HBS: Citibank Case

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a) Citibank is correct in shifting from a strictly financial based evaluation system to one that includes non-financial measures. Although the new performance scorecard includes a customer satisfaction section, the current method of evaluating customer service poorly designed and is inconsistent with a properly balanced scorecard. As it currently stands, measuring customer satisfaction across all clientele is too broad. The needs of the patrons vary substantially and generic questions in the telephone interviews will not suffice. Instead there should be questions geared towards business customers and a different set of questions for individual customers. It is detrimental to lump all customers into one set and assign a satisfaction rating based on the requirements of the entire group. The design of the existing system might lead James to partake in short-term actions which improve the customer service rating. By focusing all his efforts on improving the score, he may neglect satisfaction items that are not currently measured in the rating system. This will be harmful to the Financial District branch and Citibank in the long run. Bank of America and Wells Fargo, both competitors of Citibank, have branches located less than a block away from James’s branch. Since competitors are located closely together the customer satisfaction score should take into account the fact that patrons are choosing to bank with Citibank over Bank of America and Wells Fargo. The satisfaction score should be compared to an industry benchmark as well as to the scores of Bank of America and Wells Fargo. b) The current method of performance evaluation leaves significant room for improvement. Since customer bases and banking patterns differ considerably from branch to branch, Citibank should employ a scorecard at the corporate level in addition to a scorecard at the

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