Features
Making changes in a difficult time
Lessons from my career: Synthesising management theory with practice – Part 15
The previous episode detailed my first experiences as General Manager of the Ceylon Ceramics Corporation, the changes I introduced, and how I faced difficult situations arising from the ongoing insurgency at that time.
Modifying the logo
One of the first things brought to my attention by many of the officers was that the Corporation’s logo was faulty. According to traditional beliefs, the logo should be closed at the bottom. “Our logo has a hole at the bottom, and that is why all the money goes down the hole”, they said. Although I subscribed to the belief that good management was the more critical aspect to reducing waste and generating profits, I decided to give in and make these people happy.
I commissioned an advertising agency that produced several creative logos, but the Board was not satisfied with any of them. Finally, an artistic Board member made a small adjustment and plugged “the hole”. This was adopted as the standard thereafter. The Corporation started making profits, and all the credit went to the “hole” that was plugged. Very few gave me credit for the restructuring I did, including many wasteful “holes” that I plugged. The lesson I learnt was that traditional beliefs should not be dismissed but rather incorporated into strategies and work culture. Modern management techniques should be synthesized with conventional methods to make changes more acceptable.
A New Quality and a Customer-Oriented Culture
Whenever people I know or those introduced to me find out that I am the GM of Ceylon Ceramics Corporation, about half of them have a quality complaint. I discussed this at a meeting, but the answer was that they receive only a tiny percentage of complaints. If it is a factory issue, a replacement is made. I countered that all unhappy customers may not complain, but it didn’t sink in. It was mentioned that they are duty-bound to attend to actual written complaints only, and nothing more. The attitude was that we actually do our customers a great favour by making available sanitary ware and tableware at affordable prices.
The Colpetty showroom was a very popular place in that era. We also stocked Noritake products and products from other suppliers. It was the most popular place for wedding gifts. The best parking slots in the building, which housed the Head Office and the Colpetty showroom, were occupied by the Chairman and me. I instructed my driver to take the car further down the road whenever there was a shortage of parking for customers. This was a departure from the belief that the Chainman and GM were more important than the customer. Gradually, the customer-oriented culture slowly but steadily did gain ground.
Reducing Working Capital
The accounting reports showed a considerable capital, and I started investigating. At the same time, the production heads would complain that despite having a good production record for the month, some months indicated a loss or a minimal profit. The Profit and Loss statement showed that all the good work done by the factories was nullified by the heavy overdraft interest we paid the banks. Investigating further, I discovered that many unprofitable retail shops were closed, but their bank accounts remained active. All these dormant accounts had cash hidden away. If transferred it to the main account, a considerable saving on the overdraft interest could be made.
Even the closure of the shops was questionable because my investigations showed that they were making a “contribution” in accounting jargon but showed a loss after apportioning a huge portion of fixed costs. The shops were closed on the recommendation of a foreign expert, and the staff were brought to the Head Office, resulting in the loss of contributions that would have added to the income and many of the fixed overheads remaining as they were. There was no way of returning to the original situation.
It was a bad decision, but it was accepted by management because it came from a foreign expert. The moral of the story is not to ignore the advice of a foreign expert but rather to always validate such advice before taking any action.
All the obsolete accounts were closed, and the funds remaining were transferred to the main account. Next was the clearing of the stores and disposing of all the non-moving and obsolete stocks. This was expedited by the fact that our sales were very slow due to the diesel shortage during the insurgency, and dealers could not collect their requirements from the factory stores because of the lack of diesel. We were desperate. There were no funds to pay the salaries of the 4,500 employees, who were spread across the country.
The clearing of the stores at a discount was the only way out. What we found in the stores was very interesting. There was obviously no system in place to reduce prices and dispose of slow-moving stocks. We found a large stock of plates produced to commemorate the ascendancy to the Executive Presidency by J R Jayewardene. What was unsold remained in the store for several years. There was no chance of selling these plates even for a few Rupees at the height of the rebellion, and we dared not throw them away or destroy them because Jayewardene was still the executive President.
