Hard Work, Smart Work, Inspired Work - Part I

One will find hard work and smart work very prevalent in most organizations. There will be cases indeed where smart work will replace hard work, thus bringing in productivity, efficiency and all the gains of not doing unnecessary and non-value add tasks.

Hard work does not distinguish the value of the work. It is mostly concerned with the volume of work. If something needs doing, it will be done by sheer brute force, if need be. Manual labour, data entry, accounting and audit related record keeping are instances where hard work thrives and is rewarded. Hard work recognizes heroics of individual persistence. You will find energetic hard workers jump in to help their over-whelmed colleagues regardless of their role. Motivation for hard workers can be external or internal. Carrot and stick routines of motivation work best when one intends to extract hard work. Qualities that are appreciated in hard workers are punctuality, reliability, stamina for slogging into late hours. Vision or direction is usually left to managers and supervisors while work is left to workers. This leads to a thriving command and control structure. Edison's quote - "Genius is one percent inspiration and ninety nine percent perspiration" is often the guiding mantra for hard workers. Edison indeed practiced what he preached, working more than 20 hours a day on his inventions, his 1093 patents a testimony to his efforts.

There is a different school of thought on the other hand that tends to side with Oscar Wilde who said "Hard work is the refuge of people who have nothing to do". It is a well established fact that work expands to fill the time available. Time can also be replaced with resources including finances available as can be seen from the spend of many governments who are able to boost economic activity by pumping quantum heaps of monetary instruments into the system.

Smart work starts with prioritizing and time management. Important tasks are actively sought while trying to minimize urgent tasks. Smart work seeks out inefficient processes and continuously tweaks them to weed out non-value add steps. Automation is often the simplest of strategies for doing work smartly, but it doesn't stop at that. There is a recognition that all automation is not smart and even automated processes can stimulate hard work syndrome. Creativity and flexibility are the hall marks of smart work. Motivation for smart work comes from the feeling of satisfaction in making something better than it was. Smart work aligns itself to the organization's goals. People in this category are eager to learn, asking questions and challenging the status quo. Organizations where smart work thrives generally have flat hierarchies and open cultures which encourage not just following the process but questioning the process as well. Risk taking is generally higher and it is considered ok to fail sometimes in the quest for smarter solutions. Work life balance is also an important consideration and the goal is to ensure getting more benefits out of less efforts. Thus instead of a hard working 16 hours, a smart output of 8 hours is considered to have generated higher value for the organization.

... To be concluded in Part II (Inspired Work)

Next Wave Strategy for Indian IT Industry

I felt honoured to be a part of the panel discussions on Indian IT Industry at Communique 12 organized by Symbiosis in Pune. http://www.sitm.ac.in/International_tele_seminar_Communique.asp

The viewpoints put forth by me covered how Indian IT can move towards a product based model as opposed to a people based revenue model, challenges to Innovation and opportunities for diversification.

Moving towards a Product oriented model

• We can take some lessons from what made the services model such a huge success for Indian IT Industry
• It was no doubt a perfect example of private initiative backed by government policy which made IT in India a priority sector
• IT in India is engaged in the services model by design since the IT policy in the mid-1980s stressed on Electronics and Software as a solution for unemployment
• That policy definitely succeeded as we see the number of people in India today employed in this sector with education institutes churning out almost 400k candidates in the market every year
• There are indeed IT companies in US one example which comes to mind which generate $700 mn revenues with less than 50 people
• This model may not be suitable for India. It may be great for one or two companies but in the larger national interest of serving the lowest of the low, the utility of this model in really helping India raises more questions than it answers.
• Putting the social aspects aside, let us see how do we make this model work for moving to a product based model
• There are several challenges which have prevented this model from being adopted so far
• We are often found lacking in India in terms of facilities and infrastructure required to encourage product based model
• It is indeed easier for me, sitting here in India, to register a company in Delaware US and get a server procured and installed in a US data center rather than India
• Existing product expertise is sitting on foreign shores. Indian IT has excelled in the routine, but when it comes to core product architecture issues we need to depend on outside expertise
• No doubt Indian IT has resourceful manpower. This manpower is dedicated and career oriented and has a focus on self development.
• But this mindset may not augur well for innovation and product creation. To innovate you need a maverick and not a career climber
• From a policy point of view, we need to encourage this product expertise to come and reside in India. Existing product innovators among organizations should feel encouraged to set up India based Product Innovation and Development Centers. Mind you, not just Offshore Development Centers where you hire code jockeys while retaining the architecture skill set in home country but Product Innovation and Development Centers where product is created from the ground up in India
• In order to get the government think tank on the job of how to make India a home for Product Innovation and Development, they must be made to see what is in it for India. Industry need to go back with the answer on how does becoming a product development center instead of a services based industry which generates employment for millions, really favor India?
• This thinking about Indian interests has to become foremost for Indian IT industry which can then result in directional changes in policy to make product based model a success as the services based model has done.

