CONTENTS
Cover story
Startup story
The China challenge
Digital marketing & AI
Future leaders
Brands
Gallery
EDITOR Gp Capt R Vijayakumar ﴾Retd﴿, VSM
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EDITORIAL
Gp Capt R Vijayakumar (Retd), VSM
Rising Up Against the Odds
P
ersonally, I am at a loss to know how exactly I should
approach that combines the best of digital interface with human
begin this editorial while reaching out to you… Or even
outreach. In this context, please do watch the MMAKAS event
reaching out to people I regularly interact with! There
organised on the theme, “Oxygen Challenge and the Way
is always hope. So let me begin by hoping that you are staying safe
forward.” Click to view…
and healthy during these difficult times. I really hope and pray. With the second wave of the pandemic wreaking havoc on our families, healthcare infrastructure and economy, the falling infection rate nevertheless remains high for comfort. The slow pace of inoculation and the bleak global economic outlook adds to the uncertainty of our times. The RBI may have retained its projection for now, an optimistic scenario that can be envisaged at this juncture. However, it could take several more months before glimpses of an economic rebound could be seen. We must also prepare for the likely next wave: we must ensure that we implement strict pandemic protocols, ramp up vaccine production and medical supplies, and fill gaps in health infrastructure. India has no options today, but to achieve its audacious vaccination goal. This would involve an innovative
The Passing of a Colossus If there is one environmental movement since Independence that brought communities together at the grassroots level, then the only name that comes to mind is the Chipko movement. Sunderlal Bahuguna’s passing has undoubtedly marked the end of idealism and inspiring activism. His message that the true worth of nature does not lie in the profit that accrued from its exploitation but in life itself. His message will continue to inspire. As a tribute, KAS and MMA is hosting a unique event on 5th June on the occasion of the World Environment Day on the theme, “Sustainable Development Goals 2030 – The Way Forward.” Do watch the programme, get inspired and learn more about environmental protection and its impact on each one of us.
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Next Gen Businesses & Start‐ups…
growth, we still have very few women entrepreneurs. We need
In today’s hyper competitive business world, earning the trust of
more women entrepreneurs for the nation’s progress. The focus
customers is more challenging than generating profit from any
should be on ensuring better education and health, increasing
entrepreneurial ventures. Organisations that focus on constant
female labourforce participation, reducing wage differentials
product innovation, customer centricity, affordability and quality
and improving career advancement practices that promote
must take the lead to establish unique brand identity for
talented women into leadership and managerial roles.
themselves. Visionary leaders can often see the potential and
Empowering half the country’s potential workforce offers
opportunity in challenging times. These leaders embrace the
significant economic benefits beyond promoting gender equality.
unknown as a blank canvas for innovation, experimentation and
MMA Women Business Council (WBC) has put in place a number
pioneering new possibilities. Innovative ideas or grandiose visions
of initiatives, and the most significant one being the women
are meaningless if not followed up by action. The flair and
mentorship programme. Please check out this site to sign
charisma often associated with the visionary leadership style must
up for the programme. We strongly believe that networking
be balanced by discipline, focus and a specific course of action.
and mentoring clearly matter for the success of women
At MMA, we always endeavoured to promote innovation through
entrepreneurs.
a number of initiatives, including the CavinKareMMA Chinnikrishnan Awards for Innovation which is being promoted at the national level. In this context, MMA is organising a unique event on the theme “Unleashing Creativity and Innovation in Next Gen Leaders” on 11th June 2021. Please do watch the programme and take the message forward to foster innovation
Also read and watch WBC event by Ms Mythili Chandrasekar brought out in this issue. Watch out for the forthcoming inspiring events featuring Dr Lata Kumar on 7th June 2021 and Ms Babita Baruah on 16th June 2021. For India to become a $5 trillion economy, entrepreneurship by women plays a bigger role.
among Next Gen leaders. Startup India is a great initiative. But without setting targets, how could one measure its success? An IBM Institute study finds
Take care, my dear members, and stay safe.
that 90% Indian startups fail within the first five years of their inception. I believe that the reason why Indian startups fail so
Happy reading!
early are due to the lack of innovation and leadership, weak business models, poor planning, faulty customer insights, lack of original ideas, lack of focus and leadership gaps. A majority of startups simply copy successful models without unique local insights. In this context, do watch MMA’s startup series hosted by Mr Shankar, founder, CAMS. If you have missed the event, read the transcript of the recent discussion with Nithin Kamath, founder, Zerodha, in this issue with embedded video. It is our humble initiative to raise the odds of startup success! MMA’s Initiative for Women in Business It is disheartening to know that despite India’s rapid economic 6
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Z
erodha means 'no impediments.’ The
ideas. People think that Zerodha is a broking
company seeks to remove impediments in
platform. I know you represent a larger eco-system.
the life of an investor. Nithin Kamath, who
Can you walk us through your journey?
is driven by passion, is the architect of India's finest
We do broking but we are not really a broking
trading ecosystem and one of India's bestknown
platform. All of this was not planned from day one.
fintech companies.
Things evolved and we adapted quite fast. We
Zerodha has received many awards; the most
learned where the opportunities were. One of the
recent being the coveted ET Startup of the Year
reasons for us to be able to quickly grow was our
(2020) award. There is an entire focus on meeting
organizational structure. We are still a bootstrap
customer needs using a very responsive website.
business. We don't have any external investors. So
Their focus is on market expansion rather than
in all the decisions that we took in the last ten years,
replacing an existing supplier in the market.
we did what was right for the customer and the business as well.
Nithin Kamath, Founder & CEO, Zerodha, in conversation with V Shankar, Founder CAMS & Director, ACSYS Investments Pvt Ltd
In 2010, when we started Zerodha, I used to trade the markets very actively. My younger brother joined me in 2006. He was a better trader. So we decided that he should continue trading and I should
S: The approach that you have towards application,
give a shot at broking business. The reason for the
funding and infrastructure closely mirrors my own
idea was also because NSE had launched a free BUSINESS MANDATE
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transparency to the industry. In any banking or broking, the deals are offered based on net worth.
I am sometimes called a technologist but I am more a business guy. Initially, we did not have big ambitions. One lakh customers was the maximum we could think of as our goal. 2010 was probably the worst year for brokerage as an industry historically.
We decided not to change our offering for any customer, irrespective of how much revenue it generates or how rich he is. We treated everyone alike. In the bargain, we could be transparent. We started blogging. I put my head in all the online forums and as a CEO of a broking business, answered questions transparently. In the Indian broking industry, until then, I had never seen something like
trading platform for brokers, which is called NFC now.
that. Everything was very opaque in the way the business operated. So what we disrupted when we started was transparency, and not pricing.
‘If a trading platform is coming up for free, why can’t we go and disrupt the pricing?’ I thought. In India, brokers were still charging a percentage as
In 2013, Kailash Nadh joined us and around him
brokerage fees. It didn't make any sense in an online
our tech journey started. He is a monster and the
world to be charging a percentage commission. So
best technologist I've seen in my life, and it was
we decided to charge a flat fee for trading. When we
serendipitous that we came together. He was a co
started in 2010, our ambition was just to have a
founder of a startup called ‘Sensible,’ which I was
broking platform on the back of a vendor platform
bankrolling but it did not take off well. I convinced
to cater to active traders and F&O (Futures and
him saying that there is a mother of all bull markets
Options) traders.
waiting to happen in India and told him, “Why don't
I am sometimes called a technologist but I am more a business guy. Initially, we did not have big
ideas matched quite a bit. He came on board. With Kailash, we started building a product. In
we could think of as our goal. 2010 was probably the
2015, we launched the first inhouse trading app
worst year for brokerage as an industry historically.
called Kite, a web and mobile trading and investment
Around 201213, we sensed the potential and decided
platform. The best thing was that Kite launched the
to build a large business, not just for active traders,
API ecosystem, which powers the trading platform
F&O traders or intraday traders but also for
before the trading platform itself. We launched the
investors.
KiteConnect API. We had to keep it simple, minimalistic and
For the first three years, it was completely a white label platform. We brought in a lot of 12
you come and join? Let's build this together.” Our
ambitions. One lakh customers was the maximum
Disrupting the Transparency
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goodlooking, but we also had to give all the bells and whistles that active traders required. We went for
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zero brokerage for equity investing. People generally used Zerodha for active trading and ICICI or HDFC for investing. We wanted to change that image.
years compared to the first few years. The API ecosystem we built was very valuable for other startups to come and build on top of us. We
So we completely let go off brokerage charges
launched Varsity, which is our education initiative.
for equity investing because anyway, we were not
Varsity is an extensive and indepth collection of
making too much money from equity investing trade.
stock market and financial lessons and is one of the
That worked really well for us. The virality hit for the
largest financial education resources on the web.
first time. People came in and liked the new user experience. They started inviting people.
We realised that the capital market ecosystem in India requires a niche user experience and not another buyandsell trading platform. So we opened
Opening the Online Floodgates The biggest roadblock for us in this whole journey was onboarding a customer. Then Aadhaar happened, followed by demonetisation and online onboarding. Previously, we had 100,000 customers. Once it became online, onboarding became easier. In 2016, when we went live with Aadhaar, our customer base grew and we are at 5.5 million customers today. It has grown 55 folds in the last five
up this API ecosystem and invited startups. Firstly, they didn't have to do the job of building the infra. Second, they didn't have to worry about regulations and compliance. Third, they can go very quickly to the market. But the most important part was that we said, “If you build a good product, we will showcase it to your customers.” In the business of money, validation of a product was really tough. BUSINESS MANDATE
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think there's anything rosy in business and
Money has really never been our focus right from the start of this business. If it were, I would have raised money a long time ago. We have been offered ridiculous valuations over the last one year by the biggest VCs and PEs in the world.
entrepreneurship. The toughest pieces of my journey were actually preZerodha when I used to be a trader than postZerodha. I worked in a call centre for three to four years. You are one of the few large organizations who remain bootstrapped at scale and you made very cogent and strong remarks for being what you are now. But if you decide to list, do you think that migrating from a hope-and-glory sort of valuation to a proper fundamental valuation based on revenues and profits seems like a step down?
Money has really never been our focus right
The first startup we met was a company called Smallcase who has done really well now. We also realised that there was an investing opportunity. So we started in 2017 ‘Rainmatter’ which is a Fintech fund and incubator. By then, we were profitable and invested between 250,000 to 500,000 dollars. In our initial years, the regular mutual funds did
from the start of this business. If it were, I would have raised money a long time ago. We have been offered ridiculous valuations over the last one year by the biggest VCs and PEs in the world. I don't think there's another guy on this planet who would say no to this kind of money. If we were to list, then the market forces will
not fit in well with the theme of our business and it was not going well with our transparency. When the ‘direct mutual funds on exchange platforms’ got introduced, it suited us perfectly. In 2017, we launched ‘Coin’ which is today India’s largest direct
The products kept getting better. We now have the third version of Kite platform completely built from ground upwards. In 2020, Covid happened and the business suddenly has grown out of proportion
Robinhood, a large US broker very similar to ours, is valued at $60 bn. So someone will compare our adjust automatically. The valuations have moved away from profits and price/earnings to just growth potential and whether you are in the top one or two of that particular vertical. I know Kailash is doing a fantastic job. Your big
in the last one year. It has been a fascinating journey. But lest we should give the impression to entrepreneurs that it is all a bit of roses everywhere, we would like to hear about scary situations as well.
There have been many scary situations. I don't 14
earnings, then they will look at competitors.
valuation to that of Robinhood and the prices will
mutual fund platform.
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move our valuations. If we list it, say 15 times our
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differentiator is free and open source software. Have you faced any form of pushback from the regulatory environment for the software that you are using, since you are not using branded software?
