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Achieving Excellence through Transformation

Everything you wanted to know about

Business Process Re-engineering (BPR)

BRANCH REDESIGN

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.

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BRANCH REDESIGN AIMS AT PROVIDING MULTIPLE BENEFITS TO BOTH THE CUSTOMERS AS WELL AS THE STAFF

Benefits to the bank

Multiskilling of people to remove slack and balance work load in branch

Increase in customer area

Branch able to operate normally despite occasional shortage due to leave etc.

Grahak Mitra to help customer navigate a branch

Exclusive time budgeted in sales roles to do proactive selling

Single touch point for sales and service transactions

Clarity in roles Reduction in wait time for customer in the branch from an average of ~15 mins to ~6 mins

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

Branch focused on sales

and service

Benefits to the customer

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

•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 customer

Three key principles have been used in redesigning branches, the first is clear communication of the role with minimal variation as detailed below:

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

•Branch Manager to build relationships with top customers 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 marketing

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

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

•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 being

Third principle used in redesigning branches is non customer-facing activities migrated out of the branches as detailed below:

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Key changes

• Enhanced sales focus 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

A Core SSB will offer superior customer service & focus more on sales.

Entrance

247 Self Service Lobby

VBO

Strong Room

Cafeteria

Lockers

VBO VBO

VBO

Non Banking Hall

How a Core Sales and Service branch is better than our earlier branch?

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An illustrative layout of Banking Hall

An illustrative layout of Core SSB will be like this:

Drop Box

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How the current roles will change to end-state roles?

*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

Core SSB

• Future roles assume transfer of all operations (activities not classified as 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

Current roles Future roles*

Branch ManagerBranch Manager

Passing officer

Accountant

Cash officer

Admin. clerks

Product clerks e.g., TDR, PPF

Manager/Field Officer(PB,SIB etc.)

Service Manager

SWO

Customer Relations Officer

Grahak Mitra

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• 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)

The Administrative Unit at the Zonal Office will pick up all activities relating to staff and service providersActivities to be picked up by Admin unit

Can happen provided

AGM Operations

in place

Will movepost

implementation of HRMS*

system

• Service-tax calculation for payments to service providers

• Lease payment for branch premises and officer(s)’ accommodation(s)

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

Core SSB

* Another project initiated by Bank

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The reporting structure will be as under:

DGM (ZO)

AGM Region

Core SSB BM

CROsServiceManager

SWOsCaseManagers

GrahakMitra

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What is the reporting structure of Core SSB?

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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

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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.

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What category of customers will be classified as affluent?

Customer Segments Definition

Annual income (Rs p.a.)

Super affluent >50 lacs

Affluent 12-50 lacs

Mass Affluent 2-12 lacs

Mass 0.7-2 lacs

Lower Mass < 0.7 lacs

The classification is as under:

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An illustrative layout is shown below. It is similar to Core SSB with addition of an area specifically provided for Affluent Module.

Phone banking

ATM ATM

Customer Relations

Officer

Customer Relations

Officer

Customer Relations

Officer

Product brochures

Waiting area

Waiting area

Retail queues

SWOs SWOs SWOs SWOs

Branch Manager

Internet Banking

Grahak Mitra

Signages

Service Manager

RM (PB)

RM (PB) support

Entrance

247 Alternate Channels Area

Strong Room

Pantry

Lockers

VBO VBO

VBOVBO

Affluent Module

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What will be the layout of a Core SSB with Affluent Module?

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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:

Key features of the Affluent Module

• Selection: Affluent modules to be located in branches which have ~200 customers meeting 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+Investments)>=2 Lakhs and Annual Income>=2 Lakhs

• Role Holders: The role holders in the Affluent Module are:-– Relationship Manager-Personal Banking– RM(PB) Support- to assist the RM(PB) in customer service to the target customers in

the branch and acquisition of new customers. At any point of time either the RM(PB) or his support should be present in the branch to service customers. The RM (PB) will report to the Branch Manager and the support person will report to RM (PB)

RM(PB)Manager (PB)

Field Officer (PB)

Current roles Future roles

RM (PB) support (award staff)

