Transformation 2.0
Dasari says that Ashok Leyland now has a very structured and comprehensive leadership development programme at all levels. The target Dasari has given to Ashok Leyland's HR is that they should have a hundred CEO candidates. And a lot of work is being done to try and get there. "At one of the leadership development programmes, I said that ‘when we were performing really badly, all I had to do was cut your salary and you knew something was wrong'.
That communication was easy. Now, things are different. Employees are getting 150 percent of their performance variable pay and their salary is in the top range of the industry standard. So how do you then get these people to be excited and motivated. This communication is a lot more difficult." So Dasari explains the five-year strategy to his people.
The foundation of this strategy is ‘Quality, People and Brand'. It includes a lot of things like digital approach, solutions approach, and so on. "In the period of three years to five years, we are migrating from a linear manufactured vehicle to a modular vehicle. Soon, we will move from Euro 4 to Euro 6, which has never been done before. We will go from some degree of internal combustion engines to electric vehicles. May be the customers will say ‘Don't sell me a truck as I get paid per ton kilometre so I will pay you per ton kilometre."
Quite likely, I say. "It is. So, we have to prepare a Company with a DNA, which is different from what it was in the last 70 years. Not only you have to take the initiatives to make the Company successful in the coming times but you also have to change the DNA of the Company along with its culture as well as the thought process! We had to change the DNA once in 2013. And now I have to change it again 2017! We must keep rolling. We will have to do it and this changing DNA is not a choice. It is a matter of survival."
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Indigenously developed iEGR technology Vinod K. Dasari, MD, Ashok Leyland says that Intelligent Exhaust Gas Recirculation (iEGR) technology is a simple yet innovative solution to achieving the desired results to meet the BS4 norms. "This technology is not only better suited to Indian conditions compared to Selective Catalytic Reduction (SCR) technology (based on European technology) but will also prove to be hugely cost effective, easy to operate and hassle-free to maintain. All of which will benefit the Ashok Leyland's customers, resulting in better margins compared to products by OEMs which are based on SCR technology." "More so this indigenous technology will help us deliver on our brand promise of ‘Aapki Jeet, Hamari Jeet' in multiple ways. For our customers it will mean ease of use and better cost efficiencies. For the environment it will mean more efficient fuel combustion and improved emissions. The indigenous development of iEGR technology will also mean faster time to market and minimal cost of implementation. We will emerge as the only OEM in India to have achieved this," Dasari adds. |
Dasari is big fan of the book ‘Zero to One', which he asks all his people to read. And as in the first chapter of this book, he often asks one question to his people. "What is the one truth that you believe in but nobody else will believe in?" The answer that Dasari himself gives to this question is that ‘If we don't do one more transformation, we will not survive'.
"This is the one truth I believe in but nobody else believes. They say that the company is doing well, everybody is getting paid well, we are winning awards, our Pantnagar plant won the Deming Prize and so what are you talking about. Well, it's not that I see an iceberg in front of us. I see a beautiful pasture ahead of us and if we don't take advantage of it then we will miss it completely and perhaps even get swallowed by somebody else.
Dasari believes that here are two aspects to the second transformation. One aspect is that Ashok Leyland should be able to deal with the disruptions that are coming to the market. "We should be able to navigate these disruptions better. Equally important is to prepare the organisation to be ready to deal with these disruptions because nobody knows what these disruptions will be.
"Technology is changing much faster than it used to earlier. Today, we have the lowest cost per horse power in the world, we are only company to make a BS III vehicle with an inline mechanical pump, we are only one with the BS IV with the EGR in the world. These innovations are the hallmark of Ashok Leyland. But these are no longer relevant! Not only I have to invest in the right things but also get the organisation ready," he explains.
Having said that, Dasari believes it is the most exciting period in the entire automotive history by far. He doesn't want his people to get scared about it. "I want them to get excited about it and embrace it. We are best suited to embrace it because we are on a strong platform," he says. While Dasari has great faith in India's manufacturing prowess, he believes that the country's design capabilities could be the game changer.
"Today, we are the only ones in India who design and make their engines in India. Our engines are designed by us, developed by us and manufactured by us. That's why we are able to create what is required in India. PM Modi's ‘Make in India' campaign is very good but if you want to make it successful then you will also have to ‘Design in India'," he says.
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