Business Mandate (July 2020) - Annual Edition

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VOL. XXXXVI NO.1

JULY 2020

SOLUTIONS FROM TO CHANGE THE WORLD As the pandemic causes businesses to re‐evaluate how they work, here's a closer look at how companies are adapting to a 'new working normal' 1

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COVID‐19 FOCUS

25 IMPACT ON INDIAN POLITICS

CONTENTS

MMA‐KAS in association with NGPL and ORF held a panel discussion through webinar

DECISION‐MAKING IN DIFFICULT 29 EFFECTIVE TIMES A talk by Dr. Manu K. Vora

31

GEO‐POLITICAL & GEO‐ECONOMIC CONSEQUENCES OF COVID‐19 Mr. M K Narayanan, former National Security Advisor, in conversation with Prof. Harsh V Pant

34 IMPACT ON INDIAN ECONOMY 36 39

Mr Bhartruhari Mahtab, Member of Parliament ﴾Lok Sabha﴿ and Chairman, Standing Committee on Labour delivered the talk

PM'S ECONOMIC PACKAGE A panel discussion on the impact of PM's stimulus

8 FEATURES

51

COVID & ELECTORAL REFORMS A Leaders Speak series talk given by Mr. T S Krishnamurthy, former CEC of India

42 PARLIAMENTARY DEMOCRACY IN COVID TIMES

A panel discussion with Mr N K Premachandran, Mr Naresh Gujral, & Prof G Ramesh

57

16 Leadership and Purpose in Turbulent Times

5S Implementation in Institutions

REGISTERING MEMORIES

THE GALWAN CLASH

Events, talks, and webinars that happened at MMA

A panel discussion on India's China strategy and China's great game

SEIZING OPPORTUNITY IN TURBULENCE Mr. G D Sharma on 12 key management areas to focus EDITOR Gp Capt R Vijayakumar (Retd), VSM EDITORIAL SUPPORT Gp Capt Dr R Venkataraman (Retd) LAYOUT EXECUTIVE D Rajaram

44 47

MADRAS MANAGEMENT ASSOCIATION Management Center, New No.240 Pathari Road ﴾Off Anna Salai﴿, Chennai 600 006 Ph:044‐2829 1133 Email:mma@mmachennai.org | mandate@mmachennai.org www.facebook.com/mmachennai

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EDITORIAL

Gp Capt R Vijayakumar (Retd), VSM

Of Digital Transformation at MMA, Galwan & Covid‐19

O

n Friday, 10th July 2020, we present to you for the

that over a lakh of participants viewed our programmes in the

first time in the history of MMA the online 64th

last three months. A great leap forward by MMA, indeed!

Annual General Meeting of Madras Management

In continuum, MMA aims to be fast on its feet, transform

Association. Covid 19 has impacted every aspect of our life and

end­to­end membership experience, and continuously outpace

work, and MMA is no exception. What keeps us going is

members' expectations. In this regard, we have moved to a

looking at what sparks joy in our life, saying goodbye to the

state­of­the­art digital edition of Business Mandate with

objects that do not, and being grateful for the ones that do;

a number of unique features, including embedded videos, etc.,

MMA is different from simply organising routine management

which will offer an incredible reading experience. It is once

programmes.

again my pleasure and be

In continuum, MMA aims to

thrown many established organisations into a panic. In

associated with the first

be fast on its feet, transform

response, they often make big bet­the­farm moves that fail

all­digital edition of

end‐to‐end membership

badly. Hence, we found it much wiser to take an incremental

Business Mandate

experience, and continuously

approach to digital transformation at MMA. Rather than hold­

being launched on this

outpace members'

ing on to an all or nothing pivot, we opted to exploit our

momentous occasion.

expectations.

The huge threat posed by digital transformation has

privilege

to

greater resources and knowledge, and explore a variety of

As the Indian soldiers face the Chinese army in Ladakh,

ideas at once. We engaged continuously with our members

their courage in defending our borders makes our heart both

digitally by presenting unique management programmes with

heavy and proud. However, our actions belie our feelings.

rich content and knowledge. I am pleased to share with you

Indian trade deficit with China is $48.5 billion, on the back JULY

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of China’s near complete domination of Indian consumer

The photo of my workplace at MMA was taken in Febru­

electronic market. Strangely, the Indian attitude towards

ary 2020, but now it looks impossibly distant. We planned

buying goods has metamorphosed from buying quality­first

and edited this issue of Business Mandate adjusting to

products to low­prized ones. Raising slogans of “Boycott” are

mandatory work from home protocols. I cannot wait any

not going to get us far. Instead, we should learn business

longer to see you soon again at MMA Management Centre.

lessons from China—adaptability and change, suiting the situation. It is time to work towards an “Aatmanirbhar” India.

With another hectic year ahead of us, definitely better days are ahead.

The decision by the Indian Government to ban 59 Chinese apps including Tik­Tok and WeChat is a significant statement of intent. But is there much more to do?

Ultimately, in technology as in the economy, we need to learn from our soldiers on the front. We need to steel ourselves for a few years of hardship with knowledge and belief that we will overcome. If we don’t, then the dream of our great India will become like a Tik­Tok video—short lived and illusory. If we do, perhaps our foes may never dare to draw battle lines inside our physical territory.

In this context, MMA organized a panel discussion on the theme “The Galwan Clash: India's China Strategy and

Stay safe, stay healthy, and keep learning.

China's Great Game” with outstanding panelists drawn from all three services of the armed forces, a former diplomat and an economist. The transcript of the discussions and many more interesting articles including Industry 4.0 are brought to you in this edition with embedded videos. Please read on, watch and enjoy!

Gp Capt R Vijayakumar (Retd), VSM Lately, a series of studies showed that wide­spread mask use can help reduce the spread of Covid­19 and considerably slow the pandemic. A number of eminent speakers at MMA too reiterated in favour of mask use as a simple public health intervention more crucial than before. A change in our approach towards mask wearing is imperative. The additional lesson, considering that this is a long­drawn out battle, is that dilution of local thinking cannot be afforded at any time.

Please do come forward and donate as many masks as possible to the needy and MMA will be happy to associate, to take this initiative forward.

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COVER STORY

Prior to the Covid crisis, Industry 4.0 was an area of great interest to many manufacturers. It presented a huge potential and was widely regarded as a ‘positive’ and 'future­thinking' subject. The business drivers of Industry 4.0 before the crisis were focused on competitive advantage, cost reduction, productivity, sustainability and innovation. The goal was to make well­run businesses run even better. The pandemic has changed all that.

A N CHANDRAMOULI NATARAJAN

T

he focus for many manufacturers now is survival first and foremost, and beyond that, damage limitation. Therefore, at this point, it is insensitive and inappropriate to discuss Industry 4.0 in the way it was discussed before

the crisis. When we study its role now during the survival phase and what it can potentially play during the revival and post­recovery phase, I am sure we all will be convinced about its relevance.

What are the macro and micro drivers of Industry 4.0 and the impact of the crisis on global manufacturing?

We learnt from history that every global crisis creates a fundamental shift, affect­ ing government policies, consumer behaviour and industrial sectors for years to come. For example, we witnessed this in World War II, First Gulf War, 9/11, the global recession of 2009, and now this pandemic. With every major crisis, humanity learns to survive, revive and recover into a “New Normal” life style.

In my view, this Covid crisis has given rise to at least five immediate effects: •

The pandemic has hit manufacturers in an unexpected and unprecedented way. For the first time in modern manufacturing history, demand, supply and workforce availability are affected globally at the same time.

•

Social distancing and employee safety measures have put an additional JULY

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•

level of pressure on manufacturers, as almost 50%

volume production parts, called PROTOLABS, is using its

of their workforce will not be available to perform

unprecedented speed­to­market to help support the frontline

their functions on­site.

battle against Covid­19. It is using its expertise in 3D printing,

While office employees and knowledge workers

CNC machining and injection moulding to produce critical

were able to shift to remote work, most factories are simply not designed to be managed remotely and they lacked the tools and infrastructure needed to support such activities.

•

The pandemic has presented a critical moment for

parts for testing and making ventilator masks. 3D printed Charlotte’ valves are being rapidly produced and shipped direct to the customer (ISINNOVA), which is into producing kits that can be used to create a non­invasive ventilator mask.

global supply chain and manufacturing, especially in North America and Western Europe. Having a lean and globalized structure, the supply chain of many companies became specifically prone to epidemic outbreaks.

•

More adversely, the pandemic has caused simultaneous disturbances in both supply and demand. It is clear from the events unfolding before us that one of the major weaknesses is a lack of real­ time visibility across the business, to support critical business decisions.

It is true that the pandemic is causing not just

There are several instances of 3D printing used by many

manufacturers, but entire nations, to re­evaluate global supply

manufacturers to quickly meet the surge in demand for face

chains. Japan has moved first; its national bank is allocating

shields (Boeing), ventilator valves (Isinnova), testing swabs

billions of dollars to assist its domestic manufacturers in

(Form labs), and personal protective gear (Ford). 3D printing

reshoring production from China. Subsidies cover relocation

offers considerable geographic flexibility. Many Indian

expenses and investments in labour­saving automation

automobile manufacturers also have adapted their facilities

(including robots). Likewise, Australia, South Korea, France,

to manufacture ventilator parts.

Germany and USA has announced plans to bring back manufacturing into their own territories. On 12th May, our

﴾2﴿ Intelligent Robots for Disinfection

Prime Minister announced a mission to ‘go local’ and become

Intelligent disinfection robots help in the efforts to stop the

a self­reliant nation in every segment of the economy.

spread of infectious viruses. As the pandemic began to spread,

Is Industry 4.0 relevant now? How is it helping us to manage the crisis right?

the Head of SIEMENS China’s Research Group for Advanced Manufacturing Automation, asked himself what he could do to help control the infection by leveraging cutting­edge

Technologies such as 3D printing, Augmented Reality, drones,

technologies. His idea for intelligent robots got immediate

and intelligent robotics are playing a vital role in combating

support from the managers at the laboratory for robotic

the pandemic in the last six months.

applications, co­established by SIEMENS & AUCMA, which

﴾1﴿ Additive Manufacturing for Healthcare A world­leading specialist in custom prototypes and low­ 10

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focused on ‘developing special robots, unmanned vehicles, industrial robots, and intelligent equipment.’

