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CITIBANK : Performance Evaluation
CITIBANK : Performance Evaluation
Group 9
FT151018 ANUJ KHANDELWAL
FT151066ARJUN NAMBIAR
FT151052 ROHAN M SHAH
FT154011 SIDDHANT PARNAIK
FT151082 VAIBHAV JOLLY
Case Facts- Character Introduction
Frits Seegers : President of Citibank California
Lisa Johnson : Area Manager
James McGaran : Branch Manager of Los Angeles Area Branch.
Lisa Johnson
Los Angeles area Manager.
Joined the company in 1978 in Chicago and moved to California in early 1988.
Her area was the biggest in the division and included two regions that had previously been managed separately.
Supported many managers and was well versed with the events in each branch.
Working in the banking industry since 1977.
Joined Citibank in 1985 as assistant branch manager.
Promoted as Branch Manager of Los Angeles area branch.
The branch in which he was working had very diverse customer base.
He had delivered impressive financial results for four years in a row from 1992.
James McGaran
Purpose of Balanced Scorecard
Set clear goals for appraise and provide specific measures for the person doing appraisal
Includes both quantitative and qualitative parameters
Provide organization with tools to do strategic management and operational control
Helps executives to focus on several important measures that drive the strategy
Introduction of Performance Scorecard
Financial Measures : Focused mainly on total revenue and profit margin against targets.
Strategy Implementation : Measures tracked revenue for different types of target customer segments relevant to the strategy of the branch.
Customer Satisfaction : Derived from questions that focused on branch service as well as other Citibank services .
Control Measures : Reported by evaluation by internal auditors on the branchs internal control processes.
People and Standards : Non quantifiable ratings determined subjectively by the branch managers boss.
implemented performance scorecard specifying goals and measures managers performance in 6 areas:
Performance Evaluation Method
3 types of ratings for each performance indicator.
Below-par, Par and Above-par.
Evaluation was determined jointly by a team led by Frits Seegers.
Bonus linked to final performance score card rating.
A manager could not get an above par rating without minimum par ratings in all the component.
Problems with the current appraisal process
Highly sophisticated client base.
Including the component of services evaluation like 24 hours phone banking and ATM services.
While measuring the customer satisfaction the survey was done with a small sample size.
James Performance
Practical Constraints faced by James McGaran
Diverse set of customers.
The branch that was handled by James was the largest and toughest branch in the division.
Had a demanding clientele and challenging competition.
Final Evaluation Rating for James
Overall Evaluation: Above Par
This is the first year the balanced scorecard was implemented. It will take sometime to insure that all the areas are measured appropriately
He has done exceptionally well across the scorecard and he is consciously making efforts to over come the issues in customer evaluation rating
Management should also have a look on James peer group ratings to ensure customer satisfaction is fair indicator which can be linked to overall performance
As this is the highest revenue generating branch any decision which may have an impact on revenues generated from this branch should be with utmost surety
James should be aware that his concerns with the customer survey and consistently exceptional performance were the main reason for managements decision
He should also be told that in the future he will not get an above par rating if he fails to score par on all the measures
Also the importance of non quantifiable measures should be communicated to James and across the organization
How would you communicate the decision to James?
Expected Impacts on James
Unsatisfied with Appraisal:
Complaint that top management assess behavior without knowing practical constraints
Decreased dedication towards the areas in which he is a top performer
Satisfied with Appraisal:
Perception of being valued and being part of organizational team
Highly motivated for the improvement towards points mentioned in feedback
Thank You!!!!!
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