20 January 2015
Indian corporate history is littered with restructuring successes and failures. Each one of them comes with a lesson for potential re-shapers in Global Inc. These lessons are as much relevant today as they were in the early Nineties.
What are the most unforgettable lessons from these restructuring hits and misses? Here are 15 of them, cherry-picked from the furious five years between 1991 and 1996 when restructuring was quite fashionable.
Still fresh in memory are those five restructuring years, between 1991 and 1996, when India Inc went on a spree, re-sizing itself to health.
Why such rampageous restructuring? Compelled by the caveats of stormy liberalisation, corporate India of the Nineties began re-looking seriously at the state of its own messy and mired backyard. What it saw over there was certainly not at all pleasant to look at. Restive and really concerned, many corporate chieftains began burning their midnight lamps.
All in frantic search of smart strategies. Desperate to inject greater efficiency into their businesses, these restless corporate hordes unleashed a furious wave of corporate tinkering in a bid to earn more. So that they could survive and succeed. Primarily, all such surgeries were aimed at turning their corporations globally competitive and more investor-friendly.
Finally, how did they go about doing that? Sure, corporate India found some quick-fix solutions. Go diversified and yet remain core-competent, turn large and yet be smart-sized, go global and yet be local. These very oxymorons reflect the character of those corporate restructuring exercises.
The overall message from them is simple. One, do not restructure for the sake of restructuring. And two, even while you are restructuring with a rationale, do not forget the lessons of 1991-96.
The 15 canons of corporate surgery are the direct results of these lessons.
The above post is the foreword to Harish Kumar’s Canons of Corporate Surgery: 15 precious lessons from the past, a case-study-studded handy volume on corporate restructuring. This mini handbook is available both as an Amazon Kindle ebook (ASIN: BOONQAESYO) and as an Amazon CreateSpace print-to-order paperback (Title ID: 4952767). Also available as an ebook in all Smashwords formats and outlets.
20 January 2015