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travel restrictions in place. The crisis has forced industries to adapt faster than before under normal circumstances. And now with operational and financial benefits accruing, other industries too will follow suit and adopt this technology. ﴾4﴿ Drones, the Savior Drones play a key role in helping authorities and people in at least six different ways to prevent the further spread of the ﴾3﴿ Augmented Reality, The New Normal Covid­19 is accelerating the business world’s move to

virus: a.

Surveillance: Law enforcement authorities such as

Augmented Reality (AR) and other IoT solutions, as

the local police or municipal staff are using drones to

companies look to adapt to a ‘new working normal’. While

monitor people’s movement and break up social

Zoom and Microsoft Teams have become a norm for office

gatherings that could pose a risk to society.

workers, other specialists too are embracing digital

b.

Broadcasting: loudspeakers

transformation to build ventilators, deliver crucial training to

are

Drones used

equipped to

make

with public

announcements to remind people to stay indoors,

apprentices and solve production bottlenecks on automotive

take necessary precautions, follow social­distancing

lines.

and wear a mask. c.

Disinfectant Spraying: To disinfect public spaces and prevent the further spread of virus, health authorities are deploying agriculture spray drones to carry out tasks like spraying disinfectants in potentially affected areas.

d.

Medicine and Grocery Deliveries: Drones pro­ vide the safest and fastest means to deliver medical supplies, transport samples from hospitals to laboratories and even supply groceries to red zones where outside physical contact should be minimum.

It is now possible for experts working at remote locations to ‘see’ the physical world in a video and annotate objects during a call using a smart phone, tablet or wearable, such as Microsoft HoloLens glasses. It enables them to capture every step of the process and create an interactive step­by­step guide for other people to follow, even in a factory thousands of miles away. Traditionally, this would involve engineers travelling to the factory, but not any longer with social distancing and JULY

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e.

Temperature Check: During the peak of the epidemic in China, authorities were carrying out large­scale remote temperature measurement in most apartment complexes using drones fitted with infrared devices.

f.

Temporary Hospitals: In several countries including China, Germany, and the United States, empty fields have been converted into temporary hospitals to ease the pressure on hospitals that are already functioning at full capacity. Drones help in surveying the facility and providing the necessary il­ lumination.

Last Mile Connectivity and Remote Maintenance According to a new European aerospace study involving 320

major benefits and advantages of using cobots during the pandemic and beyond, include: •

machines to work simultaneously, cobots reduce

aerospace business leaders, there is an increased appetite for

contact between human workers, allowing them to

‘low space’ innovation—over (53%) believe that commercial drone last­mile delivery of products—will be commonplace

Social Distancing: By enabling humans and

maintain safe social distancing standards.

•

Partial Automation: By identifying specific

in next three years. Besides, drones coupled with AR will be

applications or processes to deploy cobots, instead

very useful for remote maintenance of installations in mining,

of the whole plant, manufacturers can reduce

power, airline, defence, and oil and gas.

capital expenditure significantly.

•

Solutions for Recovery, Post­Recovery After the Pandemic

Quick

Deployment

and

Flexible

Redeployment: In this uncertain environment, many manufacturers need to repurpose their assembly lines to focus on different products based

﴾1﴿ Robotics & Automation—Cobots

on the urgency of requirements. Collaborative

While job functions involving marketing, sales, management,

robots are one of the fastest automation solutions

finance, and R&D can work virtually, execution at the

on the market to deploy and even redeploy for new applications, with setup often taking less than a

assembly line needs to start rolling out at specific physical locations and on time. The dependence on a migrant workforce in manufacturing belts across the country also

day.

•

Democratized Automation: Cobots help bridge the gap between large and small

needs to be mitigated. By using automation in plants and

manufacturers in the world of automation. In fact,

assembly lines, manufacturers can overcome these issues.

the sheer precision, cost­effectiveness, and

Collaborative Robots (cobots) are widely accepted as an

competitiveness

effective platform for fast and efficient automation. Dull,

unmatched in a globally competitive environment.

Dangerous, Dirty, Difficult and Distancing are the 5Ds in robotic automation. Challenges caused by an acute shortage of labor, changes in assembly lines, and supply and demand level fluctuations can easily be overcome with cobots. The 12

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•

that

cobots

provide

are

Efficient Automation: An MIT Technology Review study found that there is an 85% reduction in idle time when humans and robots work together, which goes to show that cobots are not only safe but also effective in driving efficiency.

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﴾2﴿ Robotic Process Automation

﴾4﴿Artificial Intelligence ﴾AI﴿

Robotic Process Automation, or RPA, is a technology that is

In difficult times, AI can help manufacturers increase

integrated with business processes in order to optimise and

operational efficiency and transparency across organizations

automate repetitive activities, minimize human errors, and

with better monitoring, more precise and timely interventions

maximize agility and productivity. One well­known German

and better quality control in order to build resilient and agile

automaker recently implemented RPA and successfully

business operations with intelligence, insight and expertise.

automated a total of 28 different tasks. The automated

For example, an AI application by IBM called Maximo

activities are now undertaken 24 hours a day, 7 days a week.

Worker Insights puts compliance at the centre of safety, com­ bining advanced analytics and near real­time access to data from cameras, Bluetooth beacons, mobile phones, IoT wearable devices and environmental sensors. It enables one to holistically manage both the facility and workers.

Machine learning and predictive data analytics have the potential to improve manufacturers at three levels, namely, the machine level, production cell level, and plant level through applications that support predictive maintenance, optimised supply chains, and improved product and service quality.

﴾3﴿ Remote Work and Collaboration Virtual work is not just for the office anymore; it is a new reality that will fundamentally change the work environment

Integration of Various 4.0 Technologies How to respond flexibly and efficiently to new challenges and make production future­proof?

in design, supplier quality, shop floor and after sales service. When the crisis broke out, it presented a completely new With social distancing measures in place, manufacturers may situation not only for medical facilities and manufacturers of lose up to 50% of their on­site personnel. We will see the rapid

medical devices, but also for all those manufacturing

adoption of tools for remote diagnostics, management and

companies whose employees suddenly had to work from home

collaboration. This will result in the emergence of a “virtual

and no longer had access to many digital solutions or

shift”—a team of specialists will be connected remotely and

automation platforms. With the help of simulation tools,

constantly online—in order to guide and support the reduced

products and production processes can first be designed and

“physical shift” of onsite personnel.

optimized virtually—before actual production is set up and

Enabled by real time data, AI­based insights, a range of

started.

communication and collaboration tools, and coupled with AR,

Highly innovative automation technologies combined

the “virtual shift” will help digitize and scale up the much­

with digitalized product development make it possible to

needed expertise across the organization and enable the onsite

quickly develop and deliver tailored solutions through additive

workforce to become more focused, effective, and ultimately

manufacturing in exceptional medical situations such as the

significantly more productive.

current one. Remote commissioning, maintenance and repair

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of machines are now possible in a digitalized world.

Sectors, such as the automotive industry, had to shut

advances in AI and IoT technologies have enabled tremendous efficiencies in predictability, capacity, availability and

down production for weeks when demand suddenly slumped, flexibility of supply chain and manufacturing operations. Up but they all adapted their production to provide urgently

to 2019, many of these technologies and solutions were seen

needed components for medical devices. Many companies

as a nice to have. With the pandemic still raging, Industry 4.0

will now be considering ways to diversify their supply chains

has a different role to play: to assist companies to survive, to

in view of the risks posed by global trade and the desire to

shorten the recovery phase, to help businesses return to

produce closer to their markets.

normal operations as soon as possible, and to provide a

They will then manufacture in smaller quantities at decentralized locations. In order to meet these growing needs for flexibility, speed and productivity, intelligent production is a must. And this, in turn, requires automation and

platform for developing new and more resilient businesses in the medium­ to long­term post­recovery phase. We should not neglect the opportunities of automation and digitisation while keeping our roots of labour intensive skills intact.

digitalization. Smart automation solutions are enabling

Although, the degree of adoption may vary depending on

technological innovations used specifically to alleviate the

the industry, willingness of companies to make huge

effects of the virus. And they make production processes so

investments at this time, and readiness of skilled manpower

flexible, robust and efficient that companies can quickly and

to absorb the new technologies and applications, the crisis has

efficiently adjust their production to demand, both during

certainly acted as a catalyst to transition to automation,

the crisis and afterwards. In the future, these technologies

especially in building resilience among businesses for future

will help ensure that companies can respond far faster and

disruptions.

more efficiently to crisis situations and changing market demands.

mean significantly accelerated deployment of industrial IoT,

Industry 4.0—The Way Forward In the past decade, after the 2009 financial meltdown, 14

In the coming years, greater connectivity through 5G will

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including sensing, data visualization, remote collaboration AR tools and AI­based insights across their operations.

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Leadership and Purpose in Turbulent Times

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LEADERS SPEAK SERIES

This extract is from the first talk under Leaders Speak Series delivered by Mr Nandu Nandkishore, Professor, Indian School of Business, and a former global C­Suite leader with Nestlé S.A, a mentor, a consultant, a venture capitalist and a coach.

The event was held on 6 June 2020.

M

r V Balaraman, Past President, MMA and former MD, Pond’s India Ltd delivered the opening remarks wherein he highlighted the core values practised by Pond’s in a challenging environment that was

marked by government imposed shackles in the pre­liberalisation era. “Human resource was our only strength. We valued character and culture ahead of competence,” he reckoned.

He said that Pond’s India trusted managers and gave them the liberty to learn from failures. Talking about the transformation of young executives who joined Pond’s, Mr Balaraman alluded to George Bernard Shaw’s play, Pyg­ malion, in which Eliza Doolittle gets transformed from a poor flower girl into a sophisticated young woman. He recalled the heights reached by many professionals who had a stint in Pond’s and went on to don prestigious positions in India and abroad, and spread the fragrance of business. Mr Nandu Nandkishore thanked Mr V Narayanan, Mr Balaraman and others under whom he learnt the hard lessons of management while working in Pond’s after his IIT and IIM graduation. He quoted from the Chinese classic Tao Te Ching: “When the master governs, the people are hardly aware that he exists. Next best is a leader who is loved; next, one who is feared. The worst is one who is despised. If you don’t trust the people, you make them untrustworthy. The master doesn’t talk; he acts. When his work is done, the people say, ‘Amazing.’ We did it all by ourselves.”

“That was Pond’s and it reflected the culture of Pond’s,” said Mr Nandu.

