Services Our Services


Diagnostic Review

The objective of the diagnostic review is to carry out a preliminary assessment of a bank’s readiness for the implementation of a modern management information system, data warehouse and analytical applications. During the diagnostic review, all core functions of a bank are analyzed along the following lines: methodology and reporting, processes and technologies, human and financial resources.
 
The diagnostic review process includes the analysis of the following core functional areas of a bank:
  • the assessment of a bank’s business strategy
  • the assessment of the top management demand for reporting
  • the assessment of the management accounting methodology
  • the assessment of the risk management methodology
  • the assessment of the IFRS methodology
  • the assessment of the existing reporting system
  • the assessment of the IT infrastructure from the strategy implementation point of view 
  • the assessment of human and financial resources of a bank.
The diagnostic review takes one to two months depending on a bank’s size. Methodological approaches we use within the scope of the diagnostic review include:
  • interviews: identification of key persons, establishing contacts, holding interviews with potential project participants 
  • practical workshop: identification of implementation priorities, project scoping 
  • meetings with the bank’s top management: project management, clarification of priorities, assessment of the impact on IT architecture
  • presentation for the management board: development of a project roadmap and the presentation of the implementation project to the management board.
The diagnostic review will result in the following documents:
  • Diagnostic Review Report
  • Project Roadmap
  • Preliminary Implementation Project Plan
  • Preliminary Implementation Project Budget
  • Description of roles in the implementation team
  • Presentation for the MB


Interviews

This stage includes:
  • Identification of key players in the implementation project
    • Identification of the sponsor
    • Identification of the project manager
  • Identification of potential business clients (top managers and key middle managers)
    • Corporate, Retail and Treasury businesses
    • Risk Management, Accounting and Finance
    • IT and Operations hierarchy
  • Identification of potential players of the implementation team
    • PMO unit (if available)
    • MIS unit (if available)
    • IT function of a bank
    • Key staff of the core banking system supplier
    • Key staff of the integrator company (if defined)

Hands-on Implementation Project Scoping Workshop

At this stage, our consultants analyze gaps in data from various sources and in the warehouse, determine priorities in the Project Roadmap, generate a list of principal business requirements. To this end, we hold a workshop for key business users of the warehouse and reporting system, and potential members of the implementation team.
 
A typical workshop program is presented below, but it can be modified as a result of the interviews:
  • Banking Data Warehouse (BDW) overview
  • Conceptual data model
  • System of Records (SOR)
  • Summary Area
  • Business Solution Templates (BST)
  • Application Solution Templates (AST)
  • Sample Application Solution Templates and Business Solution Templates
    • Management accounting (e.g., profitability on the basis of transfers and cost allocation)
    • IFRS (e.g., IAS 39, IFRS 8)
    • Risk management (e.g. Basel-II, credit portfolio, competitor banks)
  • Choosing key BSTs for tackling business issues of a bank
  • High level analysis of the chosen BSTs and modelling key objects in SOR
  • Identification of AST required to address business issues of a bank
  • Practical session in modelling SOR objects 
  • Analysis of data gaps in source systems and SOR: core business objects of the core banking system, Source to Target analysis
  • Analysis of user business requirements for the Data Marts modelling.
During the five-day implementation project scoping workshop, our consultants:
  • gather key data owners into a single team, and initiate the discussion of main business issues
  • help participants understand, how the warehouse would help them implement their business tasks  
  • determine major data problems in accounting systems
  • estimate the scope of work and approximate time frames within the scope of each business requirement
  • agree upon high-level priorities for the development of reports.
The workshop deliverable is a document setting out business requirements of users and the scope of the reporting system automation, data warehouse system and necessary analytical applications implementation project.

Information Analysis and Clarification of Priorities

At this stage, we hold a number of meetings with the top management of the bank to structure information around the following areas:
  • Project management
    • Project organization (external or internal project management)
    • Project participants’ team and qualification
    • Availability of human resources in the bank
    • Assessment of financial resources of the project
    • Project risks
    • Success factors
  • Priorities in the field of development of analytical applications
    • Assessment of gaps in the IFRS, Basel-II, management accounting methodologies: transfer pricing, cost assessment, budget model
    • Clarification of priorities in developing analytical applications on the basis of the bank’s business strategy
  • Priorities in the field of development of the data warehouse and the information system
    • Analysis of the bank’s business requirements for the information system (if any) or
    • Discussion of a list of core business requirements developed during the workshop
    • Preparation of a priority list of reports
    • Assessment of the impact of priority reports on structures of the data warehouse and data marts
  • Technical architecture of a bank
    • Analysis of the technical architecture (servers, software, communication channels) 
    • Data sources for a data warehouse and information system
    • High-level and gap analysis of core objects in source systems and objects in the warehouse
    • Overview of existing data management processes
    • Assessment of principal functions and availability of human resources in the bank’s IT department
Organization

Exmacon offers consultancy services in the field of the reorganization and optimization of the organizational structure of the head office and the branch network of a bank. Our consultants have hands-on experience of implementing similar projects in banks of CIS and Central and Eastern European countries. 
 