Not really. We sit on a bunch of committees with regulators and exchanges. Compared to a black box
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where you don't know where you can go wrong, ours is something that is being used by so many people
In the first few years of our business, we understood the importance of not having technical debts and dependencies on vendor platforms. Almost every single thing in our business is owned by us.
and issues are getting reported and resolved then and there. So, there has never been a push back. On the contrary, we have been proactive with and nudging the regulators. What I find impressive is that the ownership of technology is strategic for you. It comes through in the products that you develop. What is your system for taking user inputs and incorporating them into your projects?
We don't have product managers and all that. I work closely with a team of 15 young boys and girls
Not a single person on this team has quit till date.
who understand markets well and constantly get
Rainmatter seems very interesting. Do you take
feedback from different places. They come up with
outside money for funding? A lot of investors will
a bunch of suggestions. I take it to Kailash and the
be interested!
tech team and work out the roadmap. That is how simple it is.
(Laughs) No, we don't! Our investments are done for impact and not really for returns. We have
To give you an example, ‘Coin,’ which is
extended that to Rainmatter Climate through which
probably the largest direct mutual fund platform in
we are investing in climate change startups. If we
India was built by two people on the Tech team and
start taking outside money, then we have to worry
is being run by a four member team. It manages our
about ROI and all of that. This is like CSR Part 2 for
15,000 crore AUM (Assets under management)
us.
today.
It is always perceived that broking is a risky
In the first few years of our business, we
business. Every now and then, we hear about
understood the importance of not having technical
somebody going belly-up. Is there risk in the
debts and dependencies on vendor platforms. Almost
business and how do you manage?
every single thing in our business is owned by us. We
The risk in the broking business is based on how
have invested from Rainmatter in a company called
much you give leverage. The more leverage you give
ERPNext. The software is fast and it runs all our
to your customer, the higher the risk you are taking.
backoffice platforms.
One of the other reasons for Zerodha to start was
For our email, we use Listmonk, an open source
that SEBI in 2009, following the financial crisis,
mail manager and send 10 to 20 million emails a
introduced short margin penalties. Every broker has
month, spending just $20 to do it. If we use
to collect a certain margin from the customer; if not,
Mailchimp, it may cost probably one crore a year for
there will be a penalty applicable for the next day. It
sending emails. We have a 34 member tech team.
has brought a level playing field.
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I have never really understood crypto as an asset class. If the Government had allowed Zerodha to trade in Crypto, we would have done it. However, there has to be some checks and balances.
What about the risk with the platform and infra?
At Zerodha, we haven't found a use case for
Once in a while, we hear that even NSE and HDFC’s
Blockchain. We use a little bit of AI during our IPV
networks have broken down.
(In Person Verification) process for image
No tech platform can be up all the time. Most of our customers are 20 to 35yearolds and very active
recognition. We have not built it and use ‘Amazon Rekognition API.’
on social media. If we are down even for one minute,
I have never really understood crypto as an asset
we trend on Twitter and it becomes chaotic. In terms
class. If the Government had allowed Zerodha to
of technology risks, we are ringfenced because the
trade in Crypto, we would have done it. However,
customers, during onboarding, sign a document that
there has to be some checks and balances. It can't be
they are aware of the technology risks.
allowed the way it is right now, which is just a Ponzi
In the Futures and Options business, in which 95 to 97% of the turnover happens, there is risk. People use leverage here. For example, they pay 1.5 lakh rupees to buy 7 lakh rupees worth of nifty
scheme. The question is, how do you regulate it and who will do that? Regarding the nonfungible token, which is like a digital piece of art, I can't make any sense of it. May be I belong to the old school.
futures or for short override. Tomorrow, if some big
What is your view on the valuation of listed stocks?
world crisis happens, the brokers can have an issue.
The listed company valuations are mirroring private
We need to be prepared for a Black Swan day. We
equity valuations.
keep a corpus for this. But thankfully, SEBI has been
My personal view is that we should not be
extremely proactive over the last five years and has
looking at stock market going up but at the value of
brought in regulations and reduced the risks in the
money going down really fast, artificially making
industry.
everything else seem like they are going up. Palm oil
I want your views on crypto, blockchain and non-
and many edible oil prices have gone up nearly 100%
fungible tokens (NFT). Our government has taken
in the last one year. Crypto assets are going up. Real
radically opposing views on crypto. Is NFT a new
estate in Florida is at an alltime high.
investment asset class or a fad that will go away
What about Zerodha’s way forward? Do you have
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There are some basic risk management rules that an investor has to follow like—don’t go against the trend, don’t put all your eggs in one basket, if you are going against the trend, do it small… and things like that.
plans of entering into manufacturing, AMC,
they decided to buy the stock—based on gut feeling
payment space and so on?
or someone’s advice. Then the company’s P&L will
Not really. Capital Market is our core, where we want to go as deep as possible. The odds of succeeding in your core competency are higher. Lending could be a natural extension for us but I don’t enjoy it. I am rather an anticapitalist in that way and feel that people should not borrow to buy
be flashed to help them take an informed decision. Last year, we cautioned against penny stocks buying through penny stock nudge, to alert customers if they are unaware that they are investing in a penny stock. We want to value our customers more important than the revenue we generate from the business. How do you engage your time? Has it changed
things that they don’t need. I feel that we have to help people to become
qualitatively in the last few years?
better with their money. This is an area we are
One of the best things I did was to stay away
looking at. We have thought of a platform called
from the Tech team. Until 2015, I used to sit with
‘Nudge’ on top of the user experience layer of Kite’s
them. Now, my focus is taking our company forward.
web and mobile app. There are some basic risk
I spend an hour or two each day talking to customers
management rules that an investor has to follow like
and answering their queries and understanding
—don’t go against the trend, don’t put all your eggs
them. I clear all my emails and keep my inbox clean.
in one basket, if you are going against the trend, do
Other than business, what are your facets?
it small… and things like that.
I am a big sports buff, having played different
Following these rules, your odds of winning go
sports through my life. I have played a lot of
up exponentially. When YES Bank debacle
basketball. I have done long cycling rides. I love
happened, the most held stocks on Zerodha were in
music and play a bit of guitar. My son plays drums
YES Bank by passive investors. We have realised that
and we play together. My mom is a Carnatic
we have a short time window to teach the customer,
musician. Over the last one year, I am practising
that is—a few seconds before he/she clicks the buy
western guitar.
button. We will be asking a few questions on how 18
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Q&A Session with the Audience How do manage to retain your Tech team?
Not just the Tech team but nearly a 100 of core team are with us from start. It is because of the freedom they have in the job. Everyone in the Tech team owns a product. They think they are ethical hackers than so ware developers. As there are no external investors, there are no pressures and revenue targets. We have never poached from others. As a strategy, we have always hired freshers and helped
Nothing that happened in Gamestop can
With SEBI coming up with lower
happen in India. But trading in Futures and
leverage regulations, will your revenue
Op ons is a risk. My advice to people who
be affected?
trade in F&O is to trade with money they
Yes. But, with lesser leverage, customers
can afford to lose.
will be able to remain invested for a longer
How is your competition scenario?
In the last one year, because of the
period of me and that will help us and the en re ecosystem.
valua on of Robinhood going up from $5Bn
Compared to US markets, why is
to $60Bn, a lot of VCs are funding our
Zerodha’s transaction cost higher?
compe
ons. Our business is about
Our systems are much be er than Western
products. Whoever has a be er product
systems. There are statutory levies like
will win the game. More money does not
stamp duty. In the US, the broking firms
guarantee that you can build a be er
may charge less but the way they operate
product. We have a 2 to 3 year distance
is o en unethical. Many firms sell the
with respect to our compe
orders to higher frequency trading firms
on.
them grow. So they feel like family
How local is your platform? Why are
and make money. In India, if you place an
members.
you not opening up to international
order on Zerodha, it has to go directly to
investment and not offering US stocks
the Stock Exchange. So the comparison is
to Indian investors?
not an apple to apple.
I stayed for some me in the US and tried
Could you have raised external capital
to take our user experience and replicate it
and raised 5 million customers much
there. It did not work out. Because in the
faster?
What are the fintech opportunities available for youngsters and young MBAs?
The Advisory ecosystem has not grown in our country and there is lot of opportunity which will open up over the next 5 to 10 years. The quality of people who advise is not high and o en there is conflict of interest. In the US, Advisory role is highly valued. We will also get to that point.
underlying elements—technology,
We started off very raw without any plan.
exchanges, depository, clearing
By 2012‐13, we started making money and
—everything is different. So we decided to
VCs were showing interest. At that me, we
s ck with India. It has to be another
did not need the money. We have grown
Zerodha built from scratch for overseas
without spending any money in marke ng
markets. We have not dealt with US stocks
and adver sing.
Recently we came across leverage
because the cost of remi ances is too high.
trading in the US leading to a bubble
If this cost comes down, we will do that.
burst. Can this happen in India?
I think you are referring to the Gamestop fiasco. The way a company stock can be shorted as it happened in Gamestop is ridiculous. SEBI has done a fantabulous job in safeguarding retail investor interests.
What is your take on Dogecoin?
What do you recommend—products and customers first and then creating a demand for products vs. acquiring
It seems to be like the mother of all
customers at high cost and then
specula ve assets (laughs). When it crashes
developing products and platforms?
like the dotcom bubble, a lot of retail
It is a no‐brainer. It is always products and
investors will lose their money.
customers first.
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O
ne of the top challenges that
the revenue and profit growth compared
potential programme and 73% of HiPo
organisations face is having a
to companies with weak leadership
programmes fail to deliver business
pipeline of strong leadership
bench strength. However, less than 1 in
outcomes.
talent. Global Leadership Forecast
3 Leaders including HR Heads say that
2021, a report published by a leading
they have the right leadership for their
What Ails Future Leader Development
talent consulting firm, DDI, shows that
organisation. As Korn Ferry Leadership
Programmes?
55% of leaders (out of over 15,000
Potential Survey (2019) says, “it is
There are three most likely reasons for
leaders surveyed) rank “Developing next
obvious from our research findings that
this. The first and most important
generation of leaders” as their top
CEOs and Boards lack confidence in
reason is the mistake that most
challenge. CEOs rank this higher than
their future leadership pipelines”.
organisations make of equating high
“Global recession and slowing economic growth”!
systematic process for identifying and
Status of Future Leader Development Progammes Research by SHL, a leading talent management
Many companies do not have a
consulting
company,
shows that companies with strong leadership bench strength achieve twice
developing their future leaders. The future leader programmes, often called FLPs or HiPo programmes, also fail to deliver results even in companies where they do exist. SHL’s HiPo EBook says that only about 50% of the companies they surveyed have a systematic high BUSINESS MANDATE
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performance with high potential. Performance is about delivering results, meeting or exceeding goals in current (or past) roles, whereas Potential is about the ability to succeed in more complex and higher roles. Performance is about past and present whereas Potential is about future. It is easier to measure
performance
as
most 21 JUN 2021
development 3.
How can organisations have a robust, reliable process for identifying and developing future leaders or high potential talent?
A
talent
board,
chaired
preferably by the CEO, to review the results of the process 4.
Development
programme
tailored for high potentials The above steps are described in more detail below. Key Competencies of Future Leaders or High Potentials: 3 ARCs Based on experience of working with
organisations have a performance
working in H.O. or in the same locations
management system (PMS), whereas it
as the nominating managers, tend to get
is very difficult to assess potential.
favoured, compared to those working in
SHL’s research shows that only 15%
far away locations. This results in
of high performers are high potentials
missing out on potential candidates for
(HiPo Ebook). Hogan, another leading
consideration.
many leading global organisations and research insights, I propose the following five key attributes as important for a future leader: Ability, Aspiration, Agility, Resilience and Commitment.
talent management consulting firm,
As Aon (a leading HR consulting
says that 30% of high performers have
firm) says in Finding the Future Leader
a. Ability:
high potentials (The Politics of
white paper, “most organisations rely on
One of the most important capabilities
Potential,
Therefore,
a combination of performance data and
of a future leader or high potential is the
identifying all high performers as high
gut instinct to make critical decisions
ability to perform or deliver results at
potentials, which many organisations
about promotions and leadership
higher levels in the organisation.
do, leads to a failure of leadership
development, a process that is
development or HiPo programmes.
unreliable at best and deeply biased at
Hogan).
