Become a More Effective Banking Executive

BECOMING A MORE Effective BANKING EXECUTIVE Where are the executives? • Executives are hired to drive the company strategy and to resolve complex problems. Rather than focusing on roles they are hired to do, executives handle burdensome tasks like creating and analyzing reports on their financial institution's performance. Where do bank executives spend their time? 2 HOURS 2 HOURS CEOS Conference calls Phone calls 2 HOURS CEOS spend the majority of their Public events 55-hour work week in meetings and 5 HOURS 18 HOURS on the phone. Having a finance chief Business meals Meetings or operating chief on staff reduced 55-HOUR meeting time by about 5.5 hours per 6 HOURS WORK WEEK week and freed them up from the Working alone burden of digging through monthly company reports. 20 HOURS Misc (Travel, exercise, untracked time) Y Finance Executives 3 HOURS 5 HOURS Tax & Regulatory Work Raising Capital & Managing Cash The typical bank finance executive 11 HOURS Transaction Processing & Reporting works a 53 hour week with 8.5 hours of that time spent travelling. Unfortunately, 7 HOURS the finance staff spend just 4.6 percent Process 53-HOUR of their time on planning and setting Management & Improvement WORK WEEK company strategy, and a meager 2.9 percent analyzing potential M&A targets 10 HOURS Performance 8 HOURS Risk Management which are often the areas where they Management bring the most value. 9 HOURS Strategy & Leadership What would executives like to spend their time on? While most executives spend a lot of time measuring performance and analyzing reports, executives admit they would rather be focused on other priorities: Setting company CEOS strategy, being the spokesman, serving on expressed a boards, keeping up on industry. CEO desire for more alone 43% time to think through issues and strategize. of senior executives in the banking industry said Do not that-over the next two years-they and their disturb colleagues will be spending most of their time and energy on initiatives related to increasing operational efficiency and reducing costs. 6% 2% Changes to flnanclal Changes in business model processes 7% Strategic divestiture of 19% current assets Improvement of operatlon processes 8% Improve enterprise risk management programs/processes Top initiatives on the mind of 18% management: 12% Navigating changes In the regulatory Merger/acqulslt lon environment 13% Investment In new product development, prlclng strategles, and geographlc 15% Cost reduction inltlatives expanslon How much time is wasted analyzing bank and branch performance? There is growing frustration with executives and their finance teams regarding the reports they need to produce for board meetings and planning. In fact, on average, it takes three people, three days to prepare financial portion of the monthly board report. 46% 63% 31% 27% 26% of flnance professionals belleve that they produce reports that are never used belleve that senlor feel that the data in stated that the data feel that it takes managers should make more use of Is inaccurate the reports they recelve is out of too long for the finance flnanclal date department to produce a report Information. What are the effects of having insufficient or old financial data? CEO/CFO can't make Board of Directors can't Branch managers can't informed strategic decisions that positively identify or act upon critical make immediate staff, trends or issues because process or procedure improvements because quantitative information is affect financial they have to sort through minutia in a myriad of performance spreadsheets. outdated or unavailable Wouldn't it be great if there was a way to have all the financial and performance data for your financial institution available at the click of a button? DELUXE, CORP Sources: IT-Director: http://www.it-director.com/enterprise/finance/news_release.php?rel=33922 Vistage Connect: http://blog.vistage.com/business-strategy-and-management/are-you-working-on-your-business-or-for-your-business/ CFO.com: http://www.cfo.com/chart.cfm/4452504/57option=5 WSJ: http://online.wsj.com/article/SB10001424052970204642604577215013504567548.html