Friday, December 24, 2010

Design thinking: Why business leaders need to think like designers

May the management concepts of yore rest in peace. As India Inc speeds into 2011, CD presents original articles from a select set of new-age management gurus — with cutting-edge ideas geared to our fast changing times:

Roger L. Martin is a leading business strategist, author and Dean of the Rotman School of Management at the University of Toronto.Design thinking is about applying the principles of design to solutions for business. The phrase came out of a conversation that Tim Brown, the CEO of IDEO and I had in 2002 on the transformation of IDEO's business. IDEO started off as a design firm for high technology products, like the first commercial working mouse, but increasingly was moving into more abstract uses of design like designing customer experience or designing organisational structures.

Brown's challenge was that the firm needed to start to think more generally about design. And so I said, yes, what you need to do is ‘design thinking’. My own personal journey into design thinking began in 2001 when I got involved with Procter & Gamble's design revolution, spearheaded by chairman AG Lafley. He had just appointed P&G's first vice president of design innovation in 2001.

Together with Brown and IDEO's founder David Kelley, I worked on integrating this new design initiative into general management techniques, because ultimately all that design work had to go commercial. What we discovered is that the design community is great at two things, which make up two-thirds of the concept of design thinking.

They're really good at deep holistic, ethnographic user understanding and they're obviously very good at visualising, imagining and prototyping. The third part is actually tying this to business strategy. Those are the three gears of business design. What we created was an end-to- end process that we called design works and it transformed the way P&G thought about everything.

Design has always been around in corporations but it has operated in silos. That's what we wanted to break companies out of, by bring it into operations. Our approach is about teaching general managers to think like designers. And this can be used to solve any business problem — increase market share of a product or redesign compensation packages. General Electric today is very big on this.

My biggest worry is that we've become over dependent on analytical thinking. Corporations have become far too analytical, and education systems as well. In this modern, scientific, rational world I am mortified at the degree to which kids are taught that if you want to be relevant and get good jobs drop subjects like art, take math and science.

I don't believe that you can be only left brained or right brained; we're all born with more right brain capacity than we'll ever need. But I also believe that if you don't use it you could lose it, but then you can always retrain yourself. It's like BF Skinner who taught pigeons how to play ping pong. You don't always have to choose between music and math.

This is a problem that arises from the education system. However it is slowly changing in some quarters of business education. Design thinking has become such a hot topic that, as with other hot topics, everybody's trying to figure out what's the easiest way to incorporate it. Of course, one easy way is to take your students to a design school and give them exposure to that.

Another easy way is to declare the management of design to be important and teach that. There are people doing both. However there are very few people doing IP development in business design and creating brand new conceptual frameworks for thinking about design thinking and teaching it. We've done that at Rotman School of Management by redesigning the way we teach business education and students love it.

Design thinking can become a huge competitive advantage for Indian companies so that they can sell not solely on cost arbitrage, but please the more sophisticated consumer with their design thinking rather than cheap prices. The world needs to move away from its dependence on analytical thinking.

Our entire lineage of modern scientific thought can be traced back to Aristotle and his book Analytica, which forms the basis of the scientific method that we all use, whether people know it or not. What we are forgetting is that at the end of the tome he says that this book and the methods described in this book are for that part of the world where things cannot be other than they are. So an oak tree is an oak tree and an ant is an ant and neither can be anything else. He said use this book for that part of the world.


NOTE: The above article is not originally authored by the blogger. It is a reproduction from the series of articles appearing in the Corporate Dossier Supplement of The Economic Times of 24th December, 2010

Management Tip of the Day: Ways to Become a Thought Leader

Just read the following piece in the Economic Times. Thought it deserves to be shared.

There are some key ways to build your own brand within and outside the organization, says Harvard Business Review.
The Management Tip of the Day offers quick, practical management tips and ideas from Harvard Business Review and HBR.org.

"Everyone has a personal brand these days. But if you want to move ahead you need to be more than the 'finance guy who understands the business.'
Distinguish yourself as someone with a truly unique perspective respected inside and outside the organization. Here are three ways to do that:

1. Build your online presence. The Internet is a perfect place to start showcasing your knowledge. Post comments on blogs, write your own posts, and connect with other bloggers to create a network.
2. Win some awards. Identify awards that matter in your industry and don't be afraid to nominate yourself, or convince colleagues to do it for you.
3. Flaunt well thought-of affiliations. Your associations aren't always in your control but if you have a degree from a top school or testimonials from important people, display them prominently. Credibility by proxy is valuable."

