Industrial and Corporate Change, Volume 10, Number 1, pp. 1-36
© 2001 Oxford University Press
Regular Papers |
Strategy, Organization and Incentives: Global Corporate Banking at Citibank
Graduate School of Business, Stanford University, Stanford, CA 94305, USA
Kellogg Graduate School of Management, Northwestern University, 2001 Sheridan Road, Donald P. Jacobs Center, Evanston, IL 60208-2001, USA
Abstract
This paper studies organizational structure and incentives within a company, Citibank, that has an explicit and evolving global business strategy. The paper focuses on Citibank's corporate banking business, which in the mid-1990s underwent major changes in its strategy that, in turn, were accompanied by two major reorganizations and implementation of a new incentive compensation system. Citibank's corporate banking business in OECD markets moved from a geography-based organization to one that was multi-dimensional, with the customer dimension given first priority, the product dimension given second priority, and the geography dimension significantly de-emphasized. Citibank thus represents an excellent setting for examining the interplay among strategy and organizational structure in a complex, global company.