CITI Corp inc.<br />Learning to Innovate (1970 – 1993)<br />
What will you do with 100 bricks?<br />
 Counting<br />=<br />Accounting<br />Scattering<br />=<br />Engineering<br />Restructuring<br />=<br />Planning<br />Thro...
Sleeping<br />=<br />Security<br />Breaking<br />=<br />IT<br />Stay Calm<br />=<br />HR<br />Throw out of window<br />=<b...
Lying<br />=<br />Sales<br />Disappear<br />=<br />Marketing<br />Holding<br />=<br />Internal Audit<br />Sat Vacant<br />...
Company Profile<br /><ul><li>Established in 1812 “National City Bank of New York”
Head Quarter in New York
Over 2,000 branches in 93 countries (~1993)
More than 90,000 employees (~1993)</li></li></ul><li>Sense of Innovation (Before 1970)<br />Start Global operations in the...
“Fast-growing, competitive and customer-oriented organization”<br />
In CITI Corp during 1970 - 1993<br />What’s Happened?<br />
“A man with a mission, he steamrolled his way to success”<br />Walter Wriston – CEO (1970 – 1983)<br />Transform ‘Traditio...
Walter Wriston’s Changes<br />“Annual growth rate of 15% for ROA”<br /><ul><li>Investment Bankingand across states
Transform traditional commercial  lender to“Innovative Org”
Offervariety of services
Bring young managers from outside “Young Tiger”</li></li></ul><li>Young Tigers (Some Example)<br />John Reed <br />New CEO...
Young Tigers (Some Example)<br />Pei-Yuan Chia<br />Head of global consumer banking<br />Experience at General Food as Bra...
Young Tigers (Some Example)<br />Steve Price<br />Citibanking Concept Creator<br />Experience at General Food as Marketer<...
Performances<br /><ul><li>The 1st bank to launch ATM & E-Banking
Mortgage Financing / Insurance
Inter-Bank/Corporate Lending
Offer credit on checking account
15% Growth in transaction volume</li></ul>The highest profits among banks in America in 1981, 1982<br />EPS growth from $2...
Achievements<br />BecomeNo.1bank in America<br />Fortune’s most admired companies for innovativeness<br /><ul><li>Market L...
Achievements<br />Among the most professional banks in services and solutions<br />Voted the best bank for information ser...
Diversity & Contradictions<br />Meritocracy & Entrepreneurship<br />Experimentation & Action Learning<br />Customer Respon...
Diversity & Contradictions<br />Objective<br />Create new things (Change) by encourage diversities, deviations, internal c...
Allow NO Excuses!!<br />Diversity & Contradictions<br />Action / Result<br />Diverse backgrounds, nationalities and cultur...
Diversity & Contradictions<br />Action / Result<br />    Decentralization <br />     Assign tasks <br />   with overlappin...
Meritocracy & Entrepreneurship<br />Objective<br />Encourage individualistic initiative<br />To drive innovation<br />
Action & Result<br />Pay to Performance<br />Nurtures talents, seek out and support “High-flyers” early in their careers, ...
Meritocracy & Entrepreneurship<br />Action & Result<br />Hires above baseline requirements<br />working together will crea...
Customer Responsiveness<br />Objective<br />Building customer-oriented business worldwide<br />
Customer Responsiveness<br />Action & Result<br />“Clients value <br />the quality of relationship<br />more than the cost...
Customer Responsiveness<br />Mortgage Financing<br />15 minutes to process loans!<br />Based on thorough understanding<br ...
Customer Responsiveness<br />Developing long-term relationship with clients<br />World Corporate Group (WCG) focus on top ...
Customer Responsiveness<br />Manage intangible (service performance)<br />Control quality of service & Measure performance...
Experimentation & Action Learning<br />Objective<br />Proactive and creates an environment for itself<br />
Experimentation & Action Learning<br />Action & Result<br />Developing and implementing the ATMs<br />“Most competitive in...
Experimentation & Action Learning<br />Action & Result<br />Learning from experiments and field experiments<br />“Credit-s...
Experimentation & Action Learning<br />Action & Result<br />Encourages speed in action and decision-making<br />To be impu...
Management of Information<br />Objective<br />Make the bank capitalise on the vast potential of technology<br />
Management of Information<br />Action & Result<br />Using information technology for data processing, telecommunications, ...
Management of Information<br />Action & Result<br />Wide area network (WAN)<br />Subscribe extensive to financial studies<...
