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Management Information

Competitive advantage

Competitive advantage in the credit industry comes from faster response to opportunities and threats. A key component of faster response is good management information - together with effective management decision making and efficient reliable implementation..

Expected vs. Actual

All policies are based on assumptions. And these assumptions are always wrong. Good management information identifies the gaps between the expected results and what actually happens - quickly and reliably. It plays a key role in identifying how the assumptions differ from reality - and in adjusting policies to better match reality. But to do this, management information must be well designed and understood.

ScorePlus Design Principles

ScorePlus believes efffective management information should:

  • match outcomes to clearly defined “expected” values
  • provide well organised measures of financial outcomes within the framework of annual budgets
  • use statistical tests to establish when data can be relied on to make decisions
  • rapidly identify major departures from expected portfolio trajectories
  • match organisational structure to facilitate decision making and implementation

Meeting these principles leads us to question existing practice - much of today’s management information is a re-hash of poorly understood metrics and outdated benchmarks. An example is the continued use of the Population Stability Index (PSI) for scorecard measurement when much more effective alternatives exist (e.g. average population PD).

How we work

ScorePlus works with clients to:

  • review decision making structures - who decides what based on what information
  • identify high level reporting requirements - taking into account regulatory, technical and especially business needs
  • design a database structure capable of evolving to match changing requirements
  • create report templates
  • work with users to interpret reports

Why use ScorePlus?

ScorePlus offers a unique combination of senior management perspective and technical expertise to make your MI do what the name says - help you to manage your business more effectively.

For more information contact: consultancy@scoreplus.com


Explore our ideas by reading the published papers by Gerard Scallan. These are available in our Reference Papers in our Downloads section.