CITI Corp established in 1812 and grew to become the largest bank in America through innovation between 1970-1993. Under CEO Walter Wriston, it transformed from a traditional commercial lender to an innovative organization by offering new services, recruiting young managers from outside, and bringing in new technologies. Key strategies included emphasizing customer responsiveness, experimentation and learning from failures, managing information across its global network, and fostering a meritocratic culture that rewarded risk-taking and entrepreneurship. These changes helped CITI become a leader in areas like ATMs, credit cards, and global corporate banking.

1. CITI Corp inc.Learning to Innovate (1970 – 1993)

2. What will you do with 100 bricks?

3. Counting=AccountingScattering=EngineeringRestructuring=PlanningThrowing=Operation

4. Sleeping=SecurityBreaking=ITStay Calm=HRThrow out of window=Procurement

5. Lying=SalesDisappear=MarketingHolding=Internal AuditSat Vacant=Strategic Planning

6. Company ProfileEstablished 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 serviceIn 1951, Launch the 1stcredit card – Dinner’s Club

10. “Fast-growing, competitive and customer-oriented organization”

11. In CITI Corp during 1970 - 1993What’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, MetallurgyExperience at Ford MotorRun banking as “Factory”Transform ‘Back Office’ => Low Cost, High-QualityRecruit production backgroundReorganize & Reduce HCAutomated & Redesign work- flow and control systems

17. Young Tigers (Some Example)Pei-Yuan ChiaHead of global consumer bankingExperience at General Food as Brand Manager for coffeeLawrence M. SmallHead of commercial banking OperationsClassically Trained GuitaristExperience at Ford Motor

18. Young Tigers (Some Example)Steve PriceCitibanking Concept CreatorExperience at General Food as MarketerRichard S. BraddockPresident and head of individual bankingExperience at General Food as Product Manager

19. PerformancesThe 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 volumeThe highest profits among banks in America in 1981, 1982EPS growth from $2.11 to $6.48 between 1973 – 198350% of earnings were from new servicesVariety ServicesFinances

24. AchievementsBecomeNo.1bank in AmericaFortune’s most admired companies for innovativenessMarket Leader in Defining trend and rules for others’Trendsetter

25. AchievementsAmong the most professional banks in services and solutionsVoted 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 & ContradictionsMeritocracy & EntrepreneurshipExperimentation & Action LearningCustomer ResponsivenessManagement of InformationHow Citicorp does it…

27. Diversity & ContradictionsObjectiveCreate new things (Change) by encourage diversities, deviations, internal contradictions

28. Allow NO Excuses!!Diversity & ContradictionsAction / ResultDiverse backgrounds, nationalities and cultures across all levels=> pool of corporate talent => not allow political nexusRisk-taking, initiative and innovativeness but simultaneously system-driven and result-oriented organization

29. Diversity & ContradictionsAction / Result Decentralization Assign tasks with overlappingBalance Powerful VS Contradictory forces“One’s survival depends on the boss’s evaluation”Force compete against and negotiate/collaborate with their colleagues

30. Meritocracy & EntrepreneurshipObjectiveEncourage individualistic initiativeTo drive innovation

31. Action & ResultPay to PerformanceNurtures talents, seek out and support “High-flyers” early in their careers, create own unique career path“Superstars”Meritocracy & Entrepreneurship

32. Meritocracy & EntrepreneurshipAction & ResultHires above baseline requirementsworking together will create new jobs and opportunities for them and the bankJob Rotationcreate their own nichesSmall team, push decision-making downengine of innovation

33. Customer ResponsivenessObjectiveBuilding customer-oriented business worldwide

34. Customer ResponsivenessAction & Result“Clients value the quality of relationshipmore than the cost of relationship”Customer focus is a basic necessityInnovative services to meet customer needs

35. Customer ResponsivenessMortgage Financing15 minutes to process loans!Based on thorough understanding nature of market and customer needs

36. Customer ResponsivenessDeveloping long-term relationship with clientsWorld Corporate Group (WCG) focus on top global companyRelationship Managerto develop ‘relationship-continuity’Clients visited every two months to understanding client’s business‘relationship review’yearly survey to get client’s perceptionsInternal meetings with clientsCustomizing solution to fit client

37. Customer ResponsivenessManage intangible (service performance)Control quality of service & Measure performance‘cross-selling’ before present to clientLearning from past mistakesweekly meetingTransfer intangible to tangibleCustomer survey‘tier-positioning’

38. Experimentation & Action LearningObjectiveProactive and creates an environment for itself

39. Experimentation & Action LearningAction & ResultDeveloping and implementing the ATMs“Most competitive in U.S. 80% of customer using ATMs”

40. Experimentation & Action LearningAction & ResultLearning from experiments and field experiments“Credit-scoring system and become largest card-issuer 36M cards globally”

41. Experimentation & Action LearningAction & ResultEncourages speed in action and decision-makingTo be impulsive, experiment and learn from success and failures“Citicorp culture”Failure rate of initiatives is high !!!

42. Management of InformationObjectiveMake the bank capitalise on the vast potential of technology

43. Management of InformationAction & ResultUsing information technology for data processing, telecommunications, MIS, decision support and production control “Competitive weapon with 200 data centers operate world-wide”

44. Management of InformationAction & ResultWide area network (WAN)Subscribe extensive to financial studies“Speed up operation & Leverage knowledge, planning and problem-solving”

45. Management of InformationAction & ResultEmphasis on sharing of expertise and knowledgeUrging people work together“Best Partnership and Best Transaction”

46. Management of InformationAction & ResultHorizontal movement Internal meeting and conference“Knowledge transfer”

47. Management of InformationAction & ResultCirculating information on regular basisPosted new ideas and solutionsPublished monthly journal“Convert local solutions to global competitive advantage”

48. Sense of LO & KMShukla Model (1997) – Components of LOMadhukarShukla

49. Components of LOStrategic intent to learnLearning mechanismSupporting structures and processes

50. 1) Strategic Intent to LearnTransformational LeadershipWriston – “A man with a mission”John Reed – “Paradigm Shifter”Stretch goals and visionInnovative OrganizationRocking-the-boat-factorsInjection new blood

51. 1) Strategic Intent to Learn“Failures are part of the landscape if you’re trying to change things and grow”