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Strategy, Organization, and Incentives: Global Corporate Banking at Citibank, Industrial and Corporate Change

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-1990's underwent major changes in its strategy that, in turn, were accompanied by two major reorganizations and implementations of a new incentive compensation system. Citibank's corporate banking business in OECD markets moved froma 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.

Type

Article

Author(s)

David Baron, David Besanko

Date Published

2001

Citations

Baron, David, and David Besanko. 2001. Strategy, Organization, and Incentives: Global Corporate Banking at Citibank. Industrial and Corporate Change. 10(1): 1-36.

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