11. In CITI Corp during 1970 - 1993 What’s Happened?
12. “A man with a mission, he steamrolled his way to success” Walter Wriston – CEO (1970 – 1983) Transform ‘Traditional Commercial Lender’ to ‘Innovative Organization’
17. Young Tigers (Some Example) Pei-Yuan Chia Head of global consumer banking Experience at General Food as Brand Manager for coffee Lawrence M. Small Head of commercial banking Operations Classically Trained Guitarist Experience at Ford Motor
18. Young Tigers (Some Example) Steve Price Citibanking Concept Creator Experience at General Food as Marketer Richard S. Braddock President and head of individual banking Experience at General Food as Product Manager
25. Achievements Among the most professional banks in services and solutions Voted the best bank for information service(1992) Polled the best bank for arranging Forex(Euromoney, 1993) Top ten investment bank (1993) Ranked as the 15th largestin the world (1993)
26. Diversity & Contradictions Meritocracy & Entrepreneurship Experimentation & Action Learning Customer Responsiveness Management of Information How Citicorp does it…
27. Diversity & Contradictions Objective Create new things (Change) by encourage diversities, deviations, internal contradictions
28. Allow NO Excuses!! Diversity & Contradictions Action / Result Diverse backgrounds, nationalities and cultures across all levels => pool of corporate talent => not allow political nexus Risk-taking, initiative and innovativeness but simultaneously system-driven and result-oriented organization
31. Action & Result Pay to Performance Nurtures talents, seek out and support “High-flyers” early in their careers, create own unique career path “Superstars” Meritocracy & Entrepreneurship
32. Meritocracy & Entrepreneurship Action & Result Hires above baseline requirements working together will create new jobs and opportunities for them and the bank Job Rotation create their own niches Small team, push decision-making down engine of innovation
34. Customer Responsiveness Action & Result “Clients value the quality of relationship more than the cost of relationship” Customer focus is a basic necessity Innovative services to meet customer needs
35. Customer Responsiveness Mortgage Financing 15 minutes to process loans! Based on thorough understanding nature of market and customer needs
36. Customer Responsiveness Developing long-term relationship with clients World Corporate Group (WCG) focus on top global company Relationship Managerto develop ‘relationship-continuity’ Clients visited every two months to understanding client’s business ‘relationship review’ yearly survey to get client’s perceptions Internal meetings with clients Customizing solution to fit client
37. Customer Responsiveness Manage intangible (service performance) Control quality of service & Measure performance ‘cross-selling’ before present to client Learning from past mistakes weekly meeting Transfer intangible to tangible Customer survey ‘tier-positioning’
39. Experimentation & Action Learning Action & Result Developing and implementing the ATMs “Most competitive in U.S. 80% of customer using ATMs”
40. Experimentation & Action Learning Action & Result Learning from experiments and field experiments “Credit-scoring system and become largest card-issuer 36M cards globally”
41. Experimentation & Action Learning Action & Result Encourages speed in action and decision-making To be impulsive, experiment and learn from success and failures “Citicorp culture” Failure rate of initiatives is high !!!
43. Management of Information Action & Result Using information technology for data processing, telecommunications, MIS, decision support and production control “Competitive weapon with 200 data centers operate world-wide”
44. Management of Information Action & Result Wide area network (WAN) Subscribe extensive to financial studies “Speed up operation & Leverage knowledge, planning and problem-solving”
45. Management of Information Action & Result Emphasis on sharing of expertise and knowledge Urging people work together “Best Partnership and Best Transaction”
46. Management of Information Action & Result Horizontal movement Internal meeting and conference “Knowledge transfer”
47. Management of Information Action & Result Circulating information on regular basis Posted new ideas and solutions Published monthly journal “Convert local solutions to global competitive advantage”
48. Sense of LO & KM Shukla Model (1997) – Components of LO MadhukarShukla
49. Components of LO Strategic intent to learn Learning mechanism Supporting structures and processes
50. 1) Strategic Intent to Learn Transformational Leadership Wriston – “A man with a mission” John Reed – “Paradigm Shifter” Stretch goals and vision Innovative Organization Rocking-the-boat-factors Injection new blood
51. 1) Strategic Intent to Learn “Failures are part of the landscape if you’re trying to change things and grow”
52. 2) Learning Mechanism Recruiting for Diversity Openness to Learn from others Feedback from clients Learning from past mistakes Learning from colleagues Aligning with customer Develop client relationships Build capabilities Drills the soft-skills
53. 3) Supporting structures and processes Enabling and empowering Decentralized Overlapping work process Diverse and above baseline requirement Knowledge Connectivity processes Sharing daily news among branches Posted new idea and solution Monthly in-house journal Internal meeting
58. What do you think about these? “You’re aware that all of your colleagues are nibbling at opportunities too” “Allow no excuses” “Living Dangerously”
Walter Wriston - visionary, visualized Citicorp’s future beyond merely operating within the boundaries fixed by the regulators and by the prevailing banking norms - gave the bank an aggressive stance and a unique identity in the banking community=>เข้ามาเพิ่มบทบาทของ bank ให้ aggressive มากขึ้น และสร้างความแตกต่างในธุรกิจของ bank - keep Citicorp expanding into investment banking and across state lines
HBS study
-Recruiting starts from the view that we are a different business from a traditional bank (Holistic Approach)- Focus on management and marketing- Allows no excusesManagers are expected to achieve each of their five mandatory MBO targets
Just a few years experience, handed major accounts/clientsNo one here has a clear territory or clear ownership of a total activity
Superstars => special attention and job transfers to acquire a broad-based experience at the bank
Quality of relationship => service, responsivenessCost of relationship => interest rate, charges- Poll results best rate over quick processing- High rate interest rate charged but offered the most efficient serviceCredit card account increased threefold (3.2M to 10M) => smarter way applied collective learning knowledge
Normal time to process loans was around 45 days => Citicorp offering 15 days, and then 15 minutes!Accepted 80% of value => price sell if defaultRedesign procedures => insure its mortgagesElectronic data transmission => save about a weekReal estate agents => screened applications
Long-term relationship with clients => creating stability in changing environmentInternal meetings with clients => discuss and understand what the bank is doing (or should be doing) with client
‘cross-selling’ => to sell services to relationship managers to refinement idea before present to clientLearning from past mistakes => weekly meeting to discuss and analyze failures and derive constructive lessons for the future‘tier-positioning’ - Tier one => top three - Tier two => top six - Tier three => below this
Bought Transaction Technology Inc. and set up ‘the lap’ in New York office building. Headed by Lawrence Weiss => understand customer response, observe and talk to customer. Sixth-generation prototype.
e.g. Credit Card division approve without perform any credit evaluation. Citicorp lets them default on payment to get better statistics picture of how defaulters behave => 1.Credit-scoring system used for monitoring the behaviour of the existing and future cardholders.2.Largest card-issuer 36M cards globally
Encourages speed in action and decision-making, even if the solution is less than perfect => Failure rate of initiatives is rather high The strategy is to be impulsive, to experiment, and to learn both from success and failures => Citicorp culture
Using information technology – data processing, telecommunications, MIS, decision support and production control => Competitive weapon with 200 data centers operate world-wide
Wide area network => Speed up operation and widespread to networkSubscribe extensive to financial studies=> Leverage knowledge, planning and problem-solving
Best partnership => award for the relationship between managers and product specailistBest transaction => award for increased activity between 2+ contries.
Awards (Motivation)Horizontal movement – transfer expertise from one place to another => Knowledge transfer
Facilitating contact between people => Global competitive advantage
