tag:blogger.com,1999:blog-313026632024-03-21T12:23:59.817-07:00The MBA MindEducation is not about gathering information. It is about changing the way one thinks. I dedicate 'The MBA Mind' to all those educators who have moulded and given direction to my thought process all along and continue to do so.Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.comBlogger19125tag:blogger.com,1999:blog-31302663.post-62187731828318435212009-09-05T09:55:00.001-07:002009-09-05T09:55:02.756-07:00<img style="visibility:hidden;width:0px;height:0px;" border=0 width=0 height=0 src="http://counters.gigya.com/wildfire/IMP/CXNID=2000002.0NXC/bHQ9MTI1MjE2OTY2MDE5NSZwdD*xMjUyMTY5Njk2NTg2JnA9MjcwODEmZD13aWRnZXRQbGF5ZXJCbG9nJm49YmxvZ2dlciZnPTImbz*5MjkyOGVmMjkzODM*NGNjYmZhYjNjM2IyMmUwMjM5MiZvZj*w.gif" /> <embed type="application/x-shockwave-flash" src="http://cache.reverbnation.com/widgets/swf/28/blog_player.swf?emailPlaylist=artist_292319&backgroundcolor=EEEEEE&font_color=000000&posted_by=artist_292319&shuffle=&autoPlay=false" height="300" width="180"> </embed><br/><a href="http://www.reverbnation.com/c./a4/28/292319/Artist/0/User/link"><img alt="Agam" border="0" height="12" src="http://cache.reverbnation.com/widgets/content/28/footer.png" width="180" /></a><br/><img style="visibility:hidden;width:0px;height:0px;" border=0 width=0 height=0 src="http://www.reverbnation.com/widgets/trk/28/artist_292319/artist_292319/t.gif"/><a href="http://www.quantcast.com/p-05---xoNhTXVc" target="_blank"><img src="http://pixel.quantserve.com/pixel/p-05---xoNhTXVc.gif" style="display: none" border="0" height="1" width="1" alt="Quantcast"/></a>Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com5tag:blogger.com,1999:blog-31302663.post-24236174089053634252008-08-31T04:37:00.000-07:002008-09-06T23:19:04.197-07:00The Sales JobDuring a meeting I was asked an interesting question - 'What will you do if you are immediately posted in a completely new geography, in a domain that you did not understand and given a stiff target to achieve in a limited time period?'. The first thought that came to me mind was 'Why will you do that to me?'. Somehow, I blurted out an answer about reading industry magazines, becoming a part of an industry association, calling personal friends in the indutry and using sites like Linked In to make some initial contacts and taking it forward from there. I was not totally convinced; neither was the guy who asked me. He asked me to ponder a little more on the question and also asked me to talk to the Sales pros within the organisation.<br /><br />Although I did followup on his advice, I was <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqsqNzu0wGE5OKbPnNj9l1J9eeaEHxJSp4lO60ucFldbQaMROJzd2FFzlIoDP6abxlB9AtuD06EguX4GFQNEs_YCKC3Yr8P-nWknJM6j2oe2Q30FDT6ZzT8FEj1s2p01tqIqvaHA/s1600-h/mly0848l.jpg"><img id="BLOGGER_PHOTO_ID_5240666293954518274" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; WIDTH: 333px; CURSOR: hand; HEIGHT: 236px" height="209" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqsqNzu0wGE5OKbPnNj9l1J9eeaEHxJSp4lO60ucFldbQaMROJzd2FFzlIoDP6abxlB9AtuD06EguX4GFQNEs_YCKC3Yr8P-nWknJM6j2oe2Q30FDT6ZzT8FEj1s2p01tqIqvaHA/s320/mly0848l.jpg" width="321" border="0" /></a>more intrigued with my question. I have afterall been working in a particular domain for some time now and have a fair understanding of the internal capabilities as well as the market. Why will they want to put me elsewhere when there were opportunities in my domain?<br /><br />At about the same time I got a call from a close friend who has recently joined a financial products company in a sales capacity. He wanted to discuss his current challenges on prospecting and creating a mind share for his company and products in the market. As we discussed, it became clear that although both of us were working in entirely different businesses, the sales thought process was quite uniform. We had to perform a similar set of actions to achive our end goal of winning more customers and keeping them.<br /><br />We spoke about how to go about the different Sales phases like Generating Interest, Creating and developing Relationships, Showcasing the solution or product, Obtaining a commitment, Delivering well and Creating repeat business. As we kept discussing and exchanging ideas, it became clear that the sales process was universal.<br /><br />Although the MBA taught us this, most of us internally believed that domain knowledge preceded the Sales acumen or to put it another way, Sales acumen was necessary but not sufficient. Now I am all but convinced that a good sales guy with the right attitude and process can succeed whereever he is put, in whatever industry or geography. Do you think other wise?Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com2tag:blogger.com,1999:blog-31302663.post-44616594360239342992008-08-25T20:19:00.000-07:002008-09-06T23:38:27.698-07:00"The Square Root of Three"The following poem is a good example of creativity out of something as mundane as an irrational number. I am still not sure about the author, but based on the internet, he's an MIT math grad and currently a computer science teacher.<br /><br /><em>I fear that I will always be</em><br /><em>A lonely number like root three</em><br /><br /><em>The three is all that’s good and right,</em><br /><em>Why must my three keep out of sight</em><br /><em>Beneath a vicious square root sign,</em><br /><em>I wish instead I were a nine</em><br /><br /><em>For nine could thwart this evil trick,</em><br /><em>with just some quick arithmetic</em><br /><em></em><br /><em>I know I’ll never see the sun,</em><br /><em>As 1.7321</em><br /><em></em><br /><em>Such is my reality, a sad irrationality</em><br /><em>When hark! For what is this I see,</em><br /><em>Another square root of a three</em><br /><em></em><br /><em>As quietly come waltzing by,</em><br /><em>Together now we multiply</em><br /><em></em><br /><em>To form a number we prefer,</em><br /><em>Rejoicing as an integer</em><br /><em></em><br /><em>We break free from our mortal bonds</em><br /><em>And with a wave of magic wands</em><br /><em>Our square root signs become unglued</em><br /><em>Your love for me has been renewed<br /></em><br />- by David FeinbergRamachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com0tag:blogger.com,1999:blog-31302663.post-49610961238865607202008-08-13T03:43:00.000-07:002008-08-13T04:28:27.705-07:00Learnings from the PMO (Part II of II)<span style="font-family:georgia;"><u>80/20 Rules! (Pun intended)</u> </span><div><div><br /></div><div><span style="font-family:georgia;">80/20 is the single most important rule of the business world. Period. Here are some 80/20 rules that have worked for me –<br /></span><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfle8rSRdLzu7r8es0KgtmB3P7CFwh-0EA49g5V0I9SLioyQyzkRNAm8HA_SGiQqiAxohBH-tY1kQfYWn8peltepMu5Re1xovKmxipiGVGL6RQoQkdlAdWvd1TQ7tTyiLzq4081A/s1600-h/80-20.jpg"><span style="font-family:georgia;"><img id="BLOGGER_PHOTO_ID_5233952591549835922" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; WIDTH: 196px; CURSOR: hand; HEIGHT: 201px" height="282" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfle8rSRdLzu7r8es0KgtmB3P7CFwh-0EA49g5V0I9SLioyQyzkRNAm8HA_SGiQqiAxohBH-tY1kQfYWn8peltepMu5Re1xovKmxipiGVGL6RQoQkdlAdWvd1TQ7tTyiLzq4081A/s320/80-20.jpg" width="257" border="0" /></span></a><span style="font-family:georgia;">1. To structure and solve most business problems, 80/20 works best when used in tandem with </span><a href="http://en.wikipedia.org/wiki/MECE_principle"><span style="font-family:georgia;">Mckinsey’s MECE </span></a><span style="font-family:georgia;">approach<br />2. Don’t let your boss know this, but at any managerial level, 80% of your work can be delegated. Doing this helps you elevate yourself to take up 80% of your boss’s activities. He will be wondering where you get all the time from and done correctly, your reportee will also be thankful for the opportunity. Underline ‘Done Correctly’.<br />3. One of the most famous 80/20 rules is that 20% of your clients contribute to 80% of your revenues. Unfortunately due to the way businesses are structured, less than 20% of top management time goes into nurturing these businesses. They tend to spend maximum time on developing new clients. Although this is necessary for sustained growth, this will eventually backfire unless actively planned for.<br /><br />There are a hundred other examples out there; just put on your 80/20 hats and hunt for 80/20 opportunities in every business situation and you will come up with interesting insights. In the business world, surely 80/20 rulez!<br /><br /><u>Third Time Lucky</u></span></div><div><br /></div><div><span style="font-family:georgia;">Developing and implementing new work processes and improving existing ones is an important PMO activity. </span><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmwpTdlIXTMTuoISMxATrn9aqCUkmxq9_CswTCZHZsEc743S__bnVkOjr48XrDesd-Y_2KQ3hwYJGR-eNXV6v2aWrLoNX5wJDm4TAq9xxQNz8KQCBJbLpNNHmBvPiIJYGVBy6wng/s1600-h/lucky.jpg"><span style="font-family:georgia;"><img id="BLOGGER_PHOTO_ID_5233953982922633442" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; WIDTH: 200px; CURSOR: hand; HEIGHT: 119px" height="231" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmwpTdlIXTMTuoISMxATrn9aqCUkmxq9_CswTCZHZsEc743S__bnVkOjr48XrDesd-Y_2KQ3hwYJGR-eNXV6v2aWrLoNX5wJDm4TAq9xxQNz8KQCBJbLpNNHmBvPiIJYGVBy6wng/s320/lucky.jpg" width="303" border="0" /></span></a><span style="font-family:georgia;">What I did learn is that while implementing change, the first time you communicate the process, there is luke warm response probably because people feel it is not serious. The second time you communicate, there are usually more questions and concerns raised about the new process and people let you know what all can go wrong. But, usually the third time around there is more compliance and from the fourth iteration the process becomes the norm. So if you are establishing processes, be patient.