Sustaining Excellence and Relevance in an Organization
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SUSTAINING EXCELLENCE AND RELEVANCE IN AN ORGANIZATION A Joint Study between NIAS and NITI Aayog Report Prepared by Prof. Baldev Raj Prof. P. S. Goel Dr. Anshuman Behera NATIONAL INSTITUTE OF ADVANCED STUDIES Bengaluru © National Institute of Advanced Studies 2018 Published by National Institute of Advanced Studies Indian Institute of Science Campus, Bengaluru - 560012 INDIA Tel: +91-80-2218 5000; Fax: +91-80-2218 5028 NIAS Report: R63-2018 ISBN: Typeset & Printed by Aditi Enterprises Bengaluru - 560 023 Ph.: 080-2310 7302 E-mail: [email protected] SUSTAINING EXCELLENCE AND RELEVANCE IN AN ORGANIZATION A JOINT STUDY BETWEEN NIAS AND NITI AAYOG BACKGROUND THE ROUNDTABLE It is seen that many organizations The Roundtable on “Sustaining perform excellently in the beginning Excellence and Relevance in an but only a few are able to sustain their Organization” was organized at NIAS, excellence over long period. Generally, with support of NITI Aayog, with Dr. it is felt that most excellently performing V. K. Saraswat devoting full two days, on organizations lose their shine in 30- 25th, October and 26th, October 2017. 40 years. Obviously, there should be Detailed program of the discussions is certain factors, as some organizations appended as Annexure #2. have retained their excellence over centuries and this is a subject of an The Roundtable was conducted in a interesting study. NIAS and NITI very interactive and frank atmosphere. Aayog (Dr. V. K. Saraswat in particular) The team at NIAS, Dr. Anshuman decided to undertake this exercise of Behera in particular have taken pains to capturing all aspects that are needed to go through the recordings very carefully sustain excellence and relevance of an and captured the salient points. organization through a Roundtable by inviting some of the thought leaders. A The report of the discussions is detailed concept note prepared in this regard is in the Annexure #3. appended as Annexure #1. NATIONAL INSTITUTE OF ADVANCED STUDIES 1 SUSTAINING EXCELLENCE AND RELEVANCE IN AN ORGANIZATION KEY FACTORS FOR SUSTAINED a repetitive narration of vision helps in EXCELLENCE alignment of thought processes in the employees at all levels and goes a long 1. THE VISION way in nurturing excellence. Each organization starts with a vision, The vision of an organization can sometimes very explicit, and sometimes however not remain static. It has to not so explicit. It is noted that the vision evolve with evolution of society itself, of the organization has not only to be which includes science & technology exhibited and expressed very explicitly, adaptation, economic growth, place of the organization has to often reiterate it the society in the world and associated to its staff and also others, to embed it aspirations. Hence, there has to be a in the minds of youngsters, in the very periodic review and evolution of the beginning, a sort of putting in their vision itself. This brings an important DNA. Dr. Sarabhai’s statement in an issue of relevance, as relevance is time United Nations (UN) Conference in dependent. The evolution of vision 1967, has to factor relevance in the context of “There are some who question changing and evolving society. the relevance of space activities in 2. THE VALUE SYSTEM a developing nation. To us there is While the vision is stated very clearly no ambiguity of purpose, we do not before start of any organization, the have the fantasy of competing with value system evolves slowly and largely economically advanced nation in depends on early leadership in the exploration of the moon or the planets organization. It takes 5-10 years and or the manned space Áight. But we one or two generations of leadership for are convinced that if we are to play a the value system in the organization to meaningful role rationally, and in the evolve. Most of the time, value system community of nations we must be is not explicitly captured in words and second to none in the application of communicated with negatives (it is not advanced technologies to the Problems commensurate with the value system of of man and society” is repeated like our organization). The value system is a bible in Indian Space Research not bound by rules and regulations, it is Organisation (ISRO) even today. Such something beyond. 