Father of Management

For the alphabet 'F' in the A2Z challenge, I was initially planning to write on the topic "Flexibility in Management". However, I felt that the first post of the challenge which dealt with "Agility in Business" had more or less discussed the importance of being flexible, innovative, fast and smart to handle 'uncertain ' economic scenario of today. Therefore, I decided to write instead on the "Father of Management" who richly deserves our tribute for the following: (1) Enunciating innovative management thoughts (2) His ideas have stood the test of time (3) Predicted many future events/developments like the emergence of the "Knowledge worker", a term coined by him in 1959. (4) we still rely to a great extent on his thoughts to manage businesses of today.

Yes I am refering to the one and only Peter.F. Drucker, whose book " The practice of Management" written in 1954 was the first book to look at management as a whole and the manager role as a separate responsibility. The book created the discipline of modern management practices. Drucker, born on November 19, 1909 was an Austrian-American management consultant. educator and author. His writings contributed to the philosophical and practical foundations of the modern business corporation.

In 1971, Drucker developed one of country's first executive MBA programs for working professionals at Claremont Graduate University and was the professor of social science and management of the said university till his death at the age of 95 in 2005. The school was named the Peter.F.Drucker Graduate School of Management in his honour in 1987.

Drucker has written 39 books which have been translated in to 36 languages. Some of the popular books include "The Effective Executive,” 1966; “Management: Tasks, Responsibilities, Practices,” 1974; and “Managing in a Time of Great Change,” 1995. In 2004, he released “The Daily Drucker: 366 Days of Insight and Motivation for Getting the Right Things Done.” Drucker has also written a regular column in the Wall Street Journal for 10 years and contributed frequently to Harward Business Review, The Atlantic Monthly and the Economist. He made eight series of educational films on management topics.

As a consultant, Peter Drucker did not rely blindly on statistics. He liked to probe further by asking important questions to self/ others and thinking through a problem. After answering the questions, the client would come out with solutions themselves. He believed in practising ethics and morality in business as also treating the employees well for best results. He believed that dedicated employees are key to the success of any company. He always put marketing and innovation ahead of finances and problems associated with it. Drucker pioneered the corporate social responsibilty (integrating social and environmental concerns in business operations) concept which is today a norm and a legal requirement in many countries.

Peter Drucker in his books had predicted many of the major developments of the late twentieth century, such as privatization and decentralization; the rise of Japan to economic world power; the decisive importance of marketing; and the emergence of the information society and lifelong learning associated with it. After the big stock market decline of October 1987, Drucker said he had expected it- “Pigs gorging themselves at the trough are always a disgusting spectacle, and you know it won’t last long.” and added further “When you reach the point where the traders make more money than investors, you know it’s not going to last,” .

The motivational techniques of Drucker were used by executives at some of the biggest companies in corporate America, including Intel Corp. and  Sears, Roebuck & Co. Business Week magazine hailed Drucker as “the most enduring management thinker of our time,” and Forbes magazine featured him on its cover in 1997 with the headline: “Still the Youngest Mind.” The "father of management" and his innovative ideas are sorely missed by the industry all over the world. However, he will continue to be fondly remembered in the years to come as the flavour of his ideas is reflected in almost all of the modern management practices.

This post is a part of #BlogchatterA2Z 2023 

Employee Engagement

It is important for an organization to ensure that their employees are actively engaged with their work and have a sense of belongingness to the company. The extent of emotional commitment or a lack of it will determine the engagement level of the employees. Surveys have shown that 50% of the employees are not engaged meaning they do not feel the passion for work or emotional attachment to the organization. They will do what is told and no more. They will not act proactively to avoid problems or whole heartedly involve in the operational success. Therefore, there is a big challenge for companies to increase the level of employee engagement in the company.  

Gallup found that only about 30% of the employees were engaged (who work with passion and feel a profound connection to their company) and that 20% were actively disengaged (Those who are unhappy and spread unhappiness in the organization). Actively disengaged employees spread the negative word about the job or the organization. 

Corporates have been resorting to various ways to enhance the engagement level of their employees such as Communications exercises, reward schemes, activities to build the culture of the organization, team building activities, leadership development activities etc. It is seen that a big reason for not being engaged is the relationship that the employee has with the immediate supervisor and his/her style of functioning. It is important to have managers who are supportive and coach their team members, building on their strengths. Employees feel engaged when they are made aware of the big picture and how their contribution influences the achievement of the organizational goals. 

