...com/business-school-cases/citibank-performance-evaluation-case-analysis/ Citibank: Performance Evaluation Case Analysis November 21, 2010 James McGaran’s Performance Evaluation. Doing the year-end performance evaluation for James McGaran, the branch manager of the flagship office in the Los Angeles area, was probably one of the most difficult experiences in all my years with Citibank in the capacity of area manager. James has been not just an exemplary employee in our area, but really someone who other branch managers could always look up to. His career with Citibank has been a quick progression through the ranks from the assistant branch manager to the manager position at the most important of all the bank branches in the Los Angeles area – the Financial District office. Until this year his performance exceeded expectations in every single year. His financial results have been truly impressive. However with the introduction of the new performance scorecard which reflected the company’s broadening of the evaluation scope to customer satisfaction score, it became obvious that this was essentially the only area where James’ performance was lacking. At the same time Frits Seegers, President of Citibank California, was convinced that customer satisfaction indicator was important not only for meeting ever-increasing expectations of highly-sophisticated clients, but also for achieving strategic goals of the division, and staying competitive. Since five of the six performance measures in...
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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 ...
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...Citibank : Performance Evaluation “Performance management is about creating relationships and ensuring i l i hi d i effective communication Its about focusing on what organisations, managers and team members need to dt b dt succeed” - Robert Bacal Performance Management Why do even best of great strategies fail? A study of 275 professional portfolio managers reported that the ability to execute strategy was more important than the quality of the strategy itself (“Measures That Matter,” Ernst & Young, Boston, 1998) (“M Th t M tt ” E t Y B t In the early 1980s, a survey of management consultants reported that less than 10 percent of effectively formulated strategies were implemented successfully (Walter Kiechel, “Corporate Strategists Under Fire,” Fortune, Dec. 27, 1982). A 1999 Fortune article, in a cover story of prominent CEO failures, concluded that the emphasis placed on strategy and vision created a mistaken belief that the right strategy was all that was needed to succeed The authors concluded that “…in succeed. in the majority of cases—we estimate 70 percent—the real problem isn’t [bad strategy]…it’s bad execution.” (R. Charan and G. Colvin, “Why CEOs Fail,” Fortune, June 21, 1999). , , ) Q 1 : Why has Citibank introduced a Performance Scorecard Components of a Scorecard Perspectives: six perspectives on enterprise performance (Financial, Strategy Implementation, Customer satisfaction, C t l , People and ti f ti Controls P l d Standards Standards) Involvement...
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...deposits, loans, money market investments, etc., that may be summarized on a single bank statement. What is the new Performance Scorecard? While financial measures typically were the way Citibank measured success in the past, they recognized a need to measure customer service as well, and thus developed a Performance Scorecard. The six different types of measures the Performance Scorecard evaluated were: financial strategy implementation customer satisfaction control people standards Citibank felt it was necessary to update the previous evaluations to include non-financial measures because they recognized that these measures may in fact be more critical to the long term success of the franchise. As a result, by adding the non-financial measures to the current measures, Citibank was able to reflect competitive dimensions in the bank's strategy. Why is the Customer Satisfaction Score metric an important component? Customer satisfaction indicator was important not only for meeting ever-increasing expectations of highly-sophisticated clients, but also for achieving strategic goals of the division, and staying competitive. Citibank’s current strategy focused on customer service as a key differentiator. Hence, Customer Satisfaction measure is considered as critical to the long term success of the bank, as well as a leading indicator of future financial performance. If customer satisfaction were to deteriorate, it was only a matter of time before it showed in the financials...