Tuesday, November 16, 2010

Why the Best Leaders Are the Best Leaders?

A great piece By Dr. John C. Maxwell which I thought deserved to be shared:
From 1996 to 2007, manager Joe Torre led the New York Yankees to the playoffs every year - winning an astounding 17 series in the post-season. Over those same 12 years, the Los Angeles Dodgers did not win a single playoff series. This past season, Torre departed New York to coach the Dodgers. The result? The Dodgers won their first post-season series in 20 years, while the Yankees missed the playoffs altogether.

Ask Yankees and Dodgers fans, and they will tell you that Joe Torre's leadership matters. However, they may not be able to tell you exactly why Joe Torre is an excellent leader. What's true of the fans in New York and Los Angeles is true for many of us. We experience the effects of leadership without understanding the cause. In this article, I hope to make plain why the best leaders are the best leaders. In a nutshell, remarkable leaders give their best to their people, and get the best from their people. Let's look at how this happens.

The Best Leaders Give Their Best to Their People By...

1) GROWING

People naturally follow leaders they respect as being more advanced than they are. For this reason, personal growth is directly proportional to influence. If you desire to gain followers, then pay the price of getting better. To give people your best, you have to elevate your leadership capacity. Consider the metaphor of walking up a narrow staircase - you can only go as fast as the person in front of you. When leaders stop growing, they quit climbing and impede the progress of everyone following them. However, when leaders grow, they ascend the stairs and create space for those behind them to climb higher. Personal growth involves challenging yourself, and pushing beyond the realm of comfort. When is the last time you did something for the first time? How long has it been since you felt in over your head?
2) SERVING

"Only a life lived for others is a life worthwhile."

~ Albert Einstein

Serving others is an attitude issue. Unfortunately, many leaders operate under a king-of-the- hill mentality. They attempt to pull down anyone above them in order to secure the top spot for themselves. In doing so, they clutch at power, grapple for control of company resources, and strive to dominate others. Seeing relationships as win-lose propositions, they ultimately burn bridges and isolate themselves. The best leaders take an entirely different approach. Rather than dragging down anyone who threatens their position, they extend a hand to lift the performance of teammates and coworkers. They function with a mindset of abundance as opposed to an attitude of scarcity, and they wield their influence to prop others up rather than to elevate themselves. Over time, they are honored for the contributions they have made to the lives around them. All leaders serve. Sadly, some serve only themselves. Serving is a motives issue, and the crux of the matter boils down to a simple question: "Who?" Does a politician serve the public or his pocketbook? Does a CEO serve to benefit her shareholders or to support her lifestyle? The best leaders set a tone by serving and prove they are deserving of being out in front.

3) MODELING

Growing leaders have something to share; serving leaders have something to give; modeling leaders have something to show. As V.J. Featherstone said, "Leaders tell, but never teach, until they practice what they preach." The best leaders embody their values. Their passion exudes from every pore and demands respect.

The Best Leaders Get the Best from Their People By...

1) LISTENING

The smartest leaders realize the limitations of their wisdom, and they listen to their people in order to capture invaluable insights. However, leaders don't just listen to gain knowledge, they also listen to give their people permission: permission to challenge the process, permission to test assumptions; and permission to take risks. Nothing turns off an up-and-coming leader like the deaf ear of a superior. The best leaders don't simply listen to incoming ideas; they proactively draw them out of their people. They listen actively, not passively.

2) RELATING

Leaders touch a heart before they ask for a hand. To touch a heart, a leader has to be open to disclosing his or her identity by sharing personal stories and owning up to professional weaknesses. Mysterious or aloof leaders may be successful decision-makers, but they won't get the heartfelt loyalty that comes from authentic relationships. As simple as it sounds, making a person feel known correlates powerfully to their job satisfaction. In fact, Patrick Lencioni lists anonymity as one of the top indicators of a miserable job. Leaders dignify their people by studying their interests, learning about their families, and finding out their hobbies. Conscious of the power of connection, the best leaders refuse to be barricaded inside of an office, and they take responsibility for relating with others on a regular basis.

3) TEACHING

Gifted teachers have a way of making students out of disinterested bystanders. The best leaders have an infectious thirst for knowledge, and they take pride in cultivating knowledge of their craft and awareness of their industry. A leader's teaching ability depends upon ongoing personal growth. As Howard Hendricks said, "If you stop growing today, you stop teaching tomorrow."

4) DEVELOPING

The best leaders understand the differences between training people for tasks and developing people to be better leaders.