At Hyunadi Motor India Ltd where I last worked before retirement, periodic Employee satisfaction surveys are conducted to understand what is working well in the company and areas of improvement desired by the employee in various aspects be it their pay, the work environment or opportunities for growth. Suitable corrective action based on results of the survey helps in ensuring engaged employees.  

The company encourages employees cutting across departments to work in small project teams and rewards the entire team on successful completion. This develops a bond between employees, so essential for engagement. Annually, competitions are held during the Foundation Day of the company wherein employees participate in many team events like football and cricket and also in individual events like art and elocution . Prizes are awarded to them on a Sunday when the family members are also invited and events are organized for the family as well. 

Apart from the activites discussed above that creates belongingness to the organization, I would like to share one more initiative, which to my mind contributes in a big way to employee's bond and love for the organization. After two years as a trainee, the eligible ITI technician trainees with a good track record are offered regular appointment in the company . A function for a whole day is organized to celebrate the occasion. The parents of the tecnicians are also invited. 

The participants are picked up by the company vehicle and brought to the Hyundai campus at around 9AM. They then have breakfast at the company canteen and then move to the auditorium where number of programs are arranged for the day. The ED and VP (Production) welcome the particiants to the Hyundai plant. When I worked there, the then VP (Production)  invariably asked the technicians to stand up and then he would say " Now, turn to your parents seated beside you and thank them. They have made many sacrifices to get you to the place where you are today."  I have seen tears in the eyes of parents at this point. He would then tell the parents to continue to monitor the progress of their son. "Just because they have now got a job or may earn more than you, it doesn't mean they  cannot be guided or advised. They are still your sons. See that they do not spend money unwisely." 

There are two more sessions in the forenoon. In the first session all information about the company is given including information about plants located all over the world - Korea, Brazil, Russia, China, Turkey, Czech  and US. The aim is to get the employee and his parents to feel proud about working in an international company. In the second session an expert on family welfare shares tips to the participants on how to lead a harmonious, inclusive, family life where the parents also have the pride of place. The participants then proceed to have a special, sumtuous lunch in the canteen.

 After lunch, parents visit the shop floor and also see the place and machine on which their son would be working. At around 4PM, everyone returns to the auditorium where the formal ceremony happens, of handing over the appointment letter to the technician. He is accompanied to the stage by his parents. The parents are also given a gift as a remembrance of the happy occasion. Finally, the participants who take leave are dropped back to their place of residence. The techician onboarding program is remembered by them with fondness long after the event. The shop floor HR continues to keep in touch with the new employees to ensure their comfortable assimilation into the company. 

Case study: In July 1997,  Kia Motors UK had $10.6 Billion debt. 51% of  Kia was purchased in 1998 by Hyundai Motor Company and steps were initiated for revival of company with a new team. It was felt that Kia UK's , low employee engagement was probably both a cause and effect of the unit's poor performance.  The new HR head proposed the following:  

* Put in place new HR policies & practices including those for improving employee engagement.

* Change employee behaviour to improve performance and reduce turnover of employees

* Support parent company's strategy " Raising our competencies as a global leader in all areas."

* Set measurable objectives for better communication, recognition for good work and respect between manager and employee  

Accordingly, company sent all its managers for training under a "Leadership Development Program"  and tested the new skills with 360 degree assessment tools. Quartely "Outstanding awards" were instituted and "Kia Thank you cards" for jobs well done. Communication was improved by quarterly employee briefings and  introduction of a new corporate intranet called "Kia Vision". Other steps were taken for employee development and welfare including modification of the compensation package. The employee handbook was rewritten in line with the new cultural values. 

Results: # Employee satisfaction surveys revealed marked improvement in employee engagement, in terms of communication between employee and line manager as also improvement in respect to general behaviour.

# The employee turnover figures fell steadily from as high as 31% in 2006 to 15%in 2007, 5% in 2008 and below 2% in 2009.

# There was a 71% reduction in recruitment & turnover costs within two years - by 400,000 British Pounds. 

As may be seen  from our discussion, employee engagement is most desirable and a win- win for both the employee and the organization. Therefore companies would do well to move employees from the 'not engaged' category to 'engaged ' and reap rich dividends! 

