CFOs as Performance Management Leaders

Barry Adcock October 30th, 2019

Banks are facing a battery of challenges – from the volatile rate environment shaving margins ever-thinner, increasing compliance costs, and ever-evolving customer expectations. In this environment, every basis point in NIM matters. Those FIs with the best analytics that can harness their data faster and focus on performance management will come out on top.

The evolving performance management responsibilities of the CFO

Such a dynamic environment places dynamic demands on the role of the CFO. Traditional financial analysis and risk identification functions need to take place on a rolling, continuous basis in order for the institution to stay a step ahead. And the CFO of the future will not only keep pace with this evolution, but will increasingly fulfil a role as a performance management leader within the FI.

CFOs also have a role to play in driving that performance culture throughout the organization – both by encouraging performance-driven behaviors, and supporting the acquisition and retention of top-performing talent. CFOs increasingly work alongside CHROs to develop KPIs, provide transparent and relevant performance reporting, and manage to FI goals. With Millennials now representing the largest generational group in the labor force, and Gen Z entering the labor market – both having grown up immersed in technology, easy access to data, and real-time changes – the appetite for immediate information, measurable progress and quick decisioning in the workplace will only increase.

Choosing the right tool for the job

With the increasing remit to spearhead performance management, it’s important that CFOs have the most up-to-date data and advanced tools that they need at their fingertips. Flexibility, accuracy, immediacy are the name of the game.

Performance Management

With Banker’s Dashboard, CFOs can track key performance indicators (asset yields, funding costs, net interest margin) daily, spot subtle changes immediately and make course correcting decisions more quickly. Banker’s Dashboard interfaces with your core system to automatically deliver the most accurate data in easily-digestible formats.

Having daily access to loan and time deposit pricing and maturity data creates transparency and accountability across the FI, providing business leaders with daily access to actual metrics, not just plan metrics, so they too can respond more quickly to changing conditions and stay focused on organizational goals.

Banker’s Dashboard is more efficient than traditional spreadsheets. Banker’s Dashboard automates financial reporting and analytic functions, eliminating time spent on and human errors made in more manual environments. This provides the ability to perform analysis in a fraction of the time, freeing up resources to communicate more with other business leaders, educate all levels of the organization on opportunities to improve, and advocate the adoption of a performance-driven culture.

Talent management

Banker’s Dashboard puts financial data and key performance indicators (KPIs) at their fingertips daily, helping them analyze performance and make fast, informed course corrections to achieve the goals of the organization.

Banker’s Dashboard visualizes information in a way that is easily understood, which serves to help educate new staff on the metrics that matter to the organization. The ability to visualize performance against budgets and goals daily keep the attention focused on the KPIs most important to the performance business units and the organization as a whole. This will also help identify talent risk or talent gaps and provide information for more accurate budgets and forecasts.

In summary, Banker’s Dashboard provides CFOs the tools they need to analyze results, identify opportunities, and communicate with business leaders helping them drive higher performance in every dimension of the Financial Institution.

For more information on how Banker’s Dashboard can transform your ability to drive success at your institution, contact us today.

This content is accurate at the time of publication and may not be updated.