As part of our study “India Business Climate Index” We found that 70 percent of German companies (significantly) miss their sales targets in India. But even beyond sales figures, many managers complain about the difficulties of day-to-day business in India. There are obviously very different opinions between Central European and Indian teams, particularly about compliance with time and quality requirements.
In an internal study, we randomly surveyed German and Indian employees of our existing customers on the topic of goal fulfillment: “What percentage deviation from timelines and budget do you consider to be acceptable in order to describe a project as successful?” German employees considered 12 percent below the target to be acceptable. In contrast, Indian teams on average rated a deviation of 43 percent from the set goal as a “complete success”!
There are enormous differences in the respective perceptions of quality and time between Germany and India. The challenge for European companies now is to close this gap. This means preventing second-rate quality and unacceptable delays as well as completely ignoring assigned tasks in India.
Approaches for quality and progress control within your own company
On the subject Leadership and control in India we have already published several articles on this blog.
It cannot be emphasized often enough: in India, leading by goals and deadlines is not promising. Instead, as a German entrepreneur, you must remain involved throughout the entire process of a project or task.
Trust is good. Control is better.
Note: In India, follow-up is always (!) expected. In contrast to Europe, control is viewed as very positive in India. A lack of inquiries from you is quickly seen as a lack of interest and automatically reduces the priority given to a task. The basic rule in India is: the more you get involved, the more gets done. Only continuous and careful monitoring ensures the achievement of goals. Of course, more attention and time must be allocated to management in India. This also explains the many management levels in Indian organizations - there are always enough people asking questions and checking at every level.
At the start of the project, all goals and tasks must be meticulously defined together with the employees involved or at least their direct superiors. And it is particularly important to clearly state the impending sanctions in the event of non-performance or non-compliance. Because sooner rather than later the limits of the possibilities for negligence and sloppiness will be tested. If this is not followed by the sanctions discussed or no sanctions at all, you have already lost. The same thing will happen if you try to introduce quality standards and sanctions after the fact.
Measures when dealing with external suppliers.
What applies to employees in your own company must fundamentally also be applied to your external service providers: clear and complete definition of the expected performance as well as permanent and meticulous control of project progress.
In India, more than anywhere else in the world, the old saying “knowledge is power” applies. This is why strangers and service providers in particular often withhold information, documents and additional services that you are actually entitled to under the contract. Therefore, you should better use the so-called “Salami tactics” apply.
If you don't get the important things you need and a situation like the one described above arises, there is no way around putting pressure on the respective service provider yourself as soon as possible. Because only if the service provider becomes the person affected through you will you get what you are entitled to.
Depending on how the matter develops, you can think about a strategy as to how you can best make your service provider the “sufferer” in such a case. It is imperative that “equality of arms” be established between the parties.
Direct “economic sanctions” usually work best: in the worst case, you would even have to temporarily stop payments to the other party. The end really justifies all means here and there are actually no limits to your creativity for legal strategies to put pressure on an Indian service provider. The main thing is that you get your rights!
