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Always Escalate, so as not to Escalate

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Languages are such wonderful medium of human expression, because words can have such myriad meanings. There are many words which mean quite different things, taken in context. Unfortunately, here we are not talking about languages, but about project management. ??lways escalate, so as not to escalate??may sound, at first glance, like a meaningless play with words, but it is really not so, in our context. Check out these meanings: Escalate ??To increase in intensity or extent, or Escalate ??To become more serious, or be amplified.

Here, in this column, I mean to say that one must always escalate issues and problems to higher levels at the earliest opportunity, so as to avoid escalation of project cost and time. From my exposure to Project successes and failures, this is a very core issue in project management. Project cost escalation (time and cost are inextricably connected) is a very dreaded word in project management parlance. Not only dreaded, but also hated! But as long as there will be projects, there will remain the possibility of time/cost escalations. Unforeseen things happen, unprecedented situations develop, circumstances spin out of control, and these tend to delay projects and increase costs.

But in almost all cases, there are ways to manage and reduce the impact of these unforeseen things, provided we decide on a solution and act quickly to implement the solution. This is where we fail, because we do not highlight these events, rather we tend to push these below the proverbial carpet, as if they will vanish on their own. Why does this happen? There are two very interesting reasons, one hierarchical, and the other behavioural, and both act in tandem.

No organisation is absolutely flat, and there are levels. This is true for project teams also. In all cases, there will at least be three levels. There are operating people in the field, there is a manager who is responsible for leading and guiding the team, and then there will be so called ??op management?? which could be a CEO, or a Board, or a similar body assigned for review and/or oversight. Now, nascent problems in a project, such as insipient causes for delay, are likely to be known first to the operating level, who have their ??ars glued to the ground??

Think of it, who is most likely to get early signals of possible delays in designing of a building, or manufacturing of a critical component, or construction of a crucial structure, or a key regulatory approval ? who will know first, about a strike in a supplier?? factory, about an agitation at construction site, or about resignation of a key member of sub-contractors??team ? First to know will be the ??oot soldiers??of a project team. Now, this is very powerful information, with far-reaching consequences. However, sadly, officials at this level are not empowered to analyse the impact of such delays, leave alone evolve a solution. The knowledge to do so, and the authority to do so, lies one or two hierarchical levels higher up. And, more often than not, the information is not escalated upwards. Why not? That brings us to the second interesting reason.

This has to do more with psychology than project management per se. We all have an instinctive tendency to hush up bad news because we feel if we pass on these information, it will be taken as our failure. We try to resolve the problem at our level, and in the process waste precious time for intervention. What we do not realise, is that small adversities, when suppressed, may well become huge irreversible setbacks for a project, and that in these matters, speed of escalation and transparency always pay.

The sooner the bad news is known, the better it is, because the corrective actions can be taken immediately. But such rational thinking is often layered by the fear of immediate and short term outcomes of so-called failures. This is a cultural issue, this has to do more with our minds, than with our sense of logic. In larger project organisations, this phenomenon may also be driven by some nuances of internal politics. In any case, the project suffers. To get round this well-known issue, sometimes top management deploys informal and alternative channels to ensure flow of such information directly from field to boardroom. This is a crude workaround, because this kind of strategies undermine the formal organisation structures and dilutes accountability.

– SUMIT BANERJEE

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Concrete

Sambhv Steel Tubes is Now Certified as a Great Place to Work

This certification, valid from January 2025 to January 2026.

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Sambhv Steel Tubes Limited, one of the key manufacturers of electric resistance welded (“ERW”) steel pipes and structural tubes (hollow section) in India in terms of the installed capacity as of March 31, 2024 (Source: CRISIL Report) is pleased to announce that it has been officially certified as a “Great Place to Work® for 2025. 
This certification, valid from January 2025 to January 2026, is a testament to the company’s commitment to fostering a workplace environment built on trust, collaboration, innovation, and employee well-being. Sambhv Steel Tubes also invites talented professionals who share its values of trust, collaboration, and innovation to join its team and be part of its growth journey. The Great Place to Work® certification is a recognized benchmark for workplace excellence. It is awarded based on employee feedback and an evaluation of workplace practices. Achieving this certification underscores Sambhv Steel Tubes’ dedication to nurturing a culture where Sambhv Steel strives to ensure that employees feel valued, supported, and empowered to grow both personally and professionally 
The DRHP is available on the website of the Company at www.sambhv.com, SEBI at www.sebi.gov.in, websites of BSE Limited at www.bseindia.com and National Stock Exchange of India Limited at www.nseindia.com and the website of the book running lead managers, i.e. Nuvama Wealth Management Limited and Motilal Oswal Investment Advisors Limited at www.nuvama.com and www.motilaloswalgroup.com, respectively. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, please see the section entitled “Risk Factors” of the RHP, when filed. Potential investors should not rely on the DRHP for making any investment decision. This announcement does not constitute an offer of the Equity Shares for sale in any jurisdiction, including the United States, and the Equity Shares may not be offered or sold in the United States absent registration under the US Securities Act of 1933 or an exemption from registration. 
Any public offering of the Equity Shares to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements. However, the Equity Shares are not being offered or sold in the United States. CRISIL Market Intelligence & Analytics (CRISIL MI&A), a division of CRISIL Limited, provides independent research, consulting, risk solutions, and data & analytics to its clients. CRISIL MI&A operates independently of CRISIL’s other divisions and subsidiaries, including, CRISIL Ratings Limited.
Image Source: Sambhv Steel Tubes