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

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Mass Affluent Module

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May I know more about Core SSB with SME module?This branch has all the capabilities of a Core SSB with the usual functionalities along with additional module to service SMEs (Small and Medium enterprises -defined below). The module will basically perform the sales and service functions in respect of the SME customers. Depending on the potential of the area, the module will be attached to a suitable branch. The Medium Enterprises (ME) will be served through relationship banking model by a team comprising Relationship Manager (ME) and Credit Support Officer (CSO). The Relationship Manager for Medium Enterprises (RMME) will provide personalized services to the ME customers. He will also acquire new customers. The Small Enterprises will be served by dedicated Customer Relation Officer (CRO). The module will have a dedicated service platform for the SMEs comprising of separate Credit Support Officer (CSO) as well as SME Service Desk (SWO) and Bulk Cashier. Depending on the volume of trade finance as well as the cash management products, Trade Finance front desk can also be added in the module, if there are large number of SME customers.SME has two components i.e. Small Enterprise (SE) & Medium Enterprise (ME) which are business units defined on the basis of their turnover. Annual Turnover Small Enterprises : up to Rs.5 croreMedium Enterprises: > Rs.5 cr. <= Rs.50 cr. (subject to maximum WC facility <10 crores & TL facility <10 crores)

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An illustrative layout is shown below. It is similar to Core SSB with addition of an area specifically provided for SME Module.

Phone banking

ATM ATM

Customer Relation Officer

Customer Relation Officer

Customer Relation Officer

Product brochures

Waiting area

Waiting area

Retail queues

SWOs SWOs SWOs SWOs

Branch Manager

Internet Banking

Grahak Mitra

Signages

Service Manager

CSO

SME service Desk

RM (ME)

Trade Finance Front desk

SME Module

247 Alternate Channels Area

Strong Room

Pantry

Lockers

VBO VBO

VBOVBO

What will be the layout of Core SSB with SME module

SME Module

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Drop Box

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Core SSB with SME module will have role-holders and layout suited to serve SME customers

Key features of the SME module

• Selection: SME Modules will be positioned in branches typically located in industrial areas with a minimum of 30 ME accounts or where significant potential for building SME business has been identified

• Role Holders: The SME module consists of the– Medium Enterprises-Relationship Manager– Credit Support Officer– SME Service Desk – CRO-SE customers– Additionally Trade Finance Desk and CMP Cell can be added depending on viability

• Physical layout: SME Module should be separated from the Core SSB in the physical layout

Current roles Future roles

Bulk Teller

RM-ME

CSO

SME Service Desk

Manager (SIB)

Field Officer (SIB)

Product Clerks e.g., IBD, SME

CRO-SE Customers

What are the key features of SME module and who are the role holders?

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SME Module

Reports to Branch Manager/AGM Region. RMME CRO-SE BM

In sales hub model

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What modifications are done in the Branch layout before redesign?Guidelines for layout redesign

• Existing furniture to be used in layout, to the maximum possible extent

• Exact layout would depend on actual condition

• Create adequate customer space (60-70% of banking hall) by clearing all furniture/desks not related to redesigned branch roles and move SW counters back

• Create a self-service lobby (subject to availability of space and analyzing the security aspect) to contain an ATM, information kiosk, internet banking kiosk, drop box, a telephone (for tele-banking) and product brochures etc. It will be open 24 hours on all days of the week.

• Locate the virtual back office out of sight of the main banking hall (e.g. another floor if available or rear of banking hall with temporary partition)

• Token system/Queue Managers will be implemented for SWO counters depending on the number of counters

• Create separate Sales & Service area in the branch, with waiting area for CRO customers and provide token system in case the number of CROs is greater than 4

• Set up Grahak Mitra desk prominently at entrance to banking hall

• Place product literature prominently in well designed racks

• Introduce clear in-branch signage for all new roles

• To use existing furniture/ fixtures to the maximum extent to avoid extra expenditure

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What are the requirements for area away from banking hall?

• Strong Room/ Safe

• Server/ IT room

• Existing Lockers

• Small despatch/ dak area

• Provision for virtual back office staff

• Small Stationary Storage (All redundant stationery to be removed from the branch)

• Small Record Storage (Most documents will be stored at CPC/ Document Archival Center)

• Amenities – e.g., Pantry, Toilet, etc.

