S. N. SUBRAHMANYAN
Chief Executive Officer & Managing Director, Larsen & Toubro
Dear colleagues,
Winning two of the largest packages (C-4 & C-6) of the Bullet Train project that constitutes about 60+% of the project are certainly the brightest spots for us in a particularly tough two quarters. This huge High Speed Rail project is certainly an inflection point in the revival of India’s infrastructure economy with tremendous potential to positively impact the entire eco-system: create jobs, give a leg up to the beleaguered SMEs and MSMEs and boost the manufacturing and construction sectors. It should help jumpstart our economy, drive confidence that is presently lacking and turn around sentiments all of which augur well for our nation’s concerted effort to return to business as usual.
A test of our skills
Of course, as an organization, we should celebrate this great win! Kudos to all the contract and planning teams across ICs who spent several days and sleepless nights putting together our various bids. All of you deserve a huge pat on the back. At the same time, we should be cognizant of the fact that considering the size, scale and complexity of this mandate (cumulatively for about INR 32,000 Crores), it is the biggest EPC order awarded in the country till date that is definitely going to test our capability to build to Speed & Scale. The project will demand an extremely refined level of project conception, planning, management, and execution. It will force us to Think Big, scale up our potential individually and collectively to forge ahead. These are not new to us, but will be a challenge, nevertheless.
The project will demand an extremely refined level of project conception, planning, management, and execution. It will force us to Think Big, scale up our potential individually and collectively to forge ahead.
First time right
We will have to get it ‘First Time Right’ which is also the theme for the Quality Month of November. There is no denying that we need to diligently innovate, automate, digitalize, and optimize to cut wastages, arrest cost leakages, and enhance efficiencies that will depend on the Quality of our work and the Speed with which we can get it done. More than anything else, we have a huge commitment to our client who has reposed their faith in us to deliver so we cannot afford or tolerate any laxness.
We need to diligently innovate, automate, digitalize, and optimize to cut wastages, arrest cost leakages, and enhance efficiencies that will depend on the Quality of our work and the Speed with which we can get it done.
The paradigm has shifted such that the world is no more saying, “Because of the pandemic” but instead, “Despite the pandemic’. In this issue of ECC Concord, we have presented how projects, both big and not-so-big, in India and overseas, across ICs and businesses, have re-oriented, realigned, refocused and recast their strategies and plans to overcome the issues of labour migration, supply chain disruptions, client push-backs to adopt the new normal of virtual interactions and, of course, the overwhelming fear of infections. It is obvious that having lost almost two months, the back log is huge, the asking rate extremely steep. There is a refreshing acknowledgment and recognition of this new reality and an urgency and aggression to make up lost ground. We cannot afford to let up this pressure. We need to continue to drive progress by addressing each problem, getting into its minutest details to solve. We must continue to chase cash and revenue will surely follow, our focus must be unwaveringly to invoice regularly and collect aggressively.
Find opportunity in crisis
There is opportunity in every crisis. One huge gain from what has transpired over the past few months is the greater realization and adoption of mechanization, automation and digitalization across systems and processes. Perhaps, the pandemic situation forced us out of our comfort zones to rethink and recalibrate ourselves, but the result has been encouraging and hugely beneficial for the organization. Railway projects have taken advantage of traffic blocks to push progress; road projects have achieved milestones quicker because of the lack of vehicular traffic; several projects have gained ground with the help of clients to function through the lockdowns and get deliveries through special channels. We collectively thought differently and therefore succeeded
against odds.
The pandemic situation forced us out of our comfort zones to rethink and recalibrate ourselves, but the result has been encouraging and hugely beneficial for the organization.
Having raised the bar, we must stay committed to inculcate and nurture a culture of constantly questioning status quo, of flawless delivery, of unquestionable and non-negotiable quality and safety standards.
Keep Safety as top priority
Safety has been our weak spot for a while. We just cannot allow it to remain so. There have been enough and more discussions, brainstorming and planning. It is time for that effort to translate into action on ground. Our safety record has been chequered to say the least. We need to adopt an attitude of Zero Tolerance to anything unsafe across the board, from Board Room to project site. That is the only way we can achieve our objective of Zero Harm. Fatalities and injuries affect not just one person, but the livelihood of entire families. If we, as an organization, accept that reality, safety should ideally become muscle memory.
COVID-19 has not gone anywhere but we have learnt to live with it and yet perform. As they always say, tough situations do not last; tough people do. The present situation has yet again revealed how uniquely adaptive we are. We need to continue in the same vein because challenges are many and time is woefully short.
Drive progress. Collect cash. Keep performing.
All the best!