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elets PSU Summit 2014 - M P Eshwar


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elets PSU Summit 2014 - M P Eshwar

elets PSU Summit 2014 - M P Eshwar

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  • IL’s key area of Business is to provide Turnkey C&I solutions including Engineering, Manufacturing, procurement and Construction to all major core sectors viz Thermal & Nucleur Power, Steel, Refineries, Fertilizers, Oil&Gas, Defence etc. as well as cater to other process industries .
  • Here is the result of a study of the 500 largest firms in the United States. The firms, representing many industries, were divided into two types: traditional, hierarchical firms, managed by the command and control method; and the progressive people-centered firms, which formed employees into teams and let the teams loose against objectives to improve the firm. The difference in performance was remarkable. Over a sustained period of five years, the traditional firms showed only a 2 percent increase in profits per year, while the progressive firms showed a profit increase of more than 10 percent per year. Why do people-centered firms get better results? I’m reminded of an old Chinese proverb, which says: Tell me, and I will forget. Show me and I may remember. But involve me (as one would in a progressive firm), and I will care.
  • In order to begin the reversal of the corporate decline, a new CMD first needs to address the negativity, the distrust, & the passivity, which sets in, over a continued period of losses.
    For this, began by starting the dialogue & opening up communication channels at all levels-beginning with the top. Like the new CEO of GILLETTE, Kim Gilt, in 2001, on the day of joining itself, addressed the Board level Functional Directors, General Managers & the Committee of Management members.  Passionately outlined the challenge of turning around IL and what values would be required to be collectively followed for achieving the shared vision.
    *Made it a rule, from day one, for board level functional directors to meet every day to discuss and review issues at hand. This has helped not only to understand the matters clearly but also enabled faster and a more open discussions and solutions. 
    *Organized a “Vision & Strategy” Workshop for  top management of IL, with guidance of experts from HPCL. The workshop enabled  to collectively chalk out “IL Vision 2016,” co-creating IL's goal by year 2016 and draw a collective  Action Plan for  realizing the same. (Please see the attached ‘Vision and Strategy’ Workshop
  • Strategic Partner points/examples:
    * Matching job profile with employee capability – inter-unit / internal transfers & shuffling of jobs. Restructuring based on the retirement and no fresh recruitment (KU, CU etc)
    * Crisis management at ILP – Logical and fruitful discussions of 15 Hrs between Unions, employees & management to satisfaction of all concerned, dispelling many misgivings of palakkad employees & unions
    * Daily meetings with functional directors so as to have faster decision with commonality of purpose
    2. Employee Champion points :
    Encouragement for skill development – all levels of employees encouraged to participate in relevant workshops / trainings/ seminars for skill & knowledge development after personally seeking fee waiver ( e.g DP, Mr Padraha , etc )
    Despite financial hardships (being Sick Company ) priority always given to clear dues of retired ex-employees & medical cases etc.
    Promotions were pending since 2010. The promotion for the workers & supervisors were released which brought some cheer and relief to the employees
    Initiatives are taken to conduct interactive sessions from world renowned speakers & life coaches for employees & their families ( Prof EV Swaminathan – 2 days seminar in Dec 2013 on ‘Diluting Stress’, & ‘Leadership & Emotional Intelligence’ )
    3. Change Agent examples:
    Vision & Strategy workshop for co creation of Goals & process – first in IL
    Fact based management - town hall meetings / periodic address to employees to keep them abreast about the company
    Feedbacks invited & implemented when required – like reduction in costing for competitive bidding,
    , methodologies for reduction in manufacturing lead time (SBC) , inventory reduction steps etc
    Change in working timings for overall employee welfare & saving for company
    4. Admin Expert points:
    * Streamlining /realigning procedures & rules – purchase procedures , delegation of powers (tatkal tkt approvals, tour bill approvals etc)
    * E-way –encouraging communication via emails & soft copies
    * Bold decisions – not hesitating to order transfers of employees who create disturbances etc, transfers for deeply entrenched & powerful (connected) employees in the overall interest of company (e.g ..eapan, sogani ) (expediting long pending vigilance files??)