Training

Focus is on the job

Adds value to specific things

Helpful for a short time

Changes a performance

Developing

Focus is on the person

Adds value to everything

Helpful for a lifetime

Change the performer

The best leaders view their people as appreciable assets and prioritize investing in the talent on their teams.

5) MOTIVATING

After one of my presentations, an audience member approached me who was visibly indignant about my speech. "Why is motivation last on the list?" he demanded. "Well," I replied, "because if you listen, relate, teach, and develop your people, then they will be motivated!" Sustained motivation comes by creating the right environment for your people and by doing the right things consistently to nurture them. Consider a flower. It cannot grow in the Arctic; it requires a climate conducive to growth. Yet, even in the right environment, the flower must be planted in hospitable soil, exposed to sunlight, watered, and freed of weeds.
Review:

The Best Leaders Give Their Best to Their People by... 1. Growing 2. Serving 3. Modeling

The Best Leaders Get the Best From Their People by... 1. Listening 2. Relating 3. Teaching 4. Developing 5. Motivating


About the Author

John C. Maxwell is an internationally recognized leadership expert, speaker, and author who has sold over 16 million books. His organizations have trained more than 2 million leaders worldwide. Dr. Maxwell is the founder of EQUIP and INJOY Stewardship Services. Every year he speaks to Fortune 500 companies, international government leaders, and audiences as diverse as the United States Military Academy at West Point, the National Football League, and ambassadors at the United Nations. A New York Times , Wall Street Journal , and Business Week best-selling author, Maxwell was named the World's Top Leadership Guru by Leadershipgurus. net. He was also one of only 25 authors and artists named to Amazon.com's 10th Anniversary Hall of Fame. Three of his books, The 21 Irrefutable Laws of Leadership , Developing the Leader Within You , and The 21 Indispensable Qualities of a Leader have each sold over a million copies.

Organisational Communication


Easy and effective ways to communicate symbolically include using metaphors, songs, poems, quotes and jokes. Mementos, awards and logos are also part of symbolic communication as they allow employees to connect a fact with an emotion or sentiment.

For instance, an employee who receives a letter of commendation on the organisation’ s letterhead, knows that his contribution (fact) has been appreciated (sentiment) by the management.


Leadership communication needs to inspire, and numbers alone do not do this.Communication steeped in emotions too fails to drive the desired response. Moreover, purely emotional communication has no place in a business environment.What makes an effective leadership communication is a blend of facts and feelings.

Thursday, October 28, 2010

Speak For Smiles - Harish Manwani


Reproduced from a memorable Interview of Mr. Harish Manwani - Non Executive Chairman - Hindustan Unilever Limited, conducted by Ms. Shireen Bhan, CNBC TV18 for “Speak For Smiles”, a series of interactions with eminent personalities of India Inc. at Welingkar Institute of Management Development & Research in Mumbai. The guests choose to donate the proceeds of the function to their chosen cause for charity via Toofles Foundation.

Some of the insights shared by Mr. Harish Manwani during his initial interaction with Ms. Shireen Bhan – The statements would be in first person as delivered by him:

Q – Why marketing as a focus since you graduated?

A – Imperfection to the science of marketing is very exciting. Marketing is an externally oriented function. You cannot be taught marketing, you have to behave marketing. It deals with the connect with people and that’s what excites me the most.

Q – Lessons in marketing?

A – Last Mile Execution. What we learn in B Schools help us reach the last mile of the task, but beyond that, how we execute and finish the task is something which has tremendous learning. The last mile is the most difficult to finish, but it has the most learning. Most of my learning has been reverse engineered from what I learnt in the last mile.

Q – 3 most pivotal moments in your life?

A – First was when I became a father. It gave me a balance in life. It made me a more empathetic & kind manager.

Second was the time when I was promoted as the Senior Branch Manager. HUL for the first time hosted an All India Sales Conference. It was a big occasion, farewell to one of our chairman. All the branches had a target of closing out 100 thousand tones in sales. All the branches met that target except for mine. We had the option of last minute hushing up and meeting the target before we went for the conference, but I decided against it. There was a sense of disappointment in our people, but also a tremendous sense of pride, that we walked the talk. We were true to ourselves. It is very important for us to be true to ourselves and lead the way.

Third was when I left India to work overseas. I realised that we in India, sometimes, tend to become too inward looking. We need to be more open, understand different cultures, and learn different trends to understand what ticks.  

Q – According to you, what went wrong during the global recession?

