Implications for Corporate Transformation and Competitiveness

Volume 17, Number 2 Article by Mahadevan B and Arun Bharat Ram June, 2005

Journey to the Deming: Implications for Corporate Transformation and Competitiveness :

In a rapidly changing world, corporate entities need to be constantly responsive to changes in the market by making changes in their structure, systems and policies. While these changes are often incremental, there are occasions when an organisation goes through a transformation. Such a corporate transformation could be the outcome of major changes and efforts over several years, often stemming from the commitment of the CEO to a particular goal. This has been the case with the Industrial Synthetics Business (ISB) of SRF Ltd.

Sharing his experience with Prof B Mahadevan of IIM Bangalore, Mr Arun Bharat Ram, CMD, SRF Ltd, describes the journey that began with quality initiatives in 1993 and culminated in the ISB winning the Deming Application Prize in 2004. The interview highlights the impact of initiatives such as TQM, which serve to align the entire organisation in one direction and promote a team spirit. In the case of the ISB, with its history of poor industrial relations, the transformation was particularly notable. The skills developed through TQM are also of use in formulating strategy by helping the top management assess the capabilities required and those the organisation possesses. Among the major intangibles that have accrued to organisation, in addition to the tangible benefits to all stakeholders, is the empowerment of the employees. The people making the decisions now are the ones most closely concerned and informed about the matter, and this increases the commitment, motivation and satisfaction all round. Bharat Ram also describes the major changes undertaken in systems, structure and policies, including changing from the traditional management structure to a process based organisation, where many functions are combined to create moving fluid structures; and the unique diagnosis system that helped the organisation move to higher levels of capability.

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