Monday, March 24, 2014

Breaking (s)even: Financial Express 16th March 2014 (Book Review)

THE VISIONARY Leaders for Manufacturing (VLFM) Programme, which was spearheaded by Shoji Shiba of Japan International Cooperation Agency (JICA), has worked around helping Indian entrepreneurs to understand their business requirements better. Shiba in his book, 7 Dreams to Reality, shares the narratives of seven such enterprises, which brought about a change in the way manufacturing is done in India. While these examples were clearly witnessed in the manufacturing sector, they could be paradigms that can be used by any company in the country.
The case studies chosen here are real examples of entrepreneurs who enlisted for this programme. The VLFM programme starts with the thought that the term ‘to teach’ sounds arrogant and what is better is ‘a learning environment’. Further, Shiba argues that the fishbowl experience is necessary for all. The thought here is that unless you get into the middle of the action, you do not know what transpires inside. This analogy can be carried to the shop floor, where one needs to get their hands dirty to really experience what it is like inside. Often, there is a disconnection between what happens at the corporate office and the reality in the factory. This can be bridged only by getting into the fishbowl. He differentiates between the small ‘m’ mindset, where we refer to just manufacturing, and the big ‘M’. Manufacturing has several other aspects like design, research, sales, supply chain, etc, which is affected by technology, societal and environmental change. Expanding one’s own vision from small ‘m’ to big ‘M’ is the transformation that is required. A unique idea introduced here by the author when transforming a business is to develop the three eyes of Buddha. The third eye in Buddhism is associated with enlightenment. In management, the three eyes indicate three possible directions of problem-solving, each using a scientific approach. The first eye is about ‘control’, which involves maintaining standards and having complete perception of the current situation. The second is about incremental improvement by making small changes every day. The third is one of ‘breakthrough’, where something dramatic is done to counter a drastic change in the business environment. The VLFM programme focuses on this third eye, as this can be the game-changer. A package that can be taken from the book for better functioning of a concern reads like this: there are seven ingredients which should go into the transformation process. First, it is necessary to formulate goals for change. Second, one must provide an organisational setting to realise these goals. Third, it is necessary to stress on training and education. Fourth, change must be propagated within the company. Fifth, success stories need to be spread across the breadth of the company to provide initiative. Sixth, incentives and awards have to be provided to get this change in. Finally, the implementation of change needs to be monitored and modified when necessary. As a leader or entrepreneur, one needs to introspect and answer these questions. While there are seven cases provided, including the stories of innovation in Godrej and Boyce and Sona Koyo, the focus is even on smaller companies, which require such guidance. He states, at the end, that what has been written is a new way forward and it is really up to the people to get on to these locomotives and move forward. There should be effort to bring about this change continuously within. Shiba argues that there are two kinds of management—Type A and B. The former refers to growth, which is measured by profit. The latter focuses on sustainability and harmony and the measure of success is intangible, which is happiness. This is definitely worth thinking about.

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