In the banking and finance industry, performance management has always been a double-edged sword. On one hand, banks need strict controls, accountability, and measurable outcomes. On the other hand, excessive KPIs, rigid scorecards, and fear-driven appraisals often lead to confusion, burnout, and disengagement among employees.
This is why a modern Performance Management System is no longer about adding more indicators—it is about clarity, focus, and alignment.
A compelling example comes from EXIM Bank (Export-Import Bank of Malaysia), where a two-day sandmerit KPI workshop helped leaders rethink how KPIs should work in a real banking environment. In a testimonial video, Norhuda, Assistant Vice President at EXIM Bank, shared how the workshop fundamentally changed her perspective on KPIs, performance focus, and execution.
EXIM Bank Official Website: https://www.exim.com.my/en/
🎥 Watch the full testimonial video here: https://youtu.be/m5zQFqD3vTg
The Reality of Performance Management in Banking and Finance
Banks operate in one of the most demanding performance environments in the world. Every role is measured. Every decision is scrutinized. Every outcome is tied to risk, compliance, and financial impact.
Yet, many banking professionals face a common problem: too many KPIs and too little clarity.
Before attending the sandmerit workshop, Norhuda openly shared that she was managing 13 different KPI points. Her description was refreshingly honest—unfocused and a bit crazy. This situation is not unique to EXIM Bank. Across banking and finance, employees are often buried under layers of KPIs that compete for attention instead of guiding it.
A truly effective Performance Management System does not overload people. It helps them prioritize what truly matters.
A High-Energy KPI Workshop That Changed Mindsets
One of the first things Norhuda emphasized was the energy of the workshop. Unlike traditional KPI or performance management training—which is often perceived as dry, compliance-driven, or theoretical—the sandmerit workshop was described as high energy, engaging, and enjoyable.
This distinction matters.
In banking environments, KPIs are frequently associated with:
- Appraisal stress
- Fear of underperformance
- Negative evaluations
Norhuda explained that the workshop “opened our eyes” to a completely different way of approaching KPIs—one that removes the usual sense of dread. Instead of viewing KPIs as a threat, participants began to see them as tools for direction, focus, and contribution.
This mindset shift is critical. Without it, no Performance Management System—no matter how advanced—can succeed.
From 13 KPIs to 4–5: Why Focus Beats Complexity
Perhaps the most powerful takeaway from Norhuda’s testimonial was the drastic simplification of KPIs.
Through the sandmerit methodology, she learned how to reduce her performance metrics from 13 KPIs down to just four or five essential indicators.
This is the essence of a high-performing Performance Management System:
- Less noise
- More focus
- Clear priorities
In banking and finance, simplification does not mean lowering standards. Instead, it means identifying the critical drivers that truly impact outcomes. When employees are asked to focus on a small number of meaningful KPIs, several things happen:
- Decision-making becomes faster
- Effort becomes more concentrated
- Accountability becomes clearer
Instead of spreading attention thinly across dozens of indicators, teams can channel their energy toward delivering real value.
Aligning Individual KPIs with Corporate Objectives
Another key lesson from the workshop was alignment.
Norhuda highlighted that the simplified KPI structure ensured individual tasks were directly driven by corporate objectives. This is where a Performance Management System becomes a strategic execution tool rather than an administrative exercise.
In large financial institutions, corporate strategies often feel distant from daily work. Employees may know the vision, but they struggle to see how their individual roles contribute to it.
By streamlining KPIs, EXIM Bank employees gained:
- Clear line of sight from daily tasks to organizational goals
- Better understanding of priorities
- Stronger ownership of outcomes
When alignment exists, performance management stops being theoretical and starts driving real execution.
Making KPIs Meaningful, Simple, and Easy to Create
One of the most overlooked challenges in performance management is KPI design.
Many organizations struggle because their KPIs are:
- Overly complex
- Difficult to measure
- Poorly communicated
Norhuda shared that the workshop provided practical insights on how to make KPIs meaningful, simple, and easy to create. This is a crucial capability for any modern Performance Management System.
When KPIs are simple:
- Employees understand what success looks like
- Managers spend less time explaining metrics
- Reviews become objective rather than emotional
In banking and finance, where accuracy and clarity are paramount, simple KPIs create a more disciplined and confident workforce.
From Measurement to Management: Why Data Matters
A core principle emphasized during the workshop was straightforward but powerful:
If you cannot measure it, you cannot manage it.
A Performance Management System exists to turn abstract goals into measurable actions. Once things are measurable:
- Progress becomes visible
- Gaps become clear
- Improvement becomes intentional
Norhuda noted that simplifying KPIs helped employees focus on giving their best effort, rather than merely trying to satisfy multiple conflicting metrics. This shift transforms performance management from a reporting exercise into a performance improvement journey.
Removing Fear from KPIs in Banking Culture
Fear is one of the biggest silent killers of performance in banking institutions. When KPIs are associated with punishment, employees:
- Avoid transparency
- Hide issues
- Play safe instead of innovating
The sandmerit workshop reframed KPIs as tools for clarity and contribution, not control. This cultural shift encourages openness and responsibility.
A human-centered Performance Management System creates:
- Psychological safety
- Honest conversations about performance
- Continuous improvement rather than blame
For financial institutions like EXIM Bank, this cultural foundation is essential for long-term sustainability.
Why Performance Management Systems Must Evolve in Banking & Finance
EXIM Bank’s experience reflects a broader truth across the banking sector.
Modern banking requires:
- Strategic agility
- Focused execution
- Engaged professionals
Yet, these outcomes cannot be achieved with outdated, overloaded KPI frameworks. A modern Performance Management System must:
- Simplify without dumbing down
- Align without micromanaging
- Measure without intimidating
By focusing on fewer, more meaningful KPIs, banks can unlock higher performance without increasing pressure.
Helping Employees Deliver Management’s Vision
Norhuda concluded that simplifying KPIs helped employees better achieve what management envisions for the organization.
This is the ultimate purpose of any Performance Management System:
- To translate leadership intent into daily action
- To align effort across departments
- To create measurable progress toward strategic goals
When employees clearly understand what matters most, performance becomes purposeful rather than forced.
Conclusion: Less KPIs, Stronger Performance
EXIM Bank’s testimonial demonstrates that performance management is not about how many KPIs you track—but how well they guide behavior.
By adopting a focused, human-centric Performance Management System, organizations can:
- Reduce confusion
- Increase engagement
- Strengthen strategic alignment
- Drive meaningful results
In banking and finance, where complexity is unavoidable, clarity becomes a competitive advantage.
🎥 Watch the full testimonial video from EXIM Bank here:
https://youtu.be/m5zQFqD3vTg
🌐 Visit EXIM Bank:
https://www.exim.com.my/en/
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