The sale was initially very successful, with queues along Galle Road to get in. However, a poster mysteriously appeared ordering that the sale be stopped immediately. My staff were scared, and we stopped the sale. However, we did pursue the system of rules for disposal.
The Imminent Disaster by stopping a lucrative export order
Wrong costing methods continued to create problems and lose opportunities. We were executing a lucrative export order for hand-painted plates for the Australian market initiated by an artistic Sri Lankan entrepreneur. He now has multiple stores in Colombo selling unique products. Halfway through the execution of the order, someone informed the Chairman that the order would result in a loss due to the high amount of overtime used. A discussion ensued, and I was against cancelling the order at that stage. I reviewed the figures and explained that the overtime cost per hour is significantly lower because the overheads, EPF, and ETF costs have already been factored in the normal hours.
My calculations revealed a profit rather than a loss, and this was finally accepted. It was another example of poor management and lack of knowledge. My qualifications in engineering, accountancy, and management services, followed by an MBA, paid off. I always recommend that the CEO should be a multidisciplinary person. Years later, serving on many Boards of Directors, I found that the subject-specific CEO often lacked knowledge of Human Resource Management, Marketing, or Accountancy and merely brings a proposal or recommendation from the Head of the particular division to the Board even without understanding the subject. Sometimes, I pick holes in the argument, and the CEO says. “I don’t know this subject, but this is what my Division Head recommended”. The CEO should be above all his subordinates unless it is a highly specialized field.
The Training Culture
Training in management and procedures had never been a forte of the Corporation. The filing system was inadequate, and procedures were often not followed, resulting in numerous lapses, mistakes, and delays. I decided to tackle this on two fronts. One was to give a briefing on a few management aspects at every regular meeting. The other was sending the staff to tailored programmes and public seminars.
One such programme was for all the office staff, which not only transformed the systems and procedures but also transformed their attitudes. It was much easier now to introduce new systems and procedures. The staff raved over the programme and thanked me profusely for providing them with this opportunity. In fact, many years later, after I had left the Corporation and was involved in an assignment on Financial Incentive schemes, I called one of the Accounts clerks for some information on the Corporation’s incentive scheme. I said that there was no hurry but to send the information to my Havelock Road residence whenever a corporation vehicle was travelling from the Piliyandala main office to Colombo. Lo and behold, he arrived at my house within one hour, and the reason was that they had learned so much from the special programme; he decided that my request had to be fulfilled without delay. I was touched.
The Rehabilitation of the Eastern Province
By now, Chief Minister Varatharajah Perumal was in control of the Eastern Province, and he was cooperating with the government. We were invited by a UN agency to a meeting regarding the rebuilding of the Province. We were asked to produce a large number of roofing tiles. We had a separate Brick and Tile Division (which is now the Ceylon Ceramics Corporation, while all the other plants were privatized as Lanka Ceramics). However, the capacity had gradually decreased because, with the declining demand for roofing tiles, the capacity was deliberately toned down. For the rehabilitation exercise, a large number of roofing tiles were required, and it was impossible to meet this demand overnight.
There was another meeting at the Prime Minister’s Office on Flower Road, where several dignitaries were in attendance. One item on the agenda was roofing tiles. The army commander asked me to send a senior official to Trincomalee to assess the requirements. He would provide a special helicopter and all the logistics for my officer’s visit. I returned to the office and inquired of the DGM (Brick and Tile), who flatly refused, as I had suspected. Trincomalee was still considered a “war zone” by most laymen and he was not ready to risk his life. I asked around, and even the second-rung officers refused. I was in a dilemma. While I empathised with my staff, I might run the risk of being seen as non-cooperative.
The following day, the Army Commander called me, and the conversation went like this:
Army Commander (AC): “Have you found someone to go to Trinco”
GM (CCC): “Unfortunately, no, because all my DGMs and the second rung are not convinced that it is safe. They are refusing to go”
AC: “Don’t ask people to volunteer. Just order someone to undertake this trip.”