This post is a part of #BlogchatterA2Z 2023 

Design Thinking

We generally tend to think in a systematic, linear and analytical manner when it comes to problem solving. Although there has been talk of alternative or creative thinking, the natural tendency is to rely on analytical thinking most of the times. In design thinking(DT), solutions to problems are designed by collaborating extensively with the end users. It makes possible innovative solutions based on how real users think, feel and behave. Unlike as in the case of linear thinking, design thinking goes beyond the obvious and looks at creative solutions. Design thinking was adapted for business purposes by David M. Kelley, who founded the design consultancy IDEO in 1991.

Some of the benefits of design thinking (DT) include reduced time between designing and getting the product to market which also means savings in cost and higher ROI (Return on investment). As DT is user centric, (focusing on humans first and foremost) it paves the way for customer retention and loyalty. DT by its very nature challenges established beliefs and encourages thinking out of the box, and therefore fosters innovation. DT can be applied company wide in all areas/functions and not just in designing of new products. As for example HR has been known to use it to tackle attrition or introducing a new appraisal system in line with the needs and aspirations of employees. It can even be used in our personal life for hosting a dinner party ( Readers may also like to read my 2017 blog titled "Application of Design Thinking in Industry" Here ).

There are five specific steps to the design thinking process:-  

1) Empathize: Find out more about the people for whom you are designing a solution as also their needs & concerns. Answers to questions such as "Who is my user? What matters to this person?" can be obtained by observation and interviews.

2) Define: What are their needs? - create a point of view that is based on user needs and insights and come out with the problem statement.

3) Ideate : Brainstorm and come up with as many creative solutions as possible including "wild ideas".

4) Prototype: A prototype is like a rough draft. How can I show my idea to others- A representation of one or more of your ideas. 

5) Test : Share your proto type idea with your original user and obtain feedback- what works? what doesn't?  

Case Study:  Design thinking was applied effectively and incorporated into their planning process by the Rotterdam eye hospital, Netherlands for transforming patient experience from a grim, anxiety ridden one to a more pleasant experience. In line with the first step of the DT process (Empathaize), the staff of the hospital set out to understand the target user - the patients and their main concern. It was established that most patients come into the hospital with the fear of going blind.  

Under step two (Define), they determined that reduction of fear should be a priority. Accordingly, problem statement was developed on the lines " Patients coming into our hospital need to feel comfortable and at ease." Brainstorming for potential solutions from a range of likely and unlikely sources was done under step three (Ideate). As for example to understand scheduling better, they looked for inspiration to leading airline company KLM and to a supermarket chain Albert Heijn. For  operational excellence, they looked at other top hospitals.   

For step four ( Prototype), the team presented the most promising ideas to the caregivers of the hospital and took their inputs and feedback which formed the basis for informal small scale experiments (Step Five-Test) used as tests for potential solution. The best ideas that worked spread organically to other groups who adopted them with enthusiasm.  

The design thinking approach enabled the Rotterdam Hospital to address the needs and concerns of their customers, finding effective solutions and enhancing user experience of patients. As a result patient intake increased by 47%. The hospital has subsequently won several awards for safety, quality and design. 

As discussed, design thinking with its focus on the user can be profitably employed by us widely throughout the company. HR would have an important role to play if it is to be developed as a copmany wide culture of the organization. 

This post is a part of #BlogchatterA2Z 2023 

Coaching and mentoring

In the corporate scenario, companies turn to coaching and mentoring for enhancing the effectiveness of their executives/leaders by identifying the skills and key strengths to be developed and implementing the strategies for improvement. The desired improvement may pertain to the current job or those required to effectively carry out a higher role.  Although coaching and mentoring happened informally in earlier times in the normal course of work, today coaching is done in a more formal manner, often taking the assistance of external experts. The global executive coaching market is valued at $ 9.3billion. In India, the current market revenue of coaching industry is Rs 58,088 crores and is expected to touch Rs 1,33,995 crores by 2028.    

The International Coach Federation defines coaching as "Partnering with clients in a thought provoking and creative process that inspires them to mazimize their personal and professional potential." The focus is on meeting specific objectives within a set time frame; the accent being on the development of the skills and in turn the performance.  

Mentoring is defined in the Business Dictionary.com as an  "Employee training system under which a senior or more experienced individual (Mentor) is assigned to act as an advisor, counseler or a guide to a junior or trainee". When I was working as AGM (HR) in Hyundai Motor India Ltd, heading the Learning & Development department, we had introduced the mentoring program for our engineering trainees. After six months of inducion to various departments of the company including the Chennai port from where export orders are despatched, the trainees are placed under the care and guidance of handpicked mentors. 

