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Know BPR - 15[1]. Branch Redesign

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Text of Know BPR - 15[1]. Branch Redesign

Achieving Excellence through Transformation

Everything you wanted to know about

Business Process Re-engineering (BPR)BRANCH REDESIGNNext

What is Branch redesign?

After shifting of most of the back office and operational functions of branch to various CPCs and administrative units, it is envisaged that branch will be a leaner outfit handling only sale & service functions. Such branches are called Core Sales and Service Branches (Core SSB) and shall fulfil all banking needs of a customer. There are two other Branch formats Core SSB with Affluent Module and Core SSB with SME Module, the details of which shall be discussed in next slides. The Branch Redesign involves two types of changes in a branch. The first is change in roles of various functionaries of the branch and the second is change in internal layout to facilitate functioning of role holders of a redesigned branch. The Branch Redesign aims at providing multiple benefits to both customers as well as staff. The benefits are shown in next slide in a graphic format. Next

BRANCH REDESIGN AIMS AT PROVIDING MULTIPLE BENEFITS TO BOTH THE CUSTOMERS AS WELL AS THE STAFFBenefits to the bank Benefits to the customer Increase in customer area Grahak Mitra to help customer navigate a branch Single touch point for sales and service transactionsReduction in wait time for customer in the branch from an average of ~15 mins to ~6 mins

Multiskilling of people to remove slack and balance work load in branch Branch able to operate normally despite occasional shortage due to leave etc.

Exclusive time budgeted in sales roles to do proactive selling

Branch focused on sales and service

Clarity in roles Branch Manager freed up to focus on sales with the creation of the Service Manager role

Availability of alternate channels enables customer to perform basic transactions 24*7 Next2

Three key principles have been used in redesigning branches, the first is clear communication of the role with minimal variation as detailed below: Fewer category of role-holders with multi-tasking Single Window Operators (SWOs) to handle all service transactions where transaction time is of prime importance Customer Relation Officers (CROs - a new role created, as detailed in subsequent slides) to handle transactions with significant interaction and opportunity to cross-sell Service Manager (upgraded role of Accountant) in charge of the Service Section of the Branch. Case Managers added if the work of Service Manager exceeds one man-day. Full time Cash officer in currency chest branches. In hand balance branches, role to be played by the Senior SWO Grahak Mitra as first touch point for customerNext3

What are the basic principles used in redesigning the branches? (1/3)

What are the basic principles used in redesigning the branches? (2/3)

The second principle is increased focus on sales as detailed below:

Branch Manager to build relationships with topcustomers of branch and spend around 60% of his time in proactive sales and marketing activities, in addition to acquisition of new valuable customers CROs to spend ~20% of their time in proactive sales and marketingNext4

What are the basic principles used in redesigning the branches? (3/3)

Third principle used in redesigning branches is non customer-facing activities migrated out of the branches as detailed below: Apart from the activities migrated to CPCs the AGM Operations (a new role created in Zonal Office) will pick up administrative activities from branch (e.g., generation of reports, staff service records, leave records), in due course. Activities will be performed by a Virtual Back Office for the time beingNext5

How a Core Sales and Service branch is better than our earlier branch?A Core SSB will offer superior customer service & focus more on sales.An illustrative layout of Core SSB will be like this: Key changes

Enhanced sales focusNon Banking HallCafeteriaVBO VBO

SWO

SWO

Service Manager

SWO

SWO

VBO

VBO

Single queues

Strong Room

Lockers

Grahak Mitra

ATM ATM Internet Banking

Drop BoxCRO CRO CRO Branch Manager

247 Self Service LobbyProduct brochures

Phone banking

Entrance

An illustrative layout of Banking Hall

through Separate area in the branch for sales Proactive sales roles for the Branch Manager and the CROs Superior customer service through Convenience of completing all transactions at one counter Use of a single queue through token system or Queue Manager Assistance available from Grahak Mitra on basic information Larger customer area in banking hall

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6

How the current roles will change to end-state roles?Current roles Branch Manager Accountant Service Manager Future roles* Branch Manager

