Chemical Bank Implementing the Balanced Scorecard Case Solution

2. What did Mike Hegarty do to meet the criteria of the scorecard?

Mike Hegarty, the head of the retail banking division, wanted to transform the business core strategy into consumer-centric. He listed three major strategic principles from previous strategies: altering the customer/profit mix, enhancing productivity, and enabling the organization. Shifting the client mix will result in a better profit mix, and this shift will be facilitated by employee training and a better understanding of customer categories. As a consequence of these efforts, time will be spent more productively due to increased efficiency through training. All of these things contribute to the organization's success. Mike Hegarty utilized the activity-based costing method to determine where the actual costs were coming from. The bank was aware that some accounts were more profitable than others. However, after completing the ABC analysis, they discovered that many accounts were not only unproductive but also costing the bank money. The BSC might be adjusted to favor aims that use this newly revealed truth by exploiting this newly learned information. This focuses on the internal perspective of identifying client categories, which leads to a more profitable and diverse customer mix.

3. Discuss the implementation of the scorecard in the company.

Since the firm partially implemented BCG, it jeopardized the intended impacts of the comprehensive implementation of the fresh new BSC's plan. Simultaneously, if the management couldn't get desired results, it would highlight the demand and factors to incorporate in BSC. The BSC implementation by managers outside the top level of the company is also an essential aspect of the BSC. During the construction of the original BSC, the Chemical Bank performed an excellent job consulting with management. This is critical to the early success of a BSC deployment. Unfortunately, Chemical Bank did not communicate its BSC to all of its workers directly, which is a necessary step for a BSC to be fully utilized.