Business Mandate fountainhead of excellence
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CONTENTS
Good company...
Women‐led start‐ups
Women in leadership
Manufacturing in India
Champions...
The New Statement...
EDITOR Gp Capt R Vijayakumar ﴾Retd﴿, VSM
MADRAS MANAGEMENT ASSOCIATION
READERSHIP OUTREACH
Management Center, New No.240 Pathari Road
Gp Capt Dr R Venkataraman ﴾Retd﴿
﴾Off Anna Salai﴿, Chennai 600 006
Sundar R Vakeeswari M DESIGN
D Rajaram, Tayub Refai
Ph:044‐2829 1133 Email:mma@mmachennai.org | mandate@mmachennai.org www.facebook.com/mmachennai
Business Mandate fountainhead of excellence
EDITORIAL
Gp Capt R Vijayakumar (Retd), VSM
Implementing the Learnings from 2020
T
he Pandemic is now behind us—almost. The year 2020
out of control. Professionally, we had to unlearn our standard
—despite innumerable challenges—had left us with
process of reaching out to a large number of our members and
valuable lessons. The world is not the same, and nor
focussing on what works in the present and adapting it
do we want it to be after everything that we had endured and
quickly. Thank you, dear members, for your understanding
learnt and indeed relearnt about what really mattered to us.
and support.
The outlook changed, as serving people’s interest became The Mapping Policy: A Game Changer
more important than serving one’s own. In this context, MMA organised its flagship annual convention on the theme “India’s Turning Point: Challenges and Opportunities” virtually on 26th Feb 2021. Technology and digital revolution became critical for crusading through these difficult times. The growing evidence and sentiment that empathy is the leading skill for leaders in 2021 is right on the money. The era of the empathetic leader is now, or never. The convention was watched by over 30,000. If you missed
domestic companies to steal a march over global giants and multiplying businesses now valued at over Rs. 30,000 crores. The new policy demonstrates the government’s intent to support Indian companies. The policy will unlock huge geospatial potentials, and it’s the right time for Indian start ups to grab the opportunity and move forward. Now, Google Map could be challenged in India. In this context and to encourage young entrepreneurs, MMA
watching it, then click here to watch… and get inspired. The year 2020 had been a roller coaster ride for each one of us. Let me just say it that, personally, I had to unlearn planning ahead of time and be okay with certain aspects being 5
India’s new mapping policy can be a game changer, facilitating
MARCH
launched a new series guided by Mr V Balaraman and Mr Shankar on “Startup India: Opportunities & Excitement,” which will share insights from successful startups. The first in the series, “How to Print a Rocket—Agnikul Cosmos—A 2021
Business Mandate fountainhead of excellence
Fireside Chat with India’s Own Elon Musk” featured Mr
able to return to work, severely impacting their livelihood.
Srinath, Cofounder and CEO, Agnikul Cosmos, in
In this context, the Convention Committee headed by Dr
conversation with Mr Shankar, Founder, CAMS. I hope you
Ranjini Manian and the knowledge partner Cerebrus
will enjoy listening to this inspiring story as much as we
Consultants are putting together a great convention with a
enjoyed putting them together for you.
galaxy of outstanding speakers. The convention content and
Click to watch Agnikul’s inspiring story.
structure have been finalized with great care, keeping in view the aspirations and expectations of our women delegates. The
Role of Next‐Generation Business Leaders
aim is to bring together, viewpoints and ideas that are
With big corporate houses adapting new technologies and
reflective of the changing dynamics. The theme is intended to
business policies, the role of nextgeneration business leaders
lend a platform to the many different, yet many same stories
has undergone a big change. BSchools will have to adapt
that women have, highlighting the importance of women in
globally acceptable choicebased experimental learning and
leadership roles and how women’s leadership can be fostered,
industry oriented casestudybased teaching and learning
promoted and secured for the next generation. The
pedagogy followed by world renowned BSchools.
participation at the MMA Women Convention is
In this regard, MMA organized a discussion with Dr
complimentary, please do join and derive the benefit out of
Harbir Singh, professor, The Wharton School, USA, Dr G
its deliberations.
Raghuram, Former Director, IIMBangalore and Dr L S
Voice of MMA
Ganesh. They discussed a number of crisisdriven
World Radio Day on 13th February seems to have slipped past
opportunities that make it possible for institutions to reset
without any notice. It is most unfortunate that we seem to
their strategies, policies, programs and practices in the
have forgotten the magic this important tool offered us—as
contemporary setting. You can hear thought provoking views
information, entertainment and instructions. Many of us grew
of the panellists on how business education will look in the
up listening to popular programs on the radio. The MMA
future. Click to watch.
Radio, “Voice of MMA,” is a popular medium where you can listen to array of thought leaders sharing their insights on
MMA Women Convention
various management subjects.
Come March, usually it is time again for our women members
The radio is truly one of man’s best companions.
to interact with women thought leaders, entrepreneurs and
Stay safe, stay healthy, and happy reading! Everything
corporate executives at the Annual MMA Women Managers Convention. The event is a celebration of the spirit of women
we do, we do it for you.
and the many diverse roles that women play. Due to the prevailing situation, the MMA Committee has decided to host the Women Convention virtually on Saturday, 27th March 2021 on the theme “The New Woman of Today.” During the global lockdown, while some were able to continue with their work, studies and healthcare online, there were many who struggled to meet their basic needs, thanks to the digital divide. It is understood over one million women will never be 6
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Business Mandate fountainhead of excellence
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Business Mandate fountainhead of excellence
I
worked for three decades in
entrepreneurial things like hiring
had become the largest spirits company
professionally run companies like
summer trainees and then making them
in the world in terms of volume, almost
Pond’s, Levers, Cadbury (which
permanent and paying the highest for
equivalent to what Diageo sold in 180
became Kraft and later on Mondalez),
oncampus recruits to get the best
countries. USL had nearly 50% share by
before I arrived at United Spirits
people. We were certainly ahead of our
volume in the Indian spirits market.
Limited (USL) or Diageo.
time.
United Breweries Limited with the
Pond’s
was
a
professionally
managed company with a lot of entrepreneurial zeal. How else would you describe a company whose main business was talcum powder and cream, and was venturing into businesses related
to
leather,
thermometer,
mushroom and tennis racket?
Kingfisher brand had half the beer Joining USL—the Spirited Leader
market in India. It was no mean
I took on the USL job with a lot of
achievement whatsoever.
professional management experience. When I contemplated on this role, both the companies in the UB Group were formidable in the alcoholic beverages space. Dr Mallya, a second generation promoter had built on the legacy of his
In an age of core competence and
father, who was somewhat of an
strategic focus, it is remarkable what we
understated entrepreneur. We didn't
did in Pond’s in terms of the businesses
hear much about Vittal Mallya as we
that we got into. Of course, there was a
heard about Vijay Mallya. USL alone
need for foreign exchange. We did many 11
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For both these companies, the promoter was very much the brand ambassador. At that time, the alcobev industry had a questionable reputation. People had doubts about business practices and policies. With that kind of perception in my mind, I walked through the doors of USL on October 1, 2013.
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Obsessed With ‘No.1’ and ‘Volume’
by conducting huge M&As, like that of
I saw a company with massive
Shaw Wallace and integration of
operational and execution capability—a
Herbertson and McDowells into one
Where People, not Systems Mattered
company that was obsessed with volume
company. This created a complex
The company had largely men, a sharp
and becoming number one in the world.
monolith with more than 100 brands,
contrast to today's mantra of diversity.
It was a company with brands that we
often overlapping each other. There
The Management Committee of 20
all have grown up on—McDowell’s No1,
were 94 factories in India.
people didn't have a single woman. The
miserable. Their eyes were moist.
company couldn't attract people from
Royal Challenge whisky, Signature whisky, Bagpiper whisky and many
Traditional Specialities
outside the sector. And certainly, they
more.
USL had a lopsided overhead structure.
couldn't attract women to come and
Traditional promoters rarely ask people
work in the alcohol sector. I also saw a
to go. Loyalty is everything and they
huge lack of systems, controls and
have
of
governance. There were very few
management. One promoter told me
processes in place, even for critical
that they don't want anyone's curse or
functions
bad omen. They may sideline people but
resources and innovation. Things were
will not ask them to leave. I saw a few
people dependent rather than process
smart people and the rest were generally
or system dependent. People couldn't be
average. This was in sharp contrast to
replaced as what they did was not
what I had seen for three decades in the
chronicled anywhere.
We stated in our vision that we should keep the best of the past and embrace the best of Diageo. We had to create an entity that had the best of both. The first journey that we embarked on was the journey of compliance. It was a company that was street smart. There were very few meetings. Most decisions were taken just by a phone call. Even major decisions were
a
paternalistic
style
like
planning,
human
companies that I worked for. I saw
Sales and Finance were the only
people who had spent their life in this
powerful functions—Sales to become the
sector, doing the same job for 20 years.
Number 1 company and Finance to
Someone who joined as assistant
control the money. All other functions
manager became Vice President but he
were relatively toothless. There wasn't
was doing the same job. Every year, he
even a qualified lawyer for a company of
got an increment and his salary went
this scale heavily dependent on the
up. Salaries were generally poor, much
regulatory environment. The culture
below industry benchmarks.
was hierarchical. There were classical
taken if one man wanted it, like the
The alcohol industry was a bit like
symbols of seniority. Even elevators
purchase of a cricket team, which is an
Hotel California—where ‘you could
were reserved for senior people. There
enormous asset in a media dark market.
check in at anytime but you can never
was reserved parking and huge panelled
I wonder what a multinational company
leave’. Despite all this, they were loyal
cabins for a few senior people who
would do if a similar proposal is put up
to the promoter, a trait which can't be
worked in UB Towers in Bengaluru.
to them?! As there was a quest for
seen easily in professional companies.
Except the promoter, no one else had
volumes, many brands were positioned
When Dr Vijay Mallya was stepping
real power. Everyone looked up to the
at a lower price level. USL was formed
down in 2016, half the company felt
promoter as the benefactor. They almost
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Business Mandate fountainhead of excellence
revered the ground that he walked on.
