IT PERFORMANCE PLANNING

Are you a strong good or weak CFI when it comes to Technology?

Taking into account the limitations of today’s IT leadership and planning, what are some of the benchmarks to look for in effective Community Financial Institution’s  (CFI’s) IT management? As you well know, Financial Institutions have always been highly attuned to the performance of each and every department. The difference today is that the measurement scope must go beyond quantifying loans or response to marketing efforts to include getting the most out of your IT Enterprise.

A “Good CFI” has a firm grasp of how technology directly affects efficiency ratios, from NOI per employee and Asset Growth to Return on Equity and Shareholder Value. Other traits of Good CFI’s include fewer IT workers, higher wages and asset growth as much as five times faster.

The virtues of a ‘Good’ Technology CFI also include:

1. A progressive attitude toward technology
2. Calculated, strategic spending
3. Measurement of program results at an executive and board level
4. Naturally exceeding regulatory requirements

Now, the bad news:“Bad” Technology CFIs view IT more as an expense than an investment, something to endure rather than a value-building asset.

The shortcomings of a ‘Bad’ Technology CFI include:

1. Under-qualified, underpaid management
2. No IT representation at executive level
3. A lack of strategy and best practices
4. Technology guided by regulatory requirements

Where does your organization stand? Like most organizations, yours may have its own particular mix of good and bad IT practices. Regardless, collaborating with Compushare at any level will give you a fresh perspective on IT as a performing entity, one that executes on strategy, generates profits, retains customers and builds franchise value.