Recent changes have been made to the performance evaluation system with a focus on strategic goals. A suggested pproach for James feedback session and improvements to Citibank’s evaluation processes and procedures are discussed in this paper. Based on the case study, an evaluation of James McGaran has been completed and submitted with this report. (Exhibit 1). Introduction Citibank is wanting to differentiate itself in the banking industry by focusing on relationships and a high level of service to its customers.
Having a competitive advantage in the market allows companies to differentiate themselves. (Welch, 2005). so far, James McGaran has been deemed an A player at Citibank based on past performance. In fact, he was promoted within Citibank to an A position as manager of the most important branch in the Los Angeles area. Citibank recognized that it is important to have an A player like James in an A position. (Welch, JWMI 520, Lecture 2, Week 3). In the past, James received above par ratings based on the company scorecard which focused on financial measures.
The new scorecard will incorporate goals and measures in 6 areas: Financial, Strategy implementation, Customer satisfaction, Control, people and Standards. The new scorecard will utilize predictive indicators to forecast a branches future performance. The new strategy is consistent with the company’s focus on a high level of customer satisfaction. Using the new scorecard system, James’ branch customer satisfaction ratings are lower than the expected target. The new scorecard provides a balance between the branch manager’s behaviors and the results.
Rating people on behavior and results is a great way to evaluate people. (Welch, JWMI 520, Video 4, Week 4). An evaluation system should energize employees by focusing on these areas. (Welch, JWMI 520, Video 2, Week 4). Based on past performance and expectations, Frits felt uneasy about onfronting James about his low performance in the area of customer satisfaction. James McGaran’s Performance Assessment As part of this study, a Performance Assessment for James McGaran has been completed and submitted with this paper (Exhibit 1).
Following is additional performance feedback based on the new scorecard system adopted by Citibank. Financial An above-par rating for this measure is based on an exceptional year with performance figures above target in each quarter. The branch achieved excellent results with respect to revenues, expenses and margins. Strategy Implementation The overall rating deserves an above-par with the first quarter having a par rating but the remaining three quarters in all business segments improving. Control This area is above-par by hitting the target in all three quarters when it was rated.
People James performance was rated above-par in all quarters. He uses a strong sense of teamwork as evidenced by high employee satisfaction scores and excellent communication skills. He gives importance to training and education to self and employees. James is pursuing an MBA and should graduate soon. Standards James is rated at above-par and has performed with excellence in this area. He is regarded as one of the best managers of the California branches. James is dedicated to the community and has a can-do attitude that is contagious.
Customer Satisfaction Customer satisfaction measures now have a high priority at Citibank. The measure is deemed a predictive indicator to the future SUCCeSS Of a branch. Initially, James’ score was well below target but has improved from a low of 54 in the 3rd quarter to 72 with a target of 80. The improvement indicates that James is taking the proper actions to achieve success. The company’s policy clearly states that “a branch obtained par score if it scored 74 to 79”. The final score is 72 but keep in mind the score increased by 18 from the last quarter.
In the end, I recommend the final score be deemed par with respect to customer satisfaction even though the number is below the guideline because of improvements made and considering James as someone important to Citibank’s success. Retaining James, keeping him motivated and keeping the scorecard and bonus system confidential should minimize any drama within the company. Keep in mind, the customer satisfaction results ould be heavily scrutinized as part of future feedback and reviews. Performance Assessment Approach With respect to Citibank’s performance assessment approach, we must convey the Citibank mission to employees.
James must see how his contribution will enable Citibank to achieve its mission. (Welch, JWMI 520, Video 1, Week 4). In assessing James, it is crucial to communicate his capabilities in connection with the firm’s strategy and mission. (Becker, 2009). Without making this connection and letting him know where he stands in achieving the companys mission, there will be no alignment. The foundation for connecting to the mission is making sure James understands corporate success and his position relative to Citibank’s winning. (Welch, 2005). There are two components to a winning solution.
The company needs A players that are able to fill A positions. (Huselid, 2005). The A players must be the best. They must be able achieve excellence in their behavior and results. Communication with James must be candid and supported by quantitative and qualitative assessments. (Welch, JWMI 520, Video 4, Week 4). After getting James aligned with the corporate mission and expressing the mportance of his position, we would simply go through the evaluation using the performance scorecard. (Exhibit 1). Based on the scorecard, it is evident that James is a star performer.
