Case Study

CHEMICAL BANK CASE

QUESTIONS:

1. What is Hegarty attempting to accomplish with the Balance Scorecard?

Michael Hegarty, head of the Retail Bank Division of Chemical Banking Corporation was trying to accomplish a major cultural, organizational and strategic change in the Retail bank in order to transform the bank into a "customer focused organization" whose mission was to provide superior financial advisor and services to a targeted customer group. This dramatic and extensive strategic change was indispensable to place the bank in a better position to compete in a market characterized by intense price competition, continuous change, rapidly technological change and increased customer demand for value.

Hegarty envisioned that the implementation of the BSC would facilitate this transformation by:

· Improving Strategy formulation, understanding & Communication through all levels of the organization

The implementation of BSC in Chemical bank helped to simplify and better organize the bank's strategy themes, focus thinking in these core strategic themes and communicate these themes effectively through all the organization. The main objective of BSC was to translate the corporate vision and mission of the Retail Bank into actionable, understandable and measurable objectives. In this way, any individual in the organization should understand how it fits in the overall company strategy. As the case mentioned, the BSC provided senior management with a permanent forum to discuss present performance and future targets.

· Promoting cultural change & learning

The implementation of BSC facilitated the alignment and convergence of the two different management teams and cultures that existed in the bank in that moment due to the merger process with the Manufacturers Hanover Corporation. The BSC implementation process allowed the surge of a powerful-shared sense in the management team of the Retail Bank.

In addition the BSC implementation fostered the...