Key Points from the Opening Speech of our Hon’ble Chairman, Mr. P.P. Reddy
When I established this company, I never imagined it would grow to such commendable heights. I owe this success to the support given by our Managing Director, Mr. PV Krishna Reddy, and all our employees. I wish to express my sincere heartfelt thanks to every one of you who has contributed to this phenomenal growth story. Together, we have elevated MEIL to a strong competitive position in the national market.
In an effort to recognize excellence, the management of MEIL has started a new tradition of giving cash awards to top performers. To continue this tradition more enthusiastically, I request all HODs to be more proactive in nominating their team members. My aim is to uphold the trust of the employees by making them believe that the management recognizes good performance. One suggestion from my side is that every employee should develop cross-functional expertise to enhance their individual contribution to the organization.
With regards to this year’s targets, all the department heads have promised high targets. I want all the HODs to take their targets seriously and work towards them diligently. Please do not accept failures or excuses at any cost.
I also want to point out that all employees should stay away from petty politics. We should keep in mind that by resorting to such tactics, we tend to, directly and indirectly, affect the brand image of the organization.
In the manufacturing industry, after we set up the production process to meet certain quality standards, we can rest assured that the facility will reap profits on a regular basis. However, the situation is not the same in the case of a service industry. We have to strive towards continuous improvement to meet the changing requirements of the customer. Only by continuously focusing on streamlining activities like planning, monitoring, and execution will we ensure that we overcome all hurdles in project management.
In the next few years, I want to see MEIL as a billion dollar global company. To achieve this goal, we should appreciate the importance of building the right brand image for MEIL. When we build brand image, it automatically helps in increasing organizational strengths, which will in turn help the company to bid for bigger and more prestigious projects.
We should always keep in mind that by commissioning projects on time, not only are we creating profits for MEIL, but also partnering in the nation’s development. MEIL executes many vital projects in the areas of irrigation, drinking water, and power, which meet the basic needs of the common man. So I request all employees not to forget this larger implication of all our work at MEIL and to strive towards the timely execution of projects.
Opening Speech of our Hon’ble Managing Director, Mr. PV Krishna Reddy
It is my pleasure to welcome one and all to the 2011-12 Annual Budget Meeting of MEIL. For the last five years our organization has maintained this tradition of having an annual budget meeting.
As you all are aware, this meeting is primarily to project the future of the organization for the fiscal year 2011 to 2012.
This meeting should not be just a competition of speaking skills with lots of good speeches and no substance. I want all the key persons of the organization to speak about
• what they have done,
• what they have learnt in the last year,
• what they are going to do in the forthcoming year.
This meeting is also an opportunity for all MEIL Team members to get to know each other better. As we grow, we are having projects and offices in geographically distant places. As in any large organization, this makes it difficult, if not impossible, for everyone to understand what everyone else does. I ask every one present here to spend the next few days here in getting a better picture of
• who we are,
• what we are doing,
• and where we are headed as a group.
In your day-to-day routine, you may not be getting enough opportunities to understand the big picture of MEIL. This meeting is your chance to really grasp the big picture so that each one of us can create a better synergy between our efforts and goals leading MEIL to greater heights.
Let us start by reviewing the good news.
MEIL has become a Pan-India organization. Business Outlook has ranked us at Number 49 in the list of privately held companies across all sectors in India. In the infrastructure space, we are Ranked number 3 and our order bookings are second in India amongst all infrastructure companies.
MEIL has expanded its operations to Overseas along with execution of projects in 13 different states of our country like UP, ASSAM, MADHYA PRADESH, etc.
The organization has also forayed into railways and we are trying to get a few projects of Railways, Ports. We are currently eyeing several Multi-national projects and Multi engagement deals across the world. We recently started our International Division in Delhi to carry out overseas operations. We are already in the process of bidding for several projects in the Middle East and in Africa.
We are taking various measures in the past few years to eliminate problems related to revenues for the coming 25 to 30 years. The organization has diversified into executing BOT Projects as a developer in various sectors like Power evacuation, Power Generation, Roads, Out-Of-Home Media, etc., which are expected to be the highest revenue earners for the organization. These projects are expected to be completed within a time phase of 2 to 3 years. This ensures that every year MEIL will have guaranteed revenue of more than 2000 Crores. Management is planning to boost this figure to 5000 Crores within the next 5 years. To fulfill and achieve all these goals, I need the support, sense of ownership and hard work of the MEIL Team.
We are entering into several new sectors which will challenge our capabilities in two areas –
 our capacity to master new technologies
 and our capacity to manage the risk inherent in all new technology.
We have undertaken the challenge of setting up a 50 MW Solar Thermal Power Plant which is the first of its kind in India.
The 525 MW Thermal Power Plant project is another challenging project we are taking up.
Our power evacuation projects of 750 kVA and 400 kVA power lines extending over 800 to 1000 kms, and being executed on an annuity basis, are also landmark projects.
