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elets PSU Summit 2014 - M P Eshwar

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elets PSU Summit 2014 - M P Eshwar

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elets PSU Summit 2014 - M P Eshwar

  1. 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. 2. Instrumentation Limited A Government of India Enterprise under the Ministry of Heavy Industries & Public Enterprises 2
  3. 3. Dynamics of Decline 3 Sick Company - since 1993
  4. 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. 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. 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. 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. 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. 9. HR Roles as per the Model by Dave Ulrich Day to day operational focus Strategic/future focus Processes People
  10. 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. 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. 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. 13. Key Achievements Instrumental in IL’s Revival Journey 13
  14. 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. 15. Thank You 15 What matters most is how you see yourself !
  16. 16. 16 Identifying High Leverage Result Areas (HLRA)

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