Locate, group and up goes performance
This study was based on work done for a bank with rural focus. Most of the branches were established in the southern state of Tamil Nadu, India.
Banks are continuously opening branches in villages. Several (4-10) villages were grouped together to form a cluster. Every cluster had a manager + team to execute day-to-day activities. The cluster manager typically needs to travel between the villages belonging to his/her cluster.
Motivation Performance (Average Cluster Revenues) is directly related to the ‘tightness of the cluster’. If the villages in a cluster are nearby or tight, then the average cluster performance is higher.
Note: Fictitious (but representative) data presented here.
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Question If the performance of the company is closely related to cluster tightness; group villages in a way improve performance
Data Collected from ~150 centers belonging to 60 clusters (which evolved as the company grew).
Predictive Analytics Method Dendrogram Hierarchical clustering.
Initially, each village is assigned to its own cluster and then the algorithm proceeds iteratively, at each stage joining the two most similar villages, continuing until there is just a single cluster. At each stage distances between clusters are recomputed.