Management of Information<br />Action & Result<br />Emphasis on sharing of expertise and knowledge<br />Urging people work...
Management of Information<br />Action & Result<br />Horizontal movement <br />Internal meeting and conference<br />“Knowle...
Management of Information<br />Action & Result<br />Circulating information on regular basis<br />Posted new ideas and sol...
Sense of LO & KM<br />Shukla Model (1997) – Components of LO<br />MadhukarShukla<br />
Components of LO<br />Strategic intent to learn<br />Learning mechanism<br />Supporting structures and processes<br />
1) Strategic Intent to Learn<br />Transformational Leadership<br />Wriston – “A man with a mission”<br />John Reed – “Para...
1) Strategic Intent to Learn<br />“Failures are part of the landscape if you’re trying to change things and grow”<br />
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KM_Citi

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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=&gt;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 =&gt; special attention and job transfers to acquire a broad-based experience at the bank
  • Quality of relationship =&gt; service, responsivenessCost of relationship =&gt; 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) =&gt; smarter way applied collective learning knowledge
  • Normal time to process loans was around 45 days =&gt; Citicorp offering 15 days, and then 15 minutes!Accepted 80% of value =&gt; price sell if defaultRedesign procedures =&gt; insure its mortgagesElectronic data transmission =&gt; save about a weekReal estate agents =&gt; screened applications
  • Long-term relationship with clients =&gt; creating stability in changing environmentInternal meetings with clients =&gt; discuss and understand what the bank is doing (or should be doing) with client
  • ‘cross-selling’ =&gt; to sell services to relationship managers to refinement idea before present to clientLearning from past mistakes =&gt; weekly meeting to discuss and analyze failures and derive constructive lessons for the future‘tier-positioning’ - Tier one =&gt; top three - Tier two =&gt; top six - Tier three =&gt; below this
  • Bought Transaction Technology Inc. and set up ‘the lap’ in New York office building. Headed by Lawrence Weiss =&gt; 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 =&gt; 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 =&gt; Failure rate of initiatives is rather high The strategy is to be impulsive, to experiment, and to learn both from success and failures =&gt; Citicorp culture
  • Using information technology – data processing, telecommunications, MIS, decision support and production control =&gt; Competitive weapon with 200 data centers operate world-wide
  • Wide area network =&gt; Speed up operation and widespread to networkSubscribe extensive to financial studies=&gt; Leverage knowledge, planning and problem-solving
  • Best partnership =&gt; award for the relationship between managers and product specailistBest transaction =&gt; award for increased activity between 2+ contries.
  • Awards (Motivation)Horizontal movement – transfer expertise from one place to another =&gt; Knowledge transfer
  • Facilitating contact between people =&gt; Global competitive advantage
  • Transformational Leadership - Envisioning skill - Energizing skill - Enabling skill
  • Transformational Leadership - Envisioning skill - Energizing skill - Enabling skill
  • In-house journal =&gt; Every issue contains 10-15 innovative solutions, permitting ideas to be drawn from solutions developed by others
  • KM_Citi

    1. 1. CITI Corp inc.<br />Learning to Innovate (1970 – 1993)<br />
    2. 2. What will you do with 100 bricks?<br />
    3. 3. Counting<br />=<br />Accounting<br />Scattering<br />=<br />Engineering<br />Restructuring<br />=<br />Planning<br />Throwing<br />=<br />Operation<br />
    4. 4. Sleeping<br />=<br />Security<br />Breaking<br />=<br />IT<br />Stay Calm<br />=<br />HR<br />Throw out of window<br />=<br />Procurement<br />
    5. 5. Lying<br />=<br />Sales<br />Disappear<br />=<br />Marketing<br />Holding<br />=<br />Internal Audit<br />Sat Vacant<br />=<br />Strategic Planning<br />
    6. 6. Company Profile<br /><ul><li>Established in 1812 “National City Bank of New York”
    7. 7. Head Quarter in New York
    8. 8. Over 2,000 branches in 93 countries (~1993)
    9. 9. More than 90,000 employees (~1993)</li></li></ul><li>Sense of Innovation (Before 1970)<br />Start Global operations in the beginning of 20thcentury(among the first banks)<br />In 1921, The 1st commercial bank to have Individual lending service<br />In 1951, Launch the 1stcredit card – Dinner’s Club<br />