Exmacon offers the following bank restructuring services:
  • Organizational structure development for banks with various specializations
  • Head office (middle and back office) functions and sales/customer service (front office) functions
  • Building principal functional blocks at the head office level:
    • Organizing marketing and sales network management
    • Risk management
    • Centralized Operations
    • Financial Management
    • Support management and facilities management
  • Managing and developing a concept of the development of sales channels
    • Hierarchy and structure of branches and outlets
    • ATM network
    • Internet
    • Mobile banking
    • Call centers
    • Direct sales
  • Developing outlet opening standards 
    • Outlet typology 
    • elect Location 
    • Development of opening standards 
  • Multi-channel organization of the sales network
    • Managing customer flows 
    • Traditional network and non-conventional channels, cost aspect of utilization 
    • Branch network management 
    • Three management models, their efficiency at various stages 
  • Marketing as a sales support function 
  • Management information system 
    • Measurement of product, client and channel profitability
In order to make sure that the project is implemented in a most cost efficient way, we offer our services during two principal phases:
  • Restructuring project planning
  • Restructuring project


Restructuring Project Planning

The planning and assessment of a restructuring project includes:
  • Review and clarification of a bank’s priorities
  • Identification of project objectives
  • Definition of key project contractors
  • Priorities and reorganization approaches
  • Assessment of stages, costs and the work plan of the project
Review and clarification of a bank’s priorities includes:
  • Analysis of the existing organizational structure, policies and procedures of a bank
  • Analysis of the strategic development plan of a bank, bank’s positioning on the market
  • Elaboration of the bank’s plans of the development of sales channels
  • Analysis of core food-related business processes and service approaches
    • Private banking
    • Personal banking
    • Mass sales
  • Filling out consultant’s questionnaires
  • Conversations and interviews with key project managers
  • Workshop for the co-ordination of objectives, tasks and the project plan 
The tentative duration of consultants’ involvement in the bank is about one month. This work can be done remotely on the basis of the analysis of the existing organizational structure, the strategic development plan, internal policies, and completed questionnaires provided by consultants.

Bank Restructuring Project

A bank restructuring project includes:
  • Developing an optimal organizational structure for the head office
  • Developing the structure of the branch network and the branch typology
  • Developing a final restructuring plan
  • Project costing
  • Presentations and a final meeting with the management 
Tentative time frames for the performance of this stage of work depend on the bank’s size and priorities. A report setting forth principal recommendations and project tasks coordinated with the implementation team to be carried out before the commencement of the next visit of consultants will be prepared as a result of each visit of consultants to the bank.
Strategy and Planning

The suggested consultancy methodology in this field is based upon modern concepts of strategic management. The Balanced Scorecard was developed by David Norton and Robert Kaplan (Harvard School of Business) in 1996. Thanks to the practical implementation experience, the Balanced Scorecard was transformed by its authors into a Strategy Map.
 
This concept helps top management to balance and align financial indicators and business strategy indicators by customer segment with indicators reflecting changes in internal organizational processes, information technologies and HRM. 
 
Exmacon offers consultancy services in the field of development of a bank’s strategy and a balanced scorecard of a bank in the following stages: 
  • Preliminary analysis
    • Bank's operations analysis
    • Existing strategic planning process
    • Document analysis
  • Consultancy support to members of the bank’s management board
    • Presentation of the Strategy Map concept and the strategic planning process to the management board
    • SWOT analysis of the bank, analysis of it Mission and Vision
    • Identification of strategic priorities at the management board level: key segments, products, channels and objectives
  • Consultancy support to the middle management of the bank
    • Setting up working groups at the middle management level
    • Presentation of the Strategy Map concept and the strategic planning process to the middle management
    • SWOT analysis of key business segments: identification of competitive products
    • Development of Strategy Maps for selected customer segments and key products by the participants
  • Preparing recommendations on the strategic planning process
    • Strategic planning process
    • Tactical business plans
    • Business plan for a year
    • Identification of problems and missing functions at the Head Office and network levels
    • Bank restructuring plan
    • Generalization of the bank’s strategy in a document