Everything
professional
relevant to the younger generation. We
He was a man with a largerthanlife
multinational company would do
upgraded their offers and imagery, so
image. He had great vision and
happened. We stated in our vision that
we could charge the rightful price and
ambition. He was a remarkable person.
we should keep the best of the past and
we didn't have to discount the brands.
He had great risk taking ability, high
embrace the best of Diageo. We had to
intellect and huge charisma. He led the
create an entity that had the best of
From Volume to Value…
big thinking; everyone else obeyed and
both. The first journey that we
We set up an innovation process and an
executed. Diageo wanted to buy this
embarked on was the journey of
innovation team. We transformed sales
company because of its formidable
compliance.
hard.
from volume to value. We changed the
position in one of the most exciting
Employees got frightened when they
mindset of the sales force from push to
markets in the world. If it were not for
saw people being asked to go. The
pull. We halved the number of factories
the collapse of Kingfisher Airlines, this
organisation suddenly became risk
to 47. We halved the number of white
transaction
averse. They passed everything to their
collar people in the company. We
superiors for approval.
created a muscle for cost savings and
may
never
have
materialized. After wooing Vijay Mallya
that
It
a
was
very
for over a decade, Diageo bought the
Out of the 150 brands in the
company on July 4, 2013. I was brought
company, we chose 15. As all
in a few months later.
multinational do, we decided to focus on
The Changes Post‐Diageo
brands. We renovated those brands and made them more contemporary and
What happened after Diageo took over?
elimination of waste as part of productivity. We changed the way business is done in the industry. My proudest legacy is that I established that business can be done the right way in the alcohol industry and that one can be
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an ethical marketer of alcohol. We
business. We were stuck with KPIs and
CEO said that what the promoter
changed the way we engaged with the
performance reviews. It’s often about
needed was a Secretary and not a CEO.
government. We put in place systems,
tackling people who are nonperforming
So, he left. The promoter, however,
processes and governance. The board
rather than recognising those who do
missed an opportunity of leveraging the
was completely revamped.
well. This was a challenge in all the
best of both.
We integrated the cricket team and its brand assets much better, with the mother brand of Royal Challenge whisky. I must admit that we are unable to deliver the performance of all the other 7 teams of IPL which are promoter owned! We transformed the culture to be more open, more inclusive and non hierarchical. We acquired the ability to attract people from the broader FMCG space. We stepped up the quality of talent, especially by hiring women. We made a big difference in diversity and inclusion in the company. Finally, we enhanced profitability and showed how share could be won strategically rather than through discounting and M&A alone. Losing the Spirit of Entrepreneurship But we have lost something along the way —the true spirit of being entrepreneurial and pioneering that Dr Mallya had built in that company. Decisionmaking became seriously slow. There is now a lot of analysis and sometimes paralysis. We have lots of meetings and a lot of bureaucracy, due to process intensity. All these crept in while we tried to transform the company. We struggled to reward the
companies that I worked previously —particularly, Unilever and Cadbury. We used the Covid crisis to address some of these issues.
I have also seen promoterdriven companies becoming too professional and losing their creative spark and risk taking ability. While the founder stays,
Covid and the Forced Changes In the last six months, we suddenly became focussed. We started taking
the founder's mentality is lost in the company. They become victims of the investors and stock price.
much quicker decisions. We introduced
I have found them doing with ease
flexi working. Engagement levels
an M&A for 500 crores, leveraging their
despite being on virtual mode have
balance sheet, rather than building
never been higher. There has been some
something from scratch, investing 50
improvement but still I don't think we
crores a year for 10 years, which will
have an entrepreneurial and a risk
impact their P&L.
taking culture in the company. That’s the USL story.
I have also seen a promoter in a media company who was very clear why he was bringing in a professional.
Jet, Set and Go I want to touch upon a few more examples from other companies. Jet Airways was brilliant and made so many Indians proud. It was the promoter who built and created the airline with obsessive focus on delighting the customer. At one time, he brought in a great CEO from an FMCG company.
He kept highrisk and judgmental decisions like which movie to produce or invest in, to himself. But he handed over processes, controls and systems to the professional manager that he hired. This promoter was selfaware enough and had the ability to let go of what he felt that he was not good at.
Within months, he got frustrated
So it's not about one or the other.
because he spent months sitting outside
For companies to sustain over a longer
bank managers' rooms to battle fund
period of time, you need a combination
related issues. Every morning, he got a
of both. The art is in getting the balance
slip from the promoter about what he
right and in making both flourish in one
wanted the CEO to do for the day. The
company. This is easier said than done.
entrepreneur and the risktaker in our
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human resource development and
today management. The entrepreneur
several other governance practices.
must be available for wise counsel.
Roles, orientation and focus of professional
I
have had 35 years of professional management experience during which I had the opportunity to
interact with several entrepreneurs in India and abroad.
managers
entrepreneurs
are
not
and mutually
exclusive. Professional managers too need to embrace innovation to build an innovative, economic organization for longterm success; and entrepreneurs need to focus on sustainability,
Successful entrepreneurs are very,
efficiency and nurturing talent.
Key Learnings from Real‐Life Experiences in India and Abroad I was part of a financial services company. This business is highly regulated. It involves processing and transacting trillions of rupees of value. It must have a high degree of consistency and accuracy as well. This business
very special people and are a tiny
also
involves
a
huge
percentage of the population. They are the driving force of the national economy and society. They bring in a unique
mindset,
exploring
the
unexplored, taking on all the associated risks with them and chalking their own path towards success. They are in control of their destiny. They are very energetic,
creative,
passionate,
committed, resilient and persistent. As the enterprise evolves, successful entrepreneurs build the four pillars that will sustain their organization, viz., values, culture, integrity and ethics. When the enterprise becomes big, it becomes a social institution owned by several stake holders including clients, customers,
employees,
regulators,
government, banks, auditors and the society in general. During this phase, successful entrepreneurs proactively induct professional managers into the company. They accept and imbibe the creation of systems, processes, metrics, measurement, controls, evaluation,
I
have
completely
seen
entrepreneurs
handing
over
their
organization to professionals. This is rare, though. In such cases, if professionals
had
worked
with
entrepreneurs for a reasonable length of time, both would have a shared vision, an aligned purpose for the company and broadly agree on the medium and long term strategies. The manager must have a set of people to drive innovation in the organization. It is equally important for the entrepreneur to periodically check and monitor the results of the organization and not interfere with day 15
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responsibility of compliance and risk management. When the capital market was experiencing a heady growth not so long ago, this company was having a 50% yearonyear organic growth with the existing set of clients. On top of it, the company had an opportunity for inorganic growth in the form of acquiring many clients who had legacy business in the same industry and who were willing to adopt this company as a service provider, all within one financial year. This was an extremely daunting task but thanks to the entrepreneurial
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leadership and the prevalent culture, the
by working with a large number of
business. The professional managers
company took on the challenge and
temporary employees and vendors 24/7.
over time turned into entrepreneurs.
within a matter of three years the
People came together and achieved the
The professional management team
business metrics grew by 12 times.
task to the satisfaction of the clients and
developed an entrepreneurial approach
regulators.
of growing mushrooms in the cool
Entrepreneurial culture on occasion stretches resources to think out‐ of‐the‐box and deliver extraordinary results. This company had highly documented processes and controls. These were needed in order to achieve consistent outcomes.
Entrepreneurial culture on occasion
climes of the Nilgiris without using
stretches resources to think outofthe
power. Today, mushroom cultivation is
box and deliver extraordinary results.
done in a notsocapital or energy
This company had highly documented
intensive manner.
processes and controls. These were
To summarize, skills and talents of
needed in order to achieve consistent
both entrepreneurs and professional
outcomes. The culture enabled the
managers are relevant to varying
employees to empower themselves in
degrees depending on the lifecycle of the
adverse conditions. During the 2015
business. It will be prudent for an
Chennai floods, it had around 200
organization to adopt a judicious mix of
employees who were housed near the
both—professional and entrepreneurial
company and they worked 24/7. These
styles of management.
people had to reinvent the business processes to ensure business continuity and completion of essential operations.
They managed it amazingly well. It has Entrepreneurs bring in a strong family culture to the organization transcending
normal
employee
response. In capital markets, new offers of securities to the public will result in impact load to normal business. During such times of peak offering of bunched up public offers, the company had a work load necessitating nearly 60% additional human resources at short notice for a few weeks. These public offers need to be managed within regulatory timelines while maintaining a high degree of financial accuracy. Thanks to the entrepreneurial culture, the company was able to manage them
been documented as a successful case study by SAGE Business cases. I have also come across the creativity and entrepreneurial zeal of Italian garment manufacturers who specialize in selling high fashion winter
I
worked for two entrepreneurial and two professionally driven companies. After that, for over 25
years, I've been working with owner
garments. They source cut pieces and
driven companies as a consultant. Let’s
residual leather at cheap rates and come
look at the lifecycle of a company.
up with nicely designed leather vests for men and women!
Most entrepreneurs start their companies in a small way. Even HP was
In the late Eighties, I was part of a
started in a garage with a capital of 500
professional management team in the
USD. Michael Gerber, an expert in
business
button
small business coaching and strategies,
mushrooms and processing for US
says that in every business organisation,
markets. It was a very capital intensive
there are three types of people:
of
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Business Mandate fountainhead of excellence
1) Entrepreneur 2) Manager 3)
set up the company and its systems.
team and closely monitors the company
Technician. The technician knows his
Entrepreneurs are passionate about
performance. Ex: Asian Paints, Pidilite
job and he does the job. Ex: a chemist or
their goals and they expect the same
and Dr Reddy's Laboratories. Here, even
an accountant. Managers coordinate the
mindset from everyone, which is a tall
the transition from one CEO to another
work of several technicians. The
order. Organisations are built with
happens smoothly and often goes
entrepreneur sets the goal.
ordinary
unnoticed.
Work on the Business In the initial stages of the company, the entrepreneur doubles up as a manager
people
who
deliver
extraordinary results. Professional
To sum up:
managers are adept at handling
•
ordinary people.