2 NATIONAL INSTITUTE OF ADVANCED STUDIES SUSTAINING EXCELLENCE AND RELEVANCE IN AN ORGANIZATION Recently, we have seen two 3. THE ORGANIZATION CULTURE distinct examples - conÁicts between Organization culture is something management and the founding pillars, related to day to day working of 150 years old Tata sons and 30 years old individuals, interpersonal relationship, Infosys. The management was changed set of rules in day to day management because it was not adhering to the value and the related. The organization system of the organization. Perhaps, it culture is also generally not captured was a good situation that the deviation in words but through narratives from value system of the organization and evolves in Àrst few years of the was arrested in these cases. It does not organization. Like value system, early happen in every organization and that leadership plays an important role in may set in overall trend that may lead to its evolution and goes beyond the laid long term unsustainability of excellence. down rules and regulations. Though Hence, it is important that an all GoI organizations are governed by organization is guided by an informal the same rule book, each has its own mechanism, a set of elders, who do not unique culture. Some of the cultural interfere in the day to day running of an evolution is also dependent on nature organization, but, are able to interfere if of work, for example, Department there is a compromise on value system of Atomic Energy (DAE) has to have of the organization. It is an equivalent of much more concern for safety issues a Raj Rishi of a kingdom, where the Raj in their culture and ISRO has to have Rishi will keep aloof from functioning much more curiosity for new avenues of the state, but intervene if a major of space exploration. Prof. Dhawan deviation of values takes place. was very respectful for ladies in his Present system of Rashtrapati day to day interaction and those who (President) in India is also an adaptation worked closely with him embedded that of such a concept. Though many in their culture, leading it to be a part of organizations do not create such a system, ISRO culture. which is so important for sustainability Organization culture is, however, of excellence for long, however, some a very wide aspect of human behavior Government of India (GoI) departments and difÀcult to capture, though some and academies have created informal efforts are always made in respective mechanism for intervention by elders. organizations. NATIONAL INSTITUTE OF ADVANCED STUDIES 3 SUSTAINING EXCELLENCE AND RELEVANCE IN AN ORGANIZATION It is suggested that each organization Just an example, India is doing should capture various aspects of its well in automobile and company like organization culture through incidents Maruti Suzuki having a large market and examples, to guide subsequent share has excelled in fuel economy generations, for long term sustainability. of the vehicles. The development of automobile engines with respect to fuel 4. Goal/Target setting economy has seen a transformation in Goal or target setting is done by every the last 15 years, more than 100 years of organization as an annual exercise. GoI research before. However, the electric used to have a Àve-year planning, which mobility will be a reality in the next has now been converted to three-year decade and the company has to prepare target setting, Àve-year outlook and for this major change now, if it has to 15-year direction setting. However, retain relevance and sustain excellence. annual target setting still is an important Same is true for any institution, R&D component. or education. Most target setting, however, This wider view of target setting is remains a deliverables, exercise, and many times lost, and is very important this sometimes causes imbalance with for long term sustenance of excellence. respect to long term sustainability. Today, the evolution in S&T sector is 5. ADOPTATION OF TECHNOLOGY, so dynamic that the business model RELEVANT RULES AND PROCEDURES of any organization is changing very Most institutions, including private and fast and an existing good business may public undertakings lack in adaptation become obsolete in a few years. Annual of technologies like e-governance target setting, therefore, has to be more and digital online processing of comprehensive, not just meeting the administrative activity (including pay physical targets, but also preparing for roll, purchase, stores and accounts). the future. This may involve in-house The (GoI) rules are almost century old. Research and Development (R&D), A normal purchase of equipment that acquisition of technology, developing or an MNC does in 3-5 days may take up acquiring human resource and creating to six months in GoI departments. In a new type of infrastructure etc. large value items like a scientiÀc ship 4 NATIONAL INSTITUTE OF ADVANCED STUDIES SUSTAINING EXCELLENCE AND RELEVANCE IN AN ORGANIZATION purchase, GoI procedures take about look for every one (except perhaps the 12-24 months (even more if the IFA is top most post) in their career. not aligned with organizational values). The organization has to nurture It is important that organizations leadership and for any transition to the adopt technology, as it evolves top, there should be a few (at least Àve) and modify rules and procedures capable persons, who are able to lead commensurate with technology the organization. evolution. Functional autonomy is another For GoI organizations, while it is important factor for an organization to important to have a guideline book like perform and create next generation of GFR, each organization should be given leadership.