RATING?

RATING?

BONUS?

PERFORMANCE EVALUATION

A CASE ANALYSIS BY –
GROUP 10

PROMOTION?
FAIR?
 ABOUT
STRATEGY CLIENTELE
To built a profitable franchise by Diverse Customer Base.
providing relationship banking Demanded high quality service,
combined with a high level of knowledgeable employees &
service combined to its customers. personal attention.
FOCUSED ON CUSTOMER’S SERVICE Had sophisticated retail banking
AS KEY DIFFERENTIATOR needs. Mom and Pop Businesses.

KEY PEOPLE SERVICES

 Frits Seegers : President of Provided broad array of
Citibank, California services – Dense network
 Lisa Johnson : Area Manager of ATM machines, 24 hour
 James McGaran : Branch banking, Home banking.
Manager, LA Area Branch Telephone interviews.

FINANCIAL DISTRICT OFFICE : MARKET

JAMES’s BRANCH Citibank was a niche player
Staff of 15 people in the market. Broad
Revenues of $ 6 million selection of financial
Profit Margin of $ 4.3 million BRANCHES COMPETITION products by customers
There are 31 Branches Competition was intense.
of Citibank in Los Two major competitors are :
Angeles, California. Bank of America &
In all 80 branches. Wells Fargo
 NEW PERFORMANCE SCORE CARD
Financial Control
Obtained from regular Evaluated by internal auditors:
accounting systems: Revenue Below 4 means at risk
and profit margins

Strategy Implementation People

Tracked revenue of various Determined subjectively by branch
customer segments. manager’s boss: Development and
communication with subordinates

Customer Satisfaction Standards

Measured by telephonic interviews with branch Determined subjectively by branch manager’s
customers: focus on branch service, 24 hour boss: Manager’s involvement with community
banking service and ATM services groups, trade associations and business ethics
 Performance and Incentives
Performance evaluation team
Headed by Frits Seegers,
Area managers, Lisa Johnson,
HR, Quality and Finance
managers
Customer satisfaction goals
1996 goal to achieve a rating of
atleast 80 in all branches
Cascaded targets
Performance targets for
upcoming year established for
each area and division in
October. Further trickled down
till the branch managers
Ratings and bonus
“Below par:: No bonus
“Par”: 15-20% bonus
“Above par”: 30% bonus

Customer satisfaction Index

“Par”: 74 to 79
“Above Par”: 80 above or
improved 6 points with no
regression in last 2 quarters and
Overall Rating above market average of 77
To achieve “above par” rating
one needs atleast “par” rating
in all components
 IMPACT ASSESMENT &
DECISION
Based on impact assessment MAKING
of ratings on Mr. James McGaran, we conclude to rate him a “PAR” rating for
Customer Satisfaction Index. This would result in overall rating of “ABOVE PAR” and would keep him content for
the year preventing de-motivation.

CUSTOMER
EMPLOYEE BONUS POLICY OTHER EMPLOYEE FUTURE
SATISFACTION
INDEX MOTIVATION DISBURSEMENT IMPLEMENTATION DISCONTENT PERFORMANCE

BELOW PAR LOW LOW STRONG MEDIUM MODERATE

PAR HIGH HIGH WEAK MEDIUM MODERATE

ABOVE PAR VERY HIGH HIGH VERY WEAK HIGH STRONG

 NEW PERFORMANCE POLICY
ANALYSIS
Includes all – strategic, financial
& non-financial – aspects of
business
Encourages synergy between
function & core competency
Customer service assessment is
a parameter of central service
evaluation which is out of
control of individual branch
Qualitative & Quantitative data
have same measurements.

Such rating assessment are Categorize customer service

subjected to idiosyncratic rater assessment in two parts – Branch
effect. & Central Specific.

“ASK LEADERS ABOUT WHAT WOULD THEY DO RATHER THAN WHAT DO

THEY THINK ABOUT INDIVIDUAL”