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1. Can Sri Sharma be successful in creating a committed workforce with shared vision and super-ordinate goals?

2. How can you create a cause and effect relationship between the various elements of the strategic direction?

Strategic Intent and Setting Strategic Direction: A Case Study of Odisha Power Transmission Corporation Limited Ashok K. Sar1 Abstract The case focuses on developing the strategic direction for a leading power transmission utility in India. The challenge for the CEO was to transform the utility from a bureaucracy, which was a government department to a learning organization, in its present corporatized structure. The legacy issues and the monumental task ahead of the company brought specific challenge for strategy formulation and implementation. With a view to set a comprehensive framework for strategy formulation and implementation a strategic direction capturing vision, mission, values, goals and objectives was developed. This strategic direction would pave way for creating strategic plans at the organization level as well as at strategic business unit levels. The plans can then be cascaded down to individual scorecards for effective strategy implementation. Key words Power transmission, vision, mission, values, goals, objectives On ninth foundation day on 1 April 2014, Sri Hemant Sharma, the Chairman and Managing Director, in his message to the members of staff, expressed a sense of pride and satisfaction. He highlighted the remarkable performance of the company amidst adverse conditions in the economic environment of business and complex and dynamic regulatory and operating environment. Completion of 100 grids and 10,000 circuit kilometer (ckm) lines during FY 2013-14 has been the most talked about achievement in the project management circles in India. Other notable achievements being, disaster recovery after devastating Phailin; winner of Ministry of Power's "Gold Shield for excellent track record in Transmission System Availability (thereby becoming a member in the star performer category); and organization restructuring with significant enhancement in employee satisfaction and motivation. Sri Sharma, made a special mention about the higher employee satisfaction being converted into higher employee engagement levels in terms of substantial productivity, quality, efficiency, and performance improvement, without which, the organization restructuring efforts may be futile. He also highlighted the challenges concerning execution of several high value mega projects under its long-term business plan in next five years involving a project cost of more than INR 100 billion, and effective financial management thereof. He concluded his message asking the members to put their best efforts and resolve to transform OPTCL into one of the leading transmission utilities. Odisha Power Transmission Corporation Limited (OPTCL) Odisha Power Transmission Corporation Limited, one of the largest Transmission Utility in India was incorporated in March 2004 under the Indian Companies Act, 1956 as a company wholly owned by the Government of Odisha to undertake the business of transmission and Porf. Ashok K. Sar of KIIT School of Management prepared this case from published sources solely as the basis for class discussion in KSOM. 2 https://repo.optcl.co.in/docs/b6d191f79225183c3b9f932a2295f317_CMDs_Foundation_Day_meesage.pdf 1|Page Strategic Direction - OPTCL wheeling of electricity in the State of Odisha. The registered office of the Company is situated at Bhubaneswar, the capital of the State of Odisha. Its projects and field units are spread all over the State. OPTCL became fully operational with effect from 9th June 2005 consequent upon issue of Odisha Electricity Reform (Transfer of Transmission and Related Activities) Scheme, 2005 under the provisions of Electricity Act, 2003 and the Odisha Reforms Act, 1995 by the State Government for transfer and vesting of transmission related activities of GRIDCO with OPTCL. The Company has been designated as the State Transmission Utility in terms of Section 39 of the Indian Electricity Act, 2003. Presently the Company is carrying on intra-state transmission and wheeling of electricity under a license issued by the Odisha Electricity Regulatory Commission. The Company is also discharging the functions of State Load Dispatch Centre. The Company owns Extra High Voltage Transmission system and operates about 11,517.727 ckt kms of transmission lines at 400 kV, 220 kV, 132 kV levels and 107 substations with transformation capacity of 12,233 MVA having 262 transformers. The day-to-day affairs of the company are managed by the Managing Director assisted by whole-time Functional Directors as per the advice of the Board of Directors constituted. They are in turn assisted by a team of dedicated and experienced professionals in the various fields. The organization chart is given in Figure 1. In the financial year 2017-18, it earned a comprehensive income of 42.40 crores (after taxes) on a paid up share capital of 510.07 crores?. Hierarchy of Strategic Intent Under the leadership of Shri Sharma, a well articulated strategic direction has been put in place setting the ground for OPTCL to engage a journey to win. The articulation of the strategic direction is captured in the vision, mission, core values, goals and objectives4. Vision OPTCL ranks one among the leading Transmission Utilities in India, transmitting quality, reliable and SECURED power with minimum transmission loss at a competitive price. Mission 1. Transmission of power in large quantity with affordable price as per the expectation of customers, Government of Orissa and OERC. 2. Increase transmission network need based to meet demand of the State in 2025. 