GM (CCC): “Unfortunately, I don’t have the authority to give an order against their will.”
AC: “I just cannot believe this, nor can I accept this. When I give a command TURN LEFT, 30,000 soldiers turn left, but you, Mr Wijesinha, cannot make even one man undertake this trip”, and he hung up.
I never wished I had such powers. My management style was always more consultative, participative, and consensus-based decision-making. Having learnt that in Japan in 1980, I always treat people with respect and have experienced the benefits. Obviously, the military cannot adopt that style, and I accept and respect their commanding style.
The next episode will cover my final phase of serving the Ceylon Ceramics Corporation and then my appointment as Chairman of the Employees’ Trust Fund Board.
by Sunil G Wijesinha ✍️
(Consultant on Productivity and Japanese Management Techniques
Retired Chairman/Director of several Listed and Unlisted companies.
Awardee of the APO Regional Award for promoting Productivity in the Asia and Pacific Region Recipient of the “Order of the Rising Sun, Gold and Silver Rays” from the Government of Japan.Email: bizex.seminarsandconsulting@gmail.com)
Features
Trump’s tariffs, AKD’s gazette and Sri Lanka’s diplomatic slumber
“We are rather respectable in Colombo. We go to bed fairly early, and we remain there till morning. “
According to Sri Lanka’s diplomatic folklore, the late S.W. R. D. Bandaranaike uttered these words while explaining the reasons for Sri Lanka’s abstention on the UN resolution condemning the Soviet invasion of Hungary. Apparently, SWRD’s foreign ministry officials were asleep at home when the diplomatic cable seeking instructions was received from New York. In those days, there were no cell phones, Internet, or even fax or telex machines. The diplomatic cables were sent through post offices. Decoding them was a slow and time-consuming process. Thus, the government could not provide appropriate instructions to our mission in New York in time, and the Sri Lankan delegation abstained on that sensitive UN vote.
Sri Lanka’s Absence from Section 301 Consultations
But then, how does one explain Sri Lanka’s absence from the crucial bilateral consultation held in Washington by the Office of the United States Trade Representative (USTR) during March-April on “Forced Labour” under the Section 301 of the US Trade Act of 1974? Didn’t our foreign and trade ministries send appropriate instructions to Washington in time? Even if the instructions from the foreign ministry were transmitted to our embassy in Washington by pigeon carriers, there was enough time for Sri Lanka to participate in those meetings.
In March, the USTR initiated these 301 investigations on 60 trading partners, and invited all of them for confidential consultations. Out of the 60, 46 participated in these consultations. Sri Lanka was not one of them. Other countries that didn’t participate in these consultations included China, Russia, and Venezuela! In addition to that, the Section 301 Committee conducted a public hearing with interested parties on April 28 and 29. Washington-based diplomats, representatives from few trade ministries as well as representatives from many foreign trade associations and chambers participated in these hearings. Sri Lanka was once again conspicuously absent.
As a result, when the USTR published the proposed forced labour tariffs on June 2nd, Sri Lanka ended up with a 12.5% duty. Pakistani and Indonesian diplomats participated in these consultations and took appropriate follow-up measures, and managed to enter the 10% duty category. As even a threat of a modest tariff hike could disrupt supply chains and reduce competitiveness, particularly in an industry such as garments, I discussed this issue on 15 June and underscored the importance of Sri Lanka’s participation at the next hearing, which was scheduled to be held from July 7th .
Awakening from Diplomatic Slumber and AKD’s Gazette
Fortunately, Sri Lanka finally awoke from weeks of diplomatic slumber, and Ambassador Mahinda Samarasinghe participated in the public hearing on 9 July, and promised, “…. · We have agreed to the text in our negotiations with the USTR on forced labour, …. The gazette as we speak is being printed and I’m getting the gazette tomorrow morning, and the gazette will be shared with USTR as I get it“.
