Successful integration
Information management

Organizational structure and balanced scorecard for the IT department of a large Spanish bank


Challenge

Our client, a large Spanish bank, was migrating between two mainframe platforms as well as undertaking the IT integration of a regional bank. The information systems (IS) function was in bad shape in terms of cost-efficiency, project management, account management and management tools. 


The IS division asked Arthur D. Little to analyze its organizational structure and make recommendations to improve its performance. It also asked us to develop a pilot balanced scorecard (BSC) for its production department.
 

Approach

We interviewed key employees of the IS division (top and middle management), covering all departments. 


Following this, we adopted a three-stage approach: 

 

Analyze IS task structure across the whole organization, based on a set of typical, state-of-the-art IS functions. Our analysis concluded with an assessment of strengths and weaknesses based on benchmarking and best practices in the industry.

  • Evaluate different organizational models for the IS division
  • Develop a detailed description of the target organization and its roles and functions, internal processes and implementation planning.
  • Through our analysis, we identified 14 main initiatives that would strengthen project, account and resources management. 

 

For the balanced scorecard, we adapted the key principles of BSC methodology to meet the bank’s requirements. The project was structured in three phases:

  • Analysis of the existing management tools in comparison with a standard BSC tool
  • Definition of the mission, vision and strategic objectives of the IS division
  • Development of a pilot BSC for the production department, including a sample linking strategic indicators and key performance indicators (KPIs).

 

The balanced scorecard allowed the client to translate its vision into concrete objectives and measures for the production department and, as a result, improve performance monitoring.
 

Value

Following the implementation of our recommended organizational structure and the balanced scorecard, our client saw a 40% improvement in the efficiency of the IS division.

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