Is there a need for a business review?

Published: May 14, 2009 by Jeff Bernstein

Currently, financial institutions focus on the existing customer base and prioritize collections to recover more cash, and do it faster. There is also a need to invest in strategic projects with limited budgets in order to generate benefits in a very short term, to rationalize existing strategies and processes while ensuring that optimal decisions are made at each client contact point.
To meet the present challenging conditions, financial institutions increasingly are performing business reviews with the goal of evaluating needs and opportunities to maximize the value created in their portfolios. Business reviews assess an organization’s capacity to leverage on existing opportunities as well as identifying any additional capability that might be necessary to realize the increased benefits.

An effective business review covers the following four phases:

  • Problem definition: Establish and qualify what the key objectives of the organization are, the most relevant issues to address, the constraints of the solution, the criteria for success and to summarize how value management fits into the company’s corporate and business unit strategies.
  • Benchmark against leading practice: Strategies, processes, tools, knowledge, and people have to be measured using a review toolset tailored to the organization’s strategic objectives.
  • Define the opportunities and create the roadmap: The elements required to implement the opportunities and migrating to the best practice should be scheduled in a phased strategic roadmap that includes the implementation plan of the proposed actions.
  • Achieve the benefits: An ROI-focused approach, founded on experience in peer organizations, will allow analysis of the cost-benefits of the recommended investments and quantify the potential savings and additional revenue generated. A continuous fine-tuning (i.e. impact of market changes, looking for the next competitive edge and proactively challenge solution boundaries) will ensure the benefits are fully achieved.

Today’s blog is an extract of an article written by Burak Kilicoglu, an Experian Global Consultant

To read the entire article in the April edition of Experian Decision Analytics’ global newsletter e-news, please follow the link below: