It is a case study about how about bhatt used his leadership skills, the time when SBI was dealing with crisis

1. Role of Leadership during
Crisis - Turnaround Case of
State Bank of India(SBI)
Submitted To: Dr. Nailesh
Limbasiya
Submitted By: Pallavi Priya
MBA – I
Date: 10/10/2016

2. Abstract:
It is a well known fact that “Leadership” plays a
vital role in the success of any organisation.
In this case, Mr. O.P Bhatt, the former
chairman of State Bank of India brought a
revolution in the financial sector and
transformation in the entire functioning of SBI,
through his leadership skills, better HR policies
and adoption of advanced technology, in the
year 2005, the phase when the bank was
confronting a host of problems and was facing
tough competition from private players such as
ICICI Bank, HDFC Bank, etc.

3. Introduction:
Crisis can be termed as a “ sequence of sudden,
unplanned and unexpected events leading to the
instability in the organization.”
They generally cause major disturbances in the
workplace.
On the other hand, Leadership is the
capacity of an individual to influence and direct
group efforts towards the achievement of
organizational goals.
The leadership role during crisis is quite different
from that, in normal situation and here, the usual
leadership techniques are not applicable.

4. Conti..
 In the financial sector, State Bank of India is the
market leader since its inception. It spreads across
the country spanning the length and breadth of the
country
But, the liberalisation in this sector opened
gate for several other private banks and thus, its
leadership position was at stake and its ranking in
the list of top global banks was also slipping
Meanwhile, Mr. Bhatt took over the chairmanship
of SBI and recognised the need for transformation
and he was determined to improve the systems
prevalent in SBI to retain its numero uno position

5. Methodology:
 Internal Communication: Mr. Bhatt opened a
new department named “ corporate
communication “ to allow every staff to directly
write/send email to him and feedback was taken
on regular basis.
 Technology Upgradation: Technology
upgradation was undertaken throughout the
bank and CBS system was strengthened.
 Training: Training and skill development was
emphasized and strategic training unit was
created for better performance and
coordination.

6. Project PARIVARTAN:
 The Parivartan initiative was reportedly the
brainchild of Mr. Bhatt.
 The program was aimed at obtaining the support
and acceptance of employees for the change
initiatives undertaken by the bank, and at
explaining to them why change was required.
 This was a reality check and staffs realized their
weakness and strength. It was an eye opener for
all.
 This program gave the message to the staff to do
banking with Human Touch.
 It had a tremendous effect on the staffs and they
started to work with more zeal and enthusiasm.

7.  Staff Incentives: Bank also started to give
liberal incentives and target achievers were
rewarded through cash incentives, foreign
travels, etc.

8. Findings:
 Despite the unfavourable situation, Mr. Bhatt
believed that Team SBI was one of the best in
the world and he encouraged, guided and
combined the efforts in such a manner that
they could leverage their potential and there
was a visible improvement in every sphere of
SBI.

9. Conclusion:
 Mr. Bhatt in his tenure , initiated a new trend
in the working pattern of SBI and his
leadership, enabled SBI to overcome the
situation of crisis and to achieve or, say to
regain its best shape.
Therefore, it can be concluded that
leadership is an inevitable function of an
organisation and a good leader is the one who
survives and proves himself/herself in the
critical situation.