<br /><br /><u>People vs Resources (Employee view vs Management view)</u></span></div><div><br /></div><div><span style="font-family:georgia;"></span></div><div><span style="font-family:georgia;">Many people argue that organizations should not view employees as mere resources; they must view them as individuals and manage them accordingly. </span><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjhKdDFjKFQZeWls-IvOaR_Rl5CxXCJ7fT2u7y-xSDjPbsS-DSm9F7jmPjlgCYIe98rdQl5LA6a_ad4GigDqpBGUiuRpdkPpFBhqF-DFuK1UXH7H87TbRN0gaP-iQwLEfcFqGS37A/s1600-h/people.jpg"><span style="font-family:georgia;"><img id="BLOGGER_PHOTO_ID_5233956607590413810" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; WIDTH: 222px; CURSOR: hand; HEIGHT: 216px" height="357" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjhKdDFjKFQZeWls-IvOaR_Rl5CxXCJ7fT2u7y-xSDjPbsS-DSm9F7jmPjlgCYIe98rdQl5LA6a_ad4GigDqpBGUiuRpdkPpFBhqF-DFuK1UXH7H87TbRN0gaP-iQwLEfcFqGS37A/s320/people.jpg" width="258" border="0" /></span></a><span style="font-family:georgia;">I was one of the proponents of this theory; that is until I took up my current job. I understood that the resource view or the helicopter view is very good for analysis, work distribution, resource management and in general running the business. But equally important is the people (individual) view when it comes to talent recognition, reward mechanisms, appraisal etc. The idea and challenge for the management is to understand and maintain the People view at the employee level, make them feel valued and personal while at the same time maintain a resource view for business needs. This dichotomy is because in the 21st Century company, people are the resources albeit special resources. They have the physical attributes of any other type of economic resource but also an emotional aspect of being human. So go ahead ye managers, take those economic/ business decisions, be objective but also develop empathy, respect for people and connect.<br /><br /><u>Communicate, Communicate, Communicate </u></span></div><div><span style="font-family:georgia;"><u></u><br />Well, the title says it all. These days we have so many tools for communication at our disposal - the email, the SMS, the cell-phone and what not, yet there is so little of communication. </span><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVomwmgrBuUp8ZQXzdOq36XMSOW5ACvycDwEUCYhsvH6MF15Y4jR4oCQr2YHqvMIsd55NLseRWpYP6uSkgPp2feYEPlcP2EPq5ewBEbjdbjytGCDtM40GFiz48vCAM6onhSx1RDA/s1600-h/Encoding_communication.jpg"><span style="font-family:georgia;"><img id="BLOGGER_PHOTO_ID_5233958941505192562" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; WIDTH: 250px; CURSOR: hand; HEIGHT: 235px" height="254" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVomwmgrBuUp8ZQXzdOq36XMSOW5ACvycDwEUCYhsvH6MF15Y4jR4oCQr2YHqvMIsd55NLseRWpYP6uSkgPp2feYEPlcP2EPq5ewBEbjdbjytGCDtM40GFiz48vCAM6onhSx1RDA/s320/Encoding_communication.jpg" width="258" border="0" /></span></a><span style="font-family:georgia;">Yes, we do talk a lot, email and message a lot but are we able to pass on an idea in our head with the same intensity and precision to another head? Lack of proper communication according to me is the root cause of all problems political and other wise in today’s organizations. So do I have the answer, well for starters -<br />Speak it out - Bring your thoughts in the open and do not be afraid of being ridiculed. But, try to remain neutral and objective. Use the logic of </span><a href="http://en.wikipedia.org/wiki/Elevator_pitch"><span style="font-family:georgia;">elevator pitches </span></a><span style="font-family:georgia;">during all business conversations.<br />Write better – Pithy emails are good as long as they communicate properly. Many a time most of the information we want to communicate is left in our head.<br /><br />Communication – This is the cardinal word for success in the corporate world!</span></div></div>Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com2tag:blogger.com,1999:blog-31302663.post-53831481125955167342008-08-07T06:01:00.000-07:002008-08-07T06:31:59.499-07:00Learnings from the PMO (Part I of II)<p><span style="font-family:georgia;">It’s been one year after the MBA and one year of managing a PMO. For the uninitiated, the PMO or the Program Management Office is the nodal agency in a business unit that enables the unit to function as a single business with a common vision and direction. Ok, I came up with that on the fly and much better definitions are available on the web. But as you read more about PMO implementations it becomes clear that every single PMO implementation is different and adjusted to suit the need of that business.<br /><br />The aim of this post is albeit not to discuss about PMO implementations but to give a glimpse of what I have learned in this business function in the last one year. So here are my <strong>Top 5</strong> business lessons learnt -<br /><br />1. Out of sight, Out of mind<br />2. Know where vs Nowhere<br />3. 80/20 Rules! (Pun intended)<br />4. Third time lucky<br />5. People vs Resources (Employee view vs Management view)<br />0. Communicate, Communicate, Communicate</span></p><p><u><span style="font-family:georgia;">Out of sight, Out of mind</span></u></p><span style="font-family:georgia;">Work that gets done by managers can be usually classified into three buckets; transactional, tactical and strategic based on the impact of these actions. The </span><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_k4fbdW-V_eJQsWIBMeEtW6l7Ng1ljC9FLykXK3M26lE2MwOR7_HeVOeaJ8WQkeSaM10kaLkrg-18Vs6rUSCZj6zNOPLWD9wavCZHBMxLl9VR2QxjPiMMOO_xw-PotVzRdix2kw/s1600-h/l337-eye-chart.jpg"><span style="font-family:georgia;"><img id="BLOGGER_PHOTO_ID_5231764536752642370" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; CURSOR: hand" height="215" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_k4fbdW-V_eJQsWIBMeEtW6l7Ng1ljC9FLykXK3M26lE2MwOR7_HeVOeaJ8WQkeSaM10kaLkrg-18Vs6rUSCZj6zNOPLWD9wavCZHBMxLl9VR2QxjPiMMOO_xw-PotVzRdix2kw/s320/l337-eye-chart.jpg" width="179" border="0" /></span></a><span style="font-family:georgia;">transactional are the daily activities, the hygiene factors. It is quite noticeable if you are not acting on them. Tactical or actions with medium term impact take up the remaining time. Strategic issues take up the least share of their time. Unfortunately these activities are the ones that will bring in maximum impact in the longer term. This again is one of the top reasons for organizations to act late or worse not act on disruptive ideas. Thus there is a compelling reason for organizations to keep regular track items of strategic importance and actively manage their future at every level. Because out of sight is out of mind!<br /><br /></span><p><span style="font-family:georgia;"><u>Know where vs Nowhere</u> </span></p><p><span style="font-family:georgia;">Achievement is a comparison of where you are to where you wanted to be. So in order to say that you have achieved something, usually you <img id="BLOGGER_PHOTO_ID_5231765584783671618" style="FLOAT: left; MARGIN: 0px 10px 10px 0px; WIDTH: 178px; CURSOR: hand; HEIGHT: 195px" height="197" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhEKblVjhJpo0dETb6xg-74sgWS2DQj05AnDvrPdgd0wHcf5N1IM9pja40u4GgpjE9HUH3OKANdzmfz-HLfTe3uVF0TfW8ppPmDOiZXkFGiBG_gr7_oFRnkwPcLLqrswdOCbJXheg/s320/BullsEye.jpg" width="195" border="0" />measure against preset goals. In business as in life having preset goals helps especially if they look seemingly impossible today. Goals give motivation and a sense of purpose. Setting goals right though is an art as it has to seem difficult to reach but also seem to be in the realm of the possible. This is where the rules of the experienced thumbs play their part. The best managers/ leaders are those who have mastered this art and are able to carry their flock towards their audacious looking goals. So set your goals right and set sail and you may well reach the moon and beyond! Bon voyage.</span></p><p><span style="font-family:georgia;">To be continued...</span></p>Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com0tag:blogger.com,1999:blog-31302663.post-86866163341979099732008-07-19T22:33:00.000-07:002008-07-19T22:37:27.621-07:00I'm gonna light up the brightest light!Its been more than a year since I last blogged. But you know what I'm back! Let me start with a song that has intiated my personal reform -<br /><br />I know it's easier to give up your dreams <br />And to be yourself is harder than it seems <br />How can I change the world if I can't change myself? <br />I guess the only thing I can do is take the first step <br />Out of the dark, I'll find my way <br />I'm gonna light up the brightest light <br />Out of the dark, I'll find my way <br />I'm gonna light up the brightest light <br />I know the world is cruel to the dreamer's heart <br />And to find yourself alone is the hardest part <br />How can I save the world if I can't save myself? <br />I guess my own two hands <br />Are the only thing I can count on now <br />Out of the dark, I'll find my way <br />I'm gonna light up the brightest light <br />Out of the dark, I'll find my way <br />I'm gonna light up the brightest light <br />Out of the dark, I'll find my way <br />I'm gonna light up the brightest lightRamachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com6tag:blogger.com,1999:blog-31302663.post-7104687536308731962007-04-18T03:52:00.000-07:002007-04-18T04:09:05.882-07:00What Drives Business?I was asked to write an article for our college magazine on the topic - 'What drives business?' and here's what I came up with.