The second reason is that many
worst.”
Many organisations have clearly identified the competencies they expect from their leaders. These could be the
organisations rely only on line manager
How can organisations have a
basis for determining nominations to
nominations of high potentials. Line
robust, reliable process for identifying
the high potential category. The
managers’ judgements are subject to
and developing future leaders or high
leadership competencies should include:
bias and the tendency is to prefer those
potential talent? A few key steps have to
developing a vision or broad goal(s)
who are most like them, i.e., have
be put in place:
sometimes called strategic thinking,
similar
approach,
interests,
and
Defining the key competencies
effectively communicating to the team,
background. Such an approach misses
that future leaders need to
gaining their commitment, developing
out on diversity of talent.
demonstrate
the road map for achieving the goals,
The third reason is not “casting the net wide”. For example, those managers 22
JUN 2021
1.
2.
A reliable, objective process for identifying strengths
the and
leaders’ areas
BUSINESS MANDATE
fountainhead of excellence
of
monitoring progress and delivering results. These broad set of competencies would also include competencies related
to people, customers and stakeholders. Future leaders or high potentials
Many businesses have faced serious setbacks, and the ones which have pivoted their business models and are still growing are those with leaders who have resilience.
must demonstrate these capabilities or competencies. Considerable research has shown that Emotional Intelligence is a key component Emotional
of
leadership
Intelligence
ability.
has
four
components: Self Awareness, Self Management, Social Awareness and Relationship Management. Research has shown that successful leaders have high levels of emotional intelligence. Leadership competencies coupled with
emotional
important
intelligence
requirements
of
agility has emerged as a key attribute of
and knowledge. Resilience is a key
future leaders. Agility is the ability to
attribute that we should look for in future
learn new aspects of the business quickly
leaders and high potentials.
and act based on that learning. Agility is
are
also the ability to anticipate future
e. Commitment:
high
changes, market trends, competition and
For the organisation investing in the
respond appropriately very quickly.
development of future leaders, it is
Future leaders must score high on Agility.
important to know if the individuals will
potentials. b. Aspiration:
stay longer with the organisation. Future
Aspiration is the strong drive to reach
d. Resilience:
leaders demonstrate commitment to the
higher positions in the organisation.
The pandemic has brought to the fore a
organisation;
Future leaders have a high level of
very important attribute of successful
demonstrate the organisation’s values
aspiration. This is backed by few other
leaders, namely, Resilience. Many
and purpose.
characteristics, viz., they are motivated
businesses have faced serious setbacks,
They have both a rational and
by challenging assignments, exercise
and the ones which have pivoted their
emotional commitment to the growth
authority and take on responsibility,
business models and are still growing are
and success of the organisation.
enjoy a wide variety of work, like to have
those with leaders who have resilience.
the autonomy to take decisions. In
Resilience is the capability to recover
addition to these characteristics, high
from setbacks, having the required
potentials also put in the time and effort
mental and physical energies and an
in selfdevelopment, take the initiative
optimistic outlook to continue to work
and take on the responsibility.
towards goals. Extracting valuable
In summary, the five key attributes
learning from failures and modifying
that distinguish a future leader or high
future course of actions is a key attribute
potential
As business conditions are getting more
of these leaders. Resilient leaders also
Aspiration, Agility, Resilience and
and more impacted by VUCA world,
reach out to the right sources for support
Commitment, i.e., the 3ARC model.
c. Agility:
BUSINESS MANDATE
fountainhead of excellence
they
imbibe
and
This is demonstrated through putting in extra efforts, taking on challenges and in developing junior members of the team.
manager
are
Ability,
23 JUN 2021
Reliable Process for Identifying
assessments.
Future Leaders
process would be a “Potential
perceived by subordinates and
What process should an organisation put
Assessment
Centre”
peers.
“Development
Centre”.
in place to identify future leaders? Based
The
4.
observed
/
Talent Board comprising of CEO,
business simulation exercises
Board reviews the data from 1, 2
conducted by a group of
and 3 above for each nominated
experienced assessors over one
manager. An indepth discussion
Nomination by line managers
or two days. The outcome will
of the capabilities of each
supported by performance data
highlight the strengths and areas
nominated manager is required
and the line manager’s rating on
of development of each manager.
before the final identification of
the 3ARC attributes. This step is
This can be used to provide
the high potential talent pool.
important
following fourstep process:
manager
ensure
line
valuable
the
This is an extremely important
involvement
and
manager and can also be used as
part of the process as this brings
the basis for high potential
in top management commitment
identification.
and involvement.
to
commitment. An
objective
process
for
to
At the end of this process, it should
be conducted by an external
extremely valuable insights into
be possible to place the talent pool into
agency specialising in potential
an
24
3.
feedback
360 Feedback, which provides
assessing potential which should
JUN 2021
or
as
CXOs and HR Head. The Talent
leading global organisations, I propose the
2.
behaviours
this
nominated managers go through
on my experience consulting with many
1.
Typically,
individual’s
leadership
BUSINESS MANDATE
fountainhead of excellence
a nine box grid as below:
Usually, the individuals in the green boxes would be classified as high
In terms of development inputs, on the job experience or handling stretch assignments should be about 70% of the inputs and the remaining 30% can come from workshops, class room training and guidance from mentors.
potentials or future leaders. However, a detailed discussion on the individuals in other boxes would also be needed to determine their development inputs and career paths. This is talent planning and is a very important part of talent management. This process helps not only in identification of future leaders or high potential talent pool but also in career planning for the rest of the talent
other
The
is in the way future leaders or high
pool.
expectation from the high potentials is
potentials are identified. Relying only
that they should learn, reflect on the
on performance data or only on line
Development Inputs for Future
learning and get feedback as they
manager nominations is negatively
Leaders
progress through these assignments.
impacting the identification process.
development
inputs.
Having identified the future leader
In terms of development inputs,
talent pool, the next important step is
on the job experience or handling
Resilience and Commitment (3ARCs)
to provide them with the right
stretch assignments should be about
are the key attributes of a future
development inputs. Traditionally, 70% of the inputs and the remaining many organisations follow the 30% can come from workshops, class
Ability,
Aspiration,
Agility,
leader. A combination of line manager
70:20:10 principle and place a lot of
room training and guidance from
importance and invest significant
ratings, performance data, objective
mentors.
potential assessment through a
amounts of resources in providing classroom training (workshops or executive education programmes) almost to the extent of 70%; followed by projects, assignments and mentors to the extent of the remaining 30%.
A mentor who is at a very senior
reliable, valid methodology, 360
level within the organisation, who can
feedback and talent board review is
guide and supervise the progress of the
likely to lead to a robust process for
high
identifying future leaders.
potentials
through
their
development programmes, would be needed.
inputs
should
consist primarily on the job experience
However, research has shown that the most effective development of high
Development
(about 70%), and learning from
Summary
potentials is through experience, i.e., Companies with strong leadership by getting them involved in high
bench strength deliver superior
stretch, high risk projects and
performance.
assignments, but with the safety net of
programmes to identify and develop
job security. Job rotation, exposure to
future leaders are not working well in
various aspects of the business are
most organisations. The main problem
The
BUSINESS MANDATE
existing
fountainhead of excellence
mentors, coaches, etc., and formal training (about 30%). Development of future leaders is most effective through high stretch, high risk assignments, job rotation and exposure to all aspects of the business. 25 JUN 2021
26
JUN 2021
BUSINESS MANDATE
fountainhead of excellence
R
American
of danger and uncertainty, but they are
external adaptation and internal
psychologist Urie Bronfen
also the most creative of any time in the
integration. Culture is not static. It
brenner stated that human
history of mankind.”
evolves.
ussiaborn
development is “powerfully shaped by
At this momentous time, when
Taking a basic definition of
conditions and events occurring during
things around us are indeed shaping a
leadership as a process of influence,
the historical period through which the
new world order and much has been
leaders influence culture, and culture
person lives’’.
said and written about the pandemic, I
influences leaders. It is in this creative
True to what Urie Bronfenbrenner
think the impact on macro institutions,
tension that adaptation occurs. I request
has said, the pandemic continues to
organisations and individuals will
our panelists to look at the year that has
rapidly shape our attitudes, values, life,
continue to resonate for several years.
gone by and what this pandemic meant
and work orientations. No one knows
From an ecological systems theory
to their organisations, how they
how this will evolve and when this will
perspective, individuals shape the
responded, and the challenges and
end. So, what is the nature of
culture just as much as culture shapes
opportunities from the pandemic.
organisational culture and leadership
the individuals.
that will help and support employees in
MVN Rao: In April 2020, we started
Edgar Schein in his book on
our first phase of this journey with total
these complex times?
"Organisational
and
lockdown when the whole nation came
Dr Vasanthi: Let me begin with a quote
Leadership," defines culture as a pattern
to a standstill. Then we moved to the
by Robert Kennedy: "Like it or not, we
of shared basic assumptions that groups
second phase, from Aug’20 to Feb’21,
live in interesting times. They are times
learn as they solve their problems of
wherein we thought that we were
Culture
BUSINESS MANDATE
fountainhead of excellence
27 JUN 2021
100% perfection when the third phase
We talk about VUCA but there can be nothing more VUCA than this. We were trying to learn along the way. The leadership is also participating in learning, unlearning, and relearning. The solution of yesterday is not going to work today. ~MVN Rao
struck us. The present third phase has instilled a lot of fear—fear of life and fear of failure. There is a sense of despair and helplessness. In such a context, we saw a fantastic opportunity of the organisation stepping up and doing a variety
of
things
to
provide
psychological safety to employees, as a generally coming out of the situation and could get back to our workplaces. The third phase started in March’21 and continues till now. This phase is like a bolt from the blue. At L&T, we are a Projects company. We earn money by doing things on the ground where thousands of people come together and
In the first phase, lakhs of people wanted to go back home. Interestingly, the number of cases we experienced was significantly higher in our overseas projects than in India. The biggest issue then was moving them back to India and this big challenge kept us going. It was a very adaptive challenge.
turn designs and procurement into on
We talk about VUCA but there can
theground reality. We work in large
be nothing more VUCA than this. We
parts of the world, especially in the
were trying to learn along the way. The
Middle East, and India, in rough
leadership was also participating in
terrains. Our leadership team may be
learning, unlearning, and relearning.
based in Mumbai or other cities but
The solution of yesterday is not going to
work happens at sites.
work today.
L&T is not in the business of
In the second phase, when work
working from home. So it was very
resumed, we had to convince people that
much new to us. We were always
the workplaces were safe and they could
working on our campuses facetoface.
come back to work. It required a huge
I am not talking about our sister
amount of effort. I became a lot more of
companies who are into the services and
an administrative expert than an HR
more adept at these practices. Turning
person. We had to run transports,
the organisation digital and working
ensure clean and germfree workplaces,
from anywhere is an interesting thing
make people wear masks, and maintain
that we have experienced in this
social distancing. We practised these on
process.
an ongoing basis and almost reached
28
JUN 2021
BUSINESS MANDATE
fountainhead of excellence
responsible organisation. For us, culture is the way we do things. We run everything like a project as we are a project organisation. We have an executive team with distributed decisionmaking. We formed so many task forces. Initially, this even led to a bit of confusion but we made up along the way, be it in quarantining, admitting people in hospitals or communicating. As leaders, we could live up to the values and culture that we have propagated all the way. We could say that we are here to stay and we care for our employees and that they are the pivotal power of the organisation. Kavita Singh: Last year I was a part of the organisation where we had almost 26,000 workmen of all categories. Our infrastructure included over one lakh people with banks, schools, and hospitals on the campuses. It brought a lot of administrative skills to the fore. It was also a time that tested the culture of the organisation and how employees reacted, the decisiveness of
leadership, and thinking on the feet
connect with the organisation was not
ground, the connect got deepened. The
without really waiting for instructions
proportional to the time or tenure spent
other challenge was making use of time
every time from above. I experienced
in the company. It was more on how
in a structured manner. Even the laws
onboarding hundreds of people online.
they had experienced the organisation
for specific industries had to be pushed
For a brickandmortar company that
in terms of decisionmaking, the
back. We saw a huge play in terms of the
cannot do things remotely, it meant a
support they received at various stages
machinery of IR (Industrial Relations),
drastic shift. The workmen, unions, and
of their career, and the autonomy they
Unions, and Communities.
community supported us.
got to display their leadership skills.
