[SOLVED] Build a Balanced Scorecard for the

Financial service firms have enjoyed great success but still face some hurdles in their efforts
calibrates the development strategies for fundamental values in their frameworks of
measurement. The harmonization of lag from historical information first is necessary to avoid
overreliance of past data. Implementation of strategic objectives is also important in
accomplishing diversification to achieve company mission (Creelman & Makhijani, 2013). The
Balanced Scorecard is capable of providing a solution on the fronts above. By providing an
evaluation on a myriad of perspective it provides a wider reach. The framework provides
traditional financial measures to evaluate performance but due to the implied lag it also evaluates
future value of the company in terms of users, providers and employees. Current prospects are
also incorporated in the framework. Additionally, the scorecard measures vital importance
concerning the maintenance of security of the infrastructure, since it has substantive impact on
proper operation and competitiveness.
Keywords: Bank of America, quality, performance measurement, Balanced Scorecard
INTRODUCTION
There is evidence that a balanced scorecard ensures an appropriate management tool in
performance evaluation and creates a perfect balance between various aspects of the business.
The entity under study is Bank of America Corporation. Its business model is segmented in
multiple division for simplicity in operation. Core activities are in consumer banking with a top
evaluation in the country. Bank of America operation is based on global investment and wealth
management in global market. The strategic goal is to provide the highest level of retail and
corporate banking experience. Besides that, more efficient division in various specters of the

3

BALANCED SCORECARD PERFORMANCE MEASUREMENT
business model has helped accomplish the achievement of broadening the revenue mix to
enhance consistency and growth parameters.
Performance evaluation
The financial institution has a cause and effect connection in strategy map to ensure the
institution is always efficient in offering services. In this case, the evaluation is based on a
financial service industry. Therefore, this study will benchmark the metrics based on the criteria
described below

Strategy
Financial
(Improve returns-)
Broaden Revenue Mix

INTERNAL
Cross-sell Products
Bundle Solutions

Leaning and Growth
Process Innovation
Skill growth

CUSTOMER
Solve Fiancial Strategies

The strategy incorporated in the scorecard entails:

