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PROCEDURE VS PERFORMANCE

02 May 2023

The corporate world is governed by procedures on how to handle various situations. The public sector in India prides itself on well-laid procedures. However, situations do occur, which need to be solved using common sense and totally relying only on procedures can cause unnecessary delays and loss.

To illustrate this, I would like to recollect an incident, which happened in the early 80’s when courier services were still not established. Organizations had to rely only on the postal services for sending documents. This could take 3 to 4 days to reach. Important documents were usually sent by registered post which took even more time.

So, if some important documents had to be sent urgently, organizations usually sent one of their own employees (act as a courier) to carry the documents and see that it reaches the concerned person/office in time. In my earlier job as a marketing engineer, I do remember several times when we had to send our bids(offers) by hand (through our own person) to ensure that it reaches the customer in time.

There was a public sector unit in Vizag, who had their head office in Bombay (now Mumbai). They regularly sent important documents, through a personal courier to their HO. This person (courier) would carry all these documents in a briefcase, which was specially given to him for that purpose.

Generally, the public sector employee, who usually forms the clerical cadre, is happy to act as a courier, as it is a break from the routine work. The courier gets to travel on the company’s account to Bombay and back. If the documents were very urgent/important, they were even allowed to fly which was considered a privilege.

Once, they had to send some urgent documents to their HO, but at that time the employee who usually acted as a courier was sick and was on leave undergoing treatment. So, the head of the department (HOD) selected another employee and informed him that he had to travel to Bombay urgently carrying some important documents. He was also informed, that he could travel by air, in case the train tickets were not available, but the documents had to reach in two days to HO.

The HOD had to organize a briefcase, as the original briefcase was with the regular employee who acted as a courier and was in the hospital under treatment. They located an old briefcase and gave it to the person selected to act as a courier. He took a long look at the briefcase, and told his boss (HOD) “Sir, I cannot be carrying such important documents to HO in an old and battered briefcase! Sorry, but please get me a new briefcase”. He took it as a personal insult to be seen carrying this old and battered briefcase, and he was probably right.

Now, a briefcase, of reputed makes like VIP cost around Rs.800 – 1000 in those days. You could even get one cheaper if you bought an unbranded briefcase from the local market. These briefcases could be purchased off the shelf from the local market.

But, nothing is ever so simple, in a public sector! The procedures had to be followed. So, the HOD consulted the managers in the purchase and finance departments. He was told “No Problem! Just send us a purchase requisition, duly signed by the GM” “How long will it take? We need it urgently” said the HOD. He was informed that it usually took about a month to send enquiries, get quotations, select the lowest price vendor, place the order and get the item.

“Oh! No! This is very urgent! I need it by tomorrow as I have to send some urgent documents HO” said the HOD “Can you not suggest a faster method?” The finance manager suggested that the HOD take up the matter with GM.    The HOD met the GM personally and appraised him the need for purchasing a briefcase urgently. After some deliberations, GM agreed with him and called the manager purchase and finance to his room.

Everyone agreed for the need, to purchase the briefcase, but they said that they could not do it without following the rules and regulations. GM called his executive assistant, who was a young MBA graduate, to study the SOP (rulebook) and to find out a method to purchase the briefcase immediately.

The young man was asked to stop all other work and go through the rule book. He accordingly, sat down at his desk and studied the book in detail, especially the rules regarding purchases. After a deep study of around two hours, he rushed into the GM’s room saying “Sir! I have found it! There is a provision under rule so and so, which says that the GM can authorize local purchase (up to certain limit) for meeting emergency situations.”

This good news was communicated to all the concerned managers, and the HOD was asked to move a note sheet and get it signed by the GM and manager purchase was asked to send a person from the purchase department to go to the local market and do a local purchase (within a certain limit). By this process, they managed to get a new briefcase and the courier could travel to HO carrying the urgent/important documents.

This story had a happy ending! To make up for the one-day delay, in procuring the briefcase, the courier was allowed to fly to Bombay carrying the new briefcase with the important documents.

The issue is that while the public sector company, finally made the correct decision to purchase the briefcase locally, they had to have multiple discussions and move note sheets, get approvals etc. Spending several man-hours of senior persons, and a delay of one complete day to do this simple act.

I was discussing this episode with my relative, who had retired after working in from a senior position in private industry. He recalled that in a similar situation, the office boy was told to take the car and purchase a briefcase from the local market. This whole episode was resolved in 30/40 minutes.

I appreciate the need for rules and regulations in any organization, but this obsession with procedure, should not end up obstructing smooth functioning. Executives should be allowed (and encouraged) to exercise their common sense and take decisions in the interest of the company, rather than only follow “procedures” even when he knows that this is going to cause delay and loss to the company.