Uncertainty has become the new certainty. A teetering economy coupled with policy paralysis provide for a perfect ground as to how India Inc. can turn the crisis into an opportunity by investing in people.
www.p e op le m atte rs .inInteresting facts!•S&P has raised questions over India’s economy, which is hit by high government borrowing, risingimports and political compulsions that have stalled reforms in key areas.•An ETIG analysis shows that the share of employee cost in total revenue for BSE -500 companiesdipped from about 8.4% in FY’11 to 7.8% in FY’12; the lowest since FY’08.•Leaders in tough times are expected to make prudent financial & organizational decisions,communicate effectively with the customers and employees and instill confidence in their teams.•Management should use times of uncertainty as an opportunity to invest in HR initiatives that arefundamental to the organization’s growth and sustainability.
www.p e op le m atte rs .in5 Action Points for Leaders•Be honest and communicate - An effective communication helps decode the downtrend, thecausation variables and the likely recovery variables.•Motivate and instill confidence - The challenge of holding on to great teams and keepingthem motivated does not go away when the economy is in for a slowdown.•Believe in people, build capability - Progressive leaders realize that in a tough andchallenging business times, people are the organization’s core strength; they will define anddeliver the blueprint to recovery, success and sustained growth•Invest in people - Conserving costs should not imply reducing spending on training and talentmanagement initiatives.•Don’t let crisis go waste - A crisis presents unique opportunities too, and leaders must see toit that the crisis phase does not go waste. It is herein that they must look inwards and focuson their core competencies and discover opportunities for recovery and growth.
www.p e op le m atte rs .in“External vulnerability providesopportunities and threats, andleaders must understand both;prepare the organization and peopleto overcome threats and convertopportunities into business resultsand growth.”We believe that the economicscenario is concerning but notgrave as yet. We may however, seethesituation worsening if investmentand concomitant industrial activitydo not pick up in the next 2quarters. Government may have torestart the economic stimulus andalso prevent subsidies fromballooning. Given the present stateof policy and politics, it may be atough act to pull off. Click for full story
www.p e op le m atte rs .inWe see a big talent development opportunity in this tough environment. Despite the overall externalchallenges, we are on a growth trajectory and recognize the importance of ‘people and capability’ infuelling growth. We will therefore invest in building and sharpening our people and capability, throughtraining, experiential learning and excellence in execution.Increasing employee trust and confidence should be the primary focus of organizations during suchtough times. Communication plays a vital role and companies need to reach out to people tounderstand their apprehensions/concerns. Equally leaders need to be open and transparent in allround communication. Business leaders need to explain to employees the business realities, externalenvironment, competition, etc. Communication with rationale/data can help organizations to increaseemployees trust. Click for full story
www.p e op le m atte rs .inMotivation comes from within. Not from a manual ora set of instructions. We are all chasing a dream atIndiGo.We have a phenomenal learning and developmentteam at our learning academy called ‘i-fly’. Thededicated leadership related coaching vertical at i-flyalong with the folks at HR, are the people who workthe magic. Click for full story
www.p e op le m atte rs .in“The people strategy should alwaysbe looked at from the medium tolong-term perspective. Kneejerkreactions on people-relateddecisions should never be taken”The current economic situation isimpacting the automobile industrybut it is a more of a temporary blipand in the long term 12 -15 percentCAGR growth would be the trend inIndia. Typically in the currentsituation when we look at thedynamic changes and the globalcrisis, we can compare it to thesituation in the last economicslowdown after which we saw therecovery and 20-30 percent growthin 2008-09. This kind of volatilebusiness environment requires adifferent leader Click for full story
www.p e op le m atte rs .in “At the time of uncertainty, the management must be open and honest.” Being transparent and clearly communicating with employees on the prevailing macroeconomic sentiments, health of the business and impressing upon them the importance of their contributions to the company, is critical. At the time of uncertainty, it is paramount that the management be open and honest about the prevailing conditions and the measures taken to address them. Effort must be made to make employees feel they are part of a broader vision and that their contributions matter.Click for full story
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