Innovation

• We touched upon the manpower resourcefulness and mindsets required for innovation.
• For innovation to succeed there has to be a tolerance for failure (1/3000 ideas are successful)
• India is a nation in a hurry. We are playing catch up with the rest of the world. We feel that 40 years of socialism has left us behind. What we are seeing happening in society today is an acknowledgement of the existence of a better way of life and an awakening and a revolution of the masses towards the need for a better life.
• In this social milieu of speed and change, we have to see where innovation fits in. Innovation cannot exist by itself. Innovation has to fulfill a need. Innovation is made successful not by the innovator but by the users.
• For organization be innovative, we have to realize that innovative organizations are made up of innovative individuals. While the organization can provide a platform for individuals to innovate, it can also result in shackles for innovation.
• Organizational innovation programs are often linked to corporate imperatives plans, markets for growth. There is limited scope for a philanthropic approach to innovation within organizations.
• Individuals can also be organized. Individuals can be agile. Individuals can be innovative. Most innovation comes out of garages rather than corporate R&D labs.
• What organizations can do is provide a platform for innovation. They cannot attempt to control innovation and can perhaps channelize innovation by setting up the right environment, posing the right questions, encouraging risk taking thus empowering the innovators.
• Organizations can ENABLE while leaving it to individuals to ENACT
• Organizations also need to think in terms of what are the right measures for innovation - investment and resources spent or ideas nurtured, patents filed.

Diversification and geographical growth

• I will acknowledge the work of Prof Rupa Chanda from IIM-B for the next section where I pick up three themes for diversification, very roundly covered in her article - US protectionism - An opportunity in disguise? http://www.iimb.ernet.in/newsletter/issues/97
• The need for diversification comes from saturation of existing markets, economic slowdown and protectionist measures adopted by countries. The situation described for the US applies as well for any other countries adopting such measures
• Market diversification
• Indian IT industry is largely an exports based country and there is a definite need for diversification, competitiveness and exploring new areas of growth.
• Indian domestic market is largely ignored, even though Indian economy is seeing comfortable levels of growth as compared to other markets.
• Foreign investment in India is on the rise because of the opportunities here in India. What about Indian IT investment in India? The investment here has to be for market creation and market growth. Margins similar to those earned for exports cannot be a key focus in Indian markets.
• Local presence in target markets
• Local employment creation in the markets that IT industry operates in should be made a key priority. For sure, countries where Indian IT industry is seeking to create a market would welcome them if they are seen to be solving unemployment problems of those markets.
• As contributors to the local economy, the industry will also gain in lobbying strength
• Government support in foreign policy
• Government can help in creating a safe environment for Indian IT industry and Indian professionals in the markets they operate in.
• There is a need for engaging with these countries at diplomatic levels to ease the entry of Indian IT industry and preempt any protectionist views.
• Just like in the success of services model, private and government initiative and partnership can go a long way in influencing and investing in bi-lateral and multi-lateral commercial agreements
• Lastly the focus of industry can be turned towards Nation Building within India - there are indeed opportunities in e-governance, e-auctions, e-learning which can be explored towards achieving the goals of sustenance, growth and national benefit.

Futility of consensus

Trying to achieve consensus in corporate decision making is often somewhat like Waiting for Godot. Consensus by default means a group has together decided to take certain actions. This often gets translated as 'organization policy' or 'management decision' and thus it is difficult to find an owner responsible for the same. Often people seem to seek consensus when they are not confident enough to take decisions on their own. It is also an effective tool for delaying certain decisions.

Building consensus takes huge efforts, time and patience. There are conflicting interests to navigate and people's knowledge levels and skills are sometimes questionable to take a call on the issue at hand. If you are in a competitive, cut-throat industry and need quick go-to-market timelines to survive, forget about achieving this by consensus. In such a scenario it is always better to have a firm owner who is empowered enough to take decisions and assume responsibility of such decisions.

Instances abound in the corporate world where organizations have tried dual leadership models, possibly to reduce risks. What gets reduced is the speed and agility with which organizations can respond to change. A recent example which comes to mind is Wipro - http://news.in.msn.com/business/article.aspx?cp-documentid=4825457, where this model failed. Infosys on the other hand shows a different approach where joint founders got a shot at the top position in turns, with varying degrees of success and acceptance.

In my view looking for consensus becomes futile in these situations -

• Conflicting or Vested Interests
• Missing Big Picture
• Lack of Clarity of Vision across Organization
• Seeking Opportunity to Negotiate Self-Interest (you scratch my back I will scratch yours)
• Multiple Strong Dictatorial Views
• No Party Willing to Give Ground
• Attitude of 'Not My Turf'
• Oppose for the Sake of Opposition

When looking for approaches and methods of building consensus, I found several articles propagating the advantages of consensus and how to make consensus work. So here's a view from my side to say there is no consensus on the utility of consensus. :)

The New Wave Business Process - Part II : 'App'lied Business Theory

A conversation I was having with a senior strategist and a vendor conference which I attended this week triggered some further thought process on handling the new wave business processes. So I decided to elaborate on my initial concept in the previous blog - http://fjb-mgmt-class.blogspot.com/2011/03/new-wave-business-process.html - about network linked business capability and online collaboration leading to commercial transactions.