A – To understand this, we must first understand the fundamental purpose of business. The fundamental purpose of business is to meet stakeholder needs. Leaders have off late been focusing only on the hardware of business, whereas the software of business is more important. The most important asset of an organization is its reputation. The objective should be not only to achieve growth at any cost, but delivering sustainable responsible growth. We must understand that life is not about quarters, it is about creating a legacy. Today, I sign my own report card!!


Q – Nowadays we see youngsters switching jobs every 3-5 years for career progression, you have been with the same company for more than 3 decades, what is your view on this current trend?

A – We must learn to evaluate our careers not on the basis of the jobs but on the basis of the roles we perform. I have had the opportunity of performing multiple roles within one organization. We must learn to understand the challenges. Now the times have changed. Today, I’m not going to reward you for your loyalty to the organisation. 30 years with an organisation and not having contributed enough is not tolerable anymore. I will reward you for commitment. Energy of our people, so today no-one is looking for loyalty, but we are looking for commitment. Same company can offer you varied challenges and that’s exciting. We must learn to evaluate our careers in terms of challenges. If you don’t feel challenged in the company, its not worth staying on.

Q – What is your source of intrinsic motivation?

A – Challenges around people give me a kick. The idea of surrounding yourself with people who are bigger than you is tremendous. Challenge around people by raising the game. There are two kinds of people – who create the vision. One who tom – tom it, show it in their annual reports and forget about it. The other actually live and behave their vision. Management by objective is now gone, we have to manage by vision. And vision should not be a target; it is a change in behaviours.

Q – Recently you have said that HUL is rejuvenating itself, does that mean that there was a sense of complacency that had crept in earlier?

A – All great endeavors and enterprises have to be rejuvenated, reinvent themselves. Market leadership is important but what is more important is thought leadership. Thought leadership means, people listen to what you have to say. We are on a deep pursuit to be thought leaders in all the categories we operate in. Great organizations are about doing something better, continued incremental growth. 700 million people use our brands daily. “Doing well by doing good” is our mantra. Just in the last quarter the amount of innovation coming from the HUL stable is phenomenal. We relaunched Rin, Lifebuoy, we have reduced cycle time, product to market time across the board. Our objective is to make our brands relevant to our consumers.

Q – As per report released by AC Nielsen your market shares have been falling across categories to your competitors like P&G, ITC etc what’s your take on that?

A – We (HUL) are market leaders in most of the categories we operate in. Most important thing in India for us is not market share, it is market development. We want to expand the market. Eg: Our current market share is 55%, even if we increase it by 1-2% its nothing great, but if we are able to expand the market by say 5% that’s the real win! Our biggest competition is non – consumption. We want people to consume.


Q – You have aimed at trebling your growth in 2 years, is this realistic?

A – It is certainly realistic and I’m confident it will be achieved, we are on course. We wanted to set ourselves the compelling growth path. Get people energized and working towards a goal. Create distribution capabilities, create energy, create behaviours and technologies. Today HUL owns some great proprietary technologies which will help us reach our consumers better. Eg: Wal Mart uses technologies which enable them to track the flow of their goods in each and every store across the board, we are doing something similar. There are exciting times full of opportunity ahead of us.

You always have a choice; you either look into the rearview mirror, or look ahead through the wind shield. We initiated programs like operation “Bushfire” as it would energize all our employees to connect with the consumers.

Q –What are your views on Innovation?

A – We need innovation, but bigger and bolder innovation. Its about juicing the innovation. Getting the most out of our innovations. For Eg: Lifebuoy is not just soap. It saves more lives than an entire portfolio of pharmaceuticals. 50% children get saved from diseases just due to handwashing. For us, every brand is a business by itself. It stands for something.

Q – Do you plan to get into some new categories like biscuits?

A - We have existing categories which have huge opportunities. The level of opportunity within our current portfolio is massive. For Eg: we haven’t yet scratched the surface in our foods & tea categories. The tea consumers the world over are now moving to tea bags. We understand that India is different, but sooner or later, this is bound to happen here as well. We must think local and act global. We must think of the local problems which our consumers are facing and then make all the efforts of making a global quality solution available to our consumer.

Wednesday, October 6, 2010

Management Tip - How to promote yourself??

The Management Tip of the Day offers quick, practical management tips and ideas from Harvard Business Review and HBR.org


This one is extremely relevant to all the young management students like me, hence shared.
"Explaining why someone should hire you, or introduce you to a friend who is hiring, can be uncomfortable. You need to sell yourself, but you don't want to sound like a salesperson. Instead of detailing what's so great about you, tell a story that covers the following:

1) Situation: Explain the problem or situation that you, your unit, or your company faced.

2) Tasks: Outline what your responsibility was in solving the problem.

