Synopses & Reviews
Praise for Activity-Based Management for Financial InstitutionsDriving 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.
Synopsis
Discover how to use activity-based management to improve your bottom line
The first book of its kind to focus on activity-based management in the financial services industry, Activity-Based Management for Financial Institutions: Driving Bottom Line Results will show you how to drive changes to your organization's bottom line.
After providing a brief overview of a financial services activity-based costing model, this book focuses on how to directly improve net income, covering essential topics including costing, chargeback, and pricing; implementing ABC; implementing ABM; managing organizational change; and avoiding pitfalls.
- Written for those in the financial services industry-banks, securities firms, insurance companies
- Reveals how to drive benefits to the bottom line through disciplined execution of activity-based management and organizational change management
- Provides real world examples and tools for quick results and sustained success
This one-of-a-kind book will take your financial institution from stuck to financially successful, driving profitability and performance.
Synopsis
Activity-Based Management for Financial InstitutionsDriving Bottom-Line Results
Instrumental in improving fact-based action, activity-based management (ABM) is a discipline that focuses on the management of activities as the route to improving the value received by the customer and the profit achieved by providing this value. While a host of Fortune 500 and other growth companies are using ABM, not all are doing so with maximum results, demonstrating clearly that proper application requires certain tools and techniques. The fundamentals needed for the effective deployment of ABM are presented and explained in Activity-Based Management for Financial Institutions: Driving Bottom-Line Results.
An important contribution to the body of knowledge of managerial accounting, and a comprehensive guide to the key aspects of ABM, Activity-Based Management for Financial Institutions provides hope for your financial institution, especially if it recognizes the deficiencies of its existing traditional costing methodology and system and wants to leverage the progressive power of information technology.
With a resourceful accompanying Web site providing the templates, tools, and techniques found in the book, Activity-Based Management for Financial Institutions explores:
How organizations are moving from measuring product and standard service-line profitability to measuring customer profitability and value
The obstacles and implementation pitfalls you can expect—along with prescriptive solutions so you can easily resolve them
How to drive activity-based costing (ABC) data to your bottom line using ABM
How your institution can drive millions of dollars of improvements through better use of ABC/M
How to clearly articulate and improve your shared services cost structure
Practical and results-driven, this solid resource explores what it will take for you—and every controller, cost manager, or CFO of a financial institution—to successfully implement the full vision of the performance management framework within your organization.
About the Author
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.
Table of Contents
Foreword.
Preface.
About the Website.
Acknowledgments.
Chapter 1 What Is ABC and ABM?
What Is ABC?
What Is ABM?
Chapter 2 Costing, Chargeback, and Pricing.
Define Your Objectives.
Costing: Absorption Choices.
Costing: Driving Costs from Support Areas.
Chargeback.
Rates.
Bank Branch Profitability.
Pricing.
Chapter 3 Implementing ABC.
ABC Implementation Guiding Principles.
Model Rules, Assumptions, and Design Documents.
Driver Decisions.
Attribute Decisions.
Level of Detail Decisions.
Tools.
Activity and Driver Dictionaries.
Putting It All Together: An ABC Example.
Chapter 4 Implementing ABM.
Structuring the Organization and Process for Success.
Differences of ABM and ABC Staffing.
Driving Results.
Additional Considerations for Financial Services.
Chapter 5 ABC/M in Shared Services.
Starting ABC/M with Shared Services.
Expected Dialog for Planning.
Integrating the IT Model.
Driving Value within Shared Services: IS Examples.
Chapter 6 Managing Organizational Change.
Importance of Organizational Change Management.
Organizational Readiness and Overcoming Resistance.
Your Role as Change Agent.
Chapter 7 Avoiding the Pitfalls: Lessons Learned.
ABC Lessons Learned.
ABM Lessons Learned.
Chapter 8 Beyond ABC/M.
Portable Skills.
Adjacent Careers.
In Conclusion.
Appendix: ABC Model and Cost Object Reporting Rules and Assumptions.
Modeling Rules and Assumptions.
Cost Object Reporting Rules and Assumptions.
Index.