Case Study Analysis - Citibank - Performance Evaluation - Syndicate 5

Citibank: Performance Evaluation
Syndicate 5 BLEMBA 64B

Yocky Tegar 29120557
Fungki Setyo Y 29120469
Dewi Wahyu K 29120592
Introduction
● James McGaran was the manager of the most important LA Branch
● Been in the banking industry since 1977
● Intense competitions from BOA and Wellas Fargo
● Varied customer base: from sophisticated retail bank needs to novices.
● Has consistently been a high performer and grew rapidly within the
organization
● Emphasis on financial results
● New performance indicators showed low customer satisfaction ratings
What is Performance Evaluation?
● Performance evaluation is an essential practice in any organization.

● Performance evaluation helps an organization to know where it is, why,
and what it needs to do to reach where it wanted based on its
objectives.
● The approach to be followed in performance feedback session with
James is essential in enhancing positive relationships besides ensuring
that James is contended with the evaluation.
Objective of Evaluation Background
● Set clear goals for appraise and provide specific measures for the
person doing appraisal
● Include 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
Metrics of Performance Scorecard
Actionable and tangible measurements which support achieving objectives.
This is what makes it real.
Targets of Performance Scorecard

Performance level expectations set against the strategic plan. For each
metric, set a goal or plan so progress against the objective can be evaluated.
Components of a scorecard
Financial Measures : Focus on total revenue and profits
Strategy Implementation : Tracks revenue from a particular segment relevant to the Bank’s strategy.
Customer Satisfaction : Conducted through surveys. Emphasis on long term association
Control Measures : Based on banks internal control processes. If rating < 4, bank is said to be at risk.
People and Standards : Focused on the efforts of the manager to develop and communicate with peers/
employees.
Rating Scale : “Par”, “Below Par” and “Above Par”
Finally, a global rating and overall rating for the manager was awarded.
Advantages of the new performance scorecard
a.Focus on relationship banking.
b.Service was generally face to face or remotely depending on the wishes of the customers.
c.Service expectations rose with a rise in net assets of customer.
d.Broad range of financial products to be chosen from.
e.Critical for measuring long term strategies of the firm
Disadvantages of the new performance scorecard

a.Focus on branch service as well as other services like 24 hours phone banking and ATM services.
b.Customer survey was conducted only among 25 customers. This may lead to biased results.
c.A proper time lag was not given for the implementation of the new system.
d.An exceptionally good performance in one area (e.g. audit) was not enough to satisfy a marginally bad
performance.
Financial District Branch Performance
Overall Performance:
-Rated above par for 1st and 4th Quarter and at par in 2nd and 3rd Quarter
Financial Measures:
-Financial Performance 20% above par
-Highest Revenue among all branches
-Greatest margin contribution , 48% growth
-Rated exceptional by Lisa
Strategy Implementation:
-Household acquisition increased by 21%
-Balances grew in all segments
- Above par rated by Lisa in three quarters
Recommendations
1. Performance scorecard
- The company would add more perspectives to improve
its scorecard more fair and comprehensive
- Improvement of evaluation process is firstly needed.
- Survey firm should separate the branch service and out of
branch service, such as ATM service and give score
quality provided by a branch
Recommendations
2. The importance of customer satisfaction
Standard
People
Customer
Control
Satisfaction
Strategy
Implementation
Financial

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Citibank: Performance Evaluation

Syndicate 5 BLEMBA 64B

● Performance evaluation is an essential practice in any organization.

Targets of Performance Scorecard

Financial Measures : Focus on total revenue and profits

Customer Satisfaction : Conducted through surveys. Emphasis on long term association

Rating Scale : “Par”, “Below Par” and “Above Par”

Disadvantages of the new performance scorecard

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