3) Achievements : Make clear what you did to meet your responsibility.

4) Results: What happened as a result of your achievements? Did revenues increase? Did customer satisfaction improve? Use specific examples to pique your audience's interest."



Friday, September 10, 2010

Speak For Smiles - K.V. Kamath

Reproduced from a memorable Interview of Mr. K.V. Kamath conducted by Ms. Shireen Bhan, CNBC TV18 for “Speak For Smiles”, a series of interactions with eminent personalities of India Inc. at Welingkar Institute of Management Development & Research in Mumbai. The guests choose to donate the proceeds of the function to their chosen cause for charity via Toofles Foundation.



Some of the insights shared by Mr. K.V. Kamath during his initial interaction with Ms. Shireen Bhan – The statements would be in first person as delivered by him:

• It is certainly not important to be academically on top of the class.


• Leadership comes from across the class.


• I was never in the top 5% of the class.

• Nowadays, some of us have a fetish for data. It is however, not the data but the analytics that is more important.

• Debunking of pre set beliefs is critical

• Academic world needs to revisit the curriculum.


Eg: We studied trigonometry – never used in real life scenarios. But subjects like anthropology should be included in the system as it is greatly relevant across streams today.


• Young managers should guard against making “Mercenary Decisions”


Eg: My move from ICICI to Asian Development Bank


Things that the young students / managers must keep in mind before changing jobs:

1. How well will I be able to leverage what I have learnt?


2. Leveraging skill sets should be the single most important agenda


3. What are the economic returns?


4. Where will this take me?

• Unlike what some B School students think, career charting doesn’t probably work that early on. You must keep 5 year targets (Personal 5 year plans).

• In early 30’s question yourself where do you see yourself by 40 everything then can be mapped.


Q - Biggest challenge is the transition from the B – School to the real world.


A – Need to realise the relevance of what is taught to what is relevant. At this stage “Unlearning” is critical. Analysis is not the only factor for decision making.


Gut Decisions are very important. By Gut Decision I don’t mean, a baseless decision. It means not overanalysing.

Process of Gut Decision Making:


1. Collection of relevant facts


2. Analysing available facts


3. You digest those facts and reach a perception


4. Hidden persuaders are at work – listen to them


5. Softer issues need to be taken into consideration too


• When just out of the B – School, young managers over zealously want to change their entire organisation. Change is very difficult. You can’t be driving change. Atrophy sets in.


• Atrophy and no change (stagnation) go hand in hand.
• Standardization is extremely important in organisations.


• No same style presentation. Different font size, colour schemes etc are key.


Q - How did you manage change – Making ICICI computer savvy?


A – • Golden Handshake – get rid of the people who are a detriment to your change. Structures and people, who cannot adapt to change, need to be weeded out.

• People, Structure & Processes – All need to change


• “Organisational Structure Change is worst than a root canal”

• Interesting Gut Decision: Eg – Madhavi Puri Buch came one day and said we have only 150 branches. Long lines to deposit cash. How can we avoid this?


Her solution was, Let’s give our customers envelopes. They can put money in it, drop it with a person in charge and get it stamped by the collecting authority – Convenience. KVK completely against it. Security issues. How do we tally if the customer hasn’t lied to us – claim to have deposited more, actual money less. Litigation issues etc. Madhavi was confident. Backed her.

Took gut decision, it worked wonders. It became a runaway success. Then the whole process was adopted by all banks across.

Q - What has been your biggest learning in your illustrious career?

A – 1. You must choose your mentor carefully – Initial grounding very important


2. Technology – Ability to integrate & leverage technology for business


3. Sensitivity to societal changes – India moving from $1000 per capita income to $2000 per capita. We need to study how China made that journey. There are great learnings there.


Q – India playing catch up to China we’re at 8.5% GDP growth what are your views?

A – There was never a better time to be born in India.


• We’re doubling our per capital incomes every 6 years


• I don’t believe much in the GDP figures that are spoken about. Let’s assume:


GDP (9%) + Unaccounted Growth (2%) + Unaccounted Growth in the form of Black Money (2%) = We are definitely growing at 13-15% plus.

How else can you justify automobile sales growth of 25% YOY in a 9% growing economy?

Q – What are your views on “Succession Planning” – Eg: Tata’s


A – • It should be a well thought out process


• Nurture & give opportunity to your people


• They leave because of perceived better opportunity


• When they leave, instead of ill – will, give them a pat on their back and say thanks for your contribution. They’ll never forget you.


