People – the competitive advantage for an organisation

Every company in the world tries to identify what is its competitive advantage ? They look at what markets they operate in ? Who are their competitors ? What are their sources of competitive advantage ? This leads to factors like Cost, Quality, Reliability , Service, Innovation, Products etc. But, I do not subscribe to this theory of management. In my view, all competitors ultimately catch up to your sources of competitive advantage today or tomorrow. Hence, it is only “People” working with you, who are your only source of competitive advantage, which is not replicable.

Hence, if we believe that we have to make our organisation a great place to work – we have to realize that “Managing People” is not nice to have but must have factor for organisational success. If we take the simple example of the auto industry, we will get our answers. Today, the cars produced by different companies in the same segment is not very much differentiated. They have the similar technology, features, price etc. What really differentiates them is the service, which that company provides you before or after the sale of the car. Service is delivered by people and people are the key differentiator.

We have evolved the concept of “Ownership culture” in our organisation. What does this mean – this means that every manager owns her or his people in every possible way. A manager is the friend, guide and philosopher for his team. We need to build the people management skills in every manager so that they take care of their team members.

We launched the “People Matter” programme and the manager fitness certificate to support this philosophy in Siemens. This would help us strengthen the ownership culture by creating highly motivated teams. This would in turn enhance our customer experience. Like they say, if you take care of your employees, they will take care of your customers.

In this intervention, we partnered with Great Place to Work(GPTW). The reason why we selected GPTW is because we wanted a partner, who understand India and also helps us understand the best people practises in the world. They have helped us customise the programme to suit our context. They have benchmarked us with the best in the world and are supporting us to become the best.

This has been an exciting journey for me personally. I travel across the company and have visited almost all locations of Siemens. Everywhere I have been since the launch of the People Matter programme, employees have told me that they see the significant change in the behaviour of their managers. This is very heart warming. They tell me that their managers listen more and spend more time with them for their own development.

It is the people in the organization, who make a difference as illustrated in the photo above.

We would like to make this a way of life in Siemens. This is not a one of flavour of the season. We want every people manager to be the face of the employee in Siemens. We will empower them to take people decisions for all their team members. We will incorporate this in some way towards the “How” assessment in the PMP process. We will reward and recognise the best people managers periodically across the company.

We believe that it is “Customer first” but “Employee always” in Siemens.
 
S Ramesh Shankar
 

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