Can you achieve excellence through Value based Management?

Value Driven Management is a management through ethics and values. Values are such gems which appreciate with time. In other words, we can say that ethics & values are core of Indian belief system. If they are deeply rooted in decision making and influence the vision and mission of the organization, then we can say that such an organization is a value driven organization. Now the question arises: what is value or ethics? Is it really giving due importance to people, process, planet?

Earlier people used to give value to almost everything. My father had purchased a second hand bi-cycle 40 years back, and 2 of my uncles, my elder brother, myself and one of my cousins used the same bi-cycle to commute to our schools. There was a feeling of sharing and caring amongst the family members. Now it’s the time of “use and through”. It may be a case of particular goods, services or relationships. Just in time supply is available in most of the cases.  Probably outsourcing is a best example of this arrangement.

In general, the purpose of business is to fulfil the unfulfilled needs of a group of peoples. There is no harm in exploring the outsourced options provided strict controls over third party services are ensured. Recently we purchased a washing machine of an international brand from an electronic store near to our home. By chance a defective machine was delivered which had a problem in its motor. When we spoke to the store manager then he replied that he has registered a complaint and now it is the duty of a service team of the company to look into complaints. When we contacted the service team then they replied that the service center will attend the complaint. Means everything was outsourced. All of them enjoyed their share of revenue but none of them was interested in taking responsibility. Anyhow after our heat argument, store In-charge arranged delivery of fresh pieces. Point here needs to be noted that to be a good human being we have to speak the truth. At the time of sale people talk about a lot of good things and after the sales they show too much irresponsible behavior. It creates distraction amongst the probable customers.

Investment in People

In human index 2020 India was ranked at 131st place. China was ranked 85th and Pakistan 154th. From Asian countries only Hang Kong was ranked 4th. It’s a pride for all Asians. Suppose there would have been any ranking in social disturbance, political mistrusts, violence etc then definitely we would have been secured top ranks. We don’t need to go anywhere. Our neighbor Hang Kong may be a path shower and guide to entire Asian countries.

In today’s modern management practice every effort is being done to maximize the shareholders’ value. Means increasing the profitability, earning per share, cash flow etc ignoring the other stakeholders such as customers, vendors, employees, Financers, Govt etc. In contrast, value driven management gives due importance to all stakeholders. There is win-win trade with customers and vendors. Employees are considered as an integral part of the organization and they are treated with due respect. They are not considered as a resource rather they are considered as a resource of unlimited possibilities.

Now question arises that how does a people focused culture feels like in a High-Performance Successful Organization? When there is a feeling of trust, accountability, care, transparency, collaboration, loyalty, camaraderie, safety and respect, renewal and capacity building then you can believe that organization is value based.

In a program at Ahmedabad Management Association Mr. Paresh Saraiya Chairman of Transpek Silox Industry Pvt Ltd talked about decision to establish his manufacturing unit in a village far away from Baroda city. He clarified that for him economic benefit is required but not in isolation. He wants development of the village areas, employment, proper schooling, roads and greenery in the village. He was familiar with even laborers and ensured that their children go to school regularly.

Once a stock option was announced in his company for all employees on pay-roll. At that time there were 200 employees on the contractor's payroll. Same time Mr. Atul Bhai Shroff his partner suffered a minor heart attack and was admitted to hospital. Paresh Bhai Saraiya visited to see him in ICU. In ICU Atul Bhai asked how many contract workers they have in their factory? Paresh Bhai reminded him that he is in ICU and this issue can be discussed later on, but Atul Bhai insisted. Same time Atul Bhai advised him to take all contract employees on payroll and allot them stock options. By taking all contract workers on payroll they have to incur huge additional cost annually, but they did it. We can just imagine what commitment & love of such Management Guru’s towards every single employee. It is a proven fact that if your input is correct then output is bound to be correct. If you love anyone genuinely then the opposite party is bound to be dedicated and responsible. Companies Share of Rs10/- reached to Rs.950/- within 2 years. Many of laborer’s sold their shares and purchased houses.

Once upon a time they could not give increment to their staff for 3 years due to financial trouble. However, they had a very engaged team. Based on their straight forward values they managed technology from no-1 European and Japanese companies and they are able to produce European quality agro-chemicals at Chinese rates. Nowadays they have turnover of more than 1000 Cr. Out of which 35% is from export.

