Q1. New Wealth Bank is currently redesigning its performance measurement system. Up until now it has relied

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Q1. New Wealth Bank is currently redesigning its performance measurement system. Up until now it has relied heavily on monthly cost variance reports to control the costs in each bank branch, but would now like to have a more comprehensive performance measurement system that can help the bank detect problem areas before they become significant.

The bank is committed to achieving a high return on investment for shareholders and believes that careful management of customer service and costs will help to achieve that goal.

Required:

1. Identify some key performance indicators (KPIs) for the bank and some key performance drivers (KPDs) that could be used to manage operations at the branch level. Present these in the form of a Du Pont chart. (around 150 words)

2. Explain how continuous improvement could be built into the KPDs to assist in encouraging improved performance over time. (around 150 words)

Q2. Duncan’s Pizzas is a chain of pizza stores. Pizzas are made fresh in-store, and then delivered to customers by a fleet of drivers. The senior management team has identified the strategic priorities for the business as on-time delivery and product quality.

Required:

1. For each of the strategic priorities, suggest three performance measures. (around 150 words)

2. If the company is successful in achieving challenging targets for these performance measures, will it also necessarily achieve high profitability? Explain your answer. (around 150 words)