tag:blogger.com,1999:blog-235433516644980443.post9007678824572412315..comments2024-03-27T05:08:10.195-04:00Comments on Jeff For Banks: Don't let perfect be the enemy of very good in bank profitability.Jeff Marsicohttp://www.blogger.com/profile/12153599647481141591noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-235433516644980443.post-10385840688203518512011-06-30T15:00:32.255-04:002011-06-30T15:00:32.255-04:00As a manager, I always stressed that "90% per...As a manager, I always stressed that "90% perfect" was good enough. If it takes X amount of time to achieve 90% perfection, it will almost always take 2X to achieve 100% perfection. 100% perfect isn't operationally efficient. At 90%, you still get an "A grade" for your efforts, which is usually much better than your competitors achieve.Jeffry Pilcherhttps://www.blogger.com/profile/10851960219269534085noreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-55178664230278637752011-06-27T11:06:06.482-04:002011-06-27T11:06:06.482-04:00Mike,
This is a leadership issue, in my opinion. ...Mike,<br /><br />This is a leadership issue, in my opinion. If cost per account is rationally derived, then there should be actionable results. Because of the "Art" portion of profitability measurement, those inclined to inaction have their primary objection. <br /><br />The leader must differentiate between objections aimed at improving data or stonewalling.<br /><br />Thanks for the comment.<br /><br />~ JeffJeff Marsicohttps://www.blogger.com/profile/12153599647481141591noreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-21570364528655477432011-06-27T10:22:30.887-04:002011-06-27T10:22:30.887-04:00Jeff - love the comment regarding "directiona...Jeff - love the comment regarding "directionally correct". Simply put, the information needs to be accurate enough to make an informed decision about what action, or inaction, to take. <br /><br />I really like your thoughts about weighting certain transactional costs and deividing accounts into quintiles - it's more accurate than all in one pool. <br /><br />I tend to discuss the old law of diminishing returns - is it worth THAT much more effort to tighten up profitability 1 more percent? How will that change the decisions you would make on that information?Mike Bartoohttp://www.gomarquis.comnoreply@blogger.com