“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?