Change

Manageme
nt @
 What is Change??

Change is a structured approach

to transitioning individuals,
teams, and organizations from a
current state to desired future.
 Factors for Change..
• Nature of the workforce

• Technology

• Economic Shocks

• Competition

• Social Trends

• World Politics
 ICICI & KV Kamath
• Kamath rejoined India’s leading financial
services co. in 1996 as the CEO replacing
Narayan Vagul.

• Aimed at making ICICI a market driven co.

• Initiated a lot of Organizational changes

immediately to make ICICI a financial
powerhouse.

• Kamath identified ICICI’s limited expertise as

the biggest problem and decided to make ICICI
 Changes by Kamath..
• Creation of infrastructure group (IIG), oil &
gas group (O&G), planning and treasury
department (PTD), structured project groups
(SPG).

• Creation of Client groups like major client

group (MCG), growth client group (GCG),
personal finance group.

• Change in employee reward system.

• ICICI-BoM Merger.
Consequences of Changes..
• Kamath’s ‘too fast too soon’
approach created a lot of confusion
and unrest among the employees.

• Employees found creation of groups

unacceptable.

• Lack of proper training and expertise

for various groups.
 Consequences (contd.)
• No relationship between
performance and reward.

• BoM merger lead to huge cultural

differences in the organization.

• BoM employees feared regarding

their positions coming under
scrutiny.
 Organization Culture

Culture is a system of shared

meaning held by members that
distinguishes the organization
from other organizations.
 Characteristics of Culture
• Innovation and risk taking.

• Attention to detail.

• Outcome orientation.
 Characteristics (contd.)
• People orientation.

• Team orientation.

• Aggressiveness

• Stability.
 How employees learn
culture.
• Stories

• Rituals

• Material Symbols

• Language
 Overcoming challenges &
ICICI’s culture
• ICICI organized training programmes
for existing employees.

• The company appointed consultants

to handle the change management
problems and work culture.

• A 360-degree appraisal system was

put in place.
 (contd.)
• The HR issues were successfully
handled by ICICI, which resulted in
high morale of the employees.

• ICICI’s employee strength and

profitability kept on increasing over
the years.

• By the end of 2000, ICICI emerged as

one of the largest financial institution
of India.
Thank
You !!!