During his gripping address, he stressed the need for people to adapt to changing circumstances and to handle every crisis in a methodical way, staying rooted to one’s core values. He gave many examples from the corporate world of organizations that weathered many a storm and came out triumphantly and also of organizations that failed badly.

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Extract from his talk and the subsequent Q&A session are

Century and the world became, all of a sudden a much smaller place.

Today, we can’t imagine life

summarized below: The average life span of the 500 biggest companies in the 40 years since 1960 has come down from 60 to less than 20 and now, it’s around 15.

Today’s top 10 tech companies did not exist 30 years ago.

without the Internet, social media, smartphone and online meeting platforms. Worldwide, 88% of the people

go

to

bed

with

their

smartphones. This behavioural change happened in the last ten years.

Adopting Digital

The Kodak Moment We grew up with the image of the world’s inventor of photography­ Kodak. For 130 years, Kodak dominated specialty chemicals and photography. We remember ‘the Kodak moment.’ They invented the digital camera. But where’s Kodak today? They disappeared.

In 1998, there was one company that had the market leadership, with more than 50% global market share of

according to Charles Darwin, ‘it is not

analogue mobile phones—Motorola.

the strongest or most intelligent who

Within one year, the technology

survive; it is, the most adaptable to

changed from analogue to digital.

change.’

Motorola too discarded the analogue version, retooled and adopted digital over the next twelve months, but could

In 1991, they decided to focus on digital photography; in 1998, they closed that business and decided to

The average life span of the 500 biggest companies in the 40 years since 1960 has come down from 60 to less than 20 and now, it’s around 15. Today’s top 10 tech companies did not exist 30 years ago.

not compete….

business and the key lesson is—Change or die; or to re­state it, the only choice we have today is: Disrupt or be

In those 12 months, a new compa­

task of leadership is to prepare the

competency in the home market of

organisation for change. Leaders

Finland was making rubber boots. It

should also know that they should not

embraced the new digital mobile

change their fundamental values while

technology and became the world’s

adapting their value chain. Turbulence

The speed of technological change

number one in mobile telephony. The

is part of the new normal in

throughout the 20th Century has been

company led the market for close to ten

technology, economy, global trade and

accelerating steadily. Arguably, the

years

the

visas. The latest addition to this list is

20th

more

smartphone. And then disappeared as

the Covid­19 crisis. We have no clue as

technological changes than the 50,000

it had lost to iPhone, Samsung and

to how long it will last. Perhaps, we

years before, which saw the develop­

other smartphone manufacturers.

may choose to blame everything on the

decided to cut costs to compete with Fuji film but ten years later, they were gone.

Century

has

seen

and

even

its

disrupted. Therefore, the fundamental

core

focus on photographic paper. They

ny—Nokia—entered;

This is also very relevant in

invented

ment of agriculture, wheel, livestock,

pandemic or we can build scenarios

etc. Communication, radio, television,

Change or Die

and plan for each. This is a transition

telephone, motor cycles, trains, cars

If you look at the world’s natural

event in our history, which people will

and spaceship—all came in the 20th

history at times of a great change,

talk about for the next 100 years.

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Winners & Losers Every crisis has winners and losers. In Covid too, there will be potential win­ ners—for instance, anything consumed at home such as e­commerce, entertainment, personal care and healthcare, food processing and retail, medical supply and services—and potential losers (for instance, those that are consumed ‘out of home’ like tourism and leisure, aviation and maritime, automotives, construction and

real

estate,

non­essential

manufacturing, financial services, ed­ ucation, and oil and gas sectors). The struggling sectors have to adapt and reinvent themselves.

efforts. Today, Fuji is a global leader in

business grew up many fold. Today,

business. Kodak doesn’t exist.

Nestlé is a 1.5 billion dollar company in Indonesia, having bounced back with a

Indonesian Devaluation Crisis

turnover of 200 million dollars in the

A restaurant owner in Australia,

In 1998, there was an economic crisis

year of the crisis.

who was given just 24 hours to close

in Indonesia. Within six months, the

down her outlet due the pandemic,

exchange rate went from 2000 rupiah

The ‘Glass in the Glass Jar’ Crisis

converted it into a grocery store and

for a dollar to 17000 rupiah. An entire

We were selling Nestlé baby glass jars

thrived. Her advice to others: Adapt,

segment of middle­class went into

in France. In 2009, we discovered there

adapt and adapt. When a crisis comes,

poverty. Many companies closed down

were pieces of glass in the jars due to a

we can stick our head in the sand like

and many laid off people. I was there at

defective line. We quickly put a team in

an ostrich or choose to face it.

that time with Nestlé. We struggled to

place and traced the problem to just

maintain our supply chains and keep

two batches. Some of the products from

The Wei Ji Mindset

our units running, but at the same

these batches had already gone to the

There is a saying in Chinese called ‘Wei

time,

our

market. We quickly alerted the

Ji.’ It is represented by two symbols

commitment to our core values. We did

authorities and customers; together

meaning Danger and Opportunity. A

not lay off even a single person. We

with them, we retrieved the glass jars

successful strategic response to a crisis

ensured that our consumers got good

and no one got hurt. The consumers

should view the disruption both as a

quality products. In the first year, our

responded

threat and an opportunity. Like Kodak,

business volume declined by 30%; we

customers in other countries queried

Fuji Film too decided to cut cost and

worked with our farmers/ trade

through social media if they too had to

focus on photographic paper but unlike

partners and invested in our brands.

return their jars. We clarified that the

Kodak, Fuji decided to put the money

The entire value chain rewarded us

problem was restricted only to France

saved into their R&D and innovation

handsomely

and reassured them.

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we

demonstrated

and

gradually,

our

very

positively.

Our

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A few days later, on a Friday

product, apparently to discredit the

and addressed the emotional concern

evening at 8.30 pm (normally big

government and some multinationals

of consumers. We worked with farmers

crises happen after 6 pm on Fridays;

in Chile. He tested some Nestlé baby

and the pesticides they used, and re­

you can call this Nandu’s law!), I was

food products and found that they were

launched the product along with

still in the office when I got a call from

completely compliant with the local

commercials that reassured them that

our social media unit that a Hollywood

regulations, FDA norms and Codex

we deliver the best quality at every

star, Alyssa Milano, who had 17 million

norms.

stage: from field to jar.

followers on Twitter had tweeted, “In the US, Nestlé is recalling their baby food ‘Gerber.’ So please return your Gerber baby jars to Nestlé.” For no reason, the tweet had created a panic.

We had to react immediately. Within five minutes, I responded to her on Twitter stating the correct position; the star was so gracious and retracted her tweet saying that the US products were fine; it was a localised issue in France and that the problem had also been resolved. We heaved a sigh of relief!

your

vulnerabilities.

facts Stop

Act

decisively.

Speed

According to European law, it was completely banned. The politician went to the government and complained.

The government turned to Nestlé and asked us to handle the issue. Questions were raised to us: “Are you telling us that European babies are more

over a period of 20 years. He says that good luck and bad luck will keep alternating but those who show resilience succeed. In my life too, I had many successes and failures. The roots of all of my successes lie in my failures.

We should always convert a problem into an opportunity.

don’t. In every single place, we comply

separates panic / despair and

and

with the local laws and regulations. The

thoughtfulness. You have to build a

the

product was perfectly okay. But still,

support

we

and

uncertainty. When others follow an

reformulated it over the next six

ostrich response, you might be the only

months. That is when we launched a

one who balances a threat response

new initiative.

and an opportunity response. So,

is

Know your core values and purpose.

•

were permitted in Chilean law.

Choice,’ studied several companies

with a measured response that

important.

•

called Iprodione, the limits of which

Jim Collins, for his book ‘Great by

do you have double standards?” We

bleeding.

•

were in parts per million of a pesticide

Resilience, the Key Differentiator

You need to be personally resilient

in a threat response: Know

the presence of trace elements, which

important than Chilean babies? Why

The below aspects are important

•

However, he raised an issue about

Protect your consumers.

recalled

the

product

network

and

embrace

never waste a good crisis. The response Project Saturday

to a crisis makes the difference

Chilean vs. European Babies

According to this project, irrespective

between great companies and also­ran

It was Christmas 2010. I was in

of the local law, for each parameter, we

companies. It is also true for

Chennai to be with my mother. I got a

decided to go with the strictest among

individuals and leaders.

call from our Chile country manager of

the local, European and US regulations.

The Covid crisis is going to be a

Nestlé. She said, “Boss, we have a

We started with baby products and

watershed moment in our history. You

serious problem,” and explained it. A

slowly, worked our way through all

have to ask yourself: What will my

politician used a local lab to test our

Nestlé products. We communicated

legacy be? Will I be of proud of the JULY

2020

21

Business Mandate fountainhead of excellence

choices I made 20 years hence? For, our choices define us. Despite so many disruptions and disasters, the 20th Century has been, by far, the safest. If we look for greatness in the world, it will get better and better.

Insights from the Q&A Session a)

10 Rules for Crisis Management 1﴿

Recognise and accept the crisis. Don’t panic.

2﴿

Get a crisis team in place with relevant skill sets and communication experts.

3﴿

Appoint a Devil’s advocate to challenge group think.

4﴿

Determine the gaps and put a process in place. Separate facts from opinion. Focus on what you can control. Have a scenario plan for what

As companies grow in size and business, the corporate leader should focus on four things that are very important and help create the culture, which in turn determines how well strategy is executed. (You May have heard, “Culture eats strategy for breakfast”. Well

you cannot control.

5﴿

you will not compromise.

6﴿

Recognise if there are opportunities.

7﴿

Communicate. Communicate. Communicate.

8﴿

Take action and ensure flawless implementation.

9﴿

Study the lessons learnt and redesign your processes.

10﴿ Have regular simulations and scenario planning to prepare BEFORE a crisis.

this is what it means): *

* *

Strategy of the company: Are they a box of constraints or

beings are not so different.

definitely a lot of opportunity

are they stretch oriented?

