There is a good buzz in the Indian Manufacturing Industry now about Digitalization and Industry 4.0. Every Managing Director would like to tell his/her colleagues at the Club about how they are implementing Digitalization in a big way and trying to implement Industry 4.0 and so on.
I hear many Functional Managers also trying their hand at collecting more data from machines. They are not very clear what exactly they want to do with that data. But, they have started a Project anyway.
This same companies are having modern Machine Tools that already collect a lot of data as a routine. Most of this data is not being used at all.
The other day I heard about a Machine Shop Manager who is collecting data about vibration on the tool holder on the Machine tool and trying to decide when to change the Tool. This is a smart local application. This Will definitely help the Manager to avoid Quality losses due to blunt tools running for more than their life.
But, these smart local applications are very few.
Irrespective of what they already have, Managers and Managing Directors across the Industry are in mad rush to get a tag of ‘We are implementing Industry 4.0’.
I see following problems in many of these companies rushing to ‘try Industry 4.0’.
01. Many Indian Manufacturing Companies have not yet implemented the Basic Lean Practices in their Shop floors.
02. The Pull principle is not being used. There are many companies that are still having Batch Production on their shop floor.
03. The Layouts are still archaic that necessitate unnecessary movement of material.
04. I have seen companies allowing excess Production as they do not want their workmen to be idle!!
05. There is no focus on the Skills of the Workmen. With the attrition problem on the Shop floor, this is a serious problem for the industry.
06. I know many companies that have not solved some perennial Supply issues and resultantly produce according to what material is available and not what Customer wants!
07. Wherever the Companies have installed Automated Machines and invested in to Technology, I have seen that the Company is having more problems with the Higher Technology machines. The Quality losses are higher in these machines, they breakdown more and over a period of time many of the wonderful features of these machines are by passed and it is used worse than its’ less Automated cousin that is co-existing.
This is not a complete list of problems. I am not saying there are no Companies that are not using Technology and Lean Principles. But, this is a very small percentage.
I see three issues from this situation:
a) Understanding Lean approach: Majority of Indian Companies have still not understood and leveraged the Lean Principles.
b) People element:We have not understood how to address the ‘People’ element when we bring in higher Technology. We need to help the person involved to ‘Work differently’.
c) Short term approach: We are still looking at this year results and many of us are worried about this Quarter performance and this Month’s performance. We continue to remain ‘Short Termish’!
While this is the status, there are some companies that are waking up as the Market Competition is increasing and they can’t simply tolerate the HUGE inefficiencies on the shop floor.
Every Company has to wake up!! If they are not woken up by the ‘Indian Competition’ then they will be woken up by the ‘International Competition’.
The Other Side
While this is the status of majority of the Companies trying to implement Industry 4.0, the Companies offering ‘Industry 4.0 solutions’ are also in the same Boat! While there are some International Companies like Siemens and a few of Local Companies that have understood how to use Industry 4.0 elements to take their clients to the next level, majority of the Companies offering the ‘Expert services of Industry 4.0’ do not know what they are talking about!
I have personal experience of talking to a few of these experts who have fancy websites calling out the World to implement Industry 4.0 with their help. Most of these Companies have not done anything in this area. Most of them do not know anything about Lean!
So, we have a very dangerous combination of Companies who are not ready for Industry 4.0 but want to implement it anyway! On the other side we have a big contingent of Companies who do not know anything about Manufacturing offering Industry 4.0 solutions. A lot of money is getting wasted around!!
How can we go forward?
It does not matter what the current status of the Manufacturing Company is, if they have understood the need to improve their efficiencies and the power of Lean then we can progress.
I would suggest that these companies take up a Re-Engineering of their Manufacturing that would involve the following:
- Put Three Year Targets like:
o Tripling People Productivity (Blue and White Collar Please)
o Cutting Quality Losses by 75%.
o Cutting Manufacturing Costs by 50%
o Solving 100% of Customer related problems permanently
You can formulate a few more Goals that are relevant to your company.
- Only a BIG target will wake up your Company and your team! You will achieve it!
- Formulate a Full Time Task force which can be filled with Young Engineers straight from College. Bring in technical experts as needed. But, having a positive mindset is more important than the Technology.
- There should be representation from every Function in this Task force.
- Educate their Employees on Lean Principles starting with the Top.
- Recast their Value Stream Map on the basis of Lean principles.
- Resolve the perennial problems like Material Shortages, Bad Sub-Contractors who do not deliver on time and so on, Perennial Quality Problems that have become as permanent in the company as the owner himself/herself!
- Formulate several Projects that should be championed by the Task force with help from the regular Teams.
- On the way at the right time, we should start educating the employees on Industry 4.0 and the Technology that is available.
- Visiting International companies to understand the Lean principles in action or Industry 4.0 in action is a very good idea.
- Implement Industry 4.0 elements as needed to achieve the Three year Goals. Finance Head should ensure that there is no Project that is being done just for the fancy of it. Every Project should pay back handsomely.
When you are achieving some BIG targets in 3 years, that will allow you to spend a good amount of money to achieve it. The problem of how to finance the Industry 4.0 Projects will be addressed.
So, you can turn your weakness of ‘Low Efficiency’ and ‘Not having implemented Lean’ in to something more positive as it would help you to spend good amount of money as you will get the payback relatively easier.
So, when will you start off?
Improve your Profits significantly and become a genuine implementer of Lean and Industry 4.0!!
In many companies, the cost of White-Collar Staff is very significant. By international standards, the number of staff that Indian Companies hire is significantly high. The Productivity of the Staff in a company seems to be very low. We seem to be throwing ‘Warm Bodies’ at work and problems! More Problems, more ‘Warm Bodies’..
The Indian Companies have been waking up to the higher costs of employees in the past Decade or so. The profits are under pressure. Top line is not growing as aggressively as one may want.
