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This is an archive article published on April 26, 2011
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Opinion Learn by doing

We need to focus on improving tangible processes,rather than pore over numbers on paper.

April 26, 2011 01:38 AM IST First published on: Apr 26, 2011 at 01:38 AM IST

Will the economy grow at 8.5 per cent or 9.5 per cent in the Twelfth Plan? It depends on some external factors,like the condition of the global economy. But mostly,it depends on the pace of implementation within the country: implementation of power and infrastructure projects; implementation of new strategies to grow manufacturing; implementation of social sector programmes,etc. Therefore,the question should not be how much the economy will grow,but how it can be made to grow. And the focus should not be on GDP growth,which is the outcome,but the rate of improvement in implementation,its driver.

This was the consensus of civil society organisations,business associations,and citizens at large,in their extensive consultations with the Planning Commission to prepare the approach to the Twelfth Five-Year Plan. In the words of a business leader,summarising the feedback of a multi-sectoral consultation on the required approach: “If the Plan does not put implementation front and centre,we will not take the rest of the Plan seriously.”

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Though implementation is the key to achieving better numbers,it is generally not easy to get policy-makers and planners to focus on it. There is a fascination with the tracking of numbers. Prof Dorit,a legendary teacher of operations management at the Harvard Business School would exhort every new class: “Gentlemen,make it; don’t just keep track of it!” He lost the battle. Harvard business graduates,and graduates of the best Indian business schools too (many of whom are engineering graduates),are not interested in manufacturing,and making real things. They aspire for opportunities to make money as investment bankers and consultants. Because there is more money and glamour in the business of tracking numbers,analysing numbers,talking about numbers,investing in numbers (and derivatives of numbers),and betting on numbers.

Organisations and countries that implement more effectively get more bang for the buck. They need less resources to get results. Moreover,in a competitive world,the only sustainable source of competitive advantage is the ability of an organisation or country to learn,change,and improve faster than all potential competition. Those ahead will be surpassed by those who were behind but improved and implemented faster. China has surpassed India. Now,in several industries,Malaysia,Vietnam,and even Bangladesh are catching up with India. As in industry,so in the social sector — many developing countries are improving their social indicators faster than India.

Implementation is about improving the way things are done. Therefore it is about process. Many policy-makers in India seem to consider attention to process a waste of time. They say they would rather focus on monitoring results. They miss the fundamental point: good results are the outcome of good process. This is a lesson the Japanese taught the world when they built their industries into world-beaters in quality and cost by concentrating on process improvement throughout their enterprises. Then others learned too. Total Quality Management and Six Sigma,which are ways for improving processes,are now being used by private sector and government organisations in many countries. Indian auto parts companies who have adopted this approach have become world-class producers. It is especially noteworthy that some tribal villages in Jharkhand,who were taught these techniques,have rapidly improved their agricultural productivity,infrastructure,and quality of livelihood. The point is that implementation and rapid improvement must be the approach for India to improve the lives of people,competitiveness of its enterprises,and growth of its GDP.

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Processes for implementation must be designed into policies and plans. Otherwise policies and plans remain intentions. When many stakeholders are affected by policies,these stakeholders must be part of not only the implementation of the policies,but also their formulation. Otherwise,rather than becoming enablers of implementation,they can become its disablers. The Planning Commission has considered several spurs to better implementation that may be applied as we move into the Twelfth Plan. Several of these are being considered by government and may be implemented even before the Plan is formally underway.

The administrative system must be reformed,urgently,to ensure accountability and professionalism. The Administrative Reforms Commission has recommended the necessary changes. These must be implemented. The architecture of Centrally-sponsored schemes must be changed to enable innovations that suit local conditions. Citizen participation must be designed into the schemes for planning,monitoring,and even participation in delivery where feasible. Silos within government must be broken down. Schemes must be consolidated and team goals set,and monitored,to achieve outcomes that require collaboration amongst many ministries.

When results are not being achieved,setting up another review agency or committee often slows down action further. There are too many review and coordination agencies in some areas,rather than too few. Their numbers must be reduced to a critical few only,who must be empowered and held accountable for ensuring that results are achieved. Finally,functionaries at all levels need refresher courses in how to make improvements and manage implementation: by building consensus amongst stakeholders and managing to a plan. These disciplines and their tools must be widely taught throughout the country,like Japan disseminated Total Quality across its nation.

The writer is a member of the Planning Commission

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