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  • 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
  • Transformational Leadership - Envisioning skill - Energizing skill - Enabling skill
  • Transformational Leadership - Envisioning skill - Energizing skill - Enabling skill
  • In-house journal => Every issue contains 10-15 innovative solutions, permitting ideas to be drawn from solutions developed by others
  • Transcript

    • 1. CITI Corp inc.
      Learning to Innovate (1970 – 1993)
    • 2. What will you do with 100 bricks?
    • 3. Counting
    • 4. Sleeping
      Stay Calm
      Throw out of window
    • 5. Lying
      Internal Audit
      Sat Vacant
      Strategic Planning
    • 6. Company Profile
      • Established in 1812 “National City Bank of New York”
      • 7. Head Quarter in New York
      • 8. Over 2,000 branches in 93 countries (~1993)
      • 9. More than 90,000 employees (~1993)
    • Sense of Innovation (Before 1970)
      Start Global operations in the beginning of 20thcentury(among the first banks)
      In 1921, The 1st commercial bank to have Individual lending service
      In 1951, Launch the 1stcredit card – Dinner’s Club
    • 10. “Fast-growing, competitive and customer-oriented organization”
    • 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’
    • 13. Walter Wriston’s Changes
      “Annual growth rate of 15% for ROA”
      • Investment Bankingand across states
      • 14. Transform traditional commercial lender to“Innovative Org”
      • 15. Offervariety of services
      • 16. Bring young managers from outside “Young Tiger”
    • Young Tigers (Some Example)
      John Reed
      New CEO‘Paradigm Shifter’
      Literature, Metallurgy
      Experience at Ford Motor
      Run banking as “Factory”
      Transform ‘Back Office’ => Low Cost, High-Quality
      Recruit production background
      Reorganize & Reduce HC
      Automated & Redesign work- flow and control systems
    • 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
    • 19. Performances
      • The 1st bank to launch ATM & E-Banking
      • 20. Mortgage Financing / Insurance
      • 21. Inter-Bank/Corporate Lending
      • 22. Offer credit on checking account
      • 23. 15% Growth in transaction volume
      The highest profits among banks in America in 1981, 1982
      EPS growth from $2.11 to $6.48 between 1973 – 1983
      • 50% of earnings were from new services
      Variety Services
    • 24. Achievements
      BecomeNo.1bank in America
      Fortune’s most admired companies for innovativeness
      • Market Leader in Defining trend and rules for others’
    • 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
      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
    • 29. Diversity & Contradictions
      Action / Result
      Assign tasks
      with overlapping
      • Balance Powerful VS Contradictory forces
      “One’s survival depends on the boss’s evaluation”
      Force compete against and negotiate/collaborate with their colleagues
    • 30. Meritocracy & Entrepreneurship
      Encourage individualistic initiative
      To drive innovation
    • 31. Action & Result
      Pay to Performance
      Nurtures talents, seek out and support “High-flyers” early in their careers, create own unique career path
      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
    • 33. Customer Responsiveness
      Building customer-oriented business worldwide
    • 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
    • 38. Experimentation & Action Learning
      Proactive and creates an environment for itself
    • 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 !!!
    • 42. Management of Information
      Make the bank capitalise on the vast potential of technology
    • 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
    • 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
      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
      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
    • 54. To motivate employees to learn
    • 55. Rewards and Pay
      Pay for Performance
      Global Relationship Awards
      Talent Program
      Best Transaction Awards
      Best Partnership Awards
    • 56. Forces
      NOT onlylearning encouraged but necessity for survival
      Bi-Annual Forced ranking of employees, the bottom 10% are culled out
    • 57. Class Discussion
    • 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”
    • 59. Q&A