Entrepreneurs need to bring in professional managers who will deliver results.
and perhaps as a technician too. Michael
Many entrepreneurs tend to
Gerber says, “Don't work in the
bootstrap; they have a frugal attitude to
business; work on the business.” As the
business and are not ready to hire the
organisation progresses, there is need
highsalaried. Such entrepreneurs need
those ideas and pursue those
for systems and processes and it is
to
which are beneficial to the
better to hire professional managers to
Entrepreneurs are interested in the
undergo
a
mindset
•
many new ideas. The CEO has the responsibility to moderate
change.
topline. They want market dominance.
company. •
a
dose
of
talent
from run
organisations by paying the
if the business they run loses relevance Kodak),
attract
professionally
the company to professional hands and (e.g.:
Entrepreneurs must be ready to
When entrepreneurs completely leave
If the professional management team looks at an opportunity and tries to implement a new opportunity without its own personal financial risk, then it is called intrapreneurship. 3M is a well‐known example for this. They encourage employees to spend 20% of their time in creating new products.
Entrepreneurs come up with
right salary. •
The CEOs joining owner
entrepreneurship is needed for the
driven companies must be
business to survive.
ready
organisation
If the professional management team looks at an opportunity and tries to implement a new opportunity
create and
an build
systems and processes. •
The CEOs must be transparent with the owners and brief
without its own personal financial risk, then it is called intrapreneurship. 3M is
to
them periodically. •
The CEO must be a buffer
a wellknown example for this. They
between the owner and his
encourage employees to spend 20% of
team. The owner may, at
their time in creating new products.
times, be whimsical and the CEO must support his team in
Very few companies are completely professionally managed in the world like
critical moments. •
L&T or the branches of Unilever, where the original promoter is no longer
In the course of time, CEOs must become intrapreneurs.
•
The professional manager
visible. But there are many cases where
must multiply the vision of the
the entrepreneur hires a professional
entrepreneur.
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Business Mandate fountainhead of excellence
A
lot is known and written
in leadership positions not just in
women to come back into their working
about women in leadership. I
traditional part of Corporate India, but
roles after they have taken some time
am going to share some
also in other adjacent areas like law
out for personal reasons. Organisations
emerging perspectives from a corporate
firms, investment banks and even the
are coming up to create networks of
world angle and from my own personal
startup ecosystem.
women. All these look like a thousand
experience. The Big Shift and New Frontiers There has been a big shift in corporate India in the last decade or so. Working for 28 years, I have witnessed this first hand. The topic of ‘women in leadership positions in corporate India,’ has now come into popular and public discourse, carrying a lot of attention. There is much thinking in board rooms of progressive companies about how to strengthen women leadership. Over the last ten years, women are
In my own industry, there are
flowers blooming. While we have reason
women bartenders who are coming up
to be optimistic, we can't shy away from
in other parts of the world. We don't see
the fact that there is still a lot to do. The
that a lot in India but it is happening. I
journey has only just started. The
also heard about women bouncers in
direction of travel is right and we need
restaurants and bars. These are new
to keep going at it.
frontiers that women are conquering. We know about women in the armed forces, women pilots, and women in sectors such as construction. The work that coaching institutes like CFI have done for women has played a positive role.
The Leaky Bucket Syndrome If we look at what is happening in India, we see the famous leaky bucket syndrome. Nearly 50% women are in the tertiary educated graduates’ space and 25%
women
are
entry
level
professionals. But only 4% are in senior
There are initiatives to attract 23
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Business Mandate fountainhead of excellence
society in which we are.
A recent study suggested that nearly 80% of women lack confidence at work. Coaches have a key role to play and address this malady and suggest what we can do to really let women lean in
a challenge for them. The imposter
The contribution of women to
syndrome makes women shy away from
India's GDP is just 18% and it is the
taking ownership and responsibility and
second lowest in the list of countries.
getting the pride of achievement. To
Thailand and Vietnam fare at 40% and
change the trajectory of women in
China at 41 percent. So there is a
leadership roles, women must take
problem at a national level and that's
responsibility for themselves and not
again a mirror to what is happening in
feel guilty about ambition and drive. So
broader society. Unfortunately, it is a
there's a lot that women themselves
vicious and a reinforcing cycle of gender
have to do as well.
inequality in our society, which then
Achieving success on gender
leads to and feeds on economic
diversity in corporate India and getting
development and attitudes and beliefs.
more women in leadership positions
All these reinforce each other to result
requires leaders, managers, employees
in gender inequality at work.
and importantly women themselves to
A recent study suggested that
change the way they behave. This is not
nearly 80% of women lack confidence
easy and the process takes time. To
management. Only 11% are women
at work. Coaches have a key role to play
achieve this, I have come out with ten
board members. That is a cause of
and address this malady and suggest
simple commandments.
concern. There is a Companies Act
what we can do to really let women ‘lean
guideline which requires at least one
in,’ as Sheryl Sandberg famously said.
woman as a director on listed companies. But there are many companies which still don't have that one woman. In many of the family owned companies, women board members are drawn from the family
Top 3 Obstacles for Women We have heard that inhibitions keep
1. Believe that diversity is at the
women back. The top three obstacles for
heart
women in reaching senior roles were
decisions.
cited in a study as:
rather than independent professional
a)
Juggling worklife balance
women.
b)
Lack
of
visible
internal
opportunities, and Our Business is Our Mirror Having said that, India Inc., is now willing to pay much more attention to fix the gender diversity problem. But we have miles to go. Fundamentally, business and other places of work will be a reflection of the country and the
TEN COMMANDMENTS FOR WOMEN AS LEADERS
c)
of
better
business
Organizations and people must truly believe that the more diverse the people are (diversity not just in gender but
Lack of confidence in their
disabilities, sexual orientation, ethnicity
abilities
and so on), the better you will get at
Some of these come from social
business decisions. When we have more
conditioning as well. More than half the
diverse people around the table, we will
respondents in the study said that
get diverse perspectives, opinions and
managing the negative mindset and
views, lively discussion, heated debate
dealing with the imposter syndrome is
and challenge.
24
MARCH
2021
Business Mandate fountainhead of excellence
Such a process leads to looking at
from the top. As culture in an
target, it's very tempting and easy to fall
any business situation, issue or
organization is driven by the CEO and
back on and say that we really tried but
opportunity through multiple lenses,
the top team, the same is true of
it was hard to get women. Targets hold
leading to better business decisions. The
diversity. It should not just be a priority
us to account. If you make them
collective and cumulative impact of
limited to board room or CXO table
somewhat public, it helps to put a
many better business decisions will lead
discussions, but it must be visible. The
constructive tension onto the CEO and
to better performance of companies, as
CEO and executive leadership must take
CXOs to say that we need to get there.
many studies like that of McKinsey &
a
Targets have to be achievable but they
Company, whose findings I have
commitment.
have to be stretched.
3.Targets are a must.
4. Policies are important but not
referred to, have shown. 2. Diversity has to be a visible business priority for the CEO and
public
stance
and
make
a
Many male colleagues and friends
sufficient.
have discomfort about targets on gender
There are certain basic policies which
diversity in leadership roles. But in my
are almost foundational. But if
Diversity in leadership is not the sole
experience, targets are an absolute
companies truly want to make a
responsibility of a few people or the HR
must. It is not easy to get women into
difference, they must be bold. They must
department, though they have an
leadership roles, and there are a lot of
have at least one bestinclass policy and
important role to play. But if you
business challenges and performance
achieve parity on the rest. Flexi hours,
genuinely want to make a step change
pressures on companies and leaders. If
for example, is one of the very big
in an organization, then it has to come
you don't have the dashboard or a
positive developments which a lot of
Executive Leadership.
25
MARCH
2021
Business Mandate fountainhead of excellence
the business are a must.
commandment. The corporate must
Women leaders in business are very
have a reputation as an employer of
important for furthering the journey of
choice for highquality professionals
women in leadership. Over the last
and high achievers. This is very
decade or so, I realised how important
important because women have to make
it is for women who are still in middle
big opportunity versus cost tradeoffs
and junior levels of management and
when they decide to continue to be in
professional networks to be able to look
their career track. They have other
up to and get inspiration from women
responsibilities at home and, therefore,
on their functional and leadership
more than men for women it is
competencies. They are able to realise
important. If organisations want to
that if X person could get there, so can
draw women in, it’s necessary that they
they! That element of confirmation of
are seen as progressive, respect
possibilities
important,
meritocracy and make women feel that
particularly given what I said earlier
it is their performance and merit that
about women having selfdoubts and
count more than who you know.
companies including my company have
imposter syndrome.
9. Attack unconscious biases.
announced recently. Last year, we
7. External hiring in the short
It is incredible how even very
introduced a fourweek paternity leave
term,
sophisticated, exposed, evolved and
policy. These are all very progressive in
development in the longterm.
progressive people can have biases that
External hiring in the short term is
they are totally unconscious about. These
5. Get the MEN leaders from large
important and necessary at the early
unconscious biases manifest themselves
functions into the tent.
starting point of the journey in
in various ways. It could be in terms of
The whole agenda of diversity cannot be
organisations, because you simply don't
choosing or not choosing women for
driven in any organization only by
have enough women in the leadership
certain roles; it could result in certain
women. We have to get the men leaders
roles. But for the long term, there must
kinds of micro aggressions as a behaviour
who
in
be sustained talent development, so
at workplace which put off women, more
organisations; for instance, commercial,
there are enough women in the
than men. Organisations must attack
manufacturing and finance teams. We
leadership pipeline who can then move
these biases. Women and coaches have
have to get them on board, ideally on a
into senior roles. Here again, coaches
to play a role there as well.
voluntary basis. The fact is that men still
have a key role to play.
10. Culture, Culture, Culture!
dominate positions of leadership; and
8. Corporate reputation as an
This is like the big ‘aha’ of an
unless we get them in, we cannot have
employer of choice for high
organization. Everything boils down to
the sustained change and commitment
performers.
the culture of an organization. It must
I've taken the liberty of putting my own
not just attract but retain men and
company Diageo as an example of this
women; the culture must enable women
It is incredible how even very sophisticated, exposed, evolved and progressive people can have biases that they are totally unconscious about. These unconscious biases manifest themselves in various ways.
nature.
lead
large
functions
to this agenda. 6. Role model women leaders in
is
very
sustained
26
MARCH
2021
talent
Business Mandate fountainhead of excellence
to flourish and take leadership positions. For an enabling culture, four aspects are important:
Value people, not hierarchy.
