Monday, December 6, 2010

Should political parties be run like businesses?

More than a year ago, seeing the sad state of Congress party, I had written a letter to Rahul Gandhi about the need to fix the rot quickly. Otherwise, the party as a whole is headed towards a state in which it is in Bihar now. I had also asked an audience with Rahul to explain my strategy to fix the rot. I have not heard from him since then. Needless to say, the Congress party has sunken to further lows since then.

What if Congress party is run like a business? For the benefit of Gandhi family, let us assume a comparable family business situation like that of Reliance Industries. If Congress party is run like a business, then the voters will be its customers and different states will be the market segments it operates in. Needless to say, it has to be in No.1 (Delhi) or No.2 (Punjab) position in each of the markets in which it operates. Otherwise, it loses its relevance (Bihar). In markets, where it cannot go alone, it needs alliances (Tamil Nadu). But it needs to ensure that the alliance partners (like JD in Karnataka) do not eat into its margins (voting percentage).

What is really happening to Congress as a business? Sonia Gandhi is the Chairman & CEO while Manmohan Singh is the COO and Rahul Gandhi is the second-most influential director on the board. Sonia's so-called coterie is the list of other board members who influence decision-making. Congress, instead of operating like Reliance Industries, is operating like Hindustan Motors. In most markets it is neither No.1 nor No.2. Even in places where it is No.1 or 2, it is losing market-share very quickly.

Is the situation so bad that Congress is on the verge of becoming history? No. The reason is because the competition is not doing well either. Though BJP controls many major states, it is also losing control. The customers (voters) don't have credible alternatives to move to (like in Bihar). This is what is protecting Congress from becoming history.

What can the party do to stem the rot? To start with, the people who are running the party (Sonia & the coterie) need to get connected with what is happening at the ground level (lowest levels of party machinery). Otherwise, you end up devising strategies which don't work. Rahul's strategy for Bihar is one such example. When some of your business units are continuously making losses, you will have the board spend more time to get into the last detail and take measures to fix the problems. You can't assume that the middlemen will always get you the correct information. This is what is happening in Congress now. There should be a mechanism to verify the authenticity of the information, which is the missing link.

Another item that the Congress, the business, needs to focus on, is to groom mid-level management which does not always look up to the top management before taking any decision. The high-command model is not sustainable for a long time. Congress badly needs good salesmen at the state level & lower who not only do the selling (promoting the party's views & policies) but also do the account management (take care of voters issues) on a day-to-day basis. This is how businesses are managed and that is what Congress needs to do at the organization level.

In summary, it is high-time that Congress party leadership learns a trick or two from the businessmen and runs the party like a business (act like as though there is no tomorrow!) which could potentially become history if the issues are not addressed immediately.

No comments:

Post a Comment