Preliminary analysis

Before the commencement of services, Exmacon’s consultants will ask a bank to provide a number of documents: 
  • Annual statements, and audit report for the last two years 
  • Strategy of the bank, its business plan, development plan and financial plan
  • Financial statements (balance sheet and profit and loss account) for the last two years 
  • Organizational structure and descriptions of functions of core head office units with the indication of their staffing levels 
  • Organizational structure of the network and the model branch organizational structure with the indication of the staffing level 
We guarantee complete privacy in using these documents. At this stage, consultants may come up with additional queries regarding specific features of the bank’s operation.

Consultancy Support to Members of the Bank’s Management Board

At this stage, a lot of attention is dedicated to supporting the hands-on work of members of the bank’s management board on the strategy of their bank. For instance, members of the management board will be requested to develop a mission for their bank, undertake its SWOT analysis, specify overall financial objectives and identify key customer segments. The management should include several best branch managers, as well as managers of principal business lines dealing with corporate and private customers. This stage is supposed to result in a preliminary version of the bank’s overall strategy identifying, for instance, the top priority customer segments and principal financial goals.
 
The consultancy support to the management board will result in:
  • Presentation of a concept of the Strategy Map and the strategic planning process
  • SWOT analysis of the bank, analysis of it Mission and Vision
  • Identification of strategic priorities at the management board level: key segments, products, channels and objectives
  • Determining key goals of the bank

Consultancy Support to the Middle Management of the Bank

At this stage, our services will focused mostly on supporting the hands-on work of the bank’s middle management on the actual strategy broken down by customer segments. Before the start of the strategy work, we will organize a workshop for middle management:
  • Strategy of a bank and its core components
  • Mission of a Bank 
    • Is it really needed? 
    • Recommendations on drawing up a Mission Statement
    • Sample Mission Statements of Ukrainian and Western banks
    • Practical exercises: drawing up a Mission Statement of a bank, discussions
  • Customer segmentation
    • Client groups, their needs
    • Group identification criteria
    • Practical exercises: Customer segmentation, discussions 
  • SWOT analysis
    • Rules of SWOT analysis
    • Action option analysis 
    • Practical exercises: SWOT analysis, discussion
  • Strategy and organizational structure
    • Types of strategies
    • Selection of a strategy
    • Formulation of financial goals
    • Bank organizational structure options 
    • Responsibility centers in the structure of the Bank
    • Practical exercises. Strategy and organizational structure options for the bank, discussion
  • Balance Scorecard (Strategy Map) as an efficient tool for the implementation of the bank’s strategy 
    • Financial and non-financial goals.
    • Relationship between strategic goals and action plans
    • Finance, clients, processes and personnel
    • Sample indicators and reports of Ukrainian and Western banks
    • Practical exercises: drawing up strategy maps, discussion
  • Setting strategic priorities Lessons learned
At the end of working meetings and seminars, middle managers will be divided into groups covering key customer segments identified by the management board at the previous stage. Groups will be asked to carry out a SWOT analysis of their respective segments, determine a competitive product offer for their segment, and specify financial and non-financial goals. Each group will develop a Strategy Map for its segment, and decide on the competitive products promotion strategy. At the end of this exercise, groups will present their Strategy Maps to colleagues and consultants, and then to the management board. 
 
Thorough selection of participants is pre-requisite to the successful implementation of this phase. Groups must consist of managers of core business units dealing with corporate and private customers, managers of strategic and financial planning units, managers of the most successful branches. Customers will discuss respective Strategy Maps with each group face-to-face, and provide their recommendations.
 
This phase will result in Strategy Maps for each segment with lists of competitive products and balanced segment indicators.

Development of recommendations

At the final phase, consultants will prepare recommendations for the implementation of the strategic and tactical planning in the bank, and the bank’s three-year strategic plan. Materials and recommendations on the strategic planning process will include:
  • Generalization of the strategy in the bank’s Strategic Plan
  • Tactical business plans
  • Annual business plan
  • Strategic planning process description
  • Problems and missing functions at the Head Office and network levels
  • Bank restructuring plan
Management Accounting

Exmacon offers consultancy services in the field of the implementation of management accounting and reporting in banks. We offer assistance with the development and upgrade of management accounting methodologies and procedures. Thanks to the unique combination of knowledge and expertise of our consultants, Exmacon will implement such projects within optimal time frames at the minimum financial and human-resource cost to the client. 
 
