CITY BANK

PERFORMANCE
EVALUATION
GROUP 11

New Performance Scorecard

Objective To highlight the importance of a diverse set of measures in achieving the strategic
goals of a division
Measures :
Financial Total revenue / Profit Margins
Strategy Implementation Target customer segment & corresponding strategy
Customer Satisfaction Branch service + CitiBank service. Leading indicator of future
financial performance
Control Measures Internal control processes. Below 4 rating considered as Business at
risk
People and Standards Non-quantifiable. Proactive efforts and involvement of manager
Categories :
Below par - No bonus
Par Upto 15% of basic salary
Above par Upto 30% of basic salary

PERFORMANCE EVALUATION OF JAMES

McGARAN

James joined CITIBANK as ABM in 1985 and by 1992 was managing Financial
District office

James was the manager of most important branch out of 31 in Los Angeles

Staf 15 / Revenues - $6 million / Profit Margin - $4.3 million

Financials 20% above target / Greatest margin contribution

Strategy implementation was in par to above par range

Above par rating in control scorecard

Branch received two 5 audit ratings in 1996

Branch rated #1 in the market place

Excellent people manager

Control, People & Standards above par in every quarter

Customer satisfaction below par to par

CHALLENGES FOR JAMES

McGARAN

Largest and toughest branch in the division

Customer base was very diverse, demanding and
challenging
Sophisticated customers demanding high service quality
Customers expected knowledgeable employees who
could satisfy their financial needs
Customer rated not only branch but also services which
were out of branch managers control
Bank of America & Wells Fargo had offices in the
proximity of James branch

RECOMMENDATIONS

Assign different weightage to different measures

Give the branch managers the margin of 2 years to adhere to new
performance scale
Separate the ratings of services that are under the purview of Branch
Manager and services that are not
Categorise the branches as per the scale of business & clientele and
modify the scale as per customer segment they serve
Thus, James should be given above par rating for the year and 2
years margin to show improvement in customer satisfaction

THANK YOU