Skip to main content

ICICI Leadership Academy - Part II

ICICI bank’s leadership in the industry is exemplary. But nothing to compare its ability to spot, groom and deploy leaders in-house.

One-man show

LISTEN to Mr Kamath as he recounts his original formula. “This entrepreneur was told you that have the support system of ICICI. You have a limited amount of capital. We will give you one good person whom you can pick. The rest of the team you will have to build and this is your business case. Detail your business case, build your team, tell me how you will execute, start executing, report to the board on that basis. Thereafter, move it to a management by-objective type of scenario—where objectives are very clearly set, keep meeting those performance targets. Keep ramping up these targets, if necessary, maybe course correcting the strategy as you go on.”
The model was successful. “It allowed the young business heads to evolve into leaders because they took the entire stress of building those businesses and getting them into shape. In that process they evolved into leaders. They had the cloud cover or the organizational support system. But the hard work had to be done by them,” says Mr Kamath.

So what did he look for in a person? “I tried to assess 3 or 4 qualities in a person. First, what is the level of raw intellect? What are the person's strengths and weakness? I never look for a person with no weakness. It is utopian. Thereafter, is the person open to acknowledge that his strengths and weakness must evolve? Plenty of leaders do not acknowledge their weaknesses. That is fine with me as long as they work at a subconscious level on those weaknesses. The next was a step into unknown territory—whether the person would build an entrepreneurial business. That had to do with a person's ability to take challenges and react under pressure. How you approached work and delivered gave an inkling of the person. We did not have anything to go by on pure entrepreneurial yardsticks. I still don't have answers on how to find an entrepreneur.”

Mr Kamath also instituted a star system for the top 5% of the bank's talent. They were treated preferentially while giving away bonuses. This made some strive to be stars and others who believed they can't make the cut simply leave. The pipeline was cleansed of low-rated employees clogging the system.

Dealing With Size

THE new process-driven system displaces none of Mr Kamath's precepts. It is not a computer generated list of leaders. Human judgement prevails. The new leaders are allowed to fail, to an extent. Every leader has two or sometimes three backstops. There is always someone to take the place. Performance targets are still sacrosanct.

But now, the company does the vetting rather than just Mr Kamath. First, among the 15,000-odd managers across the group, about 2,000 are empanelled as leadership talent. To be considered as talent, a manager would have to be a top performer. “The assumption is that unless you are a performer, you won't have credibility as a leader,” said Mr Ramkumar.

A thorough 360-degree appraisal is done for these people, which is then shared with each individual. The HR department then converts it into a data sheet and also writes a one-page profile of the person.

This is where the new talent assessment system takes over. It covers all those empanelled as talent—from joint managing director Chanda Kochar to the lowest rung manager. All of them go through the same rigorous process. Ms Kochar's assessment is done by the board of directors. For the rest, the HR department constitutes seven to nine member skip-level talent panels drawn from across the organization. So in effect, a senior GM can assess a deputy general manager (DGM), but not a general manager. Only people who are assessed as leadership talent can be part of the panel. "Our belief is that it takes a leadership talent to cite a leadership talent," says Mr Ramkumar. Decisions have to be arrived at by consensus. In effect, the panel is a leaderless group. An HR person tables the name of the person, and also presents the data. At least two people in the panel should have known the person, other than his direct boss. “Our belief is that if you are a talent, you can't be somebody who is hidden somewhere.”

These people are then asked to list out their experience of the person. Armed with data, the panel takes the call on the role that a potential leader can play. Is he good enough to be a regional head or head of a national business? If it is the pack of 25 odd people at the top level, the panel has to figure out just how many would make it to the board.

Then the question of time frame. If the panel decides that an assistant general manager is likely to make it to the national head's role in the next one to two years, he is classified as ‘A’ category talent. If he is likely to make the cut in 3 to 4 years, he is classified as a ‘B’ category talent and ‘C’ category, if it is within 5-6 years. This forms the basis for making appointments when national-level roles arise. Last year, about 400 managers in ICICI Bank were empanelled as category A talent—and they enjoyed the first strike at a new role.

The national head for home finance role is expected to come up for grabs soon. The directors will take a call on whom to pick based on a shortlist provided from the A-listers. The directors will use the 360-degree appraisals data which provides data on how the organization perceives the individual combined with the profile and comments from the talent panel on the person's domain knowledge.