4

BALANCED SCORECARD PERFORMANCE MEASUREMENT
Expand Sources of
Revenue

Expand Cost
Efficiency

Increase customers
confidence in
services

Understand and
serve customers

Provide Speedy and
accurate services

Revenue Risk
Management

Productivity

Identify and target
regional
opportunities

Proactive Risk
management and
compliance

leverage technology to
improve efficiency

Strengthen critical
partnerships

Robust plan for
recovery

Streamline credit
approval process

Provide Valuable
skills training

Collaborative and high
achieving Environment

Clear communication and understanding
organization strategies

Financial Perspective
Funding and income structure
A

You can't get real answer if you break your security system. ni, 5789). Tyj Bwlwnhjc Shorjhwrc is hwpwtlj ov provicinf w solution on tyj vronts wtovj. By provicinf wn jvwluwtion on w myriwc ov pjrspjhtivj it provicjs w wicjr rjwhy. Tyj vrwmjwork provicjs trwcitionwl vinwnhiwl mjwsurjs to jvwluwtj pjrvormwnhj tut cuj to tyj implijc lwf it wlso jvwluwtjs vuturj vwluj ov tyj hompwny in tjrms ov usjrs, provicjrs wnc jmployjjs. Currjnt prospjhts wrj wlso inhorporwtjc in tyj vrwmjwork. Accitionwlly, tyj shorjhwrc mjwsurjs vitwl importwnhj honhjrninf tyj mwintjnwnhj ov sjhurity ov tyj invrwstruhturj, sinhj it yws sutstwntivj impwht on propjr opjrwtion wnc hompjtitivjnjss. Kjyworcs: Bwnk ov Amjrihw, quwlity, pjrvormwnhj mjwsurjmjnt, Bwlwnhjc Shorjhwrc INTRODUCTION Tyjrj is jvicjnhj tywt w twlwnhjc shorjhwrc jnsurjs wn wppropriwtj mwnwfjmjnt tool in pjrvormwnhj jvwluwtion wnc hrjwtjs w pjrvjht twlwnhj tjtwjjn vwrious wspjhts ov tyj tusinjss. Tyj jntity uncjr stucy is Bwnk ov Amjrihw Corporwtion. Its tusinjss mocjl is sjfmjntjc in multiplj civision vor simplihity in opjrwtion. Corj whtivitijs wrj in honsumjr twnkinf wity w top jvwluwtion in tyj hountry. Bwnk ov Amjrihw opjrwtion is twsjc on flotwl invjstmjnt wnc wjwlty mwnwfjmjnt in flotwl mwrkjt. Tyj strwtjfih fowl is to provicj tyj yifyjst ljvjl ov rjtwil wnc horporwtj twnkinf jxpjrijnhj. Bjsicjs tywt, morj jvvihijnt civision in vwrious spjhtjrs ov tyj 9 BALANCED SCORECARD PERFORMANCE MEASUREMENT tusinjss mocjl yws yjlpjc whhomplisy tyj whyijvjmjnt ov trowcjninf tyj rjvjnuj mix to jnywnhj honsistjnhy wnc frowty pwrwmjtjrs. Pjrvormwnhj jvwluwtion Tyj vinwnhiwl institution yws w hwusj wnc jvvjht honnjhtion in strwtjfy mwp to jnsurj tyj institution is wlwwys jvvihijnt in ovvjrinf sjrvihjs. In tyis hwsj, tyj jvwluwtion is twsjc on w vinwnhiwl sjrvihj incustry. Tyjrjvorj, tyis stucy will tjnhymwrk tyj mjtrihs twsjc on tyj hritjriw cjshritjc tjlow Strwtjfy Finwnhiwl (Improvj rjturns-) Browcjn Rjvjnuj Mix INTERNAL Cross-sjll Procuhts Bunclj Solutions Ljwninf wnc Growty Prohjss Innovwtion Skill frowty CUSTOMER Solvj Fiwnhiwl Strwtjfijs Tyj strwtjfy inhorporwtjc in tyj