From : E-Group, STC, Salt Lake, Kolkata This message is intended only for the use of the Addressee and may contain information that is PRIVILEGED and CONFIDENTIAL. If you are not the intended recipient, dissemination of this communication is prohibited. If you have received this communication in error, please erase all copies of the message and its attachments and kindly arrange to notify stcsaltlake@xxxxxxxx immediately. Using Internet Explorer in ATM PC of your branch, please browse http://10.128.74.200 (our Intranet Web-Site). We have provided lots of Reading Materials for you at the site. Happy browsing! Dear Member, Kindly double click on the enclosed attachment to read it. With regards, Anup Sen, Moderator E-Group, STC, Salt Lake, Kolkata email : stcsaltlake@xxxxxxxx We shall be glad to receive your feedbacks through emails regarding the mails being sent to you through this e-group.Title: State Bank of India, Staff Training Centre, Salt Lake, Kolkata. : : stcsaltlake@xxxxxxxx : :
|
Inspite of SBI's dominant position in
the Indian Banking scenario, globalisation and deregulation in the banking
industry have led to severe competition. Further in the backdrop of changing
tools of business and growing customer expectations, only those organisations
will remain ahead in business that meet international standards in every
respect. In the aforesaid background, a BPR team has been constituted at the
Corporate Centre for Business Process Reengineering with McKinsey & Company
as consultants. The objectives for the Project include increasing customer
satisfaction and convenience, freeing up time for Branch Manager and Branch
Staff to focus on sales and marketing and simplifying process for employees. To
meet these objectives, new processes and supporting organisational structures
are being defined. It will lead to major changes. The basic goal of the BPR Project is to
create an operating architecture that allows us to deliver world-class services
in the face of severe competition. Various aspects of the Project can be
summarised under the following seven heads: Branch Redesign: The objective is to redesign our
branches to be leaner and sales and marketing focussed units. This can be
achieved through migration of back office processing to Centralised Processing
Centres and moving common transactions/enquiries to alternate! Channels (ATM,
Call Centres etc.) As a result operating units within a branch will undergo a
change as will the layout of the branches themselves. As SBI caters to a large
spectrum of customer segments, a range of branch types will be designed to
efficiently cater to different segments of customers. Central Processing Centres:
With the back office operations or a
large part thereof moving into CPCs, different CPCs will be designed to
effectively carry out various processes such as processing liability accounts,
trade finance processing etc. The objective of creating a CPC is to increase
process efficiencies, pool skills, reduce transaction costs and improve
turn-around-times. The Project implementation team will decide on the
appropriate level at which the CPCs would be centralised. Alternate Channels: Aggressive introduction of alternate channels will offer a low cost
channel to serve mass market including less profitable customers in a cost effective manner. Besides, in addition
to enabling the Bank to meet the competitive offerings of progressive banks
appealing to the tech-savvy mass-affluent/affluent segments, it will help free
up the time of Branch staff to attend to sales and marketing. Based on the
recommendations of the BPR team, the Bank has already identified and launched
initiatives to improve the working of ATMs and increase the migration of
customers to ATMs. The BPR team will also layout the design of a full-fledged
Call Centre for the Bank and other alternate channels that might be appropriate
for SBI to consider. Database Marketing: In present context, only those will get good business who identify
sales and marketing opportunities and reach out to the customers. To this end a
number of initiatives are proposed. These include segmentation of existing
customers for getting incremental business and cross selling other products,
concept of relationship manager for high value business in personal segments as
well and setting up of call centres and out bound sales force to target new
customers for high value business and identified thrust areas. Large and mid
corporates, Government business and Trade finance customers will have to be
pursued relentlessly on the basis of a structure which will use database
marketing as an effective tool. Database marketing can help us in increasing
revenues from cross-selling, lower cost on customer acquisition and also
increased customer loyalty. Core Process Redesign: In order to support the new
architecture of sales focussed branches, alternate channels and central processing
centres, many core processes will have to be redesigned. In course of this,
efforts will be made to eliminate redundancies and bottlenecks thus improving
the turn around time and reducing transaction cost. Performance Management: Proper performance management will be
the key to any success. The new operating architecture will also create many
new roles and their performance evaluation will be a new area for us. We not
only need to identify specific key performance indicators for various roles but
also create a system for their effective tracking. Organisational re-design: With new operating outfits like CPCs and Call Centres and the focus
on sales and marketing through dedicated sales force, the organisation itself would
require suitable changes. A new concept of Micro Market Manager for 7-10
branches in an identified geographical area for business development is one of
the ideas under examination. The need for a renewed thrust in the mid corporate
segment and re-evaluation of efficacy of the CNW is also under examination. The BPR project began in June 2003 and
is on track progressing well. We expect pilot testing to commence in identified
cities along with the Core Banking solution some time in July 2004 and based on
the above the finalisation of new procedures and structure will be made.
Thereafter preparation for the national roll out will follow. The path of Business Process
Re-engineering is not without challenges. Attitudinal changes, new performance
culture, sales orientation, specialisation, movement of staff, re-skilling and
training and performance tracking are going to be some of the major challenges.
Change management will be critical for success. The success of the project
will be judged by increase in market share and improvement in cost income
ratio. The imperatives for success will include ownership of the Project and
commitment and determination at all levels. The Project is aimed at
significantly enhancing SBI?s competitiveness in the market, increasing our
profitability through higher market share and improved process efficiency and
greater customer satisfaction. It is also aimed at fulfilling our aspiration of
becoming a world class Bank. Shiva Kumar, General Manager &
Project Leader, BPR Team Corporate Centre, Mumbai |
