Change Management at Icici
Change Management @ ICICI
By Group-5
Group Members:
1)Adrish Ray
2)Deepak Prakash Tejale
3)G.B. Sambhrama
4)Girish Krishnamurthy
5)Neelkant Rajaghatta
6)Neha Gupta
Q1. ‘ The changed focus of ICICI to become a non-stop shop for financial services necessitated the changes in the organization culture and goals.’ Analyze the changes implemented by Kamath in mid-1990s and comment briefly on the necessity and efficacy of these changes.
Answer : In 1996, when Kamath took charge over ICICI, he introduced massive changes in the organizational structure. He wanted to change the development bank into a market-driven financial conglomerate.
Some of the changes implemented by Kamath for ICICI are:
1. The first change was initiated within the organization by forming Infrastructure group (IIG), Oil & gas group (O&G), Planning and treasury department (PTD) and the Structured products group (SPG). This was necessary because the lending practices were quite different for all of these groups. He picked the efficient people from various departments for these groups.
2. The next move by Kamath was to focus its operations much more around its customers i.e. they wanted to be customer oriented. For this ICICI set up 3 new departments :
• Major client group (MCG)
• Growth client group (GCG)
• Personal finance group
Now the customer would communicate only to his representative group i.e. MCG & GCG who helps them to identify the required department to do the job. It was necessary to make such changes because previously the customers had to approach the relevant departments separately which was ultimately time consuming. This step also resists the customers to move to other competitors.
3. Now ICICI wanted to provide almost every financial service, separating the customer service people from the product development groups. The MCG & GCG person understood the clients need and possessed the required
By Group-5
Group Members:
1)Adrish Ray
2)Deepak Prakash Tejale
3)G.B. Sambhrama
4)Girish Krishnamurthy
5)Neelkant Rajaghatta
6)Neha Gupta
Q1. ‘ The changed focus of ICICI to become a non-stop shop for financial services necessitated the changes in the organization culture and goals.’ Analyze the changes implemented by Kamath in mid-1990s and comment briefly on the necessity and efficacy of these changes.
Answer : In 1996, when Kamath took charge over ICICI, he introduced massive changes in the organizational structure. He wanted to change the development bank into a market-driven financial conglomerate.
Some of the changes implemented by Kamath for ICICI are:
1. The first change was initiated within the organization by forming Infrastructure group (IIG), Oil & gas group (O&G), Planning and treasury department (PTD) and the Structured products group (SPG). This was necessary because the lending practices were quite different for all of these groups. He picked the efficient people from various departments for these groups.
2. The next move by Kamath was to focus its operations much more around its customers i.e. they wanted to be customer oriented. For this ICICI set up 3 new departments :
• Major client group (MCG)
• Growth client group (GCG)
• Personal finance group
Now the customer would communicate only to his representative group i.e. MCG & GCG who helps them to identify the required department to do the job. It was necessary to make such changes because previously the customers had to approach the relevant departments separately which was ultimately time consuming. This step also resists the customers to move to other competitors.
3. Now ICICI wanted to provide almost every financial service, separating the customer service people from the product development groups. The MCG & GCG person understood the clients need and possessed the required