Staff are the best Consultants for any Organisation

By Thomas Franco

The country and its Banks are using multinational Consultants who charge heavily but offer solutions without understanding the Indian reality. McKinsey, BCG, Deloitte, Ernst and Young, Price Waterhouse, and others are closely associated with the World Bank, International Monetary Fund, and World Economic Forum and offer solutions based on the ideology of these Institutions, which give only lip service to the cause of the poor. If only they had seriously analysed and offered the right solutions, there would have been no poverty, inequality, and joblessness in any country. A quick search of the web shows many of the failures of MNC Consultants. Still, these consultants are used by Niti Ayog, the Finance Ministry, and banks. In every conclave organized by the DFS, starting from Gyan Sangam in 2015 to EASE on the banking sector, these consultants are there. They make nice presentations, tutor bank chiefs to make presentations, which have ended up in sending the poor and middle class away from Public Sector Banks. (Refer Random Reflections from CFA, authored by Thomas Franco, dated June 8, 2025.)

The largest Bank in the country approached IIM Ahmedabad for changing the Governance Structure of SBI in 1971, which transformed SBI.

In 2008, McKinsey recommended abolishing 58 Zonal offices, which led to a disaster, and the Bank had to bring back the Zonal Offices.

In 2016, the same company recommended closure or relocation of 400 branches/offices to reduce expenses. This was not fully implemented.

In 2015, BCG proposed a Career Development System, which the association termed as Career Destruction System as it considered only 20% of staff as performers. After many discussions, in which the Chairman and others participated with the Association and Unions, many changes were made. But the Association’s demand to reject it was not accepted. Now everyone is unhappy with the CDS scores and is hoping that it will be given up.

News Reports say that BCG and McKinsey are employed by many public sector banks to change their HR system, which again is creating problems.

Now, the biggest bank has advertised for consultants who should have an annual turnover of Rs 500 Crores to apply. This excludes any Indian Organisation from applying. Again, MNC Consultants will be the bidders.

In an article in Finance Matters (Refer Random Reflections from CFA, authored by Thomas Franco, dated 23 February 2025), I had suggested a few things to SBI, which are equally applicable to all Public Sector Banks.

I would like to recall 2006, when SBI’s market share was going down, the then Chairman SBI, Shri O.P. Bhatt organized the Jodhpur Conclave, which was attended by 24 Union leaders, both Officers and Award. The brilliant presentation made by Com. G.D. Nadaf and an appeal to employees signed by O.P. Bhatt, Nadaf, and Prafulla Patnaik are History. The Giant could be turned around and gained back the market share. (Please read Shri O.P. Bhatt’s interview published by McKinsey.com/Media/McKinsey/Industries/).

Today, Corporates have given up consultants and use 360-degree feedback, huddles with staff, and reorganize themselves.

Today, the Public Sector Banks have brilliant employees who have competed with millions of youth to join Public Sector Banks, excellent leaders in the Association who research, analyse, and visualize the future based on grassroots feedback, keeping in mind the technological changes emerging.

When Ten Public Sector Banks were termed as weak, the AIBOC researched and brought out 3 excellent documents: Turnaround Plans for 10 banks, Laudable Performance of Public Sector Banks, and Commendable Performance of Public Sector Banks. This was just 8 years back when MNC Consultants were predicting the collapse of Public Sector Banks. Now, we are seeing tremendous profits of Public Banks but the Private Banks and NBFCs are taking huge chunks of Bank business.

It’s time for Banks and AIBOC to go back to the roots. Without spending Crores of money, Banks will get the accurate vision. Are you ready?

Thomas Franco is the former General Secretary of the All India Bank Officers’ Confederation and a Steering Committee Member at the Global Labour University.