Partners column

Dear friends

As 2012  has come to an end, let me wish you and your family all the best for the New Year. I hope that 2013 brings you good health, wealth, prosperity and great happiness.

Leaders and Organizations continue to face challenges while trying to keep pace with the highly competitive global business environment, disruptive technologies and businesses. I was wondering, is there is a quick solution to fix this, of course not; but I found an interesting research based article of Harvard Business School – Organizational Alignment – the 7S Model (1996), a tool for analysis and action, which can give a direction to the Leaders. 7S stands for – Strategy, Structure, Systems, Staffing, Skills, Style and Shared Values. 7S Model helps Leaders to understand the strengths and weaknesses of organisations and can offer powerful insights to guide management action.

Companies Bill 2012 has been passed by the Loksabha on 18th Dec 2012,  a major step in bringing new company law legislation. It’s likely to become an act with the approval of Rajya Sabha and President’s assent in next 2/3 months. The objective is to enact a new legislation to provide for new provisions to meet the changed national and international economic environment, technological changes and further accelerate the expansion and growth of our economy. I always advocated that company law regulations shall distinguish businesses that are run on (i) Private Capital or Owners Capital and (ii) Public money (Deposits, loans from institutions, IPOs etc.,) and regulations shall provide greater autonomy, flexibility, lesser compliance’s to companies run by their own capital Vs companies run by public money. Companies Bill clearly appreciates this rationale and new regulatory framework encircles this underlying principle. Whether new legislation enables easy formation, operating and closing down of companies, I think only time can tell this.

It was great to know eight Indian CEOs have made it to Harvard Business Review’s (HBR – 2013 version of CEO score card) list of 100 best performing global chief executives headed by the late Steve Jobs of Apple. ITC Chairman Y.C. Deveshwar, ranked seventh overall (Rank 7), was first among the Indian CEOs. Under his leadership, ITC saw its value increase by $45 billion. Congratulations to all these CEOs. It motivates all our entrepreneurs.

Best regards,
Raghu Babu G
31 Dec 2012.

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