Managing Transformation Action Plan Presentation 03-02-2004.

Managing TransformationManaging Transformation

Action Plan PresentationAction Plan Presentation03-02-200403-02-2004

Structure of PresentationStructure of Presentation

Objectives of the ProgramObjectives of the Program Methodology adoptedMethodology adopted How far these objectives have been How far these objectives have been

achievedachieved IIM – A flash backIIM – A flash back ISB ExperienceISB Experience How do we relate this to our BankHow do we relate this to our Bank Business Strategies – Result Business Strategies – Result

OrientationOrientation Support & Changes requiredSupport & Changes required

Objectives of the Objectives of the ProgramProgram

Understanding the Best PracticesUnderstanding the Best Practices Developing a Mindset to implement Developing a Mindset to implement

themthem Bringing Result OrientationBringing Result Orientation Moving towards Next practicesMoving towards Next practices

Methodology AdoptedMethodology Adopted Interactive Lecture SessionsInteractive Lecture Sessions Slide ShowsSlide Shows Case StudiesCase Studies Group Discussions / Group Group Discussions / Group

DynamicsDynamics Reflections by Individuals & GroupsReflections by Individuals & Groups

ReflectorsReflectors OptimistOptimist Devils AdvocateDevils Advocate SeekerSeeker PresenterPresenter PlannerPlanner

• MoviesMovies

How far these objectives How far these objectives have been achievedhave been achieved

Where we were before the programmeWhere we were before the programme Unknowing our full potential Unknowing our full potential Self Centered ( O vs. 1ON )Self Centered ( O vs. 1ON ) Looking to others for guidanceLooking to others for guidance Rigidity in mindsetRigidity in mindset Felt need for a change without knowing how to Felt need for a change without knowing how to

changechange

Where do we think now we are:Where do we think now we are: Thinking BigThinking Big Realizing our full capabilitiesRealizing our full capabilities Tuned to look for multiple solutionsTuned to look for multiple solutions The need for total transformation – Self and The need for total transformation – Self and

the teamthe team Deliver as a Team – ChangeDeliver as a Team – Change AgentsAgents

IIM Project – A Flash IIM Project – A Flash BackBack

Although input sessions were thought Although input sessions were thought provoking & Energising, it could not provoking & Energising, it could not produce desired results.produce desired results.

A large number of suggestions received A large number of suggestions received No ownership - No follow up.No ownership - No follow up. Euphoria created meltedEuphoria created melted

ISB EXPERIENCEISB EXPERIENCE

ISB EXPREIENCEISB EXPREIENCE Change Management starts from Change Management starts from

“SELF”.“SELF”. WaMu experience – If 100 Year Old WaMu experience – If 100 Year Old

Institution can grow fast, why can’t Institution can grow fast, why can’t we?we?

Accelerated growth through Organic Accelerated growth through Organic and Inorganic growthand Inorganic growth

Strong capital base – Potential for bothStrong capital base – Potential for both For change Management there must be For change Management there must be

a learning Agenda.a learning Agenda.

ISB EXPREIENCEISB EXPREIENCE

Multitude of small changes in Multitude of small changes in Architecture, Space, look and feel of Architecture, Space, look and feel of retail can bring good results.retail can bring good results.

Proceed on experiments and retain Proceed on experiments and retain them if it is liked by the customersthem if it is liked by the customers

While opening new branches, post While opening new branches, post sufficient people in advance for doing sufficient people in advance for doing ground work and conduct a Brand ground work and conduct a Brand Rally to bring excitement.Rally to bring excitement.

Our experiment in Brand Rally while Our experiment in Brand Rally while opening Western Railway ATMs can opening Western Railway ATMs can be repeatedbe repeated

Corp Bankers as Change Agents. Corp Bankers as Change Agents. Unless broad vision is broken into Unless broad vision is broken into

specific goals and tasks, the specific goals and tasks, the process cannot be put in motionprocess cannot be put in motion

What, How, Who and When to be What, How, Who and When to be specificspecific

Identify driving forces and contain Identify driving forces and contain restraining factors. restraining factors.

