It actually has nothing to do with the current situation surrounding Covid-19. But what Volker Klosowski, our Senior expert for certification as well as pandemic and hygiene concepts, on WB India Summit reported is symptomatic of the behavior of Indian organizations.
Staging and truth
The following phenomenon may also sound familiar to you: Initial (over-) motivation - for example when introducing new processes or standards - often gives way in India to a certain complacency, excessive pragmatism or ongoing improvisation. As soon as control and sanction mechanisms take a back seat, the consequences quickly diminish. And it obviously makes a difference whether you are there or not. Accordingly, there are two different organizations in India:
- a formal one that works according to standardized processes and can also be audited by the parent company (staging), and
- the true organization that deals with specifications more flexibly and improvises by default (truth).
In the interests of the European parent company and investor, the Indian subsidiary always meets defined quality requirements, uses resources sensibly and operates sustainably and efficiently - as far as the claim is concerned. In reality, however, there are sometimes blatant deviations from these requirements. And that is usually due to the lack of it Controlling the branch.
Key questions about the balance of interests between India and Europe
Therefore, be sure to pay attention to the incentive systems you create in India. Are short-term or long-term goals rewarded? Is there a sensible balance between individual and overall interests? How are processes and compliance documented? What sanction mechanisms have been agreed? What information does the parent company regularly need from India in order to intervene? How much (full)Power leave to Indian management? How can you best support Indian management with information and tools?
Keep asking yourself these questions! This is more important now than ever! Covid-19 offers Indian management a welcome “excuse” for suboptimal performance. And for understandable reasons, this is rarely questioned. As a manager, you don’t want to increase the pressure unnecessarily…
But that's not the goal at all. It's more about collecting (further) objective information through objective channels in order to then develop long-term strategies together(!) with local management.
Numerous company representatives have discussed how to continue to increase sales while reducing costs during this crisis WB India Summit reported. Contact us now without obligation if you want to optimize your costs and processes in India.
