In India's shortage economy, many organisations have grown fat and complacent, and this will, sooner rather than later, change. As long as the mindframe persists that the customer will come to you, because of monopolistic advantages, a more agile competitor will enter the market, reach out and take what was yours.With multiple player games, an exercised team is essential. Today's sale teams are realising this weakness and many are actively addressing the teeth to tail and productivity ratios. Still others are throwing more people at the problem creating inefficient cultures, and wondering why things aren't working.
Pharmaceutical and several OTC product companies are notorious for large sales teams. New territories and markets are opened with ``magic'' ratios of man: doctor: chemist. Driven actually by customer education and the shifts in discretionary income of a growing nation, the system provides several disincentives for individual performance.
Protected by powerful trade unions, the opportunitiesfor growth are limited, and the smarter individuals either opt out or are zombieised into a physically-present-but-mentally-absent existence. Even contemplating corrective action is abhorrent because the organisation is afraid of losing what market is already there -- albeit shrinking steadily in effort expended by individuals.
Breaking out of this numbers game requires constant challenge, and renewal systems. One company I know insists that the bottom 20 per cent of its sales team each year is asked to go (HCL Corporation). This is somewhat violent to my mind as it negates commitment by leaving the individual open to market vagaries, and destroys reputations by comparison with yardsticks that perhaps may be superhuman. But the need to stay competitive requires that the measurement of performance, and efforts for improvement, the retention of the best, and the weeding out of the weakest, be institutionalised.
Depending upon the image you wish to project (you can be sure it will!), this process can beelegant or crude.
The myth of `consolidation'
Organisations frequently go through phases where they talk about consolidation. This is usually said in a tone that implies carefully considered strategy by the management. When advised against this, they look pityingly at the poor consultant who obviously does not understand the needs of the business, and go ahead with declaring the grand consolidation.
However, this rarely lasts, since the environment will simply not hold still for long enough, and realities of edge longevity require situational response. In other words if you want to maintain edge, you have to keep moving.
The truth is that it is the leadership which is feeling burned-out with the effort of pushing the cart, and needs a break or refresher to recoup energies. This is perfectly normal, and needs to be addressed. However, the rest of the organisation does not need to go on vacation.
There are periods of time when organisation activity outpaces the systems for control, and this iswhere the twin issues of inadequate delegation and lack of continuous systems upgrades are to blame for the burn-out. This is where a shared vision results in multiple people pulling the cart.
Growth has a momentum, and so does the energy expenditure of people within. Slowing the pace for extended periods of time will create problems when the time comes to step up again. It is easier to lose momentum. than to gain it.
Making change work for you Can you see the future? Are you confident of it? Are you willing to go ahead even if your vision of the future is fuzzy? If you can plan for two or three most-likely scenarios, then you have an edge on events. If your actions of today can predispose the environment towards the direction you want, you are a winner.
To be able to do this, what is needed is broad-based forecasting systems. Technology, market practices, consumer, manpower, economic and social predictors require constant attention. It is in these areas that the real leapfrog advances have been made bysmart organisations. Environment scanning and information services are readily available at reasonable cost.
Providing information support, and encouragement to your planning group is your job as a leader. The building-in of resources for continuous learning into the organisation is your investment for the future.
The creative advantage requires the investment of leadership. It is not only the number of ideas generated that matter, but even those which are discarded and regenerated, tried and failed determine organisation agility. Experimentation and effort create conditions which continually test boundaries and provide stretch. The learning that ensues will determine capability.
Experimentation will only occur in a climate of safety, and that is what enlightened leaders provide. Allowing risk. both individual and organisational, calls for courageous leaders determined to create champions even if personal reputations are at stake. This is a tough mindframe to inculcate, and requires deep, notsuperficial, faith in people.
Surviving Tomorrow
Rajiv Shaw
Vikas Publishing House
Price: Rs 325
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
