Question

In: Accounting

Ittner & Larcker, “Coming up short on nonfinancial performance measurement,” Harvard Business Review November 2003 Case:...

Ittner & Larcker, “Coming up short on nonfinancial performance measurement,” Harvard Business Review November 2003

Case: Citibank: Performance Evaluation

1-Why has Citibank introduced a Performance Scorecard?

2-What is your assessment of the performance measures used to evaluate James' performance?

3-How and how well are these performance measures linked to Citibank's strategy? What is Citibank's strategy based on the performance measures used?

4-Assume that you are Lisa Johnson. Complete Exhibit 1 to evaluate James’ performance.

5-What changes, if any, would you make to the new performance scorecard system?

Solutions

Expert Solution

1)

Citibank required a new performance scorecard to evaluate the performance of managers in different verticals. It would help them in better evaluations of the managers. The new performance scorecard of the company helped in identifying the goals and achievements of managers in six areas including financial perspective, strategy implementation, standards, customer perspective, risk and control, and people development.

Hence, the performance scorecard developed by the company would allow the managers to complete well-rounded performance reviews. It helped to measure both the quantifiable as well as non-quantifiable measures of a manager’s performance.

2)

James’ performance as per the new scorecard is provided below:

Financial performance: The financial performance of James was above par as he was consistently exceeding the management’s expectations from the last 4 years.

Strategy implementation: This performance of James was also above par as he met or exceeded their growth goals for business, professional and retail segments.

Control measures: The control measures rating for James is par. James’ performance in this area was outstanding, although there was more scope of improvement.

People: Above par as he is an excellent people manager.

Standard: Above par as he has high expectations for himself as well as employees.

Customer satisfaction: Below par

Overall education: Above par


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