3. Develop a portfolio of Intra State and some Inter State transmission assets in national market including business expansion for evacuation of power outside the state in collaboration with PGCIL and others. 4. Adoption of best Construction and O&M practices supported by system driven processes enabled by cutting age IT solutions. 3 Directors' Report, 29th December 2018 4 https://www.optel.co.in/writereaddata/Downloads/vision 2009.pdf 2 Page Strategic Direction - OPTCL 5. Diversification of business in providing construction and maintenance services and providing consultancy in Telecommunication and other emerging areas so as to achieve optimum utilization of assets and generation of additional revenue. 6. Develop skilled and satisfied human resources, fostering a service oriented attitude to its customers/stake holders and empowered to meet customer need in the changing scenarios. 7. Building Research and Development wing for adoption of new technology. 8. Discharge the social responsibility with commitment on Environment Protection, Health, Safety, Energy conservation and Community Development. Core Values 1. Commitment for People Development 2. Focus on team work and business excellence 3. Thrust on Customer focus. 4. Strive for a standard of performance driven by Quality and Innovation 5. Demonstrate a responsible, sincere and fair, and trust worthy corporate culture 6. Care for Environment and Society Goals 1. Growth supported with Technology Adoption 2. Adoption of Good Construction Practices 3. Pursuing Good Operating and maintenance Practices 4. Leveraging use of IT and Telecommunication 5. Focus on People Development 6. Financial Management for Funds mobilisation and Financial Control & Reporting 7. Promoting Research and Development 8. Practicing Good Corporate Governance 9. Discharging the Corporate Social Responsibility Objectives The objectives were articulated in nine dimensions, viz., Construction Practices, Operations and Maintenance (O&M) Practices, Information Technology, Telecommunication, Human Resource (HR) Development, Finance, Research and Development, Corporate Governance, and Corporate Social Responsibility. Objectives - Construction Practices 1. Technology adoption through satellite survey & GIS mapping, adoption of tall and multi- circuit tower, adoption of tubular pole and introduction of Flexible AC Transmission System (FACTS) 2. Installation of Super Grid, Intelligent Grid and GIS Grid S/S in important areas and converting radial sub stations to ring system 3. Procurement of modern testing equipment such as DGA, FRA and TAN delta kits. 4. Setting up Grid Sub-stations nearer to load centres due to RGGVY & BGJY 5. Adopting modern construction management techniques 6. Initiation of Land Corridor plan for new project to facilitate future expansion. 7. Improvement of Health, Safety and Environment-(HSE) in construction sites. 8. Imparting training on Quality, Cost and Time Management of Projects. 3 Page Strategic Direction - OPTCL 9. Improving Field Quality Plan. 10. Standardisation of Engineering designs and practices Objectives - O & M Practices 1. Adoption of live-line maintenance technique to bring down the outage time 2. Diagnostic analysis of old equipment and moving towards more preventive 3. Procurement of modern testing equipment such as DGA, FRA and TAN delta kits.maintenance 4. Engagement of emergency restoration gang 5. Introduction of condition based monitoring cell 6. Adoption of good inventory management standards 7. Introduction of a well planned R&M Scheme for existing assets after evaluation thereof. 8. Transmission System availability higher than the CERC norms. 9. Modernization and Renovation of outlived Sub-stations and lines. 10. Load Management for bringing down the transmission loss and improving Objectives - Information Technology 1. Support every operational level business function of the organization through implementation of Enterprise Resource Planning(ERP). 2. Help Finance Management in publishing Quarterly Accounts in addition to timely publishing of Annual Accounts. 3. Support implementation of proactive Maintenance of EHT O&M function. Strengthen EHT Sub-station by way of introducing Sub-station automation Systems. 4. Support Construction projects in minimizing cost and time over run contingencies by way of automation support in Projects Management. 5. Support EHT Construction Management with automation tools viz., economical Tower spotting tool, Geographical Information System tools for EHT Network, Drawing Management tools etc. 6. End to end automation support to realize intelligent GRIDS. 7. Provide Energy trading intelligence through online Trading Systems. 8. Fulfil the Statutory responsibility of the SLDC in publishing monthly Energy Accounting Schedules and Settlements thereof. 9. Render the financial and Physical information about OPTCL's functioning as required by *Regulatory Information Management System (RIMS). 10. Build Data Warehouse to support Strategic management decision. 11. Build Knowledge Body of the organization. Objectives - Telecommunication 1. Enhancement of existing interface points and addition of new interface points in OPTCL system to accommodate data of the upcoming IPP/ CP/CGS etc. 2. Provision of logic earth & surge arrestors at different Grid sub stations. 3. All Grid S/s to be covered under ULDC Project scope for implementation of SCADA. 4. Present Microwave links to be vacated & switched over to optic fibre links for utilization as data concentrator points. 5. Analog carrier communication systems to be replaced by digital PLCC version in phased manner to ensure high-speed data communication, transfer tripping and facsimile service between remote sub-stations and control centres. 