Citibank: Performance Evaluation – Harvard Business School
Think of Citibank’s new strategy (customer service and relationship banking). What were the limitations of the previous performance measurement system? Is the old system aligned to strategy? What changes were required to the system to better align to the new strategy? What is the role of the PS in this regard?
1) Why has Citibank introduced a Performance Scorecard (PS)?
2) What is your assessment of the performance measures used to evaluate James' performance?
For this, focus on the performance measures. First think about what a “good” performance measure should do for Citibank. What criteria would you use to determine if a performance measure is “good”? Next, examine each of the performance measures mentioned in Exhibit 1 and comment on their strengths and weaknesses. A table may be helpful.
3) How and how well are these performance measures linked to Citibank's strategy? What is Citibank's strategy as implied by the performance measures?
This question requires a linkage with the Balanced Score Card readings.
4) Assume that you are Lisa Johnson. Complete Exhibit 1 to evaluate James’ performance.
This question requires that you complete Exhibit 1. Provide support for your ratings. Put yourself into Lisa Johnson’s shoes.
5) What changes, if any, would you make to the new performance scorecard system?
Assess the strengths and limitations of the new PS system and suggest changes, if any.