Case Study ChemikalBank Description of the activity and instructions In the case study presented, the company we are going to work on is the Chemical Bank, a financial institution This company is in a difficult context that means making changes to certain habits, linked to the use of indicators and the scorecard to improve its performance The questions that follow are intended to help students focus on the key elements as they read the case The following questions must be answered Why did Chemical Bank need indicators that were not only financial What did Mike Hegarty do to meet the criteria of the scorecard Discuss the implementation of the scorecard in the company What are the strengths and weaknesses of the scorecard that was used by the bank What aspects should be avoided for a successful implementation of the scorecard please provide the bibliographic reference Exhibit 1 New York Markets Actual Actual INCOME STATEMENT ITEMS ($ millions) 1993 1994 Net interest income $691 3 $801 9 Total noninterest income 205 7 239 7 Total revenue $897 0 $1,041 6 Noninterest Expense Total salaries and benefits $345 7 $339 4 Occupancy and equipment 173 1 176 4 FDIC 73 0 61 8 Other 103 2 115 6 Total direct expense $695 0 $693 2 Total indirect expense 172 9 150 9 Total noninterest expense $867 9 $844 1 Operating margin $29 1 $197 5 Provision for loan loss 2 9 2 1 INCOME BEFORE TAXES $26 2 $195 4 Income taxes 11 5 86 0 Net income $14 7 $109 4 Average Gross Deposits ($ billions) Consumer $24 1 $22 8 Commercial 4 3 4 3 Total NY Markets $28 4 $27 1

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Case Study : ChemikalBank Description of the activity and instructions In the case-study presented, the company we are going to work on is the Chemical

Case Study : ChemikalBank

Description of the activity and instructions

In the case-study presented, the company we are going to work on is the Chemical Bank, a financial institution. This company is in a difficult context that means making changes to certain habits, linked to the use of indicators and the scorecard to improve its performance.

The questions that follow are intended to help students focus on the key elements as they read the case.

The following questions must be answered:

Why did Chemical Bank need indicators that were not only financial?
What did Mike Hegarty do to meet the criteria of the scorecard?
Discuss the implementation of the scorecard in the company.
What are the strengths and weaknesses of the scorecard that was used by the bank?
What aspects should be avoided for a successful implementation of the scorecard?

please provide the bibliographic reference.

Exhibit 1 New York Markets Actual Actual INCOME STATEMENT ITEMS ($ millions) 1993 1994 Net interest income $691.3 $801.9 Total noninterest income 205.7 239.7 Total revenue $897.0 $1,041.6 Noninterest Expense: Total salaries and benefits $345.7 $339.4 Occupancy and equipment 173.1 176.4 FDIC 73.0 61.8 Other 103.2 115.6 Total direct expense $695.0 $693.2 Total indirect expense 172.9 150.9 Total noninterest expense $867.9 $844.1 Operating margin $29.1 $197.5 Provision for loan loss 2.9 2.1 INCOME BEFORE TAXES $26.2 $195.4 Income taxes 11.5 86.0 Net income $14.7 $109.4 Average Gross Deposits ($ billions) Consumer $24.1 $22.8 Commercial 4.3 4.3 Total NY Markets $28.4 $27.1