Project Parivartan : State Bank of India’s Internal

Communication Initiative

About Project Parivartan:

It was a huge internal communication initiative aimed at sensitizing the grassroots level employees
regarding the changes being undertaken in SBI and the need for such change. The initiative that was
launched in July 2007 was a huge success and was instrumental in bringing about the attitudinal
change in the workforce that was required to compete in a very competitive environment.

Problems in Competitive Banking Sector:

Though SBI was the market leader in the Indian banking sector, it had been facing tough competition
from private players such as ICICI Bank, HDFC Bank, and UTI Bank ever since their entry into the
market. The private sector banks brought a new emphasis on customer service and technological
innovations that, experts felt, were areas neglected by public sector banks such as SBI. Plus the
orthodox systems, behaviour of staffs, lack of technological advancements pushed SBI in a difficult
stage in this competition.

Changes made:

hange at SBI Three new business groups were created – a treasury vertical to convert treasury into a
profit center under a deputy managing director, who would undertake all the tasks that treasuries. A
rural business group tasked with reaching out to 100,000 unbanked villagers in two years, well as an
outsourced model led by technology and the lowest costs possible. The third group, corporate
strategy and new business to identify financial-services opportunities in areas in which the bank
wasn’t active or doing poorly and develop these new products or businesses. With all this effort put
in SBI was no longer losing market share. Market share was used as a major metrics in the bank
because that is something everyone understood. Bhatt says, If I told them that we have to improve
profitability or market cap, that would be more difficult. We’re also improving against other metrics.
In January 2008, the Bank became no. 1 in India in terms of market cap, overtaking ICICI bank. Mr.
Bhat received CNN-IBN’s Indian of the Year award. Customer service is also improving. In 2007, SBI
was rated the best bank in India in terms of customer service, brand loyalty, and branch strength.
Making Change Stick A two-day program called “Parivartan” was implemented as a mass internal
communication programme. The idea behind “Parivartan” was to sensitize everyone at the bank
from clerks to Scale IV Officers to the need for ongoing change. It was a workshop specially designed
to create change awareness and as a call to action or duty among all employees. More than 3,800
two-day Parivartan workshops were held at more than 100 venues throughout the country for
around 100 days to cover all employees, starting from July 16, 2007. Parivartan brought new energy
across the bank— more pride, more involvement, and more joy. Across the bank, there was a
perceptible, qualitative change in the kind of customer service the bank renders. Way Ahead The
climb ahead is far steeper and more difficult. International business, extending reach within India,
driving more efficiencies, providing entire range of banking and financial services, acquiring
resources, technology, products, or skills. Bhatt says, And finally, I want to do all this by instilling in
my people a sense of service and helping them realize their work in the bank is not only about
excellence in the workforce but also about self-development, evolution, and excellence in life.
Final Results after changes :

 The project was very much successful

 So many employees were trained over a short time itself was an achievement
 There was a perceptible improvement (20%) in customer service and a reorientation of
employee attitudes
 There was a 20% increase in customer satisfaction