    10. 10. “Fast-growing, competitive and customer-oriented organization”<br />
    11. 11. In CITI Corp during 1970 - 1993<br />What’s Happened?<br />
    12. 12. “A man with a mission, he steamrolled his way to success”<br />Walter Wriston – CEO (1970 – 1983)<br />Transform ‘Traditional Commercial Lender’ to ‘Innovative Organization’ <br />
    13. 13. Walter Wriston’s Changes<br />“Annual growth rate of 15% for ROA”<br /><ul><li>Investment Bankingand across states
    14. 14. Transform traditional commercial lender to“Innovative Org”
    15. 15. Offervariety of services
    16. 16. Bring young managers from outside “Young Tiger”</li></li></ul><li>Young Tigers (Some Example)<br />John Reed <br />New CEO‘Paradigm Shifter’<br />Literature, Metallurgy<br />Experience at Ford Motor<br />Run banking as “Factory”<br />Transform ‘Back Office’ => Low Cost, High-Quality<br />Recruit production background<br />Reorganize & Reduce HC<br />Automated & Redesign work- flow and control systems<br />
    17. 17. Young Tigers (Some Example)<br />Pei-Yuan Chia<br />Head of global consumer banking<br />Experience at General Food as Brand Manager for coffee<br />Lawrence M. Small<br />Head of commercial banking Operations<br />Classically Trained Guitarist<br />Experience at Ford Motor<br />
    18. 18. Young Tigers (Some Example)<br />Steve Price<br />Citibanking Concept Creator<br />Experience at General Food as Marketer<br />Richard S. Braddock<br />President and head of individual banking<br />Experience at General Food as Product Manager<br />
    19. 19. Performances<br /><ul><li>The 1st bank to launch ATM & E-Banking
    20. 20. Mortgage Financing / Insurance
    21. 21. Inter-Bank/Corporate Lending
    22. 22. Offer credit on checking account
    23. 23. 15% Growth in transaction volume</li></ul>The highest profits among banks in America in 1981, 1982<br />EPS growth from $2.11 to $6.48 between 1973 – 1983<br /><ul><li>50% of earnings were from new services</li></ul>Variety Services<br />Finances<br />
    24. 24. Achievements<br />BecomeNo.1bank in America<br />Fortune’s most admired companies for innovativeness<br /><ul><li>Market Leader in Defining trend and rules for others’</li></ul>Trendsetter<br />
    25. 25. Achievements<br />Among the most professional banks in services and solutions<br />Voted the best bank for information service(1992)<br />Polled the best bank for arranging Forex(Euromoney, 1993)<br />Top ten investment bank (1993)<br />Ranked as the 15th largestin the world (1993)<br />
    26. 26. Diversity & Contradictions<br />Meritocracy & Entrepreneurship<br />Experimentation & Action Learning<br />Customer Responsiveness<br />Management of Information<br />How Citicorp does it…<br />
    27. 27. Diversity & Contradictions<br />Objective<br />Create new things (Change) by encourage diversities, deviations, internal contradictions<br />
    28. 28. Allow NO Excuses!!<br />Diversity & Contradictions<br />Action / Result<br />Diverse backgrounds, nationalities and cultures across all levels<br />=> pool of corporate talent <br /> => not allow political nexus<br />Risk-taking, initiative and innovativeness but simultaneously system-driven and result-oriented organization<br />
    29. 29. Diversity & Contradictions<br />Action / Result<br /> Decentralization <br /> Assign tasks <br /> with overlapping<br /><ul><li>Balance Powerful VS Contradictory forces</li></ul>“One’s survival depends on the boss’s evaluation”<br />Force compete against and negotiate/collaborate with their colleagues<br />
    30. 30. Meritocracy & Entrepreneurship<br />Objective<br />Encourage individualistic initiative<br />To drive innovation<br />
    31. 31. Action & Result<br />Pay to Performance<br />Nurtures talents, seek out and support “High-flyers” early in their careers, create own unique career path<br />“Superstars”<br />Meritocracy & Entrepreneurship<br />
    32. 32. Meritocracy & Entrepreneurship<br />Action & Result<br />Hires above baseline requirements<br />working together will create new jobs<br /> and opportunities for them and the bank<br />Job Rotation<br />create their own niches<br />Small team, push decision-making down<br />engine of innovation<br />
    33. 33. Customer Responsiveness<br />Objective<br />Building customer-oriented business worldwide<br />
    34. 34. Customer Responsiveness<br />Action & Result<br />“Clients value <br />the quality of relationship<br />more than the cost of relationship”<br />Customer focus is a basic necessity<br />Innovative services to meet customer needs<br />
    35. 35. Customer Responsiveness<br />Mortgage Financing<br />15 minutes to process loans!<br />Based on thorough understanding<br /> nature of market and customer needs<br />
