In today’s volatile and uncertain economic environment, businesses face multiple crises, including financial instability, market fluctuations, and socio-political challenges. Amidst such turbulence, maintaining a positive mindset and leveraging strengths can create remarkable opportunities for growth and resilience. On 5th August 2023, a transformative Appreciative Inquiry (AI) training was conducted in collaboration with the Eastern Research Institute of Positive Science (ERIPS) for the branch managers of Lumbini Bikas Bank in Dhulikhel. This training session proved to be a pivotal moment for the participants, opening new avenues of business opportunities despite the crises. The training was met with full satisfaction from both participants and senior management, underscoring its significant impact. The training was designed and facilitated by Dr. RC Lamichhane, the CEO of ERIPS and Appreciative Inquiry Expert in Asia. This report delves into the importance of Appreciative Inquiry in the banking sector, the outcomes of the training, and the scientific basis for the positive impact of a strengths-based approach in business.
The Critical Need for Appreciative Inquiry in Banking
Appreciative Inquiry is a collaborative and strengths-based approach to organizational development and change. Unlike traditional problem-solving methods that focus on identifying and fixing weaknesses, AI emphasizes discovering and amplifying the positive core of individuals and organizations. This approach fosters a positive mindset, which is crucial for navigating crises and driving sustainable growth.
Understanding Appreciative Inquiry
Appreciative Inquiry is built on the premise that organizations grow in the direction of what they focus on. By concentrating on the best aspects of the past and present, AI helps create a compelling and optimistic vision for the future. This process involves four phases: Discovery, Dream, Design, and Destiny.
- Discovery: Identifying the strengths and best practices within the organization.
- Dream: Envisioning a future where these strengths are fully realized.
- Design: Planning and structuring the organization to achieve this vision.
- Destiny: Implementing the plan and maintaining the momentum.
Training Overview
The training session in Dhulikhel was designed to equip branch managers with the principles and practices of Appreciative Inquiry. Facilitated by experts in the field, the session covered the four phases of AI: Discovery, Dream, Design, and Destiny. Participants engaged in interactive activities and discussions that highlighted the strengths of the bank envisioned a positive future, and collaboratively designed actionable strategies to achieve their goals.
Outcomes of the Training
The training session was highly successful, with participants and senior management expressing full satisfaction. The key outcomes included:
- Enhanced Positive Mindset: Branch managers developed a more positive and optimistic outlook, which is essential for motivating teams and fostering a collaborative work environment.
- Identification of Strengths: The AI process helped managers identify the strengths of their branches and employees, creating a foundation for building innovative solutions.
- Visionary Planning: Participants created compelling visions for their branches, aligning their goals with the bank’s overall strategic objectives.
- Collaborative Strategy Design: The training facilitated the design of collaborative strategies that leverage the collective strengths of the bank’s workforce.
- Increased Resilience: The positive mindset fostered by AI-enhanced the resilience of branch managers, enabling them to navigate crises more effectively.
The Positive Impact of a Positive Mindset
A positive mindset in leadership, particularly in the banking sector, can significantly influence organizational performance and employee well-being. Scientific research supports the notion that a positive mindset leads to improved outcomes across various dimensions:
Enhanced Employee Engagement
A study by Gallup (2016) found that a strengths-based approach increases employee engagement by 73%. Engaged employees are more productive, committed, and innovative, contributing to the overall success of the organization.
Improved Customer Satisfaction
Positive leaders who focus on strengths and foster a positive work environment are better able to deliver exceptional customer service. A satisfied and motivated workforce is more likely to create positive customer experiences, leading to increased customer loyalty and retention.
Greater Innovation
The Deloitte Human Capital Trends Report (2019) highlighted that inclusive and positive leadership increases innovation by 20%. Branch managers with a positive mindset encourage creativity and out-of-the-box thinking, which is crucial for developing innovative financial products and services.
Better Financial Performance
Research published in the Harvard Business Review (2018) indicated that leaders who create a compelling vision and maintain a positive outlook enhance their team’s performance by up to 27%. In the banking sector, this translates to better financial performance, higher profitability, and sustained growth.
Increased Resilience
Positive leaders are more resilient and better equipped to handle crises. A study by the American Psychological Association (2017) found that positive psychology practices increase hope and optimism by 35%, which are critical for maintaining stability and guiding organizations through challenging times.
Case Study: Siddhartha Bikas Bank’s Success Story
The training session in Dhulikhel serves as a case study for the transformative impact of Appreciative Inquiry in the banking sector. Prior to the training, branch managers faced numerous challenges, including market volatility, customer retention issues, and internal organizational stress. The AI training empowered them to shift their focus from problems to possibilities.