  • Cluster - Inner Strength :
    1) Transcending Self - Courageous dedication to the super-ordinate goals:
    doing what is right and what will make India great (level 2) –eg ILP, Vigilance
    2) Executive Maturity: Emotional wisdom to respond to others and embody
    the aspirations of the organization (level 2) –eg in day to day coaching & inspiring to be best
    Cluster - Business Excellence
    1) Adaptive Thinking: Strategic insight into business, adapting methods and
    technology to the Indian situation and to address unmet needs -
    (with a special focus on the Bottom of the Pyramid) (level 3)
    2)Entrepreneurial Drive: Unleash the spirit of entrepreneurial and competitiveness
    to find new horizons of growth (level 3) – new initiatives to generate additional revenue from available resources
    3) Excellence in Execution: Foresight plus fierce and unrelenting passion to execute/act today, to improve the future (level 3) – e.g Getting decision from Govt of Rajasthan (pending for 3 years) in 6 months plus pro active steps in controlling coercive actions by PF and Bank authorities
    Cluster – Energizing Team
    1) Team Leadership: Inspire and protect their team, enabling excellent team performance (level 3)
    2) Driving Change: Lead the organization to implement and embed sustainable change (level 3)
    3) Empowerment with Accountability: Delegates authority to allow others to act with purpose
    and accountability (level 3)
    Cluster – Managing Environment
    1) Networking: Reaches out to an extensive network for ideas and problem-solving (level 2)
    2) Organizational Awareness: Understand how things get decided and done in a particular organization (level 2)
    3) Stakeholder Influence: Uses customized strategies to influence specific stakeholders (level 2)
  • We can remove the details above and just keep the headings ?
  • Transcript

    • 1. PSU Summit 2014 By ELETS Case Study- Revival Plan of Instrumentation Limited (IL) Through HR By M P Eshwar, CMD, IL 22.08.2014
    • 2. Instrumentation Limited A Government of India Enterprise under the Ministry of Heavy Industries & Public Enterprises 2
    • 3. Dynamics of Decline 3 Sick Company - since 1993
    • 4. The key is people!The key is people! What connects all the improvement thrusts?What connects all the improvement thrusts? STRATEGY SYSTEMS OPERATIONS ORGANIZATION 4 ?
    • 5. TheThe ““softsoft”” way produces hard resultsway produces hard results Are you stifling yourAre you stifling your “appreciating assets”?“appreciating assets”? *“Forbes 500” firms. Hierarchical Firms People-Centered Firms 10.8%10.8% 2.6%2.6% 17.5%17.5% 10.7%10.7% Annual Improvement in Financial Performance Over 5 Years*Annual Improvement in Financial Performance Over 5 Years*Annual Improvement in Financial Performance Over 5 Years*Annual Improvement in Financial Performance Over 5 Years* 5
    • 6. 6 The Journey of Reversal Addressing on day of taking over as CMD Informal interactions of functional Directors Vision & Strategy Workshop Interactive Session by EVM Swaminathan for employees & families Town Hall meeting
    • 7. Process Works on the Creative Tension Model EstablishingEstablishing CreativeCreative TensionTension EstablishingEstablishing CreativeCreative TensionTension ResolvingResolving CreativeCreative TensionTension ResolvingResolving CreativeCreative TensionTension Personal and Organization Vision Current Reality Current Reality VisionVision • “What do we want to create?” Creative Tension Dialogue Current Reality Assessment •“Where are we now?” High Leverage Results and Actions • “What are the key results we must achieve?” Accountabilities • “How are we going to work together? Operating Principles • “How are we going to work together to create what we want?” Co-creation of Instrumentation Ltd Vision 2016 7
    • 8. 8  IL is profit making Company with Rs. 500 Crore Turnover and state-of-the-art Infrastructure & Technology.  IL is committed to customer satisfaction by providing quality products and turn-key solutions with prompt after sales service.  IL has highly professional & skilled manpower and conducive work environment for growth.  IL values openness, ethics and transparency.  IL has healthy business relationship with its stakeholders.  IL is profit making Company with Rs. 500 Crore Turnover and state-of-the-art Infrastructure & Technology.  IL is committed to customer satisfaction by providing quality products and turn-key solutions with prompt after sales service.  IL has highly professional & skilled manpower and conducive work environment for growth.  IL values openness, ethics and transparency.  IL has healthy business relationship with its stakeholders. Instrumentation Limited-Vision 2016