In this situation too, many companies have been addressing the Blue-Collar cost. Companies have been trying to hire cheaper and cheaper labor. I know many companies who try to run the whole Manufacturing Plant with temporary and low-cost labor. Genuine attempts to improve Productivity have not been many. Indian Companies have a long way to go in improving the Blue Collar Productivity.
By Comparison, the White Collar Productivity had been an unexplored area for most of the Companies.
No Standards for work!!
Most of the Companies do not have a Standard for the work of the White Collar Employees. What is the work each Position should be doing and what is the Standard time and effort that each of the work is supposed to take?
Resultantly there is no measure for the work of the White-Collar Employees. When something is not getting done, more employees are recruited. Sometimes having more people will result in more confusion and more inefficiency.
The other side of this continuum is that some companies simply refuse to recruit White Collar Employees or fire who is there. Even this act will not have any rationale. Usually it is the ‘feel’ of the Boss who may just ‘feel’ there are too many people and they are ‘wasting’ their time!
Direct and Indirect Cost of White-Collar Employees and their work
The White-Collar employees are tasked in every company with very important tasks. They decide what Raw Materials have to be purchased, at what cost, how much inventory to keep, what price to sell a product, how to market the products and many other crucial decisions.
So, the money that the Companies spend on the Salaries of the White-Collar employees is only a small proportion of the Total cost. The Cost that this group of Employees can inflict on a Company is huge. They and the work that they do can either make or break the Profits of a Company.
Hence, this category of employees deserve a much higher Quality attention! It is not enough to just focus on Blue collar and drive their productivity !
What needs to be addressed?
Companies need to consider addressing two elements of this category of employees.
01. The numbers in this category. How many people you have and how you can optimize this number? This ensures you spend as little as possible on this category of costly employees. This addresses the Direct cost of White-collar employees.
02. The Quality of the work and decisions of this category of employees. Companies need to pay attention to this as they can inflict a very high cost on the company due to the quality of the decisions that they may take.
Let us address these issues in two or three articles.
Addressing the Direct Cost of the White-Collar Employees
This again can be addressed at two levels. You can improve the Productivity of White-collar Employees in two phases.
a) Multiply the Productivity by applying the Lean Principles.
b) Go to a new level of Productivity and way of working by adapting Technology tools that are available today.
Multiply the Productivity using Lean Principles
I would suggest a methodology to address this area.
While many companies may have KPIs for their Employees and may be some of them are using them well, the Productivity at Task level may still be suffering.
Have a Target: When you start improving the White-Collar Productivity, it is important to have a CLEAR target. I would suggest the target as ‘Avoid recruitment for next one/two years’. Do not start with a target of ‘Cutting 25% of Staff’. This would be like cutting the foot to fit the shoe. While this is so basic and everyone should be knowing, I see many companies just firing Staff to reduce costs!! A Good team is what the Management should be looking to build. They would reduce costs and improve profits!
Log your time: Encourage the employees to log their time and find out what are they actually spending their time on. You can give them Log sheets and ask them to capture what they are doing and to what KPI is it really related to. This effort may give you a long list of activities. Pick the Pareto items for improvement. You need to do this for each Position in the company.
Time Study: Study the specific Tasks on which you are spending significant part of your time. By capturing the micro details of the Task, you can examine the various losses that you have in doing that particular task. Usually you would have very BIG losses.
Identify Kaizens: Identify the improvements that you can do to reduce the time that the task takes. The improvements may involve changing the Work flows, changing the authorizations, improving the ERP features and many other activities.
Carry out the Kaizens: Here, the company has to move with some great purpose. One should not be stuck with some Kaizens that are difficult to implement. It may involve modifying your ERP and modifying your methods. Good amount of ‘Change Management’ is needed here.
Multiply the Productivity
One should aim at improving Productivity by 2-3 times with this methodology. A lesser target will not justify the effort and possibilities that are there in every organization.
Wherever IMA handled this type of Project, the improvement in Productivity was at least twice.
What is critical: Try out in one model area. Take the help of outsiders in this project. An outsider can bring a fresh perspective for this work. But, you should develop an internal team that would focus on Productivity of People forever.
Next Article: We will examine how an Organization can transit in to a New Way of working at the next level of improvement.
In my interactions with about 100+ Companies as part of my Consultancy and Job experience, I have seen many problems related to Lack of Knowledge on the part of Employees in companies. Every company struggles with this problem. Some have identified that this is the problem. Some struggle the consequences without understanding the Root cause. Let us examine a few of them.
Customer facing teams not having the knowledge of Product and Company: Today, we are all losing the people in Sales, Service and Marketing teams quite often. New people keep coming in almost every month! But, my observation is that Companies do not have any tool for teaching these new people or some companies have very ineffective tools. Very few companies (may be 2%) have good systems for teaching them in a systematic manner. Result is that we have loose Cannons going to Customers and promising the sky, moon and the Galaxy whereas the company is here on earth! This is perhaps the most dangerous of all the problems related to knowledge.
R&D Teams working with low / no knowledge of product: The R&D teams also are losing many people every month in most of the companies. Again when the new people come, companies do not teach them about their product or they say they don’t have time to teach them !! Result is that the R&D Engineers are designing the products / parts without understanding the Big picture. This creates more iterations at the best and companies lose big opportunities for optimization of their new products at the worst.
Operators on the Shop floor manufacturing the product without knowing the process: I am sure all of you are suffering with the problem of losing Operators on the Shop floor every month in a big number. Still, very few companies have good teaching methods for the new operators. Some companies have Training schools. But, use very ineffective processes to teach them about the Manufacturing Processes. Result is that the Company loses a lot of People Productivity as new people do not produce at standard rate for quite some time. The Company also loses in a big way in Quality. I have seen many companies who are living with this problem for years without addressing it !! They not only lose money, they lose customer confidence and they lose Top Line !
Manufacturing Team not exposed to Lean: Most of the Indian Companies have Manufacturing Teams who are not conversant with Lean Principles. This problem is there at senior levels as well as junior levels. This results in companies working in a very inefficient way. They use resources at least 2X than what is required. Many companies feel very happy if they can meet 100% of the Customer Schedule. They are not focusing on working efficiently and saving some big money.