On this occasion, I would like to recollect the days of foundation of this organization. Mr. PP Reddy, our esteemed Chairman, started MEIL with a few thousand rupees. At that time our dream was to achieve a turnover of Rs.100 crore. It took almost 12 to 13 years to reach this target. From 100 to 1000 crores, we took just two more years.
Last year we reached 3000 Crores. This year I am confident we will reach the magical figure of 5000 Crores – making us a billion dollar company.
Now I have a new dream! Can anyone guess what’s my new dream??
My new dream is for MEIL to be one of the Top Organisations in India, not in terms of financial turnover, but with a workforce of 1 Lakh employees, working in all sectors and all areas, working in India and in international locations. This one lakh should be direct employees. Presently we have 2500 to 3000 employees working in MEIL and we have more than 10,000 indirect employees. Every employee working for MEIL should be blessed with enormous wealth and job satisfaction. This is the biggest goal of MEIL management.
I have also set them new targets for the next year. Please note that all these targets are extremely realistic and achievable because I have based them on existing order books and NOT on any inflated projections of future orders. Since they are based on hard numbers and existing orders, I expect them to be taken up in all seriousness. These are not to be taken as suggestions but as mandates for all our work for the coming financial year.
Let me repeat, these are not SOFT targets. They are HARD non-negotiable targets and I expect everyone to treat them as such.
If there are any issues related these targets, we can discuss them and find solutions, but all this should not, and will not change these targets.
Another major point is with regards to the achievement of targets in projects. Whenever there is a major hurdle in the execution of a project, for example, due to land acquisition issues or some clearance issues, the HODs are promptly putting these projects aside in reporting their financial figures. I want to gently remind the Project Heads that even if a project is stuck due to some reasons, it continues to remain your responsibility and the target for that project remains on your account. Such a case cannot be an excuse for shortfall in reaching overall targets. You simply have to shift to higher gears on your other projects to make up for the shortfall in the project that is facing problems. Many times I have been given the impression that all sick projects belong to the management and that you will only handle the healthy projects. I don’t think this is the correct professional approach to achieving our targets.
Having said all this about targets, we will now review the statistical data of MEIL for the fiscal year 2010 to 2011. The following slides will show the targets projected by HOD’s and their achievements. Now let us take a look at each group and see how they have performed. In parallel, I will also tell what my targets are for them.
Closing Speech of Hon’ble Managing Director, Mr. PV Krishna Reddy, at Budget Meeting 2011
It is my pleasure to say a few words in closing the Annual Budget Meeting 2011-12. I promise to keep it short but I want to request your undivided attention to what I am going to say.
I hope you have enjoyed the last three days of activity. Apart from the meetings, I also hope you enjoyed the food, the booze, the friendship, the dancing and all other things.
But at the same time I hope that you will not forget what we came here for: to put together our collective minds and chalk out a roadmap for MEIL, for the next one year and for the many years to come.
“One lakh employees in MEIL”
That is the new dream for MEIL. This is the target I want everyone to carry back from this entire meeting. For any good leader, reaching one goal is only an excuse to set a much larger goal. Today I feel that we have almost reached our earlier goal of becoming a billion dollar company. I can see it happening in the near future. So it is time for a new and much bigger and much more ambitious goal – a goal large enough to stretch your imaginations to the next levels of performance.
“One lakh employees in MEIL”
Remember this as my most important message for this budget meet. If we are doing Rs.3000 Crore of business with about 3000 employees, what will be our target with one lakh employees? I want all my Directors and HODs to do this as homework and come back with their answers and plans. How many of you have the confidence that MEIL can reach this goal???
Coming back to the targets, before we talk about the numbers let me take you back to cricket and our world cup team. What would have happened if they had not set the goal of winning? What if the goal was to reach quarter finals only?
Let me ask you a simple question – If you were to write an exam, will anyone of you be satisfied and happy with 40% or 50%? I don’t think so. Every one of you will be trying for 100%. So why not here?
And one more thing, this is a special kind of exam where you can score even more than 100 %. You can give a projection of Rs.1000 crore but there is nothing to stop you from achieving Rs.1200 Crore, a performance of 120% on the target. Such scope potentially exists for every project of ours and also in every member of our MEIL team. I may not have selected you personally but I have seen you bio-data and I believe that each one of you has a similar potential to out-perform the targets and the skills to take MEIL to its goals.
I am happy to see that many projects were completed and commissioned. I am also extremely happy to note that on a few projects, we have even achieved 110% target fulfillment. This only shows us what potential we have if only we can put together our minds to overcome the temporary hurdles.