Core SSB will NOT have:

• Large document/ stationary storage facility

• Large Pantry (few staff)

• Large back office

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Following infrastructure is necessary for non-banking hall of branch

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What are the roles of various functionaries in a Redesigned branch?Let us talk about the roles of various functionaries one by one, starting with the Branch Manager:The BM will have to perform various roles relating to the sales, service, administrative and staff development, which are detailed in subsequent pages:Sales Related:

Spend ~ 60% of his time in acquiring valuable customers and up-selling/cross-selling to top customers of the branch

Monitor sales performance of the branch, specifically CROs and formulate strategies to achieve budgets

Implement sales strategies in consultation with the AGM (Region)/ Controller for overall business development

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Other roles of the Branch Manager: Service related:

Evaluate the performance of the Service Manager, SWOs and Grahak Mitra on agreed turn-around time/service quality and ensure that customer service levels are maintained in the branch

Intervene to rectify customer grievances, if anyAdministrative:

Ensure timely reporting of important business and operational matters to the Controllers of the Branch and to initiate appropriate corrective measures, well in timeStaff Development:

Developing staff to help them perform their roles effectively Recommending staff for training, based on their

development needsBranch Manager need not be diverted to:

Solving routine service grievances Operational activities like Clearing, Government transactions

etc. Day to day floor management Vendor management

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Role of the Service Manager: Floor Management:

Allocation of staff duties to ensure that branch operates normally despite leave

Allocating work to SWOs to be done in non peak hoursService Delivery:

Complete responsibility for maintaining desired customer service levels in the branch (for e.g., transaction time, waiting time for customers etc.)

Authorizing transactions beyond the power of Single Window Operators

Handle customer grievances on service which cannot be solved by Single Window Operators/ Grahak MitraVendor Management:

Ensure proper upkeep of branch premises Manage vendors and suppliers of the branch to ensure

that there are no disruptions in branch work

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Other Roles of the Service Manager: Administrative:

Joint custodian of vault and ATM Ensure that staff administrative matters

including leave records and staff records are in order

Follow-up to ensure that all pending work in the Branch like IOA memos, un-reconciled GLIF entries are completed promptly

Service Manager is not to be involved in Activities like Government, Clearing Back-office related activities like salary

management, lease payments etc.

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Role of Customer Relations Officer:Sales related:

Owns about 50 valuable customers who have been allotted to him by the BM and be responsible for ensuring additional business from these customers

Expected to cross-sell to all walk-in customers of the Branch, but needs to spend at least 20% of his time in proactive cross-selling products to the top customers

Ability to sell all type of products e.g., liability a/cs (SB/CA/ TDR /RD/ STDR), Asset a/cs (Personal/ Housing/ Car/ Education loans), Government a/cs (PPF/Senior Citizen/ Pension], Forex and Demat products Service related:

Handle transactions where there is a significant interaction and an opportunity to cross sell to the customer [e.g. account opening and closure for Liability a/cs (SB/ CA/ TDR/ RD/ STDR), Asset a/cs (Personal/ Housing/ Car/ Education loans), Government a/cs (PPF/Senior Citizen/Pension], Forex a/cs (FCNB/ FCNR/ NRE/ NRO) and Demat a/cs

Handling deceased a/c cases Providing locker access to customers (if Spl Asstt.)

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Role of Single Window Operator:His/her role moves from a single transaction operator to a true single window operator. His/her main role is service related. Expected to extend ‘service with a smile’ to the customers, and helping them in completing formalities, wherever they require assistance

Handle all transactions where service efficiency is of prime importance (e.g., cash receipt and deposit, pass book update, Draft/BC issuance, Government Challans, accepting ATM card requests). Single touch-point for customers for transaction related needs. (The SWOs are relieved from work relating to opening and closing of STDR/TDR/PPF/ Senior Citizen and liability a/cs)

Ensure that customer grievances on service are resolved to theirr satisfaction

To forward leads to CROs where-ever a potential to cross-sell a product to the customer exists

Grahak Mitra will support the single window operators by managing queues, provide forms/ vouchers to customers and help customers with use of alternate channels SWOs can be added for short periods during rush hours & then sent back to their desks.

Yes, it’s true. We are confident that after redesigning,

the branches will provide excellent customer service and

focus on sales resulting in increase in market share.

Wow! It sounds great. After redesigning, the branches

will really be sale and service platforms resulting in desired

growth in business.

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BPR Team

Compiled by ARUN KUMAR

PARMAR