João Paulo Coelho (BOAH 2401) October 04, 2010
Citibank: Performance Evaluation
In 1996, Citibank was an emergent banking institution attempting to increase its market share in the competitive Los Angeles area. In order to do so, the bank’s strategy was to focus slightly less on their financial growth, and much more on providing “a high level of service to its customers”. Management viewed this paradigm shift as “critical to the long term success of the franchise”.
To implement these changes, a new Citibank employee performance assessment scorecard was created, briefly tested and quickly implemented. Though I believe it was a much improved and broader way to gauge individual performance, there was certainly room …show more content…
For Citibank this measure was helpful in assessing the level of awareness and involvement of the managers with compliance problems.
The most ambiguous and subjective measure on the scorecard, happens to be highly regarded by Citibank leadership as a vital gauge of the long term success of the organization.
I look at this measure as having 2 very distinct elements. In the telephone survey previously mentioned, there were questions regarding services provided at the actual branch, and questions concerning other Citibank services such as 24 hours phone banking and ATM services. I believe questions pertaining services offered at the branch belong with the Strategy Implementation measures, as management clearly stated customer service as a top priority and the branch managers’ actions should be closely linked to services provided at their own local office. All other questions, ones related to additional Citibank services and seemingly out of a branch manager’s control, should be eliminated from their performance scorecard.
Under the current format, there is information that I deem crucial to making this decision that is not provided with the case study. Being that this Customer Satisfaction measure is new in the assessment scorecard (which was only briefly tested before being implemented) I would like
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Armstrong’s team used branch-level data from the CSI system as the primary source of research. As a result the concept of “comfortable banking” is directly translated into customers satisfaction during their interaction with tellers in the bank, since almost every criteria in the CSI is measuring representative service behaviors. One thing that the team failed to see is that “comfortable banking” could include a much wider scope of services that customers value therefore consider important to their experience: the products itself and services provided outside the bank for instance. According to Armstrong, “comfortable banking” positioning stands for the branding of the overall experience TD Canada Trust delivers to its clients. The financial products, as the core business of any banks throughout the world, should be counted as part of the service, too.
This report discusses moving from words to action and how Wells Fargo can generate buy in throughout the changes discussed. This report will discuss the option of bringing in a consultant and phase in of proposed changes. Change is ongoing and even after implementation there is a need for review and follow-up. Wells Fargo has begun to make changes which will be reviewed for effectiveness and efficiency throughout the sections of this paper.
Wells Fargo’s strategy is based upon relationship focus, competitive advantage, reputation, price for risk, conservatism, operational excellence, and clear accountability (Perez, 2014). In fact, their relationship focus is measured based upon how efficiently, effectively, and prudently they serve their customers (Perez, 2014). As for price for risk, their business operations are conducted in a way to address risk to capital and only retail risk when there is sufficient evidence for a return (Perez, 2014). Notably, all banks are faced with credit risk, but there are choices, such as: avoid the risk if it is economically unviable, accept risk if it is justifiable, diversify the bank’s portfolio, or liquidate risk by transferring to another party (Perez, 2014).
Bank of America, on the other hand, has spent its time during the post great recession managing its Merrill Lynch purchase. With such a large wealth management force often referred to as the ‘thundering herd’, the Merrill acquisition allows the bank to explore untapped opportunities, as well as making the bank the biggest in the nation bypassing “JPMorgan Chase & Co (JPM.N) and Citigroup Inc (C.N) in size, giving it about $2.7 trillion of assets” (Stempel, 2009). Similar to Morgan Stanley’s plans for its wealth management arm, Bank of America intends on trading the high volatility of traditional investment banking with the stability of the more retail investor focused wealth management. The strategy and benefits are evident, as various Wall Street firms try and reign in more riskier lines of business with more stable ways of income. Additionally, as explained by Halah Touryalai (2012), the advantage of cross selling traditional banking and mortgage products with wealth management clients “can be a very profitable.” The synergies created between both firms could lead to favorable results “as both sides look to tap into one another’s existing client base… sell more products to existing customers. The more products each one of your customers buys from the bank, the more profitable they become for the bank–not to mention it makes it more difficult for a customer to leave” (para. 5). To emphasize, just the size and scope of Bank of America could lead to more attractive
Q1. Identify three key characteristics of the marketing concept. A. Marketing is very important and a key concpet in creating a succesful business. "Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitabily". The marketing concept states that success is achieved by identifying needs and wants of the target market satisfying them better than competitors.
