Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Sunday 31 March 2019

RE: I WISH WELL FOR MINDTREE


Dear SNS,

I am glad you liked this blog

I am still hoping that one day ( soon ? ) , you will agree to launch :
for which L&T Infotech team and myself spent 6 months

with regards,

hcp


From: S.N.Subrahmanyan [mailto:sns@lntecc.com]
Sent: Monday, March 25, 2019 4:59 PM
To: Hemen Parekh
Cc: A M Naik
Subject: Re: I WISH WELL FOR MINDTREE

Dear Sir ,

Huge learning. Very touching. 

Regards
Sns 
Sent from my iPhone

On 25-Mar-2019, at 3:00 PM, Hemen Parekh <hcp@recruitguru.com> wrote:
FYI

From: Hemen Parekh [mailto:hcp@recruitguru.com]

Sent: Monday, March 25, 2019 2:59 PM







Subject: I WISH WELL FOR MINDTREE

Contours of  the  Independence

Today’s newspapers carry following reports regarding the L&T / Mindtree situation :
Extract :
“ I don’t know what the contours of the INDEPENDENCE are. It is difficult to make a ( judgement ) based on a press statement “, Natarajan told ET …”

Extract :
“ We have proven that companies can built on the platform of HIGH INTEGRITY and high level of CORPORATE GOVERNANCE and still deliver HIGH PERFORMANCE “ ( Shri Krisnakumar Natarajan , Chairman, Mindtree )

===================================================
I cannot agree more with Shri Natarajan

Independence / High Integrity / Corporate Governance , are the very foundation of a company’s CULTURE

As far as the foundation of Mindtree is concerned, no one knows it better than an insider like Shri Natarajan

It would be very difficult for me – being an outsider

But, when it comes to the Value Foundation of L&T is concerned, I was an insider for over 30 years, rising from a position of a Supervisor to the position of General Manager ( Powai ) > General Manager ( Strategic Planning )

Allow me to narrate a few “ personal examples “ :

=======================================================================
INDEPENDENCE
[ A ] 
Around 1977, L&T decided to get out of its manufacture of drilling equipment business, which employed some 300 + employees at its factory at Madh Island

At that time, as GM ( Powai ) , I was responsible for Industrial Relations and sole negotiator with Shiv Sena labour union ( Bharatiya Kamgar Sena – BKS )

Union leaders Naik and Nakhate came and argued that , it is L&T’s moral responsibility to absorb these surplus employees into other units of L&T . “ How can a company employing 7,000 people not be able to absorb 300 persons ? “

I said :
 
“ I will ensure that no one is retrenched if you undertake that these employees will accept whatever other jobs are offered to them , in whichever unit “

Union agreed

When I conveyed my understanding with the Union to my boss, Mr S R Subramaniam (SRS ) , he was furious

He said :
“ Parekh, I just asked our lawyers ( Gagrat ) to apply to Govt for factory closure and retrenchment. What now ?”

In the end , - and much against his own decision- SRS backed up my decision  !


[ B ]
During long-term “ Wages Agreement “ negotiations with the labour union, I reached a stalemate and the union representatives walked out of the meeting , declaring they will not negotiate with me anymore and will only negotiate with my boss SRS
When they approached SRS directly , he said :

“ Parekh represents the L&T Management and is empowered to commit on its behalf . He is the final authority in this matter . Go back , request him for a meeting . He is a reasonable guy “

Union leaders returned to the negotiating table after 3 weeks of boycott

[ C ]
When Union demanded that L&T head office in Ballard Estate should work for 5 days-a-week , in place of five and half days, Chairman Shri N M Desai ( NMD ) , asked me to present union justification and my response,  to a group of L&T directors

During the meeting, NMD had to leave the meeting for a few minutes – at which time , all other directors present told me that they are in favor of a 5 day week

When NMD returned , he said :
“ So , Parekh , what do you recommend ? “

I said :  We must reject Union demand and continue to work as now

NMD :

“ If that is what Parekh thinks is best for the Company, that is what he will tell the Union “

=======================================================================
INTEGRITY
[ A ]
During 1980, we were going through a very bad patch as far as labour agitation / militancy / go-slow / strikes etc was concerned

On the subject of “ Industrial Relations Climate at Powai “ , I was making a slide-show presentation to the Directors and other General Managers of L&T

When I reached the last slide, before showing it, I looked up to Chairman Shri Desai and said :

“ Sir , after I show you this last slide, I am not sure whether I would be able to keep my job “

NMD just smiled at me and said :

“ Parekh, go ahead and show the slide and we will soon find out “

That last slide read :
A MANAGEMENT GETS THE UNION IT DESERVES

I managed to keep my job !

[ B ]
I had hoped to conclude “ Bonus Negotiations “ with Union in 1984, by end April , but it went on for weeks, without reaching any agreement

I called Union leaders ( Naik and Nakhate ) in my cabin and said :

“ From 10th to 20th May , I am supposed to take my family for holidays and all train and hotel bookings have been done many weeks in advance. If I don’t go , I have to cancel all reservations and lose money .

