Cardiff MBA - People and Organization -Change Management - Bank Digitization - Peoples Bank Sri Lanka

1. Group- Achievers
Members
• Sachith Bandaranayake
• Rushanthi Balasuriya
• Nishadi Chandrasena
• Chaminda Pathirana
• Danushka Chathuranga
• Madhawa Wijesinghe
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3. Established in 1961
Second largest commercial bank
Over 16 million customer accounts
900 billion deposits
Over 8300 employees
People’s Bank
(Source : peoples bank, 2015)
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4. People’s Bank – Strategies in 2015
Become a fully digitalized bank
Implementing 2016-2020 strategic plan
Launching green banking concept
Developing the centralized banking system
Upgrading ATM Infrastructure to strengthen its
serviceability
(Source : peoples bank, 2014)
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5. Digitalization
This change will be accompanied by a
communication and branding campaign to reposition
People’s Bank as a technology based financial
services provider.
N. Vasantha Kumar
Chief Executive Officer/General Manager
(Source : peoples bank, 2015)
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6. Rationale for Change
Banking Asset Segmentation
Cost Income Ratio
Revenue per Employee
Fee based Income
(Source : FC Research, Banking Sector Report – 2016)
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7. BECOME A FULLY
DIGITALIZED AND
CENTRALIZED BANK
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8. What is Digitalization?
A process of converting material actions and objects into intangible elements
with the aid of computers
Benefits of Digitalization ?
•Improving the efficiency of the entire system
•Enhancing the brand equity
•Fulfilling the total banking need of customers through an advanced global
technology
•Changing the traditional banking
•Reducing resource consumption
•Maximize the market share
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9. Traditional Banking VS Digital Banking
Traditional Digital
Location of transaction Bank branch Anywhere
Mode of transaction Branch network Customer chooses how
Nature of products Duplicate products Tailor-made
Customer experience Inconsistent Consistent
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10. Strategies for Planned Change
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11. Technological Change
Implementing new techniques
Upgraded ATM infrastructure for enhancing its capacity
Upgraded the internal core banking infrastructure for strengthen its serviceability
Changing the equipments
Introduction of cash deposit machines and kiosk machines
Modification of the communication process
Simplifying the communication process Ex - Intranet and email
Remodel the production method
Introduction of internet banking and mobile banking
Launching e statement account (without passbook)
Implementation of online account opening system
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12. Impact on the Organization
(Source : peoples bank, 2015) 12

13. Impact on the Organization
(Source : peoples bank, 2015) 13

14. Awards and Recognition - 2016
Best Banking group 2015
Most sustainable bank 2015
Bank of the year 2015Banking Service provider of the year
Service Brand of the year
(Source : peoples bank, 2015) 14

15. Impact on People
Organization’s success or failure is essentially due to the things its
employees do or fail to do.
Robbins, Stephen P. (1996)
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16. Impact on People
Enhancement of staff benefits (Bonus & Incentives).
Staff Career development & opportunities.
Positive attitude towards the change - Newly requited & young staff .
Reduction of daily routine work.
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17. Impact on People
Employees by Age
(Source : Peoples bank, Secondary Data) 17

18. Conflicts of Employees
Resistance to change of long standing employees + 45 to 60
Fear of unknown
Fear of loosing financial benefits (e.g.-overtime and other allowances)
Threat for expertise & redundancy
Conflicts of trust & understating between employees & management
Resistance of being pulled out from the comfort zone
Reluctance of female employees attendance for training during
weekends
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19. Recommended Implementation Plan
Change is about changing people, not organizations.
If change implementation efforts are to be successful, they need to be designed
to fit the organizational context, that is , they need to be context sensitive.
(Balagun, 2001)
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20. Recommended Implementation plan
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21. Recommended Implementation plan
Feedback Questionnaire
1.What are the most difficult things
on your job?
2.What actions could taken to
improve your performance?
3.What sort of training would benefit
you?
Evaluation process
Source – fred luthans organizational behavior-an-evidence-based-approach-twelfth-edition
360° Appraisal Model
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22. Recommended Implementation plan
Regularly observing the organizational environment
Identify key stake holders & impact of initiative
Emphasizing the joint responsibility of management and staff to ensure that
change is implemented smoothly and effectively
Proper planning, consultation required to minimize difficulties at the
implementation stage
Kick off meeting on awareness building & advantages to company employee
& customer
Knowledge sharing forum for employees
Evaluate post & pre impact of change initiative of employees
Formation of a digital forum
Implementation of a reward & recognition system
Appointment of change agents in to the steering committee
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23. Bibliography
Peoples Bank, 2015. Annual report, s.l.: s.n.
FC Research, 2016. SriLanka Banking sector, s.l.: s.n.
Luthans, f., 2005. Organizational Behavior. 12 ed. Mc Graw Hill: s.n.
Peoples bank, 2014. Annual report, s.l.: s.n.
Stephen, R. p., 2005. organizational behavior. 11 ed. Prentice-hall of India:
s.n.
Armstrong, m., 2009. Handbook of human resource. 11 ed. s.l.:s.n
Balagun, J., 2001. Strategic Change. Management Quarterly part 10, Volume
January
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