The Pre-OD Scenario: Our Strengths and Areas of Concern
In the years 1990-91 XYZ had grown into the largest Indian HARDWARE company with revenues of over Rs. 1100 crores and racing towards achieving its vision of being global top ten. As pioneers in the industry, XYZ’s strengths included on time delivery, premier position in the industry in terms of revenues, focus on training programs, quality initiatives, use of good technical tools and procedures and encouragement of individual excellence in performance.However, XYZ’s was also, at that point in time, grappling with a few areas of concern with regard to its operational paradigm.
Mounting revenue pressures: The pressure to retain its strong premier position led the organization to tend towards short-term revenues, and relatively lesser efforts were being put into medium and long-term markets and activities (such as products and building up knowledge). Though XYZ’s built relationships with individual customers, Relationship Managers largely tended to focus on obtaining short-term projects – there was lesser investment on aligning to long-term objectives of customers. The approach, by and large, was of reactive project management and we were yet to espouse the approach of architecting proactive solutions for the customer.
Selectivity in projects: There was a tangible tension at, XYZ’s between generating revenues and organizing strategically, on basis of technology and business areas, impacting selectivity in projects accepted. Pressures from customers on schedules was resulting in faster delivery and hence, snowballing into further pressure on future schedules.
Focus on specialization: There was diffusion of expertise and we were yet to focus on building strategic expertise in individual centers. Employees were rotated across domains and skills in the interest of learn ability as well as for meeting requirements. In a sense, there was heightened...