It was like any other working day for me, till something had hit me to pen down these thoughts, As I was travelling back from a customer meeting, I noticed a small but very significant change ,A name of a well renowned Bank had changed, all ATMs suddently across the city had new name.A thought just passed by ....In this trend of Mergers and Aquisitions, what happend to the the people who spent years building, sustaining & growing with the old name or as we call the 'brand'.
In the world of Mergers & Aquisitions, this definately must be a strategic need of one and/or a financial need of the other but now what would happen to same strategic assets (called people) of this bank ?
Just like any other person this thought just passed by..and frankly just like any other person I forgot about it untill I was scanning my phone book for a contact of someone with whom I had not spoken for days .In my phone book there was this name called "SBB". The Man from whom I learn a Lot (even today)..My Guru .. My friend, My Senior .. I can go on to give him the adjectives and definately the dictionary would have some less words to define him completely.
He had once told me a story of "Change of Guards" while we were on our way back from some tough negotiations and crucial meeting (I can say...he is the best man I have seen till date for such jobs). The story is close to my heart cause I too have been part of an organisation and seen the people side of it. that was another strategic acquisition where our company had been acquired by worlds most trusted & renowned brand.
The story is defiantly fictitious not about M&A but about the Change of Guard right at the top of the ladder in the Corporate world.
Please Note :The names , places or any other information used is ony to make the story interesting and has no resemblance to any person , organisation or any entity on earth
This is how the Story begins......
In an Organisation called "LimitedCompany.Com" Joins a new CEO called Ram.The Board is happy that they have finally managed to get a new Boss on board at least before the last day of the departing CEO (Bhushan).So Late Evening they call for the party where they also invite Ram to be a part of the departing celebration and wish Bhushan a very good luck for his retired life.
So when Ram and Bhushan meet during the dinner, Ram shows his anxiety excitement, enthusiasm, eagerness to learn, eager to take over this Giant company. He Asks Bhushan " Bhushan tell me you have been managing this Giant organisation for last three years, can you please tell me some tips on how to manage this vast talent , wide customer base & big sales targets , reach to every individual customer ?" Bhushan just Smiles. Bhushan asks Ram "Ram , you have been an outsider what do you think that we were not doing right, what do you think are the lacunas in this organisation , where do you see the gaps that need to be filled ?" This was asked and Ram shoots all the lacunas from Sales strategies, to sales delivery , to management, to approval , to Go to Market and starts shooting down everything and it continues for a long time on various things that are not going the right way. Bhushan was clever enough to understand this and like any smart guy did not want to advise Ram as he was more of a "transmission" than a "listener" unless the rubber meets the road. So while Bhushan was Finally departing , he called Ram and said "As my advise to you, I am sharing these 3 Envelopes all labled with a Sequence numbers 1,2, 3 , when you think you need my advice please open one envelope at a time, read it , implement it. You would be able to run this company the way I did. Saying this Bhushan Drives off to spend his next few years into his happy retired life...
Ram too was a little disappointed as he realized that all the talk was done by him and he could not learn any tricks of the trade to manage this Giant Sales Company. He looked at the three envelops and without even a second thought slips them into his bag and drives off to his home, waiting for the sun to shine the next morning and he ready to take charge as a CEO of this giant Sales Company.
Days pass by, he gets busy understanding the organisation, every time he gets into crisis , he realizes the words he had blabbered that night to Bhushan (remember ? his thought on what in the org was not going right ?).In his frustration to get the organisation back on track he starts dictating, shouting, bulldozing everyone… From a CEO now he had by now turned himself into insane Shepherd. Definitely this hits on his performance and the performance of his fellowmen, colleagues and of course the chain below him. In the hurry just to praise the new CEO, the people in his organization started focusing outside in rather than inside out. They started loosing focus on the customers, stakeholders, partners and this also impacted on the brand and the market share of this organisation. The Competition was well aware by now and had started eating the market share…A Year passes by and the sales Results of the organisation are down. The Management Board calls for an urgent meeting to understand what is happening on the ground.
Ram is now summoned to Delhi (Head Office) to explain the situation. Ram is terribly disturbed does not know how to face the board, does not have the answers for his company’s bad performance and at the same time wants to save his position. Ram frantically starts calling every person (his so called friends) on his phonebook to help him to give some good justification to the Board Members. Every Person that Ram calls Says just One thing “Hey Ram, You are the best man chosen , you know your organisation better, what can we advise you”. Ram is disappointed with the same reply, packs his bags on his way to Delhi to give some justification which he himself was not convinced.
Ram Boards the flight and settles himself in a Business Class , little anxious, little disturbed, little confused , he digs his hand into his pocket , pulls his phone out and starts scrolling his blackberry phone book to see if someone could help him even in this last minute. He comes across the number of Bhushan, he looks at the watch , its 7:00 AM in the morning, he dials Bhushan’s number. Bhushan in his sleep picks up , they both greet each other and then ram comes up with his point. Ram says ‘Hey Bhushan I need your advise” just when Bhushan was really in a advising mode , the Airhostess interrupts requesting Ram to Switch off his phone. On over hearing this conversation between the air hostess and Ram , Bhushan reminds Ram of the 3 Envelops that he had shared with ram and hangs the phone down. Ram starts digging his Bag in search of the valuable advise which he thought at that time as a mere routine , he digs n digs his bag until he gets hold of “3 Envelops”. Ram See that as the sign of relief, thinking and thanking god for giving him one more opportunity and person who could advise him.
