Monday, February 24, 2014

Achieving Operational Excellence Through People (A journey towards Everlasting Excellence)


My attempt to provide insights on this subject is based on my own individual experience and things that I have seen happening in India and abroad.

At an individual level, attributes such as intelligence, discipline, work ethic, skills and expertise define the potential of an individual. Some of us are able to use these individual attributes to deliver above average and sometimes brilliant performance in our own chosen spheres. An individual’s ability to use this potential to perform consistently leads to excellence at individual level.

Rafalel Nadal and Roger Federer are examples of individuals who have evolved from being potentially good, to legends in their own right, through a consistent exhibition of individual brilliance that scales new heights as they mature.

There are examples of excellent teams too. The West Indies Cricket Team of late seventies and eighties was a consistent world beater. The brilliance of their performance was not a flash in the pan; they were individually brilliant and collectively the world beaters.

However as most of you- who are familiar with the recent history of world cricket know, West Indies is no longer a big force in world cricket. The brilliance of eighties has given way to mediocrity and indiscipline.

Amongst the corporate sector too, we continue to see some of the past greats just being that… PAST GREATS; And amongst all this, there are some shining examples of companies that exhibit EVERLASTING EXCELLENCE.  DuPont has had nearly 300 continuous quarters of profit… is this everlasting excellence?

I have been with organizations and teams that have created a belief in me that people play a very important role in fostering excellence. My talk today is about four points that play a key role in
“Achieving Operational Excellence through people.”



1.     Organization vision and individual dreams:
Vision of the organization and dreams of its people are inseparable, People matter and their dreams matter too.
We spend a lot of time in creating strategy, defining goals and articulating vision for organizations.
Smaller organizations find it easier to create an environment where the organizational vision and individual dreams often merge. Individual brilliance, strong and visionary leadership, a brilliant idea, an easy to understand purpose and performance culture; form vital ingredients for driving excellence through people in such organizations.
For Example; Most technology startups display Vitality, Drive and singleness of purpose amongst a large spectrum of individuals.
Motivating People in such organizations is generally not a challenge at least in the startup years. However startups face different challenges. The vision, dreams and motivation are often based on an unproven idea and shaky business model. Angel or Venture funded organizations, early stage companies are places full of dreamers where conservatives don’t enter.
Here you see examples of individual and collective excellence driven by belief in an idea, trust in the leader’s belief and sometimes an idiotic streak that runs through the organization. Those of you who have been a part of startup organizations would have experienced this madness and probably enjoyed every bit of the experience.
I ran a startup company ten years back. And ten years after the failure of this startup venture, and after being through two relatively successful stints after this failure; I continue to believe that the time that I spent with this startup venture was the best of my professional career.
 The reason is simple. “Organization’s vision was no different from individual dreams.” This created a workplace where a small and young team gave the best they could, to shape a collective dream. We cared for each other just like family members would, we enjoyed each other’s success, and we worked day and night because we knew that failure would mean the end.
The ethos of such an organization is mostly built on a few champions who quickly acquire a cult status. The very same factors which created initial success become the bottleneck as the start ups mature. The initial exuberance of common goal and group success could give way to individual growth needs.
Probably the challenge lies in preserving this vitality and vibrancy. I firmly believe that smaller groups, with enough empowerment in larger organizations are also able to create exactly this…. excellence through People by creating a workplace where people are willing to give their best. It makes for a creative, dynamic, vibrant and high performance organization.

2.     Organization values and beliefs
The other important ingredient for Excellence in an organization is percolation of the leadership’s values and beliefs through the organization; Values matter
-        Certain organizations have come to represent value driven approach (e.g. Tata Group in India). It is important to be seen as a set of people who stand for something that is beyond the products, technology and profits that the organization represents. People instinctively relate to such softer but larger than life values and tend to strive harder just to demonstrate the values. I believe that a bunch of people striving to deliver values also create a work place where excellence is like ‘understated performance’.
-        Communicating, demonstrating and practicing the values at leadership level creates believers
-        Champions amongst believers are critical to ensure that values turn in to a culture
-        Everlasting Excellence is one of the natural outcomes of value driven business practices.
My own belief in the strength of beliefs stems from the success of organizations such as ISRO and BARC. If you meet the scientists working in these organizations you may discover one common trait…. the belief in self and sense of patriotism that drives them. This belief is a big factor behind success of Pokhran and Chandrayan.