Consultancy services in the field of building a management accounting and reporting system include the following phases:
  • Diagnostic Review of the Management Accounting System in a Bank
    • Methodology and Reporting
    • Processes
    • Technology
    • People
  • ​Development or Upgrade of Management Accounting Methodologies
    • Risk-adjusted Profitability Assessment
    • Financial Planning and Budgeting Methodology
  • Management Accounting Automation Project Planning
    • Development of the Overall Implementation Roadmap
    • Development of the Implementation Project Plan
    • Development of the Implementation Budget 
    • Identification of Users’ Business Requirements for Reports
    • Identification of Business Requirements for Analytical Applications 
Exmacon offers consultancy support to banks willing to start with a management accounting automation project along the following lines:
  • Identification of user business requirements
  • Acting as a mentor and a technical advisor to the implementation team
  • Automation project quality control
  • Development of reference tables and the structure of data needed for the automation
  • Co-ordination of reference tables and data requirements with all stakeholders
  • Analysis of data gaps in accounting systems 
  • Identification of modifications in existing accounting systems 
  • Identification of changes in back office processes
  • Development of technical specifications for the development team (if any)
  • Assistance with the assessment and selection of appropriate software (in case of the decision to buy)
  • Assistance with configuration and adaptation of the purchased software (in case of the decision to buy)
  • Training the implementation team


Diagnostic Review

At the diagnostic review stage, the Exmacon consultants will review and clarify needs and priorities of the bank in the field of management accounting, identify project goals and determine key performers. The diagnostic review will result in the assessment of management accounting implementation phases and the work plan.
 
The diagnostic review includes the assessment of:
  • Existing reporting system
  • Management accounting methodology
  • Management reports preparation process
  • IT infrastructure for the management accounting automation
  • Identification of key players in the implementation project
  • Identification of new needs and priorities for the new management reports. 
The diagnostic review usually requires 35 man-days, and takes 4 weeks. Exmacon uses the following problem review and identification methods in the course of the diagnostic review:
  • Interviews for the identification of key players, the establishment of contacts, the identification of the project sponsor and manager in the bank
  • Practical training for the identification of implementation priorities and the agreement on terms
  • Meetings with top management of the bank for the clarification of priorities and the development of recommendations on the project
  • Presentation of the implementation project roadmap and plan
The diagnostic review will result in the following documents:
  • Diagnostic Review Report
  • Project Roadmap
  • Preliminary Project Plan
  • Implementation Team 
  • Preliminary Implementation Project Budget
  • Presentation for the Management Board

Risk-adjusted Profitability Assessment

Exmacon offers consultancy support with setting up and upgrading the following management accounting models in banks:
  • Risk-adjusted Profitability Assessment model
  • Transfer pricing
    • Principles
    • Methodology
    • Practical issues of implementation
    • Application in CIS markets
  • Cost allocation
    • Cost center structures
    • Allocation principles
    • Alternative methodologies
    • Activity-based costing (ABC)
    • Product cost calculation
    • Budgeting control and cost control
  • Book structure
    • Definition of the banking book and the trading book
    • Organizational issues of the implementation
    • Risk management
    • Accounting impact
    • Financial structure and codes structure
  • Capital at risk
    • Provisions and capital
    • Assessment of expected losses
    • Assessment of unexpected losses
    • Simplified methods of assessment of the capital at risk

Planning and Budgeting

Exmacon offers consultancy support in the field of the methodology and the implementation of the financial planning and budgeting process in banks:
  • Development of tactical and annual business plans
    • Activity planning by customer segment
    • Commercial planning
    • Network planning
  • Financial planning and budgeting
    • Concept of budget owners
    • Budgeting process
    • Financial modelling
    • Budgeting control and cost control
  • Organization of budgeting in a bank
    • Forms of financial planning and budgeting
    • Bases for the calculation of the projected balance sheet and projected P&L
    • Validation of the budget for risk and prudential target ratio limitations
  • Identification and assessment of key performance indicators (KPIs)

Management Reporting

The consultancy assistance in the field of the implementation of Management Information Systems includes:
  • Development of business requirements for a Management Information System
  • Requirements for the IT architecture 
  • Recommended package of monthly and daily reports for the management 
    • Financial reporting
    • Risk-adjusted profitability management reports
    • Risk management reports
    • ALCO and Treasury reports
    • Reports on commercial operations, including product and segment management
    • Reports on network operations, including the Balance Scorecard of branches
    • Reports on efficiency and productivity, including operation processes and HRM
  • Development of reporting formats with their adaptation to strategic objectives and key performance indicators of the bank.