    36. 36. Customer Responsiveness<br />Developing long-term relationship with clients<br />World Corporate Group (WCG) focus on top global company<br />Relationship Managerto develop ‘relationship-continuity’<br />Clients visited every two months to understanding client’s business<br />‘relationship review’<br />yearly survey to get client’s perceptions<br />Internal meetings with clients<br />Customizing solution to fit client<br />
    37. 37. Customer Responsiveness<br />Manage intangible (service performance)<br />Control quality of service & Measure performance<br />‘cross-selling’ before present to client<br />Learning from past mistakes<br />weekly meeting<br />Transfer intangible to tangible<br />Customer survey<br />‘tier-positioning’<br />
    38. 38. Experimentation & Action Learning<br />Objective<br />Proactive and creates an environment for itself<br />
    39. 39. Experimentation & Action Learning<br />Action & Result<br />Developing and implementing the ATMs<br />“Most competitive in U.S. 80% of customer using ATMs”<br />
    40. 40. Experimentation & Action Learning<br />Action & Result<br />Learning from experiments and field experiments<br />“Credit-scoring system and become largest card-issuer 36M cards globally”<br />
    41. 41. Experimentation & Action Learning<br />Action & Result<br />Encourages speed in action and decision-making<br />To be impulsive, experiment and learn from success and failures<br />“Citicorp culture”<br />Failure rate of initiatives is high !!!<br />
    42. 42. Management of Information<br />Objective<br />Make the bank capitalise on the vast potential of technology<br />
    43. 43. Management of Information<br />Action & Result<br />Using information technology for data processing, telecommunications, MIS, decision support and production control <br />“Competitive weapon with 200 data centers operate world-wide”<br />
    44. 44. Management of Information<br />Action & Result<br />Wide area network (WAN)<br />Subscribe extensive to financial studies<br />“Speed up operation & Leverage knowledge, planning and problem-solving”<br />
    45. 45. Management of Information<br />Action & Result<br />Emphasis on sharing of expertise and knowledge<br />Urging people work together<br />“Best Partnership and Best Transaction”<br />
    46. 46. Management of Information<br />Action & Result<br />Horizontal movement <br />Internal meeting and conference<br />“Knowledge transfer”<br />
    47. 47. Management of Information<br />Action & Result<br />Circulating information on regular basis<br />Posted new ideas and solutions<br />Published monthly journal<br />“Convert local solutions to global competitive advantage”<br />
    48. 48. Sense of LO & KM<br />Shukla Model (1997) – Components of LO<br />MadhukarShukla<br />
    49. 49. Components of LO<br />Strategic intent to learn<br />Learning mechanism<br />Supporting structures and processes<br />
    50. 50. 1) Strategic Intent to Learn<br />Transformational Leadership<br />Wriston – “A man with a mission”<br />John Reed – “Paradigm Shifter”<br />Stretch goals and vision<br />Innovative Organization<br />Rocking-the-boat-factors<br />Injection new blood<br />
    51. 51. 1) Strategic Intent to Learn<br />“Failures are part of the landscape if you’re trying to change things and grow”<br />
    52. 52. 2) Learning Mechanism<br />Recruiting for Diversity<br />Openness to Learn from others<br />Feedback from clients<br />Learning from past mistakes<br />Learning from colleagues<br />Aligning with customer<br />Develop client relationships<br />Build capabilities<br />Drills the soft-skills<br />
    53. 53. 3) Supporting structures and processes<br />Enabling and empowering<br />Decentralized<br />Overlapping work process<br />Diverse and above baseline requirement<br />Knowledge Connectivity processes<br />Sharing daily news among branches<br />Posted new idea and solution<br />Monthly in-house journal<br />Internal meeting<br />
    54. 54. To motivate employees to learn<br />Motivation<br />
    55. 55. Rewards and Pay<br />Pay for Performance<br />Global Relationship Awards<br />Talent Program<br />Best Transaction Awards<br />Best Partnership Awards<br />
    56. 56. Forces<br />NOT onlylearning encouraged but necessity for survival <br />Bi-Annual Forced ranking of employees, the bottom 10% are culled out<br />
    57. 57. Class Discussion<br />
    58. 58. What do you think about these?<br />“You’re aware that all of your colleagues are nibbling at opportunities too”<br />“Allow no excuses”<br />“Living Dangerously”<br />
    59. 59. Q&A<br />

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