<br /><br />This is a draft version. The complete version is in the magazine which comes out next month.<br />*******************************************<br /><br />(<em>The following is a small fictional story that takes place in a company called Widgets India Pvt. Ltd. This story tries to look at what drives a business through the eyes of practitioners</em>.)<br /><br /><strong>The Introduction</strong><br /><br /><span style="color:#cc0000;">Guru V Gurumoorthy<br />CMD and Director – R&D</span><br /><br />‘Baloney’ was the word that came to my mind as I was discussing with Siva yesterday about the possibility of right sizing the company. Both of us knew that the decisions we took would affect the lives of so many families who have given so much for the success of this company.<br /><br />I still distinctly remember the day I stepped back on Indian soil fifteen years ago after completing my PhD from the USA. Starting a company in India back then seemed a crazy idea. “Wishful thinking”, said everyone around me. But to me it was all very clear. I would have the power to give jobs to so many people if I came back, the same jobs I am supposed to take away now!<br /><br /><span style="color:#cc0000;">G. Sivaramakrishnan<br />Director – HR<br /></span><br />I have not seen Guru in such a mood ever before. I have known him from the time we were kids, after all our dads worked together and we went to the same school. He has always been fresh and full of energy. To me he is still the kid I knew. Yesterday was different; he looked tired and sapped.<br /><br />Guru started this company from scratch. With his patent for a new process of making widgets, he could have done this right in the US but he chose to come back. Money was never a problem for us from the start, getting people was. We had to make people leave their <em>secure </em>government jobs and join a young startup. Looking back, I would say they had made the right decision. But I guess the good times don’t last forever. Guru has not told me his decision yet, but I expect some big announcements today at the meeting.<br /><br /><span style="color:#cc0000;">Gaurav Shah<br />Vice-President – Marketing and Sales</span><br /><br />I don’t know why we have this sudden meeting today. This better be good ‘coz I had to cancel a customer meeting for this. Gurubhai has been acting funny this week. I love this company and though we are going through tough times, I strongly believe that we will turn it around.<br /><br />I still remember the speech Gurubhai gave at our college ten years ago. ‘The true leader is not the one who gets more accolades, but the one who wins more hearts’, he said. This simple truth has helped me close many a deal in my career. As a fresh MBA then, I clearly knew joining this company was my destiny. The more experienced among us told me that I would be spoiling my career and that a company making widgets would never succeed in India. They advised me to take up a job in FMCG or one in a big government company. I decided otherwise. I have never regretted my decision.<br /><br /><span style="color:#cc0000;">T. Shyamsunder<br />Vice-President – Accounting and Strategic Finance<br /></span><br />‘Tough decisions have to be made in successful companies’, I tell Mr. Gurumurthy every time I meet him. He is a good man, but then we are running a business here.<br /><br />I joined this company six months ago. I am supposed to be their turnaround man. I have studied the entire cost structure and pricing ability of the company’s products and submitted a report to Mr. Guru a week back. We desperately need to drastically cut costs if we ever hope to be competitive. I hope some useful decisions are made in today’s meeting.<br /><br /><span style="color:#cc0000;">Ragahvendhar Rao<br />President – Operations</span><br /><br />I am hearing a lot about job cuts and this is really demoralizing the workforce. I hope we don’t take such drastic measures. Guru and his R&D team are almost ready with widgetX. Guru tells me how we will take off once the product hits the market. It’s just a matter of time, a year or two utmost.<br /><br />I have been with Guru from the start. Siva, for lack of a better word, had poached me from a big government organization with a promise of more challenging work. And boy has he kept up with his promise! We have seen trailblazing growth in the past and I hope today’s meeting will set the direction to get us back on that track.<br /><br /><strong>The Meeting</strong><br /><br /><span style="color:#cc0000;">Gurumoorthy:</span> “Good Morning Gentlemen. For the past few weeks, I have been having frequent discussions with most of you regarding the current situation of the company. Most of you have been, in this time, compiling data and taking an objective look at our sales, operations and financial performance. When I take a combined look at all the data I don’t see a pretty picture.<br /><br />We started the manufacture of widgets in India and we are probably the most innovative company here currently, but as you see we are neither the top company financially or in the marketplace. I know that some of the major reasons for this have been the entry of multinationals and big Indian conglomerates into this business. This meeting though is not to discuss about them. Neither is this meeting for discussing the causes of our plight.<br /><br />I have called you gentlemen, to discuss something more fundamental. I want you to do some soul searching and tell me <em>what according to you really drives our business and taking it forward, will drive our business in the future</em>?”<br /><br />I did not want them to start a blame game by asking them as to what went wrong. Instead I wanted them to ask themselves what it is that when done right can right the wrong.<br /><br /><span style="color:#cc0000;">Ragahvendhar Rao:</span> “With all due respects sir, <em>what makes an airplane work – the engine or the wings</em>?”<br /><br /><span style="color:#cc0000;">Gurumoorthy:</span> “Point well taken Mr.Rao, but all I wanted was for everyone in this forum to come to the same level of understanding regarding all the activities in this company before we decide on a course for the future. I wanted everyone to appreciate the purpose and direction of departments other than theirs”<br /><br /><span style="color:#cc0000;">Gaurav Shah:</span> “I believe a strong marketing strategy built around the needs of our customers is what has driven our business till now. All our competitors though have really caught up with us on that. But where we really stand tall is the customer’s knowledge about us. <em>They know our customers but our customers know us</em>!<br /><br />We are one of the most well known and trusted companies in the market and our competitors are constantly being benchmarked against us. All we now need to do is to build a strategy to leverage this mind share to get the market share. I suggest we do a comprehensive and integrated marketing campaign that tells the market why we are different. We can introduce a slew of schemes, promotions, warranties and tie-ups backed by targeted advertising. This strategy is what I believe will propel us forward till we take off with the introduction of widgetX.<br /><br />Gentlemen, we do not have the lowest price in the market. So, let’s be different.”<br /><br /><span style="color:#cc0000;">T. Shyamsunder:</span> “Using our brand image to increase sales is fine but our current cost structure does not allow us to compete in the market. A detailed costing analysis has revealed that our variable costs are more than the price we command leading to negative contributions. We are bleeding gentlemen. Gaurav spoke about growth. I am here to talk about survival. And <em>sound and prudent financial management is what will help us survive </em>and drive us through these tough times.<br /><br />Our competitors are driving our pricing decisions, but what they cannot decide is our costs. That is the variable we have in our hand. I strongly suggest we start a program to drastically cut costs. Our current employee utilization rates are an abysmal sixty percent. We should immediately lay-off some employees to bring the numbers close to ninety-ninety five percent. This single move will reduce our costs by five percent.<br /><br />I know this is a tough call, but right now we need to survive and <em>our survival depends on cutting costs.</em>”<br /><br /><span style="color:#cc0000;">Ragahvendhar Rao:</span> “Downsizing is always the trump card we management have, to pull ourselves out of tough spots. But, by doing so we are just pushing the real issues under the carpet. We also have to see the long term effects of such a decision and the morale of the surviving employees. Moreover these are real people that we are dealing with and not just numbers.<br /><br />In the past our production has invariably been able to meet the demands of the market on time. Our quality and reliability have really been the driving force in establishing our brand in the market. If we are able to increase our sales by measures suggested by Gaurav, we will be able to match that demand by moving to three shifts from the current two shifts increasing machine and manpower utilization rates.<br /><br />Moreover through a process improvement program, we can improve the flexibility of our production. With that we will be able to churn out smaller batches of customized widgets exactly matching customer requirements giving us a better pricing ability compared to our competitors. All these improvements will augur well for the eventual launch of widgetX as well.