BRANCH PERFORMANCE MANAGEMENT SIMULATION
(BranchSim Version 2.2)
© 2010 Belgian Bankers Academy
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1. Introduction 5
1.1. Objectives of the Simulation Programme 5
1.2. Description of the Simulation Programme 5
2. Overview 6
2.1. Description of the Variables 6
2.1.1. Major Decision Variables 6
2.2. Initial Conditions 6
2.3. Description of the Branch 7
2.4. Economic Environment 11
2.5. The Three Market Segments 12
2 Description of the Simulation Programme
Branch Performance Management is a simulation programme where participants in management teams make business decisions over a number of periods (quarters). Decisions made by the management teams are by way of a decision form that forms the basis of input to the computer simulation programme.
The simulation programme utilises all the input of the various teams in order to calculate the results of each team within a competitive environment. Results are given by way of management reports comprising of figures and various graphics (pie charts) indicating specific teams’ position within the market place.
1 Description of the Variables
1 Major Decision Variables
The simulation highlights the following six areas which have to be managed optimally in order to maximise the overall profitability of the branch:
1. the customer management to increase the profitability of each segment and product range, as well as the customer satisfaction;
2. the marketing management to stimulate the sales of products as well as the image of the bank;
3. the management of the distribution channels in function of the customer segments and the services/products in order to increase the customer value and reduce the cost for the bank;
4. the process and operations management to lower the cost for the bank and to increase the customer value by redesigning the processes;
5. the human performance management to increase productivity;
6. the financial management, considering the branch as a sales and service unit.
2 Initial Conditions
Participants are divided into branch management teams, with a maximum of eight teams in a banking industry. Each team manages a branch over five (5) to eight (8) quarters, or fifteen (15) to twenty-four (24) months. Branches are competing against each other for market share within a competitive environment.
All the branches start in the same position having identical portfolios of loans, deposits and off-balance sheet activities. You will commence now by making your own decisions for quarter 4.1.
At the point where you as a team take over the management of the branch, the position of the branch is as indicated on page 6 – The Initial Position (Period 3.4).
3 Description of the Branch
The branch is currently a typical universal bank branch and has the following structure:
Personnel Complement of the Branch
|Position |Quantity |Segment |
| | |General |A |B |C |
|Branch Manager |1 |1 | | | |
|Credit Manager |1 |1 | | ...