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Implementing Brokerage Service Measures

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The balanced scorecard has become a common management method in recent years. What’s even better about the balanced scorecard, or BSC, is that it’s gaining traction in the brokerage industry as well. If you run a brokerage firm and want to create your own balanced scorecard but don’t know where to begin, don’t worry. There are numerous sources available on the internet as well as various reading materials containing relevant information that can assist you in developing the best method for your business. But, before we get into the various metrics you can use, it’s important to first understand what a brokerage firm is and how it works in a corporate environment.Do you want to learn more? check out more .

Brokerage companies are, by definition, intermediaries, or middlemen in layman’s terms. On a regular basis, brokerage firms conduct a significant number of transactions between buyers and sellers of securities. You would be surprised to learn that, despite the global economic meltdown, the client base of most brokerage firms is still growing. With thousands upon thousands of transactions taking place every day, it’s no surprise that brokerage service indicators and measures are now needed.

As previously mentioned, there are a variety of brokerage service metrics and interventions that can be found almost anywhere. KPIs, or primary performance measures, are one way to do this. These are quantifiable indicators of how well the brokerage service firm performs. You can pick and choose which KPIs to use, and you can even tailor them to your brokerage firm’s needs. However, for the purposes of illustration, the most widely used KPIs are commission received per share, commission paid per transaction, and annual account maintenance charges per account. The Financial Position bucket contains the following KPIs.

You can select from the following widely used KPIs in the Legal Enforcement and Information Management bucket: lost message recovery time, the number of charged penalties, the number of embraced security measures, and the SEC compliance ranking.

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