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Foster's -- Australian for team-based management 

Chandan Dubey  
Mumbai, Nov 7: If you thought it's laconic advertising was off-beat, you should see how they run the company. For, besides the staple lager beer, Foster's India Limited is brewing a potent management practice: team-based management. What makes Foster's practice heady is that it isn't just dabbling with teams, it's actually putting its philosophy where its mouth is: from the top management to the frontline, the whole Foster's operation is managed by teams. ``The team-based management system is an expression of our faith in team work,'' says Foster's India Limited's managing director M Natarajan.

  • At the Aurangabad-based brewery for example-which was set up in 1998-there is no factory manager cracking the whip. Instead, the Rs 50-crore plant is run by a team of six managers, who are responsible for taking all strategic decisions to meeting daily targets.

  • The Aurangabad Management Team in turn reports to the India Management Team which manages the affairs of the company in India. The parent companyof Foster's India, Foster's Brewing Group Limited of Australia, is now experimenting with the concept for the very first time.

  • All employees at the brewery and the Mumbai-based head office are organised into functional teams and are devoid of formal designations and job descriptions.

  • Each of the 23 line supervisors and 42 operators at the brewery are divided into functional teams such as brewing, filtration and packaging. In all, the company is made up of seven dedicated teams, which take care of the day-to-day functioning of the company.

    Having dismantled multiple-management levels and trashed the burden of hierarchy, Foster's ready for more. ``We are working towards becoming a completely team-based organisation, away from bureaucratic, hierarchy-based set-ups. To that end, there is a long way to go. We should have done away with all the existing hierarchy-related barriers in the work place in the next three to four years,'' says Natarajan, who is part of Foster's India ManagementTeam.

    Coping without hierarchy
    Thanks to the unconventional management practice, the company has had to address a host of challenges the foremost having to do with issues pertaining to rewards and benefits. Although the company has yet to finetune aspects relating to rewards and incentives there is a constant effort to link these with performance-where performance is broadly viewed at the level of the company, the teams and individuals.

    To address the issues pertaining to rewards and incentives the company has works on Key Performance Objectives, or KPOs. Each team-and each individual employee-has a KPO document detailing key goals and objectives to be achieved during a particular year. These objectives are set out in the form of business results and process-related objectives. All teams are expected to list KPOs specific to them at the beginning of every year. The common KPOs which apply to the entire organisation like, safety, housekeeping etc too are listed once every year.

    Where individualKPOs are brought in for evaluation and assessment at the level of each team, the common KPOs of the Aurangabad plant is taken up by the India Management Team.

    ``Breaking established precedents and working patterns has possibly been the greatest challenge faced by us in the process of implementing the system,'' says Natarajan. ``We have had to face attitude-related problems ranging from resistance to skepticism, in the process of getting people to work in an open, boundary-less environment,'' he admits.

    Building a boundary-less brewery
    In a bid to iron out internal conflict and teething problems, the company has launched various internal initiatives from time to time. Early last year a campaign titled, `Leadership enterprise,' was launched with the intention of developing leadership values among employees. The idea was to develop strong foundations for team work to thrive on across the organisation. Hence individuals from various functions or channels such as sales, marketing, and manufacturingwere encouraged to develop programmes for their respective channels and involve fellow employees in the process of achieving desired results.

    Foster's India has also taken the help of detailed coaching and counselling sessions for its employees both at the team and individual levels. Other initiatives-like an open office and an informal work atmosphere at the brewery and the company head office-too have helped, says Natarajan. ``There is a constant effort on our part to make the teams increasingly self-directed and motivated,'' says Natarajan.

    The spoils? Although it is early days yet and the brand is not national yet, the management derives satisfaction from the number two position the Foster's brand has assumed in the premium lager beer segment of the West India market. The Aurangabad plant has been running on full capacity right from the third month of commencing production. The company has now trained its sights at the South India market which account for two thirds of beer sales in the country. ``Weare confident of addressing any increase in demand and expansion in market with assurance,'' says Natarajan.

    Besides, the company has been able to cut down on costs and wastage on the shopfloor on account of high levels of commitment and smoother working relationships, claims Natarajan.

    Further, thanks to the efforts of a strong sales and marketing team, the company is known for its marketing and creative strengths. Intangibles, you might dismiss. But at Foster's, they will drawl, it's teamwork which stands for success.

    Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

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