<br /><br />Friends, <em>we can improve on the cost front without going in for lay-offs</em>.”<br /><br /><span style="color:#cc0000;">Gaurav Shah:</span> “Good suggestion Mr.Rao. I can include a ‘Widgets to order’ program as part of my campaign.”<br /><br /><span style="color:#cc0000;">G. Sivaramakrishnan:</span> “Three shifts is a very good idea. This gives a strong signal to the workforce that the management is not going for a lay-off strategy. This will improve our attrition numbers.<br /><br />Moreover our employees are our wealth. The experience that our employees have in the widget industry is way ahead of other competitors. It’s <em>our people who have driven our business</em> to the success and stature we enjoy today. We simply cannot afford to lose them to our competition. We will then be handing over our competitive advantage to them in a platter.”<br /><br /><span style="color:#cc0000;">Gurumoorthy:</span> “Well said Siva. It’s definitely our people who have taken us to success and it is by them we will stand in times of distress. I am sure together we will be able to turn around the company.<br /><br />I thank you all for taking time to answer my question. You have all answered in earnest and I now clearly see what really drives our business. No, all businesses in general. It is passion gentlemen. <em>Passionate people like you make business successful. With each one as passionate as you are about your domain, when put together form a force potent enough to take on any obstacle we might face. It is not the engine or the wings that make an airplane work, but man’s passion to fly!<br /></em><br />It is this passion that made me start this company. It is this passion that will take this company to greater heights.<br /><br /><em>Gentlemen, I present to you widgetX</em>.”Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com3tag:blogger.com,1999:blog-31302663.post-56015561080680440732007-03-16T21:23:00.000-07:002007-03-16T21:49:01.778-07:00Mission Accomplished!Warning: This post is unlike any other post in this blog and it does not make sense.So plz. don't read it!<br /><br />'Mission accomplished' was the first thought that crossed my mind when I got that job offer from my <a href="http://www.csc.com">new employer</a>. The very next thought incidentally was 'What next?'. Strange isn't it? A year ago, the situation that I was in, I would have given my right arm for this job - Chennai base location, onsite opportunities, Aerospace domain, a decent salary and a good brand to add to the resume!<br /><br />A year ago I would not have asked for more. But today, it feels different. There was no joy after the placement was over. No elation. I even waited a week for that feeling to come. It did not. I have always been proud of the fact that I had limited wants. That I have always been happy over the smallest successes that I have had. That I could easily give what I had to those who wanted without flinching. That a Rs.30 book bought near Moore market gave me more happiness than a Mercedes Benz.That the only things that I ever wanted were a bike, a computer and an unlimited internet connection. Nothing more.<br /><br />The MBA course or something else has numbed me. Nowadays, I neither feel sad nor happy. I just feel uncomfortable, irritated and out of place. There's something missing, I dunno what. I watch movies to escape this feeling. I have seen close to a 100 movies after our placement. Thats like 3 movies everyday!<br /><br />No motivation to attend classes.No motivation to do something useful. Nothing. I am just hanging out everyday with a bunch of oddballs(just like me) and doing nothing. Somebody(God) save me!<br /><br />I never wanted anything personal to hit this blog, but then I was irritated that I am not updating this thing like forever now. No new ideas u c. Hence this post.Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com4tag:blogger.com,1999:blog-31302663.post-46437159803819138532007-01-26T08:38:00.000-08:002007-01-26T08:41:27.366-08:00IFMy dad introduced me to this poem just before I left for <a href="http://www.bits-pilani.ac.in">BITS</a>...Gives me inspiration whenever I need! With placement season around the corner, I once again go back to this ocean of inspiration!<br /><br /> 'if' by rudyard kipling<br /><br />If you can keep your head when all about you<br />Are losing theirs and blaming it on you,<br />If you can trust yourself when all men doubt you,<br />But make allowance for their doubting too;<br />If you can wait and not be tired by waiting,<br />Or being lied about, don't deal in lies,<br />Or being hated, don't give way to hating,<br />And yet don't look too good, nor talk too wise:<br /><br />If you can dream - and not make dreams your master,<br />If you can think - and not make thoughts your aim;<br />If you can meet with Triumph and Disaster<br />And treat those two impostors just the same;<br />If you can bear to hear the truth you've spoken<br />Twisted by knaves to make a trap for fools,<br />Or watch the things you gave your life to, broken,<br />And stoop and build 'em up with worn-out tools:<br /><br />If you can make one heap of all your winnings<br />And risk it all on one turn of pitch-and-toss,<br />And lose, and start again at your beginnings<br />And never breath a word about your loss;<br />If you can force your heart and nerve and sinew<br />To serve your turn long after they are gone,<br />And so hold on when there is nothing in you<br />Except the Will which says to them: "Hold on!"<br /><br />If you can talk with crowds and keep your virtue,<br />Or walk with kings - nor lose the common touch,<br />If neither foes nor loving friends can hurt you,<br />If all men count with you, but none too much;<br />If you can fill the unforgiving minute<br />With sixty seconds' worth of distance run,<br />Yours is the Earth and everything that's in it,<br />And - which is more - you'll be a Man, my son!<br /><br />Rudyard KiplingRamachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com3tag:blogger.com,1999:blog-31302663.post-53953114331892107722007-01-19T07:06:00.000-08:002007-01-19T07:07:05.690-08:00Marketing India!Marketing India!<br /><br />“The fastest growing free market democracy in the world!” screamed a billboard at the World Economic Forum in Davos. This might well have been the first tiny step for India’s marketing campaign to woo foreign investment, but to a nation that was for a long time inward focused, it is a giant leap.<br /><br />The question is why India should market itself at all. After all, the Indian culture has always preferred the path of the understated and unspoken with branding and marketing being considered hubris. The answer is that as a nation we are at the cusp of events and our decisions now will determine our future. From being a nation filled with social strife and economic disparity to one of economic superpowerdom, we can be anywhere in between. <br /><br />But then again, does marketing fit into the scheme of things? Yes, because we are in an era defined by globalization, technology and communication, reduction in traditional boundaries, and stronger focus on international relationships and strategic alliances. And in this era, every nation has a position in the global pecking order and every nation must sell itself before selling its products.<br /><br />This marketing of the nation as a brand leads to what Joseph Nye, a former U.S. assistant secretary of defense and Harvard University professor of international relations, calls ``soft power,'' which he defines as ``the ability to get what you want through attraction rather than through coercion.'' “Coercion”, he says, “needs the stick of military power or the carrot of money. A country's soft power, by contrast, rests upon the attractiveness of its culture, the appeal of its domestic political and social values, and the style and substance of its foreign policies''<br /><br />When talking about the Indian culture, words like spirituality, yoga and alternate medicine immediately strike a chord in the western mind and these are considered chic. With the largest functioning democracy, independent judiciary and free press, the Indian political and social values are definitely aligned with the west. And foreign policies, after the opening up of the economy in 1991 have been forward looking. These are just indicators of the soft power that India can wield on the world and pull the world’s attention onto itself if marketed effectively.<br /><br />But then, acquiring soft power is just one side of the marketing coin. This side addresses the problem of changing the world’s perception of India. The other side of the marketing coin deals with creating, communicating and delivering actual value for businesses and individuals wanting to associate with India. Unlike soft power, this ‘value’ is not universal to all. Hence the need for creating as many value centers as possible each with its own unique value proposition (UVP). Some of the value centers that have come up inadvertently in India are Diamond state- Gujarat, IT city- Bangalore and Textile town- Tirupur. Eventually these value centers become brands unto themselves and they will be the windows through which their customers look at India.<br /><br />The companies in these value centers will individually have to become world class in order to compete with similar companies having similar workforce trying to woo the same global customer. To achieve that they carve niches and create UVPs within their operating space and become world renowned brands like Infosys and Wipro have in the field of IT. The leaders of these companies then become brand ambassadors for the country.