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...CS 507 Adv. Computer Architecture Home Assignment No. : 1 Due Date : March 12, 2014 Q. No. 1 (40) SPEC CPU2006 provides benchmark suites to evaluate CPU performance. CINT2006 lists the benchmark programs to evaluate performance of CPU for integer performance. It is desired that you evaluate comparative performance of the CPU of your laptop with that of your friends. You may select two or more programs from CINT2006 and execute them on your own machine and that of your friends either with or without any modification to programs selected by you. You need to measure user and system times for each program executed for machines used for comparison. You are required to submit a report containing configuration of m/c.s, CPU details, OS and compiler details, source listing of programs executed, details of modifications in programs, if any, and performance. In case you are not able to run programs from CINT2006, you may select appropriate toy benchmark programs. Q. No. 2 (20) Amdahl’s law states the law of diminishing returns. Demonstrate this though a graph between overall speedup and enhancement made. Q. No. 3 (20) Write a report providing growth of DRAM in terms of priceperformance in the current decade. Please do list sources from where you have collected your data. Q. No. 4 (20) We wish to evaluate core utilization of your laptop processor for a set of programs for different application. Programs may include matrix multiplication, counting of vowels, or displaying certain...
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...Abstract To study the Citibank Performance evaluation case and evaluate James McGaran’s performance assuming the role of Lisa Johnson. Describe the approach taken in performance feedback session, sequence of conversation and supporting references to backup your evaluation. To Review the Citibank evaluation system as a consultant and recommend possible procedural and processes changes to improve its performance evaluation system. Citibank performance evaluation system Until 1994 Citibank performance evaluation system was based on the quantitative measure (financial measures) not both quantitative and qualitative measures (MBA6220, 2011) due to the type of services offered by the bank. With the change in Citibank’s strategy in California it was essential to measure both the qualitative and quantitative measures and a new performance evaluation system was tested in 1995 to be introduced from the first quarter of 1996. The performance scorecard of the system was built around six different types of measures: financial, strategy implementation, customer satisfaction, control, people and standards (Davila, A & Simons, R, 1997). Financial measures were computed from the regular accounting system, strategy implementation measures could be tracked based on the target customer segment relevant to branch strategy and control measures were measured based on internal auditor’s evaluation on the branch’s internal control processes. People and standards – the non-quantifiable ratings were...
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...Performance management A Citibank case study Made by: Bryan Rinders, Marten Moolhuizen, Alrawahi Hemi, Yihai Wang and Yikun Du Prefatory note The report is based on the analysis of a classic management case that about the Citibank and the strategy performance management tool it performed, the balance scorecard. After analyzed the Citibank case, our research group came up the question: What are the main reasons Citibank fails to measure customer satisfaction and what can be done to change this, and the other steps we have to take in order to answer the question. We would like to thank all those who have given us their generous help, commitment and enthusiasm, which have been the major driving force to complete the current paper. However, we should thank every member in the team at first. Everyone in the group tried their best to find sources and materials, finish their own part in time. And thanks to our university and all the teachers who give us academic knowledge and skills. This proposal is mainly finished by ourselves. There must be some mistakes, because of our carelessness and limitation of knowledge. We are sincerely looking for your feedback. Yihai Wang, Marten Moolhuizen, Bryan Rinders, Alrawahi Hemi and Yikun Du 2015.10.20 Enschede Executive Summary The reason why this proposal is made is because of a change in strategies in 1995, the California division of Citibank decided to implement a new performance scorecard to measure a more efficiently performance...
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...The rational for introducing a performance scorecard falls within two extremes (1). At one end, some firms may see scorecards as simply a “framework for grouping existing measures into categories, and displaying the measures graphically (1)” which permits senior management to track items of interest and gauge operational performances. On the other end, a scorecard can be used as a “robust organization-wide strategic planning, management and communications system” which among other things “align the work people do with organization vision and strategy (1)”. In the case of Citibank, although the rational for the scorecard may lean towards the strategic planning end, the manner in which it was developed and the manner in which it is ultimately being used currently, as a bonus determinant, falls much more in the end of gauging operational performance. In order to ensure that the scorecard is also useful to Citibank as a strategic planning tool, it is important that the senior managers not only use the results to improve their management techniques but also to identify areas of weakness of the organization. Citibank’s approach in California was geared towards providing “relationship banking coupled with a high level of customer service (2)”. They recognized that there was a strong correlation between customer satisfaction and the profitability for the bank due to the fact that the customer’s expectations and demand for high quality services increased simultaneously with their...