As promised, President Anura Kumara Dissanayake issued a gazette on 10 July banning the imports of goods produced by forced labour. These new regulations are very similar to what Pakistan and Indonesia enacted in April, after their consultations with USTR in March. Why couldn’t we do it in April? Why did we wait till the very last minute?
Challenges ahead
“War is too important to be left to generals alone,” is a famous saying attributed to former French Premier Georges Clemenceau. Similarly, monitoring our main markets is too important to be left to diplomats alone. The United States is the largest single-country market for Sri Lanka. Therefore, Sri Lankan trade chambers and associations should become more proactive in these markets and participate in these events. For example, the chairman of the Pakistani apparel exporters association participated in the April hearings. Similarly, representatives from the Indian Agricultural and Processed Food Products Export Development Authority, the Federation of Indian Chambers of Commerce and Industry, the Confederation of Indian Industry, and Reliance Industries also participated in July hearings. At an event where each speaker is given only five minutes (strictly enforced), having a number of speakers from a country is an advantage. The presence of industry representatives in these kinds of events also help them understand the market dynamics and the future challenges. This is important, particularly because there will be many more challenges with Trump’s tariffs.
With the gazette issued on 10 July, Sri Lanka has imposed a prohibition on the importation of goods produced with forced labour. Now, the challenge will be to effectively enforce the prohibition. And what are the goods produced with forced labour? The USTR list only focuses on aluminum, cotton, electronics, lithium-ion batteries, rice, and tobacco. However, according to the U.S. Department of Labour, the list is much longer. Hence, this list may change continuously during the next two years and tariffs may fluctuate once again.
So, this is definitely not the time to slumber.
(The writer, a retired public servant, can be reached at senadhiragomi@gmail.com)
by Gomi Senadhira ✍️
Features
Tales of Mystery and Suspense 10 Casino for Sale
After the overwhelming grotesquerie of J K Rowling’s latest Cormoran Strike novel (written, I should have noted, as the others were, under the pseudonym Robert Galbraith), I thought I should return to the world of fun, and also a much shorter description since this thriller moves quickly without the layers of detail that Rowling engages in.
I then move to the second comic thriller by Caryl Brahms and S J Simon. This, their second story to feature Vladimir Stroganoff and Adam Quill, was Casino for Sale, as lunatic a romp as the first, though without the emphasis on the ballet that characterized A Bullet in the Ballet.
This one begins with the impresario Stroganoff buying a casino cheap from Baron Sam de Rabinovich, only to find that it was a rundown place, not the grand casino of La Bazouche, a resort on the Frenc+h Riviera, as he had initially thought. The grand one belonged to Lord Buttonhooke, and Stroganoff could not compete, until he thought of bringing the Ballet Stroganoff to the casino – which of course leads to Buttonhooke deciding to have ballet performances in his Casino too.
Stroganoff invites Quill to visit him, which Quill decides to do since he has left Scotland Yard, having come into a legacy. No one believes this, and he has to face questions as to what he did to have been sacked, with sympathy for having been found out.
The day he arrives in La Bazouche there is a murder, of a vitriolic critic called Citrolo, in Stroganoff’s office. He had been going to write a damning review of the opening night of the ballet and Stroganoff, when he realizes Citrolo cannot be swayed, drugs him and dictates the review himself to the papers. He leaves Citrolo sleeping and finds him shot the next morning, whereupon he decides to muddy the waters and leave a suicide note and lots of other murder weapons. So much overkill, as it were, of course ensures that he is arrested.
But the excitable French detective who makes the arrest follows up his suggestion that Buttonhooke was also involved, and so the two casino owners find themselves in cells next door to each other, with the detective Gustave quite happy to provide creature comforts for a fee.
