Lessons from my career: Synthesising management theory with practice – Part 16

President Premadasa: ‘Mr Justin Dias told me, “You have to accept whatever the President suggests. You cannot say no.”

The Last Phase at Ceylon Ceramics

The previous episodes described my experiences at Ceylon Ceramics during the one-year contract period. It was both challenging and rewarding at the same time. The external environment was quite concerning, being responsible for the lives of 4,500 employees who were under stress caused by the threats of the southern rebels. One of our employees working on reforestation (because our brick and tile factories used substantial firewood, we had undertaken reforestation to compensate) was shot dead. At our Piliyandala factory, someone had lit a triangular firecracker in the post box opposite it, and our workers on the night shift were dead scared, presuming it was a bomb. I was up till early hours of the morning coordinating with the factory and the police station. Our transformer had to be protected with special arrangements with the Navy. Many of our executives received threatening letters. The Board informed me that, as the CEO, I was responsible for handling these threats and should not expect Board intervention. The whole institution was on edge, wondering what the next disruption would be. Despite the turbulent environment, I was able to make a significant impact and turn the Corporation into a well-managed one.

I learned how to handle subordinates who were much older and experienced. My multidisciplinary knowledge, with qualifications in Engineering, Accountancy, and Productivity Science, rounded out with an MBA, was a great advantage. Despite being less than 40 years old, they respected my superior knowledge. I also learned how to navigate from one crisis to another, and my training in Japan proved very useful, particularly with techniques like behaviour modelling and respecting all employees. No doubt I learned much from the subordinates as well, who had superior technical knowledge and much more experience in handling labour and unions than I did.

I had learned that communication is key, and for communication to be successful, it was paramount to uplift their skills and knowledge. The training opportunities I introduced were greatly appreciated by everyone. All this may not have been possible if I did not have an excellent Board of Directors with an excellent Chairperson in Mrs Beligammana.

Offers of Chairmanship

My relations with the Ministry were excellent, and my progress reporting and timely reports were greatly appreciated. The new President, Ranasinghe Premadasa, was settled into his position and wanted the best General Managers of Corporations to be appointed as Chairmen. Another and I from Institutions under the Ministry of Industries were nominated by the Ministry. We were interviewed by the then Minister of Industries Ranil Wickremasinghe. Immediately, the Minister informed me that he had already selected someone for the Chairmanship of the Ceylon Ceramics Corporation and therefore could only offer me the Chairmanship of the Ceylon Paper Corporation, which included the factory in Valaichenai, in the Eastern Province. I didn’t accept at once, knowing the risks of visiting the Eastern Province, which was significantly controlled by the Northern rebels. I just asked for one day to make a decision.

For one thing, ceramic was a far more interesting product than paper, and I needed to consult my wife. My wife did not hesitate. “Don’t accept the offer. The less risky post of General Manager at Ceramics would be better”, she said. I called Mr Vincent Panditha, then Secretary, the next day and declined. He then offered me the post of Chairman of Mineral Sands Corporation, which I promptly declined.

I had decided that if I did not get a good offer from an SOE or the private sector, I would start a consultancy practice. With my expertise in Japanese Management, I was often invited to deliver lectures. I would receive a pen or a tie with their logo as a gift, which was quite useless to me. Where could I wear a Sri Lanka Air Force tie or a gaudy shirt that doesn’t align with my taste? I could turn this into a money-making venture if I provided professional services in Japanese Management and productivity techniques.

I was now wrapping up my programmes at Ceylon Ceramics and preparing to quit at the end of my one-year contract. With the change of Government, many changes to the administrative structure has taken place. Mr Justin Dias was now the Secretary of the Ministry of Labour.

Interviewed by the President

I received a call from Mr Justin Dias, asking me to send him my CV urgently, and to be ready to be called by the President at any time for an interview. Apparently, the President wished to appoint young professionals to high posts. A few days after my CV was sent, Mr Justin Dias asked me to come to Sucharitha to meet the President. I had no idea where Sucharitha was, and the gracious Mr Dias picked me up and we went. The President had many CVs on his table, and he interviewed me very professionally.

He reviewed my qualifications and experience, and finally, he set the other CVs aside and said, “I want a young man with professional qualifications.” Looking up at Mr Dias, he asked how I would fit in as Chairman of the Employees’ Trust Fund Board (ETF). Mr Justin Dias gave his nod of approval. Still, he informed him that the Minister of Labour had already earmarked a person: a friend of his.

At this moment, the President flared up. The President inquired of him what his credentials were for the post and what his age was, and declared that people voted for him directly. He could not give excuses why some organisations would not perform. “I prefer a professionally qualified young man, so please make the necessary arrangements to appoint him.

