Client Overview
Mr. Karmakar, an ambitious entrepreneur, founded a turn-key management company in 1995. Specializing in manufacturing and installing engineering products such as pressure vessels, chemical plant equipment, and pharmaceutical machinery, the company served diverse sectors including pharmaceutical, chemical, oil, and gas industries. Operating from multiple branches across India, including Mumbai (headquarters), Gujarat, Hyderabad, and Chennai, the company boasted a workforce of 400 employees and a manufacturing unit in Aurangabad. Despite achieving a satisfactory turnover of ₹70 crores in FY 2013-14, the company faced significant financial challenges.
The Challenge
Although Mr. Karmakar entrusted his two Vice Presidents, Mr. Mathur and Mr. Sihi, to oversee project execution, the organization encountered growing operational inefficiencies:
- Escalating Costs : .Despite numerous projects and satisfied customers, operational costs surged, outpacing revenue growth.
- Role Confusion : .Undefined roles and responsibilities at multiple organizational levels led to inefficiencies.
- Ineffective Delegationn : .Over-reliance on Mr. Mathur and Mr. Sihi for decisions and operations caused delays and bottlenecks.
- Underutilized ERP : The existing ERP system lacked effective integration for decision-making and reporting.
- Lack of Structure :: .Absence of clear organizational processes and interdepartmental coordination caused delays and financial losses.
Our Approach
To address these challenges, Augmentum Management initiated a structured two-team intervention focused on organizational restructuring and leadership development.
Team A: Process and Structure Optimization
- Redefined Organizational Chart : .Created a streamlined structure with well-defined roles and responsibilities.t.
- Process Mapping : .Identified inefficiencies and aligned processes with ERP for accurate tracking and reporting.
- Cost Analysis :.Introduced cost centers to monitor financial impacts and benchmark operational performance.
- Interdepartmental Coordination :.Established regular interdepartmental meetings to improve communication and accountability.
- ERP Integration : .5.Guided the ERP team to enhance system functionalities, enabling better data utilization for decision-making.
Team B: Leadership Development and Delegation
- Leadership Training : .Conducted workshops with Vice Presidents to highlight the importance of effective delegation and strategic decision-making.
- Defined KRAs: : Set clear Key Result Areas (KRAs) for all departments, ensuring accountability and measurable outcomes.
- Team Engagement ::.Facilitated weekly review meetings to foster collaboration and improve project execution.
- Handholding Support: :.Provided one-on-one coaching to HODs and Vice Presidents, enabling them to conduct effective meetings and follow-ups.
The Outcome
Within 10 months, the organization witnessed significant improvements:
- Enhanced Financial Oversight :The integration of cost centers in ERP allowed real-time tracking of financial performance.
- Streamlined Operations: : Clear roles and responsibilities reduced overlaps and improved efficiency.
- Effective Delegation: Vice Presidents embraced delegation, empowering team members and reducing bottlenecks.
- Improved Decision-Making: Regular review meetings and structured processes led to timely and accurate decisions.
The exercise emphasized the critical importance of prioritizing impactful work over being excessively busy. As Mr. Karmakar aptly realized, “Being busy doesn’t always mean being effective.”
Takeaway
This case highlights the transformational impact of addressing leadership inefficiencies and aligning organizational processes with robust systems like ERP. Leaders who delegate effectively and implement structured processes enable sustainable growth and minimize financial losses.