Provide
an
inclusive
environment. Encourage people to be themselves without the need to act in artificial avatars.
Culture must be performance driven.
The visceral feel of the organisation
must
be
inspirational
and
not
transactional. I have been part of this journey in a company, in an industry, which is seen to be a male bastion. We have three women out of eight in the executive positions. In the next level of leadership, ten out of 28 people are women. We have moved the dial from 7.5% about six years ago in terms of the proportion of women among the total employees to 20%, which is, hard to achieve in a large company like ours, but we have got there. These Ten Commandments have all played a role in getting us to where we are. In my company, I am very proud to say that women are in very influential and key positions. They are there in multiple functions. We just clocked hundred women in our manufacturing team, which is really difficult to attain. If it can be done in a beverage alcohol company, like Diageo India, it can be done anywhere!
27
MARCH
2021
Business Mandate fountainhead of excellence
Our PM Mr Modi always talks about
Learnings from four sectors I will share my personal learning
the three tenets of Atmanirbhar—scale, speed and skill. The scale is all about getting the volume of economies and
W
from four sectors: 1)
cost reduction which is an extremely
Footwear exports of Pond’s India.
2)
Hitachi
Commercial
e have two connotations
important foundational principle to get
to global competitiveness
the business from any part of the world,
– one, India being an
not to speak of, within our own country.
export powerhouse for the rest of the
Skill is about achieving quality and
world; and two, can we also be so
productivity. Speed to market not only
competitive and value adding to the
applies for new product launch but also
domestic market that with the power of
for delivering the acquired orders within
Japanese
the domestic market, we can again
the shortest and promised lead time to
Makino and the second one
become export competitive?
the customer. These three tenets of
Starrag, which is a European
quality, delivery and cost (QDC) are
company
We will share our experiential learning in terms of sectoral, national, international and above all the rural perspective which is going to be very important in the days to come.
classical and universal principles, which
Refrigeration. 3)
Cooper Bussmann fuse gear electrical industry, which is a global
$20
Bn
company
headquartered in America. 4)
CNC machine tool one on the platform
namely
headquartered
in
Switzerland.
will never vanish even if digital and
Pond’s India‐ Shoes
other revolutions take place in this
I worked with them in different
country.
leadership positions. PondsHindustan 29
MARCH
2021
Business Mandate fountainhead of excellence
You can assess the quality of leather or the colour. All five senses are used to
Reliability is very important to the customer. Without understanding the customer’s requirements, we cannot become globally competitive. It's an outside‐in approach, even in the Machine Tool industry.
intense price competition within our
Hitachi and Visicoolers
The Cooper Bussmann fuses were also
The
labourintensive with the below product
manufactured by Hitachi looks like a
(fuse) features:
simple product when we go to the retail
•
product. Once the fuse is
It is a consumable durable product. It is
replaced, its life is over.
very important that it has to fulfill the
Ready stock delivery supply
tropical requirements of relative
chain; the fuses which were
humidity of 75 and 40 degrees Celsius.
huge warehouse and shipped across
the
world
after
production, with zero defect. •
Visicoolers
chain and look at the glass door fridges.
and Dindivanam in a rural / semirural Commercial
CocaCola
It is an industrial nondurable
stocked in Pondicherry in a
The service reach to the retail market is critical. So it is manufacturing as well as servicingled. Merchandising appeal is required to pull the customers to go and have a bottle or can of Coke.
Safetycritical product with Makino Machine Tools
The labourintensive sector has got business dynamics of exportled growth. Pond’s India had domestic oriented cosmetics and also other products which were exportoriented with a 50/50 turnover ratio. In the 1990s, it was into consumer fashion achieve
well as business development
Cooper Bussmann ‐ Fuses
industries in and around Pondicherry
To
culture of manufacturing as to be globally competitive.
and England came to be
product.
Acquired an Indian electrical industry and transformed the
Thailand and Malaysia.
were labour intensive. I worked in these
industries were capital intensive.
•
competition at that time with Indonesia,
hitherto stocked in America
Refrigeration and CNC Machine tool
High variety starting from 0.2 ampere.
own markets, not to speak of the global
Lever Shoes and Copper BussmanFuses
Hitachi
•
understand the quality. There was
•
atmosphere.
global brand image.
global
competitiveness, it scheduled weekly flights to Europe. If the goods were not ready on Friday, we lost the business; order lost was equal to production lost. It had subjective quality attributes. 30
MARCH
2021
Business Mandate fountainhead of excellence
The Makino & Starrag Machine Tools
There is a job design at the shop floor of
approach
where I have been working for the last 15
the value chain starting from the MSME
industry
years is an industrial durable product.
of the supply chain to the OEM. For the
•
global certification
Reliability is very important to the
integrated approach for Atmanirbhar,
•
local sourcing as well as
customer. Without understanding the
MSME and the OEM have to talk to each
customer’s requirements, we cannot
other. The industry forces result in
become globally competitive. It's an
various drivers of QDC (Quality
outsidein approach, even in the Machine
Delivery
Tool industry. The value driven
appropriate manufacturing systems and
innovation is underlined in this. Total
job design.
life cost of the durable equipment is more important than the initial investment cost and cost per part of the customer’s machined part. An important development in the emerging industry is
emerges the manufacturing dynamics.
Cost)
leading
to
practices must be followed like: • •
•
sourcing
of
critical parts •
benchmarking
When Mr Balaraman was the MD in Pond’s, he invited leather specialists from Ambur (in Tamil Nadu) to important to get global certification for the refrigeration industry and getting
giving highest priority to
locally critical parts, including the
quality
double glazed door.
focussing on target zero defects
•
international
footwear
benchmark our company. It is
To win over other companies, best
Automation and Digitalization. From the business dynamics,
and
for
lowcost
automation
for
With CNC machine tools, it is important to know how to localize the
Indian markets
Indian content and at the same time not
flexible
to localize critical parts which have to
31
MARCH
manufacturing 2021
Business Mandate fountainhead of excellence
In one single visit to an exhibition, we tend to meet a large spectrum of people who offer a variety of merchandise for us to procure. In a B2B transaction, the exposure and width and depth of product knowledge become limited.
vision. Product quality was the essence
of Nepal, it was also exported to
of this vision. Pond’s wanted the entire
northern states of India—Bihar, UP and
team including the workforce to
so on. We not only did all the
understand the product, ingrain quality
engineering specs for making a soap but
in them and understand quality control.
also used the soap every day—we would wash our hands at least 50 times in a
Product‐led approach
day, to get the right kind of a perfume
For example, if you want to lay down the
and other attributes when we wash it.
specification of a product like a shoe
We should not simply look at it as
upper, you can go by the engineering
another product that we need to
dimensions or look at the polish or the
manufacture and then send it off.
finish or specify the product / quality assurance attributes like AQL levels. These would be taken care of, if the processes are set in. But it is important to step into the shoes of the customer
come from Germany and Japan such as the CNC controllers, spindle, etc. The focus should be on moving ahead, without
losing
much
of
the
employment.
and realise what would be comfortable for the customer to wear—would the shoe bite him? Will he be comfortable wearing it for long duration and so on and try and assimilate that kind of thinking. A customercentric product approach was infused into all the product groups that we handled in Pond’s—mushrooms,
I
thermometers,
leather products or whatever we took up will share my experience with
then.
Hindustan Lever produced a fish paste in a factory in Gujarat. It was tasted by people to see what kind of a bite it had, mainly to appreciate the viewpoint of the customer. This was the sense which was instilled into all of us. People dimension When we look at export products, we may not actually understand and appreciate the way customers look at it. But in order to put us into the shoes of the customer, the workforce must be skilled up. A friend of mine put up a BPO operations company across the rural parts of India. The BPO was set up
export processes under three
In one of the projects that came up
successfully in the second tier towns of
essential principles, which I would
in Levers under the visionary leadership
India. It was not just a cost reduction
of Mr S.M.Datta, we brought in palm oil
approach. The workforce had a pride in
like call as 3Ps which are: •
Productled approach
from Malaysia through Calcutta, took it
working in that setup, where the
•
People dimension
to Dabgram, formed zero distilled fatty
opportunities of employment are
•
Promotion
acid there and brought it to Nepal.
limited. Their social status got enhanced
All four of us—panellists started our
There, we created a unique process
and as a result, they had self
career in exports with Pond’s India.
called saponification, which is soap
satisfaction; attrition rates were much
Pond’s had placed a heavy emphasis on
making under DFA method.
lower. So, training efforts that were
exports and they had a productled
Apart from feeding it to the markets 32
MARCH
2021
spent on people lasted for longer
Business Mandate fountainhead of excellence
periods.
Thus
productivity
got
It can be done on a PPP model; private
enhanced. The focus should not only be
participation with the business forum
on the products or the processes but
or Export Promotion Council trying to
also on people and skilling them
promote such a culture.
appropriately. Promotion I was doing the job of running a business in Reliance Retail in the subsequent part of my career as I moved from Lever. I travelled to interior China and to the Far Eastern markets as a buyer of merchandise appropriate for our Reliance Retail. In that process,
I
am going to look at four countries —India, Bangladesh, China and Vietnam. All are significant and
relevant countries and can give a good perspective.
there were many learnings. In those countries, the promotion councils for exports and, the product
China •
In spite of the trade war, they are down but not out. They are
communities had extensive promotional
working
plans. They would stage an export
investment. As the labour
seminar or do an exhibition in Bombay,
intensive industries will be
Delhi or Hong Kong and ahead of time
winding down in China, they
invite us over there to the stall and then
are investing in any and every
on
outbound
their Belt and Road Initiative,
we tend to meet a large spectrum of
they have gone all out to
people who offer a variety of
invest in many countries.
merchandise for us to procure. In a B2B
Even sunset industries like
transaction, the exposure and width and
apparel manufacturing will
In some places like Yiwu and
seller. This doesn't have to be necessarily initiated by the government.
factory in Hangzhou called the Hangzhou
•
They have realised some of the damages they have done to the environment and are focusing on
upgrading
their
environmental approach and 33
MARCH
2021
Xunxi
smart
factory for making apparel and clothing. They are able to accept orders as small as 20 pieces right up to 100 pieces, by
working
in
modular
systems. By using technology, they are able to turn around e commerce orders extremely fast. They are also asking for a
Chinese factories always had a the piece rate approach.
identified
For example, they have a
lot of Indian talent to come
productivity edge because of
Guangzhou in China, the exhibitions
have
critical areas for the future.
flag in other countries. •
They
technology and Innovation as
continue under the Chinese
depth of product knowledge become
for the interaction of the buyer and
•
asking for joint ventures. With
In one single visit to an exhibition,
become permanent. This is a good way
Rural Development.
country which is ready or
give us feedback.
limited.
