Annual operating expense as a percentage of retail bank revenue (interest income plus fee income)

This measure calculates the total annual operating expense for the retail banking operation as a percentage of the retail bank revenue (interest income plus fee income). This Supplemental Information measure is intended to help companies evaluate additional variables related to the category "Deliver Services".

Benchmark Data

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Measure Category:
Supplemental Information
Measure ID:
105416
Total Sample Size:
250 All Companies
Performers:
25th Median 75th
- 66.7% -
Key Performance Indicator:
Yes
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Compute this Measure

Units for this measure are percent.

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Key Terms

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Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (8.0)

  • 5.1 - Establish service delivery governance and strategies (20026) - Creating rules and regulations for service delivery to the customer. Establish a system to manage performance, delivery, and direction of service delivery. Engage with the customer for satisfaction feedback. Define goals, policies, processes, and workplace layout and infrastructure as a part of the service delivery strategy.
    • 5.1.1 - Establish service delivery governance (20027) - Establishing service delivery governance through a system that manages performance, development, and direction. Allow for customer feedback on delivery satisfaction.
      • 5.1.1.1 - Set up and maintain service delivery governance and management system (20028) - Providing a system for which to manage customer needs and a structure for which to facilitate service delivery to fulfill those needs.
      • 5.1.1.2 - Manage service delivery performance (20029) - Conducting and implementing performance measures to ensure successful delivery of service to the customer.
      • 5.1.1.3 - Manage service delivery development and direction (20030) - Providing guidance of resources to ensure that the development and direction of service delivery is in line with customer needs.
      • 5.1.1.4 - Solicit feedback from customer on service delivery satisfaction (20031) - Engaging the customer post delivery to gauge the effectiveness of services rendered in order to improve on key delivery functions going forward.
    • 5.1.2 - Develop service delivery strategies (20032) - Constructing strategies that identify goals, policies, processes, and procedures in relation to service delivery. Review and validate strategies. Define the workplace layout and infrastructure.
      • 5.1.2.1 - Define service delivery goals (20033) - Aligning organization practices to meet the needs of the customer by creating service delivery goals.
      • 5.1.2.2 - Define labor policies (20034) - Outlining labor policies for resources and ensuring that those policies meet the needs of the organization, the customer, and government regulations.
      • 5.1.2.3 - Evaluate resource availability (20035) - Understanding the needs of the customer and providing the necessary resources to meet those requirements.
      • 5.1.2.4 - Define service delivery network and supply constraints (20036) - Identifying and understanding the limitations imposed upon service delivery network and supply.
      • 5.1.2.5 - Define service delivery process (20037) - Defanging policies and procedures that focus on meeting the needs and expectations of the customer within the working parameters of the organization.
      • 5.1.2.6 - Review and validate service delivery procedures (20038) - Revisioning service delivery procedures that fall short of performance parameters. Realign procedures with specified expectations in order to provide successful service delivery.
      • 5.1.2.7 - Define service delivery workplace layout and infrastructure (20039) - Creating a workplace that best serves the needs of the organization and customer through strategic layout and infrastructure.
  • 5.2 - Manage service delivery resources (20040) - Understanding the demands on resources and creating a plan to enable the delivery of services via those resources.
    • 5.2.1 - Manage service delivery resource demand (20041) - Ensuring necessary resources are maintained through monitoring pipeline, developing forecasts, and collaborating with customers. Determine skills needed for service deliver and forecast customer orders. Monitor forecasted orders and modify if where needed. Measure forecast accuracy.
      • 5.2.1.1 - Monitor pipeline (20042) - Tracking potential opportunities as they move through the various stages of the pipeline.
      • 5.2.1.2 - Develop baseline forecasts (20043) - Identifying the demand anticipated for the organization's services. Estimate future demand for services using historical data, analysis of the market environment, and external data.
      • 5.2.1.3 - Collaborate with customers (20044) - Providing a collaborative meeting in which to engage the customer to understand the scope of their needs and constructing solutions based on need and constraints.
      • 5.2.1.4 - Develop consensus forecast (20045) - Arriving at a consensus over the forecasted levels of demand for services by analyzing baseline forecasts and customer input.
      • 5.2.1.5 - Determine availability of skills to deliver on current and forecast customer orders (20046) - Identifying what skillset is necessary for the delivery of opportunities. Determine the forecast of customer orders based upon those skillsets and the resources available.
