I love baseball.
Needless to say, I enjoyed the movie Money Ball. If you haven't seen it, the main character changed the game of professional baseball. The manager of an underdog team with very little money chose players strictly on their historic ability to get on base.
Other teams continued to choose players based on the "gut feel" method. A player's looks or even fan support might get him on the team. For the Money Ball team it was all about the numbers.
Other teams continued to choose players based on the "gut feel" method. A player's looks or even fan support might get him on the team. For the Money Ball team it was all about the numbers.
To effectively manage efficiency risk, community banks must adopt the "money ball" concept. Most financial institutions, including very large organizations, do not track the numbers. Most banks do not track individual personnel productivity.
Many organizations track sales performance, but banking is a game of nickels and dimes. In order to be highly successful, banks must track individual personnel productivity at all levels throughout the bank.
This is why high performers leave your bank. They are not chased or challenged. When a bank fails to track productivity, the result we find is that at least 33% of the staff are poor performers. You don't realize they are poor performers because they show up to work on time, and they have a great attitude.
The game has changed for the community bank. To win going forward, your most valuable resource might be the new college grad with her nifty spreadsheet and fresh perspective.
What is your opinion - measure productivity or not?
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