Corporate realignment, new product ranges and higher customer expectations have put immense pressure on the Indian commercial banks. They are being compelled to re-position themselves with innovative strategies. Banking being a knowledge-based industry, administrative units will have to play an active role in enhancing the intellectual capital of its employees along with its conventional role of managing information.

A McKinsey study states that ``in service industries, organisation of labour rather than capital investment determines productivity levels.'' According to Dave Ulrich, intellectual capital = competence x commitment. Therefore, a bank's growth depends on both the parameters.Competence is the ability and skill of an employee to accomplish an assigned job within a given timeframe (or less) effectively with a zero-defect approach. This encompasses efficiency, effectiveness and innovation which leads to economies of scales. To achieve this among employees, competencemust be aligned with the bank's business policies/strategies. This comes from need-based and timely institutional training on the bank's objectives with special emphasis on learning from job experience so as to develop the employees' problem-solving and leadership capabilities. Competence also comes from exposure to internal and external talent, wherever possible, for knowledge enrichment so as to break obsolescence.

A branch manager should distinguish between performers and non-performers. Performers should be cited as role models for new entrants. Retaining productive employees must be a priority, especially where specialisations are concerned, by providing proper work environment.

Exposing the staff to other service industries like foreign banks and FIs also helps. Banks must compete for the best customer service trophy to bring in team spirit. The staff can be involved in conducting customer census/documenting customer information profiles to arrive at branch's share of business in the operating area.Similarly, special care must be given to re-engineer the `obsolete' middle management flab at the big branches through customer orientation, team work, multiple skills, enterpreneurship, training and new technological skills. This essentially comes from learning to learn and unlearn.

Commitment is a deeply-felt loyalty of an employee towards the organisation. This flows from correct understanding of his/her role and responsibility towards the organisation's objectives and goals. Branch managers should understand that commitment springs from attitudes of the employees, which result in motivation. A manager must be able to gauge the feelings of the employees and facilitate a change in order to motivate them. Here, developing a sense of belonging is important. Initially, the staff or the union can be involved in less controversial issues like maintenance of the building, electricity, water supply, canteen management and sports and later to issues like job rotation, job enrichment, business strategy,productivity and customer service. But the final reins should be in the hands of the branch manager. All legitimate demands of the staff should be accepted.

Work culture should be stimulating, open and pleasant, based on dignity. Empower employees with information through better communications so as to dispel any misgivings.

Banks must give technology to the employees to make their work error-free. In a service organisations, intellectual capital is a great facilitator for key customer relationship. A bank which invests in it develops a `corporate work culture' and paves the way for banking excellence with personal touch.

The author is Deputy General Manager, State Bank of India