Shekarsan

Saturday, September 4, 2010

HR: Merchants of depression or messiahs of motivation!

There was simply too much at stake and somebody had to bell the cat. This startup company, now eight years old that went recently public, was no longer a fledgling privately held enterprise. It boasted of multinational clients being served by over 3000 employees drawn from the fields as wide ranging as engineering, off shore banking and market research. While people indeed mattered most, people management was however a different story altogether. Sad but true; in the eight intervening years, nine heads of Human Resources had entered and exited, with significant periods for which the position remained vacant in between.

Narottam Bhai, a prominent industrialist o the board, did precisely what had to be done and no one else was willing to do. ‘If people are our most invaluable assets, why do we have to hire a new HR head every once in a while?’ thundered he. The room and the CEO fell silent. At his instance, a reputed consulting house was invited to contact the erstwhile incumbents for a candid interview.

The findings, tabled subsequently for the board members to take notice of, brought out the predicament faced by the HR heads in their line of duty that had never ever featured before.

    1. HR personnel had to balance their administrative workload with a substantial amount of developmental effort. the fast paced business and demanding customers required them to change tack and transform the policies and practices at a faster pace than the organization was willing to embrace. HR enjoyed little sympathy from the rest of organization for the ‘breathing space’ they needed to tide over the challenges.
    2. Everyone knew that people feature on both sides of the balance sheet; they become liabilities if not developed into assets. Still the best and deserving ones were never released to pursue developmental work. Consequently, while the best ones left, the budgets for training were spent on those who never made use of the investments made in them. Meanwhile, HR personnel were themselves kept so busy developing others that they hardly found the time to invest in their own development!
    3. By design HR is meant to be an integrative function. They made efforts to bring the might of the management to bear on a single goal; by default however, businesses remained unchallenged in their efforts to retain their fiefdoms; assert their own personality and uniqueness.
    4. CEO’s and the board were always seen to be either vulnerable or sympathetic to the business managers in the short term and HR managers in the long term. HR had an obligation to caution the CEO and they claimed to have done so, but failed.
    5. “HR is felt the least, when people practices is claimed as a Corporate virtue”, they said. Business managers liked to keep the privileges of HR to themselves but passed on the ‘people issues’ to HR. Consequently, the business mangers gained a reputation for being ‘friendly and affable’, while HR acquired the ignominy of being ‘tough minded and task oriented’. There was a soft bigotry between mediocrity and permissiveness that went unchecked.
    6. Meanwhile the organization could never achieve the right balance between automation, that demanded standardization and personality considerations that required making due allowance for exceptional discretion. Rigidity of the automated responses ran directly in the face of the flexibility needed to sustain a rapid learning and change oriented work culture.
    7. Finally the system of MIS automated the wrong dials: while Financial indices are a lagged measure and happen much after the event, HR needed early warning metrics. Using financial measures to evaluate the performance of HR is like driving through a fog using the rearview mirror. Unfortunately, much of the HR metrics were ‘soft’ that the number driven czars of management had little patience for.


Narottam Bhai broke the silence. “The problem we have here is more serious than what I had imagined. Are we such an unsafe place to speak up? Why else would our HR mangers who know exactly what it is that is ailing us be so tongue tied as to suffer and sulk in silence rather than speak up and get heard? What do we as senior management need to do for the HR community to feel truly listened to? HR can become messiahs of motivation or merchants of depression depending upon how they are treated.”


Before we hire the next HR head, let us decide how we may want to treat them in the future?

Shekarsan


Retrospective commentary: Narottam Bhai invited a speaker to address the board on the subject of ‘Primal leadership’. Most managers, like the Lion that roars in the forest for no apparent reason, is often unaware that they are scaring the other animals away and compel them to take cover. Likewise the senior managers need to be aware that their moods and conduct, however unintended and disguised they may be, send signals, often of the wrong kind, down the organization. They should become aware and take responsibility for the waves they create, howsoever unintentended!

Friday, August 20, 2010

Want to get rich? Stop picking one’s own pocket first!

My Japanese Guru, Akibasan, was invited to India to deliver a talk on ‘how a Nation can become wealthy’. He

arrived a few days earlier at New Delhi and was keen to visit the Taj Mahal. I was deputed to escort him to by road. I

felt India was a much poorer Nation, compared to Japan, and wondered what Akibasan might share at the conference.

