Latest news with #VectorConsultingGroup
Time of India
3 days ago
- Business
- Time of India
From impossible to possible: Rethinking management to unlock India's manufacturing might
As India sets its sights on becoming a developed nation by 2047, a key lever is the transformation of its manufacturing sector—from contributing 16per cent of GDP today to a target of 25per cent . Much has been said about government policy reforms, but a critical counterpoint often goes unheard: what must organisations themselves do to catalyse this shift? In a deeply reflective conversation with Satyashri Mohanty , Founder of Vector Consulting Group , R.C. Bhargava, Chairman of Maruti Suzuki and author of Impossible to Possible , lays out a compelling argument: India's manufacturing growth depends less on policy changes and more on a paradigm shift in management philosophy. Specifically, he calls for a move away from adversarial, Western-style labour relations toward a more inclusive, partnership-driven model rooted in Eastern ethos. The Flawed Foundation of Western Management in India The Western model of management, Bhargava argues, was shaped in a world of protected markets and limited competition. It never evolved for efficiency or resilience under competitive stress. And while it may be rigorously documented and widely taught, it no longer suits an India that must now play—and win—in the global manufacturing arena. More critically, its approach to labour—treating workers as adversaries rather than collaborators—has led to a culture of mistrust, inefficiency, and immense hidden costs. From absenteeism and low productivity to quality lapses and bloated supervisory layers, the consequences are systemic. The Maruti Alternative: Workers as Partners Maruti's success story, as Bhargava recounts, was rooted in rejecting the default adversarial stance. Instead, inspired by Japanese management practices, Maruti built a model where workers were treated as equal partners. This wasn't a moral stance. It was pragmatic. By aligning worker interests with company performance—through gain-sharing bonuses, transparent communication of goals, and visible investments in their well-being—Maruti created a high-trust, high-performance workplace. Attendance levels soared to 97per cent , average productive hours rose dramatically to about 7.45 hours in an 8-hour shift, and workers voluntarily increased throughput—because it benefited them too! When a factory line worker sees that firing up a machine early translates into greater shared output and higher personal earnings, motivation becomes intrinsic. Maruti didn't just get compliance—it got engaged workers who want to do good for the company- for their own selfish interest. What Needs to Change in Indian Industry So why hasn't this model been replicated across the board? Bhargava is candid: most Indian promoters do not feel existential pressure. Protected markets and decent profits provide comfort. The urgency that drove change in Japan post-WWII or in Maruti's early years simply doesn't exist. But that's precisely what needs to change. Indian promoters must reimagine their role— as nation-builders. Those who seek scale, global recognition, and lasting impact must start by asking: What do I truly want? If the answer is sustained excellence, then involving the 60per cent –70per cent of employees typically disengaged on the shopfloor is not optional—it's the only way. Building a Win-Win System Bhargava lays out the playbook: 1. Mindset Shift: Promoters must see workers not as costs to be managed but as assets to be unlocked. 2. Wealth Sharing: Move beyond fixed bonuses to true profit sharing. Create visible links between effort and reward. 3. Transparency: Open up the books. Share how profits are made and how value will be distributed. 4. Egalitarian Workplace: Break down social hierarchies. Eat together. Signal equality through action, not speeches. 5. Take care of them: Improve the — commute times, housing needs, schools, and health. Fix fatigue and stress 6. Managerial Role-Modelling: Culture is not top-down memos. It's everyday behaviour—cleanliness, punctuality, dignity. This is not a utopia. Maruti did it in the 1980s when labour strife was far worse than it is today. The Economic Case for Change For skeptics, Bhargava makes the math explicit. A 20per cent increase in output through better engagement can significantly improve profitability with minimal capital investment. Even if 10per cent –15per cent of those gains are shared with workers, the enterprise still wins. It's not socialism. It's smart economics. Maruti's numbers speak for itself. As Bhargava sums up, human behaviour is driven by self-interest. The task of management is to design systems where organisational success and individual self-interest converge. The question is no longer if this model works. The only question that remains is— who's ready to lead the change?
&w=3840&q=100)
Business Standard
19-06-2025
- Automotive
- Business Standard
EV plans face 24-month delay as OEMs, suppliers hit R&D, execution limits
Around 88 per cent of India's auto component suppliers are facing severe research and development capacity constraints, and electric vehicle (EV) programmes at legacy original equipment manufacturers (OEMs) are being delayed by up to 24 months, according to a new study by Vector Consulting Group. Long and uncertain wait times for customers, poor after-sales services, and frequent product recalls are the major concerns that the EV industry is currently facing, which is resulting in the delay. The study, based on conversations with over 100 chief experience officers across OEMs and Tier-1 suppliers, finds that the sector's biggest challenge is not a lack of vision or technology, but a widespread execution breakdown across the value chain. Automakers, suppliers, and EV start-ups are discovering that traditional models of new product development, supplier engagement, and supply chain management are no longer fit for purpose. 'The bottleneck is internal: poor coordination, capacity mismatches, and execution blind spots,' said Ravindra Patki, Managing Partner at Vector Consulting Group. 'To thrive in this new era, the industry must rethink how it works—not just what it builds.' Many OEMs are attempting to manage EV and internal combustion engine (ICE) programmes in parallel, without realigning or expanding internal capacity. Engineering, procurement, and validation teams remain shared across programmes, leading to rework, bottlenecks, and chronic delays. Even where dedicated EV teams exist, they often depend on legacy internal systems, reducing their ability to move quickly. Tier-1 suppliers face similar pressure. They are expected to support multiple complex programmes across multiple OEMs at once, often with limited visibility into volume forecasts or product timelines. As a result, suppliers are forced to deal with late-stage design changes, increasing risk, cost, and strain on an already stretched engineering bandwidth. 'If OEMs want reliable delivery, they must involve suppliers early, align them on product priorities, and integrate them into the decision-making process—not just the sourcing cycle,' added Patki. Start-ups, though free from ICE legacies, are not immune to execution challenges. Many over-promise on launch timelines and rely on digital workarounds—such as over-the-air (OTA) updates—to fix post-launch engineering issues. While agile in theory, this approach often leads to short-term fixes that hurt long-term brand trust and increase costs, the study notes. For a solution, the report recommends a fundamental reset in OEM-supplier collaboration. Vector calls for stakeholders to move beyond transactional, cost-down relationships to co-development partnerships. This involves shared risks, earlier design engagement, and common execution targets. It also includes setting up integrated OEM-supplier programme teams and using real-time product-maturity dashboards to reduce friction and delays. 'The winners of the next decade won't be those with the flashiest prototypes, but those who can launch, scale, and improve faster than others,' said Patki. 'That's why the industry must stop patching old systems and start building new ones.'
