FICCI Government Satisfaction Survey 2011 -12 Final Report

FICCI Government Satisfaction Survey 2011 -12 Final Report Submitted by: CSMM, International Date: 6 th October, 2012

Background & Study Objectives What does the government expect from FICCI? What views does the government have on current performance of FICCI? We need to understand their current & future needs and build a strategy towards meeting their expectations. FICCI IMRB We can conduct a Stakeholder Satisfaction Study which will help us in the following: To understand the need and expectations the government has with FICCI To assess the image that government has of FICCI Understand reasons behind satisfaction or dissatisfaction with FICCI’s services and operations Map FICCI’s strength and weaknesses and determine key action areas based on the same

Sample Achieved NO Name Designation 1 Shri. Dammu Ravi Joint Secretary(LAC) 2 Shri. Sailas Thangal Director (XP) 3 Shri. Sudhir Vyas Secretary 4 Smt. Banashri Bose Harrison Joint secretary (Central Europe) 5 Shri. Navdeep Singh Suri Joint Secretary (PD) 6 Shri Gurjeet Singh Secretary (E & SA ) 7 Shri. J. K Dadoo Joint Secretary 8 Shri. U. K. S Chauhan Principal Secretary 9 Shri. Pradeep Chandra Principal Secretary 10 Shri. Amit Khare Joint Secretary 11 Shri. R. P. Sisodia Joint Secretary 12 Shri. . M. F. Farooqui 13 Shri. Sunil soni Ministry Total 6 Ministry of External Affairs 3 Ministry of Commerce and Industry Ministry of Human Resources Development 2 Additional Secretary Ministry of Environment and Forests 1 Additional Secretary Ministry of Finance 1 A total of 13 interviews were achieved over a period of 5 -7 months , which was spread across various ministries. Considering the profile of the respondents, several rounds of calling and multiple efforts in terms of follow ups was done by IMRB in fixing up appointments. FICCI had also extended its support to IMRB, which was instrumental in coordination and setting up appointments during the interview phase.

Key Findings

Government perceptions about Associations in general: Bird’s eye view

Government’s view on an Industry Association’s role Below given are a list of words which the government correlate with Industry Associations. Bridge Gaps Negotiator Encourage Businesses Sectoral knowledge Policy Inputs Provide Research Feedbacks Facilitating dialogue Explore untapped markets and opportunities Awareness Building Government segregates Industry Association’s role into 2 major heads: i) Facilitator between industry & government ii) Providing the knowledge inputs based on which market/industry can develop and government can take informed decisions.

Government’s opinion on Industry associations fulfilling their roles… According to government, Industry associations are doing well on organizing events, how ever a gap is felt in their role as a facilitator Event Managers (Facilitating Frame work is missing) Industry associations not really seem to be focused in dealing with the ground level issues and they have very little state chapters in governments opinion Low Grounds (Very less Local Presence) Actual Performance of associations on various roles Cushioned Approach Classified labels (Mediator rather than an initiator ) (In-depth research insights missing) Government feels that industry associations are very laid back in its approach , where they act as mere mediators and does not initiate policy making. Governments opinion on Industry association is that when it comes to providing research inputs, they are very superficial and in-depth analysis is missing Government officials feel that nearly all industry associations are working on the surface and an in-depth knowledge and initiatives in policy making are required.

Let us see where does FICCI lie in the web of things? What are government’s specific view on FICCI?

