Popko de Vlugt & Kees Timmers

Balancing functions &techniques

Balanced Scorecard ING BANK

Agenda

• Introduction• Challenges and strategy• Implementation of the Balanced Scorecard• Balancing Techniques

ING Group

• Global financial institution of Dutch origin• In 60 countries with over 80,000 employees• Total assets over 482 bln (4thq. 1999)• Offers integrated financial services to retail, corporate

and institutional clients• Through many divisions operating under own label• ING carefully balances ineterests of its customers,

shareholders and employees

Seven years results ING (in Euro’s)

0,0001,0002,0003,0004,0005,0006,0007,000

1992 1993 1994 1995 1996 1997 1998 1999

Result before taxation Net profit

Organisational structure(as of 1 Januari 2000)

ING Corporate & Investment Banking ING Asset Management

ING Direct e-Business

ING Europe ING Americas ING Asia/Pacific

Executive boardING Group

Supervisory boardING Group

Strategic challenges

• Strategic challenges• Higher demands of customer• More options due to technology, new players• More difficult to meet financial requirements

…Necessitates more focus on activities

• Alignment of strategy and organisation

Strategy

• Customer partnership• Client chracteristics ordening principle of organisation

…Different segments, with different demands

Balanced Scorecard: Users & usage

• Primary users: Mid-level sales management inbranches as well as headquarters departments

• Management attitude• Self-management and communication, instead of control• Uniformity of goals, different ways to achieve them

• Offer more than financial information• Is reprospective• Is short-term focused• Has little explanatory power

Balanced Scorecard: Distribution

• Via Intranet• Figures and analyses by slice and dice• Benchmarking

• Step by step implementation• Use of tools has to set itself

Lessons learned

• It takes a lot of time, persuasion and matrix movements• Communication: workshops, intranet, leaflets, etc.• In line with users learning curve

• Keep it simple• Define comprehensive phases• Clearly environment: quality assurance, planning & budgetting,

audits• Mobilize senior management in reporting demands

Hurdles

• Budget discussions, how to manage the expectations• BSc concept is innovative, play save in technicals• Users objections

• Give me more, woth this I can’t work• Give me basis information, then I’ll look at strategics, BSc

How has the BSc affected decisions

• Planning & budgetting in 4 perspectives• Commercial floor level

• Steering in activities• Management level

• Reporting in 4 levels• Investment/project decisions• Turn-around management

Next ambitions

• In 3 years 90% of personnel has a BSc• Embedded in management information concept:

• Functional: get what you need• Technical: portals

To be continued

• Kees Timmers

Balancing techniques

• eNiklas (Netherlands) B.V.• Present situation• (near)Future situtation• Next phase• Demo

eNiklas

• A new e-company• eSolutions• Analytical-, Business- & IT consulting

To help companies explore their potential togrow

www.eNiklas.com

Present situation

• One-level of information• Web-publishing• SAS/Base only• A lot of SAS programs (Base,

SCL & Macro’s)• Data on UNIX, Web-pages on

NT• Not flexible enough• Not very interactive• Completely tailor made

Goals

• Flexible BSc-tool• Scorecard for each segment• Scorecard for each organisational level• Scorecard for more ING companies

• Data-driven back-end• Interactive front-end• With the use of standard tools• Iterative approach

Near-future situation

• SAS/Version 8• Metabase• UNIX server

•Warehouse•SAS/IntrNet•Webserver

• Combining tailor-made & SASV8 standard tools•Using the MDDB & SAS/IntrNetMDDB Report Viewer

• One tool for simple & complexreporting

Metabase

Next phase

• Using BSc as a web-portal• Strategic Vision?• Publish & subscribe• Messaging

Demonstration