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Citibank: Performance Evaluation

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acct 6201 | Measuring performance: The Balanced Scorecard | Citibank: Performance evaluation | | | |

In an age in which financial performance is dependent on more than the management of tangible assets, it is necessary to move beyond traditional financial performance measurement and evaluate the adjacent behaviors which ultimately lead to improved financial success. Citibank has moved forward by introducing a new performance scorecard evaluation system. While it maintains a traditional focus on financial goals, additional measures meant to align the behaviors of employees throughout its organization with the company’s overall strategy are included. In particular, Citibank realizes that financial success is significantly dependent on overall customer satisfaction. The scorecard is meant to reinforce behaviors that will bring upper management’s strategy and vision to fruition.
Lisa consistently rated James above par throughout the year in all categories besides Customer Satisfaction. Although she may have been less than apt in critically reviewing his actual performance (i.e. across Strategy Implementation), it would be less than genuine to suddenly alter the standards by which James is being evaluated.
On the six measurements for which Lisa must evaluate James, she should rate him as follows:
Financial: Above Par
Strategy Implementation: Above Par
Customer Satisfaction: Below Par
Control: Above Par
People: Above Par
Standards: Above Par
Overall: Par

According to the preset standards, James cannot receive an overall “above par” rating given that he scored below par in Customer Satisfaction.
Citibank correctly identified a strategy that, if implemented correctly, would win market share and increase customer satisfaction. Although Frits and Lisa believe they have a high performing branch manager in James, he is not performing as well as they

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