In our projects, the migration of
Developing Culture
These were good learning nuggets.
labour hailing from other states posed a
In the first wave of Covid, we did
big challenge. The local community then
not see much impact. It is only now in
stepped in but it also had another
the second wave that we see it up close.
dimension: The community had
It has challenged every leader to be a
different expectations of reciprocity
people leader. You could not just be an
from us for the support.
operations
leader,
planner,
or
geophysicist. You had to keep the Number of Years Served Did Not Matter I learned that the employees' level of
human dimension at all levels. With good people leaders who
When you have thousands of people working, a culture is bound to be formed. The decisions that the leaders took, the messages they sent, and the experiences of employees developed the culture. In the crisis, culture got emphasized. People were extremely genuine in terms of expressing their vulnerabilities. A lot of people who could not establish a connect with the
made sure of their genuineness on the BUSINESS MANDATE
fountainhead of excellence
29 JUN 2021
product cycle times, shifting consumer
We have always talked about HR as a support and backroom role. This crisis is a platform for HR to take leadership. The senior management team, CEO, Board and everybody must rally together for the cause of employees' health and safety. ~Judhajit Das
preferences, and technological changes. I think it is getting amplified. Focus on Mental Health We always talked about the safety of people
from
a
physical
health
perspective. This is the first time in my career that I hear people talking so much about mental health, anxiety, depression, and stress which was
company wanted to go back. A lot more
where people have experienced grief,
unimaginable one year ago. It is great
who have been with the company for a
illness, psychological insecurity and loss
because it is something that will fortify
few years, having developed a deep
of jobs. The pain is at a visceral level.
us going forward.
connect, wanted to resolve and do
The two waves of Covid have taught us
We have always talked about HR as
something. There were people who just
that every six months or every quarter,
a support and backroom role. This crisis
wanted to wait and endure, to see the
we need to be prepared for a VUCA
is a platform for HR to take leadership.
outcome. So we saw different types of
wave. How do we cope with this?
The senior management team, CEO,
personnel and leadership responses.
It is like a rollercoaster ride. When
Board and everybody must rally
That was a great opportunity and, of
you are on a roller coaster, you might as
together for the cause of employees'
course, a responsibility to manage.
well enjoy the ride. I don't want to
health and safety. The employees look
Judhajit Das: I would like to look at
trivialize it but what I am saying is that
upon HR to provide solutions—whether
the various trends that seem to be
none of us know how the future is going
it was about logistics planning or
affecting us. My inherent belief is that
to pan out.
initiating policies. So it was a stepup moment for HR to play a clear
culture is the way we do things, but it is
How do we manage in the present
an outcome fashioned by many forces.
and mitigate the risks of the future? In
We are a microcosm of society shaped
the middle of a pandemic, we see the
by not only evolving consumer
IsraelPalestine conflict. There have
preferences
been elections, festivals, and a large
Since we cannot have facetoface
gathering of people. So, where are we
dealing, everything is now being done in
It has been a year of upheaval. We
learning from this? The fact is that we
digital. In terms of the workplace, will
have encountered death in many
are living in a world that is going to be
we have hybrid workplaces, and if so, if
numbers. There is grief in society. We
volatile, uncertain, and ambiguous, and
it will be 30: 70 (digital: physical) or 10:
need to recognise that. Ten years back,
with a shorter cycle time.
90, we don't yet have the answers. Even
but
also
employee
preferences.
we heard the word VUCA. We saw the
How we respond as an organisation
financial crisis in 2008. There was dot
has implications for business continuity,
30
progressive organisations did it with aplomb.
25 years back, I remember we talked about hightech and hightouch, from a customer perspective.
com burst. But this is the first time JUN 2021
leadership role and each one in
BUSINESS MANDATE
fountainhead of excellence
Fundamentally, I believe, human beings need touch and they want to be
Once we return to normalcy, the need for productivity and efficiency will hit us hard. Higher skill levels of workers will become important as we engage people from the community.
part of a tribe. The workplace is a great place to be in, to satisfy our need for belongingness. It is not possible in a virtual world to connect as effectively. We talk about HR reducing friction in
~Kavita Singh
organisations, acting as a lubricant. In a virtual world, frictions won't get amplified. The customer does not care for friction in an organisation and needs
open. We will expose our employees to
managers to manage.
only
But
the pandemic. What if something
Kavita Singh: When do we start and
organisations need people to come
happens to them? The biggest challenge
when do we stop our operations?
together and that has implications for
for us has been balancing the interest of
Thousands of employees come to work
trust, collaboration, and innovation. In
the customer and that of the employees.
trusting us. How do we ensure that they
a hybrid world, how much innovation
MVN Rao: If we allow 60% of the
are safe and we live up to their trust?
will happen is anyone's guess. Some
workforce to work at the site and the
These are our big challenges.
organisations may die and some may
rest to work from home, how long can
These are moments of truths in
learn to cope. We, therefore, need
we allow it? The next paradox is, how to
organisations. These are defining
resilience.
create confidence that the workplace is
moments when leaders have to make
safe enough to work.
decisions between right and more right.
a
positive
outcome.
We are living in a world of
What are the issues that are going to
disinformation. People are yearning to
We want to conserve cash because
trust. There is no substitute for personal
of the tight situation. But to make the
surface in the immediate future? What
credibility. So leaders must walk the
workplace fit for working, you need to
are the pictures that evolve?
talk. Culture starts with the CEO.
spend more money. For instance, in one
MVN Rao: In the second phase, we had
What was your biggest challenge during
of our projects in Oman, we used 60
adopted digital ways of working to a
the pandemic—the sort that tore you
buses to ferry workers to the site. Now
rating of 7 on a scale of 10. This digital
apart—bordering on culture,
we use 120 buses because of Covid
working will stick, though the
leadership, and practices?
restrictions. That is double the cost.
proportion may vary. Health and
Judhajit Das: We are in insurance,
How do we measure work done?
environment will take precedence in the
which is an essential service industry.
How do we measure productivity now?
conversations. Employee experience in
Serving the needs of customers with
The leadership has a big role to play in
working through digital modes will need
sensitivity is our longterm vision. If we
resolving
dilemmas,
to be revisited by HR. The leadership no
have to serve our customers and settle
communicating that we are empathetic
longer has answers to everything. We
their claims, then every office should
and creating the capacity in the
can make sense only collectively. At the
these
BUSINESS MANDATE
fountainhead of excellence
31 JUN 2021
•
Voice is so essential for transparency. Transparency is
Once we return to normalcy, the need for productivity and efficiency will hit us hard. ~Kavita Singh
key to decisionmaking and how decisions are communicated and understood. Transparency and authenticity have a close relationship. •
Leadership is changing. Leader
end of it, I am sure we all will be better
we want. The flexibility is enormous.
behaviours
off.
The traditional role of a manager is
demand
Kavita Singh: Once we return to
taken care of by technology. So people
competencies which, while they
normalcy, the need for productivity and
need to reinvent themselves.
exist today, are going to get
in
certain
the
future
kinds
of
accentuated. The tone gets set at
efficiency will hit us hard. Higher skill
What will this do to the role of
levels of workers will become important
governance and the role of the Board?
the top. •
Coupled with digitalisation, we
as we engage people from the
Judhajit Das: Investors who were
community. The genuineness and
earlier asking for margins and growth
authenticity with which a leader will
are now asking if our employees are
lead, be it in person or onscreen, will
safe. This is quite heartening. ESG funds
inspire people to either stay or fly off the
have become very popular. There is
company.
pressure on responsible investing and
E, S and G (Environment, Social
Judhajit Das: People focus will
governance. There is an acceleration in
and Governance), the rest of the
become very important. The first thing
the trend towards ESG compliance.
organisation and its culture will
you have to ask an employee is, “Are you
MVN Rao: ESG Score has become very
feeling safe and well?” You cannot ask
important for pension funds to put
about a task, in which case, you will be
money in organisations. There is
seen as insensitive. We have to
demand
humanise the workplace. The ability to
demonstrate that they are responsible
work from home will bring in more
corporate citizens.
women to the teams and this will promote diversity and inclusion.
on
organisations
to
will have more open forms of organisations. •
Psychological
safety
of
employees assumes a central theme in engagements. •
If the Board asks questions on
indeed change for the better. To end with Robert Kennedy’s quote: “Everyone here will ultimately be judged—will ultimately judge himself (herself)—on the effort he (she) has contributed to building a new world society and the extent to which his (her)
Kavita Singh: Technology has given a
ideals and goals have shaped that
voice to the vendor or receiver of your
effort.”
Another important question is the
services. They can ask more questions.
role of hierarchy and the different levels
Organisations are becoming more
of value addition. As meetings are
transparent with their reporting.
Remember, culture is a national phenomenon. It is for each one of us to
digitalized and travels reduced, do we
ask ourselves how we contribute to
need higher levels? In training, for
society during and postpandemic. That
instance, the batch concept is in online
Dr Vasanthi: To sum up, the key
culture is as important as all the other
mode. We can have as many people as
takeaways are:
requirements for an organisation that we talked about.
32
JUN 2021
BUSINESS MANDATE
fountainhead of excellence
BUSINESS MANDATE
fountainhead of excellence
33 JUN 2021
B
rands, as “products”, have a
Let me go back to Pond's
was about romantic attraction. “What I
“role” to play in our lives. But
Dreamflower Talc advertisements with
do” is to keep you fragrant. “Who I am”
they become big “brands” only
which I was associated.
is a symbol of romantic attraction. So in
when they connect with consumers and
The talcum powder basically fights
the same product category, we have two
have a little bit of “soul” that conveys a
odour control and gives you freshness.
brands. Then you add a little bit of soul
larger message. That message must go
We shaped Pond's Dreamflower Talc
to the role of the product in your life. It
beyond the product category. It should
girls into becoming an icon of feminine
is as simple and as difficult as that.
speak about life itself, touch us and
empowerment and confidence. In those
inspires us in some way.
days, working woman was a rarity. The
Role and Soul It is important for brands to not only have a defined role but also an evolved soul, so that they grow. Anything and everything that brand custodians do must have only one purpose—to make the brand grow in the market. Role is about 'what I do' and soul is about 'who I am.'