The objective of the diagnostic review is to carry out a preliminary assessment of a bank’s readiness for the implementation of a modern management information system, data warehouse and analytical applications. During the diagnostic review, all core functions of a bank are analyzed along the following lines: methodology and reporting, processes and technologies, human and financial resources.
 
The diagnostic review process includes the analysis of the following core functional areas of a bank:
  • the assessment of a bank’s business strategy
  • the assessment of the top management demand for reporting
  • the assessment of the management accounting methodology
  • the assessment of the risk management methodology
  • the assessment of the IFRS methodology
  • the assessment of the existing reporting system
  • the assessment of the IT infrastructure from the strategy implementation point of view 
  • the assessment of human and financial resources of a bank.
The diagnostic review takes one to two months depending on a bank’s size. Methodological approaches we use within the scope of the diagnostic review include:
  • interviews: identification of key persons, establishing contacts, holding interviews with potential project participants 
  • practical workshop: identification of implementation priorities, project scoping 
  • meetings with the bank’s top management: project management, clarification of priorities, assessment of the impact on IT architecture
  • presentation for the management board: development of a project roadmap and the presentation of the implementation project to the management board.
The diagnostic review will result in the following documents:
  • Diagnostic Review Report
  • Project Roadmap
  • Preliminary Implementation Project Plan
  • Preliminary Implementation Project Budget
  • Description of roles in the implementation team
  • Presentation for the MB


Interviews

This stage includes:
  • Identification of key players in the implementation project
    • Identification of the sponsor
    • Identification of the project manager
  • Identification of potential business clients (top managers and key middle managers)
    • Corporate, Retail and Treasury businesses
    • Risk Management, Accounting and Finance
    • IT and Operations hierarchy
  • Identification of potential players of the implementation team
    • PMO unit (if available)
    • MIS unit (if available)
    • IT function of a bank
    • Key staff of the core banking system supplier
    • Key staff of the integrator company (if defined)

Hands-on Implementation Project Scoping Workshop

At this stage, our consultants analyze gaps in data from various sources and in the warehouse, determine priorities in the Project Roadmap, generate a list of principal business requirements. To this end, we hold a workshop for key business users of the warehouse and reporting system, and potential members of the implementation team.
 
A typical workshop program is presented below, but it can be modified as a result of the interviews:
  • Banking Data Warehouse (BDW) overview
  • Conceptual data model
  • System of Records (SOR)
  • Summary Area
  • Business Solution Templates (BST)
  • Application Solution Templates (AST)
  • Sample Application Solution Templates and Business Solution Templates
    • Management accounting (e.g., profitability on the basis of transfers and cost allocation)
    • IFRS (e.g., IAS 39, IFRS 8)
    • Risk management (e.g. Basel-II, credit portfolio, competitor banks)
  • Choosing key BSTs for tackling business issues of a bank
  • High level analysis of the chosen BSTs and modelling key objects in SOR
  • Identification of AST required to address business issues of a bank
  • Practical session in modelling SOR objects 
  • Analysis of data gaps in source systems and SOR: core business objects of the core banking system, Source to Target analysis
  • Analysis of user business requirements for the Data Marts modelling.
During the five-day implementation project scoping workshop, our consultants:
  • gather key data owners into a single team, and initiate the discussion of main business issues
  • help participants understand, how the warehouse would help them implement their business tasks  
  • determine major data problems in accounting systems
  • estimate the scope of work and approximate time frames within the scope of each business requirement
  • agree upon high-level priorities for the development of reports.
The workshop deliverable is a document setting out business requirements of users and the scope of the reporting system automation, data warehouse system and necessary analytical applications implementation project.

Information Analysis and Clarification of Priorities

At this stage, we hold a number of meetings with the top management of the bank to structure information around the following areas:
  • Project management
    • Project organization (external or internal project management)
    • Project participants’ team and qualification
    • Availability of human resources in the bank
    • Assessment of financial resources of the project
    • Project risks
    • Success factors
  • Priorities in the field of development of analytical applications
    • Assessment of gaps in the IFRS, Basel-II, management accounting methodologies: transfer pricing, cost assessment, budget model
    • Clarification of priorities in developing analytical applications on the basis of the bank’s business strategy
  • Priorities in the field of development of the data warehouse and the information system
    • Analysis of the bank’s business requirements for the information system (if any) or
    • Discussion of a list of core business requirements developed during the workshop
    • Preparation of a priority list of reports
    • Assessment of the impact of priority reports on structures of the data warehouse and data marts
  • Technical architecture of a bank
    • Analysis of the technical architecture (servers, software, communication channels) 
    • Data sources for a data warehouse and information system
    • High-level and gap analysis of core objects in source systems and objects in the warehouse
    • Overview of existing data management processes
    • Assessment of principal functions and availability of human resources in the bank’s IT department

Exmacon offers consultancy services in the field of the reorganization and optimization of the organizational structure of the head office and the branch network of a bank. Our consultants have hands-on experience of implementing similar projects in banks of CIS and Central and Eastern European countries. 
 
