Post on 12-Apr-2017
“From Good to Great”Management Case Study - MBA/ HR/ 02
Current Status - Bank of Ceylon
Established on 1st August 1939
Leader in assets, deposits, foreign currency remittance
13 Subsidiaries and 5 associate companies.
Over 620 branches &
540 ATM network
Operated in United Kingdom, India, Maldives and Seychelles.
Bank of Ceylon - Profile
No.1 brand for seventh consecutive years
Brand value Rs.38 billion in year 2015
Debt securities – 19 December 2008
Literature Review
Most fundamental management process
Managers must plan for future organizational direction and for unexpected events.
The plans should meet environmental changes and expectations of stakeholders.
Advantages –
• Legitimacy and standard for performance
• Source of motivation and commitment,
• Guide resource allocation & action
• Provide rationale for decisions
Planning
“Planning is the process of determining organizational goals and defining the means of achieving them” (Daft. L,2015).
Levels of Goals and Plans
Mission Statement
Strategic Goals
Tactical Goals
Operational Goals
Senior Management
MiddleManagement
LowerManagement
Internal MessageLegitimacy, Motivation,
resource allocation, guides rationale etc.
External MessageLegitimacy for investors, customers & suppliers
Organizational Planning Process
1. Develop the Plan
Define mission & vision
Set Goals2. Translate the Plan
Define tactical plans & objectives
Develop strategy map Define contingency
plans and scenarios Identify intelligence
3. Plan Operations
Define operational plans & objectives
Develop strategy map Define contingency
plans and scenarios Identify intelligence
4. Execute the Plan
Management by Objectives
Performance dashboards
Single use plans Decentralized
responsibility
5. Monitor & Learn
Hold planning reviews
Hold operational reviews
Vision, Mission
& Goals
Internal Environment
Analysis
External Environment
Analysis
Strategy Implementation
Control &
Feedback
Strategy Formulation
1.Global Economic Trends
Oil Prices
Gold Prices
World Markets
Economic Power Shifts
2.Local Market Analysis
3.Competitor Analysis
Qualitative Analysis
Employee Engagement
Branch Net Work
Planning Process of BoC
1. Resource allocation
2. Making Decisions
3. Accomplish overall goals of BoC
3 yr Corporate Planning Rolling model
Budget incorporated
Budget for one year
Corporate PlanningFocus
Corporate Planning Process of BoC
Evolution of Progress of
Existing Goals
Discussions at Divisional
Forum
Board Approval
Align with Vision and
Mission
Distribution of agreed goals to
each DGM
Distribution of
Settled Budged
targets to branch level
Provincial Level Estimation
Bank wide Initial Estimates
Branch Level Initial
Estimation
Board Approval
Bottom – Up approach in Budgeting Process
Align with1.Corporate Objectives
2.Regulatary Compliances
3.Industry Growth
4.Gavt.Policies
Top - Bottom Approach
Corporate Planning Process
Top Mgt –
GM & BOD
Deputy General Managers
Assistant General Managers
Chief Mangers & Senior Managers
Branch Managers & Staff
Bank’s Goals & Objectives
Provincial Targets
Branch Targets
Individual’s Targets/
KPI’s
Implementation Process
Head Office Level Province Level
Annual Review –BoC Officials
• At Head Office• Reported to AGM & DGM• Provincial AGM reporting their performance• on monthly basis
Quarterly –BOD, H/O units DGM’s, AGM’s and Branch Managers • At province office
• Reported to province AGM• All branch managers are reporting their performance• on monthly basis
Monthly –BOD, H/O units DGM’s, AGM’s & Branch Managers
Weekly –Corporate Management Based on the MIS Report
Budget Actual
Strategic Planning and Monitoring
• At branch• Reported to Branch Manager• All Staffs are reporting their performance• on weekly basis
Challenges
Global economic contexta. Fluctuation of Fed rateb. World financial market (Oil & Gold price, forex rates etc.
Global Financial contextDigitization, Changing landscape & Rise of Telco
Intra-bankAged cadre, Top strategists, Work with new technology
Local Macro-economic contextCompetition, Government direction, Radical budget proposals
Limitations
Human Resources related
Bridging the technology gapAging competencyIntegrated PMSTrade UnionHenchmen
System related
FlexibilityInnovationDecision making Being less competitiveDelivery and technologyEffectiveness of BMW team
Recommendations
Recommendations
Detach politics for business growth & appointment based on Meritocracy
Introduce comprehensive planning and policy setting tool
Use of Business Intelligence Systems
References
- Robbins, S. P., Judge, T. A. & Vohra, N. (2013). Organizational behaviour. (15 th
edition). New Delhi: Pearson.
- Daft, R.L. (2015). New Era of Management, New Delhi: South-Western
Robins,S.P., Coulter,M., & Vohra , N.(2011). Management, New Delhi, Pearson
publications.
- Bank Of Ceylon (n.d.).Bank profile,corporate profile,financial highlights. Retrieved
10th January 2015,http://web.boc.lk/index.php?route=information/information
& information_id=4
www.combank.net
Presented by
MBA IN HRM 2015/17GROUP NO.2
Ms. S.V.N Perera (2015/MBA/WE/HRM/14)Mr. L.D.R.S. Lankage (2015/MBA/WE/HRM/08)Mr. L. Havikkumar (2015/MBA/WE/HRM/04)Mr. Hiran Kularatne (2015/MBA/WE/HRM/07) Mr. M.M. Maddumabandara (2015/MBA/WE/HRM/09)
Questions?