Halifax - Performance Of Branch 5446

1.0 SUMMARY

The performance of branch 5446 was evaluated against the perspectives of Human Resources, Operations, Markets, Finance and Accounting, and Information, which are associated with the Halifax’s Balanced Scorecard quadrants and theory �Z’.

The main concerns were HR management and Information flow, although all perspectives had areas to improve.

It was concluded that working with the current manager, building on his experience should improve the branches performance and build it to excel.

Primary recommendations were to give the branch manager formal training and to link the BSC to corporate strategy. Resources need to be made available to assist the branch manager.

2.0 INTRODUCTION

This report seeks to analyse the problems facing Branch 5446 and it’s branch manager. Assessment of the reasons for the problems are taken from the perspectives of Human Resources, Operations, Marketing, Finance and Accounting, and Information, with recommendations being made to improve the performance of the branch.

3.0 PROBLEM OVERVIEW

The branch is under performing in all areas of the Balanced Score Card (BSC) as implemented by the Halifax (Kaplan & Norton 1998). The 4 quadrants of the BSC and the Halifax’s �Theory Z’, and the problems facing the branch manager are compared against the 5 key perspectives of performance management.

Fig. 3.1 THE BALANCED SCORECARD AS IMPLEMENTED BY THE HALIFAX

3.1 STAFF DEVELOPMENT AND IMPROVEMENT (HUMAN RESOURCES)

- Incorrect application of HR management.

- Branch culture at odds with corporate culture.

- The Halifax BSC is weak in HR.

- Individual objectives are not linked to organisational objectives.

3.2 INTERNAL PROCESS PERSPECTIVE (OPERATIONS)

- Poor resource management.

3.3 CUSTOMER PERSPECTIVE (MARKETS)

- Branch is not market-led.

- Staff abilities do not support the high credence service.

3.4 FINANCIAL AND BUSINESS PERSPECTIVE (FINANCE AND ACCOUNTING)

- BSC is not linked to corporate strategy.

3.5 THEORY �Z’ (INFORMATION- CROSS FUNCTIONAL)

- BSC information not shared with staff.

- BSC does not provide an external view.

4.0 PROBLEM ASSESSMENT

4.1 STAFF DEVELOPMENT AND IMPROVEMENT (HUMAN RESOURCES)

4.1.1 Incorrect application of HR management

Shortcomings in HR management are highlighted against work by Beer et al. (1985). HR management is broken into 4 separate areas which all contributing to the problems at branch 5446.

Fig. 4.1 HUMAN RESOURCES FRAMEWORK (BASED ON BEER ET AL. 1985)

It is apparent that the current manager does not have the time or abilities to manage Human Resources effectively. This is resulting in the managers being stressed and underperforming. As a result reporting staff are poorly managed.

Analysing the managerial roles (Branch and Counter managers) shows that all Handy’s (1993) role-based sources of tension are present.

(Fig 4.2 below)

Fig. 4.2 ROLE BASED SOURCES OF TENSION (BASED ON HANDY 1993)

4.1.2 Branch culture at odds with corporate culture

”The Halifax way: Delight the customer, Support each other, Do it superbly” and ideals to “promote a positive culture” (Mee and Fenton-O’Creevy, Course Reader, pg 19/20-6 &7) are at odds with a branch culture that lacks teamwork and fosters blame. Having spent 18 years with the Halifax, the branch managers’ preconceived mindsets may also be hindering harmonisation with corporate culture.

4.1.3 The Halifax BSC is weak in HR

Figure 4.3 measures the Halifax BSC against 5 criteria for evaluating HR policies (Fenton-O’Creevy, Course Reader, pg 5-18).

Fig. 4.3 5 CRITERIA FOR EVALUATING HR POLICY (BASED ON FENTON- O’CREEVY 2003)

This shows that the Halifax BSC does not provide adequate information for the branch manager to perform a critical analysis of branch HR policy.

4.1.4 Individual objectives are not linked to organisational objectives.

Without links between corporate,