The Indian SME sector contributes to 8% of the GDP whilst employing more than 80 million people. It generates 45% of the total manufacturing output and 40% of exports; definitely not a pie that can be ignored. India today poses to be the next super power and why not? The current political leadership is driving the nation like a professional CEO of a well-established organization. This journey towards becoming the best in the globe will need consistent improvement on many fronts and it will therefore demand excellent leadership and management skills on the part of the entrepreneurs and the managers they hire. The skill that can enable continuous improvement in the organization that leads to quality products at the right time and at the right price.
Easier said than done, if you look closely, there are a billion areas that will need work.So to understand this better let us take a helicopter view.From here it germinates into 4 key areas where every small Indian business must strive for excellence. These are…
A) Financial Excellence
B) Operational Excellence
C) Technological Excellence
D) Human Resource Excellence
There is nothing new, we all know these 4 areas. However, what is important to understand is that all these four areas are interlinked with each other. Any one area cannot be successful in isolation. An organization that is attractive to a financial institution is the way it is for a reason and the reasons are the other three areas. Similarly, one cannot achieve operational excellence without good people working with superlative technology which by the way, needs money and that means the need for financial excellence. This interlinkage between the must win areas, demands leaders and managers to have skills to see the relationships between departments and functions, to see beyond their own functional boundaries and understand how they impact the overall output. It can be very taxing to be able to do this, specially in the SME environment where emotions are attached to the portfolio one is handling and absence of a system that facilitates such cross functional improvements.
Hardik Harsora, Co- founder of Effex Business Solutions, a management consulting company, said “To understand and manage cross functional, interconnected aspects of business, managers must see business as an amalgamation of multiple processes, all talking to each other and then improve the processes which they manage with the intention to improve the communication and flow of information with other processes they talk to. Entrepreneurs need to understand process excellence to be able to drive this well. There are several process excellence systems that one can employ. We have designed a process excellence system that we call ‘Propel’ which employs logic and is suitable for the Indian SME environment.”