Results of Balanced Scorecard on Performance

During the fiscal year ended June 30, 2008, the South Division of Tri-Cities
Community Bank implemented a Balanced Scorecard on all of its five branches.
Each manager was allowed to use his/her individual style in implementing the BSC;
and data/results were gathered to determine whether the program was successful
or not.
A comparison of the companys two divisions performance last year is shown
below:

Tri-Cities Community Bank

Division Growth Comparison
25.00%

20.00% 8.56%

15.00%

6.23%
10.00%

5.00% 8.93% 3.11%

1.49%
1.94%
0.00%
South North

Loan Balance Deposit Balance Non-Interest Income

Figure 1

The data shown on Figure 1 shows the aggregate growth in the financial
performance of companys two divisions. The South Division managed to increase
its financial performance last year by 23.7% compared to the North Divisions
6.54%; boasting a difference of 17.19%. It is also presented that the South Division
was able to outperform the North Division in the Loan Balance, Deposit Balance, and
Non-Interest Income financial measures. Since no unusual business situations
occurred during the year, it is safe to assume that any changes in performance
among the adopting branches can be attributed to the implementation of a BSC. It
is also safe to assume that South Divisions performance was considerably a huge
improvement from last year.
 Tri-Cities Community Bank
Branch Growth Comparison
40.00%

35.00%

30.00% 11.60%
15.82%
25.00%
7.27%
20.00%
3.06% 9.92%
15.00% 10.52%
5.43%
10.00% 3.15%
16.90%
13.55% 7.38% 4.00%
5.00% 9.47% 4.64%
2.99%
3.55% 4.40% 0.51% 2.29% 4.71%
1.02%
0.00% 0.93% 2.39%
-0.29% 0.35%
0.00% 1.53% 0.59%
-1.13% -1.29%
A B C D E F G H I J
-5.00%

Loan Balance Deposit Balance Non-Interest Income

Figure 2

To gain further compare the financial performance of the companys two divisions,
Figure 2 shows the growth of each of the companys ten (10) branches (A-J).
Based on the data given above, it is clearly shown that almost all branches of the
South Division (A-E) showed significant increases compared to the North Division (F-
J) in all of the financial measures, except for branch E which showed the poorest
performance compared to the others. Even though branch E implemented the BSC
like the other branches in the South Division, its poor performance may be
attributed to the implementation style of the management since all managers were
allowed to apply the BSC in their own way.