Exmacon offers the following bank restructuring services:
  • Organizational structure development for banks with various specializations
  • Head office (middle and back office) functions and sales/customer service (front office) functions
  • Building principal functional blocks at the head office level:
    • Organizing marketing and sales network management
    • Risk management
    • Centralized Operations
    • Financial Management
    • Support management and facilities management
  • Managing and developing a concept of the development of sales channels
    • Hierarchy and structure of branches and outlets
    • ATM network
    • Internet
    • Mobile banking
    • Call centers
    • Direct sales
  • Developing outlet opening standards 
    • Outlet typology 
    • elect Location 
    • Development of opening standards 
  • Multi-channel organization of the sales network
    • Managing customer flows 
    • Traditional network and non-conventional channels, cost aspect of utilization 
    • Branch network management 
    • Three management models, their efficiency at various stages 
  • Marketing as a sales support function 
  • Management information system 
    • Measurement of product, client and channel profitability
In order to make sure that the project is implemented in a most cost efficient way, we offer our services during two principal phases:
  • Restructuring project planning
  • Restructuring project


Restructuring Project Planning

The planning and assessment of a restructuring project includes:
  • Review and clarification of a bank’s priorities
  • Identification of project objectives
  • Definition of key project contractors
  • Priorities and reorganization approaches
  • Assessment of stages, costs and the work plan of the project
Review and clarification of a bank’s priorities includes:
  • Analysis of the existing organizational structure, policies and procedures of a bank
  • Analysis of the strategic development plan of a bank, bank’s positioning on the market
  • Elaboration of the bank’s plans of the development of sales channels
  • Analysis of core food-related business processes and service approaches
    • Private banking
    • Personal banking
    • Mass sales
  • Filling out consultant’s questionnaires
  • Conversations and interviews with key project managers
  • Workshop for the co-ordination of objectives, tasks and the project plan 
The tentative duration of consultants’ involvement in the bank is about one month. This work can be done remotely on the basis of the analysis of the existing organizational structure, the strategic development plan, internal policies, and completed questionnaires provided by consultants.

Bank Restructuring Project

A bank restructuring project includes:
  • Developing an optimal organizational structure for the head office
  • Developing the structure of the branch network and the branch typology
  • Developing a final restructuring plan
  • Project costing
  • Presentations and a final meeting with the management 
Tentative time frames for the performance of this stage of work depend on the bank’s size and priorities. A report setting forth principal recommendations and project tasks coordinated with the implementation team to be carried out before the commencement of the next visit of consultants will be prepared as a result of each visit of consultants to the bank.

The suggested consultancy methodology in this field is based upon modern concepts of strategic management. The Balanced Scorecard was developed by David Norton and Robert Kaplan (Harvard School of Business) in 1996. Thanks to the practical implementation experience, the Balanced Scorecard was transformed by its authors into a Strategy Map.
 
This concept helps top management to balance and align financial indicators and business strategy indicators by customer segment with indicators reflecting changes in internal organizational processes, information technologies and HRM. 
 
Exmacon offers consultancy services in the field of development of a bank’s strategy and a balanced scorecard of a bank in the following stages: 
  • Preliminary analysis
    • Bank's operations analysis
    • Existing strategic planning process
    • Document analysis
  • Consultancy support to members of the bank’s management board
    • Presentation of the Strategy Map concept and the strategic planning process to the management board
    • SWOT analysis of the bank, analysis of it Mission and Vision
    • Identification of strategic priorities at the management board level: key segments, products, channels and objectives
  • Consultancy support to the middle management of the bank
    • Setting up working groups at the middle management level
    • Presentation of the Strategy Map concept and the strategic planning process to the middle management
    • SWOT analysis of key business segments: identification of competitive products
    • Development of Strategy Maps for selected customer segments and key products by the participants
  • Preparing recommendations on the strategic planning process
    • Strategic planning process
    • Tactical business plans
    • Business plan for a year
    • Identification of problems and missing functions at the Head Office and network levels
    • Bank restructuring plan
    • Generalization of the bank’s strategy in a document


Preliminary analysis

Before the commencement of services, Exmacon’s consultants will ask a bank to provide a number of documents: 
  • Annual statements, and audit report for the last two years 
  • Strategy of the bank, its business plan, development plan and financial plan
  • Financial statements (balance sheet and profit and loss account) for the last two years 
  • Organizational structure and descriptions of functions of core head office units with the indication of their staffing levels 
  • Organizational structure of the network and the model branch organizational structure with the indication of the staffing level 
We guarantee complete privacy in using these documents. At this stage, consultants may come up with additional queries regarding specific features of the bank’s operation.