We went to Agra and Jaipur and returned back to the hotel in Delhi. As I took leave of him, he enquired if I was

going to be attending the talk he was meant to deliver. I hesitated because it was meant for CEO and board of

Directors while I was a mere officer in a a Junior Grade in the Administration department. Sensing my discomfort, he

flashed out a special invitation bearing my name and asked me to be his guest.

“We are all born rich; but it is in our minds we make a choice to be rich or to remain poor!”

For a Japanese such as I, we do not have the yearlong Sunshine not do we make the choicest of Indian curry. We

do not win beauty pageants nor as we the envy of the world of a generation of technologists so fluent in English.

Most of our houses are smaller than your garages and we do not have the rich heritage of multitude of religions, local

dialects and festivals that find an occasion to celebrate each living day. It makes me wonder why, of all the Nations, you

should feel you are poor. On my way around to the Taj Mahal I thought hard and discovered why: I believe you are a

Nation that should stop picking your own pocket.

If you are shocked at my discovery, let me present you with some irrefutable facts:

You pay a committed sum as monthly salary to your employees as a ‘standard.’ But, as managers, you have no

difficulty accepting an ‘average’ performance. Why? Because you think it is difficult for an individual, unlike a

machine, to be consistent in their output. Yet when Chicken can lay eggs daily with complete consistency, you believe

human beings are incapable of performing with consistency. Instead you ask employees to be creative about doing

the basics and reward their inconsistencies.

Similarly, you feel justified in charging a ‘standard price’ to your customers. Yet, when your sales and service

personnel deliver substandard products and services, you expect your customers to tolerate your inconsistencies with

patience and understanding. By annoying many and pleasing some, you may mistakenly assume that in the end it

‘averages out’! so why make such a big fuss?

We in Japan made the same mistake.

We were fooling ourselves into believing that by maintaining an ‘average level of performance’ we can win over the

world. It is at time of the Second World war that we were surprised to find only 10% of our bullets and 30% of our

aircrafts as being battle worthy. After the war, we discovered the same to be true of out telephone lines and domestic

equipments. Japanese people, polite as they are by nature, meekly accepted ‘average products and services, until our

Ministry of Planning appealed to them to revolt. That made all the difference.

“ My message today is this: If you want to be rich, please stop picking your own pocket!’.

Stop averaging our good products with bad and settle for something in between.

A bad or rude behavior does not make up for serving with grace and character.

Overworking a few to serve the needs of several idlers is no passport to prosperity.

It is not merely enough to know how to count money.

It is even more important to know how stop waste and convert your efforts into wealth.

The question is how much of your money is invested in converting your impoverished minds into

asset generating wealth.

That meeting changed my entire attitude towards life, growth and prosperity thereafter.

Want to get rich? Stop picking one’s own pocket first!

My Japanese Guru, Akibasan, was invited to India to deliver a talk on ‘how a Nation can become wealthy’. He

arrived a few days earlier at New Delhi and was keen to visit the Taj Mahal. I was deputed to escort him to by road. I

felt India was a much poorer Nation, compared to Japan, and wondered what Akibasan might share at the conference.

We went to Agra and Jaipur and returned back to the hotel in Delhi. As I took leave of him, he enquired if I was

going to be attending the talk he was meant to deliver. I hesitated because it was meant for CEO and board of

Directors while I was a mere officer in a a Junior Grade in the Administration department. Sensing my discomfort, he

flashed out a special invitation bearing my name and asked me to be his guest.

“We are all born rich; but it is in our minds we make a choice to be rich or to remain poor!”

For a Japanese such as I, we do not have the yearlong Sunshine not do we make the choicest of Indian curry. We

do not win beauty pageants nor as we the envy of the world of a generation of technologists so fluent in English.

Most of our houses are smaller than your garages and we do not have the rich heritage of multitude of religions, local

dialects and festivals that find an occasion to celebrate each living day. It makes me wonder why, of all the Nations, you

should feel you are poor. On my way around to the Taj Mahal I thought hard and discovered why: I believe you are a

Nation that should stop picking your own pocket.

