Professional Documents
Culture Documents
PROBLEM STATEMENT
The effective use of the new performance scorecard
at the California Division of Citibank to rate the performance of James: a dedicated and hardworking manager of one of the largest and most challenging branches of the Division
INTRODUCTION
Circa 1997
branches of Los Angeles area Staff of 15 people, revenue $6mn, profit margin $4.3mn Diverse customer base Intense competition, especially from Bank of America and Wells Fargo Impressive financials for four years successively New performance scorecard to include customer satisfaction too
Total revenue and profit margins against targets Obtained from regular accounting system
Tracked revenue for different types of target customer segments relevant to branch strategy Households, businesses & professionals
Viewed as leading indicator of future financial performance Telephone interviews with 25 previous month branch customers Service, ATM and phone banking services included
of at least 80 Quarterly & annual evaluation of branch managers Comparison between objectives and targets achieved for each performance measure Branch managers bonus linked to final performance scorecard rating Below par rating no bonus Par rating bonus of 15-20% of basic salary Above par rating 30% bonus
Quarterly ratings (1996) Outstanding (20% above target) Par to above par range Above par
Customer satisfaction
Below par
RECOMMENDATIONS
the division. Satisfying a diverse group of demanding clientele was a challenge Customer satisfaction survey was very subjective. The customers may be unhappy with the centralized services provided by the bank A below par rating will demotivate James: a hardworking and dedicated employee James was a reference point for a lot of branch managers and his appraisal was being watched closely
qualitative to gauge the reasons for dissatisfaction: centralized services or branch specific services The different retail customers: households, businesses and professionals may have diverse needs. It will be good to capture their details to focus on improving satisfaction for a particular segment The sample size of 25 may be inadequate to assess the customer satisfaction of a large branch. It should be adjusted according to the size of the branch The base value of the customer satisfaction scoring should not be fixed at 80 throughout the division. It should be branch/area specific, based on the current customers
by self appraisal by employees Discussion with the employee in question should be as essential part of the appraisal process BARC can be an effective appraisal tool to allow are managers to conduct more accurate appraisals* The appraisals should be also take into account the process and not just be based on outcomes