Management Ination Systems Project Organisation and Approach.doc

Management Information Systems Project-Project Organisation and ApproachProject Organisation StructureAndProject Roles and ResponsibilitiesProject Steering GroupBusiness Sponsor IT SponsorProgramme DirectorBusiness requirementsImplementation and Change Technology Buildworkstream workstream workstreamBusiness Requirements WorkstreamImplementation and Change WorkstreamTechnology Build Workstream Workstream manager (1 FTE person) Workstream manager (1 person) Workstream manager (1 person) Business requirements for corporate banking (KPIs / reports / management techniques/ business rules) (1 FTE person) User site technology preparation (5 people including a team leader) Site technology preparation, hardware installation and operation team (4 people) Business requirements for intermediary services (KPIs / reports / management techniques / business rules) (1 FTE person) User demonstrations and training (4 people including a team leader) Data base configuration (1 person) Business requirements for personal banking (KPIs /reports /management techniques/ business rules) (1 FTE person) User acceptance testing management and execution (10 people including a team leader) Data base configuration including user interface design and build (3 people) Business requirements for real estate lending (KPIs / reports / management techniques / business rules) (1 FTE person) User access configuration and user security access set up (1 person) Interface build team (12-15 people) Business requirements for performance management (KPIs / reports / management techniques / business rules) (0.5 FTE person) Implementation of new information management organisation structures and roles and responsibilities (4 people including a team leader) Development / test / live technical environment management team (1 person) Business requirements for credit and market risk management (KPIs / reports / management techniques / business rules) (0.5 FTE person) Summary Data Model and Operational Data Model management (1 person) Meta data management (1 person) Business requirements for customer relationship management (KPIs / reports / management techniques / business rules) (0.5 FTE person) Pre launch data cleansing (20 people including 2 team leaders) Business requirements for planning and budgeting (KPIs / reports / management techniques / business rules) (1 FTE person)Notes:Project launch staff numbers are representing in BoldOther project staff joining the project during its life are presenting in normal typeAssumed 3rd party software and hardware vendor role: Hardware capacity planning Hardware manufacture and installation Hardware operations training Fine tune data loading using utilities Database installation Database configuration training Database configuration Data distribution tuning (skewing) analysis Online analytical processing module installation Online analytical processing module configuration training Online analytical processing module configuration LDMS training LDMS configuration Project managementA Programme Director is needed supported by a Programme office of 3 people, these would be needed from project startProposed Project ApproachAlready doneDevelop KeyPerformanceIndicatorsDevelop ManagementReportsIdentify allData neededIdentify businessRules to ensure data QualityIdentify dataSpecify InterfacesourcesspecificationsInstall hardwareConfigure data baseTest and launchAnd softwareSummary of Key Performance Indicator Business Requirements Already DoneBSC perspectiveCSFKPIKPI descriptionWhere performedHOProvCityLocalCustomerAcquire customersBrand Recognition RatingA measure of how well the banks brand is recognised in its chosen markets.DDCustomerAcquire customersBrand Value RatingA measure of how strong the banks brand image is in its chosen markets, weighted by perceived importance.DCustomerAcquire customersBanner Ad Click-Through RatePercentage of internet users who click on the banks banner advertisements (both on the banks own site and on other sites).SDCustomerAcquire customersNew Business From New CustomersPercentage of sales (new business) that comes from customers with no previous relationship with the bank.SDDCustomerAcquire customersRevenue From New CustomersPercentage of revenue that comes from new customers with no previous relationship with the bank.SDDCustomerAcquire customersProspects RateNumber of potential new customers identified, as a percentage of total customers.SDDCustomerAcquire customersAcquisition RateIndicator of the success of the bank in acquiring new customersSDDCustomerDeepen customer relationshipsProducts per CustomerHow many products the average customer holds with the bank. The more products a customer has with the bank the less likely they are to leave, and the more likely the bank is to make a profit from the relationship.SDDDCustomerDeepen customer relationshipsRevenue Per CustomerA part measure of overall client profitability.SDDDCustomerDeepen customer relationshipsDirect Mail Response RatePercentage of direct mail recipients who respond to the direct mail (but may not actually purchase).SDCustomerDeepen customer relationshipsDirect Mail Conversion RatePercentage of direct mail recipients who actually purchased the product offered.SDCustomerDeepen customer relationshipsOutbound Telemarketing Conversion RatesPercentage of outbound