There are many entrepreneurs who never went to top class MBA schools but their values are taught in MBA colleges. Take the example of Ratan Tata, Narayan Murti and Ajim Prem Jee. Their contribution towards society is exemplary. Learning from them forced the Govt. to bring Corporate Social Responsibility in Regulation. Still, many corporations are doing just eye wash in the name of such rules, not because they cannot afford but since they don’t believe in values. They just believe in their greed and selfishness.

After leaving the job in March 20 financial crisis caused worry to continue our free vibrionic medical services to society. All though I never discussed it with anyone but almost at same time our Sr. Partner Sri Narender Tiwari expressed his willingness to finance all medicine & equipment costs voluntarily. However, I could not honor his willingness to comply with the by-laws of the International Vibrionic Practitioners. However, his offerings encouraged me to continue the program with more enthusiasm.

  

Investment in Process

At the end of Mahabharata war Ashwatthama killed Pandavas 5 sons and many relatives in their camp when they were sleeping. Aggrieved Pandava’s started searching for him and found in Maharshi Vyasa Ashram. Arjun and Ashwatthama targeted each other with their super destroying weapon “Brahmastra”. Arjuna had complete SOP of targeting, shooting, realignment and withdrawal. Ashwatthama had no SOP and he was aware about part of the activities. As a result, he was not able to withdraw the weapon like Arjuna did and he got cursed. Such is the importance of Standard Operating Procedure.

It is believed that making a value-based resource is to establish peace on the planet. For this purpose, leadership has to make balance amongst task, relationship, empowerment, Authority and Team Building. Every single person is expected to work and contribute to defined processes. Means organization has to be process driven. Additionally, the organizational atmosphere needs to include learning, enjoyment, Autonomy. All these are possible only if there exists Standard Operating Practices. By these steps what is achieved is Performance only. Transpek Silox Industry Pvt Ltd performance evaluation parameters have 30% weightage from value driven areas. 

I experienced that our Indian Audit firms do not give due attention to standard operating procedures, as a result organization do not succeed in capitalizing the audit efforts. Happening of an adverse event may be normal and inevitable sometime including its detection in audit. However, it would be unfortunate if the failures are not capitalized by updating the standard operating procedures. In case of adverse experience SOP’s are updated so that necessary checks and balances could be implemented.

Investment for Planet

In Shanti Parva of Mahabharata Krishna took Yudhishthira to Pitamah Bhishma to understand the secrets of life. In addition to many thoughts on politics, sociology and economics Pitamah suggested him to plant trees and protect nature. This was the importance of nature in human life in our ancient era. When many Kauravas killed Abhimanyu then Arjuna promised to eliminate the Jarasandh who was guilty of stopping Bhim & team from entering into circled defense formation. Arjuna said that if he could not keep his words then it would be equal to sin of polluting the rivers. Meaning thereby in the ancient era when there were no factories still purity of rivers was respected and ensured.  

Working for the planet means taking care of the planet. Using energy/resources judiciously, planting the trees etc. Many people have taken this task with due enterprising skill and really working for the wellbeing of the planet. Mr. Yogesh Rawat our co-editor has taken a self-resolution to convert Shipra Suncity in green city. He has planted more than thousands of trees in Neem, Jamun and Sheesham. Anyone can see their footprint anywhere in and around Shipra Suncity.

Paresh Bhai too has planted many trees around his factory and encouraged villagers to do so. He has himself planted more than 75,000 trees.

To make our growth sustainable for medium and long term we need to adopt value driven management in our organization. So that every stakeholder remains collaborative, responsive and partner in our growth history.

My Guru Sri G Narayana always say that “Building competitiveness and achieving excellence through value driven management means attaining stakeholders joy with quality, speed, reliability, flexibility, and economy, through offering and receiving process of love and dedication, value and work, knowledge and learning, trust and responsibility by a perfect combination of path showing leadership and path travelling peoples of responsible leaders and effective teams. Then industry, business units and India can realize prosperity, success, growth and right policy”.

Therefore, let's walk on the path of value driven management as a visionary and missionary and achieve excellence in all fields.