As the banking industry continues to adapt to the unprecedented pace of change, managing people is becoming increasingly more challenging. The old performance measurement criteria, traditionally used to link rewards to return-on-asset performance, are no longer effective in channeling employees' energies in the direction the new banking industry needs to take them.
The challenge facing most banking companies today is the transition into a marketing organization, a retailer of financial services. In order to do that, individual goals at every level must be set, since goal attainment is an important motivating tool in a sales culture. Without such a tool, employees wander directionless without knowing whether they have achieved success or not.