KPIs remoulded into 'Needs' analysis
Old habits are hard to kick in Australian banking, with KPIs still in force at a number of big banks. They've been rebadged as "'behaviours' measures, focused on sales and revenue," the Finance Sector Union told the Royal Commission in misconduct in financial services.In a heated submission following the fourth round of hearings, the FSU has undercut the industry- wide promises of taking heed of the Sedgwick Review, which reported to the Australian Banking Association last year."Despite the recommendations of the Sedgwick Review, banks continue to use scorecards and leader boards to compare sales, the FSU said.The union conceded that "formal sales targets have been reduced. However, it has been supplemented with 'customer needs analysis' processes.The FSU asserted that "frontline staff are now being placed on performance management (which endangers their ongoing employment), and their eligibility for bonuses determined, by reference to how many customer needs analysis processes they cause to occur."From the perspective of the bank, a customer needs analysis process is an indirect measure of sales."The banks know that they will make more sales by causing more of these review processes to occur."The union painted a picture of deliberate industry measures to re-purpose past methods.It told the Royal Commission that "despite the recommendations of the Sedgwick Review, banks continue to use scorecards and leader boards to compare sales performance. These are now often described as 'Informal Visual Aids' or 'Visual Management Tools'."A change in nomenclature does not change function. Such tools have no purpose beyond attempting to increase sales volumes."Union members continue to describe teleconferences with regional managers which can occur up to several times on a single day, for the purpose of reporting sales progress and outcomes."KPIs remain directly, or indirectly through 'behaviours' measures, focused on sales and revenue and not on ethical behaviour or the customer interest."