    • 9. HR Roles as per the Model by Dave Ulrich Day to day operational focus Strategic/future focus Processes People
    • 10. Achievements in HR Areas Strategic Partner Strategic Partner • Inter-unit transfers & job rotation based on employee profile vis-à-vis retirements and no fresh recruitments • Daily meetings with Functional Directors for faster decisions, cohesive team work, walking the talk. • For first time, a ‘Vision& Strategy’ workshop organized for top management in which Vision was co-created; HLRAs were identified & Action Plans formulated • Promoting Fact Based Management – Town hall meeting and sharing company’s situation with employees • Pending promotions released for workers & supervisors, motivating employees • Initiatives taken to organize and facilitate relevant interactive sessions from world renowned speakers & life coaches for employees & their families (Prof EV Swaminathan) – 2 days seminar on ‘Leadership’ & ‘Stress Management’ • Streamlining /realigning of procedures – obsolete or non productive in their prevailing form – updated / revised •HR policies being reviewed and updated (allotment of vacant flats, enhancement of license fee, opening of Kota Guest House, etc) Change Agent Change Agent Employee Champion Employee Champion Admin Expert Admin Expert 10
    • 11. Impact of CMD’s Leadership on Overall Success of Company 11 ‘Competencies’ spread across four clusters, which are the hallmark of a successful Indian CEOs, as identified in study conducted by Hay Group in 2004 11
    • 12. Impact of CMD’s Leadership on Overall success of Company 12 Psychological Turnaround of Employees Reversal of the corporate decline • Changing the momentum • Empowering people anew, • Removing secrecy with transparency • Passivity and helplessness with initiative •Replacing Blame & Scorn with Belief & Respect Psychological turnaround lead to ‘employee engagement’ and in turn began the journey of Strategic & Financial Turnaround IL’s Employees got engaged, which translated into * Performance Enhancement * Revival of Sale of surplus Assets –main aspect of BIFR Revival Scheme Performance enhancement •Despite acute financial crisis & constraints , Turnover Rs. 159.71 Cr (almost same level 2012-13) • MOU rating improved from 4.29 to 4.05 •Order booking increased by 61% (Rs 88 Cr to Rs. 142.38 Cr) •Orders worth Rs 20.20 Cr from RVUNL in 2014-15 & Rs 1.41 from RCF received as result of personal meeting • Tie-ups & MoUs • Momentum for 2014-15 Sale of Surplus Assets: •Decisions pending for 3 years by GOR Obtained within 6 months •Sale procedure begun and expected to complete in 2014-15. •Highest (Rs. 43.20 Crores) in one year, from sale of Kota land Additional Revenue / Cost cutting Measures • Closures of surplus/ project offices • Disposed scrap/surplus non working machines • Renting vacant township quarters • Reduction in contract laborers • Reduction in Mfg. Cycle of SBC Panels • Reopened closed Kota GH
    • 13. Key Achievements Instrumental in IL’s Revival Journey 13
    • 14. CMD’s Specific Contribution for HR • Met over 50 DGMs & AGMs - ground reality & aspirations • “Vision & Strategy” Workshop for top management of IL- a first in IL • Town-hall meetings for an open dialogue & communication which instilled a sense of inclusion in employees • Certified in Emotional Intelligence Tools & being Spiritual & practicing of ‘mindfulness’ meditation and yoga daily, enables to ‘live in the present with awareness’ and connect to people and their aspirations- making the workplace more enjoyable and less stressful • By bringing in accessibility & openness, created vibrant corporate culture • Lead from the front & set example of hard work and continuous efforts 14
    • 15. Thank You 15 What matters most is how you see yourself !
    • 16. 16 Identifying High Leverage Result Areas (HLRA)