The balanced scorecard is a widely used strategy that has been employed by various institutions to determine their current wellbeing and also plans for the future. When companies implement ideal strategies of using and analyzing the scorecard to be used in their operations, there are great chances that the company will effectively achieve its goals and objectives (Fujii, 2013). However, using a balanced scorecard is not always a walk in the park. The company has to put in place proper means to make sure that their progress is being monitored and also measured quantifiably. The Federal Home Loan Bank is the institution that has prioritized on the proper implementation of the balanced scorecard analysis on their operational and the four major scorecard factors; finance, customers, human resources as well as the sustainability. The Federal Home Loan Bank of Atlanta is a financial institution in the United States in the state of Atlanta which basically provides financial services and mortgages to finance the purchase of homes. The institution has emerged on the top of the most successful financial institutions in the United States as well as across the globe (Götze, Northcott & Schuster, 2007). The four scorecard factors have been the secret behind this success in the company.
Financial Results
The critical success factor for the Federal Home Loan Bank in the financial area is it's proper to plan for financial utilities which will help the company to make proper financial decisions without wastages. The company also sets ideal and achievable financial goals which help the company to work towards the goal effectively. The financial goals are sets in accordance with the company's general goals and objectives.
The rationale for this critical success factor is that I will help the bank expand its services by hiring more workers and also embracing more ideal technology in its processes. To enable it to compete favorably with other players in the banking sector, the bank has to fully make use of the financial advantages it has over its rivals. Its financial soundness will further the institution to greater heights in which it will be able to effectively achieve its goals.
The key performance indicators to measure the success of the key success factors are the net profits which the company makes at the end of each financial year. An increase in the net profit will indicate good financial performance (Niven, 2010). In addition to that, an increase in the capital resources in the bank will also be used as an indicator to measure the success of the company financially.
The chief finance manager is responsible for formulating and managing the finance of the company by making sure that all activities are done in accordance with the financial plan on them.
Customers
The bank’s critical success factor in the customer’s area is to make sure that they provide effective and satisfactory services that will meet the expectations of the customers. Here, the company makes sure that it increases the quality of its services
The rationale of the critical success factor is to ensure that the bank attracts more customers and also maintain the existing customers. Customers will be pleased to pay for quality services and they will probably come back again.
The key performance indicators for the bank in terms as customers are concerned to include an increase in profits and also the number of returning and existing customers. An increase in sales indicates that customers have increased their purchase of services and thus shows that the company is performing well.
The responsible person for customer factor is the chief marketing manager of the bank. He is the one responsible for ensuring that customers are offered the best services and also advertisements are properly made to ensure people receive information about the services offered by the company.
Human Resources
The critical success factor for the bank in human resources includes ensuring that its employees are well selected and hired. Only the best are hired for the best interest of the company (Keyes, 2016).
The rationale of the success factor is to motivate employees thus increasing their performance which will positively impact on the general performance of the bank.
The key performance indicator for human resource is the number of employees who remain in the company without resigning. In addition to that, even the level of quality of the services provided by the bank will be an important indicator of human resource.
The chief human resource manager will be responsible for hiring, firing and promoting the best performers. All the services are aligned to the bank’s goals and objectives to ensure that there is proper sustainability within all processes of the bank.
Sustainability
The critical success factor for the bank’s sustainability factor includes ensuring that there is continuity of in the bank in terms of services provision and improvement.
The rationale of the critical success factor makes sure that the company remains competitive and also continue proving effective services to the customers while ensuring that the business of the bank is performing properly.
The key performance indicators for the sustainability of the bank include the ability of the bank to finance its basic processes and activities such as salary payments. The bank also should be able to reduce the level of losses incurred during various activities.
The general manager is responsible for ensuring that there is proper sustainability of the bank even during hard economic times. He/she coordinates with other department supervisors and managers to ensure there is proper sustainability to win the bank.
References
Fujii, T. (2013). BALANCED SCORECARD FOR STRATEGIC MANAGEMENT: Essentials and Creating of Balanced Scorecard For Strategic Management by SWOT and Strategic Map. TOM PUBLISHING.
Götze, U., Northcott, D., & Schuster, P. (2007). Investment Appraisal: Methods and Models. Berlin, Germany: Springer Science & Business Media.
Keyes, J. (2016). Implementing the IT Balanced Scorecard: Aligning IT with Corporate Strategy. CRC Press.
Niven, P. R. (2010). Balanced Scorecard Step-by-Step: Maximizing Performance and Maintaining Results. John Wiley and Sons.
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