Chinese factories always had a productivity edge because of the piece rate approach. They have realised some of the damages they have done to the environment and are focusing on upgrading their environmental ap‐ proach...
over and work there. •
Their weakness has been on compliances (Intellectual
and
IP
Property)
commitment and that is where India scores.
Business Mandate fountainhead of excellence
Vietnam
become the 25th highest
make a pitch to you. Pick the
•
With open arms, they embrace
country in terms of GDP and
right State, find out the
all kinds of industry partners
they want to move on to being
stability and longevity of the
—China, USA or Europe. The
a developed country.
government there.
big
•
approach
from
the
(Free
local
you could find local partner
Trade
Agreements).
has
been
extremely good; this has
companies
the industry community to
helped them in getting capital
navigate.
attract investment.
and
They have done their pitching
management.
are
•
They
working
capital
•
to
help
you
Because of the bureaucracy, there will be some delays. You
depend
a
lot
on
will have to be persistent and
from
readymade garments for their
Singapore, Korea, China and
exports and economy; they
Thailand—all from the local
have stepped up from being a
zone in Far East.
country making just basic
The FTAs hinge upon using
products to fashion value
compliances, however high
localised
added products.
the demands are; this is going
They have invested in the
to be yet another USP for the
safety of the factories.
Indian factories.
raw
materials.
focus area, and it's going at a
• •
They
are
continuously
patient for things to work out. •
Scout
for
Marketing
/
Technology joint ventures. •
•
Implement
all
the
Hire schooled workforce and
good pace.
investing on having their
train them; these trained
Wherever possible, they try to
factories LEEDcertified. They
Indian workers, with their
enter into JVs with a buyback
have
supervisors
scheme so that the marketing
certified garment factories.
management become a big
They are also investing on
weapon.
side of the business is also
•
the
highest
LEED
and
middle
quite comfortably locked up.
sustainability in terms of
While their ease of doing
materials,
business is quite high, they are
processes. These things don't
very strict on environmental
go unnoticed by customers.
Linked Incentive) scheme for
They are investing in scale.
scaling up export competence.
compliances.
•
The labour efficiency is very high;
the
workers
are
naturally very agile. This helps them in the industries which they have picked up. Bangladesh •
banks
This has been a big booster to
materials is a big project and
•
If you do decide to go to a state which is not your own state,
Therefore, localisation of raw
•
•
Bangladesh Central Bank and
investments
•
The credit support from the
government has been FTAs
right and the maximum
•
•
It is a country where the
machines
•
and
Deploy sound systems and processes for execution.
•
Leverage the PLI (Production
Bangladesh is right next to us almost like a province of India, but they are going to give us a good competition in the near future.
India •
If you want to invest in new
leadership and the people are
projects, just as in Vietnam,
ambitious. For example, by
many of the States will
2030 or 35, they want to
compete with each other and 34
MARCH
2021
W
hen I joined Pond’s as a management trainee in 1986,
most
people
thought of Pond’s as a dream flower
Business Mandate fountainhead of excellence
talcum
powder
manufacturing
I was told that there's not a single girl in
company; they did not know that Mr V
Bangladesh who has to worry about a
Narayanan and Mr V Balaraman had
job for herself because there's such a
already built a bouquet of worldclass
strong demand in the apparel industry.
export businesses.
The funny part of it is that
What strikes me even now is how a
Bangladesh does not have artificial
company like Pond’s India could
intelligence, industry 4.0, IT and
leverage its global connections as a
sophistication. Just on the back of the
MNC and build many businesses within
apparel industry, they have been able to
a short time. They were able to create
develop as a nation and even go ahead
outstanding teams led by young
of more developed and socalled
entrepreneur managers. All this was
developed countries. Many other
done in very small towns and even
countries have followed Korea.
villages where the awareness of global
The India story has been very
competitiveness and exports was not
different. We have had our successes in
there.
IT. There is a fair bit of very
Even though these businesses
sophisticated manufacturing but when
started were from scratch, most of them
it comes to large scale mass
were highly successful and globally
manufacturing, which can give jobs to
competitive. They achieved high
our large population, there is a niggling
customer satisfactions and great
doubt if we have missed the bus.
The India story has been very different. We have had our successes in IT. There is a fair bit of very sophisticated manufacturing but when it comes to large scale mass manufacturing, which can give jobs to our large population, there is a niggling doubt if we have missed the bus.
On the one hand, we're talking about export and labour intensive businesses and lack of jobs and, on the other hand, we are talking about
financial results. This has been a great
A lot of things are happening at the
learning for me personally and to our
government level like Atmanirbhar. But
panel members.
agriculture. There is a huge opportunity
over the years, if you look at the trends,
where the two can come together and
How the world has changed since
it's been more of a decline as compared
lead us to the next level of development
then! When we started these businesses,
to other countries. It is so surprising for
as other countries have done.
China was already a superpower but
a country with such intellectual
countries like Bangladesh and Vietnam
capability
were nowhere in the picture. Today, as
professionals. Why are we not able to
15 years ago, I set up a company called
Venky mentioned, Bangladesh has
become globally competitive in many
Laguna Clothing. The mandate was to
become a leader in exports of labour
industries?
make worldclass formal shirts for
and
outstanding
intensive businesses. I heard that the
We are also plagued by other issues
per capita income of Bangladesh is
like farmer distress and migrant
going to become better than that of
workers problem. A large percentage of
India.
our population live on agriculture,
During my last visit to Bangladesh,
which is not remunerative. 35
MARCH
2021
industries
which
can
substitute
The story of Laguna Clothing
international premium brands. This was promoted by a very wellknown Italian mill known for its design and fabric. The joint venture was with a global apparel producer based in
Business Mandate fountainhead of excellence
They saw the benefits of a sustainable life built around the agricultural community. It stopped people from migrating to the cities in search of work. That itself is very inspiring for the customers and they want to be part of the story.
feedback on quality, delivery and
business. Local support was extremely
service. Financial performance has been
positive; there was a strong desire to
exceptional. It has been a grand success
make it happen locally from everybody
story as far as stakeholders have been
because all these families were mainly
concerned. It is not the lowest cost
marginal family farmers. They would
product. But we give a combination of
have to send their girls to the cities to
design and quick turnaround; we end up
work in difficult circumstances, often
being a design to delivery business,
being badly exploited just to make a
giving great value, rather than the
living.
lowest cost. In 2019, we set up another
For them to work in small to
factory in the same area. Currently, we
mediumsized factories near to where
are setting up in rural Jharkhand.
they stay, which could supplement their
The rural advantage and challenges Why did we decide to go to rural India? In Bangalore, we realised that there was no local labour pool. People working in shopping malls were coming from distant States and they were basically
Mauritius. I was asked to conceive and set up this project in India, mainly because the Italian mill had already set up a mill in Kolhapur and they wanted to use that as the base for international and domestic business as well as to forward integrate into a production of highend formal
to the pool of labour, which is the key requirement for a successful business. Moving to 60 kilometres outside Bangalore appeared to be a major leap of faith and risk, but then we benefited
We first did a pilot around Bangalore and then we realised that it was better to set up in rural Karnataka. We went 60 kilometres from Bangalore and set up the factory in Kanakapura. Clothing
has
been
extremely successful as a business. We serve demanding global brands. We have received outstanding customer
was extremely attractive. This was even more of an incentive as we went to the poorer areas like Jharkhand. The laws of the land are so complicated. It's hopefully changing now. In Karnataka, a nonagriculturist cannot buy agricultural land. We got our HR manager who was a khata holder to buy agricultural land and get it converted to industrial land and then sell it back to us. For each acre of land, there were 30 to 40 claimants who had
greatly. The moment you must step out of
shirts.
Laguna
unstable. We decided it was better to go
earnings and create a stable livelihood
the city, many of the infrastructure and other benefits disappear. We tried to look for industrial estates closer to the city; there were industrial estates, but private companies had taken the land and they were no buildings. The industrial estate was empty for 20
to sign before the lands were sold. It is a very complex process. Most of the girls we hired were farmhands; they were cultivating produce. Initially, they were all scared of women coming to a factory. So we had to go and talk to the panchayat leaders, explain what we were trying to do, how it was safe and build confidence in the
years. The fact that we had a stable labour pool created a strong foundation for the 36
MARCH
2021
community. We had to train all these people from scratch.
