The Utilitarian Settlement – Supply Works Gets Worked Up
October 2014 was difficult by any standards for Ravi Malhotra, the Managing Director of Supply Works, as he had to make a decision one way or another. The restructuring had to be undertaken immediately and the Company Board had asked him to act swiftly. The business model of the company would be posed with a grave challenge, if the people planning and budgets were not streamlined in line with the new MoU. As he reviewed the MoU to be tabled to the Union, he knew it would be a very hard a sell, tougher than any other client he had to handle in his career till date.
As he sat in his cabin in the sprawling corporate office, Ravi pondered over how all the accolades and successes of this small but significantly impactful business could be sustained in future. After all, he and his colleagues in the senior management even doubted the replicability of the business and its expansion at early times.
Supply Works had come a long way from those initial days of apprehension and had proved to be a model par excellence for future businesses. It was a unique model, wherein although it was the responsibility of the local government to provide basic utility, a private Institution for the past decade had indeed successfully managed civic infrastructure to the citizens.
Yet, Ravi knew that the platform on which Supply Works operated and the environment conditions were rather distinct..................
Company Background: The History and Genesis
Availability of quality infrastructure and civic services are minimal in India unlike the developed nations. Where citizens were used to lack of potable water, bumpy roads, dysfunctional sewers and an unreliable power infrastructure, Supply Works was breaking records in the annals of history.
The formation of two new States by the Central Government in the early part of 2000 saw the division of the mineral rich districts in equal half between the two States of North-Khanij and South- Khanij. Interestingly, the demographics of the people of the two States were largely different. North- Khanij was home to a large number of worker-class who were used to menial and daily-wage jobs while those in South-Khanij were more educated, office-going and had an enhanced lifestyle closely emulating those of the larger cities............
Core Expertise and Differentiators
Amidst its various service offerings, Supply Works excelled in the area of water management. Its competencies in the area spanned over decades of experience in managing water resources. Its river-toriver water management involves the utilization of the best technologies, expertise and quality standards. Managing both water and wastewater resources requires not just the technical expertise but also a deep commitment to the overall objective of water management. Supply Works accordingly had not only invested in the technologies but also had robust systems and processes that draw its fundamental difference from those of the other providers of such systems............
The Accolades
In 2005, Vibhav was selected as one amongst the six cities around the World to participate in the United National Global Compact (UNGC) Cities pilot program. The primary objective of the program was to apply the universal UNGC principles in the areas of water management, infrastructure renewal, shortage of food and housing, health services etc. Vibhav was the only Indian city selected for such a prestigious Global program, largely owing to the efforts of Supply Works’ urban management efforts............
The Government and The Projects
There were inordinate interventions by the State Government over the many years of Supply Works’ operations. First, there was the cause of taking over of the municipal services provided by Supply Works by the Government. This was quashed thanks to the sentiments of the local communities, which preferred that Supply Works continue to provide amenities to the city and the State in general..............
The Transfer and The Union
Ever since its inception in 2004, Supply Works had continuity in people by way of transfers from the seed team at P&A. Both categories of employees – workers and officers were transferred to the new entity. As in any change, there were numerous questions and mounting resistance towards the separation of the company. However, it was clear to the P&A management that the spin-off was becoming more and more essential and imperative..............
Workforce, Technology and Skills
In a small place like Vibhav, not much skilled labor was available. The jobs on the field were menial and hard. The hazards were many. Safety norms had to be upheld all the time. Any small gap in the work done could lead to huge customer dissatisfaction...........
Wages and Benefits
In 2004, the original transferees from P&A were spread across four different grades (S, B, N and M). Existing wages were much higher than the minimum wages prescribed by the Government and the Dearness Allowance was separate from the Basic Wage. Nevertheless, calculation of DA was cumbersome given the fluctuations that were happening across the varied quarters and a flat DA structure was proving to dent the wage bill of the company.................
The Management Dilemma
The executive team consisting of the Senior GM – HR, Mr. Shyam Borah (Shyam) and Senior GM – Operations, Mr. Deepak Sahani (Deepak) had sat together along with Ravi to chart out the course forward. They ascertained that there were two issues that needed to be addressed. The SWU’s CoD (Charter of Demands) and the issue of labor skills and productivity............
Exhibits
Exhibit I: Vision Statement
Exhibit II: Mission Statement
Exhibit III: Supply Works Functional Structure
Exhibit IV: Quality Policy
Exhibit VI: Climate Change Policy
Exhibit VII: Human Resource Policy
Exhibit VIII: Renewed Three-Grade Structure and a Policy for Employment of Wards of Employees
