––
350
Exhibit TN-1: The Relevant Organizational Structure
Frits Seegers
President
Citibank California
Frits Seegers
President
Citibank California
Financial District
James McGaran
Financial District
Area manager
Los Angeles Area
Area manager
Los Angeles Area
– 351 –
Exhibit TN-2: The Performance Scorecard
Standards
Standards
•Leadership
•Ethics / Integrity
•Customer interaction
•Community involvement
• Contribution to overall business
Measured subjectively
through Lisa’s assessment
People
People •Performance
•Teamwork
•Training and development
Measured subjectively
through Lisa’s assessment
Control
Control •Audit
• Legal
•Regulatory
by auditors, but using
standardized procedures
Customer
satisfaction
satisfaction
Strategy
implementation
Strategy
implementation
Variables Measures
Measured through a survey by an
external company
•Cross-sell, splits, mergers
•Retail asset balances
•Market share
– 352 –
Exhibit TN-3: James’ customer satisfaction ratings
Rating
Quarters
66
Goal
80
63
54
72
First
quarter
Second
quarter
Third
quarter
Fourth
quarter
– 353 –
Exhibit TN-4: Cause-effect relationships
Standards
Standards
People
People
Control
Control Customer
satisfaction
Customer
satisfaction
Strategy
implementation
Strategy
implementation
Financial
Financial
– 354 –
Exhibit TN-5: Concluding overheads
Citibank
:
Performance Evaluation
•
The performance scorecard should be based on
a
business model
with
cause-
effect relationships
.
•
To choose diagnostic measures
,
managers must
evaluate
three criteria
:
•
Alignment with strategy
: “
Does it tell people what they
should
be
focusing on
?”
•
Measurability
: “Can
it
be
measured
?”
Is it
objective
, complete,
and
responsive
.
•
Linked to value
: “Are
we confident that it creates
economic value
?”
– 355 –
Citibank: Performance Evaluation
• The performance scorecard can be used as a diagnostic
system to communicate strategy if:
• There are measures available to communicate strategy.
• Cause and effect model relating leading and lagging
indicators is reliable.
• If communication is the objective, choose impact over elegance
(i.e., keep it simple).