Change @ SBI

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PROJECT Parivartan AT SBIBrought to you by TEAM 2

HISTORY

SBI SNAPSHOT

Need for Change

AMBITIOUS GOALSMarket 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

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 folks It has lost its connect with the modern customer. not so solvent with the ole good

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 UrgencyNeed for Transformational and Developmental change they need it NOW ! and

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 PARIVARTANBrain 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 sellPutting together the Team

Need for Change

Objectives and Strategies

Communicating the Change

STILL NOT BUYING?Town hall Meetings.

Association leaders exhorted members to embrace the change. logs for idea and information sharing for the to management.

Emails

Newsletters

The chairman ensured bureaucracy was ke t 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

Assistant General Managers Managing Direct rs De ty Managing Direct rs De ty General Managers All Branch Managers

Chairman

Need for Change

Putting together the Team

Objectives and Strategies

Communicating the Change

CLASS 101 : HOW TO EMPOWER PEOPLE ?Involve Employees in making visions and missions

More delegationEmpowerment 101

Smoothen out CBS before implementing it further

Encouraging people to develop Best Practices

Employee Suggestions made more effective and valuable

Need for Change

Putting together the Team

Objectives and Strategies

Communicating the Change

Empower your People

QUICK WINS !

Need for Change

Putting together the Team

Objectives and Strategies

Communicating the Change

Empower your People

Short Term Wins

NAME AND FAMESTATE 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

Objectives and Strategies

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).

Need for Change

Putting together the Team

Objectives and Strategies

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

Objectives and Strategies

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

Objectives and Strategies

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 DECIDEWhich 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 ?