Daniel Havey
Forecasting Methods for Banks

This article will focus on Forecasting Methods for Banks.

Image taken from Shutterstock.

Image taken from Shutterstock.

 

Have you done this? – According to Nasdaq, the consensus Earnings per Share (EPS) forecast for Bank of America for the years 2017, 2018, and 2019 is $1.73, $2.03, and $2.19 respectively.   How did they come up with these numbers?  If I told you that an analyst for Nasdaq went to the corner fortune teller and asked them to divine the numbers, you would laugh at me.  Or if I told you that they called three different gas stations for their price of gas for their research, you would say that the information was irrelevant. Continue reading

Daniel Havey
Strategic Planning for Banks

This article will focus on Strategic Planning for Banks.

Why I hate the first six weeks of the year – If you have been a member of any gym for more than a year, you will know what I am talking about.  Whether you go to the gym twice a week or all seven days, you have a routine and see the same people.

Then, January 1 hits.  The parking lot is so full that it takes you ten minutes to find a spot.  You enter the gym and there are three times as many people as normal.  What used to take forty-five minutes to finish your routine now takes an hour and a half because every piece of equipment is being used!

What makes it worse is that most of these new people have no idea what they are doing.  You say to yourself, just wait until Valentine’s Day.  Almost all of these newbies will be gone by then and things return to normal.  And how do I know which ones will stay and which ones will leave?

Continue reading

Daniel Havey
Budgeting Tools for Banks

This article will focus on Budgeting tools for Banks.

Photo taken from Shutterstock.

Photo taken from Shutterstock.

The Balanced Scorecard is finally in place, now what? The senior management of the bank came up with twenty-four key performance indicators (KPI’s) that will make up the bank’s balanced scorecard.  Everybody is excited about the new measures and is looking forward to see how they rank.  The first report comes out with a lot of fanfare.  The second report then comes out and nothing changes.  Hmmm.  Everyone thought performance would immediately start to improve.

 

What is missing?  Budget tools for banks!  Now that the bank knows what measures are important to implementing its strategy for success, it needs to come up with a way to set goals and targets for those various measures.  The first step in this process is to come up with a budget.  There are many approaches and tools for budgeting for banks.  This article will help you sift through the myriad budget tools for banks by coming up with a list of requirements.

Continue reading

Daniel Havey
Balanced Scorecards for Banks

This article will focus on Balanced Scorecards for Banks.

 

Image taken from Shutterstock.

Definition:  According to TechTarget, a performance scorecard is a graphical representation of the progress over time of some entity, such as an enterprise, an employee or a business unit, toward some specified goal or goals. Performance scorecards are widely used in many industries throughout both the public and private sectors. The performance scorecard is an essential component of the balanced scorecard methodology.

 

The focus of this article will be on balanced scorecards for banks.  Implementation of the balanced scorecard for banks and financial institutions is a very tricky thing, according to BSC Designer, as there is huge temptation to focus on financial indicators only.  We all know that banks work with money to make more money.  So, it is very easy to ignore non-financial indicators that have a direct impact on financial performance of banks.

Continue reading

Daniel Havey
Dashboards for Banks

This article will focus on the many types of Dashboards for Banks that are being used today to improve bank performance.

dashboardforbanksDefinition:  According to Wikipedia, dashboards often provide at-a-glance views of KPIs (key performance indicators) relevant to a particular objective or business process (e.g. sales, marketing, human resources, or production).  In real-world terms, “dashboard” is another name for “progress report” or “report.”

Continue reading

Daniel Havey
What should I be looking for in a Performance Management Tool for Banks?

This article will focus on what you will be looking for in a Performance Management Tool for Banks.

 

Image taken from Shutterstock.

Image taken from Shutterstock.

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’s securities are fairly priced and that they are able to access capital

-Measure and evaluate a firm’s 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.

Continue reading

Daniel Havey
Best Management Reporting Tools for Banks!

This article will focus on Best Management Reporting Tools for Banks.

 

 reportingWhat am I looking for?  At first, this article was going to be about the Best Reporting Tools for Banks.  I then realized that there are many different types of reporting needs for banks that tools focus upon.

  Continue reading

Daniel Havey
Financial Reporting for Banks is Not Just Looking Backwards Anymore!

This article will focus on how Financial Reporting for Banks has changed overtime to be more forward looking.

Tell me what happened:  When I first started out as an Accounting Manager for a large regional bank, my job was to create monthly financials for each branch and tell them what they did last month.  Payroll, loan, and deposit information were already at the branch level in the general ledger; but not much else.

To improve the Financial Reporting for the bank, my job was to allocate all the other costs such as rent, FDIC insurance, funds transfer pricing, loan charge offs, and more to the branches.  This process took a team of five people a minimum of three weeks each month to accomplish.

Once everything was posted to the general ledger, my team would dump everything into a huge Microsoft Access database.  We then wrote a macro that would step through all four-hundred branches to create Excel workbooks on a hard drive.  Once created, we would print every report and send through interoffice mail.

By the time the branch network received their reports and started asking questions, we were already on the next month’s cycle.  Branches were always asking what happened and never got timely information to take corrective action.  It was just an endless cycle of number crunching and tree cutting.

Let’s speed things up:

Continue reading

Daniel Havey
How Microsoft Excel Reporting for Banks Has Evolved

This article will focus on Microsoft Excel Reporting for Banks and how it has evolved over time.

Origins:  I met Harold as my new boss in 1989 when I became Controller for a small subsidiary of a bank.  At the time, I was a Lotus 1-2-3 disciple.  I was great at writing macros and spitting out reports.  The one thing I hated about Lotus, however, was its poor printing capabilities.

Harold introduced me to Microsoft Excel and its ability to set and preview the print area made me convert overnight.  Harold said he loved the ability to type numbers into Excel every month, so he could get a good feel for the financials.

Continue reading

Hanna Kim
How Does Business Intelligence for Dynamics GP Benefit My Department?

This article will focus on the benefits of Business Intelligence (BI) for the sales, marketing, human resources, and information technology departments using Dynamics GP.

Photo taken from Shutterstock.

Photo taken from Shutterstock.

Each department has an important role in a company. As a department leader, you may know what your team needs to achieve department-specific goals. BI solutions that cover budgeting, forecasting, reporting, and analyses can help you meet those goals in an efficient and quicker way. For example, at my own company, the current team of department heads includes Nils Rasmussen for Sales, Gina Louie for Human Resources, IT Manager Allan Bacero, and Marketing Director Vanessa Sierra. I will cover four general departments that you would typically find in an organization and explore how a BI tool would help each department.

Continue reading