Core SSB

Passing officerManager/Field Officer (PB,SIB etc.) Cash officer SWO Product clerks e.g., TDR, PPF Admin. clerks Grahak Mitra Customer Relations Officer

Future roles assume transfer of all operations (activities not classifiedas sale & service) and administrative functions out of the branch In the interim, a virtual back-office would be set up outside the main banking area to take care of these functions* In case the workload of the Service Manager exceeds one man-day, additional Case Managers (Special Assistants) will be added; In currency chest branches, there will be an additional role of Cash officer

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Core SSB

The Administrative Unit at the Zonal Office will pick up all activities relating to staff and service providers

Activities to be picked up by Admin unit

Salary payments for staff Deducting LIC premiums Income tax calculation for staff Supervisory Staff Association contributions Award staff Union contributions Preparing Provident Fund statements SBI Pensioners medical bills Staff matters (LFC, training, transfers and service record) Service-tax calculation for payments to service providers Lease payment for branch premises and officer(s)accommodation(s)

Will move post implementation of HRMS* system

* Another project initiated by Bank

Miscellaneous payments for service providers (e.g.,printers, token system, stationery)

Can happen provided AGM Operations in placeNext8

What is the reporting structure of Core SSB? The reporting structure will be as under:DGM (ZO)

AGM Region

Core SSB BM

Service Manager

CROs

SWOs

Case Managers

Grahak MitraNext

9

Can you tell me about Core SSB with Affluent Module?

This branch will have the same format as that of core sales and service branch with addition of an Affluent Module. This module will be required at a branch serving affluent/mass affluent people predominantly. This category of customers prefer relationship based banking. Affluent module Relationship Manager (Personal Banking) (RM-PB) will own 200-300 high value customers of the branch. He will be outbound for about 60% of the time, as he has to meet select top customers/ potential customers at the place of their choice. He will endeavor for up-selling/ cross-selling of retail assets, mutual funds, insurance etc. in his meetings with the customers. For providing services to the visiting high value customers a separate area within the Core SSB will be created, where RM (PB) and one support staff to RM-PB will be serving Next 10

Will there be any difference in products and services offered by Core SSBs? The affluent module will also provide Investment Advisory services and will focus on marketing of products for Assets, Investment, Insurance, Mutual Funds, Credit Cards, Demat accounts etc., besides the usual products of the Bank. Wherever, there is enough potential for NRI business one CRO will be assigned specially for this business with the required support staff. Range of FOREX services available at the module would depend upon authorization level of the branch.Next11

What category of customers will be classified as affluent?The classification is as under:

Customer Segments DefinitionSuper affluent Affluent Mass Affluent Mass

Annual income (Rs p.a.)>50 lacs 12-50 lacs 2-12 lacs 0.7-2 lacs

Lower Mass

< 0.7 lacs

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What will be the layout of a Core SSB with Affluent Module? An illustrative layout is shown below. It is similar to Core SSB with addition of an area specifically provided for Affluent Module.Pantry VBO VBO

Signages

Affluent ModuleSWOs SWOsService Manager Retail queues SWOs

SWOs

VBO

VBO RM (PB)

Strong Room RM (PB) support Waiting area

Lockers

Grahak Mitra ATM ATM Drop Box Internet Banking Waiting area

247 Alternate Channels Area

Customer Relations Officer

Customer Relations Officer

Customer Relations Officer

Branch Manager

Phone banking

Product brochures

Entrance

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RM (PB) (for details please refer module-4) and one SWO as support to RM(PB) shall man affluent module. The key features are given below:Current roles Mass Affluent Module Manager (PB) Field Officer (PB) Future roles RM(PB) RM (PB) support (award staff)

What are the key features of an Affluent Module and who are the role holders?

Key features of the Affluent Module

Selection: Affluent modules to be located in branches which have ~200 customersmeeting the RM (PB) criteria or potential for building RM-PB customer base in the area Value of (Deposits+Investments)>=5 Lakhs Value of Housing Loan >= 10 Lakhs Value of Car Loan>= 5 Lakhs Value of (Deposits+Investme