Business Mandate fountainhead of excellence
Even after they get training, the
out of the congested and polluted city of
hospitals in the city. This had a huge
more difficult part was building an
Bangalore into the rural, green field
impact because there were virtually no
industrial culture. In the village where
area, which is nonpolluting, the
health facilities in the area. Hundreds of
there were many festivals, instilling
customers who came to the factory
elders would come to the camp. We
discipline of coming in time every day to
could see the cluster of villages from
organised cataract operation for them
work and working for a fixed period of
where people would come to work. They
and gave them glasses. We had 80 such
time was a challenge. We had to adjust
saw the benefits of a sustainable life
camps and they were very beneficial to
to a lot of local practices and religious
built
agricultural
the people around. All these helped us
traditions, declare some local holidays
community. It stopped people from
to get a stable workforce to build our
and adjust our leave calendar. As many
migrating to the cities in search of work.
business. We could also give back to the
of our staff and managers were coming
That itself is very inspiring for the
community.
from Bangalore, we created a fiveday
customers and they want to be part of
work week.
the story.
around
the
To summarise my thoughts: •
Globally competitive does not
The biggest impact was on
As we progressed, we started
mean being the cheapest
customers. It was important to have a
working with the community. We tied
converter. It is about giving
factory near a big city so people could fly
up with the local schools and BDOs
value, right from design and
in internationally and spend an hour or
(Block Development Officers) and
two going to a factory. But as we moved
organised health camps by tying up with 37
MARCH
2021
IP to delivery. •
The intellectual, IPR related
Business Mandate fountainhead of excellence
work
•
•
with
manufacturing
Because of technology and
together worldclass apparel
preferably done in rural areas
digital transformation, the
supply chain partners to
should be a huge success
entire value chain is getting
collaborate and come out with
factor for being globally
transformed; this is a big
solutions for world class
competitive.
opportunity for us.
branded apparel clothing. This
Having a oneoff company is
is one of the most competitive
good professional team with
not
places in the world.
clear business plan, it is more
internationally
than possible to achieve high
Scale is required. Forming
going rural especially for
levels of customer satisfaction
clusters like the traditional
labourintensive
and profitability. This can be a
clusters in Ambur (Leather)
Also creating a sustainable
great opportunity not only for
and Tirupur (Textiles) and
ecosystem
businesses but also for the
forming modern clusters in
migration to cities is a great
community at large.
different parts of the country is
opportunity which we all must
Because of forced labour in
very important. There is a
look at. This is even better in
China in certain areas like
cluster in Vishakhapatnam set
States like UP, Bihar and
getting cotton yarn and, lack of
up by a Sri Lankan company. It
Jharkhand where the pain is
transparency, many countries
is known as Brandix India
acute.
like the US want to move away
Apparel City which is a self
from China sourcing.
sustaining eco system bringing
If you have a motivated and
•
•
38
enough
MARCH
2021
to
be
competitive.
•
There is a strong case for
and
industries. stopping
Business Mandate fountainhead of excellence
“If you want to go fast, go alone. If you want to go far, go together.” African Proverb
M
odern businesses are driven through teams. Readers would recall that
there was an era when businesses revolved around talented individuals. Thanks to factors such as the rise of knowledge economy, globalisation, free availability of information, and high velocity of information flow, the yesteryear philosophy of businesses revolving around heroic, talented individuals is slowly diminishing. The VUCA nature of the world, for which the ongoing COVID19 pandemic is a very appropriate example, has further accentuated this. VUCA, for those who are unfamiliar, is anacronym that stands for Volatility, Uncertainty, Complexity and Ambiguity, and alludes to the character of the current day business environment. ‘Why teams?’ is an obvious question that merits discussion. Modern knowledgedriven businesses are intensely specialised. The vast knowledge spread across multiple domains, high information volumes, as well as high velocity and cadence of actions, is all beyond the grasp of a single individual. Add to this, the crucial
39
MARCH
2021
factor
of
environmental
Business Mandate fountainhead of excellence
Fundamental to the understanding of collaboration, is the principle of goal setting. When goals are set for employees in an organisation, the exercise can be done in two different ways, viz. individually for each employee, or collectively for a team.
work for a common purpose. Thus,
ability to collaborate makes them more
teams have two required elements
loyal”. Clearly, a high level of
—membership and a collaborative task.
collaboration is positively correlated
Notwithstanding the fact that teams are
with the two fundamental dimensions
becoming
of
‘virtual’,
‘distributed’,
‘dispersed’, and ‘global’, the definition
every
good
workplace,
viz.
productivity and engagement.
still remains relevant.
Fundamental to the understanding
Assuming the above were true,
of collaboration, is the principle of goal
what should be the character of these
setting. When goals are set for
teams that drive successful enterprises?
employees in an organisation, the
Teams would have to be autonomous,
exercise can be done in two different
agile and flexible. Autonomy would
ways, viz. individually for each
ensure that decisions would be quick
employee, or collectively for a team. If
and appropriate to the scenario
goals are set individually for employees,
presented. Agility would mean actions
when an interdependent task is required
are swift, timely, calibrated and effects
to be executed, then an employee, say
local with minimal collateral damage.
employee A, would need the cooperation
Flexibility would allow for the team to
of another employee, say B, for
complexity, which presents itself in the
function without being restricted by
execution of the task. This cooperation
form of continuously shapeshifting
excessively rigid boundaries and
is dependent on the volition of the
ambiguous pictures. Both these aspects
constraining SOPs.
employee B, whose help is being sought.
leave little time for business decisions and actions to be thoroughly analysed, derisked and centrallydriven. The solution to drive business under such circumstances lies in creating high performance teams. If teams were to become the fundamental entities
Another aspect of such teams would
Further, employee B’s decision to
be the high levels of collaboration and
cooperate is dependent on whether the
synergy, a prerequisite for high
act of extending support will assist him/
performance. A lot has been said about
her in meeting their goal. Such is the
collaboration in teams. A quick Amazon
nature of cooperation.
books search reveals the existence of with
predicated upon objectives being shared
collaboration. That said, the statistics
by the entire team. When goals are being
for collaboration in the workplace does
set, if those goals are shared goals, every
not really inspire confidence. Surveys by
teammember strives to contribute to
Salesforce reveal that “86% of
the achievement of the goals. This is in
employees and executives cite lack of
contrast to the scenario of cooperation,
clear definition of a ‘team’ merits
collaboration
where the overarching goal is lost due to
recording. Scholars traditionally define
communication for workplace failures”.
its
a team as a bounded and stable set of
Additionally, a survey by The Economist
individual goals. The concept of shared
individuals, who are interdependent and
indicates that “33% of employees say the
goals turns every collaborator into an
through which work is undertaken, then the knowledge and wisdom of the collective can be fruitfully utilised to negotiate a VUCA environment. Since this piece deals with teams, a
over
8000
40
titles
dealing
Collaboration, on the other hand, is
or
MARCH
2021
ineffective
decomposition
into
smaller
Business Mandate fountainhead of excellence
In an environment where safety is ensured, team processes such as periodic reviews, lay the foundation for team‐ learning. This happens because the review processes are crafted with the perspective of learning and improvement by dissecting actions with no attribution to people.
domains is typically shared among the
fosters creativity since failure does not
different members of the team. This also
trigger ridicule or retribution, and helps
means every member of the team would
keep decisions aligned with the overall
need to contribute their expertise and
purpose and values of the enterprise.
ideas, to meet the shared goal.
In an environment where safety is
Consequently, team decisions need to
ensured, team processes such as
emerge through discussions and
periodic reviews, lay the foundation for
consensus, rather than through the
teamlearning. This happens because
traditional paradigm of decisions being
the review processes are crafted with the
handed down to teammembers.
perspective
If decisions are required to be arrived at through consensus, the team ecology should be open and accepting of
of
learning
and
improvement by dissecting actions with no attribution to people. Safety also ensures teams bond
the plethora of views and ideas from
better,
members, often diverse and probably
engagement is improved, overall
contradictory to popular thought. Ideas,
attrition is reduced and employee’s
contrarian views and open discussions
health improves.
are best aired when members feel a sense of psychological safety.
politics
are
minimised,
In sum, any enterprise strives to achieve success through driving two
Psychological safety was first
connected employee related parameters,
discussed by Edward Schein as early as
viz., employee performance and
1965. The concept describes the ability
employee engagement. Both the
of teammembers being able to present
parameters are most likely to be high if
themselves to their teammates without
highperforming teams form the basis
fear of negative consequences of self
for work. Converting a heterogeneously
image, status or career. Psychological
skilled group into highperforming team
Setting shared objectives is just the
safety helps members function without
involves defining shared purpose and
first part of creating highlycollaborative
fear of ridicule, failure and loss of self
shared mission, providing a safe and
teams. As discussed earlier, knowledge
esteem. Research indicates that when
trustfilled space for members to
based
multi
members in teams feel psychologically
collaborate and exchange ideas and
dimensional knowledge, tremendous
safe, there is greater engagement, higher
views.
ability
process
productivity and improved adherence to
information, creative strategy, and
quality. Teammembers feel a deep
innovative execution at every juncture.
sense of belonging and inclusion, a
Consequently, no single individual is
willingness to learn, contribute and
capable of meeting this wide swath of
challenge the status quo. The last factor
requirements. The expertise across
ensures that members speak their mind,
equal stakeholder, and engages them strongly since they see themselves contributing to something larger than themselves. Shared goals are the juice that drives highperformance teams.
businesses to
absorb
require and
41
MARCH
2021
End
result,
skyrocketing
engagement levels, plummeting stress levels, both leading to increased productivity, reduced attrition and overall good health.
MMA Women Managers' Forum
W
e started Women Managers’ Forum in Madras
not want to do anything against their husbands. I had to
in 1994. Women have so much to give for
convince them that it was not against their husbands but it
India and Indian business. They are so skilled.
was for them. Some said they didn't want to do anything
How can Indian business grow without tapping into the
against men. I convinced them that men are not against
intellectual genius of women? With that objective, we
women. Yet, I had a lot of difficulties in the last 25 years.
started Women Managers’ Forum with emphasis on women being managers.
Over a period of time, India started looking at women as national resource, not just in one or two areas but
At that time, very few women chose career as an option.
including in armed forces, where they might risk their lives
Home making was their first option.
during battle. More women started coming into
Some who chose career as an option
business management.
chose to be in music, dancing, medicine,
India does have another important and
and advertising or as being Chartered
crying need. In the year 2000, when China and
Accountants. As I was desperately
India started building their economies, both had
scouting for talents for my company, I
40% of the population below poverty line. In the
realised that women had lots of talents. It was with a purely selfish objective of getting smart managers for our company
last 20 years, China has made significant V Balaraman
that I started the Women Managers’ Forum in MMA. Initially women hesitated a lot. Many said that they did
progress and only 5 to 10% of their population is below poverty line whereas India has made virtually no progress. Some authors like Pallavi Iyer who have studied China
write that the poor people in China are far better off in their
Business Mandate fountainhead of excellence
lives while the poor in India are utterly and desperately poor.
