Abstract:

Traditional performance measures have failed to   offer the best services. Managers have become disillusioned with these "trailing" performance measures in most of the banks because they have not helped them run the business effectively. With heavy investments in banking technology, banks are in need of performance measures that offer predictive power and provide a better understanding of real costs associated with each process. Most Banks look only at financial results to measure performance. But top performing banks today use a balanced set of key performance measures. Key performance measures guide both management and employees in their effort to increase customer satisfaction and shareholder value. However, there is scope for using a Balanced Scorecard to evaluate and appraise performance. A Balanced Scorecard helps to communicate strategic direction, establish performance categories, baselines and targets and thereby ensure achievement of targeted goals. In this paper, an attempt is made to illustrate how a cascade of balanced scoreboards can be instrumental in the effectiveness of banking technology in Indian Banks. The Banking Technology Balanced Scorecard focuses on user orientation, corporate contribution, operational excellence and future orientation. A framework for application of the model to ensure better performance measurement has been attempted in this paper.