Activity–Based Management for Financial Institutions. Driving Bottom–Line Results. Wiley and SAS Business Series

  • ID: 2219931
  • Book
  • 224 Pages
  • John Wiley and Sons Ltd
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Praise for Activity–Based Management for Financial Institutions

Driving Bottom–Line Results

"Brent′s book astutely addresses the common struggles of ABC/M value realization. The issues are seldom the design, but the implementation of ABM and a well–planned organizational change management discipline to drive sustainable change and business benefit. Activity–Based Management for Financial Institutions is a must–read for practitioners trying to maximize the value of ABC/M regardless of the industry."
Allen Friedman, President, Americas, Celerant Consulting

"Activity–Based Management for Financial Institutions puts the emphasis of ABC/M where it belongs on shareholder value. Brent′s methods for driving change within organizations work. I have personally witnessed millions of dollars in benefits as a result of using the organizational change process detailed in this book. For those people seeking to really make a difference using ABC/M, read this book!"
Jeffrey Kelly, CFO, RenaissanceRe Holdings Ltd., former vice chairman, National City Corporation

Evaluate your institution′s processes and improve its decision–making and its bottom line all through Activity–Based Management (ABM)

Turn to Activity–Based Management for Financial Institutions: Driving Bottom–Line Results for cutting–edge guidance about:

  • Costing, chargeback, and pricing

  • Bank branch profitability

  • Implementing activity–based costing (ABC)

  • Implementing ABM

  • Structuring your organization and process for success

  • ABC/M in shared services

  • Managing organizational change

  • The importance of organizational change management

  • Avoiding the pitfalls: lessons learned

  • Beyond ABM

Designed to help you actually drive bottom–line results rather than help you make the most technically sophisticated ABC model Activity–Based Management for Financial Institutions: Driving Bottom–Line Results is filled with the templates, tools, and techniques that work to improve your odds of a successful ABC/M implementation.

Delivering valuable lessons for any financial institution thinking about ABM, about to start ABM, or even recovering from a failure with ABM, author and industry leader Brent Bahnub draws from his years of experience to show you what works . . . and what doesn′t.

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Foreword ix

Preface xv

About the Website xix

Acknowledgments xxi

Chapter 1 What Are ABC and ABM? 1

What Is ABC? 1

What Is ABM? 7

Chapter 2 Costing, Chargeback, and Pricing 13

Define Your Objectives 13

Costing: Absorption Choices 19

Costing: Driving Costs from Support Areas 24

Chargeback 27

Rates 34

Bank Branch Profitability 41

Pricing 44

Chapter 3 Implementing ABC 55

ABC Implementation Guiding Principles 55

Model Rules, Assumptions, and Design Documents 59

Driver Decisions 60

Attribute Decisions 62

Level of Detail Decisions 66

Tools 69

Activity and Driver Dictionaries 70

Putting It All Together: An ABC Example 72

Chapter 4 Implementing ABM 83

Structuring the Organization and Process for Success 83

Differences between ABM and ABC Staffing 100

Project Portfolio Management 101

Driving Results 107

Additional Considerations for Financial Services 113

Chapter 5 ABC/M in Shared Services 121

Starting ABC/M with Shared Services 121

Communication Barriers 122

Expected Dialog for Planning 124

Integrating the IT Model 129

Driving Value within Shared Services: IS Examples 137

Chapter 6 Managing Organizational Change 143

Importance of Organizational Change Management 143

Organizational Readiness and Overcoming Resistance 145

Your Role as Change Agent 153

Chapter 7 Avoiding the Pitfalls: Lessons Learned 161

ABC Lessons Learned 161

ABM Lessons Learned 171

Chapter 8 Beyond ABC/M 179

Portable Skills 179

Adjacent Careers 184

In Conclusion 189

Appendix ABC Model and Cost Object Reporting Rules and Assumptions 191

Modeling Rules and Assumptions 191

Cost Object Reporting Rules and Assumptions 193

Index 195

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Brent Bahnub is Senior Vice President and Director of Business Intelligence with First Niagara Bank. He has fifteen years of costing, process improvement, and performance management experience. He designed and implemented several activity–based costing and chargeback systems for multibillion–dollar clients, driving millions of dollars to the bottom line. Over his eight years in external consulting, he has worked at several Fortune 500 financial institutions, implementing activity–based costing, process improvements, and performance management projects. He began his career as a development engineer at IBM, where he coauthored four patents.
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