The one big people agenda for 2014 will be centred on productivity. With the economies remaining turbulent, the challenge to survive and then hopefully thrive will demand a very close look at staff productivity. Making an honest assessment of the issue is fraught with its share of business outlook, assessment and the emotions around it. Many companies in India have been more paternalistic and soft in their historical attitudes to productivity. Outdated labor laws, lack of a social security net and the general comfort with mediocrity of many managers has made the challenge delicate. Yet if ignored further in 2014, it will not only have immediate business risks but even more importantly the companies would have missed out on an opportunity to get fitter.
While there will be nuances of need requirement across sectors and companies, the issue of improving productivity will call for some strong leadership decisions. One is going to be around the organization architecture. Are companies designed for success? Can roles be better articulated and accountabilities sharpened? The other is going to be around the quality of talent. Typically, we have been happy by merely having more pairs of hands. This may need to be questioned. What is the right talent mix for a company? How do we still better manage compensation practices? This may call for companies to revisit their compensation philosophies. The shift to pay better for differentiated talent with a sharper accent on variable pay could contribute to better productivity. What does one do with redundant people? I suspect companies will struggle over ‘loyalty’ definitions. Is loyalty going to be about tenure alone or more about value creation and impact?
Apart from design and manpower planning, I think there is a great opportunity to look at going down the education value chain for most jobs. In many cases, routine jobs are manned by overly qualified people. Not only is that an over-kill, it creates low engagement and consequent attrition, all adding to a cost spiral. 2014 is an opportunity to go beyond the obvious.
As we focus on productivity, I see a very sharp focus on learning and re-tooling. Companies would do well to multi-skill employees wherever possible. It not only de-risks the organization but also increases the capability of the employees to do more with less. The approach to learning will change too. Along with functional training, I see a lot more focus on softer skills. As customers become more demanding and choosy and the organization architecture becomes more matrixed and collaborative, the ability to work through the human dynamics will become key. This investment will be needed to get the best bang for the buck.
Finally, the 2014 focus on productivity will trigger a sharper look at leadership and culture. Unless these two elements are critiqued and possibly reshaped, little will be self- sustaining. How will Boards and executive teams handle this? Many organizations would do well to redefine themselves. It will call for a new generation of leaders and a very different class of leadership as the customer and employee demographics change. How agile and willing the leadership will be to change their thinking and behavior? What strands of organizational culture will need repudiation? What should become more pronounced? The ability of leadership to make these delicate but sharp calls, communicate them and most of all role model and reinforce the ‘new way’ is an opportunity and a need for 2014. Done right and honestly, we would end 2014 with more engaged and productive companies. Otherwise, it would be a turning point that we regretfully missed.
(The views expressed are purely personal)