The same type of problems are there in Procurement where the teams do not have knowledge of Best Procurement practices, Engineering teams not conversant with Value Engineering principles, HR Teams not knowing about better Training practices, Stores teams not having knowledge of Kanban, Inventory Management.. the list can be long.
Indian Companies are working with lot of inefficiency! We can improve our Bottom line and Top line in a big way if only we can address this problem of Employee Knowledge in respective areas.
Today we have Technology Solutions
Today there is enough technology available for companies to leverage and develop Learning Solutions for the employees.
E-Learning: Using E-Learning, the Knowledge required can be taught to the employees in a systematic and uniform manner. The advantages of this technology are as follows:
a) Make the learning interesting.
b) Make it uniform for all employees.
c) Test the knowledge and certify the employees.
d) Repeat all this at no extra cost throughout the year and beyond.
Virtual Reality: Using 3D and VR, one can teach about Product and Technology. The 3D Videos can help you to give a unique experience to the employees to look at the Products In a Virtual manner, look at them from all angles and understand the small details very well. This technology can be applied using the VR Goggles. This technology can be used in Product technology and it can also be used to convey an Induction program that will take a remote employee right in to the Factory using 360 Degree Video. There can be many more applications to this technology. Augmented Reality is another related technology that is available in this area.
Gaming:Gaming has multiple approaches in Companies. Especially in Manufacturing. Using this, the knowledge can be conveyed in an innovative manner. Gaming can also be used to expose the Employees to different Business Problems in a fun or serious manner. Serious Gaming can be quite useful to companies to enhance Learning.
How can you apply these Technologies?
Develop Solutions: A Company needs to get the Learning Solutions developed as a one-time affair. This is going to take some time for companies to do it. All the Knowledge that is needed for a company may not be available in a documented manner. The Knowledge has to be documented and it has to be used along with the Technology to develop innovative solutions.
Proficiency Levels: The Proficiency levels have to be defined in a Company for Employees at various levels in each type of Knowledge. Product knowledge is needed for an R&D Engineer at the highest level. But, for a HR Executive this may be required at a much lower level.
Learning Management: The Courses to convey the knowledge have to be made available to the employees for learning and certification. This data base has to be maintained using a Learning Management System.
Learning Centers: Learning Centers can be developed with a combination of Physical work benches and E-Learning Videos that help the employees to learn the process theoretically and then apply it on the work bench. One can aim at bringing the new employees to the required Productivity and Quality in the Learning Centers before allowing them to the Shop floors.
Organizational push: While all this can be done, the Employees also have to take responsibility to learn. To ensure this, the Companies can think of making Learning and Certification of employees a mandatory affair. Unless the Employees are Certified, they may not be eligible for participating in the Annual Performance evaluation. This will ensure there is a Pull from Employees for the Learning and Certification.
A Company can revolutionize learning and get tangible results with this approach. I believe Companies should take help from outside to do this. I personally would prefer People with good application knowledge than those who are expert IT People. In this area what is required is the innovative application ability.
Are you ready to take your Learning to a new level ?
What is Critical: To understand the Technology and applying it in a Model area is important to realize the power of this approach.
India is a Power house to the world as far as Information Technology is concerned. Our IT industry is powering up a lot of efficiency across industries and around the world. But, the adaptation of Information Technology in Indian Manufacturing can be improved a lot.
Many companies are yet to take the full advantage of the ERP that they would have implemented a few decades back. Most of the features may be lying unutilized or bypassed.
In many companies, the Finance module continues to be the most utilized one. Very few companies use the Production / Sales & Marketing modules efficiently.
Whenever there are some proposals for a Software such as a CRM (Customer Relationship Management) or a Planning Software are made, the support for such proposals is not very high in the companies.
The Management of many companies regard Software as a luxury as most of these are not getting implemented well. The results from these Software are not commensurate with the resources spent on it.
I cannot say this phenomenon is universal. There are some companies that are successful in using the Information Technology more successfully.
If we consider that the IT can be used at least in three ways:
Most of the Indian Companies are at the Bottom of the above Pyramid and some are just touching the second tier.
There are many reasons for this low adaptation of IT in the Indian Manufacturing. One of the important reasons is the low participation from the Functional teams. IT is considered as the agenda of only the IT Department and sometimes the agenda of the Head of the Company or Head of the Finance.
In most of the Companies the Head of the Finance is the Head of IT that tells us the story of adaptation of the IT in a company that restricts to Finance function.
Advent of Industry 4.0
We are in the midst of the Fourth Industrial Revolution that is inclusive of Cyber Physical systems, Internet of things, Cloud computing and Cognitive thinking.
The various technologies that are available today can be leveraged to drive the efficiency in the Companies.
Companies are trying to monitor the Machines using Sensor technology and trying to make sense of various parameters of the Machine like Heat, Vibration etc and trying to predict Break downs. They are collecting plenty of data and trying to analyse the data.
Companies are trying to monitor the condition of their Machines / Products remotely using the Internet to help Customers get best performance from their Machines/Products.
Companies can now monitor the vibration of the Tool holder in a Machine tool to decide when to change the Cutter.
Companies have many options now to monitor the performance of the employees and help them conduct the routine in the Companies in a regular manner. The Mobile technology can help them in this.
Companies can use the E-Learning concept to train their employees in a systematic manner.
There are several opportunities for companies to use the existing elements of the Technology in a manner that is unique to them and get a competitive advantage.
We can see basic interest in various companies. Many companies are trying out some elements or the other.
But, the knowledge of the Engineers and their participation is still very low.
Approach it differently!
To take full advantage of the Fourth Industrial Revolution, it is not enough if your I.T department is active. The whole company has to be actively seeking to use the various elements of the Industry 4.0.
You need to train the Manufacturing Engineers in the modern technology. Without this, the I.T department will struggle to implement the new technology and the result will not be any different from your experience with ERP!!