Consultancy Support to Members of the Bank’s Management Board

At this stage, a lot of attention is dedicated to supporting the hands-on work of members of the bank’s management board on the strategy of their bank. For instance, members of the management board will be requested to develop a mission for their bank, undertake its SWOT analysis, specify overall financial objectives and identify key customer segments. The management should include several best branch managers, as well as managers of principal business lines dealing with corporate and private customers. This stage is supposed to result in a preliminary version of the bank’s overall strategy identifying, for instance, the top priority customer segments and principal financial goals.
 
The consultancy support to the management board will result in:
  • Presentation of a concept of the Strategy Map and the strategic planning process
  • SWOT analysis of the bank, analysis of it Mission and Vision
  • Identification of strategic priorities at the management board level: key segments, products, channels and objectives
  • Determining key goals of the bank

Consultancy Support to the Middle Management of the Bank

At this stage, our services will focused mostly on supporting the hands-on work of the bank’s middle management on the actual strategy broken down by customer segments. Before the start of the strategy work, we will organize a workshop for middle management:
  • Strategy of a bank and its core components
  • Mission of a Bank 
    • Is it really needed? 
    • Recommendations on drawing up a Mission Statement
    • Sample Mission Statements of Ukrainian and Western banks
    • Practical exercises: drawing up a Mission Statement of a bank, discussions
  • Customer segmentation
    • Client groups, their needs
    • Group identification criteria
    • Practical exercises: Customer segmentation, discussions 
  • SWOT analysis
    • Rules of SWOT analysis
    • Action option analysis 
    • Practical exercises: SWOT analysis, discussion
  • Strategy and organizational structure
    • Types of strategies
    • Selection of a strategy
    • Formulation of financial goals
    • Bank organizational structure options 
    • Responsibility centers in the structure of the Bank
    • Practical exercises. Strategy and organizational structure options for the bank, discussion
  • Balance Scorecard (Strategy Map) as an efficient tool for the implementation of the bank’s strategy 
    • Financial and non-financial goals.
    • Relationship between strategic goals and action plans
    • Finance, clients, processes and personnel
    • Sample indicators and reports of Ukrainian and Western banks
    • Practical exercises: drawing up strategy maps, discussion
  • Setting strategic priorities Lessons learned
At the end of working meetings and seminars, middle managers will be divided into groups covering key customer segments identified by the management board at the previous stage. Groups will be asked to carry out a SWOT analysis of their respective segments, determine a competitive product offer for their segment, and specify financial and non-financial goals. Each group will develop a Strategy Map for its segment, and decide on the competitive products promotion strategy. At the end of this exercise, groups will present their Strategy Maps to colleagues and consultants, and then to the management board. 
 
Thorough selection of participants is pre-requisite to the successful implementation of this phase. Groups must consist of managers of core business units dealing with corporate and private customers, managers of strategic and financial planning units, managers of the most successful branches. Customers will discuss respective Strategy Maps with each group face-to-face, and provide their recommendations.
 
This phase will result in Strategy Maps for each segment with lists of competitive products and balanced segment indicators.

Development of recommendations

At the final phase, consultants will prepare recommendations for the implementation of the strategic and tactical planning in the bank, and the bank’s three-year strategic plan. Materials and recommendations on the strategic planning process will include:
  • Generalization of the strategy in the bank’s Strategic Plan
  • Tactical business plans
  • Annual business plan
  • Strategic planning process description
  • Problems and missing functions at the Head Office and network levels
  • Bank restructuring plan

Exmacon offers consultancy services in the field of the implementation of management accounting and reporting in banks. We offer assistance with the development and upgrade of management accounting methodologies and procedures. Thanks to the unique combination of knowledge and expertise of our consultants, Exmacon will implement such projects within optimal time frames at the minimum financial and human-resource cost to the client. 
 