Their underlying values do not

to raise the standards of

Processes: Do they focus on

change. Leaders must keep

governance.

compliance or discipline?

their word, listen and be honest

Leadership: Does it revolve

and

Culture

Covid Crisis: In a worst case

around

impacts strategy. A leader

scenario, rather than laying off

should work closely with both.

people, salary cuts starting

Governance: Board members

from top level will be a better

must ensure good governance.

option. Corporate leaders must

Values: An individual’s values

There are different styles of

respect their employees and

and company values should be

governance. The board must

make sure that people have a

in alignment.

ensure that the operational

dignified exit. Though Airbnb

Decision­making: Leaders

management

place,

and Uber took some tough

should know to separate facts

appropriate to the stage of

decisions, their responses were

from opinions to arrive at good

business. We come across

appreciated because of their

quality decisions.

people

many

heart­to­heart communication

Leadership across places:

companies’ boards and they

and the intent shown. The

Leaders must focus on values.

may not be able to do justice.

global chairman of JW Marriot

Across

the

In India, people are reluctant

spoke to all employees about

values—for

to be independent directors

the situation. There are bad

instance, respect, integrity and

because of liabilities and legal

examples too. Some companies

trust—do not change. Human

responsibilities.

have fired employees over a

controlling

or

supporting people? *

Team dynamics: Do they run based on contracts or trust?

b)

c)

d)

Remind yourself of the core purpose, values and core strengths which

cultures

fundamental

e)

transparent.

is

sitting

in

in

There

is

f)

Dealing with Employees in

JULY

2020

23

Business Mandate fountainhead of excellence

Zoom chat. That’s not the way to do things. This crisis will

Covid Management, in general: *

change because of the crisis.

separate great leaders from the ordinary.

Behaviours of consumers will

*

Leaders must try to protect the

news will fill the vacuum which is dangerous.

Mr V Balaraman thanked Mr

vulnerable during this crisis.

Nandu Nandkishore for an enticing

There has to be a different

talk and summed up saying that

One cannot keep on running a loss­

strategy for semi­urban and

corporate leaders must lead from the

making unit. I have closed down some

urban areas. Leaders and

front, be available and visible in a

units and had the misfortune of laying

people must come together to

crisis. He recalled that India had come

off employees. But in every single case

create

*

that I handled, I have tried to look people in their eyes, talk to them rationally, discuss their exit plan and treat people with grace.

24

JULY

2020

a

conducive

environment. *

Leaders must maintain their sanity and balance in their

out of many crises well. He promised to collaborate with MMA and bring in more leaders of Pond’s lineage to fol­

perspective. They must keep

low sound management principles,

communicating, or else, fake

especially in these turbulent times.

Business Mandate fountainhead of excellence

COVID‐19: Impact on Indian Politics MMA­KAS in association with NGPL and ORF held an online panel discussion on 3 May 2020.

The Panellists: *

K Pandiarajan ­ Hon’ble Minister for Tamil Language, Culture­ Government of Tamil Nadu

*

N K Premachandran ­ Member of Parliament, Lok Sabha (Kollam Constituency)

*

PTR Palanivel Thiagarajan ­ Member of Legislative Assembly, Tamil Nadu

*

Prime Point Srinivasan ­ Chairman & Managing Trustee­ DiJAI moderated the discussion.

Extract from the Panel Discussion:

Lockdown Blues

Whether they will be able to work here

He cautioned that people’s compliance

is a delicate matter. Definitely we have

to lockdown should not lead to

to find some ways to rehabilitate the

authoritarian governments at the

foreign returnees.”

Centre and States. “The civil rights, Mr N K Premachandran, Member of Parliament

M

political

rights

and

even

On the much­touted Kerala model

the

of governance, he said, “People talk

fundamental rights are being infringed

about the Kerala model of governance

r Premachandran said that

upon, because of the pandemic

where the power is decentralised up to

no disaster brought more

situation,” he said.

the local panchayat level. This has been

misery to humanity than

He suggested that each State has to

made possible by raising the standard of

the Second World War. Although Covid

focus on self­sustainability through

living, thanks to the remittances made

has brought in a high level of misery, it

sustainable development.

by NRIs so far. Therefore, at least now,

is a matter of pride that the entire nation of 1.3 billion people are united in their fight against Covid­19. This is a unique political experiment, thanks to Covid­19 management.

“As Mahatma Gandhi, the Father of the Nation, said, the soul of India

we have to think about rehabilitating the returning NRIs.”

lives in its villages. More attention

Mr Premachandran expressed his

needs to be given for agriculture and

opinion that management of the

rural development,” he felt.

pandemic will be a major issue in the

According to him, the Indian

next elections. “Post­Covid, India has to

political scenario has to be dissected and

Migrant Labour and Returning NRIs

take head­on two vital issues namely

analysed in three distinct phases—the

Regarding the movement of migrant

unemployment and poverty and without

pre­Covid phase, the current phase and

labourers and return of NRIs, he

addressing these, any growth in terms

the post Covid phase. He said that the

strongly felt the need for effective

of figures will only be notional,” he

state of Kerala has learnt a lot of lessons

intervention. He said, “Most of the

summed up in a nutshell the agenda for

from its own practical experiences.

returning NRIs will be above 40.

the government.

26

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Business Mandate fountainhead of excellence

of jobs. “What will happen to jobs,

Tamil Nadu government in tackling the

especially in the unorganized sector? We

pandemic—serving free food to the

say India is highly entrepreneurial and

public through Amma Canteens,

almost 18% of the people here earn a

increased testing and tracing, gearing

Mr K Pandiarajan, Hon’ble Minister for Tamil Language, Culture, Government of Tamil Nadu

living by doing something on their own.

up the entire government machinery,

How much support, freedom and push

organising a task force for tapping FDI

can the governments give to different

investments and doing continuous

r Pandiarajan felt that we

sections to engage in entrepreneurial

course corrections.

need to debate on issues

activity?“ he wondered.

M

like the unipolar world

attempt by China in the geo­political

Tamil Nadu and Covid Management

transition, the political realignment of

“The Tamil Nadu government will be

the world and if India will matter in the

engaging with the industry on restoring

comity of nations emerging either

normalcy,” he promised. He argued for

stronger or weaker post­COVID.

more autonomy to the States and

He listed out as the second dominant theme in his mind, the nature

decentralisation of power.

He listed out the steps taken by the

Regarding FDI, he said that the state government has set up a task force at the instance of five countries—Japan, Korea, Singapore, the US and Taiwan and hoped that they will deliver results.

“Post­Covid­19, I believe India will emerge stronger. We have a strong national identity today. That will drive us,” he said.

JULY

2020

27

Business Mandate fountainhead of excellence

he said and shared his views on a range

opined that it could be misplaced

of issues.

optimism.

“I hear of companies exiting China

Focus on Governance "This Mr PTR Palanivel Thiagarajan, Member of Legislative Assembly, Tamil Nadu

M

r

PTR

Palanivel

Thiagarajan said that we are all shaped by our

experiences. He recalled his own experiences with multiple kinds of

crisis

changes

people's

expectations of politics as opposed to governance.

We

are

seeing

a

fundamental distinction between the kind of campaigning and sloganeering and rabble­rousing as opposed to actually governance; Covid will change the nature of people's expectations of the learnedness of their politicians.

and about the scope for India and Tamil Nadu. I am an ex­investment banker. I've run large trading business with hundreds of billions of dollars balance sheet and transactions a year and I find it hard to imagine a scenario in which we can attract FDI with this much uncertainty in the world and the lack of execution skill that India has shown. How long will it take for FDI to

seismic events. “I was in the World

One of the reasons that Germany

have an impact on employment? This

Trade Centre when the planes hit on

has been such an effective handler of the

is not a realistic short­term solution,”

9/11. I was a senior executive running

crisis is that their leader is a scientist. he said.

the subsidiaries of Lehman when the

She understands complex models and is

global financial crisis started. I was part

able to use that in decision­making. The

Old Order Should Change

of India and the demonetization that

speed at which leaders react and the

He added, “Politics is not only about

crippled our economy,” he said.

nature in which they react is going to

learning, but also driven by people who

shift after this crisis,” he said.

have compassion. Politics is not a

Drawing a parallel from the 9/11

lifelong career; the system needs change

crisis, he said there were no elaborate

On devolution of power, he

screenings in the airport before 9/11

commented, “The notion of centralized

incident. “Things changed drastically

versus distributed models of governance

after that. Similarly, post­Covid, we may

is going to become very starker. We can

encounter multiple screenings in

see the difference between Tamil Nadu

airports. We have to live with the new

and Kerala. In Kerala, the devolution

In his opinion, the governments

normal.”

has been all the way down to the

—both in Delhi and Tamil Nadu— have

panchayat level. The average panchayat

one main task: to find the poorest and

level executive or committee or

weakest sections of the society and try

councillor in Kerala is significantly

their best to revive demand and bring

more empowered than the one in Tamil

back their balance sheets to some level

Nadu and that is a fundamental

of neutrality.

Alluding the Covid outbreak to a watershed event, he said that this crisis is a before­and­after kind of separator.

“Only 10% of the impact is known to us now. The consequences of shutting down the economy even partially are going to be so humongous. This is an era of change or era of shifting events,” 28

JULY

2020

component of the outcome that they've been able to achieve.”

On talks of likely FDI inflows, he

and evolving leadership. The grassroots level politicians stay put for too long, choking the pipelines and thus blocking fresh blood."

“If we don't do that, we are going to see consequences for years to come,” he cautioned on a serious note.

Business Mandate fountainhead of excellence

E f f e c t i ve Decision‐Making in Difficult Times

"It is not enough just to make decisions.

We need to diagnose the decisions..."

He explained how in personal life, there are so many opportunities for de­ cision­making, starting from schooling, taking up a job, buying an automobile, clothing, selecting a sport, going for vacation,

shopping,

financial

investments and so on. Similarly, he listed numerous opportunities for deci­ sion­making in profession, in the areas of hiring, on­boarding, training, giving initial

assignment,

feedback,

performance

coaching,

mentoring,

MMA and Konrad­Adenauer­Stiftung (KAS)'s online lecture professional growth, promotions, on 15 April 2020 was delivered by Dr Manu K. Vora, Chairman terminations, capital projects, team and President, Business Excellence, Inc., USA and Fulbright formation and strategic planning.

Specialist, U.S.Department of State, USA (2016­2021).