IT Aptitude: While everyone can not have the aptitude for I.T, there will be some people in your teams who may be having this aptitude in ample measure.
I have experienced this in my career. When we picked up a few people in Manufacturing and other functions, trained them in IT and encouraged them to develop applications, they made a big difference to the company.
Find your team: Identify those bright sparks that can make a difference for your company. You need to understand this and build your conviction of using Manufacturing Engineers for I.T Projects.
Big Goals: To ensure your team puts in their best effort, you need to challenge them with BIG GOALS. Ensure these Goals will help your Company to go to a next level in your chosen field. Eg. If you want to reduce the losses in the Shop floor, aim at ‘Zero’ losses in a limited area. Do not take up a small Goal. You would not be challenging your team to go to the next level with the help of the Technology.
Train them: Expose the team to various Industry 4.0 practices. Theory and Practice. It would be good for your teams to visit the companies / universities worldwide that have progressed in the technology that you are interested in.
Full time team: Establish a Task force that will work full time to make progress in to your Goals. A part time effort will not be enough in this area.
Top Management Support and Focus: The Top Management’s unwavering support is needed for this team to deliver.
Every Company needs to adapt the Technology as their medium term focus. It has to be the BIG enabler in the next three years!
So, what are you going to achieve in your Business in next Three years by leveraging Industry 4.0 .?
Today, India is becoming more and more prominent on the world stage. Whether it is the Business arena or Political arena or Health, Art & Culture, the world is looking at India with higher expectations. Indian Leaders are playing a prominent role on the World Stage. Whether it is the Sundar Pichaiah (Google), Sathya Nadella (Microsoft), Shantanu Narayen (Adobe) or Dr.Soumya Swamnithan (WHO), many more Indians are in prominent roles world wide. Indian Businesses are going out to the World. Acquisitions by Indian Companies are increasing.
Indian Leaders to prepare themselves !
There are several Leadership Models that are available in the world including several with the Corporates. Many of these models are having ‘Self-Management’ as one element of the Leadership. But, they are all predominantly ‘outgoing’. They talk about what the Leader has to do out in the world. In Sanskrit these are called ‘Paraak’ (Outgoing). But, for a Leader to be effective, he has to be a master of his ‘self’. He has to undertake a journey in to his ‘self’. This is called ‘Pratyak’ (Inward).
India is having more than 5000 years of History in this Science as recorded in the Vedanta and Upanishads. This is the Science of ‘Self’. While I have read some of the Upanishads as explained by Swami Ranganathananda ji (EX-President of Ramakrishna Mutt), I am not an expert on this subject by any yard stick.
But, I strongly feel we as Indians can adapt a Leadership Model that is focused on ‘Self’. Whatever the Leader may want to get done in the outside world, whoever he may be dreaming of influencing, he has to start with himself. He has to manage his ‘self’ and develop his ‘self’ to inspire others.
A well evolved Leader can project a New and Dynamic world around him/her.
The Indian philosophy of Leadership is that you have all that takes to become a fantastic leader in your ‘self’. It is already there. You have to only unlearn your old habits and take off the dust on the ‘mirror’. Once you take the ‘dust’ (old habits), your ‘self’ will shine through.
On the basis of this philosophy:
We can adapt a Leadership model that centers around ‘Wellness of the Leader’ through maximizing the Four Energies that all of us have and Inspiring a Wonderful Change all around us.
If a Leader can Manage and Maximize his four Energies and use them well, he can have a wonderful effect on the world around him. He / She will be able to inspire the people around them and help them achieve something Superlative.
Physical Energy: A Leader has to manage his Physical energy very well. My observation is that only a small proportion of the Leaders who are actively managing high responsibilities take care of their Physical energies. A Leader may maximize his/her Physical energy by Physical exercises / Walking / Zumba/ Yoga or any other means. Those of you who regularly exercise will agree with me that a good Work out actually lifts your energy and not consume it.
Emotional Energy: A Leader has to manage his/her emotions and maximize Positive emotional energy and minimize Negative Emotional Energy. You would have noticed that Positive Emotions would propel you to do more than what you would have thought possible and Negative Emotions would kill your day on an otherwise wonderful day at office. A Leader can use the energy from the Positive Emotions while avoid becoming an Emotional Person.
Mental Energy: A Mind that is focused can work like a Laser beam. Today, we have several threats to our Focus in the shape of several Electronic Instruments around us. ‘Multitasking’ is becoming the order of the day. Multitasking simply does not work. You cannot be efficient while handling several things at a time. You would have experienced a wonderful efficiency when you simply shut out everything and focused on one task. You would have also experienced a situation where you were trying to do several things and not able to do anything properly.
Spiritual Energy: This perhaps is the most powerful energy that all of us have. But, many of us would not have tapped in to it as yet. This is the energy that we can access when we keep a higher goal for ourselves that is beyond our selfish interests. One of my friend participated in helping the Chennai Flood victims a few years back. He worked for 20 days every day about 16-18 hours travelling all around Chennai. He says he was totally drained of his physical energy. But, was able to carry on as he felt he is doing something wonderful to the fellow human beings. After this experience, he has become a Believer in working for something higher ! Now, he has a higher goal in his life to help people around him while he is working and earning for his family which is a basic need.
If a Leader is having a higher goal of doing something beyond his selfish requirements, he will tap in to this energy. He will do a larger good and he will also achieve his/her own personal goals too.
An Entrepreneur may have the goal of achieving Rs 1000 Crores , he may also redefine the goal as ‘Giving employment to 2000 employees’. If he redefines it as the second one, he may go beyond his own selfish requirements. By defining it in the second way, he need not sacrifice his first goal.
You would have noticed that Big companies like Toyota, Mitsubishi, Tata Steel have their Goal that look beyond themselves. The Social Goal becomes the bigger goal. Their own Financial goals become a sub set of the larger goal.
How to Develop ourselves as per this model?
