First Commonwealth Financial Corporation Essay
1. Will the BSC program at First Commonwealth provide Board members with the information they need to fulfill their governance responsibilities?
Does a board really need information beyond the results reported in a company’s monthly, quarterly and annual financial reports?
To engage board member’s expertise much more around the strategic direction that the company is taking would require giving different types of information to board and having different discussions in board meetings, but the effort to revamp the meeting process and agenda would be well worth the trouble. With only limited time available to review the information before the meetings and to perform their monitoring …show more content…
4. How useful are the board and executive scorecards developed by FCFC?
First Commonwealth has since launched a new business strategy that focuses on building profitable customer relationships rather than just pushing product, and the board is using its own scorecard to monitor the company’s progress and also to evaluate its own performance. Because it took the bold step of reengineering its governing practices in such a revolutionary way, First Commonwealth has earned Bank Director magazine’s Corporate Governance Award for 2005.
5. How effective was the new scorecard program in stimulating strategic discussions at the July 2003 board meeting?
Do you agree with Dave Dahlmann’s comment (bottom of page 6) about a potential need for coaching on how to have productive board discussions around enterprise and board scorecards?
6. How can enterprise, board and executive scorecards help First Commonwealth with external constituencies, such as shareholders, analysts, regulators, and potential acquisition targets?
The benefits of deploying a common value proposition and scorecard across homogeneous units are apparent. First, the process is simple. Once the corporate project team has