Ajay Piramal, Chairman, Nicholas Piramal India Limited, reveals how he achieved phenomenal corporate growth in a new industry by implementing a differentiated strategy.
You cannot fool yourself, reality will strike.
Five years ago, my management style was radically different from what it is today. I was a hands-off manager and had entrusted the running of the company to a professional manager.
However, over a period of time I realised that though the company was profitable it was not performing to its fullest potential. Delving deeper into the issue I recognised that the company was not moving in the right direction in terms of sustainability of profit levels, quality of people and retaining market share.
The first thing I did was to change the CEO and personally get involved in the management of the company. I took a step back, understood the basics, hired McKinsey to evaluate our strategy and then implemented it. My top management was restructured and we improved the quality and depth of management across the company.
We got out of unprofitable businesses and worked on maximising the value of the assets we owned. This was a huge challenge for me and it made me more detail-oriented and quantitative. I spend a fair amount of my time now in planning and thinking in order to identify performance levers, growth engines and the root causes of poor performance.
1. You have to think big. Because ultimately you are what you think you are.
2. The values of the employees should be harmonious with those of the organisation.
3. You must keep stretching your employees more and more.
4. It is essential to break barriers.
5. Every company reinvents itself over a period of time.
6. Believe in your strategy and stick to it even if you are criticised for it.
7. It is important to have milestones to motivate your employees.
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