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Cement Industry Key to Growth, Jobs, and Nation Building in Budget

Budget presents opportunities for cement sector in growth, jobs, and infra.

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The Cement Manufacturers’ Association (CMA) welcomes the Union Budget 2025-26 presented by the Honourable Finance Minister Nirmala Sitharaman. CMA Member Companies have been at the forefront of nation building by significantly contributing to infrastructure development, employment generation, and economic growth. CMA believes that the Budget presents a commendable vision for India’s development through strategic investments in people, economy, and innovation.
Commenting on the Budget, Neeraj Akhoury, President, Cement Manufacturers’ Association (CMA) and Managing Director, Shree Cement Limited, stated, “CMA hails the Union Budget, announced under the leadership of Prime Minister Narendra Modi for its comprehensive focus on holistic and inclusive development. The Budget reinforces a transformative journey towards building a resilient economy for advancing India’s development goals. The various initiatives announced by the Government balance people’s aspirations with the future requirements for the Country’s economic growth. The focus on increased investments on infrastructure across States amplifies opportunities and avenues for the growth of the Cement sector. We appreciate the sustained core focus on infrastructure and reiterate our commitment to being partners in Nation’s progress.<p></p>
<p>The increased spending on large scale housing and infrastructure projects will drive demand for construction materials allowing capacity expansion and promotion of innovation in sustainable practices. We are certain that despite challenges these measures will support the Cement Industry in achieving a consistent CAGR growth rate of more than 6 per cent of installed cement capacity in the present financial year. Policy reforms in Budget 2025-26 signal a reaffirmation of the Government’s intent to augment socio economic growth across core sectors.”
The Cement Industry plays a vital role in creating direct and indirect employment across various sectors, including manufacturing, logistics, and construction, thereby supporting millions of livelihoods. Additionally, the industry remains a key contributor to the Government exchequer through taxes, duties, and levies, strengthening the country’s fiscal framework.
Parth Jindal, Vice President, Cement Manufacturers’ Association (CMA) and Managing Director, JSW Cement Limited, said, “The Budget presented by Finance Minister Smt. Nirmala Sitharaman is a forward-looking roadmap that will play a pivotal role in shaping the future of India’s cement industry, in line with the country’s vision for a Viksit Bharat by 2047. It prioritizes growth in key sectors such as infrastructure, manufacturing, and technology. The increased investment in technology will accelerate advancements in green cement solutions, driving both sustainability and innovation within the industry. Notable allocations, including Rs 200 billion to foster innovation and Rs 1.5 billion in 50-year interest-free loans to states for capital expenditure on infrastructure development, are expected to significantly bolster growth in the core sectors, including cement sector.
He further added, “The Budget’s focus on a three-year pipeline of projects under the public-private partnership (PPP) model will incentivize private sector investment and catalyse a transformation in the infrastructure landscape. Additionally, the establishment of five National Centers of Excellence for skill development, as part of the ‘Make for India, Make for the World’ initiative, will ensure that India’s emerging workforce is well-equipped to meet the demands of a rapidly growing economy.”
In light of the recent Budget announcements, which prioritise infrastructure expansion and affordable housing, the Cement Industry is poised to leverage these opportunities by ensuring steady and sustained supplies of Cement to meet the Nation’s growing domestic market and infrastructure demand coupled with sustainable and innovative technologies. With a strong commitment to sustainability and efficiency, the Cement Industry will continue to drive India’s progress and economic resilience.

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GMDC Inks Long-Term Limestone Supply Deal With JK Cement

The agreement has been signed for supply of 250 million tonne.

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State-owned GMDC said it has entered into a long-term pact with JK Cement Ltd for the supply of limestone from its upcoming mine in Gujarat. 
The agreement has been signed for supply of 250 million tonnes of limestone over a period of 40 years from its upcoming Lakhpat Punrajpur Mine in Lakhpat Taluka of Kutch district in Gujarat. 
This agreement will help JK Cement Ltd in setting up an integrated mega-capacity cement plant, fostering industrial growth in the region.Kutch’s coastal proximity, improved access to domestic and international markets, and cost-efficient logistics position it as an ideal hub for cement production. 
The state-owned company has five operational lignite mines in Kutch, South Gujarat, and Bhavnagar region.          

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