Quill decides he must investigate, and finds Gustave most cooperative, since he has a laid back attitude to work. So it is Quill that finds a notebook which makes it clear Citrolo is an accomplished blackmailer, and that there are lots of possible murderers, including Stroganoff’s croupier, who was crooked, Rabinovich, who was now working for Buttonhooke, a confidence trickster called Kurt Kukumber, whose prospectus for a dud gold mine was found in the office and Prince Alexis Artishok who was engaged in a deal to buy diamonds from the ballerina Dyra Dyrakova.
Stroganoff had been trying to get Dyrakova to dance for him, but having done so previously she had refused. But then to Stroganoff’s chagrin she agreed to dance for Buttonhooke. The clearly crooked Artishok had told Buttonhooke’s mistress Sadie Souse, who was not very bright, that Dyrakova possessed diamonds she was willing to sell cheap, and Sadie was determined to have them.
Quill meanwhile finds out that there was a secret passage to Stroganoff’s office, the obvious solution to what had begun as a locked room mystery, and that this was known by almost everyone apart from Stroganoff himself. And then Rabinovich is murdered, just after Gustave had released his two original suspects, leading him to blame Quill for having insisted on that and thus allowing them to kill again.
Soon afterwards Dyrakova arrives, and the town is full of posters announcing that she will appear in the casinos, elaborate posters for either one, since Stroganoff is determined that she will dance for him, and if she does not come willingly, he has devised a scheme to make her do so unwillingly. So, though Buttonhooke has her taken off to his yacht immediately she arrives at the station, Quill along with Arenskaya gets her into a launch and to Stroganoff’s casino, where she performs to tumultuous applause, not knowing for whom she is dancing.
When Quill asked her about the diamonds, she said she had sold them long ago, and that gave Quill the solution to the mystery. Rabinovich had known about this, and Artishok had killed him to prevent Sadie learning it from him, he had killed Citrolo who had recognized him for an accomplished card sharper, not a Russian prince at all. But before he is arrested, he gets away in a boat, and the police launch that pursues him is on the point of catching him up when it runs out of petrol.
Again, lots of excitement, and entertaining references – Gustave grows marrows – and if not quite as brilliant as its predecessor, Casino was certainly a delightful read.
Features
The challenge of being positive about SAARC
It was a few years back that a former President of Sri Lanka took it on himself to pronounce SAARC ‘dead’. Since then there have been other sections of Sri Lankan opinion that have joined the critics of SAARC and taken the solemn stance that SAARC has indeed died what may be called a natural death.
Their fatalism is understandable. SAARC has failed to meet at heads of government or state level for the past several years to take the SAARC process notably forward. Regional cooperation has more or less been only an appealing idea. No substantive concrete projects have taken off to make the idea a hard reality. ‘Inner paralysis’ seems to be SAARC’s lot. Hence the fatalism in these circles.
However, being one of the worst cash-strapped regions of the world and a teemingly populated one with people virtually left to their devices, what choices do the ‘SAARC Eight’ have other than to try their best to band together and continue with their cooperation efforts, however small they may be?
There is no escaping the mounting debt trap for many of these countries and bankrupt Sri Lanka is a glaring example, but ‘throwing in the towel’ and abandoning themselves entirely to the diktats of the strongest economies and their agencies will prove a ‘living death’ for many countries in the SAARC fold.
The gains may be meagre but giving-up on SAARC cooperation in full would prove self-defeating for the organization and South Asia. Right now, the collective intention ought to be to salvage what the region could from the tenuous cooperative efforts. Moreover, such initiatives could go some distance to generate a degree of goodwill among the Eight and help in sustaining a dialogue process.
Given this backdrop it proved ‘a stich in time’ for the Regional Centre for Strategic Studies (RCSS), Colombo, to recently host the SAARC Secretary General Ambassador Md. Golam Sarwar to a round table discussion on the unifying potential of SAARC and its future possibilities, besides other related issue areas.
Held on June 24th and moderated by RCSS Executive Director and former ambassador Ravinatha Aryasinha, the forum brought together a vibrant, wide ranging audience comprising academicians, diplomats, senior public servants, civil society activists and many others. Following the presentation by Ambassador Golam Sarwar titled, ‘Reigniting SAARC: Achievements, Challenges and the Way Ahead’, a lively Q&A followed.