Consultancy services in the field of building a management accounting and reporting system include the following phases:
  • Diagnostic Review of the Management Accounting System in a Bank
    • Methodology and Reporting
    • Processes
    • Technology
    • People
  • ​Development or Upgrade of Management Accounting Methodologies
    • Risk-adjusted Profitability Assessment
    • Financial Planning and Budgeting Methodology
  • Management Accounting Automation Project Planning
    • Development of the Overall Implementation Roadmap
    • Development of the Implementation Project Plan
    • Development of the Implementation Budget 
    • Identification of Users’ Business Requirements for Reports
    • Identification of Business Requirements for Analytical Applications 
Exmacon offers consultancy support to banks willing to start with a management accounting automation project along the following lines:
  • Identification of user business requirements
  • Acting as a mentor and a technical advisor to the implementation team
  • Automation project quality control
  • Development of reference tables and the structure of data needed for the automation
  • Co-ordination of reference tables and data requirements with all stakeholders
  • Analysis of data gaps in accounting systems 
  • Identification of modifications in existing accounting systems 
  • Identification of changes in back office processes
  • Development of technical specifications for the development team (if any)
  • Assistance with the assessment and selection of appropriate software (in case of the decision to buy)
  • Assistance with configuration and adaptation of the purchased software (in case of the decision to buy)
  • Training the implementation team


Diagnostic Review

At the diagnostic review stage, the Exmacon consultants will review and clarify needs and priorities of the bank in the field of management accounting, identify project goals and determine key performers. The diagnostic review will result in the assessment of management accounting implementation phases and the work plan.
 
The diagnostic review includes the assessment of:
  • Existing reporting system
  • Management accounting methodology
  • Management reports preparation process
  • IT infrastructure for the management accounting automation
  • Identification of key players in the implementation project
  • Identification of new needs and priorities for the new management reports. 
The diagnostic review usually requires 35 man-days, and takes 4 weeks. Exmacon uses the following problem review and identification methods in the course of the diagnostic review:
  • Interviews for the identification of key players, the establishment of contacts, the identification of the project sponsor and manager in the bank
  • Practical training for the identification of implementation priorities and the agreement on terms
  • Meetings with top management of the bank for the clarification of priorities and the development of recommendations on the project
  • Presentation of the implementation project roadmap and plan
The diagnostic review will result in the following documents:
  • Diagnostic Review Report
  • Project Roadmap
  • Preliminary Project Plan
  • Implementation Team 
  • Preliminary Implementation Project Budget
  • Presentation for the Management Board

Risk-adjusted Profitability Assessment

Exmacon offers consultancy support with setting up and upgrading the following management accounting models in banks:
  • Risk-adjusted Profitability Assessment model
  • Transfer pricing
    • Principles
    • Methodology
    • Practical issues of implementation
    • Application in CIS markets
  • Cost allocation
    • Cost center structures
    • Allocation principles
    • Alternative methodologies
    • Activity-based costing (ABC)
    • Product cost calculation
    • Budgeting control and cost control
  • Book structure
    • Definition of the banking book and the trading book
    • Organizational issues of the implementation
    • Risk management
    • Accounting impact
    • Financial structure and codes structure
  • Capital at risk
    • Provisions and capital
    • Assessment of expected losses
    • Assessment of unexpected losses
    • Simplified methods of assessment of the capital at risk

Planning and Budgeting

Exmacon offers consultancy support in the field of the methodology and the implementation of the financial planning and budgeting process in banks:
  • Development of tactical and annual business plans
    • Activity planning by customer segment
    • Commercial planning
    • Network planning
  • Financial planning and budgeting
    • Concept of budget owners
    • Budgeting process
    • Financial modelling
    • Budgeting control and cost control
  • Organization of budgeting in a bank
    • Forms of financial planning and budgeting
    • Bases for the calculation of the projected balance sheet and projected P&L
    • Validation of the budget for risk and prudential target ratio limitations
  • Identification and assessment of key performance indicators (KPIs)

Management Reporting

The consultancy assistance in the field of the implementation of Management Information Systems includes:
  • Development of business requirements for a Management Information System
  • Requirements for the IT architecture 
  • Recommended package of monthly and daily reports for the management 
    • Financial reporting
    • Risk-adjusted profitability management reports
    • Risk management reports
    • ALCO and Treasury reports
    • Reports on commercial operations, including product and segment management
    • Reports on network operations, including the Balance Scorecard of branches
    • Reports on efficiency and productivity, including operation processes and HRM
  • Development of reporting formats with their adaptation to strategic objectives and key performance indicators of the bank.