Sunday, September 1, 2002		Books

Doing business is tough, so get tougher
Chandra Mohan

The Agenda
by Michael Hammer. Random House. Pages 269. Rs 900.

WE live in a totally different world today, a world of excess supply and infinite choice. Suppliers can no longer fool us; education has made us wiser to analyse the pros and cons. Instant access to worldwide information has widened our choice and horizon to the entire world. Not only are we conscious of our power against suppliers, but also are ready to call the shots. We have truly emerged lords and masters. This leads us to the key question facing every CEO: How to survive in the new turbulent environment?

Today the customer is sharp. He is hard-pressed for time and always in a hurry. He demands hassle-free performance with no headaches. He demands full value for his money. The issue is how to attract such a customer. Hammer coins a very interesting phrase for what every industry will have to become: Easy to do business with, ETDBW. Are your products tailored to market needs to the last detail? Does it provide him maximum value addition compared to the competition?

Can you make his choice easier? Can your order placement be simple? Can your delivery be faster? Do you keep him regularly apprised of delivery status? Does he get what he ordered, safe and sound and complete in every respect? Has it all been handled with courtesy and a smile? Are all his questions attended promptly? Has the entire process made him happy enough to praise you to his friends? Has his first experience delighted him enough to make him return for his next purchase, and again, and again? Therein lies the hallmark of success. This is what makes the likes of MacDonald, Ferragamo, Walmart and our own Haldiram stand way above the competition. That is what makes their growth defy every rule.

The task is certainly doable. But getting there is serious business. It is clear and unambiguous vision, followed by determined translation into ground reality. This in turn requires: Clear goals sub-split into specific projects; assignment of projects to specific teams and their leaders; tearing down inter-departmental walls in project teams; setting clear project goals and measurement yardsticks; providing resources to teams and leaders; training teams in scientific approach to problem-solution; regular monitoring and review; awards and celebration of success to promote new culture across the organisation.

CEOs of today understand the power of processes when harnessed. But they also understand how difficult harnessing is. Every organisation has its own past culture of dos and don’ts, of unshakeable legacies and dogmas. Leading an organisation to change this entrenched culture to a totally new dimension can only come through CEO obsession with installing new end-to-end processes that create value for the customer. Weaning of fence sitters and converting die-hards will not be easy. Their interest in maintaining the status quo is infinite; maintenance of status quo is easy and requires no effort; it extends their present comfort zone and throws no unpredictable challenge to their present power and authority. They can marshal overt and covert subversion of the changed culture because of past linkages.

Constant preaching by walking around, day-in and day-out practice and demonstration, reward and recognition to successful practitioners, and changing tack whenever an intractable hurdle surfaces, will alone lead to success. The key word to remember is not to lose heart but persevere onward relentlessly. So long as the goal is exciting and motives unselfish, the caravan shall pick up followers, slowly and steadily. This will slowly unfold the infinite multiplier strength of empowerment of every individual in the organisation. Such release and channelisation of energy towards the long-term good of the organisation will alone make us ride the tempestuous seas of today. The hand-me-down approach of the past is a sure route to disaster.