Citibank
Citibank Case Analysis
Maria Olvera
Discuss the advantages and disadvantages of the performance evaluation system that Citibank is using.
The advantages are that it focuses on relationships with the customer, which are crucial to the overall growth of the branch.
The disadvantages are that the customer survey was only conducted with 25 customers, which may have had a bad day or bad experience. The new performance scorecard was not given enough time to transition from the old scorecard. A few months is never enough to fully implement a system and set realistic expectations. Another extreme disadvantage is that each measure is weighed equally, which should never be the case.
Why has Citibank introduced a performance scorecard?
Citibank introduced a performance scorecard because they felt that not only numbers were important to their company, but there were six diverse set of measures that needed to met. The performance scorecard was important to allow managers to set goals and to be well rounded at each of their branches. They felt that in order to be an exceptional branch, they must have strengths in all six specified areas: Financial measures , Strategy implementation, Customer satisfaction, Control measures, and People and Standards. A branch may meet and exceed the financial measures but lack in customer satisfaction, which is very critical to the long term success of a franchise.
Assume that you are Lisa Johnson, complete Exhibit 1 to evaluate James' performance.
If I were Lisa Johnson, I would rate James an overall above par. Although he did score below par on customer satisfaction, many factors are involved. Since only 25 customers were surveyed, there is no way of knowing whether the other 1000 plus customers were extremely satisfied with their service. There should be weights for each of the six measurements.
Maria Olvera
Discuss the advantages and disadvantages of the performance evaluation system that Citibank is using.
The advantages are that it focuses on relationships with the customer, which are crucial to the overall growth of the branch.
The disadvantages are that the customer survey was only conducted with 25 customers, which may have had a bad day or bad experience. The new performance scorecard was not given enough time to transition from the old scorecard. A few months is never enough to fully implement a system and set realistic expectations. Another extreme disadvantage is that each measure is weighed equally, which should never be the case.
Why has Citibank introduced a performance scorecard?
Citibank introduced a performance scorecard because they felt that not only numbers were important to their company, but there were six diverse set of measures that needed to met. The performance scorecard was important to allow managers to set goals and to be well rounded at each of their branches. They felt that in order to be an exceptional branch, they must have strengths in all six specified areas: Financial measures , Strategy implementation, Customer satisfaction, Control measures, and People and Standards. A branch may meet and exceed the financial measures but lack in customer satisfaction, which is very critical to the long term success of a franchise.
Assume that you are Lisa Johnson, complete Exhibit 1 to evaluate James' performance.
If I were Lisa Johnson, I would rate James an overall above par. Although he did score below par on customer satisfaction, many factors are involved. Since only 25 customers were surveyed, there is no way of knowing whether the other 1000 plus customers were extremely satisfied with their service. There should be weights for each of the six measurements.