• “Flipside of challenge is opportunity”


• Several cases where senior executives find themselves hitting the glass ceiling. All positions are blocked, what do I do?


• Corporate scenario is like a carom board. In a given structure everything is set, but you do not know what moves where, great learning there. Movement of people opens up the carom board. Understand the talent pool, when people move, others get opportunity. “People moving never bothers me” only because I know I have a back up team.


Q – What are your views on women joining the BODs?


A – Investors are certainly happy. It should be on merit. It should not be forced upon just because someone is of a certain gender. Merit should find its own place. Having said that, there is no job that a woman can’t do today. We must realise that we as a society are still not at equilibrium. It will improve dramatically in future.

Q – What have been some of your most difficult decisions?


A – • Technology based decisions – No precedent available. We used mainframe servers, 10% of the cost at that time 10 – 12 years ago no-one used them at that time.

• Moving from a project finance company to a retail company – Large consulting firm advised us against it. We observed that per capita incomes were moving from $500 to $1000. Insight – People need consumer credit – there was a huge vacant space – we spotted the opportunity. BOD support + ability to execute. You need execution ability.

Q – Is it lonely at the top?

A – Certainly, as the buck stops with you but you have to take certain decisions. Respect and popularity happen as a consequence of your actions. Hard task master.


Q – What are your views on CSR? Do you think it should be made mandatory?


A – Society has a fabric. Keeping the greater good in mind is important for the survival of the business in the long run. You must listen to your conscience – create win win situations. Maximise everyone’s interests. No need to make CSR mandatory as it is gathering momentum on its own. We need to create an enabling environment.


Q - Formula 1 Racing & business – relationship?


A – • Speed is important in both. You need to drive at your optimum speed but you cannot go just beyond. If you do, you’re going to have a really bad fall.


• Pit stops are the best example of what can all can be done in 4 seconds. It should be a benchmark for further innovations. It is unimaginable what optimum team work can achieve.


Q – Who are the leaders who have inspired you?

A – Jack Welch & Dhirubhai Ambani (approach to opportunities was interesting)


“When you change orbits, it always creates friction”


Q – Family run businesses and succession planning?


A – • Introspection by the companies is a must


• At least 3 levels of leadership pipeline should be created


• 2 leaders should be available for each position


• At the top – people should have atleast 10 years of a clear run. Ideal is 15.

• Outsiders can advise – end of the day, it’s an internal process.

No regrets on what he has achieved so far. There isn’t anything he’d like to change about the journey.

Monday, July 26, 2010

India - A Historical Perspective

India – A Historical Perspective

Excerpts from the lecture delivered by Prof. Dr. Anil Naik on 2nd July 2010 during the PGDM Foundation Fortnight at Welingkar Institute of Management

Introduction of Speaker: Dr Naik is a Phd in Turnaround Strategy, a graduate of the first batch of IIM Calcutta and the first batch employee of Tata Administrative Services and has worked for 11 years as a direct reportee and assistant to JRD Tata. He is also a distinguished professor at JBIMS, Fox Business School and Welingkar Institute of Management. He is also an Independent Director on the BOD of several listed companies.

India – A Historical Perspective

3800 B.C. – Mesepotemia, todays Iraq, the capital was Babylon. They built the first stone arch. They used rainwater harvesting, principles of gravitational force. They built the “Hanging Gardens of Babylon” to protect water co ntamination in th e desert.

3100 B.C. – Egypt – They were the original mathematicians. They evolved practices of star navigation. Evolved shipping and navigation techniques. They discovered the number system from 1 to 9.

2500 B.C. - Bhaskaracharya developed 0 in India and added it to the number system

2250 B.C. – Mohanjodaro and Harappa were built. Town planning introduced. Canal were built for the first time ever. Sea trade took shape. “Lothal” – A dry dock set up to build ships. Ship building began as an activity. Lothal is what we today know as Karachi.

1500 B.C. – Aryans came to India from North Pole. Average height of Aryans 6ft 4 inches. They came from Scandenevia. Aryans were highly innovative, lived in difficult terrain. They came down from the North Pole. One sect went to todays Germany, 1 sect to todays Russia and 1 to Persia. Their language was Sanskrit. “Shvetanal” = Beauty in Sanskrit, hence Russian name “Svetlana”

Aryans worshipped 3 Gods:

1. Fire – Agni

2. Natural Justice – Varuna

3. War Lord – Indra

Wherever Aryans went, they contributed significantly yo the community if they were welcomed. If not welcomed, they fought local resistence. They fought the Turkish tribes in Persia.

