NAME: RHISLEE V.

PABRIGA TIME: 5:00 - 6:30 pm

VINCE C. PARCON SUBJECT: MAS2
RHOEBE JEAN PAYOT

CITIBANK PERFORMANCE EVALUATION: CUSTOMER SATISFACTION

I. Problem

Citibank have developed a performance scorecard that is not effective and

efficient enough to measure the quality of non-financial information. One of their

measures used is the customer satisfaction. As we all know, James got a "par" rating

in the first and fourth quarter while "below par" at second and third quarter. Why

does it happen? For us, their measurement through having telephone interviews is

not effective enough. Telephone interviews is their only evaluation process for

customer satisfaction and it creates bias and efficiency problems. It seems to be

unreliable because it represented only a small portion of James' customer.

Another problem is the unfair judgment to the results of the evaluation system.

It impairs independence because of the personal relationship between the branch

managers and their superiors. Clearly, it does not present a real performance

evaluation.

Lastly, the scorecard still needs improvement. Due to intensive competition,

they must consider adding another measurement for growth at market shares of

branches.

II. Alternative solutions

1. The evaluation process of customer satisfaction should be extended. This

requires the Citibank to add further techniques or strategies other than having

telephone interviews to avoid biased and unreliable results. Evaluation

 questionnaires is one technique that they may employ. Questions under these

questionnaires should be divided into different categories so that the company

will know which category they needed to put additional effort in improving.

They could make or have suggestion boxes to gather concerns of their

customers.

Advantages

 Customer satisfaction can be evaluated in a much wider scope.

 They could evaluate those areas where they need to put full effort in

improving.

Disadvantages

 Additional cost is needed.

 It takes adequate and sufficient time before they could implement

additional strategies.

2. For the improvement of their operations specially to non-financial areas, they

could benchmark to other blanks that have already established a good

operation on their performance evaluation used.

Advantages

 They can improve their performance evaluation through benchmarking.

It opens to more helpful strategies and ideas for the effectiveness and

efficiency of their performance.

Disadvantages

 Due to intensive competition, they could hardly do benchmarking.

3. Citibank centralized services such as ATM's that is out of control of branch

managers should be given another measure separate from the measure given

to services distinct to the branches.

Advantages

 The services district to the branches can be evaluated unbiased and

reliably.

 The company could know if centralized services can affect the

customer satisfaction measure of the branches.

Disadvantages

 They need to employ additional personnel's in evaluating separately

the centralized and distinct-to-the-branches services.

 Additional cost is needed.

4. Achievable customer satisfaction and control goals should be set differently to

all its branches. The larger the branch, the lesser the percentage. The smaller

the branch, the higher the percentage of goals needed to be achieve.

Advantages

 Fair evaluation of Branches’ performance.

Disadvantages

 This may create problems between the branch managers among

branch managers because of competition.

III. Recommendation

The company must improve its scorecard more fair and comprehensive. They

must continue to innovate to have a competitive power against its rivals. Instead of

employing just one method to generate customer satisfaction, they could add more

methods.

Lisa and Frits also must review their performance evaluation to James. In our

own perspective they must give James a "par" rating. James is competitive and

excellent manager but still there's a lot of improvement needed. They must explain to

James their reason of giving him a "par" rating.

There must be communicating to prevent losing James as a competent and

excellent manager. They should discuss the improvements needed and strategies

needed to be done. Involve other stockholders on their improvements. More efforts

on the community and public activities. Do not only focus on financial matters but

also on non-financial matters as well. Conduct trainings and seminars to the

employees to assure quality on their work. Have a proper distribution of incentives

based on real performance evaluation.