If you are shocked at my discovery, let me present you with some irrefutable facts:

You pay a committed sum as monthly salary to your employees as a ‘standard.’ But, as managers, you have no

difficulty accepting an ‘average’ performance. Why? Because you think it is difficult for an individual, unlike a

machine, to be consistent in their output. Yet when Chicken can lay eggs daily with complete consistency, you believe

human beings are incapable of performing with consistency. Instead you ask employees to be creative about doing

the basics and reward their inconsistencies.

Similarly, you feel justified in charging a ‘standard price’ to your customers. Yet, when your sales and service

personnel deliver substandard products and services, you expect your customers to tolerate your inconsistencies with

patience and understanding. By annoying many and pleasing some, you may mistakenly assume that in the end it

‘averages out’! so why make such a big fuss?

We in Japan made the same mistake.

We were fooling ourselves into believing that by maintaining an ‘average level of performance’ we can win over the

world. It is at time of the Second World war that we were surprised to find only 10% of our bullets and 30% of our

aircrafts as being battle worthy. After the war, we discovered the same to be true of out telephone lines and domestic

equipments. Japanese people, polite as they are by nature, meekly accepted ‘average products and services, until our

Ministry of Planning appealed to them to revolt. That made all the difference.

“ My message today is this: If you want to be rich, please stop picking your own pocket!’.

Stop averaging our good products with bad and settle for something in between.

A bad or rude behavior does not make up for serving with grace and character.

Overworking a few to serve the needs of several idlers is no passport to prosperity.

It is not merely enough to know how to count money.

It is even more important to know how stop waste and convert your efforts into wealth.

The question is how much of your money is invested in converting your impoverished minds into

asset generating wealth.

That meeting changed my entire attitude towards life, growth and prosperity thereafter.

Saturday, June 19, 2010

The factories of hidden waste that the awards failed to ventilate

Sunil Kumar Awasty, the CEO of the 100 Million $ public limited IT company was on the look out for a smart MBA to handle a very sensitive portfolio of managing press publicity and investor relations. Given the level of influence Balakrishnan Senior had as a board member, Sunil looked at the resume of Ramesh Balakrishnan, his only son, and decided to award the position to Ramesh. Ramesh having just then completed his MBA in the US, found a ready job in India too tempting to let go of and promptly assumed charge.

Ramesh took to the assignment with great enthusiasm. This job gave him a sweeping view of the operations of the entire company. In addition it gave him the much needed visibility with very well informed and forward thinking community of bankers, press and investment advisors. It was intellectually stimulating and financially rewarding as well.

Sunil, feeling he was not getting full value out of his investment in a US educated MBA, wanted Ramesh to design a media event that ventilated the unique achievement of their company. He asked Ramesh to consolidate all the relevant information about the various awards and citations they had won over the last ten years into a dossier. By projecting the company’s achievements as a highly distinguished and qualified practitioner of scientific management to the investors, they could improve the valuation of the company by several folds.

Unimpressed, when Ramesh continued to watch, Sunil pointed to the various audit certificates adorning the walls issued by bodies worldwide:

  • ISO 9000 and 14000. They are getting ready to be certified on ISO 22000 on CSR next
  • 300 people are certified as black belts; another 200 of the 8000 employees pursuing lean six sigma certification
  • They are challenging the MAKE award ( Most Admired Knowledgeable Enterprise)- next only to Infosys
  • They have been certified at Level 5 on CMMi thrice and PCMM twice by the Software Engineering Institute, USA
  • Their ERP is almost installed and fully automated

Sunil exhorted Ramesh to cheer up and appreciate the heritage that was going unnoticed and unappreciated. Could Ramesh consider the sterling opportunity his role offered him to educate the share holders about the virtues of the company they had invested in ? Could he get them to appreciate the value of the management practices that had stood an independent examination from so many bodies of international repute?

That night, at the dinner table, Balakrishnan Senior found a pensive and taciturn Ramesh. Something was definitely eating away Ramesh from the inside, felt he.

“Can I be of any help?” asked Balakrishnan Senior.

“ Dad, how do you refuse politely to do something to a CEO when you are sure he is headed up the wrong direction?”.

That shook up the father.

“Why do you ask? I have known Sunil Awasty for twenty years and he is a thorough professional ? He would never dream of asking you to do anything that was unacceptable. What has come over now?”