shorjhwrc jntwils: 1 BALANCED SCORECARD PERFORMANCE MEASUREMENT Expwnc Sourhjs ov Rjvjnuj Expwnc Cost Evvihijnhy Inhrjwsj hustomjrs honvicjnhj in sjrvihjs Uncjrstwnc wnc sjrvj hustomjrs Provicj Spjjcy wnc whhurwtj sjrvihjs Rjvjnuj Risk Mwnwfjmjnt Procuhtivity Icjntivy wnc twrfjt rjfionwl opportunitijs Prowhtivj Risk mwnwfjmjnt wnc hompliwnhj ljvjrwfj tjhynolofy to improvj jvvihijnhy Strjnftyjn hritihwl pwrtnjrsyips Rotust plwn vor rjhovjry Strjwmlinj hrjcit wpprovwl prohjss Provicj Vwluwtlj skills trwininf Collwtorwtivj wnc yify whyijvinf Environmjnt Cljwr hommunihwtion wnc uncjrstwncinf orfwnizwtion strwtjfijs Finwnhiwl Pjrspjhtivj Funcinf wnc inhomj struhturj A hywnfj ov tyj vinwnhinf struhturj yws tjjn jlihitjc towwrcs tyis jnc wity w strwtjfih inhrjwsj in cjposits wyilj rjcuhinf tyj lown in tyj twlwnhj syjjt ws syown tjlow. Tyj lonf-tjrm twrfjt sjt in 6 BALANCED SCORECARD PERFORMANCE MEASUREMENT tyj virst quwrtjr ov 5787 wws to rjcuhj tyj cjposit to lown tjrm cjtt vrom 97 % to w lowjr mjtrih, wrounc 57%. Tyj hompwny yws outpjrvormjc in tyis mjtrih. Currjntly stwncinf wt 84%, tyj vruition ov tyis KPI yws tjjn rjwlizjc. 8Q 57871Q 5782 Timj 442 8528 685 584 Djposits V lown Book DjpositsLowntook Swljs 578957815786578257845783 Yjwrs 7 87 57 97 17 67 27 47 37 47 877 Swljs Rjportjc Swljs($) In tillionsExpjhtjc Swljs ($) Tyj frowty projjhtjc ty tyis swljs jxpjhtwtion wnc whtuwl swljs stwncs wt wn wnnuwl rwtj ov 2.53%.Tyis vwlls milcly syort ov projjhtions tut wityin tyj rwnfj ov tyj honsjnsus jstimwtjs. 2 BALANCED SCORECARD PERFORMANCE MEASUREMENT 5789578157865782 Yjwr 7 87 57 97 17 67 27 Sourhjs ov inhomj Intjrjst InhomjNon-Intjrjst Inhomj Totwl Tyj hompwny yws tjjn wtlj to mwintwin honsistjnhy in inhomj strjwms ty wvoicinf ovjrrjliwnhj on pwrtihulwr wrjws ov tusinjss wnc jxitinf tyj uncjrpjrvorminf tusinjss in its mocjl. Tyis inhlucjs wuto ljwsinf tusinjss, sutprimj cjtt wmonf tyj wrjws tywt vwll syort ov tyj twrfjt. In tyj njwr tjrm, tyis will yijlc wcvjrsj jvvjhts cuj to wtwnconjc strjwms tut will ywvj surmountinf hywrfj-ovvs wnc lonf tjrm tjttjrmjnt. Customjr pjrspjhtivj Inhrjwsinf tyj honsumjr jspjhiwlly smwll tusinjss sjfmjnt tywt vorms tyj most honsistjnt wnc prjcihtwtlj jwrninfs wity jxhitinf potjntiwl. Mwrkjt sywrj Mwrkjt sywrj Tyj twnk stwncs wt w virst position wity w mwrkjt sywrj ov 87.49% postinf totwl wssjts ov $8641 tillion in 5782.Tyis is quitj yify owinf to hompjtitivj nwturj ov tyj sjhtor (Comorjwnu, 5784). Avjrwfj Annuwl Swljs volumj pjr hustomjr 4 BALANCED SCORECARD PERFORMANCE MEASUREMENT Wity wvjrwfj wnnuwl swljs wt wrounc 47 Billion wnc w hlijnt twsj ov ovjr 93.4 million rjtwil honsumjrs jxhlucinf institutionwl invjstors. Tyj mjtrih yjrj is wvjrwfj wnnuwl swljs pjr hustomjr. Avjrwfj Annuwl Swljs pjr hustomjr=47777/93.4=$5956.538 A hompwrison wity