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Citibank Casestudy

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Citibank: Performance Evaluation

1. Briefly analyze the performance evaluation plan that is currently in place at Citibank’s California branches. The California Division of Citibank has a new performance scorecard that highlights the importance of a diverse set of measures in achieving the strategic goals of the division. One of the new measures is on customer satisfaction indicators, which will tell how satisfied the bank customers are. It complements existing financial measures with new measures reflecting important competitive dimensions in the bank’s strategy. The Performance Scorecard measures six different types of components and they are: financial, strategy implementations, customer satisfaction, control, people, and standards. 2. Critically evaluate the pros and cons of having both objective and subjective components in this performance evaluation plan. There are many differences to weigh on objective components and subjective components. Objective components of this new scorecard are what is seen. Did profits go up? Yes. Did the numbers go up? Yes. Frits financials were impressive. The subjective components are the customer satisfaction ratings. Customer satisfaction can be made on customer’s emotions, opinions, and viewpoints. It is hard to measure, for example if someone wanted a loan and couldn’t get one; if they rate your customer service, they may grade it low, even if you delivered excellent customer service. Control measures if not met could be considered ineffective. People and standards can be swayed if certain people don’t like one another or if you are not accepted into the community. Employee’s ethics vary widely. 3. Based on the case material and reading from the text, what rating would you give James McGaran? The rating I would give James McGaran would be a “par” rating.

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