Page 4 SEED-\"078 develop a strong performance management plan. a leadership development plan, and a succession plan. Additionally, in an era guided by digital innovations, the company was burdened with poor technology. which limited the productivity ofboth employees and the branches. The company's NPAs were higher than the industry average, and observers perceived PNB as a laid-back organization with minimal commitment to customer service and poor ofce infrastructure. The online platform did not provide direct customer interface, and it was a poor system for customer feedback. TRANSFORMATION PROCESS: THE GAME-CHANGING PLAN The rst step in the metamorphosis was introducing a business reengineering process through a strong transformation planProject Kshitiy. This plan included revamping business processes by creating and implementing a strong and scalable target operating model (TOM), organizational restructunng, brand repositioning. and a new service delivery model, along with upgraded information technolog, an existing cadre of capability building. and policy review. It thenbecame important to make employees aware of Project Kshitijr'r and the forthcoming transformation. A team of 31 ofcers was appointed to explain Project Kshitiy to everyone in the organization. All employees were sent to an assessment centre for competency mapping on van'ous parameters, including the aspiration parameter, a measure ofwhat the employees expected from the organization. Assessed on a 05 scale, a majority ofemployees scored less than 2 on most parameters. The one exception was the aspiration parameter. which revealed that every one wanted a better working environmenr, a higher salary, improved infrastructure, and a gowing organization These results provided a ray ofhope for senior management. and they sold employees a dreamin the formofa v-e -year business planProjecthhitiy. The MITs appeal to employees was, "Consider PNE- as your family. your company, your initiatives. \" However. the major challenge was addressing employee issues. One challenge was the integration oflong- time employees and new hires in a new culture A few employees wanted no change. and they created roadblocks. These employees were identied, and the most stubborn ve were appointed as Change Champions" andaskedto leadthe change process. It was also decided that ifthe company'sleadership showed resistance. the top leader needed to be removed, and the next in line would be given the opportunity to lead. The company provided functional training for role alignment, adapting to new processes and policies, and skill enhancement. Sales personnel were appointed as branch heads because of their better understanding of local markets. Cross-flmctional and cross-location collaborations were established by forming a committee of 15 people that included functional and zonal heads. A hub-and-spoke model strengthened the organization's internal networking, and in doing so. reinforced the entire change process. Operationalizing tlie Target Operating Model: Hub and Spoke The target operating model was launched with a focus on iniprotn'ng productivity, efciency, and quality by strengthng the organization's people. processes. and technolog' using a hub-andspolre model. Each spoke or branch acted as the primary point of sale. imder'talcing loan origination, collection, deposit sourcing. and customer service. The hubs provided support functions such as loan processing. credit appraisal. and monitoiing. It was challenging for PN'B to bnng together all of its branches and zonal ofces imder centralized control. The centralized operating model aimed for optimum utilization of resources. SOPs, and a scalable and .1... l'4-|.-,._E.-_;-. -,- _-;. :_-. :. H ,v- '-'-n|-1 | an: |:r| |-'| le r. Page 1' BBZDMEITS In different branches across the cormtry, top management conducted town hall meetings. where semor executives met employees at all levels to hear their opinions about the transformation and the challenges presented by that process. During these meetings, senior executives sought to communicate the company's organizational values and the need for change to achieve those values. PNB introduced a Skypebased communication channel called Sampark, which the human resources department used to connect with employees. rising a \"one branch per week" approach to communicate change initiatives and to share concerns. An online portal called MDis Postwas larmchedto enable whistle- blowers [i.e.. those who drew attention to questionable activities) to write directly to the MD about their queries and concerns. Io institutionalize the new culture, PNB management conducted workshops on the company's mission, vision. and value. and required all employees across all gades to participate. The primary focus ofthese workshops was to educate employees about how PNB was building a \"valuebased organization.\"ts Implementing Employee-Oriented PerformanceDriven Practices In seeking to develop fair employment practices. PN'B made radical changes to existing policies, and introduced a formal performance management system to promote a performance-driven culture. This new system helped to provide transparency and to empower and motivate employees by sharing the same feedback from bottom to top. Surveys {e.g., Great Place to Work) not only highlighted areas ofimprovement but also enhanced employee trust and the credibility of new management practices. The company also introduced a well-balanced compensation structure that included xed and variable pay in an attempt to promote a culture of'perf'ormance and excellence; regulated the pay scales to maintain internal parity across the gades: and launched reward and recognition progranis to motivate desired behavioural changes. PNB management used developmentcentres to identify employees' core competencies, skills, andattihides, and then leveraged employees: aspirations. which appeared positive. to pursue optimal role t. Upslcilling and cross-mctional training programs helped to foster a culture of learning and to address technical and mctional gaps, leading to enhanced business results. A series ofleadership talks by change management experts and spiritual leaders boosted employee morale, and periodic team building exercises promoted group cohesiveness. The company rewarded good behaviours and asked top performers to share their learning and achievement stories and to motivate others. A united team approach developed throughout the organization: as a senior HR executive noted "We conduct a single morning prayer every morning across all our branches to reect our unity as one organization." Enhancing Customer Value by Leveraging Social Media and Technology.I Platforms Dining the transformation process, the introduction ofonline nancial management facilities signicantly increased the customer base, and many existing customers preferred to engage directly with PN'B through this online interface. To meet the needs of new customers, PNB implemented email campaigns and established an online network ofloan aggregators, which generated strongenquiry volume andbrand recall. PNB:s many social media marketing initiatives included online paid advertisements to reach prospective customers who were searching for information on home loans or were considering taking a home loan. Initiatives were also implemented to enhance access across mobile devices. using mobile-optimized online ' Sujaya Bane-rice, Switch: HM #2 Indian Compam Manage-d Change Successfully [New Delhi: Bloomsbury Publishing India. 2014]. ..\\..... n4-I-'r_=-'.-" -'=' =-'" =-