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SAMPATH BANK
PLC
USING STORYTELLING TO
BUILD REPUTATION
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PART – B

TASK TWO - Using of Storytelling to Build Reputation in Samapth Bank

1.1STORYTELLING AS A CORPORATE COMMUNICATION

1.2The Concept of Storytelling

A corporate story is 'a structured textual description that communicates the essence of
trie company to all stakeholders, helps strengthen the bonds that bind employees to the
company, and successfully positions the company against rivals. It is built up by
identifying the unique elements of the company, creating a plot that weaves them
together, and presenting them in an appealing fashion' (van Riel & Fombrun, op at, p.
144).

van Riel & Fombrun suggest that a good corporate story should be no longer than 400-
600 words: a short but distinctive narrative about the organisation that (a) helps
stakeholder audiences to understand it better and (b) distinguishes it from other entities
in the reputation marketplace (ibid, p. 146).

1.3Critical Appraisal of Storytelling

The concept of storytelling poses strong advantages as described below;

• Uniqueness to the organization- Unique corporate features creates distinctive

views and opinions about the organization among the audiences which is unique
to the particular organization. In comparison to the competition this form of
communication results high level top of the mind awareness, credibility, reliability
among audience about the organization.

• key ingredient to managing communications, education, training, and

innovation in the 21st century- People believe the stories of ancient ancestors
which were communicated to us via stories and have high level of credibility.(Eg-
Bible, Thripitaka in religions.) Same as for coporates can identify unique features
to communicate, educate, train and innovate.

• The use of imagination enables stories to be remembered, enhances critical

thinking and gain the attention of the audience

• Enables the audience to be exposed to a moral dilemma or a problem-solving

exercise
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It has the following disadvantages as well;

• Storytelling has a lot of different ways to look at it-It could be in the sense
of not being truthful, expanding on something that isn’t real, it can be used to
one’s advantage or to shift a real experience into something more imaginable
and it can even be based on nothing but a wild imagination.

• Reach – inability to reach to a larger audience at once. It has take audiences

separately.(eg- internal staff, media, marketing agencies, etc.)

• Availability of Key features of the company – the new companies will face
difficulties in finding key features to narrate. Choose of a key feature is extremely
important to communicate the right message.

2.0 STORYTELLING POTENTIAL AT SAMPTH BANK

Sampath Bank Plc incorporated as Investment & Credit Bank Limited in 1986 and
commenced business in 1987 softly.Bank became popularly known by the
name, Sampath and accordingly the name of the Bank was changed.

By the end of the 1st year, the Bank employed 94 staff members comprising all executives.
Following are some of the products/innovations that were introduced to the Industry by the
Bank in 1987-1990 and at present the bank is well known for its innovations.
1.Acheque guarantee card.

2.A saving account with checking facilities.

3.Extended banking hours till 3.00 p.m. for the first time in the country.

4. Master Card was introduced to Sri Lanka (under license from MasterCard
International Incorporated in USA).

5. Uni-Banking System was introduced to the country for the fist time in Sri Lanka.

Asiamoney the prestigious financial magazine in Asia voted the bank as the BEST
COMMERCIAL BANK of the year 1996 in Sri Lanka. With major milestones in the history the
bank became the “Bank of the year 2009” by the highly acclaimed magazine “The
Banker” financial Times London.

Currently they have holding stake in several Subsidiary and associate companies locally as
well as overseas.

Company Vision -The growing force in the Sri Lankan Financial Services.
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Products, Services and the TG

They primarily focused in Personal Banking and Corporate Banking targeting individual,
retail, wholesale customers.

They also involve in investment banking, Stock Brokering, Primary dealing in government
securities, Leasing & Factoring, dealing in Commercial properties, IT, etc. Footprints in
Bangladesh offering Leasing, Merchant Banking, Stock Brokering, credit cards, etc. And
Documentary Collection, Documentary credit in Hong Kong is remarkable.

Sampath Bank Brand

Based on the survey carried out the corporate brand itself is well attached to mass
community of the country and its culture due to its worm service, the organizational cultural
match with Sri Lankan culture and religious traditions, etc. The brand has high integrity
which represents a true Sri Lankan in a consumers mind. However the brand lacks prestige,
esteem factors as well.

Market Structure

Status quo of Sampath Bank

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Based on research reports published by the industry experts the bank had a successful year
in 2009 with vital KPI’s crossing its mark even with the financial crisis. The growth rate of
the bank reached highest in the industry resulting major boost in the share price (increased
by 287% from 03/2009-09/2010)

The bank is intending to grasp more opportunities in the emerging economic development
since the end of ethnic conflict in the country.

Stakeholder Relationships

The internal staff, media, government, depositors, shareholders are some of the valuable
stakeholders our bank considers. We organize various recreational activities to maintain
relationships between the stakeholder groups and us such as annual foreign trips for
employees, media days, Lobbying, etc.

3.0 STORYTELLING OPPORTUNITIES AT SAMPATH BANK

3.1 Missed acquisition by a competitor bank

Sampath Bank has a short history of Banking as against to core rivalry Hatton National Bank
(HNB) and Com Bank started more than 100 years ago.

In early 2001 the bank was identified by a big fish-HNB to be acquired. The HNB chairman a
leading businessman and bureaucratic negotiated with our management and director board
and it was decided. However in this situation bank was renowned for its service standards,
technology, close relationship with all its customers and blended in to Sri Lankan culture. In
this situation bank employees organized protest campaign against the acquisition where
strong voice was generated via key stakeholders like Buddhist monks, internal employees,
media, senior citizens.