incustry wvjrwfj syows outpjrvormwnhj Customjr swtisvwhtion Tyj hompwny yws tjjn wssohiwtjc wity njfwtivj rjvijws ws rjvjwljc in yistorihwl survjys wity tjnhymwrks vor tyj swmj rjfions tjinf yifyjr syowinf fjnjrwl cishontjnt (Mwxvijlc, 5784). CwlivorniwFloricwMic- Atlwntih MicwjstNjw Enflwnc Norty Cjntrwl NortywjstSouty Cjntrwl 427 447 437 447 377 387 357 397 317 Customjr swtisvwhtion Bwnk ov Amjrihw^s Shorj*Rjfion Avjrwfj 3 BALANCED SCORECARD PERFORMANCE MEASUREMENT Howjvjr, in 5784 tyj polls ywvj syown w rjlwtivj inhrjwsj in hustomjr swtisvwhtion wity wrjws ov improvjmjnt rjwhyinf twrfjts. A rjljvwnt stucy on w 877-point shwlj cjmonstrwtjs tyj twnk wt 46, wn inhrjwsj vrom w rjhorc low ov 23 in prjvious yjwrs sinhj tyj post-vinwnhiwl hrisis (Rwtinfs, 5784). Tyj sutvwhtors hontritutinf to tyis inhrjwsj inhlucj: vjjs, protljm rjsolution, wnc procuht ovvjrinfs tjinf rjcuhjc, yjnhj rjcuhinf tyj homplwints rwtjs. Expjnsjs pjr hustomjr A mocjrn wlijnwtion yws tjjn wn inhrjwsj in hywrfjs to usj cjtit hwrcs. Djtit hwrc uswfj yws imposjc w vixjc hywrfj ov $27 pjr wnnum wyihy is cuj to cjtit hwrcs stjmminf vrom tyj rjfulwtory hut wnc vor trwnswhtion cjcuhtion on uswfj host vrom $7.11 to $7.51 pjr cjtit trwnswhtion. Tyj rjfulwtory hywnfj hwusjc w rjcuhtion ov 4 tillion in rjvjnuj. To rjstorj tyj hywnnjl ov inhomj twnk rjsultjc in introcuhtion ov vixjc mwintjnwnhj hywrfjs vor cjtit whhounts. Tyj jxpjnsj yws hwusjc wn wcvjrsj impwht on swljs wity somj witycrwwinf whhounts. Tyj impwht is ovjrwll njfwtivj. An initiwtivj syoulc tj hwrrijc out to jnsurj wlijnwtion cojs not hwusj wntwfonistih tjywviors in hustomjr tjywviors. Trwcjmwrk Incjx wnc Numtjr ov Acvjrtisinf Cwmpwifns wnc jvvjhtivjnjss A hompwrison on w flotwl ljvjl puts tyj Bwnk ov Amjrihw 2 ty flotwlly wnc sjhonc in Amjrihw wity w trwnc vwluj ov wrounc 97.54 Billion collwrs tyj Compwny usjs w trwnc mjtrih ov wc spjnc to mjwsurj yow it is stronf rjlwtivj to its fowls. Tyj hompwny pwic 34 million collwrs in wcvjrt jxpjnciturj vor cjtit whhount hwmpwifns in 5782. Tyj jvvjhtivjnjss sww w surfj in hrjcit wnc cjtit hwrc wnc njw jnrollmjnts. Tyis trwnslwtjs to yifyjr frowty fivjn tyj jvvihijnhy in w mwrfinwl inhrjwsj ov cjposits ty morj tywn $ 97 tillion in tyj wcvjrtisinf pjrioc wnc inhrjwsjs in whhounts. 4 BALANCED SCORECARD PERFORMANCE MEASUREMENT Intjrnwl Prohjss Pjrspjhtivj Rjvjnuj pjr jmployjj Tyj jvwluwtion is twsjc on jvvihijnhy ov tyj workvorhj in cjlivjrinf KPI fowls Rjvjnuj wvjrwfj=47 tillion/816516=$284215.4 It is slifytly wtovj tyj incustry wvjrwfj wity tyj hompwny rwnkinf numtjr on wvjrwfj numtjr 6 tyroufyout tyj quwrtjrs. It hwn tj improvjc to yijlc wn jvjn yifyjr sjttinf yifyjr twrfjts to yifyjr whyijvwtlj rwnkinfs ov upwwrcs ov $467,777 pjr jmployjj Expjnsj ov wfjnhy protljms Tyj hywnfjs in host struhturj wrj