Focus on Skill Building Focus on Skill Building

ISB ISB EXPREIENCEEXPREIENCE

ISB EXPERIENCEISB EXPERIENCE Create a “Dream vision” and powerfully Create a “Dream vision” and powerfully

communicate to keep the excitement goingcommunicate to keep the excitement going We must try to inspire than impressWe must try to inspire than impress Channelise resources and continuously Channelise resources and continuously

monitor for achieving milestone Goals monitor for achieving milestone Goals Strategy and tactics are both equally Strategy and tactics are both equally

importantimportant Brand as value – Citi Bank case.Brand as value – Citi Bank case. From no-where, our Brand is ranked one From no-where, our Brand is ranked one

among top fifty. We must improve upon it by among top fifty. We must improve upon it by proper positioning and enliving the Brandproper positioning and enliving the Brand

I am the One - Matrix Movie experience.I am the One - Matrix Movie experience. Corp- Bankers - Be a Master practitioner with Corp- Bankers - Be a Master practitioner with

passion.passion. It is not important what happens to us is It is not important what happens to us is

important but how we react to is importantimportant but how we react to is important We must manage with more of EQ and less of We must manage with more of EQ and less of

IQIQ

ISB EXPERIENCEISB EXPERIENCE Know the path and walk it.Know the path and walk it. Emotions created to be sustained - Emotions created to be sustained -

through Change Agents and support through Change Agents and support system.system.

Mindset Change has multiplier effect - Mindset Change has multiplier effect - Be a centre of Change.Be a centre of Change.

When there is a crisis, we tend to go When there is a crisis, we tend to go back to the original behaviour patternback to the original behaviour pattern

Transformation should not be Transformation should not be momentary but should become a momentary but should become a momentummomentum

All of us together can achieve much All of us together can achieve much higher than any one of us individually.higher than any one of us individually.

ISB EXPERIENCEISB EXPERIENCE CRM – an ultimate tool for acquiring, CRM – an ultimate tool for acquiring,

retaining and providing service retaining and providing service differentiation. Weed out non profitable differentiation. Weed out non profitable customers.customers.

Our Our Top 100Top 100 Customers - Right way to begin Customers - Right way to begin with.with.

Update master data and implement core Update master data and implement core banking for CRMbanking for CRM

Bagger Vance and Junnah’s – Complementary Bagger Vance and Junnah’s – Complementary roles. Rediscover authentic swings.roles. Rediscover authentic swings.

Role change – “ Fire fighters and Captain” – Role change – “ Fire fighters and Captain” – Experience – facilitate Juniors to become Experience – facilitate Juniors to become leaders.leaders.

ISB EXPERIENCEISB EXPERIENCE

The Butterfly experience – the The Butterfly experience – the story of Stripe and Yellow. story of Stripe and Yellow.

Have a Butterfly Vision and Have a Butterfly Vision and motivate others.motivate others.

Everyone has a capability to Everyone has a capability to build their cocoon and transform build their cocoon and transform themselves to become Butterfly.themselves to become Butterfly.

ISB EXPERIENCEISB EXPERIENCE Deepak Chandra’s interaction helped us to Deepak Chandra’s interaction helped us to

identify the gap between our perception about identify the gap between our perception about the customer service and the customer the customer service and the customer perception about it.perception about it.

We can introduce better benchmarking and We can introduce better benchmarking and service audit to ensure and improve Customer service audit to ensure and improve Customer ServiceService

Korean story of selecting a future emperor based Korean story of selecting a future emperor based on his capabilities to hear the Unheard taught us on his capabilities to hear the Unheard taught us the ability to listen to unexpressed Customer the ability to listen to unexpressed Customer Complaints is the need of the hourComplaints is the need of the hour

The Dalai Lama’s action in pouring tea into the The Dalai Lama’s action in pouring tea into the overflowing cup indicate the inability to absorb overflowing cup indicate the inability to absorb new things unless you shed the irrelevant past.new things unless you shed the irrelevant past.

ISB EXPREIENCEISB EXPREIENCE Every Day, we will make it a point to Every Day, we will make it a point to

acknowledge and appreciate, one acknowledge and appreciate, one each in the family / society and each in the family / society and office. office.

Appreciation should be timely, Appreciation should be timely, grounded, short and specific.grounded, short and specific.

Let go our negative emotions.Let go our negative emotions. Apoligise for any outbursts and Apoligise for any outbursts and

adopt a mid course correctionadopt a mid course correction Each one of us has a Fatal Flaw / Each one of us has a Fatal Flaw /

Core-incompetency. Identify and Core-incompetency. Identify and address.address.

Leaders – A Self Rating Leaders – A Self Rating ExerciseExercise

Vision, Communication and Inspiration – Vision, Communication and Inspiration – Leadership traits.Leadership traits.