We in MMA want to make all this possible through
Their level of poverty really hurts us deep in our core. So,
MMA Women Business Forum. This is not a managers’ forum
India has a huge need for increasing its Gross Domestic
but a business forum. We want to draw in a lot of Indian
Product. We are at about 2.7 trillion dollars whereas China
women to start‐ups. When we had the first few meetings,
is at 13 trillion dollars. There is no question of catching up
many said that they made the initial steps but find it difficult
now. Nor is the Chinese approach available to us. China is
to build it and scale it up. They find marketing to be
an autocracy; there is no limitation on the number of
expensive. There are economical ways in which one can go
working hours or the working conditions and safety norms.
to social media and scale up their business.
India is a democracy and we have to respect everyone's
With this thought in mind, I requested two powerful
rights. We have to care about occupational health and safety
women to come and speak to you and support those of you
and which is a good thing. How then can India increase its
who want help. As start‐ups help Indian GDP grow, I would
productivity and gross national product? I think India needs
particularly like to motivate women coming out of colleges
a large number of start‐ups.
and those who work at home. If you can spare some time
Fortunately start‐ups are somewhat sheltered from
towards a start‐up, it can help India, our motherland.
bureaucracy and officialdom. A thought occurs to me that
We are also open to linking you up to incubators. For
if one person in a house has a stable income, the other
example, IIT has an incubator cell; we can introduce you to
person can take a risk. Women also now want to do
them or someone else. We are also planning to bring
something much beyond home making. They have become
coaches for entrepreneurs. In whatever ways possible, we
much more capable and can manage house making easily.
will try to help you. These are not just my ideas but Ms
They want to prove themselves, add to their family’s income
Anusha Shetty’s. Her aim is to energize this forum.
and make a name for themselves.
Anusha Shetty: I started a company
When do you start dedicating your time
your startup formally, you can put out
way back in 2005 and I am fortunate to
to digital marketing? Should you have
some sort of an idea there. You can get
have been mentored by Mr Balaraman.
some customers before you?
guidance. You can get mentors and
Everybody needs positive energy,
Krithika: Startups have different
people to collaborate to enhance your
blessings, good mentoring and a lot of
kinds of issues and questions. It's a
product itself. You can seek ideas and
selfmotivation, commitment, hard
different scenario for growth stage start
figure out ways to improve the
work and a great idea. All these result in
ups, which want to scale up. Initially,
prototype. Here itself, there is an
a good company. I am excited to be part
the focus is all about the product and
opportunity to start your digital journey
of MMA’s Women Business Forum and
getting the first few customers to
and wet your feet in the digital
would be happy to empower women to
experience the product. There's no
platforms.
start companies and achieve their
particular time that you can pinpoint as
dreams.
the ideal time to get into digital.
As an entrepreneur when you start seeking feedback, actively engage in the
Keerti: When you start as a startup
If you are already having a
digital world and find out the pulse of
cofounder or founder, you are donning
corporate profile like LinkedIn and
the people. Today, there are 3.8 billion
several hats and doing so many things.
other platforms, even before launching
people on digital. Even otherwise, you
44
MARCH
2021
Business Mandate fountainhead of excellence
can start your profile and start building
audience, considering your business and
it. If you have a product, then all the
product.
consumer is completely digital today.
more, you have to enter into digital
Then start slowly putting out
world. Engage with your friends and
content and find out: What does your
family in the initial stages, get some
audience look for? How can you help
feedback and start making the content
your audience online? With this
work for you.
approach, you'll eventually land on the
Experiment with what people like
It is better to go digital as the
best hack for your startup.
and do not like, how you should position
Anusha: This is a phase for trial and
your product and which platform works
errors. Let’s just take some examples.
for you. In the initial stages, as you don't
Assume that you are fabulous in cooking
have a huge follower base, you don't
and you've decided to sell some gourmet
have to really worry about making
food or you have a fabulous fashion
mistakes. That's when you can try out
sense and you've decided to start
these platforms. There is no set rule as
designing clothes and sell them.
to which one will work for you. You have
Initially, you'll obviously do it with your
to find out what is working for you as an
ecosystem. You'll send it to your family
individual and a professional and pick
and close friends.
MARCH
Everybody believes that advertising is the best way to communicate to the market. We know TV has the maximum reach. But there are close to 600 million people on the Internet, which is as big as TV today. So digital is your big mass media platform. The beauty of digital is that you can do it easily unlike advertising or TV where you need to go to an agency. Everything is simple and sweet. If you're starting a company and you have a product in fashion or food, after you've checked its pulse with your immediate ecosystem, go online with an e commerce website which allows you to
the platform that works best for your 45
We have 1.3 billion people in India.
2021
Business Mandate fountainhead of excellence
There are two kinds of communication in digital—push and pull. In push, you are pushing content and information to an end consumer on the other side. In pull, the consumer is pulling content towards him/ her.
handinhand because when you're
Instagram, you can place the ad and
working on your product, you're not
direct it towards your target. You can
going to perfect it in 10 days or one year;
put it in such a way and instruct
it's a constant journey. The feedback
Facebook and Instagram that whoever
from the users does inbound marketing
is looking for information on wedding,
for you. Word of mouth goes around.
your ad should reach them. You can also
You mentioned that with different
choose filters and make sure this person
aggregators around, you need not be
is between 20 and 25 years of age and so
very tech savvy. Having online presence
on.
is fantastic. But at the same time, it's
You have to exist where the search
extremely difficult to get visibility.
engine is giving content and where the
When you search for products, so many
brand needs to push content. Today, in
startups and brands come up. What
the digital world, unlike the TV, you can
could be some good costeffective
choose who should see your ad—should
transact. There are a lot of plugand
growth hacks or strategies that you can
the person be from village or town?
play ecommerce sites available Shopify,
adopt to get traction on digital properties
Should the person have an iPhone or
Shopmatic and so on at a subscription
—be it a website or an app?
certain luxury products? Youngsters use
fee of say 50 rupees a month.
Anusha: There are two kinds of
Instagram and elder people use
plugin
communication in digital—push and
Facebook. So choose the platform
templates. You just have to enter your
pull. In push, you are pushing content
wisely. You also have to figure out where
brand name, take pictures from your
and information to an end consumer on
consumers search for information on
phone of the products and upload them.
the other side. In pull, the consumer is
Google, in what categories they search
You can save these templates, start
pulling content towards him/her. When
and in what categories they're not
transacting and connect them to your
you Google search for some information
searching.
bank accounts. It's all selfhelp and very
related to wedding, Google throws up
In the beginning stage, you can
easy. You don't even need to go to
results. This is pull communication.
focus on push content by showcasing to
complex ecommerce websites. These
Make sure that you are part of this pull
the customer. We are ourselves
are
marketplace
content. You must create lots of pieces
consumers of various products and
aggregators. They have done all the
of content such that the end consumer
categories. If you are looking at a
work for you, including the payment
can discover you.
gaming consumer, you must be on
They
have
beautiful
ecommerce
gateway work. All you have to do is to
The
second
one,
push
platforms where there are younger age
put your products up and just explore it.
communication, is an easy game. Let’s
groups.
The minute your product is ready, then
take the same wedding example. You
Krithika: I just want to add to what
you are ready to start doing digital
have to identify your target audience
Anusha said on push and pull part of
marketing.
—the mother who is the decision maker,
communication and microtargeting.
Keerti: So, growth and marketing go
or the bride or groom. On Facebook or
Have searchability as a goal. Also, have
46
MARCH
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Business Mandate fountainhead of excellence
a proper content bank across many
I'm sure you've created a Facebook page
platforms to improve discoverability.
for your product. On the right top, you
This is something that everybody should
will see something called ‘Boost Your
invest their time and effort in, at the
Page.’ Just go and try it on your own
beginning stage.
and you will suddenly see how easy it is.
Learn to tap the conversation
You may have to do some very simple
commerce. Many people may be asking
spend—50 or 100 rupees. The words
for things related to your product. For
and jargons are intimidating while
example, you could be offering some
you're listening but when you start
gardening solutions. When there is a
trying it, it all gets very simple. So you
digital conversation on gardening, you
must try it on your own. That's the
can provide a neutral solution to them
beauty of digital. You don't even need an
and build trust. Eventually, get them to
agency.
visit your own space.
Keerti: How do you know if you should
Learn to tap the conversation commerce. Many people may be asking for things related to your product. For example, you could be offering some gardening solutions.
Social listening is listening to
do push marketing or pull marketing?
conversation and also hearing what the
Is there any way by which you can
community is actually saying about the
decide which one I should focus?
product that you are putting out. This is
Anusha: It's not a simple answer
also very important and it has helped
because it depends on the category of
many startups.
the product. Your consumer is the
Keerti: So pull marketing is nothing
person who will decide where you need
but organic traffic where you are not
to focus, especially in the early stages.
V Balaraman: If you are sure of your
directly spending to acquire a consumer,
As you go into your growth phase,
target customer, you can use Push.
but you're doing activities which make
everything is important.
When you don't know your target
your brand presence in the online world.
V Balaraman: Pull marketing really
If somebody searches for say, gourmet
helps you to widen the market. Push
Keerti: Is digital marketing as effective
food, because you've been active in
marketing is the foundation to begin
for Tier 2 and Tier 3 cities as it is for Tier
commenting on blogs or people have
with but it can be expensive. Pull
1?
written good reviews, you automatically
marketing takes longer time and it
Anusha: It's a myth that Internet
start getting that organic traffic.
works through rational understanding
penetration is highest in urban India
of the consumer’s need and a creative
and it doesn't work in rural India. I'll
acquiring users through mediums such
and emotional communication.
give a simple example. Take IRCTC and
as Facebook and different targeting
Krithika: The platforms can be many
I'm sure each one of us has done our
options.
and we can experiment with pushpull
bookings on IRCTC. It is one of the
Anusha: It all sounds so scary. Many
and find out what is working for you. I
oldest digital app for train bookings.
may feel like it’s a very difficult thing.
would bring it down to a simple concept
Their revenue as of last year was much
Push marketing is more towards
47
MARCH
2021
and it works well for every client or organization—Test, test, test, rinse and repeat.
customer, then you need pull.