Discovery Phase
Participants identified their personal and organizational strengths. For instance, some branches excelled in customer relationship management, while others had strong community ties. Recognizing these strengths provided a foundation for building innovative solutions.
Dream Phase
Managers envisioned a future where Siddhartha Bikas Bank is a leader in customer satisfaction and community engagement. They imagined branches that are not just financial service providers but also pillars of support for local communities.
Design Phase
The collaborative design phase led to the development of actionable strategies. For example, branches planned to launch community development programs, financial literacy workshops, and tailored financial products for local businesses. These initiatives aimed to leverage the bank’s strengths to meet community needs and drive business growth.
Destiny Phase
Finally, participants committed to implementing their strategies and fostering a culture of continuous improvement. They established metrics to track progress and ensure accountability. The senior management’s support reinforced the commitment to a positive and strengths-based approach.
Scientific Examples Supporting Appreciative Inquiry
The positive impact of Appreciative Inquiry is supported by various scientific studies and real-world examples:
Employee Engagement and Productivity
The Gallup study on strengths-based development found that employees who use their strengths daily are six times more likely to be engaged in their work and 31% more productive.
Customer Satisfaction and Loyalty
Companies with high employee engagement, driven by positive leadership, often see higher customer satisfaction. The Service Profit Chain model by Harvard Business School illustrates that satisfied and loyal employees lead to satisfied and loyal customers, ultimately driving profitability.
Innovation and Growth
The Deloitte report on inclusive leadership highlighted that inclusive leaders, who foster a positive and collaborative environment, drive innovation. This is crucial for banks to adapt to changing market conditions and customer needs.
Resilience and Crisis Management
Positive psychology research by the American Psychological Association emphasizes that leaders who practice optimism and strengths-based approaches are more resilient. This resilience is critical for navigating crises, maintaining stability, and guiding organizations toward recovery and growth.
Conclusion
The Appreciative Inquiry training conducted for the branch managers of Lumbini Bikas Bank in Dhulikhel demonstrated the transformative power of a strengths-based approach in the banking sector. By fostering a positive mindset, identifying strengths, and collaboratively designing actionable strategies, the training opened new avenues of opportunities despite the ongoing crises. The positive feedback from participants and senior management underscores the significant impact of AI on organizational performance and resilience.
As the banking sector continues to face complex challenges, the adoption of Appreciative Inquiry and positive leadership practices becomes increasingly important. By focusing on strengths, fostering a positive vision, and encouraging collaboration, banks can enhance employee engagement, improve customer satisfaction, drive innovation, and achieve sustainable growth. The success story of Lumbini Bikas Bank serves as a testament to the potential of Appreciative Inquiry to transform not only individual branches but the entire banking sector, ensuring a brighter and more prosperous future.
In conclusion, Appreciative Inquiry is not just a training program; it is a powerful tool for organizational transformation. The positive mindset and strengths-based approach it fosters are essential for navigating the uncertainties of today’s business environment and driving meaningful change within communities. The training for Lumbini Bikas Bank’s branch managers is a shining example of how Appreciative Inquiry can create lasting positive impacts, making it an indispensable strategy for leaders in the banking sector and beyond.
Reference:
- Gallup. (2016). The Relationship Between Strengths-Based Employee Development and Organizational Outcomes. Retrieved from Gallup
- Deloitte. (2019). Leading the Social Enterprise: Reinvent with a Human Focus. Deloitte Global Human Capital Trends Report. Retrieved from Deloitte
- Harvard Business Review. (2018). How Leaders Create and Use Networks. Retrieved from Harvard Business Review
- American Psychological Association. (2017). The Role of Positive Psychology in Enhancing Resilience. Retrieved from American Psychological Association
- Harvard Business School. (2008). The Service Profit Chain. Retrieved from Harvard Business School
- Cooperrider, D. L., & Whitney, D. (2005). Appreciative Inquiry: A Positive Revolution in Change. Berrett-Koehler Publishers.
- Bushe, G. R. (2011). Appreciative Inquiry: Theory and Critique. In D. Boje, B. Burnes, & J. Hassard (Eds.), The Routledge Companion to Organizational Change (pp. 87-103). Routledge.
- Cameron, K. S., & Spreitzer, G. M. (Eds.). (2012). The Oxford Handbook of Positive Organizational Scholarship. Oxford University Press.
- Fredrickson, B. L. (2001). The Role of Positive Emotions in Positive Psychology: The Broaden-and-Build Theory of Positive Emotions. American Psychologist, 56(3), 218-226.
- Luthans, F., Youssef, C. M., & Avolio, B. J. (2007). Psychological Capital: Developing the Human Competitive Edge. Oxford University Press.
