Section B PGP/17/064 PGP/17/075 PGP/17/088 PGP/17/100 PGP/17/125 PGP/17/122

Group No. 2 AKASH BASAK BIRANCHI PRASAD SAHOO KHARTE AMOL BHAGWAN PARVATHY RAJAN YOGESH PARATE UTKARSH TYAGI

CITIBANK : Performance Evaluation

Los Angeles Branch

Manager: James McGaran Staff: 15 people Very diverse customer base Competitors:

Bank of America Wells fargo Individual customers and business customers

Customers:

Demand of high quality service

Intense competition
Revenues: 6 Million Profit Margin: 4.3 Million

Branch Manager : James McGaran

Joined Citi in 1985 Experience : 20 years in Banking Industry Performance : Above Par every year(exceeding expectations) Impressive financial results

Experienced Below par rating in customer satisfaction component

Balance Scorecard
Features :

Needed changes built around the performance measures Lacked measures reflecting the importance of nonfinancial measures as leading indicators of strategy implementation Lacked measures related to customer satisfaction, which is vital in banking industry Provide organization with tools to do strategic management and operational control Helps executives to focus on several important measures that drive the strategy

Balance Scorecard : Reviewed

Included non financial measures for evaluation of performance Built on 6 measures:

Quantitative:

Strategy Implementation Financial Control Customer satisfaction People Standards

Qualitative

McGaran scored Below Par in Customer Satisfaction Expected Global rating : Par ; even though he deserves higher

New Performance Scorecard

Citibanks strategy in California: Building a profitable franchise by providing relationship banking combined with high level of service to its customers Each component had three ratings: Below Par, Par & Above Par
standards

Financial measures

Strategy implemen tation

Quantitative measures has predefined performance thresholds

Rating for Qualitative measures were determined subjectively by branch managers superior Overall rating given by managers boss Incentives: Bonus linked to rating
People

Scorecard
Customer satisfactio n

Control measures

Problems with the current appraisal process

Highly sophisticated clients. Including the component of services evaluation like 24 hours phone banking and ATM services. While measuring the customer satisfaction the survey was done with a small sample size.

James Performance

Financial measures: Above Par Strategy implementation: Above Par

Control measures: Par

People: Above Par Standards: Above Par Customer Satisfaction: Below Par

Practical Constraints faced by James McGaran

Diverse set of customers. The branch that was handled by James was the largest and toughest branch in the division. Had a demanding clientele and challenging competition.

Final Evaluation Rating for James

The first year the balanced scorecard was implemented. He has done exceptionally well across the scorecard and was consciously working to overcome the issues in customer evaluation rating James peer group ratings should also be looked in to by management ensure customer satisfaction is fair indicator which can be linked to overall performance As this is the highest revenue generating branch any decision which might impact the revenues of the branch should be taken carefully

Suggestions

Give above par rating to James Overall and par in customer satisfaction Consult with James in confidence about the facts and issues present in the branch otherwise other branch managers might feel discrimination by the management Implement the process gradually Assign Weights to the performance measures The above par rating criteria should be changed After evaluation, the gaps in the performance should be addressed through appropriate training, learning modules Prior information about the new system to be shared with branch managers

Thank You!