I will not make appointments based on friendships”. My heart sank. I never expected to head a financial institution. My heart was firmly in industry, where I could savour the hum of machines, and with a lot of activity producing some tangible product. I did not utter a word, but my fate was sealed. On the way to meet the President, Mr Justin Dias told me, “You have to accept whatever the President suggests. You cannot say no”. When I went home and told my wife, she too agreed that I revelled in an industrial operation and may find this boring.

I slept that night feeling very depressed. Here I was, having received an appointment from the President himself, yet I was still unhappy. Anyone else would have accepted this with glee. I decided that if there was no other option, I would make the most of this opportunity and do something innovative. I needed to prove myself. I was young and at the beginning of my career, and I needed to succeed in this new environment. I was gradually adjusting to the new appointment.

I was studying the Act which created the ETF, asked for details, and studied the background of previous Chairmen. Hon Athulathmudali conceived this idea of the ETF while he was the Minister of Trade and Shipping. The first Chairman had been Mr Douglas Liyanage, and was succeeded by Mr Cedric De Silva.

I recalled the words of my father: “Never step into a government post before studying the powers and responsibilities specified in the Act. As a lawyer, my father was always considering the legal implications. Before I took up the position and afterwards too, I continued to study and understand the expectations of those who conceptualised the ETF. I took the time to understand the objectives and operations of the ETF, studying the annual reports, audit reports, and other relevant details. Finally, I realised that despite it being a non-industrial undertaking, I will enjoy my stay. My father said, “Your position will be defined by what you make of it”. He was right.

Mrs Beligammana, the Chairperson of Ceylon Ceramics, had resigned, and the new Chairman was appointed by the Minister. The culture had changed. A ceremony was organised to receive the new Chairman, an event I would never have encouraged. My first meeting with the Chairman was to hand over my letter of resignation, which he accepted with pleasure.

Final Acts at Ceylon Ceramics

Before I left the Ceylon Ceramics Corporation, I ensured that the annual accounts were ready to be submitted to the Auditor General and was keen that, after many years, we would receive a good report. Due to the production interruptions caused by the Southern rebellion, the cash flow of Ceylon Ceramics was very tight. I had to direct the Head of Finance to stop making EPF and ETF contributions, stating that we would pay later once the cash situation improved, although this would incur a penalty. Subsequently, after I assumed duties as the Chairman of the ETF, the Chief Accountant of Ceramics called me and complained that they had received a surcharge for not paying on time.

There was nothing I could do, because it was I who had instructed the relevant officers of the ETF to expedite the issuance of surcharge notices. Several months later, he also informed me that the Corporation had received a favourable report from the Auditor General and was quite elated that the new systems and culture we had implemented together had been successful. Even today, very few people understand what an audit opinion is, as I noticed from the COPE proceedings on YouTube recently.

Only minimal operations have the potential to yield a clear report. Still, a qualified report is acceptable as long as the qualifications are minor and can be explained. The bad reports are the adverse reports and disclaimers. Even most Board members of SOEs and Statutory Boards do not understand this, which is why their performance is often poor before COPE. It is the responsibility of the professionally qualified CEO to educate the Board and the employees. I am not sure the nomenclature of these reports have changed now.

In my last few days at the Ceramics Corporation, having understood that I am leaving the institution, a senior clerk came to my office and explained to me about a fund called EPF and another fund called ETF and explained that I am qualified to claim my ETF since I had not done so yet. He had filled out the form and asked me to sign. I did. I did not tell him that I would be going as the Chairman of the ETF Board. I was amused, but also very impressed. When I took up the position at ETF, I encouraged employers to establish a similar mechanism to support those who leave the institution.

Assessing the Organisation Culture of ETF

Once the appointment letter arrived, I decided to assess the culture of the place before officially taking my seat. One day, I called the ETF office and asked if I could obtain a claim application. The lady who answered, whom I thought was the receptionist, said that if I came to the ETF office, I could get one. My next question was that it is now lunchtime, and like in many Government offices, the counter would be closed. She answered very politely that this institution has “manussakama” (empathy) and even if the counter is closed, I could come to the 1st floor and receive a claim form. “We would not turn away anyone empty-handed,” she said. I was very impressed. Later, I found that it was a minor employee who had answered the phone as a relief receptionist when the receptionist was out at lunch. I was pleased that my initial impression of the culture was positive.

I started work at the ETF hoping to do wonders.

The next article will describe my initial period at ETF and the fun I had in making the place better. It will also include being sacked and reinstated by H.E., The President, because I refused to obey a government directive to invest a substantial amount at a low interest rate. I insisted that this is members’ money and the Government cannot use it at their will.

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.
He can be contacted through email at bizex.seminarsandconsulting@gmail.com)