India has the resources to help us develop ourselves as per this Leadership Model. We have several Spiritual Leaders who are propagating these methods. These are Yoga, Meditation and several other tools. I am not sitting in judgement of how good the Spiritual Leaders are individually. But, the methodology that all of them are using is something that can work for us. Take what is good from them.
As I know, this Leadership Model and this methodology to develop ourselves has nothing to do with any Religion. It has got everything to do with Human Beings. As such all Human Beings can use it!
What is Critical: One needs to learn about the ‘Indian methods’ that are available in India. We need to explore more in to the concepts to decide how it can help us!!
For those of you who have been on your own for some time, I do not have to convince you about the fact that your Energy levels may be much higher when you are on your own as compared to the time when you worked in a Job. This is not to blame the job or Boss or anyone else. This is just a fact.
One can realise the highest level of Energy if you are not just chasing higher money and you are chasing your dream in terms of the higher achievement in your life / Career. When you are on your own, there is no difference between your life and your career.
I have been on my own for the past 6 years and more. I could clarify to myself that the higher goal for my life is to ‘Help others to grow’. I need to earn money to take care of basics for life. But, my philosophy is to ‘Help others to grow’. So, I am not looking for money in everything. I am able to enjoy my work more when I free myself from this necessity to ‘look for money in everything’. If you are progressing towards your higher goal, then your lower goals would be met. Have no doubt!
What are the Energy Blockers in Job?
There are certain Energy Blockers when you are in Job. These Energy Blockers may not be there in equal proportions in all companies. There may be some companies who may be able to enable the energies of the Stake holders to flow freely and achieve higher goals. These companies typically have their Mission also in the higher terms. For example, the Mission of Mitsubishi is to ‘Move the World Forward’ with its’ prime movers Engines / Motors and so on. The mission of Toyota is to ‘Further the Mobility on the Planet’.
Tata Steel’s tag line is ‘We also make tomorrow’ highlighting their intention to contribute to the tomorrow of everyone. I remember a few years back Tata Steel used to talk about ‘We also make Steel’ to highlight the fact that they are ready to contribute to much more than just Steel.
These companies do not look at furthering their own agenda and ignore the people involved. If the companies are guided only by the Annual / Quarterly results, then these companies will not be good places to work. The companies that I spoke about earlier do take care of the Annual / Quarterly results by not being obsessed by it.
Let us look at couple of Energy Blockersthat may be there in a Job:
01. You may not be doing the work that you like: A higher percentage of today’s youngsters are trying to do what they like and are trying not to get in to whatever is available. But, still majority of the Job seekers at all ages are just getting in to whatever is available. So, you may not be doing what you really like. But, you need to reflect whether you know ‘What you really like’. My observation is that many of us need to ‘unearth’ our Passion. It may not be very apparent. Whatever you may think is your ‘Passion’ may not live long. Try ‘unearthing’ what your Passion is..You need to really reflect to do this.
02. Your Organization and you may not be aligning: You may think you like what you are doing. Infact, some people may think they are ‘really enjoying’ what they are doing. One agenda is to ‘unearth’ what your real passion is. But, your Energy may not be flowing fully as it is very difficult for everything in your organization to align with your thinking. You may not agree on the Ends or Means to achieve the Ends.There can be several reasons for the non-alignment.
What are the Perks of being on your own?
01. You can create your story: When you are on your own, you can be the creator of your Story. You can plan your Career / Business and ensure progress on it. This is the most obvious perk that you can have.
02. You can build up your Story as you like: While you may start with what you like, you can develop it and make it flower the way you want. You may build several steps towards your Life / Career Mission.
03. You can do what you always wanted to do in addition to your Business: For example, If you always wanted to contribute to a Social cause in addition to your work, now you have a wonderful chance to just do that.
01. You can be in touch with your ‘Real You’: When you are an Entrepreneur, the need to be in harmony with the world around you will ensure that you keep your ego aside and deal with everyone around you. This is a huge opportunity for you to be in touch with your ‘Real You’. Of course once you are successful, you may go back to your ‘old being’. But, you have the opportunity to choose the ‘Real you’.
02. You may earn much more than what you would earn in a job: You normally start off with this goal. But, you may have to wait for some time before you can achieve this. You may earn much more than what you would earn in a job over a period of time.
03. You may create something that is lasting: Every Entrepreneur has this chance to create something that is lasting beyond himself. You have a chance to create a great value for the Society.
There are so many benefits that if you use this opportunity well, you can learn much more in life than what you would do if you work in a Job!
Critical factor: If you are on your own, I feel the most important thing is to have higher Goal and really enjoy what you are doing. All other Commercial Goals will be achieved if you are progressing towards this higher Goal. All the Very Best !!
In the last few years, we can see a very good Start up culture across the Country. We can see Youngsters and Older people alike getting in to some Business or the other. Industries across India are in a ‘Correction mode’ where they have stopped recruiting as they used to and are in the phase of improving People Productivity. So, the Jobs are not available in plenty. This is also pushing some people to go on their own.
I consider this as a highly positive development. People of India have the choice of going on their own. Many Professions are gaining the respectability that they deserve. Some years back, selling food on the Road side may not have been preferred by Educated youngsters. But, now the Food Trucks are well respected and you can see well educated youngsters getting in to it. This is how a Society develops. More Capable people enter in to every area and generally there will be an upliftment of the work concerned with Customers getting better Quality for lesser price.
You can see this happening in Politics too. More Educated people are getting in to Politics. You can see some good examples like Nandan Nilekani who are prepared to throw their hat in to serve in a field. I am sure this will lift the arena of Politics and Politicians. We need more to happen in this area.
Job or Business ?
I notice that there are atleast Four types of People around us.
01. Early adapters: These people may be second Generation in a Business Family or they may be first generation Businessmen / Women who chose to go on their own immediately after Education. I personally like this category very much as I feel they have chosen their Mission early on.
