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By Chandani Jayatilleke

Hierarchy and bureaucracy won't affect his management theories at all. What matters to him as a CEO of a leading insurance company is dismantling these age-old practices and mindsets. In Union Assurance Ltd (UAL) as its CEO, Sarath Wikramanayake is busy demolishing these age-old structures. Thanks to Wikramanayake's refreshing approach, UAL is today a fast growing insurance institution in the island

"Every human being is equal. Every employee is important. Every one of them should be recognised for his or her contribution, whatever it may be," he told me as he settled down for an interview for the Meeting Point column.

A professional accountant and banker with over 20 years of experience abroad, insurance is a new field for Wikramanayake, having joined UAL only in 1999. But that did not deter him from bringing into play his novel management approach. "I realised that concepts such as hierarchy and bureaucracy are very prominent in many organisations here. They have resulted in inefficiency and low productivity. My aim as the CEO has been to reduce the 'power distance' and create a better working environment by fostering a better team spirit," he said.

Novel approach

When he took over as the CEO, there were four lunchrooms at UAL - for senior managers, middle level managers, clerical staff and other staff. Now there is only one room for everybody. Wikramanayake himself lunches with other staff members irrespective of their designation. "Employees are allowed to see me directly whenever the need arises. These simple management techniques have worked wonders in our institution," he said with a sense of satisfaction.

"Every employee has the right to know how the organisation is administered and how important his or her contribution is to the growth of the company," he said.

Customer relations

UAL has taken a great-strides in improving the quality of customer services by creating a Customer Relationship Management (CRM) division. "Customer relations is an important concept in our business. The concept of the customer coming to the organisation is no longer valid. The organisation has to go to the customer and offer its services."

"Traditionally, in Sri Lanka and indeed all over the world, insurers have previously focussed on aggressive selling. But once the deal is through, the customer is forgotten. The next time the customer hears from the insurer would probably be before the renewal. This is not good enough. We are trying to correct this situation through the CRM division," he said. But customer relations are already a strong point with UAL. UAL's dream is to make customers feel embarrassed to leave UAL and opt for another insurance company. Good customer relations which generates customer loyalty will help the company tide-over difficult times, he said.

Improving human resources and IT sectors are two other vital areas, engaging Wikramanayake's attention now. Staff is given regular training here and abroad on new management practices. Another significant practice in the company is the conduct of an annual survey to gauge employee satisfaction. The survey is done in a very professional and scientific way. "We circulate a questionnaire among our staff through which we get a comprehensive feedback about their remuneration, aspirations, the quality of services and various other management issues. The feedback is put into use to make UAL a better place. We have had several successes by implementing some of the proposals of the employees."

Leap frog

Wikramanayake believes that even if Sri Lanka is far behind many other countries in terms of technology, it can leap frog to catch up with what it has missed. In the very near future UAL hopes to achieve a large competitive advantage in IT. "We plan to implement all kinds of things such as web portals and call centres," he said.

Professional career

Wikramanayake started his career at KMPG Ford Rhodes - Chartered Accountants. After qualifying as a Chartered Accountant, he decided to take up a job abroad - in distant Jamaica. During a two-year stay in Jamaica, he worked at Touche Ross, a leading international accountancy firm. Thereafter, he switched to banking and took a more lucrative job in a leading Bank in Bermuda. There, he rose to the second highest position of Executive Vice President.

In 1998 he decided to come back home. "When I first came here, I wanted to take things easy. I did not want a full-time job. I started to provide consultancy services. But, soon I realised that it was not as exciting as I expected. It did not give me the opportunity to share my skills the way I anticipated.

Therefore, I decided to look for full-time employment," he said. He was pleasantly surprised to discover that there were many opportunities opening for him. Some of them were in banking in much bigger institutions than UAL. But, he chose UAL because he was highly impressed with its Board of Directors, which comprised Ratna Sivaratnam, Ken Balendra and Hari Selvanathan who were the top chairmen of three big conglomerates in Sri Lanka. "They had a wonderful vision for the company."

But, insurance was a new field for Wikramanayake. It was a challenge for him. "I faced this challenge successfully because my previous bosses had trained me to face such situations. The leadership qualities I gained through my overseas experience came in handy at that moment," he recalled.

There had been times when he thought that he would have to give up the job, especially when he lacked management information and advanced technology. As the saying goes: when the going gets tough, the tough gets going - when the going got tough, Wikramanayake got going.

Leadership

What qualities should a leader possess? I queried. Traditionally, a leader is a person with a vision, and has the capability to make others follow him in attaining his vision. "But, in my thinking, a leader has to act on the situation. In other words, a leader should apply different management skills and theories to suit the requirements of the institution, rather than applying the same tactics all the time. For instance, some companies want innovation, but for others innovation may not be what is needed. The areas that require concentration may differ from IT, HR, Marketing to CRM. A leader should identify the need of the organisation and act accordingly.

Vision for the future

"From a strategic long-term view, I think that in about five years, the financial services industry in Sri Lanka will change significantly as many companies will be opting for new business areas. For instance, companies in the insurance sector may go into banking while banks would consider doing insurance business. This will be the new trend required by customers. Many other countries have accepted the concept of providing many different financial services under one roof. Companies will consider merging or doing joint businesses. I expect UAL to be part and parcel of this process," Wikramanayake said.

In the short term, UAL would focus on improving IT, CRM, HR and Marketing activities. It would also expand its branch network. The company has already opened branch offices in the North and East, taking the advantage of the opportunities presented by the ongoing peace process.

Advice to youth

The youth of today are certainly very much educated and aware of the events taking place the world over. But, the expectations of the younger generation are very much higher than those of the previous generation. I think that the young people should be more focussed, be dedicated and should learn to work hard. Good workers will always be recognised and rewarded by their employers.

Personal interests

Wikramanayake is a keen golfer. He loves reading and listening to music. "I also love motor boating which I did a lot in Bermuda." Alas, he cannot do this in Sri Lanka. "I don't have a boat," he said with a touch of sadness. Collecting handwoven carpets and rugs and antique maps are his other hobbies. Quaint 100-year old maps adorn the walls of his office.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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