CITIBANK : PERFORMANCE EVALUATION

By Group 2 Ivan, Arvan & Ali

TALENT.MANAGEMENT
Case Introduction
1. James McGaran was the manager of the most important LA branch
2. Been in the banking industry since 1977. With Citi since 1985.
3. Intense competition from BOA and Wells Fargo
4. Varied customer base: from sophisticated retail bank needs to novices.
5. Revenues of $6m; Profits of $4.3m
6. Has consistently been a high performer and grew rapidly within the organization.
7. Emphasis on financial results
8. New performance indicators showed low customer satisfaction ratings.

Case Fact’s : Character

1. Frits Seeger : President of Citibank California
2. Lisa Johnson : Los Angeles Area Manager
3. James McGaran : Branch Manager of Los Angeles Area Branch

TALENT.MANAGEMENT
 Citibank’s Performance Scorecard

FINANCIAL CONTROL

CUSTOMER SATISFACTION

STRATEGY IMPLEMENTATION
STANDARD
PEOPLE

Objectives Metrics Target

What the company need to Actionable and tangible Performance level
do to accomplish to measurement which expectation set against
accomplish its strategy support achieving the strategic plan
measurable objectives objectives

TALENT.MANAGEMENT
 Advantage & Disadvantage
of New Performance Scorecard
1. Have broader view of the business

2. Focus to dimension that were critical to the

long term success of the franchise

3. Reflect the importance of non financial

measures as leading indicators of strategy

implementation

4. New measure reflecting important competitive
dimension in the bank strategy
TALENT.MANAGEMENT
1. Rating related to people and standard lacked an
appropriate objective indicator : performance was
determined subjectively by supervisor
2. Global rating is given for each of the six
component of the scorecard and an overall rating
for the branch manager
3. Customer satisfaction was measured thru
telephone interviews with only 25 branch
customers, this may lead to biased results
4. The initial version was pre-tested in 1995 but
never been reviewed or evaluated before it is
implemented
James Appraisal’s Dilemma
Positive
1. James performed above par on 5/6 parameters of
the scorecard
2. His financials performance were outstanding , 20%
above target
3. There were improvement on Customer satisfaction
(63 to 72)
4. James was a reference point for a lot of other
branch managers

Negative
1. Customer satisfaction was below par
2. if James is given “above par”, people could think
that the division was not serious about its non-
financial measures

TALENT.MANAGEMENT
Challenges Faced by James
Customer satisfaction
measure was
James’s branch was the
sometimes hard to
largest and toughest
reconcile with
branch in the division
demonstrated financial
performance
Customer rated not only
their branch , but also
Had demanding other Citibank services
clientele and such as ATM that were
out of control of branch
challenging manager
competition The centralized service
were not providing
adequate support to the
sophisticated customer of
James's branch
TALENT.MANAGEMENT
Recommendation
Discuss the
performance criteria
with James
Recognize his
exceptional
performance
Specify the weight for
different criteria
Balance the over
achievement in other
TALENT.MANAGEMENT
scales with other areas
 THANK FOR
Thank You
COMING

TALENT.MANAGEMENT