02. Planned adapters: I see a lot of people coming in to Business this way. They earn some money and experience before they make up their mind to do what they want to.
03. Better Late than never adapters: These are the Professionals who would have put in 15-25 years in the Industry and then decided to leverage their long experience to do something on their own.
04. Second Innings: These are perhaps people who start doing something after gaining lot of experience and saving some money.
I belong to the third category above. I personally feel there is nothing wrong with any of the above categories. We are all what we are ! Each of us have our own Priorities and Compulsions in our lives.
Why do we want to go on our own ?
It is perfectly okay to Work in a Job or Be on your own. We need to understand what drives us as individuals.
Some of us are quite happy working in a 9 – 5 Job. We get adjusted to the demands of the Job. We find our peace in it. We build our lives around the Companies that we are working for. Some of us may not be working in a single company. We may shift our jobs. But, we are quite fine with working in a job. We build our homes, educate our children and we keep progressing in our lives. This is perfect as long as you enjoy what you are doing.
There are some of us who are not happy doing the 9-5 job. You always have this burning desire to do something more and something what you always wanted to. This person also has the same needs as the person discussed in the previous para. But, this person is motivated by something more. Initially, this person may not have his Goal clearly spelt out. This person may be unhappy many times at the job. There may be nothing wrong with the job. But, what is causing the struggle in his/her mind is his/her own ‘nature’. He wants to do something on his own and Create something in a different manner.
Put your finger on it..
I request those ‘Own Types’ to recognize this desire in them. It requires some amount of reflection and soul searching to find this. There is no point in blaming the job you are in or your colleagues and your Boss. What is causing the discomfort is ‘your own nature’. Recognize this and take steps to fulfill this in a nice manner. For all you know, you may be able to do something for the Company that you have been working for.
What to look out for?
Having been on my own for the past 6 years, I have gone through the metamorphosis of being in ‘Senior Positions’ to being ‘on my own’. I would like to share my experiences on being on my own and what you can look out for:
01. Leave your ‘I am Boss’ feeling in your last job: When you work in a fairly Senior Position in your Company, you would have gotten used to being pampered by your team. You get a lot of respect whether you deserve it or not. That comes with the Position you were working for. When you come on your own, you have to EARN this with every single person that you meet. Your ‘Past’ can get you somewhere. But, not everywhere. So, clearly ‘What got you here, won’t get you there’ !
02. Learn to do small things on your own: When you work in a Company, you would have gotten used to getting things done by your Team. There would be a Battery of people to do several small things like booking an air ticket, booking a taxi, preparing a presentation and so on. When you come on your own, you need to learn to do these things very quickly.
03. That ‘Secure’ feeling: When you are in a Job, without you realizing it you feel very secure in several situations. You know the Company would take care if you fall sick or if any of your family members fall sick. You may have a Mediclaim when you get on your own. But, still the ‘Secure’ feeling will be missing. You would have been getting the support of the Company in several areas without you realizing it. Like a quick word from the MD for admission of your Kid in to a good school / college or the help of your Colleague to get appointment in a Busy hospital and so on. These are all small things. But, your family would have gotten used to all these. Now, you will not have this ‘warm blanket’ around you when you get on to your own.
04. Have you really ‘been there and done that’: Many of us may not realise that the Big wins that we had in our career would have been contributed largely by the team that was working with us. You would have been a good aggregator working at the top end ! If you did not get in to the Shop floor and implemented the practices yourself, then suddenly you may find that you cannot really help a client or yourself when you get in to the Shop floor to repeat it when you are on your own!! This is a serious problem. You have to measure yourself on this scale even before quitting your job !
05. Can you Slow down and empathize with others: When you are trying to help others as a Consultant or trying to get something done with your team in your own Venture, you have to be able to Slow down and get down to the speed of others. You should be able to measure progress on their scale and not on your scale. This ability decides how far you can help your own team or your clients.
06. Can you Cross Pollinate: You would have experience in certain industries and certain situations. You would not have covered the whole gambit. If you have selected to do something in a field you have been working all your life, then you are relatively safe. But, if you have to get in to other Industries and help them, then your ability to transfer your learnings in to another set up and make them work is very important. For example, Can you bring your learnings from dealing with a Dealer network in Capital Equipment industry, modify them to dealing with Dealer Network in an FMCG environment?
07. Do you like Bungy Jumping: When you leave your job and go on your own, you may not know whether you would be successful. You may not know whether you can be successful consistently. If you are consulting like I have been doing, you would not be sure of ‘Good billing’ every month consistently. If you have set up a Restaurant, you would not know when you would get pushed off the perch by a competitor across the road. So, there is more adrenalin involved in being on your own. You will get used to it over a period of time and you may start enjoying it. I equate it to Bungy Jumping. Only difference is you do not know whether the rope is tied properly or not!!
08. Can you really build a team: Those of us who worked for a longer time in a job have to be aware of one more basic skill that we need. We need to attract a team and retain them for a reasonable period. When you were in job, you would have done it day in and day out. But, at that time the BIG COMPANY was behind you. Now, you are the BIG COMPANY. You need to change yourself to succeed here. You can’t be saying ‘IF this guy leaves, HR will get one more’ !! You are the HR !!
These are some of the ‘Look outs’ for those of you wanting to get on to your own. I will share more on the perks of being on your own in next article.
Critical: If you are continuously being unhappy at job, recognize that it is not about your Job/Boss/Colleagues. It is about you wanting to do something more!! Respect that feeling. Analyze it. See if you are ready to take that plunge! Otherwise, it may explode in your face sometime!!
I can help you if you need help. What are friends for?? JJ
I have seen many Leaders who thrive only on their Authority and not really display Leadership Qualities. These Leaders typically want to be the author of every success around them. Somehow they would feel insecure when someone from their team comes up with a suggestion that is not thought out by themselves.
The characteristics of these Leaders are:
- They have a misconception that as Leaders they have to bear the responsibility for every success of their team and only they have to do it.
- These Leaders feel they are losing out when their team members are actually stepping up and starting to flower.
