Case Study to Map the Competencies


By

Dr. Kavita Shanmughan
OD-Facilitator
Centre For Excellence in Organizations Pvt. Ltd. (CEO)
Shanmughananda Bhavan
Mulluvila, Vadakkevila PO, Kollam-10

Sumir Jeet Narayan
HR Executive
Placement Place
 


The forces of change shaping the banking and financial system worldwide are fundamental and constant. The intense competitive pressure on the financial system has generated a variety of products and services to meet the specialized needs of millions of customers. The impact of these changes has challenged the banking sector to be more and more innovative in its services meeting standards.

It is not always the product that can make a difference for the organization but what matters high in the eyes of the customer is how well their needs are being addressed by the employees.  Even one can find the cultural diversity, vast geographical spread and federal character of the country contributes in the complexity of the banks' operations.

Muthuswamy, the CEO of Mayura Bank, has lot of dreams for the organization to grow and prosper.  Studying the mean statistics figure stated in business week, he looked little worried about the banks image on customers.  Mayura bank has been established in the year 1999.  In its seven years of service it has persuade to provide better service to its customers but unfortunately they had higher percentage of risk customers. Recently the bank has extended its certain services based on technologies like E-Banking, ATM center, Phone Banking services and dropping of the cheques and drafts at the ATM's as well to the remote areas.  

He has called for a meeting with the heads and also to discuss about the strategy to improve the business.  He is also aware that the synchronization among the heads is also not good enough and he has to be careful that they speak united for the improvement of the business.

The CEO feels that as more sophisticated products make their way into the market, customers feel trapped and may find easier exit routes.  And this in turn has lead to substantial churn in the assets of our bank.  He was of the opinion that the services having a direct impact on the customers have to be given the utmost importance. He was aware that there are instances where the customers were kept a long wait due to lack of proper training to the new employees on the usage of technology. 

It was a surprise for him that they have lost most of the customer due to employee behaviour.  He feels that the services or the facilities rendered are competitive and infavour of the customers whether it being a business transaction or individual transaction but it is not well expressed to the customers.   Opening of new branch was much thought as part of the initial plan by the seventh year of the establishment but it seems to be a distant dream due to the ongoing issues.

Loosing of the prospective clients was another major concern for which he would like a team to be formed who would approach these clients and would update our latest services.  Since the customers are in close touch with the Sales & Marketing department, the initiation should come from this department and it has to be done without any delay. 

Mean statistics of Attitudes and Perception across banks

Variables

Industry Average

HDBC

SMBI

IBI

HMBC

Mayura Bank

Quality of Services

56

57

56

60

59

56

Value

51

54

57

48

52

54

Service Charges

86

80

94

88

89

86

Customer Oriented

           

Fairness in Dealing

81

68

87

81

80

78

Cares about its customer

81

79

88

81

80

76

Recognize you as an individual customer

72

74

74

72

73

69

Highly Service Oriented Staff

78

79

79

76

77

65

Trust

           

Consistently delivers

78

75

82

80

71

74

Reliable

85

80

89

83

84

79


VP-Operations puts his concern that the employees are not much committed towards the work as the number of customers has drastically been reduced. Their inactiveness has led to frustration resulting in their behaviour towards the customers. Hence the percentage of high risk customers is at (25%) which when compared to other bank is at the higher end. 

VP-HR:  He states that the alarming concern is the efficient employees leaving the organization as they feel insecure for their position. Rather than looking the external factor it is advisable to focus on internal issues too. Moreover there is also certain employee conflicts seen and they are moving forward to form unions.  Unions are not a favourable concept in our environment as we are the growing bank and unionized activity to an extent hamper our performance.

VP-Sales & Marketing:  He feels that most of his sales executives though well qualified are not able to get the customers. They feel that they are not respected by the customers because of poor image among the customers and they have shown the reluctance to meet the customers directly. Services has to be much more better for the customers having savings bank account especially in our country where the working employees are higher than the entrepreneurs.  Unfortunately we still are more dependent on the business transactions.

Variables

Industry

HDBC

SMBI

IBI

HMBC

Mayura Bank

Account Opening Process

67

74

66

69

67

45

Branch Visit Experience

63

70

60

68

61

55

ATM Centres

72

75

73

72

69

35

Customer Care/call centre

59

60

89

54

50

63

Phone banking

59

50

63

67

50

40

Net banking

58

63

62

58

70

50

Additional facilities

49

51

57

54

52

45

Advertisements and Communication

51

54

59

64

51

45


VP-Finance: Last year the profit we got from business transaction was Rs. 65 crores which has gone drastically to 43.5 crores.  But when compared to other types of transaction, business transaction has done well.This was basically due to the poor performance in sitapur area which is the industrial place and we had our potential customer switch over to our arch rivals.  The only reason that was stated was the lack of updates of the services and how they can be placed in better position. 

The phone rings and there is a message that the customers have become violent because of the rumor that the bank has been liquidated.  Many of the employees in the mithapur branch has been hurt and are taken to the hospital.  The situation is out of control.

The meeting without any consensus is called off.

If you are CEO, How would you solve the issues?

Competencies looked through the case are:

1. Thinking Skills
2. Analytical Skills
3. Innovation
4. Customer Service Oriented
5. Result Orientation
 


Dr. Kavita Shanmughan
OD-Facilitator
Centre For Excellence in Organizations Pvt. Ltd. (CEO)
Shanmughananda Bhavan
Mulluvila, Vadakkevila PO, Kollam-10

Sumir Jeet Narayan
HR Executive
Placement Place
 

Source: E-mail May 2, 2007

 

      

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