<br /><br />These companies competing as they are with each other and the rest of the world will require every employee to be accountable and deliver value to the company and eventually to its customer. In a way every employee has to market himself and his work to survive and succeed.<br /><br />Thus every employee, by doing his work in a way that adds most value to the customer is marketing himself, the company, the value center and the nation! As every citizen realizes this, we begin to decide our own future and the future of the nation. And what an exciting future it promises to be…Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com1tag:blogger.com,1999:blog-31302663.post-80307205733389699512007-01-19T07:04:00.000-08:002007-01-19T07:06:30.331-08:00Fortune in an electric train!Fortune in an Electric Train:<br /><br />“If we stop thinking of the poor as victims or as a burden and start recognizing them as resilient and creative entrepreneurs and value conscious consumers, a whole new world of opportunity will open up” – C.K.Prahalad, The Fortune At the Bottom of the Pyramid.<br /><br />It was a sunny Friday afternoon as I boarded my train to Tiruvallur from the bustling Moore market complex in Chennai Central. The train was full and I considered myself lucky to find a seat albeit close to the aisle. I usually prefer the window seat because I like to gaze at the country side and the breeze sets a somnolent ambience. But this was a different day and a different experience.<br /><br />Seated along with me was a cross section of what I would call India’s semi-urban population. There was an electrician, two nuns, an old couple, a couple of political enthusiasts, a group of factory workers and a bunch of school kids. I call them semi-urban because they work, pray, shop, study and conduct most of their activities in the city while living in the towns and villages surrounding it. With nothing else to do, I began to eavesdrop inadvertently. The conversations’ though banal had a surprisingly common thread running through. All of them and I repeat all of them were bullish about their careers, companies and India in general. These are the kind of conversations that would make any marketer worth his salt salivate.<br /><br />My train came to a halt as it approached a station and so did my train of thoughts at the sight of the grime and commotion outside. The hawkers and beggars were having a field day with the huge crowds that thronged the station. I began to wonder as to just how we as a country could be so bullish about ourselves while lagging behind the developed countries by such a wide margin. Hope and opportunity were the two words that immediately came to my mind.<br /><br />As the train started moving away; I saw a hawker who was carrying his wares, jump into the train. Through the crowd, I could see that he had made it safely. He went about his business straight away- hawking samosas. He was selling them at Rs.2 a piece. I did not buy them being concerned about hygiene, but everyone around me was interested. I could see from their expressions that the samosas were hot and tasty but I was more interested in something else. How could he deliver the samosas right where his customers wanted them at this price? Then out of nowhere came a guy supplying chilled water packets at Rs.1 each. As is anyone’s guess, these were lapped up immediately. I am tempted to add that it was a very good example of ‘complementary businesses in collusion’.<br /><br />The conversations around me had by now reached a feverish pitch and I became interested in a debate that was ensuing between the two political activists. They were discussing the political implications of the regional government’s decision to give away a free color television to everyone. Here we were, I thought, trying to put up a brave capitalist face on the one hand and touching new heights in socialistic ideas on the other. But then these extremities are what make our nation so fascinating. The hawkers with their wares kept coming. There was a biscuit vendor selling freshly baked butter biscuits at Rs.1 each, a hawker selling roasted peanuts, a little girl selling a variety of trinkets, an old woman came to sell unripe guavas and even the original samosa vendor came back to sell the crumbs and leftovers that he had at a differential price. Like clock work they came with appropriate time gaps between them in an order that ensured that there was business for all. It sure would have made any supply chain manager proud. The amazing part in all this was that even if one treated oneself to each and every goody on the smorgasbord, it would have hardly made a dent by twenty rupees (that is less than half a US dollar at current exchange rates).<br /><br />Discerning as these people where while parting with what they had, they definitely had the propensity to buy probably because of the inherent bullishness that I had mentioned earlier. But then, where were the organized companies and their goods? Did they not see the opportunity at hand? The legalities of the situation might have demanded restraint from them, I supposed. Then again, what did my fellow travelers have to offer these companies? Well, they had some money, definitely had time in their hands and most importantly they had the willingness to spend, a very good proposition for the likes of insurance brokers, awareness campaigners, market researchers, new product testers and everyone in this ilk.<br /><br />I saw the bright yellow signage outside hinting that my station had arrived. As I got down and watched the train move away, I saw yet another vendor jumping in. These vendors and hawkers, I thought, understood co-creation of value, the importance of – communication with their customers and with their co-opetitors, just in time supply chains, carrying zero inventories, differential pricing, manufacturing close to their customers, economies of scale and scope and many more. Of course, they weren’t aware of these concepts, but out of sheer necessity and instinct, they simply understood!<br /><br />They surely have a lot more to teach us. The question is – Are we ready to listen?<br /><br />PS: In 2003, BBC aired a program on the Dabbawalas of Mumbai, which was part of a series on unique businesses of the world. In 2003, Paul S. Goodman and Denise Rousseau, both faculties at the Graduate School of Industrial Administration of the Carnegie Mellon University, made their first full-length documentary called 'The Dabbawallas'. According to the press release of the TV station presenting the documentary, "The film also serves as a counterpoint. Instead of asking how knowledge in developing countries can help less developed countries, this film focuses on how developed countries can learn from less the developed countries”.Back home, the Dabbawalas were invited to speak at the Confederation of Indian Industry (CII) meets and at leading Indian business schools such as IIM, Bangalore and Lucknow.Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com4tag:blogger.com,1999:blog-31302663.post-1156142424126622552006-08-20T23:29:00.000-07:002007-01-19T21:15:51.218-08:005C's(forces) analysis of a brand.<div>I wrote the following as part of a paper titled “Strategies for building sustainable Indian brands”. Due to time and word limit constraints, I could not explain some of my points completely. Anyways here is what I wrote –<br /><br />Strategic Brand Management (5 C Model) :<br /><br />The strategic planning for a brand starts with an understanding of an organization’s business strategy. The business strategy is usually aimed at achieving particular consumer behavior. Only if consumers actually purchase, use goods (more often), pay a higher price or donate (more) will the objectives of a business strategy be met. These objectives may include a larger market share, increased returns, higher margins and increased shareholder value. Brands are designed to persuade consumers to exhibit the behavior that will make these objectives come true for the organization. Thus, the influence of business strategy upon brand strategy is direct and compelling. In order to formulate an effective strategy we propose the use of the ‘five forces analysis of the brand’. These are the five forces which are constantly acting upon the brand and shrinking its value. The success or failure of a brand will depend on the organization’s response to each of these potential threats.<br /><br /><br /><br /><p>5 C’s analysis of a brand<br />Competition<br />Company<br />Consumers<br />Complements<br />Culture</p><br /><br /><p></p><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiiazpzUzV03-ZTF8h_T3e7Eh00oGBmtgFLf-c08ZFH-Ot-4npnjRSgRlODOfk3PrcaCnJa12ap-CVtENrbc5ZG1id0YZMx4qozgzWf49UK3ddr-DdEvXFE_CBsUN3hbc2s_vEaxA/s1600-h/pic1.jpg"><img id="BLOGGER_PHOTO_ID_5021976811517003586" style="DISPLAY: block; MARGIN: 0px auto 10px; CURSOR: hand; TEXT-ALIGN: center" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiiazpzUzV03-ZTF8h_T3e7Eh00oGBmtgFLf-c08ZFH-Ot-4npnjRSgRlODOfk3PrcaCnJa12ap-CVtENrbc5ZG1id0YZMx4qozgzWf49UK3ddr-DdEvXFE_CBsUN3hbc2s_vEaxA/s320/pic1.jpg" border="0" /></a><br /><div><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEglwp8n4PsiM4rsYCvJvDmyMWPqd-UaEG0vFag6_6YmbZpfWKnVk1HBy-D3TZpBnJ3fgtXegIXDjTEqE164kfeJADOHYX9l5ceyxR-9U_oWOvibGo4F9dfSeTlyklSSGFWYcM9aVQ/s1600-h/pic1.jpg"></a><br /><br /><p><a href="http://photos1.blogger.com/blogger/6138/529/1600/brand%20-%205%20forces.2.jpg"></a>First Force - COMPETITION:<br /><br />Brands face the threat of competition on a continuous basis. New products are being launched more frequently, each luring consumers away from the brand. In order to counter this threat, companies have to be innovating and evolving the underlying product represented by the brand and at the same time be boringly consistent about the value or promise that the brand is supposed to deliver.