Like a passionate stone cutter, we must have Like a passionate stone cutter, we must have a vision of building a Cathedral.a vision of building a Cathedral.

We as “ Leaders “ – Self rating exercise - We as “ Leaders “ – Self rating exercise - Just averages.Just averages.

Each one should think as CEO to fill Vision Each one should think as CEO to fill Vision GapGap

Future is to be created. We must be willing Future is to be created. We must be willing to give up, as a Leaderto give up, as a Leader

We must develop not only good “Feed Back” We must develop not only good “Feed Back” system but also good “Feed Forward” Systemsystem but also good “Feed Forward” System

Feed Forward is important because We can Feed Forward is important because We can change the future but not the past. Feed change the future but not the past. Feed Forward helps people envision and focus on Forward helps people envision and focus on a positive futurea positive future..

CommunicationCommunication

Be a good listener to become a good Be a good listener to become a good leader.leader.

People will listen to emotions and not People will listen to emotions and not contentcontent

Powerful communication is not useful Powerful communication is not useful unless it get the accomplishmentunless it get the accomplishment

Assume / Assign SIX ROLES before Assume / Assign SIX ROLES before taking decision .taking decision .

Change FormulaChange Formula

CChange = hange = DDissatisfaction with Current issatisfaction with Current StatusStatus

XX VVision for futureision for future

XX FFirst stepirst step

>> RResistanceesistance

(Where none of the values are zero)(Where none of the values are zero)

As a Presenter-How As a Presenter-How effective we areeffective we are

Our mock presentation revealed that we Our mock presentation revealed that we are not focussed. are not focussed.

We are not effective in communication. We are not effective in communication. What we communicate and what is heard What we communicate and what is heard

is different.is different. We must align our thoughts like a We must align our thoughts like a

SymphonySymphony Each one should assume all the six roles Each one should assume all the six roles

before taking any major decisionsbefore taking any major decisions

How do we relate this to How do we relate this to our Bankour Bank

Accelerated growth is essential under the Accelerated growth is essential under the present scenario to retain our identity.present scenario to retain our identity.

Structural, Procedural, Systemic, Product Structural, Procedural, Systemic, Product and Attitudinal Changes are required to and Attitudinal Changes are required to achieve the targeted growthachieve the targeted growth

Innovation is key for successInnovation is key for success Customer Centric ApproachCustomer Centric Approach Open mind – Helps to explore new avenues Open mind – Helps to explore new avenues Growth through Organic / Inorganic meansGrowth through Organic / Inorganic means

Corporate GoalCorporate Goal

15%

50%

0%

10%

20%

30%

40%

50%

Existing Proposed

Where are we Where we want to go

Why accelerated Growth?Why accelerated Growth?

Presently a mid-size BankPresently a mid-size Bank Being sound, a ready target for Being sound, a ready target for

acquisitionacquisition Consolidation of Banks is in the offingConsolidation of Banks is in the offing Future is for Big PlayersFuture is for Big Players

Hence, we need to grow at faster Hence, we need to grow at faster pace, consolidate and retain our pace, consolidate and retain our identityidentity

CreditCredit

Accelerated Credit Growth- Accelerated Credit Growth- Milestone ApproachMilestone Approach

NOWNOW 90 90 Days Days from from NowNow

MAR’0MAR’055

MAR’0MAR’066

IFB & IFB &

OVERSEAS OVERSEAS BRs.BRs.

24002400 36003600 68006800 1020010200

Specialised / Identified Branches to play a Key Role

(Rs. In Crores)

OUR VISION FOR OUR VISION FOR CREDITCREDIT

NET BANK CREDIT (RS. IN CRORE)NET BANK CREDIT (RS. IN CRORE)

NOW 11,800NOW 11,800 90 days from now 15,00090 days from now 15,000 BY 31.3.2005 22,000BY 31.3.2005 22,000 BY 31.3.2006 30,000BY 31.3.2006 30,000

[100% GROWTH BETWEEN 31.3.04 TO 31.3.06] [100% GROWTH BETWEEN 31.3.04 TO 31.3.06]

Accelerated Credit Growth- Accelerated Credit Growth- Our StrategiesOur Strategies

Short list targetted borrowal accounts, particularly Short list targetted borrowal accounts, particularly mid corporates – update and follow up on ongoing mid corporates – update and follow up on ongoing basisbasis

