I was recently chatting with someone who retired from SAIL, and he talked about how BCG was hired to optimize costs and orchestrate a turnaround. It backfired in a funny way. In private companies, consultants’ favourite recommendation to improve profitability is to layoff people by truckloads. But they don’t have that luxury with government organizations and PSUs where job security is a given. So at SAIL, when BCG was asked to turn its fortunes around, they recommended VRS as the solution. You can’t fire, so incentivize employees to take voluntary retirement. People did retire, but not the ones they’d hoped would. Companies with unlimited job security are often run by a few hardworking officers and countless freeloaders. When the VRS option was floated, the honest ones decided enough is enough and took it up. But the freeloaders were already chilling and had no reason to retire. As a result, the senior group was primarily left with people who had never worked hard. I don’t know how much truth there is in this story, but if you look at SAIL’s performance over the last decade or so, it’s still waiting for a turnaround.
Care to mention some sources? Because all of this is just a story if you can't back it up
Nice one Yashraj Sharma , can't comment about SAIL in particular but I left for a corporate job after 12 years in a central Govt organization as a so called Class-I gazetted officer. So I can comment from my personal experience ... what I feel is that here 80/20 Pareto principle applies. 80% are freeloaders while 20% shoulder almost all the pressures. If given a fair chance many from the 20% will leave while most of the 80% would still continue (well that's why they joined the Govt job in the first place). The 80% anyways won't be able to survive the competitive world outside and they very well know that or simply don't care because they are enjoying in their current state. So what you heard may not be completely fictional and might have an element of truth to it 😊.
As ex-SAIL, I am intrigued on the sources of your interpretation of SAIL's performance. What parameters are these based on ?
The truth is: Great people leave first when incentives align wrong.
Yashraj Sharma Like many consultants, BCG came with preconceived solutions (Option 1 or Option 2). And, they might have laughed at SAIL's "unprofessionalism." I blame BCG for the mess. It might take a bit longer, but it always pays to get down in the trenches to carry out the due diligence before making a flashy presentation.
This is precisely why I find it hard to accept when fresh graduates work as consultants. When an experienced person opens his/her mouth, the wisdom is evident. If you need to learn, you should start at the grassroots level and work your way up, even in consulting. A wise worker in the USA once mentioned, they were paying for my hands, they could have had my brain for free. So many problems can be resolved simply by listening to the people at the bottom of the ladder. Now, that would be smart consulting.
"There's a little bit of SAIL in everybody's life" :-) The tagline from many years ago has remained with me!
Virtusa Consulting Services | XLRI PGDM (GM) Co'23 | Ex-SAIL | Operations Manager | NIT Raipur
2moI have worked in SAIL Bokaro Steel Plant for close to 8 years and I will say that the story is absolutely TRUE! But there are still Workaholics who did not choose the VRS scheme and continue to shoulder as many responsibilities and challenges coming their way.