Implementation of growth strategy

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This is the output of a project work which included interview of 4 corporate managers. The subject is 'Implementation of Growth Strategy'. Top management develops growth strategies for acquiring a competitive position in market, however success of any Strategy depends on the implementation by Managers. While Strategy is the route map, Managers are the drivers who follow the route map to arrive at the destination. The Managers encounter obstacles on the way, which they need to overcome. Thus, the execution of the Growth Strategy may differ from manager to manager. The presentation gives the details of what the Managers have done to execute Strategy in their respective companies. The names of Managers and some companies are not disclosed for maintaining confidentiality.

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Implementation of growth strategy

  1. 1. GROWTH STRATEGY IMPLEMENTATION AROONIMA SINHA
  2. 2. INTENSIVE GROWTH STRATEGY CHALLENGES Pune was a low ticket size market. Large number of agents with low footfall. Development Officers operated independently and influenced by DO Union. No job rotations and people spent years at one seat. Staff too was influenced by Union. Huge geographical scope with scattered units. Competition with private players. INTERVIEWEE: PUNE DIVISIONAL OFFICE
  3. 3. GET THE CLEAR PICTURE The first step would be to see ‘Where you are’ and ‘Where you want to be’. The clearer and simpler the big picture,  The more easier it is to find the suitable means to arrive at destination and  Get people excited and adopt a unified purpose which is above individual objectives. Pune Divisional office of LIC ranked 3rd in the country. Growth of 2% to 3%. Average growth rate of LIC- 15% to 20% Achieve double digit growth which is above average growth. Beat Mumbai divisional office
  4. 4. MOBILIZE HUMAN CAPITAL Intensive growth strategies exploit opportunities in current market. It becomes more critical to strengthen the human resource involved in implementation to get desired results. Leader must listen to, understand and attend to diverse interests of different elements of human resources. How to mobilize Human Capital? Implementation at Pune Divisional Office Share intent with last man standing Leader tried to reach the farthest Agent from each of the 33 branches Address people issues The problems of different staff unions were heard and addressed by the Leader Communicate to understand, resolve and express intent. The leader maintained Open communication with all concerned leaving no room for any differences and ego clashes Seek cooperation from all through brainstorming All leaders of staff like the marketing manager, development officer, back office, trainers, and back office sat together to brain storm and contribute ideas.
  5. 5. DEVELOP HUMAN CAPITAL In order to scale up the level, people have to be developed to deliver their complete potential. It is important to gain their ‘share of mind’, ‘share of heart’ and ‘share of voice’. However one needs to ensure that  Training needs are assessed properly and  Training must be designed as per current market scenario Inputs were taken from stakeholders on training requirements. Industry professionals were involved like National Insurance Academy and trainers from Zonal Training Centre Service requests which took 2 days was now executed in 30 mins. Agents footfall in branches and average productivity improved. Pune Divisional Office: Training was organised at the most accessible location for all agents and Development Officers and Back office staff
  6. 6. OUT OF BOX THINKING The ground work was done and the foundation was set for delivering exceptional performance. The resources were now mobilized and well developed and ready to take off to the defining stage. The leader saw an opportunity unfold in iteslf by the launch of ‘Bima gram’ a rural insurance scheme by LIC with rewards attached for the sales line and the villages. The line of authority was aligned to the objective of promoting the scheme across several villages in Maharashtra. Result was highest ever no. of policies in a year which was marked by entry in Limca Book of Records. The Divisional Office ended up with volumes higher than its Mumbai counterpart and exceed 25% growth rate for 2 consecutive years under the said leadership.
  7. 7. GROWTH STRATEGY IN RURAL INDIA Many companies are placing special emphasis on rural markets. Improved infrastructure and agricultural productivity has resulted in increase in per-capita income in Rural India. The Training Manager was responsible for educating the rural class in insurance and roll out a business model in the village. CHALLENGES LACK OF AWARENESS LACK OF UNDERSTANDING OF FINANCIAL PRODUCT DIFFERENT MINDSET WIDE REACH IMPLEMENTATION OF STRATEGY BLEND WITH LOCAL CULTURE: Manager involved with people using local language. RELATE TO DAY TO DAY ACTIVITIES: Manager conducted seminars in Panchayat places by relating to examples of daily activities. Eg how insurance and saving is similar to farming and cultivation. INCENTIVISE- EARNING POTENTIAL: Senior members like the Sarpanch and panchayat members were trained and they eventually became Spokepersons for the Company. AUTO FUNCTIONING MODEL: After regular initial visits, the message spread across automatically and business was self suataining. STRATEGY INTERVIEWEE: ABC of XYZ Life insurance company
  8. 8. CASE OF A STARTUP A financial planning firm had CFP’s (certified financial planners) in their network to contract clients for financial advice. CFP’s were paid onetime fees to generate clients. Due to low clientele and high acquisition costs, strategy was to add a new segment to the network- IFA’s (Independent financial agents). ISSUES:  Conflict of interest between IFA’s and CFP’s  Challenging to acquire IFA’s  Completely new concept Able to tap much wider existing clientele of IFA’s Each CFP now attached to 20 IFA’s CFP’s INTERVIEWEE: ABC of XYZ company
  9. 9. SCALING THE STARTUP Speed of action and Time to market • The manager launched the idea in the industry by conducting seminars. Strategic Alliances • The manager tied up with AMC’s and Insurance co’s for tapping their IFA’s. Unique Value Proposition • For the AMC’s & Insurance co’s it was – getting highly productive agency . For the IFA’s it was- securing future transactions through long term plan and thus getting sticky clientele. Regular engagement with the channel • The Manager organized Induction programs, extended Business Development support, engaged in Coaching and handholding through field demonstrations, and set up Reward and Recognition platform
  10. 10. There are many levers that a management pulls in order to execute a multi pronged corporate strategy. Sales management Training is one of those levers to enable a specific growth strategy aspect.
  11. 11. TRAINING AND DEVELOPMENT- A KEY LEVER CHALLENGES As a leading insurance company embarked into expansion phase, there was a requirement of second line sales head to manage teams. There was dearth of domain expertise. People were being lured by competitors with lucrative remuneration and attractive career path. It became imperative to bridge the quantitative and qualitative resource gap. Line managers were disinclined to spare their key resource for any Training as they perceived it as a loss of revenue STRATEGY A performance linked aspiration program was devised in the form of a three day OBL program. The program was called ‘Velocity’ & is today a flagship program, a pioneering effort in the Insurance Industry. The primary objective was to get people to perform & groom them to effectively take on the mantle of Office heads. Graduate from being a First line sales Head to managing a team of Sales Heads. INTERVIEWEE: ABC of XYZ life insurance company
  12. 12. TRAINING & DEVELOPMENT STRATEGY Value addition resulted in visible transformation and word of mouth publicity. The program gained acceptance and the objective was met- 10% of the qualified sales force rose up to higher ranks and successfully led teams. HOW TO IMPLEMENT? EXECUTION AT THE COMPANY INTERNAL MARKETING In order to gain acceptability company wide, there was a lot of internal marketing of the benefits of the program. MAINTAIN QUALITY Trainers were handpicked within organization and groomed to deliver a high end MDP. FOCUS ON KEY SKILLS Critical core competencies of the sales force was differentiated and training priority was developed to connect to the company growth strategy- Team Building, Communication & Leadership REVISIT STRATEGY The progress was closely tracked & feedback taken from Line Managers & remedial measures were incorporated.
  13. 13. THANK YOU

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