The Hindu Business Line : Needed change `post' haste

UNPREDICTABLE CHANGE IN the global economic environment is old news. Not so, however, the churn happening within organisations across all sectors. The first corporate actions were defensive, to cope with the impact of external change, as markets for foreign exchange, capital and commodities puzzled experts and tested their traditional explanations. The less well-understood areas of managerial style and culture dealing especially with people-related systems demand change at a deeper, attitudinal level. The unprecedented rise in the relative power of the customer, as well as the employee, and the desire to influence outcomes is a new challenge to management. To respond adequately to this large-scale change, one needs revolutionary products, processes and distribution channels. More important, the very definition of the business itself needs a review.

This applies particularly to government-run commercial services, such as the mail. It was heartening that a seminar to mark the 150 years of India Post caught this note of urgency. Technology, competition and the changing expectations of the urban user in particular have made `snail mail' almost irrelevant. Postal traffic has about halved in five years. Clearly, the question is: How to change it structurally and, more important, attitudinally towards a progressive, customer-facing business, as envisioned, so as to trigger relevant innovation that must naturally follow? A degree of independence similar to public sector banks and airlines would be the first step. A corporate form, at least for the major urban centres, may also help. If staid old bankers can change, pushed by competition and electronic technology, there is hope yet for postal services. First though, the Government has to change the way it sees the department. And separate the commercial business from the public service element. It has to move from a function of administration to one of providing a vital service-lifeline — an enabler to industry, trade and commerce. Surveys show up the poor awareness of many a novel service already launched by India Post. After Speed Post, very little of new developments in the service is widely appreciated. The lack of any business or marketing orientation is obvious, despite good ideas within and good advice from without.

A sophisticated understanding of a commercial enterprise, as one offering a value the customer is willing to pay for, does not come naturally to the governmental mind. Being subservient to the demands and discretionary oversight of the Finance Ministry will not allow this. Some circles have shown remarkable results in banking and financial services products. If action is not taken now, the rising staff costs will sink the service deeper into irrelevance. No transformation is likely or feasible without the enthusiastic support of those in the field and middle levels of the organisation. Nothing short of a change in the mindset and the organisational culture of the Department of Post is needed, beginning with a change in structure and management style.