Success in institutionalising leadership development key to PSU banks growth says study

Mumbai: 

Success in institutionalising leadership development is likely to emerge as a possible game changer for the Public Sector Banks in India, says a FICCI-KPMG Report launched at the Banking Conclave 2013 in Kolkata today.

 The business landscape of Public Sector Banks has made a rapid shift in the last few years. Changes in the regulatory framework, rising customer expectations, shift in the employee demography and changes in technology have emerged as key drivers of change for the Public Sector Banks.

The Public Sector Banks are gearing up to meet demands from expansion, optimize resources, increase their presence across the value chain, renew focus on R&D and innovation, create a  better performance culture and service customer demands effectively. The FICCI-KPMG research  assessed 1375 leaders from across PSUs (top three levels of management below MD) to identify their existing proficiency across the leadership competencies. The average proficiency across competencies demonstrated by the leaders assessed was found to be 2.91 on scale of 5. The six leadership competencies - stakeholder leadership (3.11), customer leadership (2.74), operational leadership (2.97), talent leadership (2.95), change leadership (2.78), strategic leadership (2.88) are based on KPMG’s ongoing research in the PSU sector over the years. 

The scale is operationalised across three dimensions – depth of expertise, breadth of impact and complexity of situations.

According to Nishchae Suri, partner and head ofPeople and Change Practice, KPMG in India, “Organization capabilities serve as the DNA for stakeholder value creation. Leadership competencies are a key ingredient of organisational capability and are essential in driving success through processes, technology, structure and the workforce."

Attracting, hiring, developing and retaining the best available talent and nurturing them to become the future leaders is a critical factor, which will pave the way for the Indian banking industry to achieve a world class level. Existing ways of leadership development in our PSUs need to be aligned and strengthened. A dynamic business environment and competition from the private sector demands that PSU banks adopt cutting edge learning interventions. Such game changing initiatives will structurally support PSU banks develop a leadership pipeline competent to meet their short term and long term needs.