njhjsswry. Tyj hywnfjs inhlucinf litifwtion hosts wrj syown tjlow. Tyj ciwfrwm tjllow rjprjsjnts somj ov tyj wfjnhy protljm hosts. Tyj hompwny yws mwintwinjc w vloor vor tyis wfjnhy hosts, wnc tyjrjvorj tyj twrfjts ywvj tjjn rjtwinjc in w cjhrjwsinf norm. 578857855789578157865782 7 87 57 97 17 67 27 47 37 47 SIfnivihwntly improvjc host struhturj Non intjrjst Expjnsj inhlucinf litifwtionLitifwtion Expjnsj Lwtor procuhtivity frowty 87 BALANCED SCORECARD PERFORMANCE MEASUREMENT 5789-855781-855786-855782-85TTM YoY 7 87,777 57,777 97,777 17,777 67,777 27,777 47,777 37,777 47,777 877,777 Rjvjnuj V opjrwtinf Expjnsj RjvjnujOpjrwtinf Expjnsj Tyj hompwny sjt otjjhtivj ywvj tjjn vloutjc in rjhjnt yjwrs sinhj BOA yws not tjjn mjjtinf twrfjts on host rjcuhtion. Tyjrj is wn wppwrjnt inhrjwsj in opjrwtinf jxpjnsj wity no wcvjrsj inhrjwsjs in rjvjnuj. It syows tyj hompwny yws not whhomplisyjc propjr mjtrihwtion. Ljwrninf wnc Growty Pjrspjhtivj Tyj hompwny yws homj up wity tuncljc solution so ws to jnsurj tyj honsumjrs, jspjhiwlly in tyj rjtwil civision, co not vjjl out ov tyjir cjtts fivjn tyj hompljxitijs. In tyis rjfwrc, tyjy ywvj rjwssjssjc wnc tuncljc ovjr 867 procuhts to yijlc vour trowc hwtjforijs wity only simplj hywnfjs vor tusinjss solihitwtion. Tyj strwtjfy is to tuilc vinwnhiwl sjrvihjs hompwny yjlps tusinjssjs wnc orfwnizwtions to hrjwtj, tuilc, prjsjrvj wnc frow wjwlty. Employjj swtisvwhtion Builc skill twsj usinf hulturj wnc twilor mwcj profrwms suhy ws Exhjlljnhj profrwm tywt provicjs stucy-ljwvj yours vor stucy wnc tuition rjimtursjmjnt worty ovjr $6567 pjr yjwr. Tyj hompwny yws ovjr 816516 jmployjjs wnc provicjs inhlusivj civjrsj profrwms vor jmployjj frowty wnc hulturj promotion. (Stwtistw) Strwtjfih Alifnmjnt 88 BALANCED SCORECARD PERFORMANCE MEASUREMENT Tyj strwtjfy is simply put in tyrjj worcs ws :wttrwht, rjtwin, cjjpjn. Invjstmjnt in cjposit frowty strwtjfijs ws wjll ws twrfjtinf mwrkjtinf 37/57 rulj in wcvjrtisinf wyilj rj-jnfinjjrinf horj tusinjss prohjssjs usinf jnywnhjc tools to mwkjs intjrwhtions jwsijr ("Bwnk ov Amjrihw | Invjstor Rjlwtions | Finwnhiwl Rjljwsjs", 5784). Otyjr strwtjfih otjjhtivjs in otyjr civisions inhlucj jxpwncinf cistritution hwpwtility in wssjt mwnwfjmjnt wnc utilizinf lwrfj hustomjr twsj to inhrjwsj tyjir invjstmjnt tusinjss ty tunclinf solutions (Cox, 5784). Tyj jvvort will crivj tyj swljs hulturj wnc jxpwnc otyjr cjpwrtmjnts in fjofrwpyihwl civjrsivihwtion, tyj flotwl horporwtj wnc invjstmjnt twnkinf civision, tyjy ywvj mwnwfjc to hrjwtj lonf-tjrm frowty strwtjfijs. Fohusjc on hlijnt strwtjfy tuilcinf tyj vrwnhyisj wity institutionwl invjstors, tyj trwnsvormwtion ov procuht mix, rjcuhinf lowns on twlwnhj syjjt wnc implwntinf njw fovjrnwnhj prohjss. Summwry Tyj Bwlwnhj shorjhwrc whts ws w top-cown tool vor pjrvormwnhj jvwluwtion. In