Performance Evaluation

Group-1


Case Facts- Character Introduction
Frits Seegers : President of Citibank California

Lisa Johnson : Area Manager

James McGaran : Branch Manager of Los Angeles Area Branch.

Purpose of Performance Scorecard
Set clear goals for appraise and provide specific measures for the
person doing appraisal

Includes both quantitative and qualitative parameters

Provide organization with tools to do strategic management and
operational control

Helps executives to focus on several important measures that drive the
strategy

Performance Scorecard at Citibank
Specifying goals and measures managers performance in 6 areas:

Financial measures
Strategy implementation
Customer satisfaction
Control measures
People
Standards


Indicators of Performance Score Card
Financial Measures: Focused mainly on total revenue and profit margin
against targets.

Strategy Implementation: Measures tracked revenue for different types
of target customer segments relevant to the strategy of the branch.

Customer Satisfaction: Derived from questions that focused on branch
service as well as other Citibank services.

Control Measures: Reported by evaluation by internal auditors on the
branchs internal control processes.

People and Standards: Non quantifiable ratings determined subjectively
by the branch managers boss.

Performance Evaluation Method
3 types of ratings for each performance indicator

Below-par, Par and Above-par

Evaluation was determined jointly by a team led by Frits Seegers

Bonus linked to final performance score card rating

A manager could not get an above par rating without par ratings in
all the component
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

Recommendation by group..

Overall Evaluation
Award at Par ratings

Consequences if given above Par ratings:
o As per organisation PMS process
o For service industry customer satisfaction is the key factor
o Customer objective of the bank would be defeated
o Resentment among other branch members
o Undue favour or biased decision





Suggestions by group
The Customer satisfaction parameter to be divided into controllable
and uncontrollable aspects with assigned weightage.*

Regular feedbacks of customer needs by branch to organisation for
faster decisions and implementation of customer needs.

Organisational policies for training of employees for better customer
services (front end and back end)

Value proposition of branch and organisation to set the expectations of
customers and then meeting/delivering them.