The Hindu Business Line : Changing corporate attitudes

The scene reminded me of the carnage that you see in epic films when powerful forces clash and the battlefield is littered with the dead and dying, piteous cries rending the air while the survivors stumble about dazed. This, however, was real life and the battlefield was the budget meeting in a large company.

In keeping with the tough times, the battle was bloody and prolonged and left everyone bruised and hurt. Pent up angst and anger was vented and stored up vitriol came gushing out. Net result — a disconnected and dysfunctional group of senior managers who could be depended upon to nurse their grudges, form cliques and scheme and plot to the detriment of the organisation.

The discussions started with a rousing speech by the CEO who spoke all the right words about “making it happen” despite the difficult external circumstances and there was hearty approval of this 60,000-feet-level statement of intent. The world looked well ordered from that height. Pretty soon though, the descent to reality began and everyone was intent on territory marking; an activity much beloved of the big jungle cats.

Money was tight and rationing of this precious resource kick-started the blood bath. Positions having been taken, the next logical activity of “defending our ramparts and death to the enemy followed.” Unfortunately, neither the CEO nor any of the other senior folk intervened effectively to keep the discussion focused on the common good. Survival of the fittest might work in the evolution of a species, but that unfolds over a long period of time; hardly a recipe for sustaining a corporate with growth aspirations.

Phase two soon followed. During this period, some of the senior folk found common cause and coalesced around the ‘front enders’ flag. Their rallying cry being, “We are the face of the enterprise,” loaded with the implication that they brought in the money and the glory and, as such, they mattered the most. They were obviously willing to admit that they needed the rest of the organisation, but only as a necessary adjunct to themselves and what they do. Naturally, all those who were excluded from this self-proclaimed elite club rebelled and war followed with the consequences described earlier.

Could it all have been different?

Nature has created life forms, sentient and non-sentient, in such a manner that there is a purpose and place for every part of an organism and they all mesh together beautifully. For instance, when in full flow, a cheetah is a sight to behold, sinews straining and taut muscles powering it to speeds that hardly seem credible.

The fundamental issue was not that the ‘front enders’ around the table did not understand the necessity of those who are unfortunately saddled with the title of ‘support functions’ or ‘back-end functions’. The issue was their unwillingness to recognise how crucial the so-called back-end parts are to making the engine function smoothly, and even if they did recognise it, to acknowledge and give them the importance they deserve. This is a consequence of how functions are classified by the senior management and, most often, it is their tacit acceptance and reinforcement of this thesis that eats away at the vitals of the system. The message from the story about the importance of each finger on our hand is clear; it is just that amnesia seems to strike most senior executives when this is translated into a corporate context.

Back-end vs value centres

One way to address this critical issue is to think of the so called back-end functions as value centres.

This sounds like a simple semantic shift, but it has huge implications on the way these functions are perceived by others and, equally importantly, how they perceive themselves.

The moment this shift is achieved in the mindsets of the senior folk, it will lead to a correction of the astigmatic vision of the organisation in all concerned. Value that is being given will be received by the recipients as something that helps them succeed rather than as something that is their due.

Cost centres will become value centres. This will start a cycle of positive reinforcement that will benefit the organisation immensely; it will help everyone grow to their full potential.

It is said that an army marches on its stomach; those in the army certainly recognise how crucial the engineers, supply corps and others are to their success and survival and they respect and reward them suitably. Time, perhaps, that corporates do the same.

(The writer is a Director of Manipal Education and Medical Group P Ltd and 3i Infotech Ltd and advisor to IDFC PE.)