IMR JAN 2013 - Indira Institutes

Seth ConsultantsBrief Summary of MD's AddressMD: "Thank you all for being here. As youmight be aware last week we had a topmanagement meeting with all the DCEOsand Business Heads. Certain issues werediscussed and we thought that some of thoseshould also be informed to everyone here.Briefly we have several points on the agenda.In fact some of those points were mentionedby the CEO in his address a few months agoabout future paths.Specifically, since we are approaching ourhistorically lean season, and this is the timewhen many of you avail of your leaveentitlements, there are some points youmight want to ponder over when you arefree, in your spare time.To start with there were some issues aboutcentralization and decentralization acrosslocations, business, projects, departmentsand teams. These questions have assumedgreater importance in view of the changesthat have been initiated by which we areimplementing greater delegation ofauthority and responsibility to the employeeon the spot to make decisions. We haveimplemented policies empoweringemployees across the company toparticipate effectively in the new schemesinitiated in various operational areas,including business development and newproduct development and we expect yourenthusiastic participation.In our last meeting with the chairman, wehad suggested certain goals regarding ourcompany. I may tell you that the chairmanwas quite appreciative of all that we haddone, but thought that we should stretch ourgoals. For example, revenues from newcustomers, products and businesses are verysmall right now and he did not feel thatmerely setting a high growth target on suchsmall bases was appropriate. Therefore wefinally decided on some more challenginggoals based on absolute values. We decidedthat these might be better set as percentagesof our total revenue i.e. what fraction of oursales should come from these areas. Pleasealso be aware that these are stretch targetsand therefore quite demanding. We havestudied some innovative companies such as3M and decided to set out own goalsaccordingly. The goal is that 50% of our totalrevenues should be generated from theseavenues – new customers/marketscontributing 10%, new products from theexisting businesses 20% and new businessesanother 20%, thereby doubling our existingrevenues from their current levels.This is possible only if each and every one ofus is involved in the effort to generate newbusiness. In fact we have always beenencouraging employees in this regard in thepast as well i.e. to say employees generatingnew business for our company have alwaysbeen recognized and rewarded. The onlydifference now is that everyone must beinvolved in this activity. If you have contactsoutside, follow up and tell them what we cando for them. When you go to the sites andmeet representatives of other organizations;when we are bidding and you meet the privateand public agencies issuing the tenders; andin general, whenever you come across someproject activity or meet people involved inproject activity, tell them what we can do. Andwhen you come back, inform the respectivedepartments here so that they can follow up.Coming to the matter of new business andproduct development: we have alreadyIndira Management Review - Jan 2013 75