Design of a balanced scorecard-type management system for a back-office department in a bank

Abstract

In contrast to most studies of BSC in the Banking Industry, which focus on the BSC at a branch and corporate level, the present Work Project (WP) designed a BSC-type management system for a back-office department of a Bank that handled areas such as project management, quality, internal control and procurement. Objectives under the MBO system and connected to incentives in place were misaligned with the Bank’s prime goal of reducing the cost-to-income ratio, a problem which this WP sought to solve. Also, the present WP proposes a hybrid approach to BSC design.