Dr Vora thus laid out the vast canvas of decision­making and then

P

detailed out various models as tools for eople make decisions all the

be ‘acted upon’ and that ‘decisiveness is

arriving at decisions—like the tree dia­

time. The quality of those

what makes a good manager.’ He

gram; Steven Covey’s Urgent­Important

decisions is often in question

explained with examples and anecdotes, matrix; and basic decision models

—even by those who make them.

of decision­making in personal and

(scientific, ethical, economical, political,

Dr.Vora provided both background

professional domains. He discussed de­

habitual, etc.,) He listed out nine steps

knowledge and practical models to

cision­making themes dominant during

to effective decision­making. How can

prioritize and make decisions. He

Covid­19—social isolation, personal

we conquer indecision? “Failure to

started with popular quotes on decision

hygiene, avoiding outside trips, seeking

execute is the single greatest cause,” he

making. He quoted Lee Iacocca to drive

medical assistance, looking after the

stressed. “Beyond a point, plans are not

home the fact that a decision taken must

elderly and avoiding rumours.

relevant and they need to be JULY

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29

Business Mandate fountainhead of excellence

implemented.” It is not enough just to make decisions. We need to diagnose the decisions that we made and distill them into good and bad decisions. The lessons learned will help us in future de­ cision­making. Dr Vora gave many simple tips like taking one issue at a time, prioritizing and making use of 3H (Head, Heart and Hand) in decisions.

The lecture provided useful insights for the participants to fulfill their vision, mission, and goals and empower them to do well in their professional careers.

30

JULY

2020

Business Mandate fountainhead of excellence

WORLD

Geo‐Political and Geo‐Economic Consequences of COVID‐19

MMA in association with ORF and KAS presented a live fireside chat on this subject. It included Mr M K Narayanan, former National Security Advisor of India (NSA) and former Governor of West Bengal in conversation with Prof Harsh V Pant, Director, Studies & Head of Strategic Studies Programme, Observer Research Foundation (ORF), New Delhi on 29 April 2020.

JULY

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31

Business Mandate fountainhead of excellence

The Speakers were: *

Mr Peter Rimmele, Resident Representative to India, Konrad­Adenauer­ Stiftung

*

Mr Christian Hirte, Honourable Member of German Parliament

*

even more than what has been the case

M.K.Narayanan under three

in the recent past. Rather than look beyond its borders, nations will focus on

broad areas: * *

The geo­political impact of

their

narrowly

Covid­19

interests.

defined

national

The geo­economic impact of India’s position, post Covid­19

“In times of a crisis, leadership is the

He remarked that even before the

key. Unfortunately, across the world we

advent of Covid­19 crisis, tectonic plates

have a leadership vacuum. There is an

Research Foundation, New

of the global politics were shifting and

absence of leaders who can think

Delhi

that the pandemic has clearly exposed

beyond their immediate problems and

Mr M K Narayanan,

the Chinese vulnerability.

well

Programme at Observer

former National Security

*

beyond

their

immediate

“There is a great shift taking place,

surroundings,” Narayanan observed and

we are moving from the global order we

added that the US is faltering and for a

have known since 1945 to a new global

variety of reasons, it has been retreating

Head of Observer Research

order, an extremely uncertain one,”

from the world stage for some years

Foundation, Chennai

remarked Mr. M.K. Narayanan. He

now. This has created a big vacuum.

Adviser of Government of India Mr N Sathiya Moorthy,

“In times of a crisis, leadership is the key... There is an absence of leaders who can think beyond their immediate problems and well beyond their immediate surroundings,” ‐ M K Narayanan

32

contours of his chat with Mr

Leadership vacuum

the Strategic Studies

*

that nations are going to look inwards

Covid­19

Prof Harsh V Pant, Director, Studies and Head of

*

P

rof Harsh V Pant set the

JULY

2020

outlined the new emerging global order.

“There has been a total failure of

“The new world order is no longer

international organisations, such as the

dominated by the US; China is to some

United Nations and WHO, to step up to

extent in the driving seat and most

the present challenges. WHO has been

other countries are badly bruised by

charged with grossly underestimating

Covid­19 and the global recession,” he

the pandemic,” he said and commented

said.

that to rebuild or repair institutions of eminence, we need great leaders but

Globalisation in retreat According

to

Mr.

such leadership is missing today.

Narayanan,

globalisation has undeniably been in

Geo‐politics worse than geo‐

retreat for some years now and the

economics

coronavirus pandemic is likely to

“In some ways, the geo­political

exacerbate this process. He felt that

situation is far more threatening than

though there is a lot being said about

the

international

and

Narayanan stressing that the leadership

international community, one of the

of a nation gains precedence over the

devastating impacts of Covid­19 will be

nation’s economics.

cooperation

geo­economics,”

opined

Mr

Business Mandate fountainhead of excellence

Assessing the geopolitical landscape,

COVID‐19: An opportunity for India?

political clout doesn’t always rely on

Mr Narayanan felt that the European

Narayanan felt that it’s wishful thinking

economic growth.

Union is struggling with its own internal

to believe that India can exploit

problems; Other than Angela Merkel of

opportunities created out of companies

Future of Pakistan‐India relations

Germany, the EU does not have a

trying to move out of China. Countries

Given Pakistan’s refusal to join the

promising leader. Post­Brexit, the UK

like Vietnam are more likely to benefit

SAARC video conference, Narayanan

too is weakened. West Asia has been in

from it than India.

was

asked,

if

India­Pakistan

relationship had a future.

shambles for some time now and the

He explained that though India has

region is set to face further difficulties

the resilience to survive the crisis, it is

“Every relationship has a future.

due to the oil price meltdown. Russia, he

not in a position to exploit it because of

India can deal with Pakistan and it has

felt, may not be severely affected. India

its economic downturn.

to deal with Pakistan” Narayanan

could have offered some leadership but is handicapped by its economic situation, he argued.

While China is undoubtedly trying to fill the leadership vacuum, Mr Narayanan felt this was not the situation that the world wanted to be in. According to China

has

been

very

important in terms of restricting the spread of the virus but economic

China: Black swan to white swan

him,

“Lockdown

should

have

been

stigmatised for its failure to alert the world in time about the virus. It first identified and detected the virus in Wuhan in December 2019, but sounded the alarm only in January 2020, Narayanan pointed out.

“Having had an early recovery, China is now trying to exploit the situation by utilising its manufacturing capability into an advantage by sending

capacities have bottomed out. China holds all the cards, what are the cards that India holds?” he asked.

Reordering foreign policy priorities

stated.

Maintaining relations with China Having

been

a

foreign

policy

practitioner and China expert since the Sixties, Mr Narayanan stated that China will not be happy with India’s efforts to gain influence in South Asia.

Looking ahead, Narayanan felt that

“However, China will not look to get

India’s foreign policy had invested far

into a conflict with India. Rather, it will

too much in the US. The world is

look to constrict India in its

changing in crucial ways; India’s foreign

neighbourhood and isolate it from the

policy and its diplomatic efforts need to

rest of the world,” he added.

reflect these new changes.

He also said that China recognises

“To hitch our wagon to the US now

India’s intellectual strength. Therefore,

would be unfortunate,” he said. He

maintaining good relations with China

recommended that India needs to

will be India’s biggest foreign policy goal

strengthen its position in South Asia

and challenge; it will throw up

and SAARC has to be brought back.

challenges as well as opportunities, requiring deft handling.

out masks and PPE to Asia and Africa.

“India has to be seen as the glue

Instead of helping the affected

that keeps SAARC together. It is

To conclude, Mr Narayanan said,

countries, it is trying to exploit the

imperative for India to strengthen itself

“India is too important a country to be

opportunities. It is attempting a change

in South Asia, only then will the rest of

side­lined in the world. India should

from being a Black Swan to a White

the world will see it as a leading power,

strive to be a beacon of light to the

Swan,” cautioned Mr Narayanan.

said Mr. Narayanan and added that

world.”

JULY

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33

Business Mandate fountainhead of excellence

He also allayed fears that Disaster

CURRENT AFFAIRS

COVID‐19: Impact on Indian Economy

Management Act would be misused by the states to quell labour and public rights. “We are in an emergency now, facing a war­like situation. All our executive decisions taken now need the approval of legislature or Parliament, as applicable, after three months and within six months. After this, anyone can question the decisions in a Court of Law,” he told. He was also appreciative of the Government’s efforts in ensuring that there are no starvation deaths due to the crisis. “Our granaries are full. The government has provided three months ration to all the needy people. It has also transferred money to the Jan Dhan accounts of poor people,” he informed.

State of the economy

MMA­KAS­ORF in association with NGPL & Presense presented a talk under “Leaders Speak Series” online on Friday, 15 May 2020. Mr Bhartruhari Mahtab, Member of Parliament and Chairman, Standing Committee on Labour delivered the talk.

Mr Bhartruhari Mahtab said that at present, the state of the Indian economy is worrisome.

According to him, the relief measures and the stimulus package of Rs 20 lakh crores is a welcome measure

M

r Bhartruhari Mahtab

Pandemic management

spoke on the pandemic

“The lockdown announced by the

management in India and

Indian Prime Minister was a right

the current economic situation. As

decision taken at the right time and

Chairman

of

Parliamentary

without which Covid­19 would have

Standing Committee on Labour, he

exploded on a much larger scale in

He expressed satisfaction at the

discussed the proposed labour reforms,

India,” argued Mr Bhartruhari Mahtab

Prime Minister’s prescription of ‘Aatma

the migrant labour problem and

and said that all the Indian states have

Nirbhar: Self Reliance for India' and

measures that have to be put in place to

done reasonably well in managing the

went on to suggest that we should also

prevent a recurrence of the problem, in

pandemic, using the provisions of

aim

future.

Disaster Management Act.

‘Swawlambi.’

34

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the

2020

and he is hopeful that the Finance Minister’s various announcements detailing the relief package would put money in the hands of the common man and help revive the economy.

for

self­independence

or

Business Mandate fountainhead of excellence

optimistic that the present labour reforms in the form of four codes, when implemented, will benefit all the workers. He also appealed to all the states to use technology and maintain a live and updated database of migrant workers.

Centre‐state relations In sharing of the Central funds among the states, he expressed his opinion that the Union Government is not doing justice.

Labour reforms

enterprise factor. That will be disastrous

He gave an overview of the numerous

for the nation and economy,” he

and archaic labour acts that are in force

warned.

and about the Union Government’s labour reform initiatives, whereby the

Migrant labour problem

labour ministry has decided to

Mr Bhartruhari Mahtab traced the

amalgamate 44 labour laws into four

origin of the migrant labour problem

codes—on wages, industrial relations,

that resulted post­lockdown, and which

social security and safety, health and

according to him is very unfortunate

working conditions.

and should not have been allowed to

On the present status of these acts,

happen.