So how do we address the low customer satisfaction number without demotivating James? The key is to focus on building James confidence. (Welch, JWMI 520, Lecture 1, Week 4). To build confidence we will concentrate on areas of success and allow James to develop an action plan to improve his customer satisfaction results. It must be noted that James exhibits proper behavior by his already identifying ustomer satisfaction as an area for improvement. He has applied corrective actions wh ich improved service scores substantially throughout the year.
James self-awareness in developing an improvement plan proves his high emotional intelligence. In summary, the results obtained indicate that James has the self-awareness, self-regulation, motivation, empathy and social skills necessary as an important member of the Citibank team. (Goleman, 2004). would suggest a possible promotion for James in the future with improvement of customer satisfaction and by sustaining success in the other scored areas. Employee Assessment Policy and Procedures It seems Citibank has developed a decent system to evaluate employees.
The scorecard format emphasizes behavior and results that are key to differentiating employees. The scorecard is a type of dashboard that can be used to quickly monitor results from quarter to quarter. In spite of the quarterly results, the only evidence of an actual face-to-face appraisal is done annually in conjunction with James’ bonus. Ideally, reviews should take place several times a year with a focus on different objectives at each review. (Welch, JWMI 520, Lecture 1, Week 4). One of the reviews should focus on ways for employees to develop within the organization.
With focus on development as the only objective, candid conversation between both parties can happen with no threat of negative consequences. The development of employees must focus on lead measures that are aligned with the companys mission. An employee aligned with core values motivates, inspires and galvanizes teams to achieve great results (Welch, JWMI 510, Lecture 1, Week 2). They are motivated to do whatever it takes; they are inspired to achieve greater results and are galvanized to increased strength. Lead measures differ from lag measures because lead measures will help get to the desired result.
To stress the importance of this measure, score associated with customer satisfaction should carry more weight in relation to an employee’s overall performance score. Weighting will aid in changing behavior that is consistent with the companys wildly important goals. (WIGs). (McChesney, 2012). For example, Citibank’s philosophy says that the leading measure of long term financial results is customer satisfaction. By allowing the customer satisfaction score to carry more weight on the overall score, Citibank will ommunicate that activities associated with high customer satisfaction will achieve the desired results.
The Lead is the mechanism to achieve the desired result. Another important consideration in the lead measure is that it is something employees can influence whereas lag measures simply communicates the final outcome and can no longer have influence on future results. With respect to providing employees candid feedback, I recommend that Citibank obtain DiSC Management Profiles for each of the branch managers. (Goodman, Center for Internal Change, Inc. Management Profile, A 1 W 2). Armed with this information, Frits and Lisa could provide candid feedback without demotivating employees.
Frits and Lisa must have the emotional intelligence in knowing how to interact with each manager. (Goleman, 2004). The information in the DiSC model will help in employee interaction and feedback. As a final recommendation, the performance assessment process must focus on subjective feedback as well as objective measures. (Welch, JWMI 520, Lecture 1, Week 4). James is the manager of the most important branch of 31 branches in the LA area. The performance assessment system must consider the value Of the work associated with the articular position.
I am not suggesting that customer satisfaction numbers be disregarded as a predictive indicator. I am suggesting that the performance assessment consider subjective and objective data in a weighted fashion with emphasis on areas that the company deems important. recommend that objective data be reviewed and discussed along with subjective feedback. Leadership must communicate where managers need to improve and as mentioned previously, paint a picture for where they can go by overcoming any areas of low performance. (Welch. JWMI 520, Video 3, Week 4).
A formal system that enables managers to establish a evelopment plan with career opportunities is recommended for Citibank. Conclusion James is doing an above par job based on the performance assessment. I would suggest a 25% of salary bonus be paid in lieu of the low customer satisfaction rating with the understanding that this area is improving. The maximum is 30% but with customer satisfaction low, this reduction is equitable. A performance assessment must be provided to James using candor but in a way that will not demotivate him; particularly based on the strong financial performance at the area’s most important branch.
To rovide constructive performance feedback, several specific changes to Citibank’s policies and procedures have been recommended. The use of recommended changes will establish a process for motivating and improving the performance of Citiban? s people and overall company performance.