Performance culture-the need in ...
Rohantha N.A. Athukorala
Continued from yesterday
Nobody should assume that Identifying and developing a true
performance culture is necessarily easy. There may be significant
existing cultural barriers to be overcome.
Especially in government departments in particular the view that “the
way we have always done things must be right” can be entrenched. The
good news is, that experience has shown that once people in an
organization begins to enjoy the benefits of “working lean” new
attitudes become grained and unshakable in an amazingly short time.
It is not only in the public sector but in which resistance to any
thing different can be seen but also in the private sector. Even in the
public sector - my experience as the Chairman of an apex Export
institution was, if the leadership is seen credible and financially
discipline change can happen with least resistance.
If this is achieved in the private sector it will lead to stronger
profits whilst in the government sector it will be a higher productivity
and stronger economic growth.
Effective leadership is a prerequisite for success. Unless the top
management is prepared to lead by example, addressing where necessary
existing leadership problems, there is limited hope that even the most
committed employees can achieve. Li Kuan Yu was the best example of
where a visionary leader led a country to achieve heights by addressing
the key issues of corporate Singapore.
We in Sri Lanka have many a examples in the Small and Medium
enterprises who have demonstrated leadership which has transformed a
company to build a culture that drives people to higher performance -
Siddalepa, Kandygs Handlooms, Odel, House Fashion to mention a few.
Lean demands that leaders have the courage to identify and resolve
deep-seated organizational problems. It is not a quick fix. It is a
strategic and tactical tool that must be applied consistently through
out the organisation.
Politicians, business leaders, senior public servants, academics and
consultants all have a role in clarifying the benefits of lean
processes. The public both in the role of customers and employees need
to be convinced that the approach offers them advantages now and in the
future.
All stakeholders need to understand that early benefits are not the
end of the story. Pepsi Cola is classic example where the turnover
growth in 2002 was only 7.6% to 26.9 Billion dollars but the profit
growth was a staggering 70% whilst the Brand Equity growth was up 4% to
12 Billion dollars the same year.
Toyota is another example where initial developers of lean
manufacturing took years to reach the crescendo position that they have
achieved today. They have now pushed companies like Ford and General
Motors to achieve dominance over time.
Turnover of Toyota exceeds 153 Billion dollars whilst the brand
equity growth has gone up to 20 Billion dollars at nine percent growth.
This performance has become the benchmark in the industry today,
including customer satisfaction levels.
Organizations have enjoyed the accruals of the benefits along the
way, but it is a long journey. Every journey begins with a single step.
With lower costs, higher quality and greater public satisfaction should
we not take the first step today?
Concluded |