However, as a true national leader, he said, “I love my state, but I love my country more. So I respect the Finance Commission, which is the constitutional mechanism in place.” From his vast experience,

he

felt

that

many

bureaucratic tangles between the Centre and the States can be resolved smoothly if the State Chief Minister or Chief Secretary has a direct dialogue with the Union Government.

he said that the code on wages has been

“The industries should have taken

approved by the Parliament and the

care of the workers but as the units were

Positive initiatives

other three are in the process of getting

shutdown, the migrant workers wanted

Mr Bhartruhari Mahtab said that the

approved.

to go back to their homes and with lack

Union Government’s initiative of JAM

of conveyance, they started walking

(Interlinking Jan Dhan account,

back,” he explained.

Aadhaar number and mobile number)

“These codes, when passed, will immensely benefit the labour force and make industries to strictly comply with

Going further into the roots of the

has proved to be a big boon, especially

the provisions,” he assured. He was also

problem, he said that in India, only

in reaching out to the poor and migrant

pragmatic when he said that the growth

about 8% of the labour force is in

labour. He also gave thumbs up to the

of industries depends on two sides of

organised sector. The rest, a whopping

Finance Minister’s announcement that

the coin—namely, labour, on one side

94% are in unorganised sector and they

“One Nation, One Ration Card,” will

and enterprise, on the other. “We

are not covered properly under the

soon become operational and greatly

cannot focus on labour and discard the

social security acts. He sounded

help people on the move.

JULY

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Business Mandate fountainhead of excellence

remarkably reluctant to lend. “Nothing

POLITICS

has changed to remove that risk

PM's Economic Package: Different Strokes

aversion. Measures like the suspension of IBC will make the banks even more reluctant,” he noted. The Centre has come up with sovereign guarantee for loans extended to MSME. This, he felt, addresses the problem partly but the execution remains to be seen. He said, “The statement of intent is there. But the details are missing.”

According to Dr Narayan, the lockdown was well timed but the government grossly failed to see the migrant labour issue coming up. “This and the resultant pain could have been

MMA­KAS in association with ORF presented a talk under “Leaders Speak Series” through Webinar on the theme “PM’s Economic Package: Different Strokes” on 26 May 2020. *

Mr P Ravichandran, Sr Vice President, MMA delivered the welcome address.

* *

easily avoided. The lockdown, however, gave two to three months time for the government to prepare better and take the disease head on, with an armoury of PPEs, face masks and ventilators,” he

Mr Peter Rimmele, Resident Representative to India of Konrad­

said. He added that the recovery rate of

Adenauer­Stiftung delivered the Introductory Remarks.

close to 40% is good and our death rate

Mr R Srinivasan, Editor, The Hindu BusinessLine moderated the

is low compared to other countries, if

discussion with Dr S Narayan, IAS (Retd), former Economic Advisor to

official data are correct.

Prime Minister.

M

Dissecting and analyzing the PM’s

r R Srinivasan drew

Commenting on the stimulus

economic stimulus package of 20 lakh

attention to two recent

package of Rs 20 lakh crores, he

crores, Dr Narayan sounded an overall

studies—one done by

observed that after a detailed analysis,

note of optimism. He broadly put the

SBI’s Economic Research wing and the

the actual size of fiscal stimulus is less

package into three boxes, namely:

other by CRISIL. Both have reported

than 10% of what is announced. The rest

*

Survival

that our economy is falling off a cliff;

comes from the monetary measures

*

Revival and

Next year’s GDP growth will be ­6.5%

announced by the RBI, more in the

*

Growth.

and the next quarter’s GDP will shrink

nature of potential for injecting liquidity

Under Survival, he listed out the

by 25%. “This,” he said, “is the direct

in the economy. He lamented that RBI

announcement of one nation, one ration

result of lockdown which started in the

depends on the banking system to

card for public distribution system.

last week of March 2020.”

deliver and that our banks are

This, he said, is a big reform and will

36

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Business Mandate fountainhead of excellence

to look at small industries and localized and dispersed industries?”

He said that we are self sufficient in PPE, face masks and ventilators.

“Pharma industry is ramping up. Large imports of China will get reduced.”

Dr S Narayan and Mr R Srinivasan debated some of the important issues facing the nation, in a freewheeling chat.

Suspending labour laws help the migrant labour immensely.

He also emphasized that we have enough food stock. Additional funds

infrastructure like food processing, cold chain, etc, augurs well for revival of agriculture.

allocated for MGNREGA will help the migrant labour who go back to their

some BJP state governments to suspend

villages. He pointed out that banks have

many labour laws temporarily, for a

automatically increased the working

period of three years. Though this is not

capital limit of MSMEs by 20% without

the right way, this will help in more

asking for any collateral. Also, he

employment opportunities for the

commended

migrant and returning labour, and be a

easing

the

monetary strain of NBFCs by providing

boon

them credit guarantee to the tune of

government’s initiative of ‘One district,

45,000 crores.

one skill,’ by which each district will be

Under Revival, Dr Narayan pointed out the proposed amendment to agricultural product marketing act and taking out many things from Essential

to

labour law or suspending some of the provisions is not labour reform, but implementation is real reform. Labour

He pointed out the efforts taken by

Centre’s

Mr Srinivasan said that doing away with

FDI.

He

lauded

UP

developed with a particular skill of people —for example, Kanpur will focus on leather industry, Banaras on textiles, etc.

rights have to be respected. Dr Narayan added that the present archaic labour laws need to be changed, so that the industries can comply with them, without resorting to circumventing the laws.

This will help to reduce the 90% unorganised labour force in the country and solve many of the issues like the ongoing migrant labour problem.

Only supply‐side stimulus?

Mr Srinivasan noted that the PM’s stimulus package focuses only on the

Commodities Act. These measures will

Under Growth measures, he opined

supply side and demand has been

open up agricultural markets in a very

that the government perhaps feels that

neglected. Dr Narayan suggested that

big way. He even bracketed this step

the 1991 reforms were inadequate. “The

the government, as a short term

with the 1991 reforms. “This will be a big

91 reforms provided openings for large

measure, should put money in the hands

thing for agriculture, similar to what

industries to grow. When big industries

of the people by way of dole outs.

happened for industry in 1991,” he

grow, it leads to wealth and GDP

observed. He also said that pumping of

growth. There is now a paradigm shift

Outdated budget?

a lakh of crores into agri­based

in government’s thinking. “Is it possible

Mr Srinivasan said that the Union JULY

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Business Mandate fountainhead of excellence

Budget announced in Feb 2020 is no

sectors. Pharma industry will do well.

longer valid. Dr Narayan also agreed

FDA will give more approvals to Indian

and suggested that the government has

formulations. Food and food processing,

to come up with a revised budget, as

agriculture related businesses and

many of the assumptions in the budget

logistics will pick up.

are no longer valid.

Middle‐class woes Mr Srinivasan referred to the sharp reduction of manpower in the organised sector. There have been job losses, pay cuts, rationalization of work force, etc.,

Real estate and construction and automobile industry will have a tough time. IT industry will save a lot of money by asking people to work from home (WFH) for two to three days in a week. This will be the new normal.

left to the states. They don’t have money. Their main sources of income, namely taxes from fuel and liquor and land registration charges have been affected. GST compensation is also delayed.

Dr Narayan agreed that many states struggle to even pay salaries. The states must be allowed to borrow at reduced interest rates from the centre.

The Centre should not link it now

which have increased the pressure on

Centre–state finance

the middle­class. It doesn’t help

Mr Srinivasan pointed out that the

The States should also seriously look

consumption. Dr Narayan noted that we

lockdown was imposed by the Centre

at their expenditure and prune their

need to look at this issue from specific

and the exit from lockdown has been

freebies to restore fiscal health.

38

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2020

to reforms like Power sector reforms.

Business Mandate fountainhead of excellence

STATECRAFT

Covid19 and Electoral Reforms MMA in collaboration with Konrad­ Adenauer­Stiftung (KAS) presented an online panel discussion under ‘Leaders Speak’ series on the theme, “Covid­19 and Electoral Reforms” on 3 June 2020. ORF and NGPL were the event partners. The expert talk was given by Mr T S Krishnamurthy, former Chief Election Commissioner (CEC) of India.

G

roup Captain R Vijayakumar

schedule in November 2020 in Bihar will

way of bringing them down would be to

(Retd),

give a good platform to introduce Covid

have more of digital meetings and use of

related reforms,” he stated.

social media in a responsible way, rather

VSM,

Executive

Director, MMA, welcomed the

participants.

Mr

Peter

Rimmele,

Resident Representative to India of KAS, delivered the introductory remarks.

Contending that no democracy in

than meeting people in person. This will

the world is perfect, he pointed out

also help in checking the spread of

mature democracies like Germany,

Covid­19.

Mr T S Krishnamurthy dealt in his

Australia, UK and US, despite having

address the compelling need for

problems, are able to resolve issues by

introducing several reforms in the Indian

discussion and debate and not though

electoral scene, especially in the post­

violence. He stressed that electoral

Covid­19 phase. He said that the need

reforms must happen in Asia and Africa.

for electoral reforms is often talked

State funding While he appreciated the German system of State funding of elections, he suggested public funding for India with 100% tax exemption. This, he argued,

about but rarely do the ideas that are

Digital meetings

would bring in transparency and

expressed get implemented. “Covid­19

He listed out India’s main problems in

discipline and curb black money.

has given us an opportunity to take up

elections:

corruption,

The limits now imposed on

many reforms. The upcoming election

intolerance, hatred and criminality. One

expenditure of a candidate is flawed in

political

JULY

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Business Mandate fountainhead of excellence

encouraging parties to nominate good candidates, this has not served its purpose, according to a study, he pointed out and suggested that continuation of NOTA needs to be reviewed.

Internet and mobile voting In the post­Covid phase, due to social distancing and other restrictions, he recommended to opt for Internet voting in a limited way, for certain categories of the absence of any limit for spending by

anti­defection law and they wreak havoc

the parties, he pointed out. He was firm

by forming unholy alliances and toppling

in denouncing the electoral bond scheme

governments. He strongly made a pitch

now in place, citing total lack of

for barring independents in state

transparency. “Though they are routed

legislatures and introducing laws to

through banks, the source of money is

regulate

not questioned,” he said.

elections.

them

in

parliamentary

people including NRIs, senior citizens, physically challenged, diplomats and people from armed forces.

