Friday, May 31, 2013

Why industry looks so depressive today?

Govt cuts GDP growth estimate for 2012-13 to 5%; lowest in 10 years. This has fallen from 6.5% the previous year. On an average, 1% fall in GDP growth rate kills 20 lacs jobs. Here 1.5% would kill 30 lacs jobs, including no new jobs created and existing jobs cut.

Time to bring some zing to companies to get out of slumber. It looks like a depressive time. Looks like summer vacation in companies. Hiring stalled, events stalled, sales and marketing expenses under review and control, no new products and R&D departments slipping through enigmatic inertia.

Time to review, re-visit and introspect on all things gone wrong in past 5 years and what shall be the solution. The best way to use your lean time is to ask VPs and Business Heads to review their business and people strategy. Lean sigma or lay-offs, define all wrong hires, miss-hires and expensive mistakes, over paid executives and Managers. All Peter principle guys, who long stopped learning and have become liability for company. Their progeny has grown older and weak and just come to office like babus, dipped in politics and bureaucracy to hide their incompetency. Check out, how many positions in your company have become obsolete. Time to take action and promote people with passion and insights, who are full with pregnant ideas and carry no baggage, they come inexpensive an have high levels of drive, replace all these oldies with new breed of sharp shooters. Time to say good bye to old bosses who have become ineffective and they do not inspire anyone in the organisation, they have no skills, competencies and passion to mentor new talent. They are stuck to old school of thoughts and have become outdated. Companies have HR heads for 50 lacs to 1 cr compensation and these companies have not been able to groom and identify talents within HR for C&B and OD roles and keep hiring from market. Why have they failed to groom and build capability? Because they have involved people in daily shores and never new skills, new learning path. People are there in C&B, Generalist, L&D roles for more than 5 years. Why were their roles not changed and rotated to other sub-functions If companies do that, they will not have to hunt from outside, mostly. Keeping one skill in one guy for longer than 2 to 3 years is Vanrashrama dharma and brahmanism. Every leader enjoys inertia till shaken. We are mostly reactive at the top or in all leadership positions. Culture is driven down from the top and unfortunately the culture that we have been building is of insecurity, inefficiency, saving job, avoiding tough questions, not asking right questions and get to a state called, LEARNED HELPLESSNESS!

Wake up as anyways, shake up is knocking at the door.
Companies will have to do a fresh structuring much more clinical and broader than 10% lay-offs. 

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