      • 5.2.1.6 - Monitor activity against forecast and revise forecast (20047) - Overseeing all activities necessary to deliver services to customer. Revise forecast to account for any issues that may arise. This could be changes in market trend, resource changes, etc.
      • 5.2.1.7 - Evaluate and revise forecasting approach (20048) - Recognizing potential problems in the current forecast and making the necessary changes to align the forecast meet demand.
      • 5.2.1.8 - Measure forecast accuracy (20049) - Analyzing forecasting against actuals to determine accuracy. Modify forecasting to align with actual need.
    • 5.2.2 - Create and manage resource plan (20050) - Identifying the need for and creating a resource plan. Understand resource demand and align with capacity, skills, and capabilities. Enlist suppliers and partners to supplement needed skills and capabilities. Monitor and manage capabilities and skills with an eye on critical resources and supplier capacity.
      • 5.2.2.1 - Define and manage skills taxonomy (20051) - Analyzing the skills needed to perform services to be delivered. Classify and organize these skills requirements.
      • 5.2.2.2 - Create resource plan (20052) - Creating a plan to ensure that all resources are available to carry out services required for the customer. This can include physical resources and personnel.
      • 5.2.2.3 - Match resource demand with capacity, skills, and capabilities (20053) - Matching demand with skills and capability. Enlisting suppliers and partners to help with demand when needed.
      • 5.2.2.4 - Collaborate with suppliers and partners to supplement skills and capabilities (20054) - Understanding organizational need to enlist suppliers to provide resources for gaps in skills and capabilities. Identify where additional skills are needed and collaborate with third parties to fill those demands.
      • 5.2.2.5 - Identify critical resources and supplier capacity (20055) - Realizing critical resources required to perform and carry out customer needs. Engage with suppliers to fulfill those needs, if necessary. Identify supplier threshold for performing those needs.
      • 5.2.2.6 - Monitor and manage resource capacity and availability (20056) - Directing and managing workforce needs. Ensure that resources are at full capacity. Monitor that all resources are able to skilled in their respective rolls. Make sure that necessary resources are available to provide the needed services.
    • 5.2.3 - Enable service delivery resources (12127) - Instituting training to enable resources to provide service delivery to the customer. Develop a training plan. Create materials that provide for operation and technical training. Schedule, perform, and evaluate training.
      • 5.2.3.1 - Develop service delivery training plan (12128) - Creating a detailed summary of all the actions relevant to teaching a person a particular skill or type of behavior. Determine who will deliver the training. Determine when and where the apprentice or trainee needs to go to receive the structured component of the training.
      • 5.2.3.2 - Develop training materials (12129) - Developing materials necessary to provide comprehensive training for the skills or behavior needed to deliver services. This can be any number for formats such as classroom or computer based training.
      • 5.2.3.3 - Manage training schedule (12131) - Providing training to the employee within a manageable timeframe to meet the needs of both the individual and the organization.
      • 5.2.3.4 - Deliver operations training (12132) - Educating service delivery personnel on all aspects of the operations process of the organization.
      • 5.2.3.5 - Deliver technical training (12133) - Ensuring that all personnel are trained on all technical aspects of service delivery to include compliance with constraints on how advanced technologies including artificial intelligence (AI) are used.
      • 5.2.3.6 - Perform skill and capability testing (20057) - Verifying that training provided to the person was successful through the administration testing and the application of skills for practical use.
      • 5.2.3.7 - Evaluate training effectiveness (12135) - Eliciting feedback from various sources to evaluate the training provided. This can be achieved through testing and the practical application of skills. Additionally, manager or student feedback can be garnered to evaluate training effectiveness.
  • 5.3 - Manage and Operate Service Delivery System (21634) - Managing and operating the systems, resources, and processes used to deliver services to customers, including planning, startup, ongoing operations, and service assurance.
    • 5.3.1 - Perform service delivery system planning (21635) - Planning the service delivery system by defining service requirements, capacity, resources, and delivery approaches needed to support effective and reliable service provision.
    • 5.3.2 - Perform service delivery system startup (21636) - Establishing and activating the service delivery system, including preparing resources, processes, and controls required to begin delivering services.
    • 5.3.3 - Operate service delivery system (21637) - Executing day-to-day service delivery activities using the established service delivery system to meet service commitments, performance expectations, and customer needs.
