IMR JAN 2013 - Indira Institutes

SETH PROJECT CONSULTANTS LTD:STRIVING FOR GROWTH*Dr. Arvind Sudarsan, **R. Raghunathan and*** Jayashree Mahesh(* and **Assistant Professor, and *** Lecturer in Management, BITS,Pilani 333031(Dept of Management )Management activities are often discussedand analyzed using static analysis therebyfailing to accurately communicate thedifficulties of operating in an environmentwhere decisions have to address severalfactors simultaneously and have unexpectedconsequences. This case is based on theproblems faced by an organization in itseffort to improve its growth rates. While thesituation described touches upon variousareas of management in an organizationalsetting beset with problems and confusion,the focus is on depicting the interrelatednature of different aspects of managementand with particular reference to Indian workconditions.IntroductionSeth Project Consultants Ltd. (SPCL)provided project management consultancyand services, primarily for large constructionprojects. Over the years it had earned a goodreputation and was well regarded. The onlydrawback was that its growth was steadyrather than spectacular and itsPromoter/Chairman was very eager toremedy that aspect.After several consultations and meetings, themanagement of SPCL agreed that someexternal assistance might be required tomeet its promoter's aspirations. To that endthey appointed leading advertising andmarketing consultants to project the imageof SCTL to a higher level and to help themgrow their business. In addition someinternal changes were also implemented(spread out over a period of a year or so). Onenoticeable break from the past was theappointment of the new CEO. Until then, SPCLhad always been run by an Operationsexecutive. The new CEO, however, was aFinance man, who had caught topmanagement's attention several years agowhile spearheading the installation of a newProject Management Information System.The advanced accounting features of the PMIShad later come in very handy, not only bysaving the company a lot of money, but also byhelping it to avoid legal and othercomplications during a dispute with a verypowerful customer. That had cast the then GM(Finance) into the limelight and acceleratedhis rise and when the current CEO waselevated to MD, the once upon a time GM(Finance) became the CEO.The last major change concerned theorganization structure. Earlier, temporarypure project organizations were formed tohandle each new project under a seniormanager (the Project Manager (PM)). Projectswere largely industrial or government. Now,the businesses of SPCL were reclassifiedunder four heads - Industrial, Government,Commercial (non-industrial) and Residential,and a new Business Head position (termed asGrade A1) (1) was introduced to head eachbusiness group. The Business Head reportedto the DCEO. The PM designation and positionwere still retained, but while previously PMswere mobile and freely moved across projectswithout reference to whether they wereindustrial or government, now they were70 Indira Management Review - Jan 2013