Dreamflower Talc woman was among the first women in advertising to be shown as stepping out to go and attend an interview and get a job in a man's world. So “what I do” is I give you a freshness after a bath and keep you fresh all day long. But “who I am” is a symbol of feminine empowerment, confidence and social confidence. On the other hand, Pond's Magic
34
JUN 2021
BUSINESS MANDATE
fountainhead of excellence
Role in Moment, Role in Life When Ford Ikon was first launched, it had the best acceleration in its segment in the industry. The role in moment was acceleration. Role in life was to be your josh machine. The important thing is that this soul comes from some product truth. If that vehicle didn't have acceleration, they could not have said, 'Josh.' It is up to the brand custodians to pick a value. Words like confidence,
factory but sell imagination and family
We must pick something that is true to the category and then pick a life value and a human truth, and something that is happening in the
expression in the shop. Product Enables, Brand Inspires Take a cola as a drink which refreshes
lives of the target audience that will bring extra
you. The product enables you to refresh
meaning to their lives and will make them think,
the moment and soothe your parched
inspire and provoke some conversations.
throat. But brand Pepsi is a youthful soulmate and fills you with swag. Take Mountain Dew. They make a lemon
empowerment, romantic attraction and
said 'we make lipstick in the factory but
drink in the factory but sell the spirit of
josh are all 'category agnostic.'
sell hope in the shop.'
courage. When every young man in a
A shoe can give you josh. A
We always ask this question: What
computer can give you josh. A bike can
do you make in the factory? What are
give you josh. These are life values that
you really selling? I am not selling just
brands choose, to go beyond the role
a talcum powder but feminine
and infuse some soul into the brand. It
empowerment and feminine confidence.
goes back to a famous quote by Charles
I am not just selling a car but the spirit
Revson, the founder of 'Revlon,' who
of josh. We may make paint in the BUSINESS MANDATE
fountainhead of excellence
small town in India picks up a bottle of Mountain Dew, he feels that he is a fearless guy. So the product enables and a brand inspires; a product gives you a role in the moment and a brand gives you a role in life; a product has a role, a brand has a soul. 35 JUN 2021
If you have a skill and talent, and in that line of
was about washing clothes but the soul
passion, if you can find a line of work and on
was about promoting conversations on
top of it, if you can earn, then really half the
parenting—that we don't just bring up a
problem is solved and life becomes quite easy.
good child but a good citizen. Jewellery Beyond the Occasion
Gender Equality from Washing
Probably, the wife will look at her
You must be familiar with the Ariel ads.
husband and say, "Did you see that?” or
Ariel is about washing clothes. The role
“I hope you heard that." That is the kind
in moment is to wash your laundry. For
of reaction and involvement we want.
Tanishq has many brands and many lines of jewellery. Weddings are traditional occasions. In promoting wedding jewellery, they took a slightly provocative stance. They talked about second
the outside world, they implied gender
If you notice, this is not done in an
equality by asking, "Is laundry only a
weddings and interfaith weddings. They
angry or aggressive way but quietly with
woman's job?" The washing powder
brought in a grandmother who teased her
a lot of grace and dignity. They say,
shares your load. A husband also has to
granddaughter and said, "You may be a
“When you share the load, you actually
share the load of his wife.
Punjabi but if only you had married a
multiply the love”. It is not just about
Tamilian, you could have brought a
washing
different kind of jewellery.”
They put the soul into the brand by being a little provocative and pitched it at the right time in society's evolution to say that laundry is not just a woman's job. They built on it year on year. They showed a mother teaching her son that he should also be involved in housework. They showed an elderly father who watches his daughter and then realises, "Maybe, I should have helped my wife too." We must pick something that is true to the category and then pick a life value and a human truth, and something that is happening in the lives of the target audience that will bring extra meaning to their lives and will make them think, inspire and provoke some conversations. Sitting in their drawing room, people will say, "That's exactly what happens in our house." 36
JUN 2021
clothes.
We
provoke
conversations on gender equality. Dirt is Good! For decades, a good mother was one who kept her children clean. While Ariel talked about sharing the load in washing clothes, Surf Excel talked about stain removal. It turned the whole idea of a clean child on its head. Just when parenting norms were changing and mothers were beginning to question what kind of children they wanted to bring up, Surf came up and said 'dirt is good.' Over the years, they showed a little boy getting dirty to help his sister and to help an underprivileged child in the neighbourhood. They kept building on the theme and showed children helping underprivileged people of other faiths and helping older people, for a little good beyond the home. The role BUSINESS MANDATE
fountainhead of excellence
The role in moment is to buy a wedding jewellery. The role in life is to encourage you to think about the new norms in weddings. Jewellery is just a product but to make it a brand, you add some soul in it. Thus, a product enables and a brand inspires. Skin Care and Real Beauty At a time when cosmetic and artificial beauty was on the rise, Dove which was about clean and clear skin went against cosmetic beauty and propagated real beauty. It said every woman is beautiful in her own way, however she looks and whatever body shape she has; every woman should feel empowered and confident about her body and feel beautiful about who she is. It is not just about what she looks like.
whole ecosystem—not just to the
Daughter, Wife and Mother
manufacturer and the marketer. There are
How can we map brands and the world
other brand custodians like the agencies
of women? Historically and rightly so,
that we work with, filmmakers who make
we have thought of women first as a
ow do brands build these ideas
the communica on on the brand, public
daughter, then maybe a girlfriend. Then
over a period of me? There are
rela ons people, media and a whole lot of
she may become a partner, a wife, a
five simple principles of brand
external
5 Principles of Brand Building
H
whole
mother and a grandmother. These roles
building:
ecosystem must buy into your truth, agree
are very important and that is what
Depict a truth: If you say that I
with your point of view and must strictly
shapes women. They love and enjoy
remove stains better, you have to first
follow the tone of voice.
these roles.
deliver on that product promise. As an
Consistency: If you pick a human truth
The daughter, wife or mother is
ad agency, we spend a lot of time
and a point of view, which is about life and
very much part of the soul, but women
investigating the product truth. Then we
based on a trend that is just star ng, in all
are beyond and over and above these
pick a human truth and match the
probability, you will be able to run it for five
roles. Similarly, none of those soul
product truth with the human truth and
or maybe even 10 years. If you s ck to that
creating
thus turn the product into a brand.
tone of voice, then you can build the brand
propositions of brands were instead of
Point of view: Add a point of view that
with consistency and consumers know what
the product value. Rather, they were on
is human. You may have a point of view on
to expect from your brand. Then it all adds
top of it. In fact, they sprang from the
paren ng, on women or on beauty. It has
up. Not everybody is si ng in the drawing
product truth. When women think
to do something with your category. Raymond took a point of view on men being masculine, and said a complete man
stakeholders.
This
If the point of view goes a little against societal norms or if it picks up a trend that is just
or
life
valueadding
beyond their roles, they grow in a unique way giving a fourth or fifth dimension and enhance all the roles that they play.
can also be sensi ve and can show his
beginning to evolve, then you
feminine side. If the point of view goes a
are in a good space and can
li le against societal norms or if it picks up
take your consumers along
Work vs. Career
a trend that is just beginning to evolve,
with you.
I started working exactly 40 years ago. At that time, working was not taken for
then you are in a good space and can take your consumers along with you.
room with pen and paper, wai ng to see
granted. A woman can be a daughter,
Tone of voice: You can make your point
what the ad says. It is not just the ad but
wife or mother. The role varies
the kind of programs you sponsor, what you
automatically. On top of this, she can be
do on social media, what kind of content
a lawyer, astronaut, bus driver or an
you create, what you write at the back of
anganwadi worker. It is something that
the pack and even what kind of promo ons
takes her beyond the role and makes her
you create. All of these need to be
grow.
of view without being aggressive but very quietly, with grace and dignity. Some brands have a humorous tone of voice, some have an aggressive tone if that suits them and the product. It is important to shape the tone of voice and stay true to it. Ecosystem: The brand belongs to a
consistent with the tone of voice and talk
Just like we find the product truth,
about the same product truth and same
we have to find our passion. It can be
human truth.
anything—gardening, birdwatching,
BUSINESS MANDATE
fountainhead of excellence
37 JUN 2021
innovations, content and thought
We have to make choices and decisions about balance and not question them every day. Be proud and confident of the choices that you make and move on with the flow.
leadership, though I was based in Chennai. I was given opportunities to work with clients in other cities. I managed to work on brands that belonged to other cities. I found interests of my own—like publishing articles, which would also be of interest to the organisation, and developed those
cooking. If you want to be a lawyer, you
So chase your work.
should be passionate about the cause of
interests. So there are always a way to turn limitations to advantages.
justice. Every woman or man has some
Find Your Balance
talent and skill. I thought I had a writing
Balance is important, whether you are a
skill when I started my work life and
man or woman. Everybody's heart is
was interested in communication. The
different, everyone needs to find their
world of advertising and branding,
own balance. It changes over the years.
If the organization was interested
attracted me. Communication was my
In one decade, the balance maybe a little
in training, I would offer to do training.
passion.
more of home and in some other decade,
One year, I created training content and
you may like to spend more time and
another year, I taught in IIM. We have
energy on your work. We have to make
a lot of industry awards. So one year I
choices and decisions about balance and
requested and became part of a judging
not question them every day. Be proud
panel. The next year, I tried to be an
and confident of the choices that you
international jury. This approach
make and move on with the flow. But
applied on the home front too.
If you have a skill and talent, and in that line of passion, if you can find a line of work and on top of it, if you can earn, then really half the problem is solved and life becomes quite easy. For 10 years after my child was born, I decided to work parttime. Even
importantly, figure out and work out your balance.
if I was in a meeting with a Managing Director, I would excuse myself saying
Change Limitations to Advantages
that I had to pick my son up from school
We must turn our limitations to
and leave the meeting. I told myself that
advantages. Much of my career was in
I would chase “work”. “Career” will
Chennai, and in those days, Chennai was
happen. If you chase career, then you
never seen as the best place to be in for
tend to get caught up in the race to
the world of marketing. Instead, it was
designations, promotions and money. If
Bombay or Delhi all the way. But I found
you focus on work, everything comes
that my organisation and boss helped
automatically.
be
me to turn that limitation into an
passionate about work and focus on it.
advantage. I became a lead on
38
JUN 2021
You
have
to
BUSINESS MANDATE
fountainhead of excellence
Keep Growing Every year, I would ask myself, "So what next?"
After my retirement, I decided to write articles again. I taught a course in a subject that I had never taught before. I learnt tarot reading and pranic healing. Now I am looking into some Sanskrit chanting. So keep growing, at work or at home. Everything adds up and helps you work better. They become your advantage, teach you balance and help you grow mentally, professionally, emotionally and spiritually. Support Groups
Lastly, just like brands have ecosystems, we need support groups. You can now put up a post in Facebook and crowdsource or get encouragement, sympathy or appreciation. It was not so 30 years ago. We then had our families’ support.
Ravichandran: In the communication
have managed to get things done and
industry, there is also a darker side.
get organizations and even clients to
an apartment complex where a group of
Objectification or likeability is imposed
support you. Can you elaborate how you
women supported each other looking
on women in any situation and
did it? Also, you have not bucketed
after each other's children. We did not
expectation is much more on women
yourself in Role A or B or C. You had
have physical support alone but had
than what men need to bring to the
your own clarity on what your soul was.
emotional support too. Women must
table. How do you combat this in your
If we define ourselves into one role,
have professional sisterhood in office. I
communication, your agency work and
after a while, we start living up to that
had some amazing women colleagues
in your day-to-day life?
definition and start accepting the
throughout my career, who were a great
Some communica on con nues to
source of emotional support.
objec fy. Change has just started and it's a
Women need friends. I grew up in
situation. How could you break out of it?
So chase the work, find your
long way to go. Brands will have to change
I had a lot of support at home—from my
balance, find your passion, turn
their tune. Over the last 20 years, definitely
husband and family. My organisa on was
limitations to advantages, keep growing
there is a lot of change. Not just women's
fantas c. I had the best bosses who never
and always have support groups.
brands but even men's brands are
said 'no' to anything that I wanted to try, as
Let me close with some famous
beginning to talk to women respec ully,
long as I didn't ask them for too much of
quotes. Eleanor Roosevelt said, "Well
because women are also becoming be er
money and investment! If you ask with a lot
behaved women rarely make history."
spenders and have money. Brand
of passion, then you will make it difficult for
You don't have to be perfect and polite
custodians need to become a lot more
them to say, 'no.'
all the time. It is okay, once in a way to
conscious. The more the society demands
get a little angry, to cry a little and to
that of brand custodians, the custodians
throw a little tantrum. Don't be too
will create be er communica on.
harsh on yourself.