- As they feel they have to come up with the Best ideas, they do not think any idea of their team member is a good one.
- They try to look for ways to appropriate the credit for the good work of their team members as they feel as Leaders, only they should be coming up with all great ideas.
- They would like to get rid of all those who are not ‘falling in line’ with their thinking as they feel these team members are disturbing the ‘team work’.
- These Leaders typically complain that their Team members are not stepping up and they are passing on everything to the Leader..
The effects of this type of Leadership are:
- Team members will be endorsing every idea of the Leader.
- Those Team members who feel uncomfortable will leave the team.
- The progress of this company gets limited by its’ y leader. Over a period of time, only those who are better than the Leader, leave the Company. Even those who stay ‘learn’ how to not mess with the Leader.
A good proportion of the Leaders that I see fall in to this category. This is generally a ‘Disabling Leadership’. There are very few leaders who can scale up / scale down their own Leadership based on the situation on the ground.
I heard one definition of Leadership from my ex- Boss which stuck to my mind. ‘A Leader should be like a missing piece in a puzzle. Any piece can be missing at a given point of time. A Leader has to constantly modify himself to become that missing piece of puzzle’. So that the team always succeeds.
A Leader needs guts to adapt this Leadership Style.
This Leadership Style is defined by the following:
01. Longer Term Objectives: This Leader is not worried about the short-term results and he is always looking to achieve the longer-term objective. This Leader is not worried about his own contribution. He wants whatever is required to achieve the longer- term objectives to be done. He looks at himself as an enabler of these actions and not necessarily as a person who has to do everything. This is a higher point of view.
02. Tolerance to Diversity: This Leader is tolerant to diverse opinions. His only Objective is to ensure progress towards goals. He is so Goal focused that he can ignore himself in the process. He gets alerted when he hears drastically different ideas. He looks at them as opportunities to find new ways to the goals of the organisation.
03. Confidence in own abilities: This Leader is absolutely confident of his own abilities. He knows he can raise over anything to give a good direction to his team. He knows he can transform himself in to that missing puzzle piece to complete the puzzle.
04. Ability to learn on his feet: One very important quality of this type of Leader is that he can learn very actively on his feet. He is capable of Learning continuously towards the Goals of the Company.
05. Basic trust in Human ability: This type of Leader adapts a Growth Mindset. He believes that People around him are capable and if they do not know something they can learn. He enables them to learn and succeed. As he believes in their abilities, they deliver with their abilities.
I call this an ‘Enabling Leadership’ style. Leaders need to raise up to this Leadership Style. Leaders normally evolve in to this type of Leadership Style over a period of time.
For the journey to begin, one has to know and accept that this higher plane of Leadership that exists. Then the creative tension may set in.
Ram is the Head – Sales & Marketing for the company and he is in the Weekly review with Manufacturing head. The other functional heads are also there in the meeting. Ram is struggling to get the commitment from Manufacturing head for the deliveries that need to happen in the next week.
Individual Problems and Collective Suffering
The Problems of the Manufacturing Head seems to be unending. There are several Part shortages on a daily basis as the Customer demand is going up without notice. There are Quality problems in the New Products introduced and the Process is not yet stabilized for a big number of Products introduced in to the Manufacturing in the past 6 months. The Machines are having higher break down hours as the Preventive Maintenance is not happening regularly. The list is long.
The Quality Head, Materials Head, Engineering Head spoke about their own problems. All the Problems sound genuine. No one seems to have a good solution with some time lines to implement. The Weekly meeting ended with a few arguments, blaming each other and without a proper solution to the problems on hand.
This is a very common situation in many Manufacturing Companies that I have seen. These weekly meetings go on without end and normally gives the same output as explained above.
What is the solution?
How to ensure a good team work happens in the company and the Customer is serviced much better?
I think the Root cause lies in the way the Manufacturing Companies are Operating. We seem to be pushing the Functional teams away from each other and this is resulting in lack of team work and lack of respect to the internal Customers and bad service to the external customers.
There are five essentials to ensuring good Customer orientation in the company and promote Team work in the company.
01. Stabilize the Routine: If the Routine is well defined and stable, the teams will have less flash points. The Routine in each function has to be defined in terms of Standard Operating Procedures (SOPs). This is a continuous journey for Indian Companies as the growth is higher in our companies and things keep changing on the ground every day. A Company should recognize this need and put effort on stabilizing the routine.
02. CFT Culture: The Cross functional Team culture has to be promoted in the Company. Some critical elements in the CFT Culture :
a. Goal deployment: Goals that have to be achieved together have to be deployed to ALL the relevant team members across the functions.
b. Working methodology: The CFTs should have a strong Work ethic and methodology. The methodology should promote a systematic achievement of Goals.
c. Peer assessment: The team members have to be assessed by the Peers in addition to the Bosses. Peer assessment is very powerful and a Group assessment technique has to be used for this purpose.
d. Internal Customer rating: The company can promote the culture of rating by Internal Customers for all the Internal suppliers. This way the Internal Suppliers will get periodic feedback from the Internal Customers and they will have to act upon it.
e. Process based teams: It would be good to seat the teams as per the Process. For example, the team that fulfills the orders of the Customers can sit together in one place. This team may consist of members from Sales, Purchase , Stores, Dispatch etc. This will ensure that the team understands each other and gets formed as a ‘real team’.
03. Functional orientation of Senior Leaders: The Senior Leaders are one of the main reasons why the Silos gets built up in the Companies. The attachment of the Senior Leaders to their teams and to their own Functional Points of view is a big issue. Functional point of view is important. But, the administrative point of view is a daily issue in any company without which the result will not happen. The role of the Senior leaders is to build Functional Competence in the Company. They should allow their team members to work along with the other Functional team members freely. The Senior Leaders should play a subtle role at the back ground to build the Functional excellence. The teams are more than capable of achieving the goals of the Company. If they play their teams too close to their chest, they would be doing a disservice to the company.