So is the system foolproof? “Mistakes do happen. As long as it is 10-15% of cases, it is fine. What we promise is that errors are possible, but biases are not,” said Mr Ramkumar. It is this elaborate process that Chatterjee went through before landing the UK job. Today, at 39 years, after a successful stint in UK, he is managing both the corporate and international business for the bank; Chatterjee is responsible for nearly 90% of the bank's profits. Yet, he didn't need to catch just Mr Kamath's eye to become a leader, because the entire senior management of the bank was tracking him any way.

Popular posts from this blog

Save Tax With Mutual Funds

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300       Mutual funds are ideal as long term investment avenues for retail investors. To encourage investments in this avenue, the Government of India offers investors a spate of tax benefits thus ensuring maximum benefit from mutual funds held beyond a year. Sample some of the key benefits and refer to the table for a detailed list of tax rates for different types of schemes ·        Avail deductions under Sec 80C of the Income Tax Act by investing up to a maximum of Rs. 1 lakh in designated Equity Linked Savings Schemes (ELSS). Such investments have a compulsory lock in period of 3 years. ·        First time retail investors in equity with a gross total income of up to Rs. 12 lakh can invest up to Rs. 50,000 in specific MF schemes un...

How much to invest in gold ?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) Let your motivation dictate the share of the yellow metal in your portfolio Enough has been said and written about gold as an investment option. The latest argument is that the craze for gold among Indian households is endangering our country's balance of payments. The policymakers are busy trying to find ways of discouraging investment in gold, but if households keep the common good in mind, they would be paying the market price for gas cylinders as they do for, say, their mobile phone bills. After all, private decisions are driven by private motives. So, how should a household look at gold from its own perspective? Gold is primarily acquired for its merit as a store of value. Even if the worst crisis hits a family, the gold that it holds could be put to use anywhere in th...

Buying a Used Car

Invest in Mutual Funds Online Download Mutual Fund Application Forms   Pre-owned car can make sense in these inflationary times. But buying one can be trickier than getting a new vehicle    If you are thinking of buying a car but are worried about the rising inflation and higher EMIs eating into your budget, you should consider buying a used car. For those learning to drive, the general advice is that they should hone their driving skills in a used car. However, buying a used car is not an easy task. Though a used car costs less, there are a lot of aspects to be considered while buying one. You should do your due diligence before buying such a car. For example, two cars of the same model would carry two different prices. The difference in price could be on account of the age of the car, how many people have driven, etc. First Fix Your Budget Since used cars are available in a wide variety of models and prices, the starting point would be to determine your budget befor...

Debt Mutual Funds Best Fixed Income Investments

Debt Mutual Funds - Invest Online     In the last one year, except for a select few sectoral funds and small cap funds, not many of the equity funds have given great returns. On the other hand, debt funds have done relatively well in terms of returns. So far in the new year too, the stock market has been extremely volatile, pushing investors to look for safer havens. In this context, debt funds are looking safer bets for those investors who do not have the appetite for higher level of volatility. Investors who look for a regular income stream, also look at fixed income products like debt funds, bank fixed deposits and post office monthly income schemes.  Among the fixed income products, debt funds score over others because of chances of higher return, has nearly similar level of risks and liquidity. According to Shah, people looking for regular income could opt for a systematic withdrawal plan (SWP) in debt funds , which, if done judi ciously could also save on taxes. Shah explaine...

Diversification is key to gain more

Even those who prefer debt for its safety are looking at more options    It is not often that you find more than a couple of asset classes producing good returns at the same time. Invariably, assets such as gold and equity don't perform in tandem, and hence it was easier to allocate to them in line with the risk profile of the investors. In the last couple of quarters, however, more than one asset has turned attractive - gold, debt and equity. In line with the trend, you even have monthly income plans with a combination of more than two assets.    In the past, those who stuck to debt were a different class of investors who didn't wish to take risk with their money. The changing lifecycles and the growing integration of investment markets across the globe have pushed even individual investors to embrace the concept of asset allocation. Hence, you have individuals who were using debt to park profits being prepared to take advantage of other assets.    For instance, when the...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now