Benchmarking
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2nd Global Benchmarking Network (GBN) award
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Benchmarking
- 1. Benchmarking Approach in : BANK PASARGAD By: Amir Rafiei 2nd Global Benchmarking Award Singapore, 31 Oct 2013
- 2. BPI at a Glance Type: Public Industry: Banking, Financial services Founded: 14 Dec 2005 Headquarters: Tehran, Iran NO. of Branch: 297 branches Employees: 3251 (2012) Slogan: Customer is Essence of the Bank Ranking 2012: • One of the top 10 highest movers bank in the world • Ranked 257 over 1000 • Bank of the year in 2010,2011,2012 Website: www.en.bpi.ir
- 3. Our Operational Definition of Benchmarking When: Always Where: In/Outside Banking Industrial WHAT: Service, Process & Performance WHO: International, Best in Class & Best of the Best Benchmarking in the BPI is the process of improving performance by continuously identifying, understanding, and adapting excellent practices found outside (and inside) Why are others better ? How are others better ? What can we learn ? How can we catch up ? How can we become the best in our sector ?
- 4. Our leadership Commitment The Hersey-Blanchard Situational Leadership Theory Identifying factors: • Maturity • Organizational level • Staff Competency • Subject allocated
- 5. Our Culture, sharing and learning • • • • • Flexibility Innovation Commitment to Excellence Innovative Problem Solving Monetary/Non- monetary remunerations • Intranet • Training Courses • E-Library • • Meetings Knowledge Networks • Workgroups • Seminars • Procedures • Manuals • Yellow pages • Portal
- 6. Our benchmarking process / structure 1. Identify What Is to Be Benchmarked PLANNING 2. Identify Comparative Other Banks / Companies 3. Determine Data Collection Method and Collect Data ANALYSIS INTEGRATION 4. Determine Current Performance "Gap" 5. Project Future Performance Levels 6. Communicate Benchmark Findings and Gain Acceptance 7. Establish Functional Goals 8. Develop Action Plans ACTION 9. Implement Specific Actions and Monitor Progress 10. Recalibrate Benchmarks MATURITY •Practices Fully Integrated Into Process •Share and Learn the Results Achieved
- 7. Some Examples • Virtual banking • Mobile Banking • Navid 5 Product & Services • CRM • Process Map • Customer Club Process Management • BI • Core Banking • ERP IT-ICT • Staff Satisfaction • Competency Model Human Capital
- 8. Our Results Achieved Process Improvement Value Addition to Clients Cost Reduction • Our Process Map • Core-banking Production • Production Of The Virtual Banking • Deposit Accounts • New It-based Services • Customers Securities • Process Improvement • Human Capital Productivity • Opportunity Cost
- 9. Lessons Learnt and Our Next Steps Lessons learnt Next Steps • No Paradigm blindness • True implementation • Competitive Superiority • Other departments • TQM • Stakeholders support • Accelerate Innovation • Day-to-day monitoring • Awareness of • Evaluation and ourselves reinstitution
- 10. Thank you Give Benchmarking a Chance It’s Worth It.
Editor's Notes
- Good morning ladies and gentlemen. I'm Amir Rafiei the BE expert in Bank Pasargad, Iran. Before I forget, I would like to express my sincere gratitude to the organizers of this event for hosting us here especially to Dr. Robin Mann for his excellent effort in this regard. I personally believe that it is a terrific event for all the participants and a chance to learn from each other's...
- Before that, let me tell you about the Bank Pasargad of Iran which is also known as BPI. It is a major Iranian bank, offering commercial, investment, corporate and private banking services. The bank was established in the late 2005. The bank operates throughout the nation with more than 3000 employees and about 300 branches. BPI is listed under the Tehran Stock Exchange. In 2012, after 8 years activity, The Banker magazine rated BPI as 257th bank among “the top 1000 banks in the world “and also has nominated it as “the Iran bank of the year” for three consecutive years.