The Leaders of the Company have to build this work culture in the Company. The Senior Leaders may need some help in this aspect.
04. Training as teams: If the Cross Functional Teams have to stick together and work together, they have to be treated as teams in every sense. They have to be trained in Leadership skills together as a team. While they may learn Functional skills individually, they have to be brought together as a team for teaching Leadership Skills. This would help in building them as a team. The Training should encourage talking about the working methodology of the team.
05. Assessment and Rewards: The Cross Functional Teams should get assessed as Teams and a good part of the reward has to be given as a team. This would push the team members together. They earn as a team or lose as a team.
A company has to learn the art of getting results from their teams. They can speed up their learning if they go about it in a systematic manner as explained.
Whenever I hear the term ‘Time management’, it comes to my mind that we cannot Manage time. It keeps slipping away whether we do something or not. We can only Manage our work better. But, let us keep with this popular term for this article.
Time Management is a serious problem for almost ALL Managers in the Indian Industry. Some would have realized it and many others may not even realize that they are not using their time well. The Managers that I have come across come in to the following few categories.
Firefighters: These are the Managers who are forever putting off some fire. You can find many of them in Automotive industry. These Managers come early and go late (if they go home). Their Children see them rarely as they go to company even on a Sunday as they can ‘work peacefully’ on a Sunday. Many of them have got addicted to it. They keep telling whoever can listen that they are working for 18 hours a day and so on. The Firefighters do not even worry about Time Management. They have given up long back and now they just go with the wind. In most of the cases, their companies also have given up that ‘some Managers have to be dedicated to the fire fighting’. There is no fight back at all.
Minimalists: These are the Managers who may be in Discrete Manufacturing Companies. These Minimalists do not believe in taking up too much agenda on to their plate. Whatever is put on their plate by their Bosses will be handled forever. They are in no hurry to finish anything. They do not see any need for Time Management as they do not want to ‘hurry’ anything. Their Companies also have come to believe that nothing should be ‘hurried’. Whenever I took up this issue with these Managers, I have seen that their Managing Director defends them !! The belief that they should not ‘hurry’ is quite deep !!
Trouble Shooters: These are the guys who love the adrenalin rush. Whenever there is trouble, these people are called. They are handling an emergency forever! If one emergency is over, they look for the next one. They feel Time Management is not for their type of work.
Boss Pleaser: This Manager will do only things that are asked by the Boss. He will never take up any agenda without Boss asking him to do. They will complete it as the Boss asks them to. They are not managing their Time. Their Boss may be managing it, if at all.
Timid Manager: These are pushed around by just about everyone in the company. They are the people who would be going around with an expression of ‘carrying the world’. Always hunched and always under strain. They just don’t have time to manage time!
There may be a very small percentage of Managers who are trying to manage their time and push a particular agenda of their own. I find this type of Managers to be a very small minority in the Industry.
What are the effects of not managing your time wisely?
When there is no concept of managing your work and managing time, only the Urgent and Important gets done. If you look at the Time Matrix, the First quadrant is the one that you would give attention to. By default you would wait for everything to come to First Quadrant to attend to it.
So, there is no proactive approach. You would become thoroughly reactive. You would be acting in the last minute for everything. If you are still keeping your Customers happy, then you would be spending disproportionate resources to keep your Customers happy. While the Business would be growing, your profit will become lesser and lesser as you are becoming more and more inefficient.
An organization can loose Top line opportunities / Bottom line in this situation. But, very often there will be no awareness of this and many Indian Companies are accepting that this is a ‘normal Business situation’. This is more worrying factor !!
What can be done?
Bad Time Management and Bad Work Management Is a Symptom and this is not the root cause. The Root cause lies in the way the Business Is run. The way the employees manage their Work.
01. Work Management System: Create an environment of Employees taking responsibility and are made accountable. When every Employee takes responsibility for his/her work, then the environment would be amenable for better Work Management / Time Management. This can be achieved by introducing a Work Management System (WMS) where the Organizational Goals would be deployed to the entire organization in a systematic manner and reviews are done in a systematic manner. Every employee is expected to take responsibility for his/her KPIs and they are expected to take Corrective and Preventive actions when they don’t meet targets.
Addressing this overall environment issue is very much essential to ensure your team is managing their work diligently. Without addressing this Root cause, you can not solve the problem.
02. Promote Planning: Once the goals are clearly given to the employees, the Company needs to promote Planning in the company. There have to be Annual Planning for achieving the goals. There has to be Quarterly Planning to make Annual Plan a reality. The Quarterly plans have to be translated in to Monthly / Weekly plans. Each week every Manager has to spend some time to review his last week and plan for the next week on a daily basis. There may be something that comes to everyone without planning. There will be Quadrant 1 activity. ‘Urgent and Important’. But, as you keep up with your Planning, the Quadrant 1 will reduce and Quadrant 2 will increase. The Planning should help us keep the focus on ‘what needs to be done’. Initially our success may be small. But, an Organization has to persist to help their Managers to get a hold on the Work Management / Time Management.
03. Measure your Time usage: To improve something, you need to measure it. You can measure your Time usage with two Metrics:
a. Proportion of time that you are able to plan: If you are at the work for 8 hours, are you able to plan for full 8 hours? I would recommend that you should try to plan as much proportion of your time as possible. If you want to keep yourself open to helping your colleagues, you don’t want to plan for sometime, then don’t push yourself to achieve 100%. But, try to take control of 100% of your time.
b. Success rate in sticking to the plan: You may be able to plan for 100% of your time. But, you may not be able to work as per plan. When you just start off the improvement effort, your success rate would be small. But, you have to persist to ensure you improve your Success rate.
Every Manager should review these two Metrics every week. Every Boss should spend some time with his Team reviewing this and helping them to take more control of their work.
Indian Companies are losing a lot of opportunities to improve their top line and bottom line as their Managers do not have control of their work/time.
The first step to regaining control is to put a ‘Work Management System’ in place.