S. N. SUBRAHMANYAN
CEO & Managing Director, L&T
Dear Colleagues,
One of the most remarkable achievements of our country in recent times has been the successful Chandrayaan-3 mission, placing us at the frontiers of space exploration and immeasurably enhancing our global standing amongst technologically advanced nations. We, at L&T, promise to do the things that make India and the world proud, and certainly our significant role in the success of this mission is a matter of immense pride for all of us and an affirmation to the world of what we are truly capable of. The Chandrayaan-3 mission holds special relevance for us on two other aspects: firstly, it is by far the most economically and successfully executed space exploration programme globally, and secondly, it was delivered in time.
Our mantra of timely delivery
The good news is that we have clients who trust us, our order book is at its most robust, our market cap and share price at their highest, but the enormous responsibility on each of us is to keep all this intact and growing. We can only achieve that if we keep delivering our projects on time. Even a single day’s overrun threatens our profitability, and considering the size, scale, and complexity of some of the projects we are presently executing, the threat to our bottom line is very real if we are not on top of every aspect of project planning, progress monitoring and execution. Nothing, absolutely nothing, can and should come in the way of delivering our projects ON TIME. Even a small difference of
2% to our EBITA can go a long way to driving up our profitability.
Nothing, absolutely nothing, can and should come in the way of delivering our projects ON TIME. Even a small difference of 2% to our EBITA can go a long way to driving up our profitability.
This issue of ECC Concord highlights projects and project teams from across our various business verticals who are striving to make this 2% difference and deliver as per our contractual obligations despite the endless challenges they are facing. If projects being executed in the mighty Himalayas or in the middle of deserts or even under bustling,
over-crowded metropolises can keep to their asking rates, there can be no excuses for others. You just cannot afford to let your guard slip: any and every aspect has the potential to throw progress off track, be it mobilizing labour or procuring resources or getting timely clearances and approvals, resolving RoW issues, or even acquiring the right talent. Stay focused on your delivery goal. Nothing else matters.
If projects being executed in the mighty Himalayas or in the middle of deserts or even under bustling, over-crowded metropolises can keep to their asking rates, there can be no excuses for others.
Build on the customer trust we have already built
Customers believe in us, and sometimes more than how much we believe in ourselves. Their primary intent is to get their projects delivered at the earliest to quality, and if we impress upon them that we too share their intent and sense of purpose, then we are on a good wicket. Make your customer your biggest ally, because they are best placed and equipped to remove most of your stumbling blocks, big or small. To be, and remain, on their wavelength, it is essential to understand their expectations, both stated and unstated, and deliver them to the fullest. Nothing thrills a customer more than his unstated requirement understood and met by us. We have been executing projects over the decades and, in the process, have built a huge reservoir of trust; the onus is on us to keep adding to it. That is an imperative for our continued success.
At the danger of repetition, it is equally important for you to stand tall before your customers, confident of our collective capability to deliver. Remember, they came to us and awarded a job because they believed we were the best to do it; always live up to that trust that has been reposed in us. You are in no way inferior and always have the courage to say “No” if a request or demand is outside the purview of the contract or is unreasonable, that can adversely impact our delivery timelines. By convincingly stating your case, you will win their respect and that is a key factor in building solid bridges with them.
Behaviour with customers at different levels is important. There is a thin line between overconfidence and arrogance. We should be aware and be very conscious about this. At no stage, should behaviour with the customer be construed as rude, unpleasant, boorish, or arrogant. There are cases within the company as such. It will not be looked at as part of our culture or value system. Customer is right, we must learn to manage.
Behaviour with customers at different levels is important. There is a thin line between overconfidence and arrogance. We should be aware and be very conscious about this. Customer is right, we must learn to manage.
Keep your own house in best order
Consistent and high-quality execution demands that your house should be in best order, being it on the EHS front, or quality, or housekeeping. We are all acutely aware that EHS is not an accident but the result of discipline. Quality is a mindset; good housekeeping a habit. Do follow these dictates; these are what make a significant difference between success and failure.
Even as you read this message, there would have been a change of guard at the top in your Company, and I would have taken over the reins from Mr. A M Naik as Chairman & Managing Director, but nothing really changes. We have a legacy that we are proud of; we have mandates to deliver to our customers; let us continue to do so with greater focus, passion, and drive.
Let’s do it together! Am confident we can!
All the best!
S N Subrahmanyan
Chairman & Managing Director, Larsen & Toubro