Current perception The respondents were asked to choose a word(s) to describe FICCI based on their current experience and association with FICCI. Interface BTW Industry and government Facilitator Responsive Industry body Change Catalyst FICCI’s current role was described by most of the respondents to be more of an intermediary btw industry and government Some others described FICCI as…. a Huge Old Organization , an Input provider or Event Managers… Partner in economic growth Industry Voice *Represent the opinion of government officials in the descend *Respondents could choose more than 1 word to describe FICCI. The graph is given based on the count of words chosen by the

Govt. view on FICCI- The positive side…. . Spread & reach of its memberships Leader of Industry associations Strong connections with government Organize events with large participation Accessible & friendly

Govt. view on FICCI- The negative side…. . No sector specialists No proper systems in place Practical ideas & insights are absent Lacks proper co-ordination between Govt & industry Actionable information not available Policy level involvement is low Non representation of SME segment Lacks Strong Research team

Overall Satisfaction Levels with FICCI Taking all their past experiences into consideration, we asked the respondents to rate FICCI on a scale of 1 to 10, where 1 was the worst and 10 was the best rating. Lets look at where FICCI stands in terms of the overall performance rating*. …. . 1 6. 8 10 How do the other associations fair in this comparison? “ I would give FICCI a 5. 5 in comparison to other agencies as it is big on promise and poor on delivery". “Both FICCI and CII are event driven. Though there are many follow-ups & follow through, implementation does not happen. When compared to CII , FICCI is not cooperative enough, learn to collaborate. Assocham is a unified voice of industry. ” “I would rate 7. 5 for FICCI as it is having has more interaction and engagement with government, where as CII lacks terms of ally with the government and Assocham is a local chamber. ” * Overall performance rating is the average of all the individual ratings given by the respondents.

Satisfaction On Individual Aspects The respondents were asked about their satisfaction levels with respect to the current role played by FICCI on various aspects and give their rating on a scale of 1 to 10, where 1 was the worst and 10 was the best. High performance areas Average performan ce areas Low performance areas * FICCI performance is lowest on “Capacity building” and “Policy support” which also emerged as the 2 major expectations of the government. * Role performance scores is the average of all the individual ratings given by the respondents with respect to each of the aspect.

Current Performance: Government Speak “In the current situation, FICCI needs a much sharper focus & more sophisticated approach. Focused research, training & development and trade promotions are the key to success. ” “As a facilitator , FICCI needs to provide inputs for policy making to center and state -since it is a partner. Instead of providing inputs on strategies, functions and projections, its is only involved in event management now. Step back & see the big picture”. “Lacks proper coordination and no systems in place. Good research team required who can produce actionable inputs”. “Look at not only the regulatory regime – look at innovation & growth. Global downturn was one big opportunity to have become more innovative & competitive”.

Expectations & Perceived Role to be played

Expected Role that FICCI should be playing……. Based on their current expectations , the respondents were asked to choose from given options , the role that they think FICCI should be best performing and prioritize them. According to majority of respondents, opined that "Policy Advocacy” was the role that FICCI should be best performing on priority. *Represent the opinion of government officials In the descending order of priority Policy Advocacy Information Provider Trade Facilitator Capacity building ----1 -------2 ----------3 -------------4 ----------------5 ----------------6 Research Internati support--onal ----------------7 Networking platform trade ----- *Respondents could choose more than 1 Role /Function that FICCI is expected to perform. The graph is given based on the count

Policy Advocacy: Government Speak “Consensus Building for proposals- Removing perceptions about unnecessary rift between govt. & industry. ” “See things also from the governments perspective and not only from the industry – They are both sides of the same coin”. “They shoulder the responsibility along with the govt. In opinion making they should act as a 3 rd party and should be independent. There is lot of extrusion from media, which. Expectation: is not required”. “Pragmatic suggestions which are actionable or good to be implemented Strategic Inputs are expected from FICCI. ” Consensus building Actionable suggestions Need to have knowledgeable people in the team and inputs have to be given with supporting data”. “Seek public opinion-Before suggesting any policy inputs, they should be able to create a public opinion. Shoulder the responsibility of bringing on to the table the opinions of media and public, after a joint decision is taken based on their recommendations. ”