In India, they entered Punjab. Patiala welcomed them. They developed the Punjab region immensely.

Hindus worshipped 3 Gods too:

1. Brahma – The creator

2. Vishnu – The preserver

3. Mahesh – The destroyer


• The Chinese brought rice to India. Rice was initially cultivated heavily only in the North East and the East of India.

• Alexander the Great sent his ambassador “Megasthanes” to India. He was the first official ambassador ever sent to India.

• Megasthanes wrote letters to Alexander about the happenings in India. This collection of letters was called “Indika” – Meaning the Unknown Strength of India.

• When Tata Motors was looking out for a name for its car which was fully made in India, it called it “Indica”

• Maurya Dynasty also had a golden period of rule and influence on India. Chandragupt Maurya became a king at the tender age of 18. Magadh was the kingdom and Patliputra was the capital.

• Kautilya Chanakya was his advisor and backbone. Chanakya wrote “Arthashastra” in Sanskrit which became the first ever written book of Principles of Management. Many centuries later Peter Drucker – the father of modern management replicated some of the same principles in his Principles of Management, but in English.

• Chanakya – 323 BC said the same things as what Peter Drucker said in 1951

Vision - Prabhushakti
Mission – Mantrashakti
Motivation – Utsahshakti

Pillars of Governance:

Dharma – Ethics
Nyaya – Justice

Executive Officials – Chanakya had advised that there should be only 4 reportees to the King / CEO:

Mantri – Minister
Purohit – Chief Justice
Senapati – Defence Minister
Yuvraj – Prince

Chanakya also laid down qualifying standards for Executives:

Drudhachitta – Concentration
Shilavan – Character
Pragna – Thinking Capability
Daksha – Vigilance
Vangmi – Communication Skills

710 A.D. – 1st mosque built in India, outside Jaisalmer by the Arab traders who came to India during the period of Ramazaan, when they felt the need to pray.

21st May 1948 – Vasco De Gama landed 23 kms north of Calicut. He had 3 ships. 1 ship was damaged at Mauritious, it took him 6 months to repair the ship and hence reached 6 months behind schedule. His sailors and crew almost revolted. But Vasco saw the importance of Spice Trade, and stuck to the task.

Columbus landed at Barbados. Against conventional wisdom, he went towards west from Europe to find India but landed up at barbados. Hence it is called “West Indies”

1510 A.D. - Portuguese came to Goa. Portugal in a historic deal sold their spice trade to the Dutch who were famous for their International Trade. The king of calicut let the Dutch take away saplings of indian spice plants joking that the Dutch cannot do anything with it, they don’t have our weather or our soil. The Dutch then planted those saplings in Indonesia which was their colony with weather and soil similar to India and built an International Spice Trade empire. Today Indian spice trade is worth Rs. 600 crores, whereas Indonesia earns Rs. 1800 crores through Spice Trade.

31st  December, 1600 – East India Company was brought into existence by a statute in England.

1603 A.D. – East India Company which was started essentially as a trading company opened 2 offices in India in port cities of Mumbai and Surat.

October 1756 A.D. – Robert Clive of East India Company defeated the larger army of Siraj Ud Daula in the famous Battle of Plassey. The French established their settlements in Bangalore, Chennai and Krishnanagar.

1613 A.D. – The British Government took over the Each India Company.

1670 A.D. – The British Government took over the Indian Government.

• Slowly but steadily the British colonists wanted to exit India, so they sold their mills and businesses to local traders. The local traders therefore became Industrialists. The British sold the cloth mills to “Mafatlals” of Kheda District in Gujarat. “Singhanias” used to be tailors who stitched the uniforms of the British soldiers. Sir. Victor Sassoon, the British textile tycoon sold his Raymond mills to Singhanias. The major problem in India, which we notice till today is lack of long term vision emanates from the fact that most of the current industrialists have not originally been industrialists with long term business vision. They were traders who eventually became industrialists with acquired vision. The Indian industry went into the hands of the trading community.

Trading DNA – Short Term View

Industralist DNA – Long Term View

• Indian political ideology post independence was highly socialist. Highly influenced by Russia. Developed public sector. Developed rural and small scale industry. The policy was, whatever was left out from the scope of public sector and small scale industry could be licensed out. This led to the rise of License Raj.

• Import of technology available only through the countries which accepted rupee in currency viz. Russia, Czechoslovakia, Hungary, Yugoslavia, Bulgaria. Hence for a long time, cutting edge technology never entered India.