Ramesh continued. “ Sunil knows very well that our financials are so stretched every month that unless we bill for a clear 21 days of work every month, we are unsure of meeting even the monthly payroll. We had engaged a young team of Business analysts to trace the way our investments in cash go through various departments to generate cash and bring it back into the system. They not only traced the leakage at every step of the chain but also found out that it takes us 270 days to bring back a Rupee we invested. In other words, ( pointing to the illustration below) when you put in Rs 100 into the system, you get merely 70 rupees back because there is a leakage of 5% at every point it crosses the departments.”

Resources Invested


Talent Used up


Decision Quality


Supplier Quality


Product Quality


Quality of access to Market


Quality of Customer care


Quality of Financial prudence


95%

95%

95%

95%

95%

95%

95%

???

100


95


90


86


81


77


73


70



“ Tell me dad. You are on the board of this company. Where should Sunil Awasty focus his attention? Should be stop the ‘factories of waste’ he is overlooking or humor the shareholders about the colorful certificates he has managed to get from the world, over blowing up a fortune of shareholder’s money? Do we have a reason to celebrate at all?”

Balakrishnan Senior was perplexed about the situation but felt very proud of him.

Ramesh had inadvertently, but brilliantly, pointed out the failure of the CFO and the audit committee to alert the board to a potential business risk. He encouraged Ramesh to persist with his idea and resolved to precipitate the subject at the next board meeting.

Sunday, June 13, 2010

Retrospective commentary: Satwinder's predicament


Satwinder discovered that, regardless of seniority, if there was one common failing across the organization it was this: everybody knew about the problem but no one had the courage to ventilate it. Why? Fear of rejection or getting shot. When he learnt about the farewell party being organized on the eve of retirement of one of the senior directors, he slipped in a management skit that told the tale and no one could be blamed. Shakespeare was right: Many a truth is spoken half in jest!

Thursday, June 10, 2010

Knowing that we lose money, do we really want to know why?

This company, undertook turnkey projects globally and had sizable order books to last another 5 years. The board took a serious notice of the alarming rate of increase in the instances of customer complaints, legal suits on performance shortfalls and cancellation of orders. It was clear that competition from Chinese, Taiwanese and Korean companies was getting intense; they had acquired a reputation for undertaking larger projects lower costs and shorter delivery cycles. In a few cases, the Scandinavian companies were given the job of designing, which was more profitable and prestigious, reducing the role of the Indian company to being a mere labor supplier and site supervisor. The CEO was advised by the board to infuse fresh blood into the company to arrest the decline and present a clear strategy to regain their market share.

Satwinder Narang, one of the management trainees, vividly recalled the welcome address of the CEO during their induction program. Taking a great deal of pride in ‘his’ team, the CEO had proclaimed, “Everybody in my company works very hard. We have reached this far because of the untiring efforts of the workers and senior management. While extending a warm welcome to our ‘associates’ drawn afresh from colleges, I would urge you all to emulate the culture of dedication and transparency instilled by your seniors.” The meetings ended with a customary vote of thanks being proposed by one of the inmates of the incoming batch of fresh employees.

Soon thereafter, Satwinder was assigned the task of identifying the scope for making additional profits and containing the room for possible leakage of profits leading to losses. After having toured the various departments he had been assigned to study, it was time for him to turn in his report. A sample of 25 out of the 100 plus projects that he had studied showed that any project could potentially lose money under six headings.

All trainees, like him, were due to be assessed for their aptitudes by an assessment board that included the CEO. Candidates that came up with directly actionable findings will be given independent charge of managing the projects and posted overseas.

While the prospects for professional visibility and faster career growth were a distinct possibility, there was considerable anxiety about the level of readiness and receptivity of the top management to the somewhat ‘brutal’ findings the project report contained. Was the management really serious about knowing the shortcomings and doing something about the business?

When Satwinder alluded to virtues of openness that the CEO mentioned during the induction program, the seniors merely chuckled in discreet silence and persuaded him to exercise discretion. Satwinder became even more uneasy when he consulted his seniors. His HR guide encouraged him to be bold but advised him to verify the numbers and the logic so that his report could not be dismissed as the work of an amateur. On the contrary, his mentor, drawn from the business stream however, cautioned Satwinder on the need to contain his enthusiasm lest he be perceived as being a nit picker and an upstart.

Should he play safe or be bold and feel sorry?

Was there a danger of ruining one’s career prospects by tabling facts that may not be of very sympathetic towards the top management? How to know and whom to ask for advice, wondered Satwinder?