Information provider: Government Speak “FICCI has to focus on information dissemination and act as a guide to the government in various policy matters. ” “FICCI should focus on economic matters: media analysis, crystallizing issues, organizing debates and think beyond event management. ” “They can bring in fresh recruits from different school of thoughts so that their opinion can be Expectation: heard on various issues. ” Information dissemination “Members problems should be solved by the industry body. As of now the pharmaceutical/chemical Real time information strategic point of view guy comes to us directly for help. When we ask for any data, we are told that its not available. FICCI needs to help Govt with real time data which will help us in devising policies. ” “When do we need to invest on infrastructure is not told to us and we need to rely on the state Govt. This should not happen. What is less and what is surplus-the inputs have to be provided by FICCI so that we can devise policies accordingly. If someone spreads information that onion prices are going high, FICCI should inform us where the shortage is in which state. ”

Trade facilitator: Government Speak “Adopting an approach & working between the industry and government so as to be more efficient in decision making, keeping in mind the national Interest. ” “Outreach to all the industries in term of more sophisticated, focused & structural way of targeting all the sectors for trade & capacity development. “ Expectation: “Technology creation –Put industry together to create new technologies. ” Facilitating decision “Being a honorary counsel, FICCImaking&play an important role in the industry should creation gatherings. ” Wide outreach “They should have ties with the leadership within industries and should be willing to take up new issues. ”

Capacity building: Government Speak “Focus on building a society with Social & Intellectual capital. ” “In case of capacity building they are just copy cats. Don’t have anything of their own. ” “One reason for all their weakness is that they depend lot on government subsidy. Instead of that they should try to. Expectation: get sponsorships” Industry training “Work with the industry on manpower. Focused as the country is going to face shortage Long Term perspective of trained manpower at lower & middle level – especially among labor technicians. Social & intellectual capital They should work with industry to develop manpower keeping the long term perspective in mind. ” “Chamber of commerce in Germany & Japan have huge focus on skill development through certification program which benefits the industry. FICCI can develop certification program on various type of skills, Eg: FICCI certified professional for vocational training, which can be honored by all the industry bodies. ”

Networking Platform: Government Speak “Coordinate with other industry associations and safe guard the rights of the industry. Eg: Anti dumping duties. They should come to the rescue of the industry bodies with trade remedies like WTO cell. Clear understanding of the laws are very important. ” “Focus on MOU with local chambers of commerce. They should propagate the brand equity Expectation: and quality of Indian product & services abroad-which CII is currently doing. ” Cross sectoral coordination “Cross sectoral coordination is vital for max return for the industry. Eg: Proactively enable Post overseas visits or delegation, feedback to be given to government , if any business has Depth interaction with Govt Timely feedbacks to Indian majors to enter coal mining facilities abroad”govt resulted. Business feedback to govt about foreign policies is imperative. FICCI should proactively take up on these interactions as there is no sustained feedbacks currently. ” “More personal contacts with minimum officials within the government. It should not be ad -hoc , but well planned. No one comes to us , even if they say ‘we will follow up. ’ Eg- they will meet in any event/meeting & will say we should follow-up on certain issues, but no one really follows up. ”

Research support: Government Speak “FICCI should focus on strengthening their sectoral knowledge. To get there, they need to focus on external engagement and understanding internal policies. " “They are also struggling with the big picture. Professional expertise is missing, practical ideas are missing. Eg: if there is Saturation in markets abroad, (US + Europe) where will growth come from ? What about the economic relationships? ” Expectation: “Expect support from FICCI on ongoing delegations like country specific briefs, business Sectoral Knowledge Crisis Management Apparatus See the Big Picture reports, report compilations etc. ” “Be in touch with different chambers of commerce as an approach to solving various problems -Get more communication/Information about acquisition, investments etc. ” “FICCI should do a micro + macro analysis where India should be 10 yrs from now and operate accordingly. ” “Involve lot of research scholars and take inputs from them- Expand their knowledge base in terms of Technology and R&D. ”

