THE EXCHANGE. Minding the gaps in implementation

The poet Robert Burns has written that “the best laid schemes of mice and men go often askew, and leave us nothing but grief and pain for promised joy”. Leaders formulating vision and strategy must pay scrupulous attention to eliminating gaps between plans, actions and results to ensure delivery of what they have undertaken.

A strategy gap represents the gulf between an entity’s (be it a country or an enterprise) current and desired performance. Such gaps are a part of real life but are often underestimated. Their outcomes manifest through inferior execution rather than poor vision or strategy.

At the cost of being abstract, I revert to management-school theories to identify key steps for intensive change and improvement. The idea is to fine-tune thoughts in terms of charting the way ahead, while allowing readers to spot gaps between reality and intent.

According to the world-renowned thought leader Prof John P Kotter, key sequential steps to implementing change comprise creating an enhanced sense of urgency, developing vision and supporting missions, empowering leadership teams, intense communications with stakeholders, and delivering a few quick-hit widely visible wins. Such wins build credibility, in turn enhancing spirit and commitment.

People actually do less based on analysis which can change their thinking; they instead do more when they are shown a reality that influences their core feelings and beliefs. It is now a matter of record that 2014 brought a change in attitudes that development is the only way to meet mass aspirations in a more meaningful way than state benevolence. The initial urgency inspired by the leadership was therefore shared widely; but high expectations can also shatter easily.

Simple and clear uplifting visions have been created. Each core vision needs to be supported by a strategy that cohesively addresses all links in the relevant chain. Given circumstances that have built up over time (for example, falling public and private investments, rising government spend, reducing competitiveness, depressed global markets, stressed agricultural health, skill mismatch between availability and need, etc.) the urgent overtook the important. Strategies got blurred into interim plans and budgets. Of course, such instruments are necessary but are insufficient and tend to be slow or cautious in a faster-moving environment.

The core economic areas were quick to get dynamic and astute political leadership and they were empowered, supported by the internal review and monitoring mechanism of the Prime Minister.

However, the core of the execution cycle (including the detailing of the policy principles) lies with the bureaucracy, and it is acknowledged that execution hurdles exist. Unfortunately, for much of the thought process in officialdom, “empowerment” seems to be readily construed as “the ability to control”. This prevents their ditching of a command-and-control mindset of the decades past. Therefore, state intervention, inherent power to tinker, prescriptive micro-management, and an inclination to intimidate, continue to make many rules irrational.

The government has invested great energy and reputation on making the conduct of business easier; but the same enthusiasm cannot be conferred on arms and extensions of the government, such as various regulators, professional institutes and the like. The administration has a good road map and goal for improvement — it may like to fine-tune it taking these ancillaries into account.

In sum, while much work in progress is evident, structural reforms and systemic changes may not have been pursued with the vigour they deserve. Relying on incremental gains and refinements (despite the fact that they have improved hygiene meaningfully) yield marginal outcomes and not the quantum jumps that the overall vision needs.

Despite profound communication capacities of the leadership, the messaging on development is probably less aggressive than it was in 2014. Significant communication space has been taken up in the last 12 months on economic matters forced by political necessity — be it on black money, sharing in social schemes by the commercial sector or the fight over the land Bill. But all of this has not translated into deserving concrete outcomes.

There are substantial reach-outs to invite FDI that give positive signals for India as a destination for capital. However even at its peak, FDI will not be a significant or swing factor in aggregate investments. Investment revival will ultimately and mostly be driven by domestic business and government capital spending.

Unless private business shows confidence by restarting investment, FDI will remain circumspect. Therefore, as I have always believed, a cohesive and comprehensive strategy to enhance the engagement of leadership with domestic business will be delightful. Without this there will always be a kind of unwanted “credibility gap”: business harbouring reservations and government not being quite clear why. Such a situation cannot help anyone.

The last stage in building confidence in the change (development) process is the announcement of quick-hit wins. There is a remarkable range of the kind of wins that work — ones that are as visible as possible to the largest number of people; those that penetrate emotional barriers by being unambiguous; those that address players whose support is needed but is not achieved; and those that can be achieved cheaply and easily — even if small compared to the grand vision.

Providing a first win too slowly, or trying to find a win amongst multiple worthy projects, affects credibility and momentum and promotes cynics and sceptics. We must articulate real successes going beyond statistics or technical data or court-triggered outcomes, usually understood by a few. Broad-based regular communications from the leadership must keep outlining the nation’s growth, economic and competitiveness needs as well as priorities; this will build wider pressure and acceptability for economic reforms and tough decisions.

There is much to excite all of us in the development vision of the leadership and the energy with which missions have been taken up. The next 12 months or so need to be filled up with outcomes and communications to build up renewed momentum that leads to a full revival and sustained growth. As in my last article, I again quote the writer JRR Tolkien to say “all's well that ends better”.

This column explores ideas and opinions on Indian enterprise and economy. The writer is an entrepreneur and former president of Ficci. The views are personal