not add to overhead for the people it is measuring.
Branch measurement is more complex
A branch performance measurement program should follow these concepts, but it is more complex and in some ways more subtle than teller performance measurement. Good performance for a branch is more than the sum of discreet activities: teller transactions, account openings, loan applications, customer service, etc. Managers or supervisors need to be measured not so much on total volume as the efficiency, accuracy and quality of customer service with which it was delivered. A branch is a team as well as a physical location.
Measure to improve
This article has the following premise: You cannot improve what you cannot see. That means measurement is essential to improvement. Metrics showing how activities relate to each other, how efficiently they are performed, and how many exceptions are generated should be part of the scorecard. Generating this kind of scorecard requires pulling information from many sources PLUS the ability to manipulate and calculate the data.
Once the scorecard is generated, it needs to be distilled into a format that is easily understood. For a deeper dive into these issues also read The Fine Art of Analytics. For branch performance measurement there will be many contributing criteria, but presentation is about communicating the organization's objectives.
- How do component scores combine to reflect positive or negative performance relative to a few key objectives?
- Can branch management personnel see how their branch is trending up or down over time?
- Can they see how their branch is performing relative to other branches?
- How are high performing branches recognized?
Keep it positive
Performance measurement is a two-edged sword. Implemented and presented well it can cut through clutter and help employees clearly see objectives and how they are doing relative to achieving the objectives. It can foster friendly competition and motivate high performers to mentor teammates to improve the overall branch score. A poorly implemented performance measurement program cuts deeply into morale, which ironically will have a negative impact on the performance it is meant to measure.
If you are interested in implementing or expanding performance measurement for your branches, we invite you to take a look at StaffPro Branch Resource Management. StaffPro includes Tiered Performance Measurement (TPM), Dashboards, Analytics, Reporting , data consolidation, Process Automation and much more.