Capital One Analysis

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Capital One
The basic question in front of Capital One, a US-based bank holding company, is how to assess the performance of its analysts issuing credit cards to the clients. Presently, the skill assessment relies on maximizing number of applications processed per hour. This augments the pressure on the analysts to review more applications and achieve better incentives at the cost of substandard analysis. The other parameters considered as a part of performance review are limited in scope as well as subjective in nature (eg: quality check by supervisors, right behaviour, and regularity) The problem can be resolved by changing the assessment criteria and providing a weightage to each of the new criteria to realign the goals of the employee with those of the organization. * Assessing the number of applications processed per day with a weight of 2 * No of accumulated bad accounts for the past 2 years with a weight of 2 (lesser the number of bad debts, better is the score) * 360o feedback on each analyst, by the manager, subordinates, peers and clients (each with a weight of 1) * Number of trainings and workshops attended with a weight of 2 A few innovative performance incentives can drive the employees to do better. * Employee stock options

* Higher monetary incentives for decreased bad accounts
* Employee of the quarter, based on team voting
* Best Mentor award, for higher skilled analysts who help the new employees with their work * Team awards, to encourage team work and mutual coordination among the analysts Experienced analysts are an important asset to the firm, whose skills could be tapped to train the less experienced employees and thereby improve the firm’s performance. The following approaches can be implemented. * Recording of training session for future reference and cost saving * Training based incentives to motivate the mentors

Within one year, a fair estimate can be determined with respect to the amount spent...
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