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Citibank : Performance
Evaluation
Akash | Radhika | Mathew
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OVERVIEW

31 branches in LA, California

Diverse customer base

Intense competition – Bank of America and

Wells Fargo
Promoted to Promoted to
James Joined Citibank in
1985 as Asst.
manager of a manager of the
small branch in Financial District
McGaran Manager
1986 office in 1992
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OVERVIEW (Contd.)

 James’ branch had a staff of 15 people with

revenues of $6 million and a profit margin of
$4.3 million
 However, customer satisfaction ratings were
not as impressive as the financial results
 Customers demanded high quality services
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NEW PERFORMANCE SCORECARD

The new scorecard also included non financial measures

More emphasis on customer satisfaction

Critical to the long-term success

Started in the first quarter of 1996

Each component of the scorecard was rated as either “below par”,

“at par” or “above par”
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PERFORMANCE SCORECARD
COMPONENTS

Financial measures

Strategy implementation

Customer Satisfaction

Control Measures

People and Standards

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PERFORMANCE PLANNING

 For customer satisfaction, the goal was to achieve a rating of at least 80 to reach
above par level
 Area managers and branch managers jointly determined the financial targets and
strategy implementation goals
 Without a par rating in all components, a branch manager cannot receive an
overall “above par” rating
 Incentives
 A below par rating did not carry any bonus

 At par rating entailed 15% bonus to the branch manager

 Above par rating entailed a bonus of 30%

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PERFORMANCE OF THE FINANCIAL
DISTRICT BRANCH
1996 performance evaluation review, for James McGaran
 Financials were outstanding- 20% above target,

 James’ branch has generated the highest revenue and made the
highest margin contribution to the business of any branch in the
system.
 Strategy implementation scores were in the “par” to “above par”
range.
 “Above par” rating in control scorecard.

 Customer satisfaction was “below par”.

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PROBLEMS WITH THE PERFORMANCE
INDICATORS

Demanding Clientele and Challenging Competition

Ratings also a reflection of Citibank’s other services

James had worked hard to improve the ratings.In the last quarter
customer satisfaction rating was acceptable, but he had been below par
for all quarters in 1996

On the other hand he deserved the above par rating given his excellent
performance in other dimensions.
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