Docstoc

Profit from the Core Growth Strategy in an Era of Turbulence

Document Sample
Profit from the Core Growth Strategy in an Era of Turbulence Powered By Docstoc
					Emerging Organisation Models & People
              Practices




            S.Varadarajan
           raja.sv@wipro.com
           November 2003
                 S P E C T R A M   I   N D
         Points for discussion

 Present challenges
 Characteristic features of an
  Organisation
 Coping with the challenges
 Organisation of the future




                        S P E C T R A M   I   N D
Present Challenges !
 Transition era
  – Industrial Revolution to Information
    Revolution
  – I T explosion
 Turbulence & intensified competition
  – Anywhere, anytime, anything
  – Immediate impact of market changes…..little
    time to react
 Global Complexity and Increasing
  interdependence
 Emergence of new sets of values to do
  with such issues as quality of work life &
  environmental conservation
                             S P E C T R A M   I   N D
      Characteristic features of
           Organisations
 They are social institutions
 They are ‘socio-technical’ systems
 They are enduring
 They are made up of
  interdependencies across
  – Structure
  – Systems, procedures and processes
  – Culture


                       S P E C T R A M   I   N D
       Coping with the Challenges
 Information Explosion & New Technology

 Flatter organisations for empowered
  employees
 Knowledge intensive specialists
 Constant networked flow of information –
  Information based organisations
 Span of communication will take the place of
  span of control


                           S P E C T R A M   I   N D
        Coping with the Challenges
    Turbulence & Intensified Competition
 Functional flexibility
   – Ability to re-deploy rapidly and smoothly
        • Multiple customers, multiple needs
   – Multi-skilling – radically improve
     effectiveness, rapid and short learning
     curves
   – Hire for attitude and train for skills
• Attracting and retaining talent will be a major challenge
• More involvement will be there from Government, to focus on
  education suited to industry needs and
• Private enterprises will participate in education & industry much
  more
                                          S P E C T R A M        I    N D
        Coping with the Challenges
    Turbulence & Intensified Competition
 Functional flexibility
    – Ability to re-deploy rapidly and smoothly
    – Multi-skilling

 Numerical flexibility
    – Expand or contract headcount
    – New flexible organisational model with
       radically different employment policies




                                           S P E C T R A M   I   N D
          What will not work………

                       Type name here
                        Type title here




Type name here     Type name here     Type name here
 Type title here    Type title here    Type title here




                                           S P E C T R A M   I   N D
   Leadership Implication of New Realities
                        Type name here
                         Type title here




 Type name here     Type name here     Type name here
  Type title here    Type title here    Type title here




• More of a Hub & Spoke structure
   - Need for ‘effective networking’ capabilities
• Passion for Learning
   - Capability & Willingness


                                                          S P E C T R A M   I   N D
The Flexible Organisation



       Outsourcing              Part-time
                                employees



                                         Agency
 Licensees,          Core                temps,
 Franchise           Business
                                        students
                     Activity
 operators                             Seasonal &
                                         casual

         Facilities       Self-employed
       management          contractors
      Sub-contractors




                                        S P E C T R A M   I   N D
        Coping with the Challenges
    Turbulence & Intensified Competition
 Functional flexibility
    – Ability to re-deploy rapidly and smoothly
    – Multi-skilling

 Numerical flexibility
    – Expand or contract headcount
    – New model with radically different
      employment policies – flexible employment
      terms
    – Effective hiring strategy including
      • Aligning employees to Organisational Values and
      outsourcing be a challenge
         strategy will
       •   Emotional alienation and pay disparity will be the
           major implications of the new order for employees.
       •   Successful organisations will develop outsourcing
           agencies, similar to the concept of vendor
           development, by manufacturing organisations in the
           past.
                                           S P E C T R A M      I   N D
           Coping with the Challenges
       Turbulence & Intensified Competition
   Functional flexibility
      –   Ability to re-deploy rapidly and smoothly
      –   Multi-skilling
   Numerical flexibility
      –   Expand or contract headcount
      –   New model with radically different employment policies

 Financial flexibility
      – Ability to adjust wage and salary costs to respond to
          changes in market conditions including
            • Competitive pressure on costs
            • Shortage of key skills
            • Local labor market characteristics
      – Fixed & performance related variable pay
• There will be a disparity of salaries and a small proportion of employees will continue to be
    pampered and over-paid.
• This disparity will cause employees to search for clarity on rewards & compensation and will
    drive them to find their career anchors.


