Citi Bank Case

Assignment – Analysis of City Bank Performance scorecard
Q.1 Why has City bank introduced a performance evaluation scorecard?
The primary purpose of the balanced scorecard is to set goals and allow managers to complete well-
rounded performance reviews using bothquantitative and qualitative measures. While financial
measures areimportant in analyzing performance of the bank, they do not provide anyinsight into
non-quantifiable measures that can be equally important inperformance assessment. In addition,
the balanced scorecard forcesemployees to adopt a broader view of the business and concentrate
not onlyon financial measures, but on measures that are truly important to thesuccess of the
company. In the service industry, customer satisfaction is aparticularly important measure in
determining how the company is doing. Ahigh level of customer service is a significant component of
Citibank’sstrategy in California. It will act as leading indicator of future financial performance of the
bank. From the past experiences, it was determined that customer satisfaction ratings do not follow
the same patternas financial performance, and it is necessary to measure customersatisfaction
separately
Q.2 Assume that You are Lisa Johnson. Complete Exhibit 1 to evaluate James’ Performance.
1 Financial Revenue Expense Margin Strategy Implementation Total Households New to bank
households Lost to bank households Cross-sell, splits, mergers households Retail asset balances
Market share Customer Satisfaction Control Audit Legal / Regulatory People Performance
Management Teamwork Training / Development Self Other Employee Satisfaction Standards
Leadership Business Ethics / Integrity Customer Interaction / Focus Community Involvement
Contribution to Overall Business Overall Evaluation Legend: 1 - Below Par 2 - Par 3 - Above Par 3
Financial measures: Above Par
The financial performance of James’ branch has consistently exceeded management expectations for
the last 4 years. This year was no exception. James exceeded financial goals by 20%, thus ranking the
branch number 1 in the marketplace.
Strategy implementation: Above Par
his is the rating James received in quarters 2, 3 and 4. The branch met or exceeded its growth goals
in the business, professional and retail segments. (The scorecard does not indicate the goals for this
measure, which makes analysis less dependable as we have to rely on comments only.) Control
measures: Par
This measure was assessed only in 3 quarters, and in all 3 quarters the branch scored above par.
Even though James works hard on making sure his branch operates in compliance, there is still some
room for improvement in this area, and James can implement several measures to lower the
operatingand fraud losses sustained by his branch.
People: Above Par

James is an excellent people manager. His performance is consistent in this area and always exceeds
expectations. Standards: Above Par
James is a well respected leader that has high standards for himself and people he employs. He
continually works on improving himself and his employees. He is involved in the community and
encourages the same from his employees.
Customer Satisfaction: Below Par

This is a measure that can potentially cause the most controversy as James is concerned with the
survey that is used to asses customer satisfaction. In two quarters, James scored below par on
customer satisfaction. However, he identified the improvement opportunities and substantially
improved service scores by the end of the year. Overall Evaluation: Above Par
We understand that according to current policy James can not get an above par overall rating due to
a below par score on the customer satisfaction measure. However, we will disregard the policy in
this case due to several reasons: This is the first year the balanced scorecard was implemented. It
will take some time to insure that all the areas are measured appropriately.
James’ concerns about adequacy of the survey used to measure customer satisfaction might be
valid. Management should review the survey and get some input from the branch managers on what
indicators should be used to measure customer satisfaction. The current review process raises some
concerns as well. Presently, a branch manager’s supervisor subjectively assesses performance in the
non-quantifiable areas. The process can be improved by allowing the manager to self-asses his own
performance and discuss it with his superior. This will allow the process to be less subjective. The
manager will get an opportunity to defend his performance if he does not agree with the assessment
of his superior.If we give James an overall rating of par, disregarding his hard work, it will lower the
morale of one of our most successful managers and will possibly result in lower performance in the
future, jeopardizing the performance of the #1 branch in the marketplace.Management has a valid
concern that if James receives an above par score on his evaluation, employees might think that
management disregards non-financial measures during the evaluation. However, it is easier to
reiterate the importance of non-financial measures than to negate the effects of low morale in
James’ branch. Management should communicate the importance of qualitative measures in the
balanced scorecard and the fact that it will be taken into full consideration during the performance
review after management makes sure the survey is well suited to measure a customer satisfaction.
Q.3 As a HR manager, what recommendation would you give for the implementation of Performance
evaluation Scorecard. .
As an hr manager following will be the recommendations

1. Setting of evaluation parameters right
2. And communicating these standards to all the employees
3.The survey can be revised in order to better meet the performance evaluation need
4. The manager should be given an opportunity to asses his own performance on non-quantifiable
measures in order to make the performance review less subjective
5.the discussion of the manager’s performance with his superior will ensure that the manager is
satisfied with his performance evaluation and will result in increased employee morale.
6. The adequacy and validity must be ensured
7. And key performance indicators should be set and measured correctly .

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Assignment – Analysis of City Bank Performance scorecard

Q.1 Why has City bank introduced a performance evaluation scorecard?

Strategy implementation: Above Par

People: Above Par

Customer Satisfaction: Below Par

As an hr manager following will be the recommendations

2. And communicating these standards to all the employees

6. The adequacy and validity must be ensured

7. And key performance indicators should be set and measured correctly .

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