CHANGE MANAGEMENT

GROUP MEMBERS

Bhushan Yadav

Sony Jaiswal

Sridhar Katkam

Pooja

Akhila

Shruti D

Sadanand
"Change" is:
• to give a different position, course, or
direction to
• to make a shift from one to another
• to undergo a modification of
• to undergo transformation, transition or
substitution
"Manage" is :
• to handle or direct with a degree of skill or
address
• to exercise executive, administrative and
supervisory direction of
 CHANGE MANAGEMENT
• Change Management is a structured process
that will cause proposed changes to be
reviewed for technical and business readiness
in a consistent manner that can be relaxed or
tightened to adjust to business needs and
experiences.
 Challenges of Changes
• Involves new procedures
• Leadership - changing the running of an
organization from a command and control
nature of management to the nurturing and
motivational nature of leadership.
• Focus - making business choices to bring
alignment and focus to the organization.
• Commitment - creating commitment to the
future of the enterprise throughout the
organization.
• Resistance- Resistance is a complex entity that
directly affects the outcomes of change, both
positively and negatively.
FORCES FOR CHANGE
Digital Convergence
 Industrial Credit and
Investment Corporation of
India
 Objectives of ICICI Bank
• assist in creation, expansion and
modernization of enterprises
• encourage and promote the participation of
private capital, both internal and external
• take up the ownership of industrial
investment
• expand the investment markets.
 Major Change

In May 1996, K.V. Kamath replaced

Narayan Vaghul, CEO of India's leading
financial services company ICICI
• Kamath identified the main problem as the
company's ignorance regarding the nuances of
lending practices in newly opened sectors like
infrastructure.

•The change program was initiated within the

organization

•Organization changed - from a development bank1

mode to that of a market-driven financial
conglomerate.
 Organization Divided In Groups

• Infrastructure group (IIG)

• Oil & gas group (O&G)

• Planning and treasury department (PTD)

• Structured products group (SPG)

 Effects of change
• A majority of the work along with a lot of good
talent shifted to the corporate center
• An ex-employee remarked, "The way to get
noticed inside ICICI after 1996 has been to
attach yourself to people who were heading
these departments
• These groups were seen as the thrust areas and
if you worked in the zones it was difficult to be
noticed
 Operations focus on customers

ICICI set up three new departments,

1) Major client group (MCG)

• A staff of about 30-40 people

• Handled top 100 customers of ICICI
2) Growth client group (GCG)

• A staff of about 60 people

• Looked after the needs of mid-size companies

3) Personal finance group

 Result of these changes
• Complaints against these changes put in
continued and ICICI was blamed for not
putting in adequate systems in place to
develop the right people.

• The feedback process - was also questioned

• In many cases the appraisal scores were

same but the bonus amount was not
2.Factors Contributed to
the success of the
changed effort ?
 Imparting New Skills to Existing
Employees
• Training programmes and seminars were
conducted

• Overseas training programmes.

• Introduced a two-year Graduates'

Management Training Programme (GMTP)
ICICI also reviewed the compensation
structure in place.
Two types of remuneration were
considered

• A contract basis which would attract risk-

takers.
• A tenure-based compensation which
would be appealing to employees who
wanted security.
 Results
• By 2000, ICICI had emerged as the second
largest financial institution in India with assets
worth Rs 582 billion.

• The company had eight subsidiaries providing

various financial services.
 In December 2000, ICICI Bank was
merged with Bank of Madura (BoM)

ICICI Bank was nearly three times the size of BoM

Staff Strength: ICICI - 1,400
BOM - 2,500

The working culture at ICICI and BoM were quite

different
 Bank Of Madura ( BOM ) Industrial Credit and
Investment Corporation of
India (ICICI)

management concentrated on management turned all its

the overall profitability of the departments into individual
Bank profit centers and bonus for
employees was given on the
performance of individual
profit center rather than
profits of whole organization
 CHANGE
• The company appointed consultants Hewitt
Associates to help in working out a uniform
compensation and work culture and to take
care of any change management problems.
 'POST-MERGER' EMPLOYEE
BEHAVIORAL PATTERN
PERIOD EMPLOYEE BEHAVIOR

Day 1 Denial, fear, no improvement

After a month Sadness, slight improvement

After a Year Acceptance, significant

improvement
After 2 Years Relief, liking, enjoyment,
business development activities
3. How was resistance to
change in ICICI, and BOM’s
merger with ICICI managed ?
 MANAGING HR DURING THE ICICI-
BoM MERGER
Areas Of HR Integration Focussed On :
• Employee communication
• Cultural integration
• Organization structuring
• Performance management
• Training
• Employee relations
• By June 2001, the process of integration
between ICICI and BoM was started.

• According to a news report, "The win-win

situation created by….HR initiatives have
resulted in high level of morale among all
sections of the employees from the erstwhile
BoM."
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