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...One of the top priority areas of Citibank corporate reform is Human Resource Development. The Bank has undertaken several initiatives to ensure induction and training of professionals with the objective of ensuring high level of professionalism and productivity at all levels of its employees. Through computer training, various in-house courses, sponsorship of staff for studies at professional institutions and seminars, the Bank is providing its employees the opportunities for continuous development and learning. Effective implementation of corporate reform and business development strategies in line with best international practices has enabled Citibank to maintain its position in a highly competitive business environment. Citibank also stresses on workforce diversity and encourage specially women to join the organization. Codes of conduct and ethical issues are also regularly reinforced to the employees. INTRODUCTION Citibank Pakistan's Milestones of the 90's The nineties were a decade of domination and leadership for Citibank in the Pakistani marketplace and the trend continues into the new millennium. 1990-1996 Consumer Bank was established • Consumer Asset Business is launched. • Car Financing is introduced. • CitiGold Priority Banking is established. CitiPhone Banking launched. • Citibank Visa Card (Gold and Silver) is launched • Self-Service Banking launched • Citibank, N.A. launches its Intranet System...
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...Citibank Performance Evaluation 5-04-14 Executive Summary In this paper the discussion will be based on Citibank’s performance review process, James McGaran’s feedback for last year’s appraisal & approach to give that feedback, and my recommendations of changes in processes and procedures that I am recommending. James McGaran has been employed by Citibank for the last eleven years and started as an Assistant Branch Manager and was promoted quickly through the ranks to Branch Manager. He has delivered exceptional results during his time as Branch Manager of one of the most important branches in the Los Angeles area. In 1995 a decision was made to update the performance evaluation to drive not only financial results but also drive strategy implementation, customer satisfaction, controls needed in banking, and leading people. Based on what is presented as the current Citibank performance review template in the Harvard Business School article changes should be made to reflect a more rounded feedback loop. Performance Review Session with James McGaran James is going to receive an overall Par rating for his performance review based on the criteria set out in the Citibank review procedure. The procedure lays out that if you have any area in the review that is below par the highest overall score can be only Par. (Harvard, 1999) Approach to the feedback session with James The approach to give James feedback on his performance for...
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...Citibank Case: Questions and Answers 1) Why has Citibank introduced a performance scorecard? The article comes straight to the point articulating that Citibank introduced a performance scorecard for the sole purpose of “highlighting the importance of a diverse set of measures in achieving the strategic goals of the division”. Because Citibank was competing with Bank of America and Wells Fargo, at the least, they had to set themselves apart within the banking sector. Citibank wanted to “build a profitable franchise by providing relationship banking combined with a high level of service to its customers”. Because customers expected service to grow along with the net worth of the company, the adaption of the new performance scorecard was essential in staying competitive. Managers saw this performance scorecard as a way for people to have a broad view of the business that ultimately would be critical to the success of the company. The article goes on to state that the new performance scorecard was to “reflect the importance of non-financial measures as leading indicators of strategy implementation. It complemented existing financial measures with new measures reflecting important competitive dimensions in the bank’s strategy”. Because the performance scorecard focused on 6 different dimensions (financial, strategy implementation, customer satisfaction, control, people, and standards), it provided a holistic approach to how the people at the company were doing. Performance scorecards...
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...Main Issues in the Citibank Performance Evaluation Case 1. During the 1990s, Citibank had introduced the new performance score card as a performance evaluation method. 2. This case study is about a branch manager, James McGaran, who had shown outstanding performance in the previous year in the prestigious Los Angeles branch. 3. He had been successful in delivering excellent financial results. In fact, James scored “above par” in four of the six performance areas, financial measures, strategy implementation, people, and standards, and “on par” in control measures. However, he scored “below par” in customer satisfaction. 4. Therefore, his overall performance could only be “on par”. This would mean that his total annual compensation would be much less than he expected. What was more worrisome was the fact that his self-esteem could be diminished. How the main issues can be addressed 1. President of Citibank, California, Frits Seegers was fully committed to pursuing customer satisfaction indicators as a means to meeting ever-increasing expectations of sophisticated customers and achieving strategic goals and staying competitive. 2. Although James was an outstanding and dedicated manager, his performance in customer satisfaction needed improvement, which deserved a “below par” rating. 3. Although there was a risk of James’ not viewing the rating as fair and leaving the company, this was outweighed by the risk of other managers in the area viewing the...