When it comes to life, we need to take one
offering to do, bosses will most likely accept
Here's another quote on women: "A
step at a me. Look for where you can get
it. I was allowed to work part‐ me. I could
woman is like a tea bag. You never know
support from and keep trying. Women must
bring good ideas of value to the
how strong she is until she gets into hot
stop being apologe c for doing something
organiza on. I asked for support and it
water." The stronger the wind, the
good for them.
always came.
Kannan Gopalakrishnan ﴾Former MD,
My soul was not just about being a
Adidas Singapore﴿: You have been a
communica on specialist, but it was about
fantastic role model as a woman. You
“seeking growth”—growth for my clients,
stronger, the timber. So trust the universe and keep the faith!
BUSINESS MANDATE
fountainhead of excellence
If it is something that is likely to be of value to the organiza on and if it is something that nobody else in the organiza on is
39 JUN 2021
organiza on, team and family. I read a
Look at whom you follow and what you
brand, you can go ahead with it.
fantas c quote that a teacher is not known
share. Shape a personality in social media.
Kamala: Today, brands are struggling
by what he knows, but by what the student
Let it not be just about your work. Get your
to get attention because of the short
knows. Con nuous growth has been a
support group and be consistent.
attention span of consumers. Though
mantra for me.
Kannan Gopalakrishnan: It will be great
we have passion for using
As my hair became grey, I tried out
if we can find our passion. Typically, it
communication, we as marketers are
“prac cal wisdom”. It is very easy for
is not one thing that people are
struggling to communicate and so, what
marke ng people to drown in jargon and
passionate about. How do we handle
would be your advice to talk to
make things complicated. When I talked to
this?
consumers?
clients, I always tried to talk about things
It changes over the years as well. You may
In shaping the brand, the tone of voice and
that can be prac cally applied to their
have more than one passion and you can
consistency are important. The whole
brands and that will poten ally show
pursue them. I would advocate pushing for
experience needs to be built around the
growth. It worked and that was the trick.
one or two—one may be professional and
predominant brand promise. Ask ques ons
How can you as a woman develop a
the other may be, outside of professional.
like—Where is your showroom? How many
robust personal brand?
Is it advisable for brands to engage in
shops do you have? How do they look like?
It is about the principles which I put out:
viral marketing strategies?
How have you trained your sales people?
discover your skill and talent, find your
You can, but it depends on your category,
passion and develop it. It will be great if
the life stage of the category and brand and
money comes. Chase your work. Find your
what the brand already stands for.
balance. Find your tone of voice. Think
Remember a brand is like a ci zen and it is
about what you want to be known for
part of the society. But brands do have a
—even amongst your friends. Ask what you
limit on their spends. So ideally, societal
bring as a member of a family or team to
conversa ons should be within the brand’s
the table. Social media helps you in this.
world, and as long as it does not harm your
40
JUN 2021
BUSINESS MANDATE
fountainhead of excellence
For example, if you have a hospital, every doctor, nurse and watchman must understand what the hospital stands for and behave in a certain way. More and more service brands are now coming up. The employee as a brand and shaping the experiences are becoming an increasing aspect
of
brand
communica on.
building
than
41
JUN 2021
BUSINESS MANDATE
fountainhead of excellence
D
r Ganesh Natarajan: We
available and is being expanded into a
‘one belt, one road initiative’ that China
all know that by May 2020,
book by end of the year.
is pushing and the ramifications of
after Doklam and the
Chinese incursions in Ladakh, India’s strong military defence was followed by an economic response. Chinese apps were banned. There was an emotional
In essence, we realised that there were deeper questions to be answered: • •
boycott of Chinese goods. Six of us—Gautam Bambawale, Vijay Kelkar, Raghunath Mashelkar, Ajit Ranade, Ajay Shah and I—decided that India needed a more strategic longterm response and got together as a Pune
•
RCEP. There is a strong case for India to
What are the forces that shape
position itself as a democratic
Chinese behaviour?
alternative in a “less China” world. If
What is the best path for
India grows at 8% and China by 4 to
India, in the short and long
4.5%, in the next 20 years, India’s
term?
economy will be $40 Tn by 2041 against
Can we weave together a diplomatic, economic policy and industrial response that best
furthers
India's
interests?
China’s $53 Tn. If we extend this further, we can come to near par. That is the opportunity and challenge. Gautam Bambawale: We all were
International Centre Policy group. The
In several aspects, China is
questioning why China resorted to
result is the research paper titled,
significantly ahead of India. PostCovid,
military coercion in Eastern Ladakh. We
“Strategic Patience and Flexible Policies:
there is a worry about global supply
realised that there was one fundamental
How India Can Rise to the China
chain disruptions because of the heavy
condition due to which they were able
Challenge,” published by the Pune
concentration of key production in
to be aggressive: it is the huge
International Centre. The full paper is
China. There is also concern about the
asymmetry in economic, military,
42
JUN 2021
BUSINESS MANDATE
fountainhead of excellence
and
We do not advocate a complete
send more emergency supplies
comprehensive national power between
decoupling of the Indian economy with
like medicines and PPE. More
India and China. In 1980, China was a
the Chinese economy given the nature
cryogenic
$305 Bn economy and India, $189 Bn.
of
By 2019, China is $14 Tn and India, $3
connections
Tn.
economies. India can retreat—for the
scientific,
technological
What could India do to rise to the Chinese challenge? The immediate factor was to move our military might.
globalization
the
close
between
our
two
shortterm—from
any
•
•
balancing coalitions with some other
despite the events of Ladakh. It was ahead of UAE, USA, EU and ASEAN.
controlled
•
groups of countries with which India can have these coalitions:
18% of all imports of India,
a
even today come from China.
controlling stake in certain
One of our major imports is
key
crude oil and not a drop of it
Indian
to
obtain
infrastructure
comes from China. If you take
projects. •
In 2020, China was India's number one trading partner,
We should not permit Chinese companies
In the short term, India has to build
be
India.
economic
government
response.
may
coming in from China to
engagement with China.
We need to think of a longer term
countries in the world. There are three
and
tanks
We
must
avoid
away
Chinese
crude
oil,
China's
technological standards and
contribution of merchandise
work with global standards.
imports continues to be
Just two days ago, DoT
around 40 or 50%.
•
Major democracies of the world
(Department of Telecom) in
•
Countries which are on the
India has spoken about 5G
between India and China in
trials
Chinese
the last three years has been
companies like Huawei have
moving in a satisfactory
been kept out. We are
direction. India's exports to
Countries which are in India's
delighted that the government
China have been increasing to
neighbourhood like Bangladesh and Sri
of India is moving in this
an amount of $16 billion.
Lanka.
direction.
China's exports to India have
We must ensure that Chinese
been decreasing and are less
surveillance of Indian persons
than $50 billion now. The
is blocked and it does not
trade
happen.
narrowing. This is a threeyear
borders of China like Russia and Vietnam •
In all these, we have to go beyond
•
government to government interactions. There has to be interactions and
where
exchanges between institutions, people
Dr Ajit Ranade: I would like to place
and businessmen of the two countries.
certain facts to gain a right perspective:
India must undertake domestic
•
Just four days ago, we had an
•
The
trade
deficit
relationship
has
been
trend. China has a fantastic exportled growth story; it is an export juggernaut. India is also one of its destination
economic changes which will help in
emergency air lifting of 12
building deep partnerships with these
cryogenic tanks of liquid
countries. Back in 2001, India was its
oxygen from Tianjin in China
destination number 19, but in just 10 to
to Kolkata. They were taken to
12 years, India became its destination
Jamshedpur (280 kms) for
number five or six and it is rapidly
emergency
rising. So India's consumer market is of
countries. This is something which we have never done in the past. India’s diplomacy will need to rise to the challenge of China.
help
to
the
hospital. China is ready to BUSINESS MANDATE
fountainhead of excellence
great relevance to China. 43 JUN 2021
After what happened in Dokhlam and Ladakh last year, there’s been an
has changed. The responsibility lies with China.
So we have to go to less China and we cannot become China less. For this, we have to focus on a domestic agenda
irreversible change. The status quo has been changed by the Chinese side and
Less China, not China Less
of having high and sustained inclusive
not by India. There was a time when it
We have to acknowledge that China is
economic growth for a long period of
was possible to keep trade, commerce
far ahead in economic, scientific,
time. Our structural factors are still in
and investment relationships between
military and human quality of life
our favour. There is the spirit of
the two countries in a separate
indices. Its economy is five times bigger
entrepreneurship. The pandemic is just
compartment and geopolitical issues
than ours. Our import dependency is
an episodic setback. Unfortunately, we
and border disputes in a separate
substantial.
pharmaceutical
will have lost two years, but if we focus
compartment. The border issue is more
intermediates, which are required for
on the domestic agenda, we will be able
than 50 years old. There have been
India's success as a global exporter of
to narrow the gap.
eyeballtoeyeball confrontations but
generic drugs or bulk drugs, 69% come
never any killing and death of soldiers.
from China. We cannot meet our own
There were always ways to deescalate
domestic demand for penicillin. We
or diffuse the situation from the ground
have to import it from China. In
through phone calls between armed
automotive
forces commanders or governmentto
chemicals, our dependence is quite
government interactions, but something
high.
44
JUN 2021
In
parts
and
specialty
We have to improve the investment climate and our institutions of governance. Industries and investors want predictability, continuity, stability and the rule of law. There are areas where we can become more selfreliant. Atmanirbhar doesn't mean a closed
BUSINESS MANDATE
fountainhead of excellence
Let us recognize that China is not infallible. It has lot of vulnerabilities which are developing... ~Dr Ajit Ranade
economy. We also need Atmavishwas
China’s Vulnerabilities
state and the government has
—Selfconfidence.
China looms large in India's mind much
legitimacy not because of the
We have to raise the scale of
more than India looms large on China's
electoral process but because
domestic competitiveness to global scale
mind. China is worrying about the US.
and standards of quality. India has to
Our understanding of China is poor. Our
become a base for global manufacturing.
scholarship on China and Chinese
jobs
for
millions of people who went from rural areas to urban areas. That is not going to be
The world is looking at a China plus one
substantially
possible anymore, especially
strategy because of geopolitical issues.
upgraded. Let us recognize that China is
in times of exploding social
The Biden administration also looks like
not infallible. It has lot of vulnerabilities
media as we have seen with
it is going to continue with the same
which are developing and some of which
Hong Kong. They have been
stance that the Trump administration
are:
struggling to cap that, which is
had visavis China. We are in the
•
•
and start declining. That has
Incidentally, in the next few
implications for the macro economy.
months, India will be hosting the 13th •
It is a slowing down economy. They cannot sustain 6%
China and South Africa). The objective
growth and they have formally
of this summit is cooperation for
acknowledged this in their
and
14th fiveyear plan, which was
consensus. If the pandemic allows,
just unveiled. •
Jobs and economic growth are
attend and India may be hosting him.
no longer the source of
We still need to doggedly follow
legitimacy
patience as a strategy.
government. It is a one party
for
BUSINESS MANDATE
fountainhead of excellence
the
They have friction with almost every neighbour—Philippines, Japan, South Korea and
may soon reach zero growth
geopolitical realities and play along.
President of China, Xi Jinping might
completely led by the youth.
growing and its population
have to take cognizance of those
consolidation
It is an aging society. The labour force has stopped
middle of a new tech world war. We
continuity,
be
generated
history
BRICS summit. (Brazil, Russia, India,
should
they
India. •
And finally, we see a new phenomenon
where
the
government of China seems to be very uncomfortable with the private sector. They have abruptly pulled out of the IPO of Ant Financial, which is the part of the Alibaba group. It does not bode well for private sector investors in China. Ganesh Natarajan: In Industry, we need to look at three responses 45 JUN 2021
In terms of reducing dependence on China, the first sector that comes to mind is rare earth. ~Ganesh Natarajan
depending on the relative positioning of
possibilities being explored to keep
investments right in that area in the next
India and China in each segment. The
China out of 5G, India can become a
10 years, we could be $200 billion in the
first could be just reduced dependence,
significant player.
