Most experts believe that strong leadership is not only essential for a company to succeed but is vital for its very survival. Past accomplishments are never a guarantee for continued future success. Renowned global Companies like Nokia, Kodak, MySpace, Yahoo, Xerox, PanAm, Lehman Brothers, BlackBerry all went under. Similarly, certain Indian Companies – Hindustan Motors, Jet Airways, Micromax, Videocon, Kingfisher Airlines, IL&FS, DHFL, YES Bank, Reliance Communication met a similar fate. Experts opine that there is no one cause that leads to a company’s downfall but Leadership is often a decisive factor. Steve Jobs – Apple, Satya Nadella – Microsoft, Lisa Su – AMD, Shantanu Narayen – Adobe, Jensen Huang – NVIDIA, Howard Schultz – Starbucks, Dhirubhai / Mukesh Ambani – Reliance, Naveen Jindal – Jindal Steel and Power, Jamshedji/Ratan Tata – Tata, Kiran Mazumdar Shaw – / Biocon, N.R. Narayana Murthy – Infosys, Anand Mahindra – Mahindra Group etc. have proven that Leadership makes a critical difference. Weak leadership and poor decision-making are common traits among companies that failed. Additionally, poor leadership results in decreased employee morale and customer satisfaction further deteriorating a company’s performance.
India has seen a number of sterling success stories amongst Government owned Companies. Despite the popular notion amongst the common man that Government Companies lack a cutting edge which Private Businesses possess, some Government Companies have outclassed their Private counterparts. One such leading Govt. Company in the Oil & Gas domain stands out as an instance of unmitigated business success, contributing to nation building and customer satisfaction. This Company has consistently been in the Global Fortune 500 list and is recognized all over the world as an example worthy of emulation. A Board driven Company, under the Ministry of Petroleum & Natural Gas, it has produced outstanding leaders who have made left their mark in the world of business. They have not only taken this particular Company to greater heights but have gone on to become leading Govt & Private Companies CEOs. This Company has been the bulwark of India’s Energy Security and tided over many an energy crisis.
Notwithstanding any past accomplishments, experts are of opinion that a Company, despite appearances, may not really be in the pink of health. Referring back to this company opinion leaders are today, kind of concerned that the leadership of the company has not been able to stem losses (whatever be challenges), post profits, do justice to its Shareholders, adequately diversify, bag new Projects, keep up the expansion in allied business areas like Petrochemical & Gas. Customer Satisfaction is low and complaints are on the rise. However, the Leadership seem to be obsessed with relatively trivial issues. Experts and Veterans of the Industry feel that even the general atmosphere inside the Company is getting effected. Instances of Employee Suicides and inability to prevent even Murder of employees, amongst other factors, have tended to impact the morale of human resources. Tinkering with established Personnel Policies has led to a situation of dual salary system, different wage fixation for similar employees during intake, low staff intake, lack of adequate feedback systems, impactful training, dissatisfaction amongst Collectives have emerge,. Rattling many. There has not been any great HR initiative either. Dual policies amongst the Divisions have continued to make things difficult to implement administratively. Observers cite the glaring example of Payment of Increased Family Pension under the EPF & MIsc. Prov Act, being paid to employees of one Division while the employees of other Division have been denied this Statutory Welfare benefit. All this, despite Court decisions in favor of employees. Many are questioning how come a Company has two set of policies for same employees? Dissatisfaction has led to several HR related Court Cases. Due to a Rigid Cadre difference within ‘One Company’ there actually exist ‘Two Companies’ which do not allow free follow of ideas, policies and men amongst them. Also, there is a general tendency to maintain status quo rather than change with the times. The planned structural alterations like planned removal of Director’s position, in as many as four Divisions, – Pipelines, R&D, BD and HR have created a lot of uncertainty and reduction in the Board Level representation of Employees. The leadership positions have gradually been lessened.
Veteran observers cite that the leadership (maybe with all good intentions) seems to have embarked on an internal modification exercise laying emphasis on factors like Improved Technology, Leadership Development, Downsizing the Board, Cost Cutting, Reduction in Developmental Training Programs, removal of posts of several Directors and amalgamation of certain Divisions. Surprisingly, the actual impact on the Company seems to be just the opposite! A spate of Senior Executives has left the Company for greener pastures elsewhere. This has prompted many to ask -What’s the use of training and trying to develop a leadership pipeline when the incumbents leave. Is the Training for developing leadership actually for other (rival) companies? The reduction of Divisions has resulted in widespread demoralization. Potential leaders feel that the future path is blocked. Many are thus openly seeking careers elsewhere, which is not a very healthy HR atmosphere for any company.
The proposed promise of creation of Four MD posts is being seen as adding greater responsibility without attendant benefits and a position in the Board. An MD does not carry the same weight as a Board member. An appeal to the general Public for ideas in improving Technology in the company seems to be a bit farfetched. In a High-Tech Industry like Oil & Gas, General Public can hardly be expected to contribute in improving technology. Funnily, a Poster released on the occasion had wrong spellings of Technology. Regarding cost cutting also the areas being considered seem to be old, hackneyed ones – Reduction in Tours, Cutting Costs of Travelling Expenses, Reduction in Developmental Training, Reduced recruitment against even sanctioned positions (excessive spreading of employees is never a good idea. Curtailment of meetings with retired employees, Non-Celebration of Founders Day, reduction in ‘Chai Pani’ Expenses etc. can hardly be expected to reduce sizeable costs. On the contrary, arresting Steam Escape in Refinery, avoidance of spillage, avoiding cost over runs in project(s) implementation, proper estimation and overall reduction in tenders time and costs, stoppage of Cartel formation by vendors, reduction in Catalyst cost in Refineries, proper and on time maintenance of equipment and Pipelines, reduction of demurrage, recourse to out of court settlements instead of litigation etc. New blood brings in ideas, as they say, optimal use of AI for projected outcomes and selection of right paths are some areas which need to be addressed forthwith. It’s time that realization dawns upon the current leadership. What may sound impactful and garner hits in the social media may not actually result in intended outcomes. Serious business activity demands hard business decisions (even unpopular ones). Imposition of restrictions on the human capital is not a cure all. Already considerable business has been lost to Private Players. Building dams and Consolidation is the need of the hour. Yet it is merely the tip of the iceberg and an in-depth analysis would flesh out the correct picture. This Article has no intention of criticizing or hurting any Person or the Company. Unintended offence, if any, may kindly be pardoned.
Readers will appreciate, time has come for a big ‘Shout Out’ Well-wishers will love to see India and Indian Companies prosper. All in good time it’s said, Now, is the Time for accioun! ‘Medicine after the death of Sohrab’ is a Persian proverb, appropriate for paraphrasing in situ. Still nothing is lost but course correction is a must.