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...RESEARCH PAPER NO. 1488 Strategy, Organization, And Incentives: Global Corporate Banking At Citibank David P. Baron David Besanko April 1998 RESEARCH PAPER SERIES GRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY Research Paper No. 1488 STRATEGY, ORGANIZATION, AND INCENTIVES: GLOBAL CORPORATE BANKING AT CITIBANK David P. Baron and David Besanko Stanford University and Northwestern University April 1998 Abstract This paper addresses the interplay of strategy, organization, and incentives in a global company. The basic framework takes one step further Chandler’s perspective that structure follows strategy by incorporating incentives chosen in response to both strategy and organization. The analysis of these three components of corporate policy is guided by a model of organization developed in earlier papers (1996, 1997). The perspective is that strategy is based on matching opportunities and capabilities. Capabilities reside in an organization’s shared know-how, and organization structure serves to mobilize a firm’s capabilities in pursuit of opportunities. How organization structure mobilizes capabilities depends on the complementarities among its activities and the pattern of spillovers that underlie its capabilities. When the activities include both complements and substitutes, and when the pattern of spillovers is complex, a mUlti-dimensional organization is required to manage the interrelationships. In multi-dimensional organizations the incentive...
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...Harvard Business School 9-198-048 Rev. October 14, 1999 Citibank: Performance Evaluation Frits Seegers, President of Citibank California, was meeting with his management team to review the performance evaluation and bonus decisions for the California branch managers. James McGaran's performance evaluation was next. Frits felt uneasy about this one. McGaran was manager of the most important branch in the Los Angeles area, and his financials were impressive. A year ago he would have received "above par" rating with full bonus. But last year, the California Division of Citibank had introduced a new performance scorecard to highlight the importance of a diverse set of measures in achieving the strategic goals of the division. Among the new measures introduced was a customer satisfaction indicator. Unfortunately, James McGaran had scored "below par" on customer satisfaction. Frits looked at Lisa Johnson, the area manager supervising James McGaran. Frits had read Lisa's comments (Exhibit 1). The comments were very positive, but Lisa had not wanted to give a final recommendation until she had discussed it with Frits. She knew that James' case would be watched closely by many managers within the division. The Financial District Branch James McGaran was manager of the most important of the 31 branches in the Los Angeles area. Located in Los Angeles’s financial district, James’s branch had a staff of 15 people, revenues of $6 million, and $4.3 million in profit margin. The customer...
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...PGXPM – 11 : TERM- 3 : GROUP - 6 August 2015 Case Study on Citibank Performance Evaluation Case Study Arun Kumar N, Nagi Reddy, Gandhi Gurunathan, Shyam Soundappan, Vinoth R Great Lakes Institute of Management PGXPM – 11 : TERM- 3 : GROUP - 6 August 2015 Case Study on Citibank Performance Evaluation Case Study Arun Kumar N, Nagi Reddy, Gandhi Gurunathan, Shyam Soundappan, Vinoth R Great Lakes Institute of Management Context: Citibank introduced the Balanced Scored Card performance evaluation process for the first time to conduct an effective performance evaluation of their employees from qualitative and quantitative measures. The balanced scored card evaluation enables to set clear targets or goals and provide an insight on the evaluation process more effectively, thereby performance evaluation aligned with company’s strategic goals and measurable objectives. As part of the Balanced Scored Card evaluation process, the management measures one’s accomplishments against the following operational, functional and non-functional aspects, 1. Financial Accomplishments 2. Strategy Implementation for maximizing revenue 3. Customer Satisfaction Index 4. Control Measures based on Audits process 5. People management and Standards Based on the above mentioned...
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