St Andrews Bank is currently redesigning its performance measurement system. Up until now it has relied heavily on monthly cost variance reports to control the costs in each bank branch but would now like to have a more comprehensive performance measurement system that can help the bank to detect problem areas before they become significant.

The bank is committed to achieving a high return on investment for shareholders and believes that careful management of customer service and costs will help to achieve that goal.


1 Identify some key performance indicators (KPls) for the bank and some key performance drivers (KPDs) that could be used to manage operations at the branch level. Present these in the form of a Du Pont chart?

2. Explain how continuous improvement could be built into the KPDs to assist in encouraging improve performance over time?

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