As a gentleman’s promise Ram opens the First Envelop sequenced as 1. The envelops read something like this
“Hi Ram,
I Know you are in dire need of advise as your organisation is going through a big turmoil, your sales figures are down, market position is going down , people in your company really don’t know what they are doing & all of a sudden you are feeling like you are in a “complete mess” and since you are heading now for review with management that is when you are seeking advice from everyone to help you answer your management where you need my advice.”
These words hit ram like a bullet in the arm and he started reading the letter further…..
“Ram as you are heading for a review , I know you are tensed , but what I would advise you is this” Tell the Management that you are New in the organisation and talking time to understand the Big Giant like SalesCompany.com. In this last one year you have analyzed the organisation well and you need a “change” which is as below
1. The People are old in the organisation and are very reluctant to changes to the conditions that the market demands, the thought process of the existing people are still primitive and are not ready to take bold decisions the way you want. You need fresh blood which would help you drive the agenda an the Bold Goals that the Management and You as a CEO have set for the organisation.
These words gave Ram the confidence and also was saving his position as the CEO and was also justifying the poor performance of the company
During his review with the management, he gave this Justification and was well accepted, everybody in the board meeting applause this new breed of thinking of the new CEO and allowed him to take the decisions.
On his return back in his office , Ram created the new Mantra called “CHANGE”, he brought in new heads of department, strategist, Marketing Guys from the industry to work and overhaul his organisation.
This new breed of managers & leaders took over with blessings of the CEO & assumed this organisation as their private property. They started dictating terms of business & bull dozing majority of decisions (without even thinking if they were right or wrong). The old timers in the organisation were divided over such a dictatorship rule, some adopted it , some revolted, those who revolted were sidelined. Those who adopted were doing it under pressure to retain their jobs and please the new breed of managers & leaders.. In this whole process the passion, love and trust in the capability of the Organisation was getting diminished day by day but no one cared as everyone was focussed in saving their jobs and positions alone. But as the corporate world measures the results in Sales turnovers, and that was devastating for the next year too. The results were inevitable, Worst sales performance, Employee morale all time low, total dissatisfaction amongst customers, partners, distributors employees etc.
The Company Management was again worried by this poor performance. They had lost faith & trust in the CEO but since it was their decision get Ram Onboard, they called him again for a review and know the facts on the ground.
This time ram did not have to fetch friends again to take advise, so he reaches his bag to get the envelope No 2 out. The letter in the Envelop reads something like this:
“Ram I know I have saved you last time and you are looking for help again to bail you out of the mess that you have created, this time tell the Management that you have the right people in place but the processes in the organisation suck, you need to enable your people will right processes and right tools to fight the current scenario in the market. The current processes running in the organisation are too old and the new tools, processes for sales approval, budgets, employee self services need to be improved. New tools & processes would be able to make the organisation more agile and productive which in turn will give the sale teams and delivery team more time with customers, partners and distributors. This will also help employees have a good work life balance which is the main reason for the low employee morale.”
Ram was convinced again and gave this story to the management, as expected the management realized this could be the bottleneck for the CEO to implement and decided to give him another chance.
In the next few weeks Ram started changing processes. With the help of technology ram made some easier processes more cumbersome for its employees, Instead of a shorter processes previously now the process required a few weeks prior approval , he declared that the organisation should maintain at least 40 percent of Profits in scenarios even when the competition was ready to pick the deals with 20 percent profit margins. Employees local and remote now had only a specific date to get the reimbursements of the claims. The Sales Deals had to have the approval of the CFO at least 7 days in advance, employees were asked to cut cost on travel for a single meeting (even though it was important),they had to take approvals from CFO for expense above 300 Rupees.
This resulted in devastating effects , the sales guys never go the best prices for the Bids well in advance, Employees avoided meeting customer with a fear to get every time approval from the CFO. Competition by now had captured the Sales Company’s was eating up the market, processes made the life of employees more cumbersome , No access to Intranet , Internal application created problems as all remote employees had to reach the office to access internal applications…
Year 3, Sales Down , Employees Satisfaction Dipped further, customers lost to competition , employees were fleeing the organisation , all signs leading that the nose of the organisation had dipped and was now in a stage of crash landing. Now the management had to take a serious look to the way the organisation was been managed and execution was handled so they called for an Urgent review, and update on the business
But Our CEO Ram thought that “All is Well”, he thought that he already had the silver bullet to get out of the clutches of the management as he definitely had the Envelope. So Just before the Meeting with the Management he reaches out to the third envelope and it read like this
Hi Ram,
You have already done your duty and have tried your best to “Change the people & Processes & the culture of any organisation , Now its time for you to change yourself , So kindly get your resignation ready as you are left with no more options. Kindly prepare these three envelopes for your successor & have a great life ahead
Thank you
Bhushan
With this short story SBB also advised me “Sanjeev, this is how some leaders, managers and Executives run the businesses around the world. Please don’t follow such thoughts as you too are going to be a manager, leader,CEO someday.Put yourself in the shoes of your employees, colleagues, and partners. Be Genuine in their concerns and try Build a stronger foundation, Its always like 'Building a Human Pyramid', you need to trust the people below you and they have to have full trust & confidence on the guys below them , But never forget about the 'actual feet on the Ground' cause they are the main pillars who support the foundation of the pyramid".
With this came our destination and SBB moved focus towards his next task to be performed, I remained pondering over this story without realizing that this story would be so important in my career.