Wells Fargo Balanced
Scorecard
Wells Fargo,
the industry leader in electronic banking, implemented a Balanced
Scorecard (Wells Fargo Balanced Scorecard) in its online financial
services group (OFS) to track and measure performance.
The OFS group
develops and supports services that allow existing and future
banking customers to transact via the Internet. The new division
faces rapid change and must invest heavily in new technology and in
the development of innovative products and services. OFS was finding
it difficult to balance the need for a clearly articulated strategy
and measurable objectives with the flexibility required in its
dynamic environment.
Wells Fargo had
a culture that embraced financial metrics. Yet OFS management
believed that its business could not be measured and evaluated on
the basis of financial metrics alone. For example, the group was not
yet profitable, yet it provided a critical component to the bank's
long-term strategy. The OFS group believed that the Wells Fargo
Balanced Scorecard would allow them to develop a set of integrated,
multidimensional measures to assess performance against its goals
and to communicate and update its strategy in a rapidly changing
environment. With an extensive description of the operations and
economic drivers of the online financial services business, the case
asks students to use this information to develop a Wells Fargo
Balanced Scorecard for OFS.
Wells
Fargo Online Financial Services
(A)
Publication
Date: Jun 12,
1998
Revision Date:
Aug 21,
2001
Availability:
In Stock
Author(s):
Robert S. Kaplan, Nicole Tempest
Type: Case
(Field)
Product Number:
9-198-146
Length: 18p
|
Format |
Price |
|
Sealed
Electronic Download
(limited
access) |
$6.50
each |
|
Hard
Copy |
$6.50
each |
|
Copyright
Permission |
$6.00
each |
Teaching
Purpose: Enables students to explore the role of the Balanced
Scorecard measurement system in an entrepreneurial, rapidly growing,
technology-intensive business.
This case study
describes OFS scorecard implementation which took place between 1997
and 1998. During that timeframe, they achieved the following
results:
·
Average cost per customer dropped 22%
·
OFS netted 250,000 additional online
customers
·
OFS banking website downtime decreased
71%
Subjects
Covered: Accounting & control, Balanced scorecard, Banking,
Banking industry, California Research Center, Competitive strategy,
Electronic commerce, Entrepreneurship, Finance & accounting,
Financial services, General management, Information age, Information
technology, Internet, Performance
measurement.
Setting:
California; banking;
1997
