The story behind enParadigm's intervention program with the Muthoot Pappachan Group, set in its business context, tracked to direct results.

1. CLIENT STORY
enParadigm
Simulation-based workshops for your middle and senior management
Client Story: Muthoot Pappachan Group
With 20,000 employees across 3600 branches, the Muthoot Pappachan Group
provides non-banking finance and other services to over 1 million customers

2. Business
need
Primary
concerns
identified
3-day
workshop
Senior
management
across functions
Impact
analysis
6 months after
intervention, on-
site
Immediate
feedback
Participants
rate learning
experience
Need
alignment
Strategic needs from
leadership; skill gap
from participants
6 months
Tracking
True Business Impact
The intervention
Quick facts Business challenge
The Muthoot Pappachan Group is a diversified conglomerate with interests in
gold loans, housing finance, microfinance, automotive finance and precious
metals. Best known for its pioneering efforts in organizing and formalizing the
gold loan industry, the group endeavors to help those outside the traditional
banking credit system move into a safe and regulated structure.
Under the chairmanship of Thomas John Muthoot, the group has seen
exponential growth in recent years. Its flagship gold loan business - Muthoot
Fincorp, grew to over 3600 branches across India. This presented a unique
opportunity for the group’s other businesses – to leverage Fincorp’s reach and
cross-sell their products to a vast customer base. However, these distinct
businesses needed to learn to work together cohesively to make full use of this
opportunity, and ensure it did not harm existing revenue streams.
Company
Muthoot Fincorp Limited, Trivandrum,
India
Constituent companies:
- Muthoot Fincorp
- Muthoot Capital Services
- Muthoot Housing Finance
- Muthoot Mahila Mitra (Microfinance)
- Precious Metals
Industry
Retail non-banking financial services and
allied sectors
enParadigm Intervention
Leadership Simulation WorkshopTM
June 2013
Participant Functions
Heads of constituent businesses, along
with group finance, sales, marketing and
human resources
Participant Level
Constituent company CEOs with their
senior management teams, as well as
group-level function heads
Concerns Addressed
- Cross-sell on a common branch network
- Link business decisions to financial
impact
- CEO’s strategic perspective
The Group’s Harvard-educated Chairman and Managing Director, Thomas John Muthoot, understood that the first order of
business was to galvanize his managers to become more entrepreneurial, leverage a great branch network and mature as
business heads. Accordingly, Ms. Deepa Nair, Vice President, L&D (reporting directly to the group CMD), attended one of
enParadigm’s Open Leadership Simulation Workshops in May 2013, recognized value in our methodology, and
recommended an in-house program - which led to this workshop in June 2013.
This report puts the intervention in context before examining business impact
6 months after the event.
2 | Case Study: Muthoot Pappachan Group | enParadigm

3. Key business concerns
Cross-selling products
The primary challenge was to leverage a large gold-loan branch network to
cross-sell multiple other product lines like automotive finance, precious metals
and housing finance.
Tracing decisions to financial impact
Daily business decisions were isolated from their financial impact i.e.
managers could not trace the full impact of each business decision at branch,
product, company and group level.
Reclaiming the strategic view
These two concerns meant that managers spent more time and effort in daily
firefighting, and had less time for long-term, strategic work.
For business managers… visibility of company-
level cost-benefit of their decisions was low
Each region, product line and function had its
own objectives and KPIs
Business impact
enParadigm went back to Muthoot Fincorp a full 6 months after the workshop
to evaluate the business impact of the intervention, as well as the level of
implementation of individual post-workshop workshop action items. The
results were very encouraging, with managers reporting significant revenue
increases across multiple businesses:
Cross-selling products at Fincorp’s branches opened up new customer
segments, leading to exponential revenue enhancement across multiple
business lines.
“After the workshop, we were able to put in place the systems to cross-sell our
housing finance and precious metal companies' products through the vast
network of 3600 branches of our flagship company, Muthoot Fincorp. Sales
have increased by up to 2.5 times for the other group companies due to this.”
- Bejoy Jolly Anthraper, Senior VP - Sales, Muthoot Fincorp Ltd.
cross-selling
their products3600
branches
enParadigm | Case Study: Muthoot Pappachan Group | 3