International Trade: Government Speak “Seek to enhance the quality of Indian products & services. Need support from FICCI to expand India’s relationship & services abroad. “ “They should act as a Think tank in the overseas investments areas. Need to also focus on the SME sector. ” Expectation: “In the global downturn, the companies across the world are more focused on innovation & technology. In order to be competitive you have to be innovative , don’t look only at the Promote Brand ‘India’ Initiate business ties Utilization of Indian resources “Explore new business opportunities in India & abroad -FICCI needs to follow up on foreign regulatory regime. ” visits on the B 2 B platform. Take suggestion from them and focus on specific regions/ sectors. “Look for business ties for new projects that are being undertaken abroad which requires skills & expertise which the Indian industry can provide. ” “Open new investment opportunities for Indian industries and spread out the scope to various sectors once the opportunities has been grabbed. ”

Events & Engagements: Government Speak “Preparatory process and discussion between stakeholders should be undertaken before any event is organized. ” Expectation: “It is very superficial now. Qualitative interaction has gone down. Ability to mobilize Awareness Building big time enterprises is lacking in FICCI. People who come for FICCI events come at a very transaction level. ” Qualitative Interaction Involvement of centre & state government “Should have better infrastructure and conferencing facilities. Need to focus on actionable information and thematic ones. “Events should foster better communication between central level and ensure greater reach at the state level. ” “Industry specific papers needs to be presented. Need to work on capacity building workshops. ”

The Way Forward

Think Tank -They are currently informing us. . They should do more…. . ” Knowledge Provider - • Become the knowledge repository for the government-Formulation of a knowledge bank where government can refer and retrieve sector specific reports/data/analysis etc when ever required. (This information could also be used for potential investors in the country while planning their entry) • FICCI need to have specialists addressing sector and subsector needs - government can consult for policy related matters. • Effective utilization of State/Central level Reports in Proactive opportunity identification for policy planning is the key” Thought Leader policy making • Nurturing the social and intellectual capital for attracting potential investors in the state/country by developing industry specific certification programmes/training programmes etc. • Provide directions to the government as to which state/sector investments are required in infrastructure

The strategist “They are currently running the show…. . ” • Overseas delegation should be well planned and not adhoc. Proper follow up and coordination is required Manager- post the visit, till the implementation stage. • Gather information about various international acquisitions and investments in the pastreports/data/analysis etc to assess the challenges • Regularly conduct seminars and events with media /industry level(India and Abroad) to seek public opinion. FICCI should proactively initiate policy based on the inputs received from these programmes. “Should think like the CEO…. . ” • Focus on developing SME segment and increase their representation in the state and central level • Create a platform where Arbitration /Mediation btw Owner – government and industry should be taken up by FICCI and they don’t approach the government directly. • The knowledge team of FICCI should be in place to provide multiple and real time reports for Multilateral

The Driver -“Right now. . they say…. But its never implemented, , Preacher- • Collaborate with different chambers of commerce (India & abroad) for business report compilations. Need to seek their suggestions for identifying grass root level issues. • Need to provide government with valid reports and supporting proofs on the issues /responses that arises out of the events so as to action upon them • Involve both centre and state government in topics related to various sectors/industries • Increase the state level presence by having more state “Need to dirty their hands a little bit more… chapters • Focus on MOU with other chambers of commerce at the state and central level-Where Enabler – reports/compilations/data etc can be used in common between the two. • FICCI should have a special wing which does consulting for national and international investors to

Expectations to be fed as Vision statements

Broad Recommendation: Vision framework Collaborati on Competenc y Co. Creation Currently, Collaboration is at a minimal transactional level with various industry bodies and local chambers of commerce at the state and central level- Very important to drive change for Government-industries success Competency, as in sectoral knowledge, policy advocacy , social and intellectual capacity , trade facilitation, industry specific reports, research inputs Perceived to be the improvement areas for FICCI to become the knowledge partner for the government FICCI to partner with the government and industry for enabling Policy co-creation. - To shift gears in policy making and as the industry watch dog act as a guide to the government

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