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Mukta Magazine
New Delhi, Aug 19: Simon J Scarff, managing director, Smithkline Beecham Consumer Healthcare Ltd, who began the session on `Managing organisational change in uncertain times' at the AIMA convention, emphasised the importance of speed as a determinant in separating the successful from the not-so-successful companies: the speed to respond to the needs of the changing marketplace and translate intellectual property into actual money, separates the two.
``It is the agility to respond to the changes in the marketplace that helps achieve that extra edge,'' he said. This is specially important due to the shrinking of markets, reducing the lead time enjoyed by any company in launching a product.
The key drivers in achieving this speed are the company's intellectual assets: its people. ``Change involves a culture that is people-driven, shares influence, rewards performance and allows empowerment. So it is imperative to encourage employees to question and challenge, and alter the rules where needed in order toachieve the winning edge,'' said Scarf.
At Smithkline Beecham, he said, the change being brought about within the company was: setting up cross-functional, flat teams, with all departments working in tandem to move a new product from the stage of discovery to the marketplace.
The company is aspiring for a flat organisation, with no hierarchies and maximum flexibility, and close interaction between employees. Managers as leaders are expected to street-smart, exude high energy levels, passion, a sense of humour and adaptability to work within a team. His last word: ``Change? Manage it, and we win.''
Later, speaking on the Indian perspective in the private sector, R Gopalakrishnan, executive director, Tata Sons, also emphasised the importance of being better, faster. Change and uncertainty are natural states. So, what is important is empowering through uncertainty, rather than managing with uncertainty, he said.
At the heart of the generic challenge before the private sector is how well it crafts andexecutes a ``positive pressure migration path'' and is ready to take necessary harsh decisions. ``Many private sector companies are in trouble because of inaction or inappropriate action,'' he said. What is needed are a series of well-focussed and planned changes.
The positive migration agenda he chalked out included: Focussing on the customer; management of non-performing equity, (with a special methodology to unbundle stockholding and determine a credible criteria for core business); streamlining capital efficiency, which holds the key to sustainable growth; and better governance of board of directors, with recruitment of outstanding talent that is `complementary to each other.' ``This would help move from the conglomerate heritage to the world of core competencies,'' he said.
K G Ramanathan, CMD, Indian Petrochemicals Ltd, who represented the public sector, chalked out the PSU dilemmas of: social versus commercial obligation, price versus profitability, employment versus productivity, and controlversus authority. The need therefore, was to strike a balance in all these spheres. His PSU management agenda: reassess core strengths, rework relationships with government, rejuvenate human capital, review effort/reward nexus.
Finally, Scott R Bayman, president and CEO, GE India, expounded on the vision for his company as the Four Big Es: Energy, Energize others, Edge and Execute. Together, the four are to help GE achieve its target: a boundaryless, delayerd organisation, with new kind of leaders who have interactive skills and the vision to make tough calls.
He pointed out that the first necessity for any organisation is a vision so clear and simple that everyone can understand it and reinforce it through their actions. Other moves to gain an edge should involve: Elimination of layers of management; redefinition of cultural traits; and simple planning. ``Simplicity helps in achieving speed which in turn leads to competitive advantage in the marketplace.'' If only it were that simple.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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