In my previous article I depicted the picture of the Indian Banking for the 2025 where I ended up with the approach and implementation of balance score card Implementation of Balanced score card in the PSB. In this article I am providing a glimpses of the ides for the implementation of balance score card in the PSB which would create the next level of revolution since the competitiveness is highly going to be demanding over 2025.

Learning and growth curve is going to be the highest priority for the banking industry since innovative products are going to be the key for the survival for the PSB banks compared to private banks. Moreover once the new banking license comes into play the depth of competition is going to increase and reach a new altitude althogether.PSB needs to forgo the traditional employee training and learning strategies and adapt to new strategies. The best way to improve the banking learning and growth curve is simply to diversify the cost part of the employees for the banks. A part of the cost of banks employees needs to be made variable so that it is linked with the target of the banks to create value over the long term. This would provoke and guide as well as motivate the employees to strive harder for learning and growth which would finally make the PSB banks to be more competitive along with private banks. At the same time rapid retirements over the next decade will lead to a disappearance of skill sets and know–how at senior levels of the organization.

Consumer retention and satisfaction is being least factored by the PSB banks. Well in my part and those of my readers they could easily figure out the difference between PSB customer service and private banks customer service. Hence PSB banks needs to be more focused towards consumers. This is the very particular reason why PSB banks needs to convert a part of their cost into variable part so that employees are more cautious regarding retention and building client base. PSB banks are running like free lunch business which is not going to be viable in the near future.

For example SME channel is being least treated by the banking industry particularly by the PSB banks. This is one of the serious problems that the banking industry is creating for the economic growth. At the same time the majority of the bank’s books liabilities consists of debt belonging to the capital rich companies in terms of Asset base.

Customer relationship needs to be created to an new high since that is one of the most lagging segment under the PSB banks. Banks needs to use extensively the CRM segment to dig out the big data analysis and develop niche relationships as well as create new base of clients from the old database.

Learning and growth curve of the balanced score card would help to develop the internal process which is another pillar of the balanced score card. Smart phones and online business segment has changed the demographics of internal process. Hence banks needs to invest extensively on IT process management followed with efficient use of internal process by the consumer. Internal process and employee growth process should be designed in such a way that it helps to create brand for the young candidates.

Moreover employee motivation would play the key role behind the success of the balanced score card process .Hence celebration above the average business growth should be imparted within the employees. This would build a efficient performance management system(PMS). For example, identification of top 30 employees of a PSB bank and incentivizing them for their performance. Well money and recognition are the best motivators other than words. This would reduce the forceful implementation of the balanced score card within the banking network.

Well above all there is a profitability of the PSB banks which is the key factor to survive in the coming competitiveness market. Banks should focus on the 3 factors of the balanced score card then automatically the banks would be able to achieve the profitability matrix. When establishing an banks in the Rural place would need a different approach since their cost factors, employee factors all would be required under a different perspective. Use of technology to drive the PSB banks would be the most essential requirement in the coming days.