He also suggested introducing mobile polling booths so that voters, especially senior citizens need not commute to vote, exposing them to the virus in the process.

Law for political parties

Devolution of power

Though the Indian Constitution is one of

“Democracy survives only when the

the

power is devolved,” he said and

longest,

Mr

Krishnamurthy

that

local

self

Electronic voting machines ﴾EVM﴿ He made a strong pitch for continuance of EVMs saying they are the pride of the

highlighted the glaring omission of

recommended

reference to political parties in the

governments with adequate powers to

constitution. While acknowledging that

manage themselves and raise resources

at the time of independence, this could

should become a reality. This, according

“Even many foreign countries have

have been acceptable whereas now, we

to him, will prevent concentration of

come and seen the robustness of the

definitely need laws to regulate political

power either at the Centre or with State

machines,” he said and regretted that

parties. The recognised parties should be

governments and vastly bring down

when a politician or a party loses power,

limited to a few serious contenders. The

corruption.

EVM becomes the scapegoat.

formed with ulterior motives should be

NOTA

One Nation, One Voting

de­recognised, he argued.

At present, there exists an option called

“This is very attractive,” said Mr

NOTA—'None of the above' in voting

Krishnamurthy and added, “Unless the

Checks on independents

where the voter can reject all the

constitution is amended such that the

In the same vein, he also said that

candidates. Though this was introduced

Parliament and State Legislatures have

independents are not covered under the

with

fixed tenures, this is not possible.”

nation and that they are completely tamper­proof.

frivolous and non­serious parties,

40

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2020

the

positive

intention

of

Business Mandate fountainhead of excellence

Election duration

both of them as serious flaws in our

He strongly recommended that national

election system.

elections should be completed within three weeks, except for J&K and some sensitive states, and that they should be limited to three phases by deploying adequate manpower and paramilitary forces. “The last elections in West Bengal were conducted in six or seven phases and this is totally unacceptable,” he said.

“Paid news should not at all be allowed. If a candidate has benefitted from paid news, he should be disqualified and a law has to be framed for this,” he suggested, referring to a Supreme Court recommendation made in a case.

Deserting pre‐poll alliances Observing with regret that it has become a practice among parties to form an alliance before poll, win the elections and after winning, ditch the alliance and form new alliances of convenience, he strongly made a case for discouraging this practice through law. “People who voted for the alliance are being fooled by political parties,” he

He also said that social media has to

said. To arrest this, he suggested that

Social media and paid news

channelized and used effectively and there

the parties should face an election

Strongly denouncing paid news and lack

has to be a monitoring and regulatory

should they decide to drop out of the

of regulations on social media, he pitched

mechanism to check its misuse.

pre­election alliance.

JULY

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Business Mandate fountainhead of excellence

CURRENT AFFAIRS

Parliamentar y Democracy in Covid Times

Madras Management Association (MMA) in collaboration with Konrad­Adenauer­Stiftung (KAS) presented a panel discussion on the theme, “Parliamentary Democracy in Covid Times” through webinar on 23 June 2020. ORF and NGPL were the event partners. The panel comprised the following distinguished members:

G

roup Captain R Vijayakumar (Retd), ED, MMA, welcomed the

panellists

and

the

participants. Mr Peter Rimmele, Resident Representative to India of KAS, delivered the introductory remarks. “Parliament is the beating

*

Mr N K Premachandran – Member of Parliament, Lok Sabha (From Kerala)

*

Mr Naresh Gujral – Member of Parliament, Rajya Sabha

*

Prof G Ramesh – Professor – Public Policy, IIM Bangalore

heart in Germany,” he said and underlined that Parliament can never be independent of the Executive.

Mr M R Madhavan, Co­Founder and President, PRS Legislative Research, moderated the panel discussion. He highlighted the functions of Parliament and stressed that though Parliament’s

42

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Business Mandate fountainhead of excellence

monsoon session should commence in July, considering the extraordinary ground situation due to Covid­19 pandemic, the resultant economic crisis and other issues, Parliament should have been convened by now.

He listed out many countries where Parliaments meet through digital platforms.

Mr N K Premachandran, MP, pointed out that there has been no meeting of Parliament since 27 March.

It is a big gap, he reckoned, citing various highly critical issues like the pandemic management; NRIs stranded

Mr Naresh Gujral, MP, was also of the strong opinion that Parliament should meet immediately, preferably in an indoor stadium in New Delhi to

“When Parliament works, all government departments work in a frenzied way. It has to be seen how these support staff can be mobilised,” ‐ Prof. G Ramesh abroad, Indo­China and Indo­Nepal

ensure physical distancing. He felt video conference for 543 members may not be feasible yet. He batted for increasing the number of working days in a week and

frenzied way. It has to be seen how these support staff can be mobilised,” he said and cautioned that people above 60 should be taken care of. Concluding the discussion on a very positive note, all the panellists agreed on the following: *

Parliamentary standing commi­ ttees should be convened

extending the working hours of

without further delay; this can

Parliament, to manage disruptions due

be done digitally and if possible,

to the pandemic. “Democracy cannot be

through physical meetings.

kept in suspended animation,” was his

*

Parliament must be convened; the

fervent pitch.

government

has

to

deliberate on how it can be

border issues, financial package an­

Prof G Ramesh highlighted the high

nouncement, etc. Avoiding Parlia­ment,

attendance of Canada Parliamentarians

he argued, will lead to autocracy and

when they participated through virtual

Parliaments function, their

warned that ‘absolute power corrupts

meetings. He was firm in saying that

outcome and challenges.

absolutely.’

technology and connectivity should not

He suggested measures like video conferencing and meeting of Parliament on alternate days. Net connectivity in India and data security are big challenges but, he agreed, they can be managed.

be a major issue as we now do many mission critical jobs including online banking and online stock exchange operations, in a secured manner.

“When Parliament works, all government departments work in a

done and decide. *

*

We can learn how other

We

have

never

seen

a

pandemic of this magnitude since Independence. So we need to pool in and find a way out to see that Parliament functions and democracy in India is alive. Where there is a will, there is a way.

JULY

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Business Mandate fountainhead of excellence

G

roup Captain R Vijayakumar (Retd), ED, MMA, welcomed the

panellists

and

the

participants. Mr Peter Rimmele,

CURRENT AFFAIRS

Resident Representative to India of KAS, delivered the introductory remarks in

The Galwan Clash

which he said that all the neighbours of China are uneasy in dealing with it and that China’s image has taken a beating after its less than transparent action in dealing with Covid­19. He said that in Europe, the thinking is to exclude China in major contracts and added that the US also exerts pressure on Europe in this direction. However, he reckoned that China is an economic powerhouse and cannot be ignored. He highlighted the role of KAS in promoting democracy and internal order. “We need to work with our partners and find common

Madras Management Association (MMA) in collaboration with Konrad­Adenauer­Stiftung (KAS) and The Peninsula Foundation presented an online panel discussion, under the ‘Strategic Leadership’ series, on the theme, “The Galwan Clash: India's China Strategy and China's Great Game” on 26th June 2020. The panel comprised the following distinguished members:

solutions,” summed up Mr Peter Rimmele.

Air Marshal M Matheeswaran (Retd) moderated the panel discussion.

He pointed out that Chinese aggression has been going on steadily from 2010 onwards. While in 1980, both India and China were at the same level of growth,

*

Admiral Arun Prakash (Retd), PVSM, AVSM, VrC, VSM, Former Chief of the Naval Staff, Indian Navy

*

Ambassador G Parthasarathy (Retd), IFS, Chancellor of Central University, Jammu and Former Indian High Commissioner

*

China strategy needs recalibration.

Lt Gen Kamal Davar (Retd) pointed out that India shares 3488 km

Lt Gen Kamal Davar (Retd), PVSM, AVSM, Former DG,

border with China and the Eastern

Mr Mohan Guruswamy, Former Advisor to Finance Minister & Former MP, Rajya Sabha

44

today, he stated and argued that India’s

to Pakistan Defence Intelligence Agency

*

China’s GDP is six times that of India

JULY

2020

sector has been a perennial problem area. He lamented that despite China’s super power ambition and strategy,

Business Mandate fountainhead of excellence

India has always been naïve with China.

"Forget the sweet talks. Always be wary of the wily, crafty China,” he said and cautioned that the present situation is very serious. He remarked that the Indo­China border is now manned by ITBP and Special Frontier Force; he advised a single command to be effective. “We should follow ‘One Border; One Force’ policy,” he insisted.

Ambassador G Parthasarathy (Retd) said that strategic containment of India is integral to China’s political thinking. He felt that India can hold China and no further territorial gains should be allowed. He pointed out that

China strategy. “We need to engage with

singled out the government’s Sagar

China diplomatically and expose to the

Mala project as a good initiative but

world about China not agreeing to any

noted that not much progress has

LAC,” he said. While China has vastly

happened.

huge employment opportunities.

rise. “We have lost the plot after

too should build our Comprehensive

“The whole world made China rich in the last 25 years, doing vast trade with them and shifting many production facilities to China."

National Power and also strengthen

‐ Mohan Guruswamy

space even in vital sectors like telecom,” he said.

He suggested that like China, we

that

augments our security but also provides

Jinping, China has had a remarkable

heavily from China and given them huge

advised

strengthening maritime power not only

under the aggressive leadership of Xi

liberalisation and started importing

He

Mr Mohan Guruswamy traced the genesis of the problem to China’s superiority complex and their natural dislike for India. “The whole world made China rich in the last 25 years, doing vast trade with them and shifting many production facilities to China,” he noted.

maritime security, pursue diplomacy,

Denouncing the jingoism against

leverage on Quad group to exert

boycotting Chinese products, he drove

pressure on China, mobilising all anti­ Chinese forces on a single platform.

He underlined the importance of

improved

its

military

strength,

technology and production, he regretted

home the ground reality that we now depend heavily on China.

that for over 70 years, India has avoided

He said that this is a wake­up call

making a national security strategy and

to bring in land and labour reforms, so

our politicians are more focussed on the

we can attract FDI and ramp up

Admiral Arun Prakash (Retd)

elections. “India should have a Minister

production facilities in India. He batted

insisted that India should have a clear

for Defence Production,” he argued. He

for long­term military policies.

India’s strategic partnership with Germany.

