Discover how to use activity-based management to improve your bottom line The first book of its kind to focus on activity-based management in the financial services industry, Activity-Based Management for Financial Institutions: Driving Bottom Line Results will show you how to drive changes to your organization's bottom line. After providing a brief overview of a financial services activity-based costing model, this book focuses on how to directly improve net income, covering essential topics including costing, chargeback, and pricing; implementing ABC; implementing ABM; managing organizational change; and avoiding pitfalls. Written for those in the financial services industry-banks, securities firms, insurance companies Reveals how to drive benefits to the bottom line through disciplined execution of activity-based management and organizational change management Provides real world examples and tools for quick results and sustained success This one-of-a-kind book will take your financial institution from stuck to financially successful, driving profitability and performance.

Discover how to use activity-based management to improve yourbottom lineThe first book of its kind to focus on activity-based managementin the financial services industry, Activity-Based Managementfor Financial Institutions: Driving Bottom Line Results willshow you how to drive changes to your organization's bottomline.
After providing a brief overview of a financial servicesactivity-based costing model, this book focuses on how to directlyimprove net income, covering essential topics including costing,chargeback, and pricing; implementing ABC; implementing ABM;managing organizational change; and avoiding pitfalls.
* Written for those in the financial services industry-banks,securities firms, insurance companies
* Reveals how to drive benefits to the bottom line throughdisciplined execution of activity-based management andorganizational change management
* Provides real world examples and tools for quick results andsustained success
This one-of-a-kind book will take your financial institutionfrom stuck to financially successful, driving profitability andperformance.

Foreword ix
Preface xv
About the Website xix
Acknowledgments xxi
Chapter 1 What Are ABC and ABM? 1
What Is ABC? 1
What Is ABM? 7
Chapter 2 Costing, Chargeback, and Pricing 13
Define Your Objectives 13
Costing: Absorption Choices 19
Costing: Driving Costs from Support Areas 24
Chargeback 27
Rates 34
Bank Branch Profitability 41
Pricing 44
Chapter 3 Implementing ABC 55
ABC Implementation Guiding Principles 55
Model Rules, Assumptions, and Design Documents 59
Driver Decisions 60
Attribute Decisions 62
Level of Detail Decisions 66
Tools 69
Activity and Driver Dictionaries 70
Putting It All Together: An ABC Example 72
Chapter 4 Implementing ABM 83
Structuring the Organization and Process for Success 83
Differences between ABM and ABC Staffing 100
Project Portfolio Management 101
Driving Results 107
Additional Considerations for Financial Services 113
Chapter 5 ABC/M in Shared Services 121
Starting ABC/M with Shared Services 121
Communication Barriers 122
Expected Dialog for Planning 124
Integrating the IT Model 129
Driving Value within Shared Services: IS Examples 137
Chapter 6 Managing Organizational Change 143
Importance of Organizational Change Management 143
Organizational Readiness and Overcoming Resistance 145
Your Role as Change Agent 153
Chapter 7 Avoiding the Pitfalls: Lessons Learned 161
ABC Lessons Learned 161
ABM Lessons Learned 171
Chapter 8 Beyond ABC/M 179
Portable Skills 179
Adjacent Careers 184
In Conclusion 189
Appendix ABC Model and Cost Object Reporting Rules and Assumptions 191
Modeling Rules and Assumptions 191
Cost Object Reporting Rules and Assumptions 193
Index 195