INTEGRATION - CAUSAL CHAINS AND STRATEGY

Integration - Causal Chains and Strategy



Integration - Causal Chains and Strategy

Introduction

Tri-Cities Community Bank (TCCB) is established in the Midwest U.S. and has a total of 10 parts grouped into two divisions--the south partition (SD) and the to the north partition (ND). Each partition comprises of five branches; each agency employs a agency president, agency vice-president/chief lend agent, clientele service representatives, lend representatives, mortgage lend originators, head bank clerks, tellers, and administrative assistants. All parts are established inside a 60-mile radius.

TCCB has relished powerful economic achievement over the past couple of years but extends to gaze for modes to improve its performance. The strategic main heading of the bank is reconsidered every year at a gathering of top bank agents and out-of-doors consultants. The purpose of the gathering is to summarize the dream and objective of the bank and to double-check all top managers realise and acquiesce on the main heading of the organization. In 1997, TCCB administration adopted the expert scheme of balancing profits with development to double-check the bank continues an independent entity living to provide value service and products to an progressively varied clientele base.

Chris Billings lately was promoted from trading controller to SD president. The promotion came just as Chris completed her night Master of Business Administration (MBA) stage in December 1999. As part of her graduate investigations, she was presented to the balanced scorecard (BSC), a performance estimation scheme that directs conclusion manufacturers in the direction of long-run value-creating activities. Chris considered the BSC could be utilised to improve the economic performance of TCCB. In late December 1999, she approached the head boss agent (CEO) and demanded permission to implement the new program.

TCCB's CEO was apprehensive about the new program. His reluctance arose from his own unfamiliarity with the BSC and Chris's short tenure as SD president. The CEO furthermore was worried about if Chris's concepts would be accepted by the ND president and ND agency employees. Finally, he was unsure about the BSC's benefits. At the identical time, although, the CEO didn't desire to respond contrary to Chris's first efforts as SD president. To appease Chris without completely committing the bank to implement the BSC, the CEO acquiesced to permit Chris to start the process of developing the BSC in the five parts of her division. In turn, Chris acquiesced to make a presentation to the CEO and the bank's Board of Directors in three months. In this gathering, Chris would present BSC concepts and how she planned to use the program to improve the economic performance of her branches. Given the short period of time to conceive a pilot study, Chris marvelled how she could assure the Board of Directors to give her permission to implemen t the BSC. She knew she should assure the SD agency presidents of its value.

On January 7, 2000, Chris contacted with her agency presidents to talk about the BSC program and recruit their help in developing balanced scorecards for their ...