Get instant access to this case solution for only $15

Citibank Performance Evaluation Case Solution

Solution Id Length Case Author Case Publisher
2509 2009 Words (8 Pages) Robert Simons, Antonio Davila Harvard Business School : 198048
This solution includes: A Word File A Word File

The case explores the introduction of a performance scorecard, which financial as well as non-financial indicators, by Citibank to predict its future standing against its Californian competitors, Wells Fargo and Bank of America. Apart from the traditional measures such as finance, strategy, control, and standards, the scorecard also contained a “Customer Satisfaction” measure, which, according to Frits Seeger, the president, would play the most significant role in predicting the future performance of the bank. In his year-end evaluation, the branch manager, “James McGaran”, of an important one, was to be given a “below par” rating in the customer satisfaction measure as the quantitative guidelines despite performing brilliantly in all other areas suggested. It was now up to Lisa Johnson, Los Angeles area manager, to either give him a “below par”, which would render an overall “above par” impossible or to provide him with a “above par” as a token of appreciation for his efforts to improve.

Following questions are answered in this case study solution

  1. Why has Citibank introduced a Performance Scorecard?

  2. Assume you are Lisa Johnson, complete Exhibit 1 to evaluate James performance. Provide an explanation for each one of the seven performance areas evaluated. 

  3. How would you communicate the decision to James?

  4. What do you think James will do after receiving the communication? 

  5. Would you roll-out this performance scorecard to other regions at Citibank? 

Case Analysis for Citibank Performance Evaluation

1. Why has Citibank introduced a Performance Scorecard?

Citibank has just eighty offices compared to the four hundred of its competitor Bank of America. To predict how the bank will perform financially and non-financially and where it will relatively stand in the market, it introduced a performance evaluation scorecard in all the areas and for all the managers. Previously, the bank was just reliant on financial data and quantitative feedback to forecast its future performance and plan accordingly. It is not too difficult to realize that, to an organization, it is equally if not more important to perform well non-financially aside from making good money. Suppose it is making money but lacks in areas such as customer interaction. In that case, it is only a matter of time before the deficiency manifests itself in the company’s financial performance, resulting in gradual dilapidation of the organization’s standing and reputation. The introduction of such a scorecard by Citibank, which included non-financial measures, would provide them with a better perspective of how the company is performing in the different domains. Moreover, the managers would have more clarity in setting their goals after seeing which of them are more practicable and effective. Thus, they would then be able to better utilize the qualitative and quantitative feedback to make up for the deficiencies and improve the strengths of their departments. The president of Citibank California, Frits Seegers, after this realization, has rightly stated that the non-financial measures in the scorecard, especially that of “customer satisfaction”, will be crucial to the understanding of the current performance and prediction of the future of the company. If the customers are unhappy with the bank’s services, it will lose their trust, leading them to gradually start pulling out their money and looking for other banks. However, if the company spots this well in time, it can proactively minimize its losses by putting in the required efforts to retain its customers’ trust. 

2. Assume you are Lisa Johnson, complete Exhibit 1 to evaluate James’s performance. Provide an explanation for each one of the seven performance areas evaluated.

EXHIBIT 1: JAMES MCGARAN’S YEAR-END PERFORMANCE FOR 1996

 

Q1

Q2

Q3

Q4

Average

Final

FINANCIAL

“3”

“3”

“3”

“3”

“3.00”

3

 Revenue

“3”

 

“3”

“3”

“3.00”

 

 Expense

“2”

 

“3”

“2”

“2.33”

 

 Margin

“3”

 

“3”

“3”

“3.00”

 

STRATEGY IMPLEMENTATION

“2”

“3”

“3”

“3”

“2.75”

3

 Total Households

“2”

 

“3”

“2”

“2.33”

 

 New to bank households

 

 

“2”

“2”

2.00

 

 Loss to bank households

 

 

“2”

“2”

2.00

 

 Cross-sell, splits, mergers households

 

 

“2”

“3”

“2.50”

 

 Retail asset balances

 

 

“2”

“3”

“2.50”

 

 Market share

 

 

“3”

“3”

“3.00”

 

CUSTOMER SATISFACTION

“2”

“1”

“1”

“2”

“1.50”

1

CONTROL

“3”

“3”

 

“3”

“3.00”

2

 Audit

“3”

 

 

“3”

“3.00”

 

 Legal / Regulatory

“3”

 

 

“3”

“3.00”

 

PEOPLE

“3”

“3”

“3”

“3”

“3.00”

3

 Performance Management

“3”

 

“3”

“3”

“3.00”

 

 Teamwork

“3”

 

“3”

“3”

“3.00”

 

 Training / Development

“3”

 

“3”

“3”

“3.00”

 

    Self

“3”

 

“3”

“3”

“3.00”

 

    Other

“3”

 

“3”

“3”

“3.00”

 

 Employee Satisfaction

“3”

 

“3”

“3”

“3.00”

 

STANDARDS

“3”

“3”

“3”

“3”

“3.00”

3

 Leadership

“3”

 

“3”

“3”

“3.00”

 

 Business Ethics / Integrity

“3”

 

“3”

“3”

“3.00”

 

 Customer Interaction / Focus

“3”

 

2

“3”

“2.67”

 

 Community Involvement

“3”

 

“3”

“3”

“3.00”

 

 Contribution to Overall Business

“3”

 

“3”

“3”

“3.00”

 

OVERALL EVALUATION

“3”

“2”

“2”

“3”

“2.50”

3

Financial Measures: Above Par 

Get instant access to this case solution for only $15

Get Instant Access to This Case Solution for Only $15

Standard Price

$25

Save $10 on your purchase

-$10

Amount to Pay

$15

Different Requirements? Order a Custom Solution

Calculate the Price

Approximately ~ 1 page(s)

Total Price

$0

Get More Out of This

Our essay writing services are the best in the world. If you are in search of a professional essay writer, place your order on our website.

Essay Writing Service
whatsapp chat icon

Hi there !

We are here to help. Chat with us on WhatsApp for any queries.

close icon