But it would be misunderstood by you and the 7000 workers, if I leave the bonus negotiations half way at this stage “

N&N said :

“ Sir, upon return from holiday, do you promise to settle and disburse bonus by end May ? If yes, then go ahead “

I said :
I promise . But you too must promise that there will be no go-slow / agitation during my absence from Powai
Union leaders kept their promise and I kept my promise
Reason ?
I had the habit of not releasing a circular unless I got the assurance of the Union leaders in advance that its requirements will be implemented by the workers

[ C ]
Mr Holck Larsen ( HHL ) once recommended appointment of a young girl as an unskilled worker in Madh Bit Plant
She came from a very poor family and her father was jobless

She was interviewed and appointed , on condition that she submit her SSC pass certificate in 1 week

When, despite several reminders, she would not , an inquiry with her school revealed that she had not even appeared for her SSC exam

I asked the Personnel Manager to terminate her services and phoned HHL to convey my decision

His response ?
“ Let her go . We cannot change our norms “

And , on one Sunday , HHL ( as was his habit ) , turned up at the gate of Madh factory and was stopped at the gate by a security guard ( of a contract agency ), who did not recognize him. Guard said :

“  Andar jaana manna hai “

HHL tried to convince him that he belongs to L&T , but the guard would not listen ! HHL did not bother to call for the Shop Supervsor on duty – and turned back !

Next day HHL phone me to compliment me for hiring a proficient security agency


[ D ]

Vallabhan ( a shop foreman in Madh ) came to me and requested for a loan of Rs 2,000 from his Provident Fund
His father wanted to buy a plot of land in his native village

I explained to him that our PF Trust rules did not allow loans for purchase of land . He was in tears and asked me to speak with Shri Desai ( Chairman ), to intervene

When I explained the situation to Shri Desai, he said :
“ Parekh, we as trustees of PF , cannot break the rules and create a bad precedent . But if you think we need to help this man , I can loan him from my personal bank account “

=======================================================================
CORPORATE  GOVERNANCE
[ A ]
Around 1959, S K Toubro’s engineer son wanted to join L&T as a junior engineer

HHL and SKT discussed among themselves and decided :

To avoid nepotism in the company, no children of managers ( above designation of Dy General Managers and above ) can be appointed in the company

I believe, this rule still holds

Once when I was heading Central Personnel Department , one fresh engineer got interviewed and was sent an Appointment letter – everything strictly on merits of the boy

In his standard / printed green Application Form, he had clearly stated that his father was a Director of L&T ( appointed by LIC ). No one reads that last para declaration in fine prints !

This would have required passing a Special Resolution in AGM, which was no problem at all

But LIC nominated director did not want such a resolution in the AGM agenda . So , he resigned !


[ B ]
In early 60s , there were 2 / 3 years when L&T was going through very bad times , business wise

And there was also a talk that L&T managers were influencing colleagues to recruit/appoint , known persons, overlooking the merit criteria

It was then that HHL called a meeting of the senior officers and handed a circular which explained the bad situation we were going through

The last line of that circular read :

“  Blood may be thicker than water but remember, Red Ink is even thicker than blood

The message was loud and clear !

[ C ]
After very successful turn-around on the productivity front, NMD asked me to conduct seminars at many factories / offices of L&T all over India , to share the experience / methodology that I used at Powai to obtain a whole-hearted “ worker participation in management “

In these seminars, I used to stress that :

#   L&T belongs to the Nation

#   We , the employees, are just one of the Stake-holders

#   Even shareholders do not OWN the company

#   L&T Directors, certainly do not OWN the company


I used to show this slide to L&T employees participating at each location

In Bangalore meeting , Shri Desai ( Chairman ) dropped in , since he happened to be in Bangalore office on that day

When I showed that slide , he concurred with my views through some comments of his own  !



[ D ]
Even after HHL became Non Executive Chairman , as per earlier practice , his car was getting “ maintained “ at the Powai Service Station department of L&T

I was GM ( Powai ) at that time and the Transport Department reported to me

After one year, SRS ( my boss ) told me that , as per rules , Company cannot maintain the car of a non-executive director , ( something which I was not aware and certainly not HHL ) , and asked me :

“ How much money have you spent in past one year on maintenance of HHL’s car ? “

After inquiry , I said : About Rs 70,000 / -

I offered to destroy old records and create new internal records ( job tickets / purchase vouchers etc ) – in the name of any current Executive Director . A simple matter of few hours

When someone informed HHL about this lapse , next day he sent a cheque for Rs 70,000 / -from his personal bank account, drawn in favour of “ Larsen & Toubro Limited

When he received famous Magsaysay Award , he attributed that to the achievements of L&T , not himself  !

=====================================================================
I can keep writing for hours !

=================================================================
25  March  2019
     


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