Professional Documents
Culture Documents
Overview
Introduction Products and Market
Segment Organizational Structure Processes Innovation at Selco Organization Culture Future Plans Recommendations
Structure
Processes
Culture
Introduction
y Solar energy is expensive for rich but cheap for poor y y y y y y
(in comparison to kerosene lamps and dry cell batteries) Founded by Mr. Harish Hande & Neville Williams in 1994 Mission-to see light empower life 170 Employees spread across 21 branches 100,000 + solar home lighting systems in 13 years Awarded Ashden awards(Green Oscars) for Outstanding achievement(2007) and Sustainable energy(2005) For Profit Organization Self sustaining model
y Finance
y Affordable credit y Accessible credit
y Services
y Custom system design y Installation & Training on
y Customer s incomes in the financial bracket of `2000`3000pm y Largely rural population without access to grid electricity
Some formal procedures introduced Contribution based reward systems Customized products with added services Growth focus Management style-Direction-setting Need for delegation
Formalization 2004-present
Formal procedures and division of labour Multiple products-technology, finance and maintainence Incentive-based reward systems Focus on market expansion Management style-delegation with control
RBO
ESC ESC
Inventory
AGM, Operations
Manager, Projects
Manager, Training
.....
Branch Manager
Branch Manager
Branch Manager
Decision making on accounts, administration, inventory and innovation are centralized Top level highly educated, bottom level of less educated rural employed, apprentice model of training
Process
Two Aspects of process
y Sales process y Marketing process
Sales process
Need Analysis Technology Financing Installation & Training After Sales Services
Specific needs analyzed by visiting the customer s place Customized solution presented with estimated cost Products are selected and minimal modifications done Prices fixed for the final product to be provided Facilitation of loans through local banks and partners Fixing of payment systems in case of consumer s inability
Free maintenance service for one year Annual Maintenance Contracts (AMCs)
Marketing Process
y Creating awareness about the solar energy solutions y Earning the people s trust and start selling their product y Social advertisements like demonstrations in schools, hospitals etc y Viral Marketing y Significant portion of their sales target is met by the rural low income population, thus achieving their actual goal
Innovation at Selco
y Ideation from within and y y y y y
Technology
Cost effective design Designs are overdone
outside the organization Concept of Idea Box Evaluation of Ideas Idea Champion -like 3M Limited R&D investment Mentoring Social Entrepreneurs with similar vision
Finance
In non-availability of loans from banks
Marketing
Create awareness about solar energy solutions Customized products
Culture
y Informal Recruitment y Local staff y On job training y High employee retention
20%
Personnel Ratios
Managerial 18% 20% Professional 42% Clerical
the world y Employees are passion driven pay is not the main motivator
Social Impact
Provided efficient lighting solutions for schools About 30% reduction in electricity bills Provided electricity to a village of farmers and daily wage
laborers living without electricity Created pivotal finance schemes Arranged for 100% loans to 28 families
Future Plans
y Projects
y In Solar Lighting, Solar
energizer, cheap solar cooker, automatic water level controller y Diversify into other energy solutions
y Plans
y Expansion of customer base-
household incomes `1500 y Involving passionate entrepreneur with similar mission and vision
formalized and optimized y About 30% processes are replicable as it is. 40% are context based y Identification of four individuals to replicate Selco Model y Tie ups with partners in Asia, Africa and Latin America
Improvisation in Structure
Full Time Integrator Roles
Lack of horizontal communication
Managing Director
Streamlining of structure
Confusions regarding work allocation
VP, Projects
Inventory
AGM, Operations
Manager, Projects
Manager, Training
Program Manager
.....
Branch Manager
Branch Manager
Branch Manager
costs By installing panels on a group basis, the company can cut down costs ,thus lowering the price of offering
Recommendations
International Perspective
IP Protection