The unity & loyalty of the staff was tested in this situation where almost all the staff
members were working day and night to safeguard their bank. In the later stages more than
2,500 protestors were against the agreement and it was lifted. It was a pure victory of staff
and still the banks staff is very much committed to the bank and today Sampath has
become the 3rd largest and highest paying commercial bank in the country. All staff believed
that “if we work honestly to the organization it will pay back all in our lifetime”
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Justification – the above incident is very powerful in terms of strength of the

employees. This will be really effective to train, develop, motivate and to build
moral strength of the existing employees, new recruits and potential employees.

3.2 Loss of Trust among depositors

Mr N U Jayawardhana was the 1st Chairman of the Bank in 1986 and he was famous
personality in the banking industry for more than 40 years of service to the nation in Central
Bank and in other Commercial banks. He was the Chairman of our bank and in another
finance company “Mercantile Credit Finance ltd (MCF)”.

Unfortunately the MCF collapsed after few years of commencing business. This was a critical
incident to us where a rumor was passed among most of Sri Lankans that due to poor
management and misuse of funds by the Management under Mr Jayawardhana caused the
closure of MIB. Consequently depositors rush to withdraw their savings.Mr Jayawardhana
addressed in public about the situation and requested to not panic. The Central Bank and
the President of the country endorsed the sustainability of the bank as well. However the
bank was extremely aggressive in handling the crisis and paid all depositors on demand
without embarrassing the customers. The bank regained its lost reputation and
deposits in quick time by reacting in an aggressive manner without harming the
intellectual value of customers towards the bank.

Justification-the value in rebuilding the corporate reputation, trust among all

stakeholders, learning outcomes of negative associations can be well
communicated to internal staff and depositors.

3.3 Corporate Management decisions at a Garage came a long way.

The bank was a founded at a meeting of “World fellowship of Buddhist”. Thereafter the
initial corporate management meetings were held in a Garage at a personal
residence of Mr Kannangara an elected Assistant General Manager. Thereafter the
bank has accepted its initial deposit at its 1st branch in Colombo City and the historical
branch is named as “City Office”.

The initial decisions in a garage has came a long way forward within a shortest
period of time of 24 years to become the 3rd largest Commercial Bank in the
country when comparing with the leaders whom are in the business since 1890’s.The banks
growth rate is still the fastest among the industry.
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Justification-a great incident to illustrate how the bank has developed from being
an infant in the industry to compete with giants in a very shorter period of time.
It will boost confidence among all stakeholders.

4.0 INTRODUCTION AND MANAGEMENT OF STORYTELLING AT

SAMPATH BANK

Storytelling is a new concept to Sampath Bank. Currently the bank does not deploy it and it
will bring valuable results in managing reputation. The level of belief in stories by the
audience, power of stories becoming an ingredient in problem solving, easy to be
remembered are some of the key advantages it has. Whilst inability to reach large
audiences, lack story opportunities available to Sampath Bank are some disadvantages it
poses.

4.1 Creating Corporate Stories for Sampath Bank

Van Riel & Fombrun (op cit, p. 149-158) set out a process for arriving at a sustainable
corporate story, which is applied to Sampath Bank as follows in view of managing
reputation.

Step 1 – Positioning Sampath Bank Vs Rivals

In order to analyze competitive position of the bank I have carried out a survey covering
nearly 50 participants. It has included 15 internal staff members, 20 customers, 15 other
stakeholders. The relevant data was collected via questionnaire using open and close ended
questions. Since Surveys are useful in describing the characteristics of a large population,
many questions can be asked about a given topic giving considerable flexibility to the
analysis and observer subjectivity is greatly eliminated; I have selected it. However since it
is standardized some participants find it difficult to handle (nearly 20%).
Based on the above key competitive advantage of the bank is close relationship with Sri
Lankan culture and technological breakthroughs. Also the participants stated the bank is
more focused to retail segment and weaker in catering the corporate sector. Almost all
participants believes the bank is a truly a Local bank and the 3rd largest private commercial
bank in the country.

Step 2 – Link to Corporate identity

The organizational distinctive nature and central facts was tested in the above survey itself.
The responses via internal staff and management the above was determined. Many value
the Sampath Brand and culture as unique and most of them who loves the
Sri Lankan culture works at Sampth Bank.
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Step 3 – Link to Corporate Reputation

External perception is key factor of Reputational Management. Reputational research was a

part of the above survey and most of the above participants believe Sampath Bank is an
innovative, socially responsible, growing bank. However small number perceives it only
caters for Buddhist community.

Step 4 – Plotting Stories

The storytelling opportunities mentioned above can be materialized based on the above
starting points. We must ensure to produce valid evidence, tone of voice, promise, tone of
voice and a suitable logical outline in presenting the above three opportunities to various
audiences.
Step 5 – Implement the story

Once the final presentations are raised we can communicate the relevant stories via
different mediums. Internal media such as intranets, intra mails, booklets for internal staff,
annual report, corporate advertisements in various magazines (eg-The Banker), Web site,
etc.

Step 6 - Monitoring the story effectiveness

Stories need adaptation to various stakeholders. Feedbacks from these stakeholders are
valuable to improve the stories. Feedback via blog sites, Comments made on the Sampath
bank web, Suggestions made by internal staff, stakeholder research can be used to monitor
the ongoing impact of the story, public perception, etc.

4.2 Change Management, Other Developments and Challenges for Storytelling

Storytelling as a method for corporate communication is new and needs to sell the concept
within the bank. In particular skills required identifying opportunities and developing stories,
effectiveness of execution, monitoring the ongoing effect of stories and feedback
improvements of stories are key factors to consider. The flow and the tone of the story are
extremely important to keep the audience attracted to the story. Training and development
for the staff responsible is essential prior development and execution of stories. A cost Vs
benefits analysis obtained via research of storytelling as a corporate communication is
important to assess the effectiveness and to manage political resistance of the strategy
within the organization.