Executive Management bears the ultimate responsibility for the success or failure of the bank. Yet this senior team must work largely by indirect means: setting goals and communicating strategy; strengthening the organizational culture; recruiting senior talent and building teams; and determining how to allocate capital, especially for long-term priorities.
Barriers to more effective executive management can include:
- Poor vertical visibility of performance drivers.
- Unclear ownership of performance goals and accountability for them at the front line.
- Poor horizontal visibility of cross-functional alignment and coordination.
- Current executive information capabilities do not support the non-linear and iterative nature of decision-making/management processes.
The Performance Manager for Banking book helps executive management better support decision areas such as core governance, risk and compliance. These include:
Performance:
- Financial management: Are we performing to shareholder expectations?
- Operational revenue management: Are we driving revenue growth effectively?
- Operational expense management: Are we managing operational expenses effectively?
- Long-term assets management: Are we managing long-term assets effectively to increase future revenue and expense management capabilities?
Risk management: Are we managing the risks of sustaining this performance?
Compliance management: Are we complying with regulatory requirements?
