Sample Plans

Implementation

This is a general list of steps to getting the ball rolling with our outsourcing service.  The time necessary to get all this done depends on a number of factors, particularly the size and complexity of the institution, but in general this process will take three to six months for the "average" community bank.

We have spent a considerable amount of time finding ways of making this process as non-invasive as possible.  We collect some detailed information and communicate with your staff to make sure our results are accurate and reasonable, but realize and appreciate the work this requires of your staff as well.  Wherever possible, we make use of technology that will make all of our efforts more productive.  We have refined the use of the web-based surveys, phone conferencing, and structured interviews to the point where our clients feel very little disruption.

Implementation Plan

1. Introduction of Kafafian Group staff to selected Bank staff
2. Collect client application and general ledger data files
3. Determine funds transfer pricing and capital allocation methods
4. Collect additional information like organizational chart, bank staff data
5. Interview bank staff to develop cost allocation rules
6. Discuss reporting structure details like product list and profit centers
7. Apply rules and methods to profitability application, generate initial results
8. Prepare management reporting
9. Review results with selected bank staff

Processing

Once all the setup is done, the regular processing begins.  Following is a list of the general steps in this phase.  We offer flexibility in terms of planning our meetings in concert with your internal recurring meetings.

Please note that a reasonable time frame for the processing of the results depends in large part on the speed at which we receive good results from you.  Delays frequently emerge from receiving data in irregular formats and from not being informed about major changes in the structure of the information.  For example, please let us know beforehand if you add branches, change the responsibility center structure, or even perform a system conversion of some kind.  Also, getting general ledger data that does not reconcile to your financials frequently adds significant time to our processing schedule.

Processing Plan

1. Obtain application files immediately after the quarter ends (loans and deposits, possibly including investments and borrowings)
2. Process funds transfer pricing
3. Obtain additional information as necessary (employee stats by center, etc.)
4. Obtain general ledger data and financial reports after the books are closed for the period
5. Balance ledger data to financials
6. Adjust rules for new accounts, centers, products
7. Apply funds transfer pricing data to balance sheet
8. Generate management summary of profitability results and detail reports, such as peer group comparisons
9. Kafafian Group staff present results to bank staff in an interactive session incorporating peer data