Business Mandate fountainhead of excellence
higher than all of Amazon put together
weather information. I was very
Anusha: In digital media, there are 3
in India. In the last two years, Internet
skeptical and wondered how farmers
kinds of costs:
penetration is more in rural India than
could read English. But I was absolutely
urban India. Rural is big today on the
wrong. Farmers look at their mobile
creating agency, if you want to
Internet.
phones to find out the weather forecast.
engage them. This may vary
The second big myth is that it's
1)
Fee for the ad or content
from 50K to 15 lakhs. If you are
Keerti: For B2B product offerings, will
in the initial stages of your
mostly men and not women on the
digital marketing be effective?
Internet. It is almost equal: 40% women
Anusha: In fact, digital space is the
you need not hire an agency, as
and 60% men. The third myth is that it
easiest option for B2B, because, the
it comes with a cost. Try it out
is only for the younger generation. The
options are not cluttered. You can focus
yourself. As you grow bigger,
fastest growing age population today on
on a few things and you are home. Two
digital is 50 to 60 years.
things are important. One, get your
V Balaraman: How much of that is
website right. It should be the final
because of the mobile phone?
destination
Anusha: 95% of rural India logs in from a mobile and not a desktop. Now with Jio playing an even bigger role, this number has exploded in rural India. As an agency, when we present to clients, I have made it mandatory that we present
for
knowledge
startup, I would suggest that
you will have marketing budget and then you can hire an agency. 2)
The production cost for the
and
promotional video that the
information. Put lots of videos, explain
agency may do. You can even
your products, processes and quality. Two,
shoot a video on mobile and
get your search engine marketing right.
edit it with available software.
When companies search for your category of products, you must be discoverable and they must land on your website.
3)
The media cost which is the cost to Facebook or Instagram for posting
your
content
to
targeted audience. This can
on a mobile because everything looks
Keerti: How much does it cost to
start from as low as 50 or 100
glamorous on a desktop, but that's not
acquire a customer on digital?
or 1000 rupees. Facebook will
how a consumer sees it today. The
Krithika: Even for as low as 200 or
mobile screens are of different sizes. If
500 rupees, you can build your network
you're able to do the right thing on any
of followers. It depends on the outcome
mobile, then you've done your job really
choose your target audience.
that you want from a particular theme
Once the money that you paid
well. Almost every phone is becoming a
or campaign. Try small and then go big.
has exhausted, they will stop
smartphone, thanks to Jio again. Pre
It is quite subjective and it is up to one’s
posting your ad. The more you
Covid, 350 million people were on
appetite.
pay, the more will be your
smartphones.
marketing is a big thing. You can figure
V.Balaraman: The surprising thing
out if there are known influencers in our
is that people who are not literate are
circle. Give them a sample or hamper to
able to handle a mobile phone, make
try out. Then they can post a video.
phone calls and receive messages. Years
What is important is a relentless focus
ago, when I was on the Board of Nokia,
on tracking the results and fine tuning
they started addressing farmers on
your product and /or campaign.
These
48
days,
MARCH
2021
influencer
keep a count of the audience, charge a nominal cost per person, say 30 paise. You can
reach. This is how it works. Depending on your budget, you can decide the options. The choices and capabilities vary as per the budget. If you have limited marketing budget, you can directly go to Amazon and they will promote your product at a cost.
Business Mandate fountainhead of excellence
I
t is said that our collective consciousness knows things that we are consciously not aware of.
For more than a decade, US businesses have been sending signals on the importance of being a better human being in a roundabout way. On October 30, 2006, Pete Engardio and Jena McGregor penned an article in Business Week titled “Karma Capitalism” whose byline read, “Times have changed since Gordon Gekko quoted Sun Tzu in the 1987 movie, Wall Street”, and continued, “Has the Bhagavad Gita replaced The Art of War as the hip new ancient Eastern management text?” The article never defined Karma Capitalism nor did it explain what Sri Krishna’s teachings were and how they were relevant to businesses. In the eighteen chapters of the Bhagvad Geeta, Sri Krishna prods Arjuna, and through him, humanity, to engage in the struggle to rise in internal excellence and emerge as a better human being and teaches him how to do so with the various yoga paths. On August 19, 2019, the prestigious Business Roundtable issued a New Statement redefining the purpose of a corporation. The 181 CEOs of leading companies such as Amazon and Apple who signed the New Statement, committed to lead their companies for the benefit of all stakeholders
49
MARCH
2021
Business Mandate fountainhead of excellence
the monograph.
The link of internal excellence to the performance in the external world has significant implications for the New Statement.
week, producing 1 defect (late delivery,
In 2011, Six Sigma and Advanced
wrongful delivery) in six million
Controls, Inc., published the first
deliveries according to Forbes, and they
edition of my book, Six Sigma for
have been at it since 1890. They are the
Karma Capitalism (amazon) which
envy of the corporate world keen to
expanded the ideas further. Don
learn how these semiliterate folks with
Linsenmann, the then Corporate Six
no training in statistics are able to
Sigma Champion of DuPont, wrote the
deliver such incredible performance so
foreword to the book, and Sadhguru
that they too could replicate it.
Jaggi Vasudev was kind enough to
Unfortunately, they have been looking
answer several questions for the book.
at it from the prism of reason. The X
My subsequent discoveries and the New Statement are even more
factors are not to be found there. The X factors for the exemplary performance of dabbawalas are: (1)
intricately linked. —customers, employees, suppliers,
On March 3, 2013, I had an Aha
communities and shareholders, and
moment, courtesy of an article in the
away from the shareholdersfirst
Weekend edition of the Financial Times.
ideology.
The article spoke of very low defect
Their processes are designed and operated the six sigma way, and (2) Their internal excellence is high. The converse is equally true, an inadequate level of internal excellence is a root
I had been sensing the societal
levels in the Kumbh Mela’s tent city
importance of the idea central to the
erected to house millions of pilgrims as
New Statement for more than a decade.
though the tent city was located in a
In 2008, Six Sigma and Advanced
developed nation, in contrast to the
Controls,
my
shoddy performance outside. BBC News
monograph, “A Small Step for Man:
too supported the Financial Times
The link of internal excellence to
Zero to Infinity with Six Sigma
reporting in their article dated 17
the performance in the external world
(amazon),” which defined Karma
February 2013 titled, “Does the Kumbh
has significant implications for the New
Capitalism as “freedom to engage in
Mela experience improve your well
Statement.
business within the constraints of civil
being?”
Inc.,
published
cause for shoddy performance in disparate areas of life, not just businesses. Boost internal excellence and the performance will zoom.
Consider the 2004 Gallup survey of
laws for the purpose of turning a profit
These articles are telling us that
a large number of business units across
while keeping in mind the wellbeing of
high levels of internal excellence
many industries which found that there
all
contribute
were more than 22 million workers in
concerned
parties
(suppliers,
employees,
customers
and
shareholders)
and
just
not
shareholders.” Dipak C. Jain, the then Dean of Kellogg School of Management at Northwestern, wrote the foreword to
heavily
to
exemplary
the United States alone who were
performance. The famed Dabbawalas of Mumbai are another example. These 5,000 semi literate lunchbox delivery boys deliver 200,000 lunchboxes a day, six days a 50
MARCH
2021
“extremely negative” or "actively disengaged." The report said this rampant negativity was costing the U.S. economy between $250 and $300
Business Mandate fountainhead of excellence
billion every year in lost productivity
because the two are strongly and
alone. When workplace injury, illness,
positively correlated. The process with
turnover, absences and fraud were
which to achieve a higher level of
added, the cost could exceed $1 trillion,
emotional excellence is meditation, or
annually. This cost to the world
more generally, yoga, known for
economy must be in trillions of dollars.
thousands of years. The availability of a
In the light of such largescale
scientific measurement device for
negativity, why and how will one group
emotions means progress can be
of stakeholders work for the benefit of
audited.
all stakeholders? There is but only one
There is an emerging awareness of
way to actualize the New Statement, and
the importance of emotional excellence
it is to introduce a program to enhance
in the United States. Peter Salovey, now
internal excellence, emerging as better
President of Yale, and John Mayer of the
human beings in the process. No
University of New Hampshire, coined
amount of training and the myriad of
the term emotional intelligence in 1990.
otherwise useful approaches will cut the
Harvard Business Review has carried
mustard.
multiple
articles
on
emotional
In the light of such large‐scale negativity, why and how will one group of stakeholders work for the benefit of all stakeholders? There is but only one way to actualize the New Statement...
excellence) are now understood to be critical components of leadership. Yogic processes can enhance intuition. The
The high level of internal excellence
intelligence. Daniel Goleman’s 1995
in the case of Dabbawalas is due to
book, Emotional Intelligence sold 5
bhakti, or devotion to God. They are all
million copies and it has been translated
Varkaris (pilgrims) who travel 200 km
into fifty languages. Yale even has a
on foot from one set of temple towns to
Center for Emotional Intelligence whose
Six Sigma Grandmaster Certification
another every year. To the Dabbawalas,
motto reads, “Emotions Matter.” HBR
Program and Award Launched
their customer is God; how dare they
says that Goleman’s article on emotional
Six Sigma and Advanced Controls, Inc.,
serve lunch late or deliver it to the
intelligence is one of the most archived
(SAC) has launched their firstinthe
wrong address. Bhakti is also the X
in their publication.
world
reader may also enjoy reading the article, How to Measure and Strengthen Your Intuition in Forbes.
Six
Sigma
Grandmaster
Emotional intelligence is an
Certification program and award. The
intellectual inquiry to fundamentally
award is given to organizations and
Bhakti cannot be produced on
understand the importance of emotions
individuals who have understood the
demand. You either have it or you don’t.
within oneself and in others while
importance of internal excellence in the
Fortunately, the pursuit of higher levels
emotional excellence is the wherewithal
pursuit of exemplary performance in
of internal excellence to emerge as a
of how to bring about the required
their respective fields of endeavor.
better human being is also a wellposed
positive changes from within with
scientific problem. Internal excellence
meditation.
factor for low defect levels at the Kumbh Mela.
cannot be measured but emotional excellence can, and this is fortunate
awards are given in recognition of
Intuition, emotional 51
In six sigma parlance, several
and
increasingly higher levels of expertise in
(emotional
six sigma: (1) Green Belt – entry level
selfawareness,
intelligence
MARCH
2021
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