• Socialist era lasted from 15th August, 1947 to 31st October, 1984 till the day of Indira Gandhi’s assasination. Then Rajiv Gandhi assumed charge. UN invited Rajiv to address the member nations as the youngest PM. Rajiv addressed NRI’s in the US. He spoke about developing a new age India. 2 NRI’s who attended the said meet, came back to India in support of Rajiv. 1 of them was the Vice President of Hewlett Packard, came back and started Hindustan Computer Limited (HCL) – Mr. Shiv Nadar. He also started NIIT for computer Education. 2nd One was Mr. Sam Pitroda who was the lynchpin for Indian Telecom Industry.

24th July, 1991 – After Rajiv’s assasination, Narasimha Rao became the PM. Manmohan Singh was his FM. The First Economic Policy announcement was made and hence began the process of liberalisation.

• Hindustan Unilever Limited – Established in India in 1934. Initially led by only Dutch and British expats. Their only focus was on the urban population in India. In 1961, the first ever Indian CEO was selected in Mr. Prakash Lall Tandon. He immediately shifted the focus to the inherent potential of rural India.

• With this, “Lifebuoy” the first soap in red colour was born to fight ascorbic acid. The rural population understood red as the colour of danger. They saw red on traffic lights, on railway crossings and understood not to take the cattle across the tracks. Hence Lifebuoy was made in red and it found an instant connect.

• Tata’s observed that the cheapest 4 wheeler in the market was Rs. 2, 34,000. The cost of a 2 wheeler was Rs. 80,000. Therefore they decided to bridge the gap and hence the idea of the Nano car at Rs. 1 lakh was conceived.

Quotes to remember…

Quotes to remember…

 

- “The illiterate of this century will not be those who cannot read and write, but those who cannot learn, unlearn and relearn.”

- Alvin Toffler

- “Conflict is always avoided, when the stronger side enforces the status quo, and the weaker side, does not attempt to change it.”


- “Information is not merely transmitted, but is constructed in the mind of the reader who has read it in a given context”


- “You can fool some people sometime, some people all the time, but not all the people all the time.”

- John F Kennedy


- “We always overestimate the change in the next 3-4 years, but always understimate the change in the next 10 years”

- Bill Gates

- “I do not feel obliged to believe, that the same God who has endowed us with sense, reason and intellect has intended us to forgo their use.”

- Galelio

- “When a man jumps out of a car to open the door for a woman, either the man is new or the car is new.”


- “The best way to gain anything is to loose it.”

- Swami Ramtirth

- “Wherever there is convergence, there is power.”  Convergence = Power

- “What is m y knowledge compared to my ignorence.”

- Sir Isaac Newton

- “Truth that is independent of individual is called science.”


- “That which cannot be measured cannot be managed” – Principles of Management


- “Ability to see what others don’t see is called insight”


- “The more successful we become, the more difficult it is to change.”

- Mark Effron

- “Education is what you remember after you have forgotten what you memorised.”

- “Productivity is a mindset”

- “Aim to die young, as late as possible”

- Robert K Cooper

- “Rats who leave a sinking ship, are the rats who can swim… talent moves, it will find a way.”


- “People perform on what is measured and how frequently it is measured”


- “Leadership is who you are when no-one is watching”

Sunday, July 18, 2010

Immutable Laws of Success

Reproduced from a memorable session delivered by Mr. Pratapaditya Chakravarty (Paco) - Head - EDGE Learning Academy and Head - Investor Education at Reliance Capital Asset Management Company during the "Design Your Future" - The Foundation Fortnight, an induction seminar of the incoming PGDM 2010 - 2012 batch of Welingkar Institute of Management Development & Research in Mumbai.

The Immutable Laws of Success....


1. Nothing of what happens inside matters… unless it matters to someone outside.
- Focus towards clients / customers


2. Avoid “But”, “However” and “No” in your communication… creates positive relationships, mends broken ones


3. Don’t doubt… helps avoid negative perceptions and builds a clear perspective.


4. Don’t bad mouth… It just leaves you with a bad mouth.


5. Shun mediocrity… It tends to make a mediocre of all


6. Stand by your people… for they weep when you cry.


7. Build your team’s equity… helps build your personal equity.


Personal Equity – goes beyond company. Career long. If you want to be an entrepreneur / CEO… then you’ve got to find your CFO early on.


8. Live what you preach … In living it, you epitomize what you preach


9. Don’t run away from what you do… who said it was going to be easy?


10. It doesn’t matter what you think of yourself… what matters is what others think of you.


11. Skill x Will = Competence


12. Everyone rises upto their level of incompetence.


13. Education is nothing but discovery of ignorence.