Leverage CAPs Connections on package basisLeverage CAPs Connections on package basis Effective use of customer referral system – Effective use of customer referral system –

utilising NRI connections for lending to related utilising NRI connections for lending to related projects in Indiaprojects in India

Explore possibilities of taking over term loans / Explore possibilities of taking over term loans / NCDs of existing clients from other Banks / NCDs of existing clients from other Banks / InstitutionsInstitutions

Follow up with SFCs / Term Lending Institutions Follow up with SFCs / Term Lending Institutions for working capital finance (MOU)for working capital finance (MOU)

Ensuring utilization of large sanctioned but Ensuring utilization of large sanctioned but unutilised limits by offering LIBOR / MIBOR / CP unutilised limits by offering LIBOR / MIBOR / CP related rates and extending interest rebate – related rates and extending interest rebate – (Revive, Regain and Retain)(Revive, Regain and Retain)

Strategies – Contd.Strategies – Contd.

Focus on bulk lending to Focus on bulk lending to a)a) Institutions / PSUsInstitutions / PSUs

b)b) Large CorporatesLarge Corporates

c)c) Infrastructure SectorsInfrastructure Sectors

d)d) Other Potential Sectors such as Other Potential Sectors such as Automobiles, Steel, Cement etc.Automobiles, Steel, Cement etc.

Continued Focus on Retail lending Continued Focus on Retail lending & SME Segments& SME Segments

Accelerated Credit Growth- Accelerated Credit Growth- Corporate InitiativesCorporate InitiativesMIBOR/EURIBOR/CP linked productsMIBOR/EURIBOR/CP linked products

Pricing of LIBOR linked loan products at Market related ratesPricing of LIBOR linked loan products at Market related rates

Full power to branch for LC bill discounting Inland/Import at Full power to branch for LC bill discounting Inland/Import at market related ratesmarket related rates

Delegation to second line officers at BranchesDelegation to second line officers at Branches

In -Principle clearance for Credit Proposals within 7 days In -Principle clearance for Credit Proposals within 7 days

Personal Loan- All Deviations ( Pricing Upto 0.50%) to Z.OPersonal Loan- All Deviations ( Pricing Upto 0.50%) to Z.O

Availability of Legal services for documentationAvailability of Legal services for documentation

Out sourcing due diligence/Collection of EMI Cheques for Out sourcing due diligence/Collection of EMI Cheques for Personal segment loansPersonal segment loans

Simplification of Appraisal Notes / DocumentationSimplification of Appraisal Notes / Documentation

RESOURCE RESOURCE MOBILISATIONMOBILISATION

PROJECTIONSPROJECTIONS

Centenary Centenary VisionVision

March 2006March 2006 4500045000

Growth PlanGrowth Plan90 days90 days March 05March 05

2550025500 3500035000

(Rs. in crore)(Rs. in crore)

Action PointsAction Points

Current Accounts:Current Accounts: Corpclassic facility to select clientsCorpclassic facility to select clients Full authority to BMs to extend service Full authority to BMs to extend service

charge concessioncharge concession Cash pick up facility to High Value A/csCash pick up facility to High Value A/cs CAPs clients to be targeted CAPs clients to be targeted Leveraging LIC/NIA MOULeveraging LIC/NIA MOU Dealers Net work Account to be garneredDealers Net work Account to be garnered Liasoning with RBI for shifting Govt Liasoning with RBI for shifting Govt

AccountsAccounts..

Savings BankSavings Bank Clientele expansion by mass contacts – salary Clientele expansion by mass contacts – salary

accounts under Corp Pay Rollaccounts under Corp Pay Roll Revival of dormant accountsRevival of dormant accounts Conducting camps at ATM locationsConducting camps at ATM locations Opening NRI cells at key branches – offering Opening NRI cells at key branches – offering

0.50% rebate on Corp Vidya & Home loans to NRIs0.50% rebate on Corp Vidya & Home loans to NRIs Wealth Management Services – to NRIs and High Wealth Management Services – to NRIs and High

Networth clientsNetworth clients Cross border remittancesCross border remittances Canvass LIC policy holders’ accounts through LIC Canvass LIC policy holders’ accounts through LIC

AgentsAgents New Delivery channels and services - Debit Card, New Delivery channels and services - Debit Card,

Any Time premium payment through ATMs shall Any Time premium payment through ATMs shall be exploitedbe exploited