    • 5.3.4 - Assure service delivery system service (21638) - Monitoring and assuring service delivery system performance to maintain service quality, reliability, and compliance with defined service standards and expectations.
  • 5.4 - Deliver service to customer (20058) - Rendering service to the customer by initiating, executing, and completing tasks associated with service delivery.
    • 5.4.1 - Initiate service delivery (20059) - Collaborating with the customer to understand service needs. Review, understand, and modify the delivery scope with the organization needs of the customer in mind. Confirm readiness and identify, select, and assign resources. Plan for service delivery.
      • 5.4.1.1 - Review contract and agreed terms (20060) - Meeting with the customer, partner, and/or supplier to review the terms of the solutions contract and agree on the terms set forth.
      • 5.4.1.2 - Understand customer requirements and define refine approach (20061) - Taking the customer requirements for a solution and applying those requirements to a refined approach for service.
      • 5.4.1.3 - Modify/revise and approve project plan (20062) - Updating the project plan to align with the new solution approach agreed upon with the customer.
      • 5.4.1.4 - Review customer business objectives (20063) - Aligning the customer business objectives with the agreed service delivery solution.
      • 5.4.1.5 - Confirm environmental readiness (20064) - Confirming that the organization has the recourses necessary to meet the expectations for the solution for service delivery.
      • 5.4.1.6 - Identify, select, and assign resources (20065) - Identifying, selecting, and assigning resources required to deliver service to the customer. Ensure that all objectives are established and met, and the all rules of engagement have been identified and communicated.
        • 5.4.1.6.1 - Establish people objectives (20066) - Providing the workforce with a plan of action and goals necessary to provide a service. Make sure that those objectives are met.
        • 5.4.1.6.2 - Establish engagement rules (20067) - Establishing guidelines for how resources engage with the customer. For example, set rules of accountability, interaction, and accommodation when engaging the customer. Resources should be polite, empathetic, and attentive.
      • 5.4.1.7 - Plan for service delivery (20068) - Establishing a plan of action to successfully render a solution for service delivery.
    • 5.4.2 - Execute service delivery (20069) - Carrying out service delivery to the customer by creating and deploying the necessary solution. Analyze need and create a solution. Validate the solution and make changes if needed. Obtain approval to build/buy solution and then deploy solution to customer.
      • 5.4.2.1 - Analyze environment and customer needs (20070) - Understanding the needs of the customer and providing the necessary resources to meet those requirements within the scope of the organization.
      • 5.4.2.2 - Define solution (20071) - Creating a plan of action to provide service delivery to the customer through a possible solution. This solution should be in response to a collaborative effort made by the organization and the customer to meet service delivery needs.
      • 5.4.2.3 - Validate solution (20072) - Validating that the proposed solution is feasible and provides the needed services for the customer.
      • 5.4.2.4 - Identify changes (20073) - Realizing issues within the original drafted solution and providing changes to correct those issues.
      • 5.4.2.5 - Obtain approval to proceed (20074) - Gaining approval from all avenues to proceed with providing solutions for service delivery.
      • 5.4.2.6 - Make build/buy solution (20075) - Constructing or purchasing solutions necessary to provide service delivery.
      • 5.4.2.7 - Deploy solution (20076) - Providing the customer with promised services and solutions.
    • 5.4.3 - Complete service delivery (20077) - Implementing final steps to complete service delivery to the customer. Evaluate success through project review, complete finance activities, and confirm delivery. Release resources and manage completion by harvesting knowledge and systems by archiving records.
      • 5.4.3.1 - Conduct service delivery/project review and evaluate success (20078) - Reviewing the entire service delivery process to evaluate the success of the project from beginning to end.
      • 5.4.3.2 - Complete/finalize financial management activities (20079) - Insuring all payments are received and all activates therein are completed.
      • 5.4.3.3 - Confirm delivery according to contract terms (20080) - Confirming that the organization has satisfied all terms of the delivery contract set forth in collaboration between the organization and customer.
      • 5.4.3.4 - Release resources (20081) - Discharging leveraged resources from service delivery commitments upon completion. Returning resources to the resource pool.
      • 5.4.3.5 - Manage service delivery completion (20082) - Ensuring that all aspects of the service delivery process are completed both internally and externally.
      • 5.4.3.6 - Harvest knowledge (20083) - Garnering feedback from all avenues to collect a knowledge base concerning services rendered.
      • 5.4.3.7 - Archive records and update systems (20084) - Completing and archiving all records associated with requested services. Update all necessary systems to reflect those changes.