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Business Mandate fountainhead of excellence

BUSINESS IN 2020

with

partners;

re­establish

Seizing Opportunity In Turbulence

relationships with lenders, alliances

12 Key Management Areas To Focus On

must go on. So, an all­out effort to turn

and the society at large; and restructure the business and the organisation to support the rebooted strategy. Business 360 degrees on its axis, from an ‘Inside­ out‘ to an ‘Outside­In‘ perspective holds the key. The traction outside the business is so strong that it must be entirely factored­in to rejig the business model and the organisation to support execution.

Re‐affirm the purpose, culture and values ﴾and the pride for the company, its products and services﴿

First of a two­part article on key areas that the management must address to respond purposefully to challenges posed to businesses by Covid

In these times of ambiguity about what needs to be done, and uncertainty about the future, we must re­instill confidence and pride in the company, its vision, its core values, and in its products and

G. D. SHARMA

business are addressed, and a fine bal­

services. Core values define the

ance is achieved. These are :

priorities of a business and shape the culture of the company.

I

Business continuity and re‐

And, after all, it is when the

n these times of Covid­19, the

commencing operations

business is under pressure that we

world has been pushed towards a

In these unprecedented times, all

demonstrate who we are to our

new normal in every sphere of life

businesses are facing issues they have

customers, employees, suppliers and

—economic, commercial and social.

never

The

other stakeholders. It is at this time that

When companies are resuming work

disruption caused by Covid­19 is far­

we have to instill pride in what we stand

amidst a proliferation of negativity and

reaching and significant, impacting

for and do; and to boost confidence

pessimism all around, management, and

every business and its supply­chain

amongst stakeholders. It is very

leadership in particular, must ensure

—customers, suppliers, employees,

important for the workforce to feel the

that these must­DOs (to keep the wheels

investors and lenders.

positive vibrations on a daily basis, and

encountered

before.

of business running), to ensure that both

Companies are having to re­

the hard and soft dimensions of the

discover their customer base; re­align

to reassure themselves that all is well and that “we shall overcome…"

JULY

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Business Mandate fountainhead of excellence

Communicate, communicate and communicate right up to the last mile I am fond of saying that there is nothing known

as

over­communication!

Communication across the length and breadth of the organisation, and to the last mile of the workforce is the need of the hour. Transparency in conveying ’why we are doing what we are doing’ and making it a very inclusive and involved process down the line to capture ’what and how we should be doing’ is the secret.

This approach is bound to build confidence down the line, strengthen every­ one’s involvement and team­spirit.

Bad costs need to be re‐allocated to business‐ building and institution‐building initiatives. More so in today’s times, many cost management opportunities exist, and through total employee involvement, such areas should be identified for greater buy‐in and ownership.

Communication should be continuous, consistent and all­encompassing in frequency, content and scope.

Help employees re‐disover meaning in their work •

HR must facilitate connecting individual jobs to the greater cause. Identify what purpose drives indivduals to achieve the results they seek, and how it connects to the super­ ordinate goal. Students of Management are familiar with the story of three masons who respond to the question, what is it that you are doing? The third mason responds by say­ ing, "I am bulding a Cathe­

•

As a sequel, HR must facilitate

longer term; between the imperatives of

re­definition of roles, and

business requiring valuable employee

examine whether to eliminate,

contribution and productivity, and the

reduce, modify, replace or refresh

roles,

and

role

definitions and scope. This can help build a tight ship, a must­do for today’s times.

need for empathetic considerations for their safety, health and well­being; between effectively managing costs and the need to conserve and preserve talent; and between efficient execution and

Manage paradoxes and find a balance

expectation management, and so on.

Life itself is full of paradoxes and dualism. Business and management are

Managing cost as a significant initiative

revisited and re­alignment

no exceptions. A best practice, therefore,

I have known that there can be three

established like Hoshin­Kanri

is for leadership to strike a fine balance

types of costs in a company—Good Costs

or Policy Deployment, as a

between what must be done now and

that are needed to support strategy; Bad

lean management method.

what must be borne in mind for the

Costs that do not align with the growth

dral." Goals have to be

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Business Mandate fountainhead of excellence

strategies of the company, and Best

hear of companies that have taken a cut

Costs that help the company in building

in their salaries or even lay­off as a

its competitive advantage.

response to business restructuring

Bad Costs need to be re­allocated to business­building

and

institution­

building initiatives.

More so in today’s times, many cost management opportunities exist, and

initiatives.

it is the mindset that makes all the

As mentioned earlier, only bad

side of things. As Richard Bachsaid:

costs need to be tackled in this fashion

“Sooner or later, those who win are

and therefore employee cost should

those who think they can."

only be the last option.

All in all, we are in these exciting

such areas should be identified for

times of a crisis which is a unique

greater

ownership.

opportunity to explore new avenues and

Companies are today supporting their

new horizons. We must leverage the

vendors, contractors, channel partners,

huge potential of our people and their

and to strengthen the supply chain. We

ideas to emerge victorious in the

and

With so much negativity all around, difference—to be able to see the bright

through total employee involvement, buy­in

marketplace.

(Author is a class‐topper from the 1979 Batch of Tata Institute of Social Sciences, Mumbai, and a Senior HR Professional with over 40 years’ Corporate, Consulting, Mentoring & Teaching experience. He can be reached at ‐ beelinehr@gmail.com)

Now, becoming a member or renewing your membership is easy.

Click Now!

Have a query? Let us know: mma@mmachennai.org

50

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5S PROCESS

Implementation in Higher Educational Institutions

Productivity increases in industries are achieved through Lean Manufacturing. One of the tools used in Lean Manufacturing is 5S, which is a technique to reduce waste in the process, thereby improving the efficiency, productivity and the profitability. 5S is a foundational part to keep the workplace in a clean, organized state. The objective of this article is to examine the impact of the techniques of 5S concepts and their implementation in educational institutions. This enables to attain total organizational cleanliness in alignment with the Swachh Bharat Mission (Clean India Mission) initiative of Prime Minister of India. All the more, 5S implementation is very significant in fighting Covid­19.

ASHOK VERGHESE

5

S is a method of organizing the workplace. 5S is the acronym for five Japanese words—Seiri,

Seiton, Seiso, Seikitshu and Shitshuke, which mean Sort, Set in order, Shine, Standardize and Sustain, respectively.

It is a continual improvement process that eliminates waste, maintains orderliness and cleanliness. This practice is a technique that is used to JULY

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Business Mandate fountainhead of excellence

establish

and

maintain

environment in an organization for improving the effectiveness and the morale of employees.

•

5S is a technique that enables “Just

•

in

5S implementation in educational in‐

quality

Time”

in

5S is an effective tool that helps an institution to improve the effectiveness of all processes involved

stitutions The following methodology is adopted in 5S implementation: •

students)

manufacturing.

•

Online test to assess training

It eliminates a cluttered

•

Divide campus into zones

environment

•

Nomination of Champions,

that

creates

confusion and delay in execut­ ing work.

•

Valuable space occupied by items that are either useless or used less are identified.

• •

Document retrieval is made

Department

Student Volunteers for each

stakeholders. This enables the business to attain total organizational cleanliness in alignment with the Swachh Bharat

Coordinators,

zone.

•

5S implementation guidelines provided to ensure uniform ap­

Mission initiative of Prime Minister. 5S

proach

easy.

is an effective tool that helps the

•

Training of 5S auditors

Unsafe practices are identified

institution to improve the effectiveness

•

Conducting periodical audits

and corrected.

of all processes and the overall quality

Implementing 5S results in a conducive workplace and motivates all 52

Training on 5S to all (Staff and

JULY

2020

of service in such a way that we can meet the requirements of all stakeholders.

(Internal & external) Key

actions

are

listed

with

recommendations in the following table.

Business Mandate fountainhead of excellence

JULY

2020

53

Business Mandate fountainhead of excellence

Challenges during implementation One of the challenges of 5S implemen­

7.

tation lies in aligning faculty, staff (both teaching and administration) and

the campus as well.

stakeholders is a critical step in 5S

Good hygiene practices reduces

implementation. During the process of

the spread of infections and

implementation, all stakeholders are

viruses.

involved in the decision­making process with respect to their workplace.

students towards the mission and mak­

Conclusion

ing them become involved in the process

5S concepts, which are normally

This lead to the generation of so

wholeheartedly. One can overcome this

practiced by manufacturing units to

many short­term and long­term plans

challenge by having regular awareness

improve productivity, quality and safe­

through brainstorming sessions. Non­

programs with students and training

ty, is adopted and implemented by

conformances

sessions for faculty and staff.

Hindustan Institute of Technology and

periodical audit and subsequent

Knowledge levels are to be tested and

Science—it is the first educational

followup resulted in the execution of

evaluated periodically. In fact, a '5S day'

institution to have obtained the Global

corrective actions. The Management

should be conducted periodically in the

Certification for 5S Implementation in

team ensures that sustenance and

campus and it must involve the

India from TUV Rheinland India Pvt

continuous improvement is a daily

students, staff, and faculty to clean up

Ltd.

activity.

areas in and around the campus .

This Certification has recognised

Outcome of 5S implementation 1.

Team Spirit: All stakeholders

HITS Management Principles in line

the

campus:

5S

implementation creates a clean and orderly environment.

Self­discipline of staff, students

with the industry practices like good

government must mandate such

The need for such quality certifications is the need of the hour for Universities.

Government must mandate such processes across all Institutions.

Management

The

staff,

a workplace organizing tool that improves quality, efficiency and safety.

Today HITS is one of the most sought educational institutions which has created an ecosystem for learning. This has paved the way to reach the vision of

faculty

HITS as an international institute of

members and students are in­

excellence, providing a conducive

spired to excel in a clean, safe

environment for education with a strong

and

thought­nurturing

emphasis on innovation, quality,

environment.

Results

in

research and strategic partnership

performance

blended with values and commitment

improvement and achievements.

54

universities.

its Founder Dr.K.C.G Verghese to raise

improves considerably.

6.

for

has implemented 5S concepts in 2018,

Clean

5.

hour

service agencies have equal

effective.

4.

Quality certifications is the need of

processes across all institutions. HITS

make the system efficient and

3.

through

management, staff, students, participation and contribution to

2.

identified

Awareness of 5S concepts and its

housekeeping, visual management

implementation

all

systems, effective waste management

stakeholders enables the

and disposal, safe practices, etc.

spread of cleanliness outside

Creating awareness and training of all

JULY

2020

by

to society.

Ashok Verghese, Director, Hindustan Institute of Technology and Science

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