Hurdles are a part of business and of life. If there were no problems and no hurdles, everyone can execute mega projects. It is our ability to go past these hurdles that defines our caliber as a business organization. So whatever the hurdles may be – land acquisition, ROW issues, crop compensation, clearances – whatever they are – it is OUR responsibility to find solutions and carry on the projects. Let me repeat my favorite statement which I always follow-
Every problem has a solution
without a solution, there is no problem.
The famous philosopher Jiddu Krishnamurti said – In the question lies the answer.
I say – In the problem lies the solution.
So, once again I want to remind you that the non-performing projects continue to be your babies, and not the management’s.
Let me repeat again and again that this year’s targets are non-revisable and non-negotiable. What needs to be done to achieve these, that can be discussed with me at any length but the numbers are not negotiable.
In the last 3 days, I got a chance to know what’s on the minds of various key persons from different verticals and projects. I have talked to them when they were in a very free state of mind and wanted to share their deepest feelings. One of the most disturbing observation that came from this is that – everyone feels that MEIL is becoming fragmented – divided into small pieces and that these segments or sections are not pulling in the same direction. There is also a general feeling that there are more and more ego clashes and a lot of ego-based politics going on in our organization.
Individual is least important.
Team is more important.
Organization is MOST important.
Let us never forget that for even one second. In every action, we must think what’s good for MEIL is good for everyone. So if your division or group can help another group in getting a big order or big help in the execution of one of their projects, it has to be given top priority and done with the utmost seriousness. Just because it will NOT be added to your target figures should not mean that you will not help them. Because ultimately, it adds to the bottom line of the organization – MEIL. And that is the primary goal for all of us. On a personal note, I try to treat everyone as a member of the MEIL family. If you see the management spending a little more time with some members and listening to them a little more, it is only because they are performing at higher levels than the others, and this will hold true for everyone.
Another observation is that once people have been given a bigger post, they are becoming more defensive and more prone to inter-departmental politics. Please remember that we are all ultimately answerable to a single entity – MEIL – and in this there can be no politics.
Always remember that comparative performance reviews and internal competition is only an artificial stimulus for higher performance. We have to maintain the highest levels of synergy in ALL activities between ALL groups.
To all my young friends here – I hope you share the magnitude and grandness of what we have achieved as a group. Our work supplies water to more than 10 million Indians. We have laid more than 6 thousand kilometers of pipeline for the nation. In irrigation, we are irrigating about one crore acres of ayacut. We are truly and significantly – partnering in India’s march to become an economic superpower. And each one of you should feel and share this pride in working for MEIL. Feel the pride that comes with a great sense of satisfaction and achievement. I hope you will understand the excitement in this and learn to play a greater leadership role in the organization. I am sure that it is some of you who will complete the great projects of tomorrows MEIL – projects that will stand as testimony to your belief, excellence and drive. Great projects of great quality that people will continue to talk about for hundreds of years to come. For some of you my questioning may seem like cruel harassment but nothing could be farther from the truth. I want everyone to understand the questions that need to be asked for better performance. Only if we share our problems can we gain the knowledge for finding better solutions in the future. So, please kindly DO NOT take any of our remarks personally but only as a means of gaining greater understanding into the issues. What we are trying to do here is to treat each problem like a case study and learn from it.
I would conclude by repeating some of the key ideas from my opening remarks once again.
We have to cross the target of Rs.4500 crore this year.
We have to enter many new sectors and new verticals this year.
We must work towards the new goal of one lakh employees in MEIL
We expect many leaders to emerge from our team this year for the MEIL NextGen program.
The lack of leadership development has become a point of serious concern for me. The existing heads are not putting efforts towards growing leaders. Do not feel insecure in training leaders. Please note that unless you train your successors, you cannot be promoted to the next higher level. And from now on the management will use this as a hard rule when considering your professional growth. And if you grow new leaders, you yourself can do something much more exciting and new in the organization.
This year, apart from the financial targets, I want to add another parameter to measure your performance. How many leaders have you created? I will ask this question in next year’s review meeting and I expect hard numbers.
We have to create a leadership engine, a powerful and forceful mechanism for creating new leaders from our existing team members. And this engine should work continuously and non-stop.
I hope all the HODs and heads are listening to this. Order creation, business creation, wealth creation – these are topics we have been talking about. Now let us add a new goal to this list – Leader Creation.
During the presentations, several problems related to the organization as a whole – like HR issues, purchase delays, etc. etc – have been pointed out. These are ALL problems arising out of our rapid growth. We ARE aware of them and we are working on creating better systems but presently I request you to solve them in consultation with your HODs and project heads. But if that fails, feel free to contact me.
We will continue to create better working conditions for all our members whether in terms of financial benefits or others.
On a parallel track to the corporate turnover targets, we are also working on targets and plans to improve your health, wealth and safety.
Our Chairman, Mr. PP Reddy’s Awards will continue to be given out every year and we hope that this will be one of the stimulating factors for greater performance at all levels.
To end my talk, I request you to simply focus on your work and let the management take care of the rest.