ICT layer too.
the
second
selfsufficiency
or
“atmanirbhar” and the third global
Core ICT, Agriculture, Chemicals and
competitiveness.
Pharma
In terms of reducing dependence on China, the first sector that comes to mind is rare earth. When US President Biden took over in the oval office, one of his first comments was that the US has to reduce rare earth dependence on China, for the simple reason that rare earths go into too many fundamental instruments. There is a huge deposit of
In India, there is a glimmer of good signs. The demand for connectivity is going to substantially increase. PM Modi in the Independence Day speech talked about the national optic fibre network (NOFN). The last mile connectivity has not happened. The last of our 640,000 villages must enjoy 100
rare earths in China which gives them a natural advantage. We have a more
electronics and for design elements in
positive
telecom.
Core ICT later. The IT services industry
Initially, there was monopoly of telecom
has reached $190 Bn from scratch over
in China but later they allowed multiple
a four decade period. In that process, we
companies to come in and proliferate.
have left behind the entire core ICT layer
They have really dominated the space.
—Information,
Moving from copper to optic fibre is an
telecom, and microprocessors. Today,
opportunity for us to leap frog. Reliance
there are 13 or 14 countries that are very
has shown that we can really build scale.
dominant in this space, including China,
With the rise of Reliance JIO and the
Taiwan and Thailand. If we do our
46
JUN 2021
in
and semiconductors are all possibilities. In the automotive sector, the big opportunity of the future is the autonomous, connected, electric (ACE) and shared vehicle mobility. The bigger constraints are in the charging ecosystem. Lithiumion battery is again a Chinese dominant area. We need to look at alternatives like hydrogen. In agriculture, we cannot be a rice
Mbps WiFi. This opens huge opportunity for
opportunity
Consumer electronics, hardware
communication,
BUSINESS MANDATE
fountainhead of excellence
and paddy economy forever because our godowns are overflowing and produce is getting wasted. We have opportunities in organic farming, grains, flowers and fruits. In chemicals, China's dominance is amazing. They have set up special economic zones and make it extremely easy for any large chemical production facility. The infrastructure, logistics and everything are in play for them, but chemicals are clearly an opportunity and a challenge for us. Finally, over the last
The next 25 years must form the golden age of foreign policy in India. A prosperous country requires resources and scientific and technological capability. ~Prof Ajay Shah
one year, we have demonstrated
Prof Ajay Shah: We should not think
need to form deep coalitions. We need
superiority over China in pharma. The
that the game is about mobilizing troops
to step away from nonalignment and
efficacy of Covaxin is much superior to
in Ladakh. This is just the beginning.
strategic autonomy. The next 25 years
Sinovac or other vaccines being made in
Why should we assume that the story
must form the golden age of foreign
China. But we need to do it at scale.
ends here? There could be more
policy in India. A prosperous country
territorial conflicts. What about the
requires resources and scientific and
Indian Ocean? How would the Chinese
technological capability. We need to
state be able to interact with our
become an advanced country and that
neighbours like Bangladesh and Sri
will require us going to our foundations.
Lanka and make them more hostile
Why did Indian private sector
towards us? We have to think
investments peak in 2011 and decline
strategically. Being more bellicose or
ever since? We have come out with three
trumpeting nationalism does not make
elements to explain this problem:
The government's response so far is encouraging. There has been a good set of announcements in what is called the Productivity Linked Incentive scheme. We are chasing champion companies both within India and abroad to come in and invest. Apple computer has been one of the first to say that they will come and do manufacturing in India. It is not about the most sophisticated technology or capital intensive units. Even if we can create assembly units all over the country, we create millions of jobs. Azim Premji University has just released a report which says that postCovid, 220 million Indians have gone into poverty. Clearly we need to create a lot of semiskilled or low skilled jobs and do it at scale all over the country.
the answer better. What we need is a
•
There is too much government
cold, rational, evidencebased strategy.
interference in the freedom of
We need to play on high amounts of
private people. Only the
force, space and time.
creativity private
We have had conflicts with Pakistan but the Indian GDP has always been five
and people
energy
of
makes
a
country great. •
We have got to push back
times bigger than Pakistan. So
against the administrative
fundamentally it's not difficult to deal
state,
with a smaller country. Confrontation
concentration of power with
with China, which is five times bigger
officials and the relative
and better than us at most things that
withering of the legislative and
we do, is difficult. The shortterm story is that we BUSINESS MANDATE
fountainhead of excellence
the
excessive
judicial branches. •
We have to bring back the rule of law. We have to fight for 47 JUN 2021
We have to reset India‐China ties. We cannot accept that military action will be kept separate from the economics of the relationship. ~Gautam Bambawale
policy and vision of the peace.
the first mover and they have violated
One of the reasons why China
many of the agreements which have
targets places like Myanmar,
been signed between India and China on
Venky Nagan (Group CEO, Asmara
Arunachal Pradesh and Nepal is also for the water. They are
maintaining peace and tranquillity in
International Ltd, Hong Kong): I would
equal treatment of every citizen.
•
Audience Responses
looking for water for the long
like to list out four points on the Chinese
term. We will have to be more
challenge: •
China used to believe that it’s
•
careful about these regions. •
I would strongly make a pitch
things: •
On the tactical side, they are
for adding garments made out
skirmishes here and there but
of manmade fibres as our
also continue business as
focus area because China has a
usual. They have done that
huge monopoly there. If we tie
with Taiwan, Vietnam, Japan
up with partners from Taiwan
and USA. The skirmish with
and Korea and set up that
India is not just a minor
ecosystem, it will take us five
irritation but it is going to be
to seven years and we can gain
much more serious and long
a lot of business. We can give a
term. Therefore, we have to
lot of jobs. Our clients are
prepare for this.
interested and looking at India
will be kept separate from the
Is the conflict irreversible? We
as a serious partner for
economics of the relationship. India will
interact with a lot of people
garment business.
continue to suffer a $50 billion trade
going to move their ground positions to what they think in their mind is their territory and their boundary. •
On the strategic side, they are indicating that we are a much smaller power than China.
We have to reset IndiaChina ties. We cannot accept that military action
Gautam Bambawale: What started
deficit with China. In the longer term,
off in May 2020 in eastern Ladakh is a
we have to correct our economy. We
different kettle of fish from the small
have to do it for our own sakes and to
have to continue to engage
scale incidents which happened earlier.
get off the tail of the Chinese dragon.
with people on the ground
At one point of time, there were close to
V Balaraman (Former MD, Pond’s In
through various channels. We
50,000 troops on either side. China was
dia): The Galwan clash has unified India
there are openminded and they are listening. They know what's happening. So we will
need to communicate our 48
Chinese are signalling to India two
acceptable to have some
and companies; the people
JUN 2021
the India China border areas.
BUSINESS MANDATE
fountainhead of excellence
as it was an external threat. I have heard
can launch a startup because a startup
climbed during the COVID. The COVID
from a number of sociologists that
is a very viable business opportunity
relief packages are costing the world a
whenever there is an external threat, the
unlike large companies that have to go
packet, but so it does to China. Their
nation unites. What India lacks is
through rigours of bureaucracy. The
debt stands at more than 350% of the
alertness. Even the second wave of
government is liberalising many things.
GDP.
Covid hit us because we were not alert.
Globally, credit has been eased. If we
One of the economists that we
I run a women's business forum for
motivate women to get into startups,
recently invited said that the Chinese are
MMA. Through this, I have been able to
that would be an opportunity for India’s
not 20 feet tall and that we Indians
unify a lot of people. There are 600
economic growth.
should not also think that we are four
million Indian women who have
Pankaj Madan (Deputy Head of KAS
feet short.
someone earning their daily bread. They
India): China’s debttoGDP ratio really
You talked about QUAD, BRICS and
them in our own ways. I don't think we
Jinping himself on poverty allevia on. They
India’s partnerships with the US and
have to keep talking about RCEP because
are not going to stay sta c. In fact, they are
Europe but what is India's own
that is already water under the bridge. India
undergoing a five‐way rebalancing of the
perspective on the ASEAN? Is there an
can build its own economic and poli cal
economy on the below lines:
innovative strategy to deal with
rela onships with ASEAN and we are doing
Myanmar?
that.
Gautam Bambawale: The Myanmar strategy
You mentioned that so far, growth and
is something that we put into effect about
jobs are the source of legitimacy of the
10 or 12 years ago, which is calling for the
regime. Now we see a slowdown in job,
return of democracy and rule of law, which
economic and income growth. So what
we are doing even now. We will also
will now be the new source of
con nue to work with whichever power is
legitimacy?
available in Yangon. India accepts ASEAN centrality. We will con nue to work with
•
To move away from export
oriented to domes c drivers as engine of
Ajit Ranade: There's a new paper out in
growth. •
To move away from investment to
consump on as the bigger component of economy. •
To move away from industry as a
dominant growth and employment engine towards services.
China, which is authored by President Xi BUSINESS MANDATE
fountainhead of excellence
49 JUN 2021
To move away from old economy
they moved to Shanghai, singing Chinese
deviated. We need to acknowledge that
“dirty” industries like metals, mining and
songs. One can easily learn a tonal language
something has changed. So we have to
chemicals to modern “clean” sectors such
like Mandarin by singing. That is the level
change the way we have been dealing with
as renewables, electric cars and other
of commitment they had to master the
them.
green industries.
language.
China is trying to dominate the Indian
•
What are the forces shaping Chinese
Ocean. They want to develop a small
behaviour? What is the best path for
island called Feydhoo Finolhu in the
industrializa on 4.0, ar ficial intelligence,
India in the short term and long term?
Maldives as a resort. Will they support
space,
What went wrong between Narendra
China as bases for future scenarios? On
semiconductors.
Modi and Xi Jinping relations?
improving our neighbourhood profile,
How much can we trust Russia as an ally
Gautam: This is not a ques on of
given that they are leaning towards
individuals but a ques on of two na on
China heavily in recent times? Should we
states, two sovereign states. This goes far
focus more on learning Chinese
beyond individual incidents or individual
language?
personali es. Please do read our paper, and
•
To shi from the present to the
future,
in
terms
advanced
of
emphasizing
so ware
and
the biggest constraint is the lack of deep pockets to lead alternate funding options to wean away smaller countries from the debt trap diplomacy of China. What are your views on these?
our book which should be coming out in a
Gautam: When India is a $2.9 trillion
few months from now.
economy and China a $14.5 trillion
where our interests intersect. Russia may
Two neighbouring civiliza ons each with a
economy, anything that Chinese do looms
be close to China today. Russia will not like
history of 5,000 years interact with each
large on our minds. We have been arguing
to be a junior partner in this. India needs to
other in the modern 21st century. It is the
that we need to take a much more macro
play the smart game in which we can try to
asymmetry between the na ons in terms
approach to reduce the asymmetry
use the fault lines between Russia and
of comprehensive power which is dicta ng
between India and China.
China. As Ronald Reagan said, “We need to
how China behaves with India. In order to
We should use some of our coali on
trust but verify,” rather than verify and
change that behaviour, we need to reduce
partners like Japan, for example, to help us
trust. I also agree that it is absolutely
that asymmetry.
in doing projects in our neighbouring
essen al for India to invest much more in
China seems to say that whatever is ours
countries. The Afro‐Asian growth corridor
studying the Chinese language and culture
is ours and whatever is yours is
is something in which India and Japan are
—to study the way how the Chinese mind
negotiable. Why do they do that?
working together in Africa. In the longer
Gautam: In interna onal poli cs and rela ons, it's not a ques on of trust but
works and thinks.
