Integration - Causal Chains and Strategy Essay Example | Topics and Well Written Essays - 1000 words - 1

Integration - Causal Chains and Strategy - Essay Example Therefore the financial business units for which causal chains and strategy are designed have to be identified. Causal chains and strategy therefore is not a strategy formulation tool but a system that serves to translate and describe the present strategy constantly in order to facilitate successful strategy execution (Atkinson, 2000). The development of causal chains and strategy in financial institution is not an independent process but a component of an extensive framework of strategy formulation and competitive positioning. For financial institutions like banks to ensure tailored causal chains and strategy, identification of specific needs affecting the strategic business units should be made (Atkinson, 2000). Secondly, financial result profile and exposure with an aim of identifying pertinent financial factors that facilitates acquisition of comprehensive listing all probable strategically relevant financial aspects should be made, financial internal business processes such as financial operational procedure. Banks innovation procedure and processes related to postsale services, customer service measures such as customer satisfaction, customer acquisition, customer retention, which results to larger market share. Thus, higher customer profitability and finally financial measures such as loan balances, deposit balances, none interest income, asset utilization, productivity growth and revenue growth (Atkinson, 2000). Financial performance will always depend on several measures; this involves learning and growth measures such as work force retention, workforce satisfaction and the productivity of the workforce (Atkinson, 2000). The balance scorecard concept is as a new approach of measuring performance as a result of past orientation and short-termism problems in management accounting. The balance scorecard assumes the fact that