CITI BANK
Case: Citibank
Zoey Lin 102073466
1.
Why has Citibank introduced a performance scorecard?
The purpose of the performance scorecard is to highlight the importance of a diverse set
of measures in achieving the strategic goals of the division.
Citibank's strategy in California was to build a profitable franchise by providing relationship banking combined with a high level of service to its customers. Specifically, from Frits Seeger’s point of view, the high service quality strategy and other dimensions were critical to the long-term success of the franchises. The customer satisfaction and strategy implementation indicators, therefore, were introduced into the new performance scorecard.
Consequently, the new scorecard has consisted of six diverse perspectives. And the objective for implementing the scorecard performance measurement was to figure out what need to be done to meet the measurement perspectives from a balanced view. Then the targets also have been established for each perspective, for example the customer satisfaction has been set for achieving a rating of at least 80 in 1996. The balanced scorecard forces
employees to adopt a broader view of the business and concentrate not only on financial measures, but on measures that are truly important to the success of the company.
2.
Assume that you are Lisa Johnson. Complete Exhibit 1 to evaluate Jame’s performance.
Below Par
Par
Above Par
Financial
✔
Strategy Implementation
✔
Customer Satisfaction
✔
Control
✔
People
✔
Standards
✔
Overall Evaluation
✔
If we give James “par” rating in overall evaluation, it could cause him to consider leaving the company, not only because of the reduced bonus, but also because of the feeling of being treated unfairly or not being valued by the company. Losing James would be a
significant loss for the bank, and it would be hard to find as qualified and dedicated manager as James for this
Zoey Lin 102073466
1.
Why has Citibank introduced a performance scorecard?
The purpose of the performance scorecard is to highlight the importance of a diverse set
of measures in achieving the strategic goals of the division.
Citibank's strategy in California was to build a profitable franchise by providing relationship banking combined with a high level of service to its customers. Specifically, from Frits Seeger’s point of view, the high service quality strategy and other dimensions were critical to the long-term success of the franchises. The customer satisfaction and strategy implementation indicators, therefore, were introduced into the new performance scorecard.
Consequently, the new scorecard has consisted of six diverse perspectives. And the objective for implementing the scorecard performance measurement was to figure out what need to be done to meet the measurement perspectives from a balanced view. Then the targets also have been established for each perspective, for example the customer satisfaction has been set for achieving a rating of at least 80 in 1996. The balanced scorecard forces
employees to adopt a broader view of the business and concentrate not only on financial measures, but on measures that are truly important to the success of the company.
2.
Assume that you are Lisa Johnson. Complete Exhibit 1 to evaluate Jame’s performance.
Below Par
Par
Above Par
Financial
✔
Strategy Implementation
✔
Customer Satisfaction
✔
Control
✔
People
✔
Standards
✔
Overall Evaluation
✔
If we give James “par” rating in overall evaluation, it could cause him to consider leaving the company, not only because of the reduced bonus, but also because of the feeling of being treated unfairly or not being valued by the company. Losing James would be a
significant loss for the bank, and it would be hard to find as qualified and dedicated manager as James for this