telemarketing leads that result in a sale.DCustomerDeepen customer relationshipsInbound Telemarketing Conversion RatesPercentage of inbound telemarketing leads that result in a sale.DCustomerDeepen customer relationshipsProduct PenetrationPercentage of customers that hold a specific productSDCustomerDeepen customer relationshipsAverage Product BalanceAverage customer balance for each product.SDCustomerDeepen customer relationshipsNew Business From Existing CustomersPercentage of sales (new business) that comes from customers with an existing relationship with the bank.SDDCustomerDeepen customer relationshipsRevenue From Existing CustomersPercentage of revenue that comes from customers with an existing relationship with the bank.SDDCustomerDeepen customer relationshipsUtilisation RatioShows the ratio of the loans drawn down by the customer or segment, to the limits assigned. It is an indicator of the extent to which the customer or segment is utilising the limits assigned.SDDDCustomerDeepen customer relationshipsCustomer Contact IndexIndicator of the level of pro-active contact maintained with customers by the bank.SDDCustomerGrow customer baseShare of Target MarketA measure of market share in markets that have been selected as targets.SDDCustomerGrow customer baseNumber of CustomersTotal number of active customers.SDDDCustomerGrow customer basePipeline BusinessIndicator of the amount of new business which is in the pipeline.S/DS/DDDCustomerGrow customer basePipeline Conversion RatioIndicator of the banks success in converting business in the pipeline to actual business.S/DS/DDDCustomerGrow customer baseNominal asset growthIndicator of the percentage growth in total assets.SDDDCustomerMove to appropriate channelsVolume of Transactions By ChannelPercentage of total number of customer transactions conducted via each channelSSDDCustomerMove to appropriate channelsValue of Transactions By ChannelPercentage of total value of customer transactions conducted via each channelSSDDCustomerMove to appropriate channelsChannel Pricing IndexA measure of how the pricing of the banks channels compares to the pricing of equivalent channels at other banks.SDCustomerRetain customersCustomer Satisfaction IndexHow satisfied customers are with the overall offering of the bank, including service quality, products, channels, pricing etcSDCustomerRetain customersCustomer ComplaintsThe number of customer complaints received during the period.SDDDCustomerRetain customersLength of Customer RelationshipThe length of time the average customer has had a relationship with the bankSDCustomerRetain customersChurn RateThe rate at which customers end their relationship with the bankSDCustomerRetain customersAccounts ClosedNumber of accounts that have been closed during the periodSSDDCustomerRetain customersRetention RatePercentage of customers who ask to close their accounts, but are saved by the bank through the use of a retention strategySSDDFinancialCreate shareholder valueTotal Shareholder ReturnIncrease in share price plus cashflows made available to shareholders (dividends). A measure of the wealth which the business creates for shareholders (commonly referred to as market value added or MVA) NPV of future Economic Profits.DFinancialCreate shareholder valueEconomic ProfitOperating profits after tax, adjusted for the cost of capital required to generate that profit.DDFinancialCreate shareholder valuePrice to Book RatioUsed to compare a stocks market value to its book value, calculated by dividing the current closing price of the stock by the latest quarters book value. (Book value is simply assets minus liabilities).DFinancialCreate shareholder valueReturn on EquityIndicator of the return on the original equity contributed by shareholdersDFinancialCreate shareholder valueNet Operating Profit After TaxShows the normalised profit available for distribution to shareholders.SDFinancialMaximise profitabilityNew Business Against PlanWhether sales targets are being met. New business targets should be set as a budget at the start of each year. This measure keeps track of these targets.SDDDFinancialMaximise profitabilityNet Operating ProfitNet operating profit (before tax), and adjusted for non-recurring non-operating costs.SDDFinancialMaximise profitabilityNet Interest IncomeNII is a key measure of profitability since it reflects the difference between the rate a bank can borrow and lend money and the associated costs of doing so.SDDFinancialMaximise profitabilityNon-Interest Income RatioA measure of the independence of the bank from traditional asset-based earnings, and the degree of fee-based revenues.SDDFinancialMaximise profitabilityNet Interest MarginA performance measure that indicates how well a bank uses its earning assets in relation to the cost of funding.SDDFinancialMaximise profitabilityOperating ExpensesIndicator of the expenses incurred in conducting the banks businessSDDDFinancialMaximise profitabilityOperating IncomeMeasure of the revenue generated by the normal business of the bank.SDDDFinancialMaximise profitabilityReturn on AssetsIndicator of the banks efficiency in using its assets.SDDFinancialMaximise profitabilityYield on Average Earning AssetsIndicator of the margin made by the bank on the management of fundsSDFinancialMaximise profitabilityNet ProfitThe bottom line figure for the entity, showing the profitability after all