Citibank Restructuring - Case Solution

1. Citi bank restructuring – Case
Solution
By
V.V.L.N. Sastry
Abhishek Sinha
Sagar Kalantre
Gaurav Saxena
Sarvade Thirumalesh Rao
01-Aug-2019
Confidential
Not to be shared by the team
to other teams excepting to
IIMC Office for Professors
Review

2. YES. INITIALLY THE
ORGANIZATIO
N WAS
FOCUSING
TOWARDS 1)
CONSUMER
BANKING AND
2) CORPORATE
BANKING.
IN THE MID OF
1990
STRATEGY
CHANGED TO
MULTI-
DIMENSION
ORGANIZATIO
NAL
STRUCTURE I.E
GEOGRAPHICA
L AND
PRODUCT
DIMENSIONS.
GRB FORMED
IN 1995 AND
AFTER
FORMING GRB
AND
EMERGING
MARKETS
DIVISIONS,
THERE WERE
UNSEEN
BOUNDARIES
FORMED
BETWEEN
THESE TWO.
THE
BOUNDARIES
FORMED
BETWEEN
THESE TWO
DIVISIONS
THOUGH
THERE WAS A
SPILL OVER OF
PRODUCT,
AND
GEOGRAPHIES
KNOW - HOW
WERE IN PLACE
TO OPERATE.
AS PER THE
CITI BANK
EXECUTIVES
THERE WAS A
FOCUS DOWN
SIDE AND
MISSING THE
OPPORTUNITIE
S TO PROVIDE
INVESTMENT
VEHICLES TO
INSTITUTIONA
L INVESTORS
TO CAPTURE
THE MARKET.
TO OVERCOME
THE ABOVE
BOUNDARIES THE
GLOBAL MARKETS
DIVISION
EVOLVED IN 1997
TO CAPTURE THE
POTENTIAL OF
THE MARKET BY
GATHERING 3000
PRODUCT
SPECIALISTS AND
MANAGERS FROM
GRB AND
EMERGING
MARKETS
BUSINESS. THIRD
DIMENSION
CUSTOMER
SPECIFIC.

3. Customer orientation for management structure
Major product groups (MPGs) identified as Three
B.B (banking business) classified into two parts : Global
Relationship Banking (GRB) & Emerging Market Units (EMUs)
Many industries ranging between 10 to 14 have been
identified

4. Specialists are culled in to a specific specialist group
Incentives & Bonus linked to unit wise performance of corporate & business
instead of Individual performance
Testing of newly developed products in one geography with single customer and
then spread beyond one location to all locations across geography with low
pricing strategy to retain original customers compared to others
Two-way know-how sharing among teams for better collaboration & product
innovation in disruptive era

5. Performance
Incentives,
Power of Decision
making,
Resource allocation, Performance
Evaluation with GRB
managers,
Spill Overs, Know – How.