Beyond Budget Boundaries: Leading with Values

How many times have you faced a budget crunch in your company?

Are you quick to implement cost-cutting measures to avoid expenditures, or do you take time to optimize operations?

How do you ensure employee morale stays strong with hiring freezes or losing critical talents?

We know the correct answers to the above, but sometimes, we become overcautious and make wrong calls due to our strong emotions rather than basing our decisions on core values. Let us understand this with a small story.

In 1939, Russi Mody joined Tata Steel as a shop floor trainee in Jamshedpur and became a Managing Director of the Company.

In 1965, Mody took charge of Tata's ferro-manganese plant, a 'sick child' through the need for production and profitability, and was bleeding and under tight budget issues.

To solve this problem, Mody chooses the human approach rather than any technical solution. He spoke to 450 employees in a group of 50 in his bungalow and identified a pattern.

Mody asked each employee, 'I understand the plant is not working well. What is the problem?'

At first, there was silence because their previous leaders had never met them personally in such a style. But as the conversation progressed, they slowly opened up.

Sir 'We need aprons, boots, and protective helmets."

Mody checked about these concerns with his managers. Managers thought this was a massive cost to take up under the cost pressure they were in and felt employees didn't understand the pathetic state the company was in and asking for more benefits.

After listening to both sides, Mody immediately ordered all those items, which cost a whopping 560K, and also introduced recreation and sports facilities. These moves proved to be a winner. The plant's Morale improved, production skyrocketing from 1,500 tons monthly to 3,500. Within two years, it had turned profitable by following Tata's values: 'Care and Compassion are needed in human( Employee or Customer) relationships.'

Each company has Core Values defined. Core values act as a guiding beacon in decision-making, offering a consistent moral framework and aligning choices with fundamental beliefs. In times of uncertainty,?don't strive hard to be a leader of success. Instead, be a leader of values, as?core values serve as a steadfast anchor, enabling thoughtful and principled decision-making to transform your company into a better workplace.