Change @ SBI

PROJECT Parivartan AT SBI

Brought to you by TEAM 2

HISTORY

SBI SNAPSHOT

Need for Change

AMBITIOUS GOALS

• Market leader since independence.

• Turned to merging its siblings since the early 2000s

• Turned to full automation in the late half of the decade.

• Bolstered its marketing and operation through right sizing

• June 2003 marked the commencement of of a BPR in

consultation with McKinsey

Need for Change

PROBLEMS PROBLEMS … HERE THEY COME !

• Losing Ranks• Losing Market Share• Perceived as “Old and Staid”.

Need for Change

SO WHAT WAS WRONG?

• Intense competition in the Banking Industry

• Declining market share in every category.

• Competitors inching closer

• SBI had turned into an elephant. Competitors into leopards.

• Core Banking Solution – not so solvent with the “ole good

folks”

• It has lost its connect with the modern customer.

Need for Change

BUT STILL WHY CHANGE? NO BODY LIKES CHANGE !

Need for Change

JOHN P KOTTER’S

8 STEP CHANGE MODEL

STEP ON THE GAS ! HERE WE GO !

Create a Sense of Urgency

• Need for Transformational and Developmental change … and they need it NOW !

• If Not they will be remembered for ever – but only in History !

• Project Parivartan takes birth in July 2007

Need for Change

WHO’S GONNA TAKE US THROUGH?TOP MANAGEMENT CONCLAVE

PLANNING TEAM

STRATEGY TEAM

COMMUNICATION

TEAM

Need for

Change

Putting together the Team

SO WHAT WERE THE CHANGES TO BE BROUGHT?

• Customer centric approach

• Optimizing the technology the bank used.

• BPR

• Leveraging the financial , material and human capitals the

bank had to grow faster and into new areas.

• Expansion and Leadership Development

• And of course in the process make the competition taste dust

while it tasted profits.Need for Change

Putting together the Team

Objectives and Strategies

Need for Change

Putting together the Team

Objectives and Strategies

PROJECT PARIVARTAN

• Brain child of O P Bhatt.

• First ever of its kind.

• To gain support and acceptance of the change initiatives.

• Aimed at every single employee – from root to tip!

• Objective was to bring a change in the attitude and

approaches of the workforce.

• Objective was to get maximum ‘Buy in’.

• Change within a change.Need for Change

Putting together the Team

Objectives and Strategies

Communicating

the Change

SIZE DOES MATTER !

Need for Change

Putting together the Team

Objectives and Strategies

Communicating

the Change

‘PARIVARTAN’- WHAT WAS SO DIFFERENT TO BRAG ABOUT?

Completely structured.

Multimedia Based.

Interactive.Sensitizing sessions.

Learning session on customer centricity and relationship.

Concluding session calling employees to embrace “relationship banking”.

Up sell and Cross sellNeed for Change

Putting together the Team

Objectives and Strategies

Communicating

the Change

STILL NOT BUYING?

Town hall Meetings.

Association leaders exhorted members to embrace the change.

Blogs for idea and information sharing for the top management.

Emails

NewslettersThe chairman ensured

bureaucracy was kept at bayNeed for Change

Putting together the Team

Objectives and Strategies

Communicating

the Change

SHOW ME THE MONEY ( RESULTS) !

‘Parivartan’ caught the imagination of all

employees. People others have praised it as an eye opener and the best programme

they have attended in their entire career

A perceptible improvement

(20%) in Customer Service and

reorientation of employee attitudes

Number of customer service elements where

85% branch compliance is

achieved increased from 3 to 14

20 % increase in customer

satisfaction

Need for Change

Putting together the Team

Objectives and Strategies

Communicating

the Change

(NOT) A CHINESE WHISPER

Chairman

Assistant General Managers

Managing Directors

Deputy General Managers

Deputy Managing Directors

All Branch Managers

Need for Change

Putting together the Team

Objectives and Strategies

Communicating

the Change

CLASS 101 : HOW TO EMPOWER PEOPLE ?

Empowerment 101

Involve Employees in making visions and missions

Smoothen out CBS before

implementing it further

Employee Suggestions made

more effective and valuable

Encouraging people to

develop Best Practices

More delegation

Need

for Change

Putting

together the Team

Objective

s and Strategie

s

Communicating the Change

Empower

your People

QUICK WINS !

Need for Change

Putting

together the Team

Objectives and

Strategies

Communicating the Chang

e

Empower your

People

Short Term Wins

NAME AND FAME

• STATE BANK OF INDIA Has Been Adjudged The Best Bank 2009 By

Business India (August-2009)

• STATE BANK OF INDIA ranked as NO.1 in the ICMR Survey on

INDIA'S BEST MARKETED BANKS (August-2009)

• Mr. . Bhatt got numerous awards for his leadership and was even

nominated as “ The Indian of the Year” by CNN-IBN in 2007

Need

for Change

Putting

together the Team

Objective

s and Strategie

s

Communicating the Change

Empower

your People

Short

Term

Wins

SUSTAINING THIS GROWTH

Next series of Conclaves planned for the executives in 2010

•Parivartan II to be launched shortly.

•‘Antar Parivartan’for the unions/associations to achieve collaborative

stands from them.

•Corporate Banking and Mid corporate Banking being integrated as ‐

Wholesale Banking.

•Revamping of the International Business operations.

•Increasing the usage of Alternate Channels (Branch banking, Internet

Banking, ATMs, Mobile Banking etc).Nee

d for

Change

Putting

together the Team

Objective

s and Strategie

s

Communicating the Change

Empower

your People

Short

Term

Wins

Consolidate

Gains

BRINGING IN THE NEXT CYCLE

• Next transition from Employee SBI to Citizen SBI.

• Imbibing and incorporating the new behavior and change

culture in the 25,000 new recruits including specialists and

Management Trainees from Day One .

Need

for Change

Putting

together the Team

Objective

s and Strategie

s

Communicating the Change

Empower

your People

Short

Term

Wins

Consolidate

Gains

CHANGE TAKES A COMPLETE TURN OF THE WHEEL

Need

for Change

Putting

together the Team

Objective

s and Strategie

s

Communicating the Change

Empower

your People

Short

Term

Wins

Consolidate

Gains

Sustain and go

forward

LEADERSHIP – THE ENGINE OF THE CHANGE-MOBILE

Five Necessary Leadership Actions for Organizational Change

• Be clear why change is necessary in terms that make sense to the individuals.

• Declare an initial set of standards for measuring performance and get agreement

that people will set out to perform to those standards. Begin a practice of

checking.

• Show how it is done.

• Measure, acknowledge, reward new behavior, and be clear on the consequences.

• Work with them on improving.

THANK YOU

YOU DECIDE

• Which step of Kotter’s model was left out?

• What other model can you suggest to fit this scenario?

• Have other banks changed too? If yes how?

• What is Buy In exactly?

• Has SBI kept any fundamentals intact ?