<br /><br />The bottomline is to deliver the promise or value represented by the brand better than anybody else. For example, a soap brand that promises freshness, should at all times communicate and deliver freshness. But the means by which that freshness is delivered can be changed over time through new formulations, new ingredients, new fragrance, new packaging etc. But the core value that the brand promises should never be changed or diluted.<br /><br />Substitutes are brands or products that do not provide the same value or promise that the concerned brand offers but something substantially different. Yet, these can act as substitutes that can erode the brand’s value. These disruptive brands have the potential to make any brand irrelevant.<br /><br />The first step in countering this threat is to identify them. The following signals can help companies identify these substitutes. First and foremost, the company has to find out through standard techniques whether the brand value or market share for its own brand/product is dwindling or whether internal growth targets are not met. If yes, then the second question is whether this is in fact due to a competitor. A simple check on the competitor brands’ will provide that information. The next step is to look at what the potential/existing consumer is doing without the brand to solve his problem. This can be done through a market research survey. This step usually reveals the details of the substitute. The question of why we do not recommend the third step directly is irrelevant because of increasing costs involved with each step.<br /><br />Once the substitute is known, the decision of whether to dilute, extend or launch a new brand to counter this threat has to be considered by the company. This requires careful analysis and is beyond the scope of this paper, but to start with the following questions should be answered by the company.<br /><br /><em>Does the substitute solve the consumer’s problem in a better way?<br />Does it provide better value?<br />Does its value proposition make mine irrelevant?<br />What will happen if I position my brand to emulate his model? What will happen if I don’t?<br />What is the consumer’s perception of the substitute? What is the best strategy for me to create a similar perception?<br /></em><br />Second Force - COMPANY:<br /><br />One of the main threats for brands especially successful ones does not come from outside but from inside i.e. from the company which owns the brand. Some of the greatest brand failures such as New Coke, Harley Davidson perfume, R.J Reynolds smokeless cigarettes, Fiat Palio, HM Ambassador etc. have been because this force more than any other force that we discuss.<br /><br />There are several reasons for the company to act as a threat to its own brand, the most important being the compelling need to satisfy short term financial goals. A simple idea to overcome this is to have long term brand commitments like a brand vision and mission. Any action that pushes the brand towards this medium term mission and long term vision should be undertaken and every other idea dismissed. Internal auditing of such decisions, 360 degree feedback mechanisms etc. can be employed to ensure compliance.<br /><br />Having such commitments clarifies internally what the brand stands for and helps the employees better understand and communicate the brand value outside. If possible, employees must experience the brand as a customer during training.<br /><br />It is important to communicate internally that every employee is part of what we call the brandosphere. This consists of the brand at the core, the other sister brands and company brand as the shell and every employee, partner, associate etc forming the outer covering. Every time the customer comes in contact with any of the entities within the brandosphere, he forms an impression about the brand. The deeper is the contact within the brandosphere, the stronger is the impression created.<br /><br />Third Force - CONSUMERS<br />Peter Drucker said, "The purpose of business is to find a customer." Theodore Levitt elaborated that "the purpose of business is to create and keep a customer". However, today business is moving towards what Jason Jennings and Laurence Houghton said, "The purpose of business is to find, keep and grow the right customer."<br /><br />In fact, consumers are the sole reason for a brand’s existence. So how can these consumers be a threat? This is because of the declining loyalty of customers and their fast changing preferences. The "habit-driven" consumer, who was the bedrock of many "iconic, heritage" brands, might soon be an extinct segment.<br /><br />The first and foremost step for companies to find, create and retain consumers is to listen to them. Since a brand is based on perceived value and the only perception that matters is the customer's and the potential customer's, then the starting point is to find out what is of value to these people. This can be done by moving from existing CRM solutions that companies use wherein the company gets a 360 degree view of the customer to a model called Customer Experience Management (CEM) which is a customer’s 360 degree view of the company. The CEM system can be used to attain a complete perspective of the consumer.<br /><br />Once the company has an in-depth knowledge of the customer’s preferences, it can begin to work backward and focus on delivering the top priorities of the consumer. The bottom line being customer satisfaction and loyalty as these are, and will be, the drivers of long-term sustainable brand value.<br /><br />Fourth Force - COMPLEMENTS<br />Brand complements are support brands that keep the consumer from switching from the brand. The presence of these acts as a barrier for potential new entrants into the brand’s value zone. These complements help in creating new customer experiences, thus satisfying the specific needs of individual customer groups without affecting the main brand’s core values. Examples for what we call brand complements are Fanta and Sprite for Coca Cola, the innumerable support software products for MS Windows etc.<br /><br />Fifth Force - CULTURE<br />Culture or environment in which the brand exists is an important force that acts on the brand. The value conveyed by the brand was conceived in a certain cultural setting and this we say should not be changed. But, the cultural setting keeps changing all the time. The challenge for a brand is to maintain relevance in this changing environment.<br /><br />The key to success in this environment is to move the brand along with the consumer. Although the core value represented by the brand will not change, the way in which it reaches the consumer will have to change according to changing consumer culture. This includes the packaging, the brand communication delivery pipeline (media), the PR activities of the company including its Corporate Social Responsibility activities etc.<br /><br /><a href="http://photos1.blogger.com/blogger/6138/529/1600/brand%20-%205%20forces.0.jpg"></a><br /><br /><br /></p></div></div>Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com7tag:blogger.com,1999:blog-31302663.post-1155405360882032602006-08-12T10:53:00.000-07:002006-08-12T10:56:00.883-07:00Challenges for Businesses in the 21st CenturyI was reading an article on the greatest challenges for business in the 21st century. It talked about operational excellence, quality and cost control, talent acquisition and retention, being employee and customer focused among other things. <br /><br />If you ask me, the most important thing that should worry companies of the 21st century is that ‘THE CUSTOMER KNOWS TOO MUCH’. Same is the case with your employees. If you think about it, companies have always been thriving on the information asymmetry that existed between them and their customers and employees. For example think about the(ir)relevance of wage negotiations , about the sales guy’s black book (which contains the costs of his product and helps him during bargaining with customers) in an information symmetric world.Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com6tag:blogger.com,1999:blog-31302663.post-1155405076593019842006-08-12T10:49:00.000-07:002006-08-12T10:53:21.976-07:00The GoalWhat is your goal in life, I ask my MBA colleagues. A few said that becoming a CEO was their goal; many said that they want to have a lot of money and enjoy life. Some said that they wanted to be in powerful posts from where they can help other people. An astonishing number of them actually said that they did not know. <br /><br />Try to answer the following 4 questions in two minutes.<br /><br />1. Name the CEOs of the top 5 Indian companies in terms of profit margins for the past five years?<br />2. Name the top 5 richest Indians who hold an MBA degree?<br />3. Name the top 5 philanthropists of our country?<br />4. Name any 5 people other than your relatives, friends or teachers who hold an MBA degree?<br /><br />If you are not part of <a href="http://en.wikipedia.org/wiki/Mensa_International">Mensa</a> and you are not a hypocrite, I am sure that you will admit that you were not able to answer most of the above questions. If you were completely honest you would agree that you could answer none.<br /><br />Now try answering these in a similar timeframe – <br /><br />1. Name five of your closest friends?<br />2. Name five of your favorite teachers?<br />3. Name five people you admire?<br />4. Name five of the happiest moments of your life?