Let us look at some of the changes we are seeing around us -
- Proliferation of apps
- Requirement of information
- Need to collaborate and communicate
- Remote and mobile access to apps and information for collaboration and communication

All of this points to a scenario where business operates more and more in a distributed manner and not from central locations. This also breaks down the traditional central chain of command and leads to empowerment at local levels for taking decisions and executing transactions. The challenge for leadership will be - how to ensure order in this chaos and channelize synergies across these disparate events which make for completion of a business transaction.

Working remotely is indeed supported by the emergence of technologies which support distributed collaboration. Concepts like cloud computing have matured to a level where they have business acceptance leading towards a critical mass needed to support the next stage of growth. The adoption of cloud computing opens up the business to tackle the challenges and opportunities of the future.

Now let us examine how these changes will affect the way people work. First the definition of work will undergo a change. Neither organisations will be willing to commit to fixed number of resources which is akin to sunk cost on a recurring basis, nor will resources be content to dedicate their efforts to one organisation. With that goes the concept of working hours (does it exist nowadays anyway?) as resources are supposed to perform tasks on demand. Whoever has the right skills at the time when the demand for a task to be performed comes up, gets to do the work.

What this means is that people, process and technology gets replaced with skills, capability, connectivity. Strong processes and technology support would simply be the hygiene factors which will enable this new way of working. We are getting comfortable with apps for our social requirements. Wouldn't it be great to have an app to submit your expenses? While you are on your business trip, you make your expenses through your mobile pay app and get a choice to charge it to your expenses which hits your organisations accounts payable.

Now taking this thought process to the next level - how about doing your entire business online? You no longer need concrete buildings full of people to do business. What this needs is an online infrastructure which replicates your steel and concrete structure and allows collaboration amongst your resources, partners, stakeholders, customers instantaneously. With this level of automation being built on the cloud, the organisation can hire resources online, allocate work as per skills and monitor work reports online. This concept can already be seen at work in the freelance community. If we put this in a online structure it results in a virtual organisation being created. Organisations would have administrators of such virtual departments playing the role of HODs.

When you have multiple such organisations created online and communicating with each other, you have online collaborating leading to commercial transactions. Procurement in Org A could then collaborate with Sales in Org B using an app similar to maybe Google Wave. Negotiations are conducted and recorded online resulting in issuance of a PO. This gets sent to resources in the sellers delivery organisation and the resources with the right skills and closest to the buyer get to deliver the products or services so procured.

If this concept is detailed out, it leads to huge benefits in productivity and costs. The ease of doing business also results in higher growth. Resources get benefited by getting the best value out of utilising their skills, doing what they do best.

The New Wave Business Process

Though this post focuses on a particular industry event, I am sure the process concerns raised here resonate across other sectors as well and are just as relevant.

I was at the TM Forum (TM Forum is the world’s leading industry consortium focused on improving business effectiveness for communications Service Providers.) Regional Spotlight in Delhi the previous week. One of the participants brought up the top three priorities for business as -
- New products
- Growth
- Improving Processes

This means post-recession communications service providers are clearly expecting and looking to ride the new wave of growth. At the same time there is a cautious approach to handling this growth by re-using existing infrastructure and improving current processes.
However, this was a CIO view and I would have liked to see more business process owners from operators at this forum participating and gearing up for the changes and improvements required to handle the next wave. (TM Forum's eTOM is the common business process architecture adopted by telecom operators globally.)

Now for improving the business processes, there will be dependence on IT to deliver automation projects that support the process changes or help make existing processes more efficient. No doubt IT will play an important role in process efficiency, but can only act as a catalyst. The initiator of this exercise has to be the process owner who has to have complete clarity on the future roadmap of the organization, the challenges current practices are likely to face in the future and the changes which are required to be brought about to stay current and releavant.

Additionally, newer technologies will change the way we do business. We already have seen the changes in the way we interact with each other in the last five years. These changes have already started seeping into formal interactions and business communication. These changes will further percolate into the business transactions themselves as we see businesses recognize and adopt the power of cloud computing. I am currently conceptualizing a network linked business capability which enables businesses to collaborate online and possibly enter into binding transactions online. You could essentially run your entire business on the cloud. Just imagine the power unleashed by this concept of anytime, anywhere enabling business capability.

The kind of capabilities I am envisaging here changes the way we set up organizational structures, the way we hire and maintain our workforce, the way we interact within the organization, the way we define the tasks essential to carry on business, the way we engage with external stakeholders, in essense everything we call as 'doing business'. Businesses will have to go for a deep introspection and respect none of the currently established practices as valid in the future.

This essentially means the current ways of doing business will just not be good enough to tackle the new wave of growth which will have its own demands of quicker than before delivery, better than ever products and lower than ever costs. In essence this calls for not only looking afresh at business process re-engineering, but also changes the way we look at and perform BPR itself.