Other Strategies Other Strategies Open new branches at all potential centresOpen new branches at all potential centres Upgrade potential ECs to branchesUpgrade potential ECs to branches Outsourcing for account opening, clearing, Outsourcing for account opening, clearing,

cash pick up & remittancescash pick up & remittances Opening of representative offices in Middle Opening of representative offices in Middle

EastEast Tie-up with more number of exchange houses Tie-up with more number of exchange houses

and correspondent banksand correspondent banks Dedicated desk for Govt. business at key Dedicated desk for Govt. business at key

branchesbranches Setting up call centres at select cities Setting up call centres at select cities Our strong branch network should be offered Our strong branch network should be offered

to other banks under tie-up (A CAPS project)to other banks under tie-up (A CAPS project) Technology up gradation – IBAS, DB packageTechnology up gradation – IBAS, DB package

HRD HRD INITIATIVESINITIATIVES

HRD InitiativesHRD Initiatives Rationalisation of Manpower – From Surplus to Rationalisation of Manpower – From Surplus to

Needy PocketsNeedy Pockets Placement – Right Persons for Right Jobs - Placement – Right Persons for Right Jobs -

more so for key branches/positionsmore so for key branches/positions Placement of Branch / Zonal Heads on higher Placement of Branch / Zonal Heads on higher

pedestral – to make these positions attractivepedestral – to make these positions attractive Role Clarity - at all levelsRole Clarity - at all levels Identification, Grooming and Career Identification, Grooming and Career

Development of Specialist OfficersDevelopment of Specialist Officers Knowledge Management – Attain and Retain Knowledge Management – Attain and Retain

talentstalents Performance cum Productivity linked incentives Performance cum Productivity linked incentives

– Special Recognition for milestone achievers– Special Recognition for milestone achievers Annual Leave Plan by Employees / Officers – Annual Leave Plan by Employees / Officers –

Leave ManagementLeave Management VRS / Sabbatical LeaveVRS / Sabbatical Leave

HRD initiativesHRD initiatives Promotion of Special Assistants and Senior Clerks to Promotion of Special Assistants and Senior Clerks to

Officer’s Cadre.Officer’s Cadre. Improve Age Profile by direct recruitmentImprove Age Profile by direct recruitment Fast track promotion at all levelsFast track promotion at all levels Outsourcing - Premises Maintenance, Clearing Outsourcing - Premises Maintenance, Clearing

related activities, Cash Pick Up.related activities, Cash Pick Up. Periodical Interface with Second Line Officers- Zonal Periodical Interface with Second Line Officers- Zonal

level on Role Claritylevel on Role Clarity Products and Services Orientation for front-line staff Products and Services Orientation for front-line staff

– Re-orientation in training curriculum– Re-orientation in training curriculum Timely availability of Law Officer’s Services to Credit Timely availability of Law Officer’s Services to Credit

oriented Branchesoriented Branches Dress Code in Metros to start withDress Code in Metros to start with Due consideration of Branch Manager’s Due consideration of Branch Manager’s

recommendation in Staff Placementrecommendation in Staff Placement Define and strengthen Man Power Structure of Key Define and strengthen Man Power Structure of Key

BranchesBranches Best practices prevailing in the industry to be Best practices prevailing in the industry to be

introducedintroduced

Personal Agenda Personal Agenda

Share your DreamShare your Dream Keep the excitement goingKeep the excitement going Multiply leadersMultiply leaders Delegate & EmpowerDelegate & Empower Constant Co-ordination with Peers – Constant Co-ordination with Peers –

in the Region & Outsidein the Region & Outside Create your own Brand – Others to Create your own Brand – Others to

Associate/EmulateAssociate/Emulate

ConclusionConclusion Change or transformation is inevitable for Change or transformation is inevitable for

OrganisationOrganisation We need to create requisite capabilities to We need to create requisite capabilities to

implement changeimplement change Our ability to take risks will determine the Our ability to take risks will determine the

future of the Bank as well as our ownfuture of the Bank as well as our own Leadership is highly demanding and once we Leadership is highly demanding and once we

move step by step and enjoy the journey move step by step and enjoy the journey towards achieving goals, it is easier to towards achieving goals, it is easier to accomplish the taskaccomplish the task

We need to start a new movement – a We need to start a new movement – a movement which brings revolutionary change movement which brings revolutionary change in our attitude and in our performancein our attitude and in our performance

ConclusionConclusion

Today is the first day for the rest of Today is the first day for the rest of our life. our life.

If not we – Who?If not we – Who? If not now- When?If not now- When?