4. Tracking financial impact led to sound business decisions and increased
efficiency:
“ The workshop drove home the understanding of resource constraints and
cost consciousness very clearly. It also successfully established the linkages
between input decisions and output results. I went back and setup individual
P&L statements for each of our 17 branches, allowing me to identify which
branches were profitable, and which branches were not bring in ROI on the
investments we had put into them. We have also mapped each of our
branches to over 10 Muthoot Fincorp branches so that we can use their
catchment to drive our housing loans. Our sales have gone up by about 2.5
times.”
- Maneesh Srivastava, CEO, Muthoot Housing Finance Ltd.
Strategic perspective helped find new avenues for growth and competitive
advantage:
“We as a team bought our competitors products and analyzed their strategy,
including basic concept and profitability calculations. We then adapted the
product to our vision and succeeded in launching it with ‘a little extra’ -
something more than what they offer, so that there is a competitive edge to
our product.”
- R Devika, Head-Products
Breaking functional silos for cross-functional initiatives helped uncover new
revenue
“Vigilance teams do not usually interfere in operations, but I
a. convinced my chairman,
b. planned the effort,
c. formed a cross-functional team and
d. recovered 51 Crores from pledgers, with more coming in.”
- Thomas Kurian, Vice President, Vigilance & Security
110 Each branch
mapped to
10 branches of Fincorp for cross-selling
for other group
companies250%
sales increase
51 Cr Recovered
from pledgers
By forming a cross-functional team
4 | Case Study: Muthoot Pappachan Group | enParadigm

5. Balancing proximity to Muthoot’s own business
Like Muthoot’s business, the virtual companies in the simulation also served
multiple customer segments in multiple geographies. The complexity of the
model, in terms of customers, products, competition, market forces and
internal conflicts ensured it stayed relevant to their particular business. At the
same time, it had to be sufficiently detached from their daily work – so as to
neutralize their bias and get them thinking out-of-the-box. This was thus a
delicate needle to thread.
Sustaining interest
The experience of running their own firm, competing with their colleagues’
teams and anticipating market shifts made the program interesting by design –
which was the only way we could sustain the interest of such a diverse
audience.
Pre-work
Well before the intervention, we interviewed every participant and spoke to
their reporting managers to identify specific strengths and concerns – making
the program relevant and targeted.
Tools and frameworks
Concept sessions and expert facilitators helped link participants’ experiential
learning to tools and frameworks ready-made for application back at work.
This includes positioning and customer centricity, return on equity, strategy
formulation, competitive analysis and finance for business heads.
The model had to stay relevant to their
business, but also… be sufficiently
detached from their daily work.
Appendix 1 – challenges in designing the intervention
The managers had left behind daily targets and urgent work to attend the workshop – so we overcame the I-had-better-
things-to-do effect by conducting a tightly-structured, intense program that fully utilized their valuable time.
We interviewed every participant and
spoke to their reporting managers
enParadigm | Case Study: Muthoot Pappachan Group | 5

6. Appendix 2 - workshop feedback
The immediate feedback for the workshop (taken on the last day, not to be confused with the 6-month post-intervention
feedback detailed in the main report above) was overwhelmingly positive, with participants awarding it an overall rating of
9.21 on a scale of 0-10.
On specific concerns, it averaged between 9 and 10 on all its pre-defined objectives. Selected results:
9.21
‘The workshop helped me understand
business from a cross-functional point
of view’
9.19
‘The workshop has helped me interpret
business financial statements to make
good decisions’
9.18
‘The workshop has helped me improve
my strategic thinking skills’
‘Overall Learning Experience’
9.21 on 10
6 | Case Study: Muthoot Pappachan Group | enParadigm

7. Our offerings:
Our solutions target managers at various levels, and are driven toward specific objectives:
For senior management
Leadership Simulation Workshop
For middle management
1. Aspire Simulation Workshop
2. Problem Solving & Decision
Making Workshop
Distribution Simulation
Workshop
For sales and distribution
managers
Talent Quest Workshop
For HR managers
Operations Simulation Workshop
For plant managers
Each workshop is driven toward a specific objective, relevant to the participants’ level of responsibility
Leadership Simulation Workshop Provide a CEO’s perspective of business to AVP, VP and GM level roles
Aspire Simulation Workshop Build business acumen for middle managers
Problem Solving & Data Mining Workshop Inculcate data-driven decision making for middle and senior level managers
Distribution Simulation Workshop
Enhance distribution channel effectiveness and improve alignment with channel
partners
Talent Quest Workshop Better business integration and talent management for HR managers
Operations Simulation Workshop
Drive alignment across departments at plant level and enhance operational
effectiveness and profitability
enParadigm | Case Study: Muthoot Pappachan Group | 7

8. enParadigm Knowledge Solutions
Copyright © 2014 enParadigm Knowledge Solutions LLP. All rights reserved.
The ‘People tree’ logo, Leadership Simulation Workshop, Aspire Simulation Workshop and Operations Simulation Workshop are trademarks of enParadigm Knowledge Solutions LLP.
About enParadigm
We accelerate business performance through simulation-based
interventions for middle and senior management. Run by industry experts
and IIM Ahmedabad alumni, we have conducted workshops for companies
such as Citibank, Coca Cola, HCL, Dell, Dow, Essar, GMR, HSBC, IBM, Indian
Oil, Merck, NIIT, SAP, and Tata Motors.