This Bank is a $900 million (assets) bank.  The bank has eighteen branches. The result of implementation of an organization profitability analysis revealed three unprofitable branches.  However, they also were able to predict the deposit levels required for these branches to breakeven and an action plan for them to become profitable.

 They engaged RMA to assist and guide a special project to evaluate the feasibility of moving from an in-house core processing system to an outsourced system using the same Core system.   Based on the success of the Migration Evaluation project and the demonstrated knowledge of cost accounting by RMA, the bank retained RMA to assist in the implementation of the an Organizational Profitability System.  This became a joint effort between the software firm, bank accounting, and RMA.

• ·         Software firm: software development, interface to core, and report building
• ·         Bank Accounting: research, training in the use of the system, and ultimate production.
• ·         RMA: meet with senior management to guide them thru major policy decisions and analysis.
  

 The process began in May, 2009 and the first report was produced for the month of Aug, 2009 and presented to Senior Management in Sept, 2009.

 From this meeting several refinements were implemented.  Fourth quarter, 2009 results were presented to senior management in Feb, 2010 and then rolled out to profit Center managers.

Significant profit improvement opportunities have resulted from this project.   Another significant feature of the results of this approach was it became a senior management system, not just another accounting system.  This also avoided a common error of many trial & error decisions.

 The system balanced to the General Ledger I&E (within 1%) and was primarily “activity based”.  There were no “negotiated” cost (subject to disagreement and arguments).