                                                            S P E C T R A M                   I   N D
          Coping with the Challenges
Global Complexity & Increasing Interdependence


 Fading out of the ‘boundary fence’
 attitude
  – Edges fuzzy enabling Velcro approach
  – Adversaries becoming collaborators /
   partners

 Creating a global identity
 Strategic alliances
 Cross cultural & Global awareness
                           S P E C T R A M   I   N D
                    Coping with the Challenges
              Changing Value Systems in Organisations
  Efficiency & international competitiveness can be
   consistent with concern for people
  Concern for wealth creation & profit can be balanced by
   concern for legitimacy by the exercise of social
   responsibility
  Concern for environment & non-renewable resources can
   be balanced with selective growth & discovery of
   renewable resources
  Multi-level participation & entrepreneurial innovation can
   balance the trend towards centralization and increased
   bureaucracy
  Self-reliance can be balanced with co-operation &
   partnership without descending to paternalism
  Quality of life can be balanced in a world that is still
   growing
Source: Howard Perlmutter, Director, Worldwide Institutions Research Center
                                                                              S P E C T R A M   I   N D
Employers & HR professionals with the values of
          the post-liberalisation era
  Organisations in the future will need to tackle the
   negative effects of process orientation.
  They could do this in 5 ways
     Have a long-term orientation and a balanced approach
      to business, and change their mindset of trying in vain
      to please shareholders every quarter
     Define, communicate, emote and teach their
      organisational values to provide employees with
      uniform motives that would lead to consistent
      behaviour
     Engage employees emotionally and contest the
      increasing dehumanisation of the workplace
     Have a balanced staffing strategy and not rely only on
      lateral hires
     Invest in talent and leadership development of their
      employees, while creating learningEorganisations and D
                                      S P    C T R A M I N
Some more challenges….
 Work Life Balance will be in complete disarray as
  commercial comforts & luxuries increasingly become
  seen as the fruit of labour
 Long and erratic working hours will cause an exponential
  increase in stress levels and associated health problems
 Many will find solutions to their work-life imbalance
  through self-imposed sabbaticals and looking for peace
  through spirituality
 Employers will do their bit by allowing flexi-timing and
  implementing other women-friendly policies as women
  become preferred employees
 To bring back an equilibrium, men will need to learn life
  skills. This will be an important driver of society’s
  preparedness in the future         S P E C T R A M      I   N D
To conclude …..

          What is the
   organisation of the
              future?

             S P E C T R A M   I   N D
 Different strokes by different folks

 Information scientists concentrate on
  adapting Organisation to new
  developments in I T
 Economists concentrate on effects of
  instability due to heightened Competition
 Biz Strategists concentrate on
  Organisation complexity and how to deal
  with it
 Sociologists & Conservationists focus on
  influence of changing values &
                         S P E C T R A M   I   N D
So the art of Organisation design in
         the next decade…
                    Ability to balance
                     awareness of the
                     four sets of
                     influences
                     – Developments in I
                       T
                     – Increased
                       competition
                     – Complexity
                     – Changing values
                    Across
                     – Structure
                      S P E C T R A M   I   N D
The Organization of the future

   Forces          Structure         Systems /         Culture /
 making for                         Procedures          Values
  changes

Information        Flatter        More flexible,   More like the
explosion & I T     structures      more user         orchestra than
                   Fewer levels    friendly          the factory
                    of management  More rapid       Knowledge &
                   Fewer direct    transmission of   expertise more
                    workers         timely            highly valued
                   Communication   information       than position in
                    networks                          hierarchy




                                         S P E C T R A M        I   N D
The Organization of the future

   Forces                         Structure                 Systems /                           Culture /
 making for                                                Procedures                            Values
  changes
Information explosion & I T      Flatter structures          More flexible, more user        More like the orchestra
                                 Fewer levels of              friendly                         than the factory
                                  management                  More rapid transmission of      Knowledge & expertise
                                 Fewer direct workers         timely information               more highly valued than
                                 Communication networks                                        position in hierarchy