Welcome to the service audit report on Bell State Bank and Trust, a locally originated bank that was formerly known as State Bank and Trust of Fargo. This report covers the business model of Bell State Bank and Trust and focuses exclusively on the service marketing aspect of the business. In the beginning of the report I have provided a general overview of the banking industry. This part is important in understanding and comprehending the level of progress or shortcomings of the subject bank. By realizing how fast the banking sector is progressing, it gives us a reference point to analyze the progress of Bell State Bank. I have also discussed the competitive environment of the bank. In this section I realized that Bell State was one of those financial institutions that is hard to classify as it has smaller roots and is close to its origins, however it has a huge asset of $3 Billion that transcends the limits of small regional banks. The firm’s competitive advantages highlight that the firm prides itself in its community ties. It is these ties that have led to the banks local sourcing of employees, philanthropy, past growth and public image.
Bringing consumer and commezrcial banking branches and capabilities to more places in the United States
Nipissing Bank, one of Eastern Ontario’s premier financial institutions, was established in 1986 in Ottawa Ontario. Working with corporate, personal, and commercial customers they established about 25 retail branches mainly in Ontario and provide many financial services such as general banking, trust, insurance and wealth management. Though as time went on more competitors moved in and as is usually the case, Nipissing Bank has been pressured to gain more customers and retain their current clientele. By 2008, Nipissing was struggling to maintain their clients using their current marketing tools. Their manager of administrative services, McKenzie Scott, is making an attempt to improve these efforts and has a few options with which to
The Canadian international bank, Scotiabank, is one of the leading financial service providers in North America. They have about 88,000 employees catering to around 23 million customers, helping them with their products and services. As early as 2009, they have implemented what they call is their 5-Point Strategy, which they say is the framework of their success. The framework focuses on the 5 points where Scotiabank believes would lead them to their main goal and purpose which is to be the best at helping customers become financially better off. The first point is Sustainable and Profitable Revenue Growth, which comes from their ability to build relationships with customers and attract new ones.
• Enhance its position as a leading global bank for both institutions and individuals, by building on its unique global network, deep emerging markets expertise, client relationships and product expertise. • Position Citi to seize the opportunities provided by current trends (globalization, digitization and urbanization) for the benefit of clients • Further its commitment to responsible finance • Strengthen Citi’s performance-including gaining market share with clients, making Citi more efficient and productive, and building upon its history of innovation
Such measures are commonly used to help an organization define and evaluate how successful it is, typically in terms of making progress towards its long-term organisational goals.
The Maverick Lodging case concerns the initial results of installing a new, comprehensive performance review system. As a consultant to Maverick Lodging and the Marriott Corporation, your task is to evaluate the efficacy of the new performance evaluation system. Your direct point of contact is Ms. Cindy Baum who was responsible for managing the rollout of the new performance evaluation system.
The banking industry is ripe for innovation. We need to grow through value creation and excellent service that is appreciated by customers as opposed to price alone. — Milton Jones, president, Georgia Banking Group “I wonder if we’re being ‘overrewarded’!” exclaimed Warren Butler to Amy Brady, the executive responsible for Bank of America’s Innovation & Development (I&D) Team in Atlanta, Georgia. As an executive in the consumer bank’s quality and productivity group, Butler led innovation and process change in Brady’s group, which was responsible for testing new product and service concepts for the th bank’s branches. In the company’s elegant 55 floor conference room
A key principle of Citi within their mission statement is ‘common purpose’ (Citigroup, 2012). Accurate readings of the business’s current state are critical for management to use in decision making for the business. It must be determined if the actual, real, state of the business aligns with where the business forecasted it would be in a set amount of time. This is critical information for finances, business development, and other monetary aspects of running a global company. These figures are signs for management to use as roadmap for deciding where training may be required, resources distributed, or more manpower needed.
Leadership at Commerce Bank knew what it needed to do to be successful in the banking industry. They knew from the get go that they wanted to focus on differentiating themselves from competing banks. They wanted to compete on service rather than price recognizing that their prices weren’t always the best in the industry. Their corporate strategy was set around their customers having a positive, memorable, and consistent experience when they visit any of the Commerce Bank branches. They relied heavily on research to determine why customers left their financial institutions in favor of a competitor and they made it their goal to make Commerce Bank stand out from the rest. Commerce Bank capitalized on what other banks