The mentors are given one month training by an external expert who imparts the skills, knowledge and attitude required to be a good mentor. As for example, trust, respect and confidentiality is important to play the role of a mentor or coach. In order to build a rapport right from the beginning, to the extent possible, while selecting mentors, care is taken to match people from the same college or geographical area of the mentee's home town. The initial meetings of the mentor and mentee are facilitated by Learning & Development after which they continue the relationship over longer periods of time. Some retain the relationship for a life time. The mentors are given budgets to take their mentees to a dinner, movie or other informal meeting outside the company premises. The program has over time developed into a robust, effective intervention .     

As coaching is directed at achieving a specific outcome within a set time frame of say six months, the relationship between a coach and a coachee is likely to be short term unlike as in the case of mentoring (longer term). Coaching is more performance driven with focus on improving job performance. Mentoring on the other hand is development driven with focus being on holistic career development. Coaching is generally more structured with regularly scheduled meetings weekly, bi-weekly or monthly. Meetings in respect of mentoring is informal and fixed in accordance with the need of the mentee.

 Coaches are hired for their expertise in a given area that the coachee would like to address like communication skills or financial expertise. In respect of mentors, by virtue of their seniority and experience in the company they are able to provide the appropriate guidance and inspiration to the mentees for effective working. The outcome from a coaching agreement is specific and measurable in the desired performance area. In the case of mentoring, the outcomes and goals could change with time as the focus is not on specific measurable results but on the overall development of the mentee. 

Coaching and mentoring is increasingly being recognized by companies as necessary and important for executives to effectively fulfill the requirements of their role. Today, there are organizations like the International Coach Federation ( which has affiliations in many countries - Indian Coach Federation in our country) to choose from that ensure the desired competence of the coaches. The ICF certified coaches have to undergo a minimum of 750 training hours in coaching before they get the certification. Organizations can also extend training internally to teach leaders and HR professionals to effectively perform the role of a mentor or coach. 

This post is a part of #BlogchatterA2Z 2023  

Benchmarking

Benchmarking is an important business strategy and continuous improvement tool that enables organizations to measure their products, services or processes against the best in the industry. This enables the company to  emulate best practices, innovative ideas and highly effective operating procedures. It is a process of measuring the company's products, services or processes against those of another company held "best in class" in the industry. 

Specific metrics are compared, to arrive at the areas of improvement enabling data based business decisions. It was in 1979 that Xerox coined the word 'Bench marking' when it noticed that some of its Japanese competitors were offering products manufactured by it, at a lower price. The company did a market related benchmarking study (competitive bench marking) for its production department.  Microsoft is another company that uses the benchmarking techniques in a very effective manner.  

Apart from 'External benchmarking" wherein you compare your company against other companies, you can also do "Internal benchmarking". Here the benchmarking is done within the same company between its various units or departments. Benchmarking between shifts or a similar operation or process in other department reveal best practices that can be emulated for the overall progress of the organization. Benchmarking helps to create new methods or improve current practices to attain higher standards. 

The principle of 'Benchmarking 'is very simple and obvious to understand. Even as an individual we can aspire to become better in what ever we do by pitching ourselves against the best. As for example, the name of Ameen Sayani comes to mind as one of the best radio jockeys we have ever had in India. A young RJ can identify particular aspects that led to his success such as the use of voice, networking within the industry, work schedules etc to see the gaps between his performance and that of the maestro. He can then go about finding ways to improve and reach high standards. 

In marketing and sales area, the company may like to compare sales figures for similar products manufactured by different companies/ leading brands or major disruptors in the industry. Other areas that can be benchmarked include production outputs and service delivery timelines. Supply chain would do well to benchmark KPIs such as perfect order rate, inventory turnover and on time delivery percentages. In HR, cost per hire between similar industries and the rentention rate of those hired can be relevant metrics. Quality, cost and time are important parameters for comparison. 

Although benchmarking has its merits as a continous improvement tool, critics point out that it stifles innovative thinking and working for "a better solution" as you tend to be content with copying what is already available, not wanting to waste time in reinventing the wheel. Further, it is very important while benchmarking to ensure that clear and unambiguous objectives are clearly defined. In the absence of correct context, there would be measurement issues and comparisons would be difficult. The barriers to effective benchmarking include lack of accurate data, confidentiality, high costs and unknown competitors. The challenges are all the more if you are a small company with limited resources. 

Organizations would do well to take up the challenge of implementation in a systematic manner by (a) Planning out in detail what you want to benchmark (b) Collect relevant data through research (c) Analyze the data against a clear objective of knowing where you are and where you want to be (d) Develop an action plan and (e) Monitor the progress. 