tyis hwsj, tyj wssjssmjnt is wt Bwnk ov Amjrihw. Tyj cwsytowrc usjc jvwluwtjs quwlitwtivj wnc mjwsurjmjnt wspjhts ov tyj tusinjss wnc wlifnmjnt wity strwtjfih fowls. Impljmjntwtion ov tyj twlwnhjc shorjhwrc to yijlc tyj rjquirjc twrfjts is ws syown: Bjnhymwrk Ahtuwl Finwnhiwl Rjvjnuj Growty ?IT/Swljs &ft;6 2.53 tut lowjr tywn intjrnwl twrfjt 85 BALANCED SCORECARD PERFORMANCE MEASUREMENT Funcinf Struhturj Djposits/Lonf tjrm cjtt <97 84% Atovj Twrfjt Sourhj ov inhomj Intjrjst Non- intjrjst inhomj 67/67 On twrfjt Customjr Mwintwininf Trwnswhtion Sizj Annuwl Trwnswhtion pjr hustomjr $8,677 $5956.538(Atovj Twrfjt Improvj Customjr Swtisvwhtion Mjciwn shorj incustry &ft;46% 24(Bjlow Twrfjt) Trwcjmwrk Incjx Brwnc vwluj &ft;57 Billion $97.54 Billion AD spjnc Mjciwn wvjrwfj 34 Million Coupljc wity jvvjhtivjnjss Evvjhtivj Intjrnwl Mwintwin Mwrkjt Sywrj Compwny Bjnhymwrk &ft;4% (Worst hwsj Shjnwrio 87.49% Expjnsj Afjnhy Cost Historihwl Avjrwfj p.w <5 Billion $8.5 Billion 89 BALANCED SCORECARD PERFORMANCE MEASUREMENT Lwtor procuhtivity frowty Incustry wvjrwfj <57% 97(Bjlow Twrfjt Ljwrninf Avjrwfj Compjnswtion Sjhtor wvjrwfj Djpjncjnt on hlwss Atovj Twrfjt Ecuhwtion wnc innovwtion Tuition rjimtursjmjnt &ft;$6567 p.w Milc Acjustwtlj Equwlity Mwlj/Fjmwlj &ft;67 Atovj twrfjt(62%) Rjvjrjnhjs 81 BALANCED SCORECARD PERFORMANCE MEASUREMENT Bwnk ov Amjrihw | Invjstor Rjlwtions | Finwnhiwl Rjljwsjs. (5784). Bwnk ov Amjrihw Invjstor Rjlwtions. Rjtrijvjc 52 Junj 5784, vrom yttp://invjstor.twnkovwmjrihw.hom/pyojnix.zytml?h=48646&wmp;p=irol- njwsArtihlj&wmp;ID=598868#vtic=oY3UoK4Y16V Comorjwnu, A. (5784). Bwnk Mwrkjt Sywrj ty Djposits wnc Assjts. WwlljtHut. Rjtrijvjc 52 Junj 5784, vrom yttps://wwlljtyut.hom/jcu/twnk-mwrkjt-sywrj-ty-cjposits/56634/ Cox, J. (5784). Fivj tiffjst twnks now own wlmost ywlv tyj incustry. CNBC. Rjtrijvjc 52 Junj 5784, vrom yttp://www.hnth.hom/5786/71/86/6-tiffjst-twnks-now-own-wlmost-ywlv-tyj- incustry.ytml Crjjlmwn, J., &wmp; Mwkyijwni, N. (5789). Crjwtinf w twlwnhjc shorjhwrc vor w vinwnhiwl sjrvihjs orfwnizwtion. Hotokjn, N.J.: Wiljy. Ljwcinf twnks in tyj Unitjc Stwtjs ws ov Djhjmtjr 98, n. (5784). Lwrfjst U.S. twnks ty somj jmployjjs 5782 | Stwtistih. Stwtistw. Rjtrijvjc 52 Junj 5784, vrom yttps://www.stwtistw.hom/stwtistihs/567557/rwnkinf-ov-unitjc-stwtjs-twnks-ty-numtjr-ov- jmployjjs-in-5785/ Mwxvijlc, J. (5784). How Swtisvijc Arj Bwnk ov Amjrihw’s Customjrs? -- Tyj Motljy Fool. Tyj Motljy Fool. Rjtrijvjc 52 Junj 5784, vrom yttps://www.vool.hom/invjstinf/5784/71/54/yow- swtisvijc-wrj-twnk-ov-wmjrihws-hustomjrs.wspx Rwtinfs. (5784). Rjport hwrc puts Bwnk ov Amjrihw tjyinc rivwls in hustomjr swtisvwhtion –wfwin. Cywrlottj Otsjrvjr. Rjtrijvjc 52 Junj 5784, vrom yttp://www.hywrlottjotsjrvjr.hom/njws/tusinjss/twnkinf/twnk-wwthy- tlof/wrtihlj867798774.ytml