Performance Measurement Outsourcing

Senior managers at community financial institutions rely on the finance, marketing, and technology functions to provide information necessary for good decision-making. The expertise, cost, and time required to develop enterprise wide profitability models puts tremendous pressure on already scarce resources.

The Kafafian Group designed its performance measurement outsourcing service to give community banks the sophisticated profitability tools necessary and frequently used by competitors with greater resources. By utilizing our service, community financial institutions will have the information necessary to make better decisions.

We work closely with your Finance and IT Departments to identify data requirements, profit and support centers, product definitions, funds transfer pricing methodology, and cost and capital assignments. Our structured interviews and online questionnaires, allow us to profile support and front-line staff to develop tailored cost and revenue assignments. Our objective is to build a model unique to your institution and achieve project buy-in at all organizational levels.

After we build your model, we deliver the data on a periodic basis (typically quarterly), and conduct meetings with your staff to discuss results, highlight trends, compare to peers, and stimulate discussion. Our extensive experience building profitability models and analyzing results with community financial institutions across the United States has given us a wealth of institutional expertise that benefits our clients.

Does performance measurement outsourcing make sense for you? Consider the following factors:

1. Quality Information - A sophisticated profitability model tailored to your institution drives decisions that improve profits. Our professionals specialize in building profitability models and analyzing results with clients. This institutional knowledge is very challenging for community financial institutions to achieve independently.
2. Depth - The value we bring to clients does not stop at successfully building your model and delivering information. We provide insight into the meaning of the information from our deep bench of experienced consultants who have helped other financial institutions tackle a wide range of challenging issues and areas.
3. Cost - Successfully building a tailored profitability model requires a significant investment of time on the part of experienced staff. Finance, accounting, marketing, and IT professionals at community financial institutions wear many hats and frequently do not have the time necessary to get tailored models off of the ground. The complexity of profitability reporting often requires a full-time management accountant. Add the cost of specialized software, hardware, and maintenance contracts and the all-in cost can be prohibitively expensive. Now you have an alternative.