Dynamic leadership profile imperative for evolving PSU banks: FICCI-KPMG Report

Cultivating leadership competencies around stakeholders, customers, operations, talent, change and strategy are essential for public sector units (PSUs) to address their key business priorities. Latest research from FICCI and KPMG in India on PSUs with a focus on banking, profiles the leadership landscape across top executives. Success in institutionalising leadership development is likely to emerge as a possible game changer for the PSU banks in India says the report launched at the Banking Conclave 2013 in Kolkata today.

 

The business landscape of PSU 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 PSU banks. These banks are gearing up to meet demands from expansion, optimise resources, increase their presence across the value chain, renew focus on research and development and innovation, create a better performance culture and service customer demands effectively. The research assesses leadership requirements to meet these priorities.

 

KPMG assessed 1,375 leaders from across PSUs (top three management levels 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 PSUs over the years. The scale is operationalised across three dimensions â depth of expertise, breadth of impact and complexity of situations.

 

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 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, says the report.