Case Study to Map the Competencies

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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