Increased                      Inbuilt           Flexible &        Development
turbulence,                     flexibility thro   variable           of strong
intensified                     separation of      payment            cultural norms
competition                     core activities    systems            in core,
                                from peripheral  Increasing use      focusing on
                                ones               of IT to           quality,
                                                   develop ‘early     service, cost
                                                   warning            effectiveness,
                                                   systems’ to        etc.
                                                   detect change      surrounded by
                                                  Different hiring   a range of sub
                                                   strategy to        cultures
                                                   attract talent
                                                                     S P E C T R A M                          I    N D
The Organization of the future
   Forces                         Structure                     Systems /                          Culture /
 making for                                                    Procedures                           Values
  changes
Information explosion & I T      Flatter structures              More flexible, more user       More like the orchestra
                                 Fewer levels of                  friendly                        than the factory
                                  management                      More rapid transmission        Knowledge & expertise
                                 Fewer direct workers             of timely information           more highly valued than
                                 Communication networks                                           position in hierarchy


Increased turbulence,            Inbuilt flexibility thro        Flexible & variable            Development of strong
intensified competition           separation of core               payment systems                 cultural norms in core,
                                  activities from peripheral      Increasing use of IT to         focusing on quality,
                                  ones                             develop ‘early warning          service, cost
                                                                   systems’ to detect change       effectiveness, etc.
                                                                  Different hiring strategy       surrounded by a range of
                                                                   to attract talent               sub cultures


Complexity &                   Fuzzy                           Inter-orgnl    Development
interdependence                 boundaries                       systems for     of ‘hybrid
                               Complex                          communication   cultures’
                                ‘tangled’                        & exchange of  Balancing of
                                structural                       info            value placed
                                networks                        Growing use     on competition
                               Strategic                        of expert       with value
                                alliances / JVs                  systems for     placed on
                                                                 problem         collaboration
                                                                 solving P E C T R A M I N D
                                                                      S
The Organisation of the future
  Forces making                            Structure                           Systems /                           Culture /
   for changes                                                                Procedures                            Values
  Information explosion & I T            Flatter structures                 More flexible, more user          More like the orchestra than
                                         Fewer levels of management          friendly                           the factory
                                         Fewer direct workers               More rapid transmission of        Knowledge & expertise
                                         Communication networks              timely information                 more highly valued than
                                                                                                                 position in hierarchy

  Increased turbulence, intensified      Inbuilt flexibility through        Flexible payment systems          Development of strong
  competition                             separation of core activities      Increasing use of IT to            cultural norms in core,
                                          from peripheral ones                develop ‘early warning             focusing on quality, service,
                                                                              systems’ to detect change          cost effectiveness, etc.
                                                                             Using IT to win competitive        surrounded by a range of
                                                                              advantage                          sub cultures

  Complexity & interdependence           Fuzzy boundaries                   Inter-organisational systems      Development of ‘hybrid
                                         Complex ‘tangled’ structural        for communication &                cultures’
                                          networks                            exchange of info                  Balancing of value placed on
                                         Strategic alliances / JVs          Growing use of expert              competition with value
                                                                              systems for problem solving        placed on collaboration


  New Systems of                       Networks                           Development                      Key values:
  values                                replace                             of Systems &                      Putting people
                                        hierarchy                           procedures for                     first
                                       Influence                           evaluating                        Respect for
                                        replaces                            social &                           individuals
                                        authority                           human costs
                                                                            of orgn                           Quality of life
                                       Autonomous                                                            Balancing
                                        work groups                         activities
                                                                           Single-status                      wealth
                                                                            terms &                            creation with
                                                                            conditions of                      social
                                                                            employment C                       responsibility
                                                                                S P E                        T R A M               I    N D
  Parting thoughts . . . .
“ No limits to the future
There are no limits to the human imaginatio
There are no limits to our capacity to chang
There are no limits to our capability to impr
There are no limits to our willingness to ach
There are no limits to our dedication to serv
There are no limits except those we set our
There are no limits.”


                         S P E C T R A M   I   N D

				
DOCUMENT INFO
Description: Profit from the Core Growth Strategy in an Era of Turbulence document sample