<br /><br />Again if you do not belong to the above said group (I got nothing against Mensa, except that I ain’t in it ;-), you could answer most of these questions.<br /><br />Now think again. What is your Goal? <br /><br />Two thoughts to ponder on this subject- <br />1. “Reclaim your life!” – Tata Sumo Ad.<br />2. “When you want something, all the world conspires in helping you to achieve it.” – Paulo Coelho in the Alchemist. (Better be very careful about what you want ‘coz you will surely get it :-)Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com2tag:blogger.com,1999:blog-31302663.post-1155324070390746422006-08-11T11:53:00.000-07:002006-08-11T12:21:10.486-07:00The Power of Logic 2If you haven’t read my earlier post called ‘The Power of Logic’, I strongly suggest that you do exactly that before proceeding further.<br /><br />Ok, what is this logic after all? Logic is the set of rules by which one can formulate convincing arguments. It is the science of argument. When presenting an argument, one takes a set of premises that are proven to be true, and uses logic to show how they prove a certain foregone conclusion. It is helpful to know that this type of argument is not just a presentation of facts, but is, rather, an effort to prove a conclusion that was previously reached. (If you are not convinced, please read <a href="http://www.gladwell.com/blink/">Blink</a>! This <a href="http://www.gladwell.com/bio.html">Gladwell</a> guy better pay me for this free publicity ;-)<br /><br />So what’s the point? Well, the point is this - The human mind is wired(or rather educated) in such a way that it believes in logic so much so that even extremely irrational stuff when presented in a logical manner will be accepted as true. Marketers should begin to exploit this basic weakness of the human mind. <br /><br />Not convinced? Let me give you some basically irrational stuff that sounds logical.<br /><br />1. More people die in hospitals than anywhere else. Therefore, hospitals are dangerous.<br />2. 97% percent of the polled people like this brand. (Yeah, the old trick. I never tell them that I polled only 3 people. Don’t ask me what 97% of 3 is ‘coz 93.5% of all statistics are cooked up on the spot including this one :) Gotcha.)<br />3. Or the classical Indian consumer logic, “Don’t buy that car, my friend has one and it continuously gives him trouble” <br /><br />So far so good. The problem comes in implementing this new found knowledge in real life marketing communication. How can I tell my audience what I want to say and convince them to act as I tell them to? <br /><br />Before answering that let me compare two types of communications presently bombarding the consumers. One is what I call the emotional trap promotion wherein the marketer says “Buy 5 of my products and get a chance to win a date with Aishwarya Rai”. With all due respects to Aish and the marketer, what do they take us customers to be? Nincompoops? Of course there will be some nincompoops who fall for this trap dreaming about the date and what will happen after that ;) The car ads we talked about in my earlier post belong to this category.<br /><br />The other type of communication is the logical trap. Here the marketer says “If you buy 5 of my products, you save Rs.50”. The question the consumer has is whether he really requires 5 of your products in the first place? But invariably many consumers do fall for this trap(Don’t ask me for the statistics. You know that I’ll provide them ;) Most sales promotions fall in this category.<br /><br />Although the second model is close to what I call logic marketing, it is too simplistic. In the logical marketing framework, marketers need to develop a sequence of logical steps in the communication like the proof of a mathematical theorem. There should be clarity in the message and continuity in the communication right from the first ad the customer sees to the point of purchase(sales pitch) and beyond. More on this frame work in my future posts.<br /><br />I believe that in the future, advertisements will be so effective that if a rational person who has the resources to buy the product sees them, he will go buy the product. This I believe will be achieved through a communication frame work which has emotion as its core and logic and persuasion as the outer layers which will convince him about the product. <br /><br />This of course does not mean lying. I leave you with two great statements from two people I adore.<br /><br /><a href="http://en.wikipedia.org/wiki/David_Ogilvy">David Ogilvy</a> said: “Never write an advertisement which you wouldn’t want your family to read. You wouldn’t tell lies to your own wife. Don’t tell them to mine.” <br /><br />And <a href="http://www.dilbert.com">Scott Adams</a> says - “For companies to survive, they will have to become experts at confusing the public into thinking their generic products are better than their competitors’ generic products.”Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com2tag:blogger.com,1999:blog-31302663.post-1155272595242762722006-08-10T21:51:00.000-07:002006-08-10T22:12:58.313-07:00Running the showMy friend started a software firm and it went burst recently. The following are the key takeaways from his experience. It is a step by step account on how to start a software business. This is what he has to say about it - <br /><br />"Go and get a particular name to the registrar of companies.<br /><br />They will check and see whether it is available and give it to u. This should be done with the Registrar of Companies.<br /><br />After doing this, file the articles of memorandum and associationship with the government and wait for the sanction.<br /><br />Once you get the sanction,there will be a form which the government will give you. You can use this to get ur bank accounts opened.<br /><br />Ensure that your bank accounts are opened from the first day of operations.<br /><br />Ensure that phone connections, broadband and all other utilities are in the name of the company.<br /><br />All payments should be done through your bank. This is to ensure that you can keep track of the expense.<br /><br />STP registration is not required. It is only required and will benefit you if you are a complete exporter and if you dont cater to the indian market and only if you cater to the international market <br /><br />Say 80% of all your company are exports, by registering in STP u will get tax sops and can purchase hardware . But u must cross the threshold limit. Even software services can be considered under exports<br /><br />VC funding - U are eligible for it once u have a good tech team, 4-5 people and a good marketing presence .Important-> All VCs look for this. A good marketing presence in addition .<br /><br />VC funding - it is essential that u run the company for atleast 1 and half years to be considered for a VC fundigng. I dont know how this works in the US. But as far as a beginner entrepreneur, VC funding can be expected only after 1 and half years. If you already have a successful company under u belt the process will be different<br /><br />VC funding - it is advisable to delay the VC funding to the later stages to ensure that u get a good deal. Otherwise it will not be worth it and u wont be left with any stakes. So try to run the company as long as possible <br /><br />Accounting - Since you are going to handle the company for 2 years, there must a solid knowledge of accounting . Follow double accounting standards. This is especially necessary if we have to go for a VC funding <br />This would involve maintaining of journals, daybooks etc.<br /><br />Web site - Get this outsourced . Unless u want to save every penny and u are literally like us do it by urself . But even if u plan to do it get it done by people who are willing to help. I wud say get this outsourced. Even 20 k shud be a decent to get a unique design.<br /><br />Server - Get your own server with a public ip on the net. This is mandatory and nowadays it is cheap<br /><br />Server tools - Try to do something innovative like running a SVN server and sharing code in time part time people work on it. The main aim get as many part time people to help u. This wud help u know how much the part time people are interested in joining you and whether they really deserve a good place in the company in the future<br /><br />Version Control - As i mentioned above version control is very important and have it in place from day one.<br /><br />Resource - Start atleast with three people who are ready to face three years without money.<br /><br />This is important.Since we are not putting in any capital, it is necessary that we alteast sacrifice our salary and not expect too much. keep it to 12 k or something . This may sound silly but ignore people who want to be a part of it to enhance their profile and go for their MBAs. These people dont stick for long and are really not worth it and their loyalty fades<br /><br />Open source - Get as much open source tools as possible . Try to have one machine with a proper build environment and pay only for this license<br /><br />Biz plan - Have a good biz plan ready and keep on going to biz conferences and present it even if u dont want funding for the company . It will help u broaden ur links and contacts<br /><br />Two people with contribution - Other than the minimum 3 people there shud be some person who guides u on the accounting side , bank transactions ( a good CA wud do i guess)<br />A good marketing person with experience - a marketing person who will fetch u links is necessary. This person is very much necessary for carrying out ur marketing to companies.Focus on mail marketing.