Client Situation
Our client is the largest private sector bank in India with an Asset book of $220Bn, with 4,000+ branches across India. As part of the strategic review of its performance measurement framework of the executive leadership, the client mandated Cedar to help with the design of Individual Performance Measures (IPMs) for the managing director and 2-whole time directors. The framework design was completed and accepted mandating Cedar to complete its implementation as a part of its way forward.
Cedar’s Approach
In this program, Cedar was mandated by the client to design individual performance measures using the Balanced Scorecard framework followed by carrying out its implementation.
- Conducted an internal review of the bank and its PMS framework.
- Reviewed the measurement process in place at that time.
- Assessed the alignment of enterprise and individual level measures.
- Conducted a detailed review of the recommended terms and conditions related to vesting, exit, claw-back under an RBI regulatory standpoint.
- Reviewed the correct mechanism and its alignment to global and regional best practices.
- Conducted 9 internal and 3 external strategic one-on-one interviews.
Outcome
This program resulted in the successful implementation of the designed IPM’s recommended to the client under the Balanced Scorecard framework.
- Recommended Individual Performance Measures for the executive leadership using the balanced scorecard framework and helped the bank with its implementation
- Developed and presented a sensitivity analysis on recommendations.
- Provided clear guidance on the target setting process aligned to the bank’s strategic plan and budget drawn out for the new financial year.
- Cedar recommendations were approved by the Board.
- Successfully assisted the client in the implementation of the IPMs recommended under the balanced scorecard framework.