 Clarity in the process of what you are doing, will enable you to fine tune the bench marking exercise to the company's own unique needs and goals.After all, in spite of the challenges, benchmarking is a useful tool  for organizations to measure internal progress and also meaure its performance visvis world class organizations so as to reach greater heights.   

This post is a part of #BlogchatterA2Z 2023  

Agility in Business

In the 'theme reveal' post for the Blogchatter A2Z Challenge April 2023, I had indicated that I would be writing about Key business concepts in general of which the focus would be particularly on HR (Human resources) matters . As the challenge kicks off today I start" with the topic "Agility in Business"  for alphabet 'A.

 Businesses have for some time now, recognized the importance of being 'Agile' in a a world that has become volatile and uncertain. The customers of today have a lot more options to choose from. Therefore, the need to run faster and smarter to atleast remain in the same place!  Organizations cannot afford to be complacent and rest on past laurels. There is a  need is to be continously innovative in order to meet the new and increasing expectations of the customer, before the competition does. 

It is not sufficient to be the 'first kid on the block' . It is necessary to be vigilant and active for sustaining one's postion. Failure to do so, may result in the competion leaving you far behind. This had happened in the case of AT&T the American telecommunication multinational which was one of the first to acquire knowledge of mobile technology but gave way to other more enterprising competitors. Technologies can change overnight and even make the the old one redundant. As for example movies turned digital and are no longer made on films. There is no fear or the need to be careful to ensure precious film is not wasted for retakes.  What it meant was that a coveted business of manufacturing film roll became irrelevant.

The abrupt changes in the business scenario requires not only adaptability but also speed in the response. Stamina, speed and flexibilty have all become necessary. Even as you run the core business effectively, there is a need to keep your eyes and ears open and be prepared to shift to multiple businesses if need be, quickly  adopt and execute effectively. We have many instances when even older companies such as Shell, which started out as a sea shell company demonstrated flexility & agility to move into other diverse areas like petroleum. In India, Reliance Industries started as a small textile manufacturing unit in Mumbai and has gone on to become one of the largest companies operating in diverse business areas.

 The rapid rise of technology has added to the pressure on businesses to meet expectations. The customers are able to easily compare features offered by competitors and there are higher customer expectations in terms of look, feel and usabilty of products. Here, it is important to tune the culture of the organization to be 'agile' so that the employees are able and willing to meet the new challenges. HR has a big role to play in this regard. Technology is bound to have a bigger say in the way business is conducted in the days to come. The unexpected arrival of the pandemic Covid 19 has ensured that more and more of the 'common man' have been compelled to use it. We have been using Zoom for meetings and communication as never before; even small vendors, used to cash transactions, have embraced Pay TM and other digital modes for payment. 

It cannot be disputed that the VUCA(Volatile, uncertain, complex & ambiguous) world is here to stay and one will have to meet it by being agile and flexible. Yet, it is important to also keep in mind that the uncertainities cannot be be dealt with by pressing the panic button. When our mind is in a whirl, overwhelmed by a large number of debilitating thoughts, we cannot give an appropriate response. Panic will either result in freezing inaction or a desperate over reaction. Appropriate response would automatically come if you have 'agility'  as a part of the organization culture driven by a genuine desire to improve the lot of the customer. Innovation and new ways of thinking then, becomes  a way of life; not a strategy for a battle.  From this place of relaxed confidence, the organization would be able to handle any challenge! 

This post is a part of #BlogchatterA2Z 2023 

Blogchatter A2Z Challenge April 2023 (Theme Reveal)- Key HR & Business Concepts

I have participated in the A2Z challenge for two years when I wrote on random words related to the particular alphabet assigned for the day. This time though, I plan to write on matters pertaining to my discipline as a HR professional for over three decades. Accordingly, key HR concepts will be discussed during the challenge in line with the alphabet of the day. 

 Some of the subjects that are planned to be discussed are agility in business, bench marking, coaching , design thinking, employee engagement and flexibility in management. For three to four alphabets, it is hoped that clarity as to the actual subjects would evolve as we move forward in the challenge. Although the subject may appear niche, as my readers are aware, I write straight and simple sans jargons so that those engaged in other functions/ profession would be able to relate to the content and find it relevant and interesting. 

 Looking forward to your support whole through the challenge. I also plan to read as many as possible, the submissions of other participants.