taxes.SFinancialMaximise profitabilityBugetary AccuracyA measure of the actual financial results compared to budget. Accuracy is as important as actual results because it indicates the management teams ability to predict their business volumesSDDDFinancialMaximise profitabilityProduct Pricing IndexA measure of how the pricing of the banks products compares to the pricing of equivalent products at other banks.SDFinancialMaximise profitabilityWeighted average cost of fundsIndicator of overall interest cost of funds before adjustment of mandatory reserves and liquidity requirementsDFinancialMaximise profitabilityGrossed up cost of loanable fundsIndicator of true effective cost of loanable funds after adjusting effects of liquidity requirements on deposits and other sources.DFinancialMaximise profitabilityGross interest yield on loanable fundsIndicator of gross percentage interest income/yield earned and projected on all types of loan assets.DFinancialMaximise profitabilitySpread income percentageIndicator to measure the interest spread made by the business unit.SDDFinancialMaximise profitabilityInterest margin-operating expenses ratioIndicator of the ability of traditional deposit-lending business to cover operating expenses.SDFinancialMaximise profitabilityExpense-asset ratioIndicator of the efficiency of the bank in terms of expenses incurred in managing the assets of the bank.SDDFinancialProvide coverage for riskLiquidity RatioThe ability of the bank to meet its short-term obligations (i.e. ratio of assets that can be quickly sold compared to short-term obligations). This shows whether the bank can meet its liquidity commitments.DFinancialProvide coverage for riskCapital Adequacy RatioIndicator of the coverage provided by shareholders funds for the risk assets of the bank.DFinancialProvide coverage for riskGearingIndicator of the leveraging undertaken in terms of capital to assets.DFinancialProvide coverage for riskOperating CashflowA measure of the cash flowing into the business in a period eg new deposits, loan repayments, capital injections, less the cash flowing out eg deposit withdrawals, loans drawn downSDDFinancialProvide coverage for riskCapital ChargeA notional cost allocated to an entity to show the opportunity cost of capital used by it.DFinancialProvide coverage for riskReturn on Risk Assets After Cost of Deposit (RORA-1)An indicator of gross interest margin, which takes into account the risk of the asset.SDFinancialProvide coverage for riskReturn on Risk Assets and Treasury Assets after Cost of Funds (RORA-2)Indicator of the margin achieved or targeted including the effect of treasury operation at legal entity level, or intra-bank funding at profit centre level.SDFinancialProvide coverage for riskLoans to Deposits RatioIndicator of the amount of deposits which have been committed to loans by the bank.SDDFinancialProvide coverage for riskInterest margin-loan loss ratioCombined measure of the risk-reward relationship in commercial lending activities.SDDFinancialProvide coverage for riskMandatory reserve ratioIndicator to show the level of reserves required to be maintained according to the regulatory standards.DFinancialProvide coverage for riskSolvency ratioLong-term, going concern version of Liquidity ratio - to measure the ability of the bank to pay all external liabilities if needed.DFinancialProvide coverage for riskCredit risk & loan loss reservesImportant indicator of general and specific provisions created on the risk asset portfolio.SDDFinancialProvide coverage for riskUnsecured loan portfolio riskIndicator of the extent of risk due to lending not being covered by collateral.SDDDInternal ProcessDeliver superior customer serviceCall Centre Average Time to AnswerThe average length of time a customer has to wait before their telephone call is answered. Provides and indication of the level of service being provided to customers and a measure of the utilisation of call centre staff.DInternal ProcessDeliver superior customer serviceCall Centre Call LengthThe average length of time it takes a customer on the telephone to complete a transaction with the call centre.DInternal ProcessDeliver superior customer serviceCall Centre Call VolumesThe number of telephone calls received by the call centre.DInternal ProcessDeliver superior customer serviceCall Centre Call Abandonment RateThe number of times that a customers hang up before their call is answered (typically because that have had to wait for too long)DInternal ProcessDeliver superior customer serviceBranch Queuing TimeThe average length of time a customer has to wait to conduct a transaction in a branchDDInternal ProcessDeliver superior customer serviceBranch Transaction TimeThe average length of time a customer spends conducting a transaction in a branch.DDInternal ProcessDeliver superior customer serviceBranch Transaction VolumesThe number of transactions processed by branches.SDDInternal ProcessDeliver superior customer serviceInternet Response TimeThe average length of time it takes to conduct a transaction over the internetDInternal ProcessDeliver superior customer serviceInternet Session LengthThe average length of time a customer spends on each visit to the internet banking site.DInternal ProcessDeliver superior customer serviceE-mail Response TimeThe average length of time it takes to respond to a customer e-mailDDDDInternal ProcessDeliver superior