Global energy major with footprint in 10+ countries was planning expansion in asset development in India and faced three key challenges around business culture and compliance:
- Compliances: What are the grey areas in compliances setting-up, and operating business in India? Which areas are the biggest pain-points?
- Meeting timelines and quality: To what extent is timeline/ quality a challenge when engaging with suppliers & partners? Are some suppliers/ partners less challenging than others?
- HSE: What is the level of coherence between international and an Indian HSE standard? To what extent is compliance a challenge? What is needed to mitigate them?
MEC’s role was to identify key pain-points or risk areas, understand mitigations employed by the experienced MNCs in India to address key risks and to design a prioritization matrix for mitigation strategy based on the impact and probability of risks.
MEC team deconstructed the ambiguity around the complex Indian business environment by executing three key analysis or steps:
- Creating a framework to identify the challenges (corruption vs. timeline/quality vs. HSE) at various stakeholders in the operating environment (companies, partner, vendor)
- Running an extensive consultation group with experienced MNCs in India across power, infrastructure, O&G sectors to understand the key pain-points/risks and mitigation strategy deployed by them
- Assimilating inputs received and in-house expertise to create a prioritization matrix of issues and creating a roadmap for client in terms of mitigation strategy
MEC interacted with 15+ professionals leading project management, liasoning, procurement and operations in Indian set-ups of MNCs to conclude analysis. The assessment revealed that the risks and pain-point vary by stakeholders in the value chains and level of globalization of their practices, while mitigation strategies exist primarily at 3 levels, related to – internal organization, contractual design and partnerships.
Accordingly, the mitigation priority matrix was created for the client segmenting the risks into urgent/important matrix and segregating the associated interventions into “critical”, “need to have” and “good to have” action areas.
With MEC’s support, the global utility was able to smoothen the entry into India and have a roadmap to address issues around business environment. Although the assignment would have far-reaching impacts, the three most immediate impacts were:
- Deciphering starting point: Decoding optimal base organization structure in India and balancing working culture
- Appropriation of effort: Identifying the areas to build in-house capability, to partner and to outsource
- Inputs to compliance strategy: Understanding most common pitfalls in India and designing internal checks to avoid compliance issues
The company continues to actively utilize the mitigation prioritization matrix to manage internal and external risks.