Citibank Case

Company Strategy and Structure

 Citibank was a niche player in California market and its strategy was
to build a profitable franchise by relationship banking combined
with high level of service to its customer.
 It Provided a broad array of service such as ATM Machines,24 hour
banking and home banking.
 Financial measures was the only tool to measure the performance
evaluation before.
 The Management decided to focus on non-financial measures also
for long term success.
Introduction of Performance Card

 To measure the financial and non-financial category ,The

performance card was introduced.
 It consists of Six category:
1. Financial measures
2. strategy implementation
3. customer satisfaction
4. control measures
5. People
6. standards.
 Each component was scored with “below par”,”par”,”Above par”
rating
 Customer Satisfaction an
important measure for citibank
 Customer satisfaction is an important measure for Citibank long
term success.
 Customer satisfaction would automatically increase the financial
measure.
 Customer satisfaction and control goals were common to all
branches and the goal was to achieve a rating of min 80.
 Bonus Percentage: “Below par”-No bonus,”Par”-15% and above
“Par”-30%
 Each quarterly the area managers received the information and the
scores were given accordingly to the branch managers.
Evaluation of James Performance

 Lisa is the branch manager and Frits is the president of Citibank California.They
are in the bonus discussion of the branch manager.
 James is the branch manager and has attained this position for his impressive
financial results for four years in a row.
 Though he achieved “above par” rating in financial results ,he couldn’t achieve
in customer satisfaction
 James branch was the largest and the toughest branch to handle and the ATM
Services also contributed to below par rating which is not handled by branch
manager.
 James tried to improve the customer satisfaction by placing a dedicated
person on welcoming and helping with the customer issue.
 On the fourth quarter,the Customer service rating improved from “below Par” to
“Par” rating.
 Considering the efforts of James,Lisa can encourage by giving a “above par”
Rating on james for his growth.