The above forum could be described as an act of lighting the proverbial ‘candle’ rather than ‘cursing the darkness.’ It surely is a ‘darkness’ that could be seen as daunting considering that the region’s pivotal powers, India and Pakistan, are failing to act in a spirit of accord but are engaged in bitter finger-pointing on a number of questions of vital importance to SAARC.
On the other hand, what is the rest of the region doing to bring the above sides together? It is disappointing that to date the rest of SAARC has failed to launch a major diplomatic drive to bring peace between the feuding regional heavyweights. It needs to act without delay and establish its earnestness and this effort would need to prove SAARC’s staying power in the unfolding months and even years.
In assessing SAARC’s seeming failure local opinion in particular has failed to factor in what could be described as weak leadership. Since Sheikh Mujibur Rahman of Bangladesh, the founding father of SAARC, the region has failed to produce a visionary leader who could advance the SAARC cause with charisma and drive.
Among other reasons, weak leadership accounts considerably for the faltering and stuttering status, as it were, of SAARC. Badly needed are leaders who could go the extra mile, think less of narrow national interests and work diligently towards the collective well being of the region but SAARC’s millions of ordinary people have been made to wait in vain for leaders of such stature. Instead, they have been burdened with politicians who seem to be relishing the apparently moribund state of SAARC.
Looking back, it could be said that it was the dynamic leadership factor that led to the launching of the Non-Aligned Movement and for its sustenance for a few decades. True, it could be seen in some quarters that NAM is no more, but as in the case of SAARC, the former too has been unfortunate to be burdened over the years with politicians who lack the vision and drive to unflaggingly advance the fortunes of the South. NAM and SAARC lack the dynamism and vision of leaders of the stature of Jawaharlal Nehru, for example, to give them the required guidance and intellectual depth.
The reasons are complex for there not being among us currently political leaders with the vision and the steadfast commitment to advance the legitimate interests of the South. However, it could be stated with conviction that the majority of Southern leaders have too easily caved in to the demands of the global North and its financial agencies.
These leaders have failed to see, for instance, that the largely market economy oriented Northern governments would not view with favour a centrist economic model that attaches priority to the interests of the dis-empowered publics of the South. This realization ought to have dawned on the current government in Sri Lanka, for instance, some while ago but it has no choice but to abide by IMF dictates since economic survival at present is unthinkable without the latter’s succour.
Accordingly for SAARC this should be the time for some soul-searching. Priority needs to be attached to ending the feuding between India and Pakistan since at present the material fortunes of the region hinge largely on these regional giants giving peaceful relations among them a try. This is no easy challenge to meet but some daring, visionary diplomacy needs to take hold among the rest of SAARC.
There is some sense in SAARC bringing the peoples of the region together through programs that address their best collective interests. A meeting of minds among SAARC nations could enable SAARC and its agencies to build a region-wide people’s movement for progressive political and economic change that could in turn lead to the region’s political leaders sensitizing themselves more to the neglected needs of their publics.
However, the time is ‘now’ for the initiation of these progressive changes and the voice of SAARC well wishers would need to drown out those of their critics.
-
Features6 days agoPrison riots and politics: NPP’s biggest challenge and Sri Lanka’s biggest opportunity
-
Editorial7 days agoWhat’s the world coming to?
-
Features3 days agoDirty Money
-
Editorial6 days agoMuch ado about crime: Fish or cut bait
-
Features6 days agoMore on Saudi Arabia: ARAMCO and beyond
-
Latest News3 days agoOil prices hit 1-month high as US-Iran attacks dim Strait of Hormuz outlook
-
Midweek Review3 days agoThe sordid tale of theft and tragedy at Finance Ministry
-
Features5 days agoDeepening Democracy – Constitutions and Constitutionalism

