In: Accounting
Citibank Performance Evaluation HBS Case Assignment
First, read the Citibank case carefully. Then, think about the following questions (on your own, and in discussion with your team-members, if any). Note that Citibank uses the term “Performance Scorecard” in the same sense in which we use the term “Balanced Scorecard” in class.
Prepare a write-up with succinct answers to each of these questions. You may formulate your answers as paragraphs or as bullet points, as long as you convey the necessary information. Please restrict your write-up to 4 sides of letter paper, typed and single-spaced, at the MAXIMUM. All answers and exhibits must be neatly typed and formatted in a readable way. Please note that I am not looking for generalities or cut-and-pastes from the text of the case; every answer must reflect your own viewpoints and arguments, in your own words. Please submit in hard copy on the last day of class.
In order to gain a competitive advantage over the peers in the industry one needs to have information.The Balanced scored is a complete system which is used by the industry and lists in top 10 methods that the companies use.
Merely INVESTING and MANAGING more and more in the Tangible Assets WILL NOT HELP.
In the case of James in spite of being at a successful managerial position he was not able to meet the needs of customer satisfaction. With greater position one has to take care of the customers as they are the non financial aspects of a given enterprise.
Even though the performance of James other than Customer Satisfaction is good in financial business perspective , internal control and learning growth perspective he does not fair good at customer satisfaction and the major reason of such failure may be that at success one tends to make changes and take lead.One has to be careful while dealing with customer as even a slight mistake can leave a bitter opinion.Active listening is another area where the focus has to be kept and areas to such other opinion of customers have to be taken note of and needs to also MOBILIZE and EXPLOIT the Intangible Assets.Thus James can be rated 3/5 as the base of the business is a customer and if the customer himself is not satisfied it is difficult to run business.However without customer satisfaction included in it the score would be a perfect 5/5 as the business gains all the advantage in financial and new customers shows a growth perspective. Moreover it is a necessity to maintain an old customer rather than only gaining new customers.Also the Customer business perspective affects the other two perspective namely business perspective and learning and growth.Hence it can be stated that the rating of James are at par subject to customer satisfaction in which case it would be below par.
Thus James has to even learn to manage the customers opinion in a better way.
Thus, one not only has to focus on the tangibles but also on the intangibles that cannot be seen.
The Balanced Score card focuses on 4 business perspective as defined by Robert S Kaplan and David P Norton.
1. The Financial Perspective
2. The Customer Perspective
3. The Internal Business Perspective
4. The Learning and Growth Perspective.
The four perspectives of Balanced Scorecard can be summarized as follows
The chart states the outline of the BALANCED SCORECARD in any organisation | ||||||||||||
FINANCIAL | ||||||||||||
HOW THE BANK APPERS TO THE SHAREHOLDERS/OWNERS | ||||||||||||
Objectives | Measures | Targets | Initiatives | |||||||||
To Grow in the terms of financial aspect of Citi Bank | Cost effective by increasing the revenue or cutting the cost. | Frequent analysis of the information available | Improvement in the areas of defect an initiatives to improve the same. | |||||||||
James performance in this area is exteremly good. | ||||||||||||
CUSTOMER | VISION AND STRATEGY OF CITI BANK | INTERNAL BUSINESS PROCESS | ||||||||||
How should we appear to our customers to achieve vision | ||||||||||||
Objectives | Measures | Targets | Initiatives | Objectives | Measures | Targets | Initiatives | |||||
To Grow in the terms of customer satisfaction and feedback of customers. | An analysis of the reasons for such feedback from the customers and is there a scope to consider it. To train the employees and give them an analysis and differences between the business clients and employees. | Frequent analysis of the feedback available from the customers | Better Training and improvement in all aspects. Merely dictation of terms is not an option however have to make them understand what is required of them. | How to satisfy the customers and which are the processes that the bank excel at. | Identify the processes and activities necessary for the business identified at financial and customer business perpspective level. | Analysis of the reviews of the feedback and the common grounds for | Customer help line and toll free numbers can be updated to gain an overview of the customers opinion. | |||||
LEARNING AND GROWTH | ||||||||||||
Objectives | Measures | Targets | Initiatives | |||||||||
To achieve all the vision and growth how willl the company change and improve | To improve in all the areas that has a defect presently in the growth of the organisation | Whether there is an impact of this negatively on the growth aspect of the company and how can the same be treated | Improvement in the Sources of Growth: 1.People (Employee Capability) 2. System 3.Organisation Process |