4 Page Strategic Direction - OPTCL 6. Implementation of state-of-the-art substation automation of Micro SCADA 7. Preparedness for live line maintenance of all OPGW lines in OPTCL. 8. Expansion OPGW network to expand the existing network for integration of new substations and entering into Telecom business by leasing out spare capacity. 9. Provision of inter-facing arrangement between SLDC and District Control Centres of Distribution Companies. 10. Implementation of carrier inter tripping scheme. Objectives - HR Development 1. Assessment of manpower requirement and formulation of a suitable organization structure. 2. Ensuing growth and development of employee by recruiting and nurturing talents through systematic training, providing opportunities for developing new capabilities. 3. Creating an atmosphere for high commitment of people by emotional sharing of vision and sharing concern for people development and satisfaction where people will be treated respectfully and fairly, by providing fair and equitable treatment to all employees. 4. Developing and sustaining work standard compatible to ultimate purpose of the Organization, striving to flourish right kind of work culture, encouraging people for taking initiatives and being creative in pursuit of the organizational mission through a culture of strong performance supported by a recognition and reward system. 5. Protecting health and safety of all employees to create a safe work place, delegation of authority and fixing responsibility with regard to target and achievement. 6. Implementing a well laid out People Development program through Training, Skill Development, Leadership Development and Engagement surveys. 7. Introducing Human Resource Audit 8. Career development of all employees 9. Harmonising interdepartmental relationship 10. Introducing modern training policies and practices Objectives - Finance 1. Implementation of an in-house developed accounting software to expedite accounts finalization and publication of annual accounts within the statutory time limit. 2. Implementation of ERP, reporting of all financial and accounting information on real time basis resulting in reliable MIS for effective decision making and efficient management of financial resources resulting in improved financial strength. 3. Better management of receivables, payables and capital expenditure. 4. Periodical review of loan portfolio to minimize the cost of loan through swapping or otherwise. 5. Timely mobilization of funds to meet the huge investment requirement in the transmission system with more thrust on cost of fund/ borrowing. Alternative funding options such as private placement of bond, external commercial borrowing to be explored. 6. Financial restructuring so as to improve the Debt Equity Ratio. 7. Exploring revenue streams from non-core business through optimal use of the transmission assets. 8. Monitoring of inventory Management 5 Page Strategic Direction - OPTCL Objectives - Research & Development 1. Extensive visit to the different sister organizations and interacting with their R & D department 2. Taking part in different seminars actively and scanning of journals, magazines, internet facilities with membership of different institutions to establish a Knowledge Management and Regulatory Research. Objectives - Corporate Governance 1. Formulation of Policy Manuals covering all functions including delegation of power. 2. Preparation and implementation of procurement policy and procedures for award of contracts with major thrust on expeditious and decentralized decision-making coupled with accountability and responsibility. 3. Constitution of Committees of Board to deal with matters relating to audit, projects, contracts, HR etc. 4. The Corporation has its own website, which will be updated in time so that all information and latest updates and announcements can be hosted in the website for access by the public. Objectives - Corporate Social Responsibility (CSR) OPTCL, as a Transmission Licensee and a State Transmission Utility, has an important role to play in the social development issues in course of its business operation. The social value of electricity has been increasing in day-to-day life and as the society is becoming more energy dependent. OPTCL is to satisfy the human needs not only by making available quality and uninterrupted power which is its core function but also will have the responsibility of addressing the social needs while carrying out its business operation as our operation has its impact on society and the environment. As a good corporate citizen, the Corporation is to take care of the community which gets affected in course of our transmission business. OPTCL has the objective of supporting the community by extending wide range of social, economic, educational, health and other welfare activities. The Corporation shall work in providing reasonable facilities to improve the lifestyle of the community in and around the area of operation of the Corporation. In addition, OPTCL is aware of its role and responsibility for environment protection. In addition to the environment protection measures undertaken for laying transmission lines, the Corporation will go for adequate plantation in its area of operation across the State. Having articulated a strategic direction, the greatest challenge facing Sri Sharma was about seeking commitment of people across the length and breadth of the organization and creating a shared vision/ super-ordinate goals. Discussion Questions 1. Can Sri Sharma be successful in creating a committed workforce with shared vision and super-ordinate goals? 2. How can you create a cause and effect relationship between the various elements of the strategic direction