Thomas W. Harvey

Bio: Thomas W. Harvey is an academic researcher. The author has contributed to research in topics: Financial services & Revenue. The author has an hindex of 3, co-authored 6 publications receiving 27 citations.

Quality Value Banking: Effective Management Systems That Increase Earnings, Lower Costs, and Provide Competitive Customer Service

Abstract: The foundation of quality value banking the banker's world has changed quality improvement is the answer the quality value engineering approach getting organized how to implement quality value engineering value creation dialogues the Malcolm Baldridge National Quality Award.

The Banking Revolution: Positioning Your Bank in the New Financial Services Marketplace

Abstract: This text offers bankers a perspective on their history and, more importantly, their next steps. It offers quantitative data on customer and competitive trends, discusses solutions and strategies for high profitability and performance, and gives case studies of successful institutions.

The Financial Crisis of 2008: "It's a Requirement to Leave Your Ethics at the Door."

Abstract: This article investigates the behavior within the financial services industry that contributed to the Crash of 2008 and the Great Recession of 2009 – 2010. Based on the theory of Adam Smith, it is not the typical academic paper as it analyzes the work of industry practitioners who wrote about the run-up of real estate and stock prices between 2003 –2009 and the ultimate collapse. It is also an examination of the role of government in the economy and the financial services industry. The intent is to initiate conversations about ethics in the Finance major of America’s colleges and universities.

From Washington to Wall Street: The Relationship Between National Politics and Stock Market Performance

Abstract: The question explored in this paper is the relationship between national politics and the stock market. There is an interesting relationship between Washington and Wall Street that has existed in the United States for decades that many citizens either do not know or do not understand. Government has had an increasingly influential role in the economy of the United States, particularly since the creation of the Federal Reserve. We seek to understand and explain the impact the balance of power in Washington and political activity can have on the performance of the stock market.

Service Quality as Profit Strategy

Abstract: Throughout the late 1980s and early 1990s, headlines in publications like The Wall Street Journal, Business Week, and American Banker told the country about the troubles that its banks were having. The once profitable real estate market had become full of non-performing assets which caused severe financial distress within the industry. Those difficulties, in turn, resulted in some drastic actions to try to increase earnings and, in some cases, the disappearance of previously-powerful institutions like Bank of New England and Ameritrust.Within these stories were paragraphs about cost-cutting and the number of people who were to lose their jobs because of the asset quality problems. The banks were hoping that the decreased salary expense, represented by those who were being terminated, would be sufficient to keep their earnings at levels where the analysts would still speak favorably about them and the threats of insolvency and/or takeover would be mitigated.It was disturbing, to say the least, since releasing people who were serving customers, both externally and internally, had little or no correlation to the problems in the portfolio, but that is what the banks did. However, with fewer people available to work with customers, the banks found it more and more difficult to provide first-rate service.THE COST OF QUALITYService quality is all that differentiates a financial institution. GMAC and GECC, among others, charge competitive rates on vehicles, houses, and other capital goods; ATT and the brokerage houses pay more attractive rates on their savings accounts.As this competition increased and put pressure on the margin, in order to maintain their previous earnings levels, the banks either had to enhance revenue streams or to reduce cost. Even with the psychological trauma that accompanies the latter, typically it was the chosen strategy. However, it was done at the expense of service quality, which continued to decline.Cost pressures are driving managers to keep a lid on salaries, cut staff, and demand greater productivity. These actions often sabotage service, as anyone can attest who has waited fifteen minutes to reach a teller, only to be treated as an annoying obstacle in the teller's race to push paper. Charging fees for services that formerly were "free," and cutting out expected services such as returning canceled checks, tend to darken customers' perceptions of service . . . .(1)When we were conducting the research for our book, Quality Value Banking, we questioned a director of a large Midwestern bank about service quality in the financial services industry. He responded, "Is there any?"Everyone has a story about the poor service banks provide, and there is more truth to them than fiction. Experts were saying that 30% to 40% of what banks do is related to doing things wrong or to things that do not have to be done at all. That means that banks are spending 30 to 40 cents of every dollar making mistakes and errors, correcting them, duplicating them, and wasting time in the process, which is bound to displease their customers.IBM has reported that its cost of poor quality was 30% of its operating costs; BancOne indicated that it was 25% of NIE; and a study at Southwest Missouri State University revealed that it was 30% of sales. It may be any one of these, but the key point is that the cost of poor quality is a big number, and it can be reduced.This concept received further support in the law that created the Malcolm Baldrige National Quality Award. Section 2 of it read:American business and industry are beginning to understand that poor quality costs companies as much as 20 percent of sales nationally and that improved quality of goods and services goes hand in hand with improved productivity, lower costs, and increased profitability. [Italics added](2)As we worked with this idea, we theorized that if the banks could reduce or eliminate this waste and resultant rework, they would decrease their cost of operation. …

Models for performance benchmarking: Measuring the effect of e-business activities on banking performance

Abstract: The current paper presents mathematical programming models for use in benchmarking where multiple performance measures are needed to examine the performance and productivity changes. The standard data envelopment analysis method is extended to incorporate benchmarks through (i) a variable-benchmark model where a unit under benchmarking selects a portion of benchmarksuch that the performance is characterized in the most favorable light, and (ii) a 4xed-benchmarkmodel where a unit is benchmarked against a 4xed set of benchmarks. The models are applied to a large Canadian bank where some branches’ services are automated to reduce costs and increase the service speed, and ultimately to improve productivity. The empirical investigation indicates that although the performance appears to be improved at the beginning, productivity gain has not been discovered. Our 4nding can facilitate the bankin examining its business options and further point to weaknesses and strengths in branch operations. ? 2004 Elsevier Ltd. All rights reserved.

Aligning operations, marketing, and competitive strategies to enhance performance: An empirical test in the retail banking industry

Abstract: The close linkage between competitive strategy and functional strategic activities is asserted to be a precondition to the achievement of optimal business performance. This study explores how the relationship between (and among) operations, marketing, and competitive strategies affects organizational performance in the banking industry. Our findings show that: (a) competitive strategy moderates the relationship between operations and marketing strategic activities, and organizational performance, (b) certain integrated strategic decisions of operations and marketing functions have a significant impact on organizational performance, and (c) the performance of retail banks within a strategic group differs depending on the quality of the strategic fit.