- This is our practical definition of benchmarking embodied in the bank.This definition shows, we benchmarked in different levels, via a defined process both in banking and non-banking sectors, to improve our services, processes and performances in a regular basis. Of course, besides this process, we also have our informal methods at lower levels and simpler subjects. So in this way, we perform service benchmarking when designing new products or upgrading existing ones.Process benchmarking by identifying how others perform the same functional task or objective, and gain insight and ideas we may not otherwise achieve. Performance benchmarking by looking at where our product or services are in relation to competitors on the basis of things such as reliability, quality, speed, and other product or service characteristics.Where examples of good practices can be found in foreign organizations and there is a lack of good practices within national business units we make comparison which is our international benchmarking type.In best in class benchmarking we try to provide a basis for continual improvement.And in the best of the best, we don't limit our efforts to players inside the banking industry only! Because we believed we reached to the point of becoming a best-in-class firm.We try to answer these questions through each of these types, to see why and how are others better and why and how can we catch them up to become the best in the banking industry?
- This is our Leadership commitment according to the Hersey-Blanchard Theory which shows the balance between the spectrum of Directive behavior and Supportive behavior of our senior management towards the variety of cross-functional teams. The authority and responsibility of each benchmarking team is dependent on a series of factors including maturity, Organizational level, staff competency, subject allocated. We have precisely defined procedures that obligate our senior management to monitor the teams of benchmarking and the activities that those teams have undertaken.
- Our rich organizational culture especially fundamental values of the bank such as flexibility, innovation, commitment to excellence and creative problem solving is creating a proper field for the relevant team. Our senior managers welcome any benchmarking projects that are aligned with the strategic objectives.In addition, our leadership supports and encourages such as making training opportunities, granting appreciation letters and paying monetary remuneration cause a great participation of our staff in this kind of benchmarking team. Furthermore this special culture cause and encourages sharing of our learning and the results achieved.Yellow Pages, Intranet, E-Library, Knowledge Networks, Portal, Training Courses, Meetings and Seminars are some tools which are used for knowledge sharing and learning via IT-ICT.
- This is our structured benchmarking map based on TRADE methodology developed by Dr. Mann which consists of 5 main steps. At the first step we identify the Goals, Subjects, Success criteria, Time schedule and collect data.Then we analyze them and have our Self-assessment, and identify our Current Performance and Ideal status to measure the performance gap exists.At integration level we try to formulate improvement solutions and establish our functional goals.At the action step we deploy our improvement actions by using different management tools and techniques, Review and monitor the process, and communicate to stakeholders.And eventually, at the maturity level we try to expand it through the whole processes in the bank, and share and learn the relevant results achieved.
- In this slide, you can see the 4 main scopes in which our benchmark teams are established continuously for efficiency improvement in our bank. In addition, several subjects which are planned and implemented or upgraded their performance status in the bank by our benchmark teams are observed here.
- Let me tell you about the unique results achieved by implementing benchmarking in the bank:We improve the processes by: Re- engineering of our process map according to the Process Classification Framework (PCF)Core-Banking Production in a custom-built way with benchmarking from existing exemplars in conformity with Iranian banking requirementsProduction of the Virtual banking system and presenting the most banking services (37 items) via internet and register it in the Central Bank of Iran and receive the certificate IUI 5002 in 2012 We add value for our customers by:Expansion of different types of deposit accounts such as Navid 5 ( which is a special long-term deposit account)New IT-based services such as Virtual Debit Card Increase customers securities by finger print identification systemAnd we reduce costs by:Process improvement via time saving and/or shortening a specific processIncrease Human Capital ProductivitySaving opportunity cost and omitting extra unnecessary charges due to performance improvement
- Our CEO (Dr. Ghassemi) has always emphasized this attitude which we have a long way to reach to the top of the mountains, Benchmarking helps us to overcome "paradigm blindness" and open eyes to new methods, ideas and tools. Furthermore, gaining competitive superiority rather than competitive parity. It is a tool for implementing total quality management in bank. It cause we accelerate our continuous improvement and innovation, and finally gives us the chance of better awareness of ourselves. As a continuous improvement cycle after the benchmarking we,Determine what type of change must be implemented in our bankAnalyze how the revised goals will impact other departments not targeted for changeDecide in what detail our stakeholders should be informed of changes and how to present the changes to generate support rather than anxiety. Executing the day-to-day monitoring of changesContinuously evaluating the benchmarked practices and reinstituting the benchmarking process when necessary
- Thank you so much for your attention, I wish to see you soon at the next GBN award.