3.     Operational Excellence in global environment
This point is more about processes; because Processes matter and people are very much a part and parcel of processes that they run.
-        Individualism and leader centric approach typifies many Indian organizations. I may be raising some controversy here; but somehow we tend to look for a leader… I do not know whether this is to do with our more recent exposure to democracy… but we seem to thrive in an environment where there is an omnipresent manager/ leader. And in most organizations he is the one who is getting the work done, driving people to deliver, setting daily, weekly and monthly tasks and being a task master. In most Indian organization, the manager is an Activity Manager.
-        Process oriented approach and work breakdown based industrial processes typify most global companies. Most managers in these companies are process managers. They define the process, train their people, create systems, implement technology to bring in efficiency and then expect people to perform as per pre-determined benchmarks
Our company has operation in 22 different countries through subsidiaries. The Indian subsidiary looks after the Indian business and like all subs we have a Sales Head. He is responsible for Sales and market share. He is a brilliant individual with successful track record. He travels around the country visiting all our branch offices and also meets customers especially to conduct final negotiations for closing the contract. He is very successful.
Last year I visited our subsidiary in Brazil and they too have a Sales Head. The Sales Head has hired 22 territory managers, who in turn have dealers and engineers in their territories. He visits the regions, meets customers but in most cases not for conducting negotiations. He is primarily managing the process while letting the people in the field handle negotiations. He is also very successful.
These are two distinct approaches to the same job. Is it that the culture in our country expects large and complex negotiations to be conducted by someone with a heavy title?
What is more suitable for sustainable, everlasting excellence? Will we have to change towards a more process oriented style of management? I believe so.
Because sound processes are the foundation of everlasting excellence.
4.     Involving people in shaping organization strategies:
Organization and Business Strategy are normally seen as the responsibilities of senior management. And they definitely are. The senior management carries the responsibility of organization’s success or failure.
In my experience, involving people in strategy making process creates an excellent ground for successful implementation and also lays a foundation of everlasting excellence; because, how people think matters

Try this:
Analyze people in your organization by their thinking preferences. The way we think influences the way we behave. Very often you will find 4 type of people, based on their thinking preferences
o   The dreamers- who like to experiment/take risks. They are insightful and imaginative. They articulate a vision and can be vocal about their views. They have good ideas but sometimes lack the method to implement their ideas. They are passionate; we need to keep them passionate.
o   There are the analysts- for whom facts matter. They are logical and analytical. They act as a counterbalance to the men and women with ideas. Sometimes they lack the power of communication to articulate their views but can provide an edge to the dreamers with their sharp data based instincts. They are the rationalists and we need them.
o   Then there are the Conservatives- who avoid risk. They are very organized and detail oriented. Very often they end up being seen by the dreamers and Analysts as conservative laggards. However they are an essential element to any winning combination.
o   And finally there are the Emotionals – for whom people and their well being comes first. They pick up the non verbal clues; they are compassionate and persuasive. There is no argument; we need them on board.


Now your challenge is:
-        How do you get them in one room to create a whole brained approach to strategy
-        How do you get employees from all levels to participate in evolving a strategy
-        How do you communicate strategic objectives
-        How do you make people partner in the process of implementation
-        How do you make them stakeholders

If an organization is able to do this year after year, it will create a foundation of Everlasting Excellence. It will probably lead to Creating an Institution and a Culture where people are involved in strategy making and also in delivering excellence.

Finally I am reminded of what Joel Baker said many years ago

Vision with action is a dream
Action without vision is passing the time
Vision with action can change the world

And my own bit…action needs a method, a rationale and a lot of compassion.

All people in the organization have an ability to influence the course of strategic thinking of their organization; because irrespective of whether you are a visionary or a so called conservative laggard; you have a role to play in creating everlasting excellence.