Recession and Organizational Restructuring

Cautious recovery of stock market and second innings of government has changed the Indian economic discussions from 'recession' to 'growth'. Just few months back when various companies were innovative in changing practices to fight recession by reducing cost are now thinking optimistic for expansion and growth. I feel the greatest gain of last crisis to Indian industries are cost consciousness with eye on opportunity for growth.

In this blog i want to discuss the strategies adopted by various companies on their organizational restructuring by either splitting up for growth or consolidation for cost rationalization. Which strategy is better? Should it be a role of a recession manager or a regular activity in regular time.

Here are the examples of various companies who used either consolidation or expansion for efficiency or growth or vice-versa in last few months:

1. Bharati Airtel recasts business into nine arms to increase focus on non voice business like mobile commerce, entertainment, media, internet, enterprise services and small & medium businesses.

2. Dabur decides to split sales force, stockists to prop up market share

3. Tata Tea Brews plan for consolidation by merging tea, water and soft drink business into single entity to simplify operations and rationalize cost.

4. In the similar consolidation line Godrej announces merger of its three businesses; Godrej Consumer Products (GCPL) and two of its joint ventures — Godrej Sara Lee (GSL) and Godrej Hershey’s (GHL).

What Motivates You?

Have you ever tried to identify the key drivers which define your integrity and commitment to the organization you are working for? Lets look this question beyond pay cheques, promotions or other best HR practices. Also beyond morale and value system we have learned in our upbringing. I’ve tried to find out the answer out my own industry experience and discovered that at least one or more than one of the following four drivers are must to define your commitment and the associated approach to your work in any organization or industry:

1. The degree of believe in the product or services you are working for. The more believe more the association. The degree of believe should be to the extent that your personality can be identified with the product or services you are in.
2. The feeling of 'WOW' on the present strategies or future plans of the company. It is company's top management responsibility to make this clear and transparent down the line. It could be fully or partially in your hand too.
3. There should be a leader in the organization who should be inspiring enough to be your role model. If there are such personalities, you will find that your personality will take a radical shift. If there are no such personalities in your organization, well, there's an opportunity.
4. Last but not the least the clarity of your own carrier growth path. It should match your ambitions and futuristic financial requirements.

Well to find your motivation just asses the product or services, the strategies, the leaders of you organization and your own ambitions.