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ICICI CASE

Raji Shankar Sajna Sheeba Sowmya Andrea

The management of changes to the organizational culture, business processes, physical environment, job design / responsibilities, staff skills / knowledge and policies / procedures.

Organizations go through four stages on the way to achieving their strategic objective:
- Denial - Resistance - Exploration - Renewal As the Organization works its way through these stages, there can be a negative impact on Productivity. This is referred to as the Productivity Dip

Organizational Change Management is all of the actions required for an organization to understand, prepare for, implement and take full advantage of significant change. The goals of Change Management are:

- The successful design, implementation, measurement and maintenance of an organizations change initiative - Enhancement of their on-going capacity for managing change

Managing Complex Change Force Field Analysis Consensus Building

Vision Strategic Planning Skills Incentives Resources Action Plan

Management of COMPLEX CHANGE


VISION

+
+ + + + +

SKILLS

+
+ +

INCENTIVES

+
+ + +

RESOURCES

+
+

ACTION PLAN
ACTION PLAN ACTION PLAN ACTION PLAN

=CHANGE

SKILLS

INCENTIVES

RESOURCES

=CONFUSION

VISION

INCENTIVES

RESOURCES

=ANXIETY

VISION

SKILLS

+ + +
INCENTIVES

RESOURCES

+ +

=GRADUAL

CHANGE
VISION SKILLS

+ +
RESOURCES

ACTION PLAN

=FRUSTRA-

TION
VISION SKILLS INCENTIVES =FALSE

STARTS

Desired Change Driving Forces Favoring Change Restraining Forces Resisting Change Equilibrium or Current Status

Technology

Globalization

Liberalization

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ICICI has built its - Strong brand identity - Technology enabled delivery channels
- Largest network of ATMs in India - Highest number of Internet banking registrations

- Large product suite


- Largest auto financier - Largest incremental issuer of cards

(Credit cards, debit cards and ATM cards)

- Amongst the first banks in India to commence lead generation for Insurance products

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EXTERNAL

TECHNOLOGY GOVERNMENT SOCIETY

INTERNAL

CULTURE EMPLOYEES BEHAVIOR PERFORMANCE APPRAISAL DIFFERENCE - EMPLOYEES OF BOM & ICICI

certainty purpose connection control success By harnessing the 5 Forces of Change one can become those rare leaders who are able to bring about lasting organisational change with a minimum of fuss.

Complaints against these changes continued ICICI was blamed for not putting in adequate systems in place to develop the right people. Question on the feedback process though the appraisal scores were the same, the bonus were different Training programmes were conducted Introduction of two-year Graduates' Management Training Programs (GMTP)

deregulation to get finance from abroad government stopped giving subsidies limited expertise companys ignorance change resistance in the organisation creation of new groups discretion between MCG and GCG pressure of accountability created stress compensation schemes differences in work culture emphasis more on group performance

contract basis tenure- based compensation

The merger with Bank of Madura paved way for - ICICI becoming one of the largest private sector banks in India with Rs.17327crores - it has the largest customer base of over 3 million and a network of more than 350 branches and 450 ATM centres across 100 Indian cities - considerable synergies in the operations of the merged entity - benefit the customers and other stake-holders

Vast talent pool Large capital base

Technology -enabled distribution architecture

Complete product suite

Low operating costs Extensive customer relationships & strong brand franchise

PERIOD
Day 1 After a month After a Year After 2 Years

EMPLOYEE BEHAVIOR
Denial, fear, no improvement Sadness, slight improvement Acceptance, significant improvement Relief, liking, enjoyment, business development activities

Job evaluation - grading system Employee empowerment in the organisation Management by objectives Contingency employees Vision statement to be clearly stated to the employees Risk management dealing with uncertainty Building a strong and committed top management team Training & development