This article will focus on what you will be looking for in a Performance Management Tool for Banks.
What is Performance Management?¬† According to the Harvard Business School, performance measurement focuses on four main areas:
-Communicating with external investors to ensure that a firm‚Äôs securities are fairly priced and that they are able to access capital
-Measure and evaluate a firm‚Äôs economic performance
-Improve resource allocation and strategy implementation within a firm
-Build accountability for performance through effective external and internal governance
The emphasis of this article will be on improving resource allocation and strategy implementation, specifically for banks.¬† Though banks have evolved over time, their basic function is to take in deposits and reinvest those funds back into the community in the form of loans for such things as houses, cars, education, and infrastructure.