Ajit Ranade: I think you are alluding to what
Ganesh: We need to learn Mandarin
John F Kennedy said on nego a on. When
because if we cannot converse with our
Xi Jinping became President, in one of the
friends or enemies in their language, then
first interviews with the press delega on
we are missing something. I have two very
from India, he iden fied five principles,
close friends who live in Shanghai. They
which would form the basis for future
passed out of IIM‐Ahmedabad and IIM‐
China‐India rela onship, but almost on
Bangalore. Both of them spent a year a er
every one of those five principles, China has
50
JUN 2021
BUSINESS MANDATE
fountainhead of excellence
term, we need to push ourselves to expand the Indian economy. Has India prepared its labour forces to challenge the Chinese skilled labour force? Can India produce goods and commodities as cheap and durable as Chinese do?
Ajit Ranade: India's labour force is going to
increase roughly at 2% per year for the next
workers in the healthcare sector, more so
down its state dependency on China?
20 or 30 years. We'll be adding 200 million
in geriatric care. India can actually provide
Are we in a position to take any drastic
people in the next 20 years. China will be
skilled and semi‐skilled workforce in this
step towards severing our ties with
losing 50 million people in that period.
area.
China?
That's the big difference. We have to get
We have back offices for the world
Ajay Shah: Our prime objec ve should be
our act together in terms of our
because of English proficiency. Can we
to make India strong. That's not the same
compe
also become the back office for China?
as trying to hit back at China and by having
veness, global excellence and
costs. That is our domes c agenda.
Ganesh: That’s way too ambi ous. Many
We don't need to do it with reference to
Indian companies set up offices in China not
only China. We need to do it with reference
only to cater to Chinese customers but also
to global markets. Can we be the global
to Japanese customers. Don't forget that
manufacturing hub for a small car, electric
the Chinese ability to learn very fluently
car, specialty chemicals, tex les and
Japanese is probably be er than India. So
garments? Can we vastly increase our
I think there are areas where probably we
domes c
train
should not try to compete. That might end
paramedical staff because not just China
up in a lot of investment and no real
but even the Western countries and
returns.
tourism?
We
can
America will face a global shortage of
restric ons against Chinese ac vi es. What if hi ng back at China makes us weaker? We should be cold. We should think about what is in our interests. The most important of
India’s
interests
is
more
interna onaliza on. The more we integrate into the world economy, the be er it is for us and the stronger we become. China is an absolutely integral part of the world. We should not be retrea ng from deep
What should be India's move to cut
BUSINESS MANDATE
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engagement with the world.
51 JUN 2021
BUSINESS MANDATE
fountainhead of excellence
52 JUN 2021
A
rtificial Intelligence (AI) in
ago, the word ‘robotic’ entered our
even the minutest of facts, allergies,
our lives, particularly in
language when, at the National Theatre
food preferences, and even information
digital
and
in Prague, the Czech playwright Karl
about people who are affectionate to
communication, has a special role. In
Capex performed a beautiful play called
him. Artificial Intelligence does exactly
1997, Garry Kasparov played against
“Russoms’s Universal Robots.” It was
the same. It learns everything around it
Deep Blue, an AIbased computer
the first time that the word Robot was
and reacts to the environment. It is
program that studied all chess moves of
used (the Slavic root ‘Robot’ means ‘to
continuously learning; we are also
grand masters. Grand masters still find
work’), and since then robots entered
continuously learning. One assumes
it very difficult to play against AI chess
our daily life. They are everywhere now.
that human emotions like love, hate,
programs on a cell phone. Of course,
Artificial Intelligence is here to stay.
jealously will not enter into the
you can play a variety of AIbased games
They say that Artificial Intelligence
calculations of a machine… Or, will it?
on the net; for instance, Bridge, which
cannot include human emotion and
Another of Kazuo Ishiguro’s book,
demands intelligence in the best of us,
intuition, but this may not continue to
‘Klara and the Sun,’ is about a girl called
can be played on the net.
be true for long.
Josie, a thoroughly modern girl. Her
marketing
AI had taken roots many centuries
There is a beautiful book by Kazuo
ago. We heard about Artificial
Ishiguro, ‘The Remains of the Day,’
have
Intelligence in the early 15th Century.
which tells about the life of an English
manipulating the genes and coming up
The bronze robot called Talos of Crete
butler. He knows everything about the
with a model baby with extraordinary
is a possible reference. About 100 years
people who are coming to the house,
powers and talent. Josie feels very
BUSINESS MANDATE
fountainhead of excellence
parents—while having her—choose to an
extraordinary
baby,
53 JUN 2021
They say that Artificial Intelligence cannot include human emotion and intuition, but this may not continue to be true for long.
lonely, so her parents buy her a Robotic
For decades, we lived under the
direct marketing. You can go to the
friend: Klara. Both Josie and Klara have
rules of mass advertising and marketing.
heart of the person you want to
a very good and intimate friendship. As
We needed newspapers, whole pages of
convince. Every time Amazon contacts
they interact, Klara learns more each
them, to convince people. Now we need
me, it does so with detailed knowledge.
day. One day, Josie says to Klara: “You
two or three words to convey the
They know what books I like based on
are lucky that you do not have any
message through WhatsApp! Gandhiji
my preferences and searches. My sons,
emotions and feelings.” Klara responds:
could convey the whole message of
founders of a very interesting company
“As I learn and watch, I understand
patriotism and sacrifice with two or
called Bank Bazaar.com, use a lot of
more. As I get access to feelings and
three words. Think of the words and
information about their customers.
emotions, it is only a matter of time
slogans that Gandhiji used: Do or Die;
There is a lot of Artificial Intelligence
before emotions become part of me.” Be Indian, Buy Indian; Vande
involved in calling people—to be exact,
The days are not so far off for computers
Mataram; and Satyamave Jayathe.
calling people who need your product.
to
Even today when we hear these words,
If you have a housing product, you will
we wake up and say we have to do
not call a 15yearold kid; you will call a
something about this country… Do or
young man of around 32 years who
die! Stick it on your mirror for every
wants to buy or sell a house.
start
thinking,
feeling,
and
imagining. We know how the world’s first computer occupied whole buildings; now we have computers in the palm of our hand. Even at this size, it can do everything
that
a
regularsized
computer does. Size does not restrict its powers! Now we are becoming facile in the use of nanotechnology. Let me take you through a few fields in order to understand digital marketing and communication using artificial intelligence. 54
JUN 2021
goal you have. He galvanized the nation and organized the Dandi march with just wordofmouth communication. Imagine the power he would have had today with digital technology! Not surprisingly, he was voted the second most important man of the millennium. Digital marketing is the combined impact
of
As Vice President (Marketing), in Apollo hospitals, I have overseen a lot of activities taking place at a time when the concept of digital marketing was very new. But I am very envious of the fact that today we can have a hearttoheart talk with persons coming in for a check up. It is possible to treat every patient
minutetominute
with unique medicines with unique
interactions and communication. It is
methods of exercise and vitamins.
BUSINESS MANDATE
fountainhead of excellence
Health is a composite of physical,
from human resources. Every area gets
Because of digital marketing, today
mental and spiritual as well as
improved and constantly gets recreated
we have direct access into the homes,
environmental wellbeing; it is more
on the run. Adaptation is the most
hearts and minds of our customers. We
inward than outward. Each of us can
important thing today in this time of
are able to listen to what they have to
control our own physiology, our
extraordinary change ushered in by
say to us. We can recreate the products
emotions. If you know how to do that,
Covid19. So the product will become
we have. Instead of selling a lot of
we can create an Artificial Intelligence
finer and finer and more and more
worthless products, we can now have
‘product’ of ourselves.
suited, that it is like a voice speaking in
products that the customer really needs
price,
the customer’s head. That is what
at the mind level, soul level, and heart
place, and promotion in digital
Amazon is doing. Look at what they
level. So selling will become something
marketing is critical. If you take a
have achieved: 4 lakh jobs at a time
that is organic.
product, it will keep changing with
where people are being thrown out of
Artificial Intelligence: It will constantly
jobs. Artificial Intelligence can make our
completely revolutionized by Artificial
improve; it will react to information that
economy strong and powerful. The price
Intelligence and digital marketing. I
flows in from the market, from
of a product will go down once you
don’t have to go anywhere; I can sit at
production, from finance, and even
understand your customer perfectly and
the home and get anything, except
Understanding
product,
Consider
ANY
place:
it
is
you produce and sell the right quantity. BUSINESS MANDATE
fountainhead of excellence
55 JUN 2021
mother’s love. Digital marketing has
everyone to like it. But today, to each
companies. They can increase the price
erased distance. It has made your home
person, I talk in a different way. Just
to a great extent because people are
the center of everything.
like in our own mythology, God is in the
more worried about safety, more
It brings us back to Alvin Toffler,
form of a baby, if that is how you love
worried about excellence, more worried
who in the 1970s said that the Industrial
the best. If you love your mother best,
about doctors, more worried about
revolution dragged people from their
then God in the form of a baby. If you
consideration. I would like to think
homes to be sacrificed at the altar of
love your husband the best, then God is
through this whole thing where you
technology. Today, it has been reversed
in the form of Krishna and the Gopikas.
think of a machine that becomes your
by Covid19. We are now in what Toffler
If you love power, then you love Tirupati
friend. Our Whatsapp is almost a friend.
spoke about, ‘the electronic cottage’.
Balaji. Every person sees God in the
Every morning the first thing that you
The power shifts out of large factories
form of whom he could see, whom he
want to know is what all your loved ones
and huge sites of production to small,
could love on a very personal basis. This
have said. What are the great thoughts
beautifully designed comfortable homes
is what digital marketing is in the four
and ideas received through Whatsapp?
where we can work now.
areas of product, price, place, and
If it is used correctly, everything will be
promotion.
a great benefit. But if it is used wrongly,
Somebody said, “Oh, God! All your temples are closed, where is your
I would like to mention one thing
then anything can be bad.
when we talk about products. Just don’t
Use your computer to record
talk about the physical products, talk
everything about your family—about
about all the intangible services
their likes and dislikes, their health, and
attached to the physical product. I think
what suits them and what does not. You
it is best demonstrated in a service
can build up your own artificial Siri,
market like corporate hospitals. If you
your own assistant that will coach you
That is what our philosophy teaches
are having a bypass surgery, you can get
through this life, which I hope is a long
us. That God dwells in each of us, in
it free in a government hospital. You still
and beautiful one. You can build your
each of our homes. That he dwells in
will not take that free surgery, rather
model life using Artificial Intelligence at
every aspect of our life. Going
you would do it in a corporate hospital.
your own command. Google, led by our
somewhere far and praying to Him is
Why? Because of a concept called
own Sundar Pichai, announced that
not as great as offering Him everything
‘consideration’. You are willing to pay to
their Sycamore's Quantum System
that we do; because, it will be of the best
avoid the inconvenience and lack of
executed a calculation in 200 seconds,
quality. When you offer a flower from
safety in a government hospital. All the
a feat that would take a classic computer
your garden to God that will be the best;
different
10000 years to do. Computers are
when you offer work to God that will be
inconvenience increase consideration.
the best.
The price is very high, but consideration
Can AI improve our life? Yes. Can
Then we come back to ‘Promotion.’
is very low, then you go to a person who
AI destroy our life? Yes, it can. Whether
How do you promote? In the past,
is going to make sure you are going to
you want an angel or monster, it
promotion was with a broad brush: You
survive and you will not bother about
depends on how you use it.
say something, and you wanted
the price. So this has a great impact on
power?” God said, “All my temples are closed you say, but every house is now a temple. All the temples have come into homes.”
56
JUN 2021
things
that
BUSINESS MANDATE
cause
fountainhead of excellence
becoming smarter all the time.
BUSINESS MANDATE
fountainhead of excellence
57 JUN 2021
