Title: Performance analysis on process level: benchmarking of transactions in banking

Authors: Andreas Burger, Jurgen Moormann

Addresses: Commerzbank AG, Group Markets Operations, Mainzer Landstr. 151, 60261 Frankfurt/Main, Germany. ' Frankfurt School of Finance & Management, ProcessLab, Sonnemannstr. 9-11, 60314 Frankfurt/Main, Germany

Abstract: Banks are looking for ways to close their operational performance gap. This paper proposes a new approach for the detection and analysis of process inefficiency. The benchmarking of transactions reveals insights concerning the performance of a business process and offers new opportunities for process improvement. The article delivers an overview of the concept as well as the results of an application in a large organisation. The benchmarking approach is based on data envelopment analysis. The approach is applied to a typical banking process using actual operational data. This real life application documents the large variance in performance found on transaction level and the existence of inefficiency. Furthermore, the pattern of inefficiency differs across the three proposed views of performance. This research raises issues in relation to the process execution performance. The analysis provides deep insights that can be helpful for understanding and improving business processes.

Keywords: performance measurement; process management; banking transactions; intrinsic inefficiency; data envelopment analysis; DEA; benchmarking; process inefficiency; banking efficiency; bank processes.

DOI: 10.1504/IJBAAF.2010.037157

International Journal of Banking, Accounting and Finance, 2010 Vol.2 No.4, pp.404 - 420

Published online: 29 Nov 2010 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article