Citibank : Performance

Evaluation
.
“Performance management is about
creating relationships and ensuring
effective communication Its about
focusing on what organisations,
managers and team members need to
succeed”

- Robert Bacal
 Performance Management

Why do even best of great strategies fail?

A study of 275 professional portfolio managers reported that the ability to
execute strategy was more important than the quality of the strategy itself
(“Measures That Matter,” Ernst & Young, Boston, 1998)

In the early 1980s, a survey of management consultants reported that less than
10 percent of effectively formulated strategies were implemented
successfully (Walter Kiechel, “Corporate Strategists Under Fire,” Fortune, Dec.
27, 1982).
A 1999 Fortune article, in a cover story of prominent CEO failures, concluded that
the emphasis placed on strategy and vision created a mistaken belief that the right
strategy was all that was needed to succeed. The authors concluded that “…in
the majority of cases—we estimate 70 percent—the real problem isn’t [bad
strategy]…it’s bad execution.” (R. Charan and G. Colvin, “Why CEOs Fail,”
Fortune, June 21, 1999).
Q 1 : Why has Citibank introduced a
Performance Scorecard
 Components of a Scorecard Financial Perspective

Perspectives: six perspectives on To succeed

financially, how
Objectives Measures Targets

should we appear
enterprise performance (Financial, to our
shareholders?
Strategy Implementation, Customer
satisfaction, Controls , People and Standards Strategy Implementation
Standards)
Involvement in Target customer
Objectives: What the company needs Community groups
Objectives Measures Targets Objectives Measures Targets

Segment relevant
to branch strategy
to do to accomplish its strategy
measurable objectives.
Metrics: Actionable and tangible Customer Perspective Risks and Control

measurements which support Internal audits

achieving objectives; this is what To

Objectives Measures Targets Objectives Measures Targets
achieve our
strategy, how
should we appear
makes it real. to our customers?

Targets: Performance level

expectations set against the strategic People Development

plan. For each metric, set a goal or To achieve our Objectives Measures Targets

plan so progress against the

strategy, how will
we sustain our
ability to change
objective can be evaluated. and improve?
 Performance Management

Involves establishing clear expectations and understanding

about:
 The team member employee's essential job functions
 How the team members job contributes to the goals of
the organisation
 What it means, in concrete terms, to do the job well
 How job performance will be measured
 That barriers hinder performance and how they can be
minimized
 How the member and the team leader will work
together to improve the member’s performance
 Performance Planning

What do we want to be or where do we want to be?

How will we get there?

P P
E
E What do we need to do, from Financial perspective, to get R
R
F there? F
O O
R R
M
What do we need to do from Customer perspective, to M
A achieve our financial objectives? A
N N
C C
E
What Internal processes do we need to follow, to achieve E
out customer objectives? M
M
E E
A A
S What capabilities do we need to develop in our people to
S
U achieve financial, customer & Internal process objectives? U
R R
E E
 Performance Management
Manage performance –Performance evaluation is just a small part of
performance management- and probably the least important The
Steps are:
 Planning performance
► This involves both you as a manager an your team to analyze the
work to achieve goal
 Making right decisions
► By collecting and evaluating data and information
 Diagnosis and Problem solving
► Identification of barriers to performance (past, present & future)
so as to formulate plans to overcome the barriers
 Performance appraisal meeting
► Summary/Review
 James Performance
► If I am Lisa, I shall give Above Par ratings
to James.
 He has done exceptionally well across the
scorecard and though he is seen as struggling in
the area of customer satisfaction, he is
consciously making efforts to over come it
 Lets not forget the parameters which are
beyond branch’s control are also detrimental for
customer satisfaction score.