<br /><br />Cash Flow - Cash flow for a company in India provided they have above constraints can be run in say one and half lakh rupees. The project pipelines are equally important and u can disregard cash flow if u have a good pipeline of projects<br /><br />Tie Ups - The name of the game is tie ups . Have technology partners in the form of solution partners, marketing partners and so on<br /><br />The board - The board is supposed to be of only people who contribute to the contacts and are influential and can guide its path. No tech people on the board unless it is cofounded by them. Maybe it can be given to people who can adapt to both settings and play the roles with equal ease.<br /><br />There has to be space on the board to accomdate the VC. No tech people on the board unless the ideas are very unique.<br /><br />Social circle - A membership in TIE and all the entrepreneurship . An association with all the colleges and their incubator cells. A circle which comprises of other CEOs. Pay attention to ur calling cards. Get as much as possible other people's cards. Start doing this immediately. As far as i know, TIE would not help that much and only in terms of confidence. Once u make the first million u can gain access to the next elite membership clubs where only a select circle is allowed. Business contacts will start flourishing only when u reach this circle.<br /><br />Shares and capitals - Please split the shares when the company starts. U have to make sure that u have around 35% of the companies for attracting resources. Once the company starts to grow this wil be imporant. Other than the cofounders people who join the company will get 0.5 percent of the company outside the cofounders. Cofounders are those people who are from the inception and who stay stead fast <br /><br />MBA- A MBA will probably help u especially if you do not know accounting and about capital management. Anyway I feel a US presece woud help more than an MBA. <br /><br />These are some of my learnings. There may be many things that I have left out. The most important aspect we techies ought to remember is the human aspect of business which is very important. Be it your customers, partners, employees etc., take good care to interact properly with them and be completely honest. <br /><br />Thats it from me now...Goodluck and Godspeed."Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com2tag:blogger.com,1999:blog-31302663.post-1154081469766421972006-07-28T03:08:00.000-07:002006-08-12T14:32:05.456-07:00The power of LogicWhat does the typical Indian middle class consumer do when he wants to make a big ticket purchase, say a car for instance? The first thing he does is start ogling at the car adverts with at most attention. Unfortunately the ad says…blah blah blah…the sunshine car. So what does that mean? Does it mean that he gets more sunshine when he is in the car? He thinks ‘Oh my god. I am buying the goddamn car just to escape this great indian summer and they want to me to have more sunshine’. He feels so unsure and dumb and changes the channel, and another ad keeps repeating “You gotta be dumb…you gotta be dumb”. ‘That’s it’ he says, ‘I cannot take it anymore’.<br /><br />Of course his travail does not end here. Coaxed by his colleagues and cajoled by his wife, he finally takes time out on a Friday afternoon from office and decides to take the Test Drive. Unfortunately, there are 20 other </span><a href="http://www.google.com/search?hl=en&lr=&rls=com.microsoft%3Aen-US&q=induhviduals"><span style="font-family:verdana;">‘in-duh?-viduals’ </span></a><span style="font-family:verdana;">waiting in queue. As he waits for his chance, the sales guys spot him on the spot. He looks at them like a cornered buffalo does a group of hyenas. The great Indian sales pitch then begins. The consumer is bombarded with more information than he can ever assimilate and he is stuffed with ten to fifteen brochures. To top it all, his kids seem to understand everything and they have already decided. So everything seems settled and the salesman smells blood and then all of a sudden our buffalo gets up and says, “I have to think about it!” (Of course he does eventually succumb to the pressure and buys something after going through the above process for two to three times)<br /><br />Now how does a brand manager perceive this whole process? He designs an ad which talks about the sunshine car. The car that will bring smiles to faces and is fresh and youthful. When he talks about the “you got to be dumb” campaign, he is excited about how much the customer is intrigued and wants to know more. He knows for sure that the ad is good enough to pull the customer to the showroom. His job is done and done well and he has passed the baton to the sales guy.<br /><br />The sales guy has to deal with, as </span><a href="http://www20.kellogg.northwestern.edu/facdir/facpage.asp?sid=474"><span style="font-family:verdana;">Uncle Bala</span></a><span style="font-family:verdana;"> says, two kinds of people, the Customers and the Cushtomers*. And in an Indian context, most of them are in the second category. So here he sees this fellow whom he is sure is a cushtomer and diligently goes about educating him about the product and provides him with all the information necessary to make a wise and informed decision. He knows that the cushtomer is hooked and eventhough he is not making the buying decision now, he will eventually. (Ofcourse the cushtomer was made to wait for the test drive to give him an opportunity to explore the products in the showroom and get a feel of their hospitality).<br /><br />Now the question is why this post is named “The power of logic”…Well that and more in my next post…Cheers.<br /><br />* Cushtomers are those customers with whom doing business is extremely difficult and mostly non-profitable.<br /></span><span style="font-family:verdana;"></span>Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com1tag:blogger.com,1999:blog-31302663.post-1153555951215317572006-07-22T01:11:00.000-07:002006-07-22T11:39:50.973-07:00PPPPPPPThe other day when we were trying to decide on a name for our entrepreneurship club, somebody suggested that we call it EEE. When asked to explain what EEE stood for, he said, ‘Well, I don’t know what the first two E’s stand for but the third one is for Entrepreneurship’. <br /><br />A few days back, I met this marketing manager and as anxious as I am about placements as every other MBA student is, I asked him about preparing for the marketing interview. He told me this – ‘Being a fresher into the Marketing domain make sure you have the fundamentals of Ps, As, Os etc done good’. I was stunned.<br /><br />What is this with management education (especially marketing) and repeating alphabets? All theories or at least the ones that matter (well, the ones that are talked about) have repeating alphabets. What am I talking about? Check this out – The 4 P’s of marketing, Kenichi Ohmae’s 3 C’s, Nirmalya Kumar’s 3V’s, Management accounting’s 4M’s, the 5S quality principle and the list goes on.<br /><br />During a discussion on the 4P’s, somebody even suggested that it’s now become the 7Ps with People, Process and Physical Evidence being P number 5, 6, 7. During Dr.Philip Kotler’s visit to <a href="http://www.glakes.org">Great Lakes</a>, the advertising paraphernalia read “Philip Kotler – The most important P in marketing”. <br /><br />The point is, why can’t the marketing mix model have for instance 4 P’s, 2E’s and a G. Why do I have to extend the thought process only by adding more P’s?<br /><br />If current trends continue, the marketing mix of 2050 might well be akin to this interesting dialogue between V and Eva Hammond in the movie ‘V for Vendetta’.<br /><br />Says V to Eva, “Voilà! In view, a humble vaudevillian veteran, cast vicariously as both victim and villain by the vicissitudes of Fate.This visage, no mere veneer of vanity, is it vestige of the vox populi, now vacant, vanished, as the once vital voice of the verisimilitude now venerates what they once vilified. However, this valorous visitation of a by-gone vexation, stands vivified, and has vowed to vanquish these venal and virulent vermin van-guarding vice and vouchsafing the violently vicious and voracious violation of volition. The only verdict is vengeance; a vendetta, held as a votive, not in vain, for the value and veracity of such shall one day vindicate the vigilant and the virtuous. Verily, this vichyssoise of verbiage veers most verbose vis-à-vis an introduction, and so it is my very good honor to meet you and you may call me V.”<br /><br /><br />(To be continued)Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com2tag:blogger.com,1999:blog-31302663.post-1153555912974022742006-07-22T01:08:00.000-07:002006-07-22T11:01:40.893-07:00How much should the CEO know?<a href="http://www20.kellogg.northwestern.edu/facdir/facpage.asp?sid=474">Uncle Bala </a>always talks about the key takeaways from the previous class and he always asks for learnings from the CEO’s perspective. I remember an interesting story in this context. It goes something like this – ‘A large acid tank in a chemical factory explodes and 10 workers are seriously injured’. Now this is how this information gets transferred to the top.<br /><br />Line supervisor to Manufacturing Head: Sir, an acid tank has exploded. We have a few serious injuries.<br /><br />Man.Head to Div.head: We had an incident in the operations area. There were no casualities.<br /><br />Div.Head to Country head: We are having some problems down here. But I have allotted a special team to solve them. I am sure the quarterly targets will be met.<br /><br />Country head to CFO (Head office, USA): We are having some operational issues over here. This quarter’s revenue guidance might have to be revised.<br /><br />(The CEO and CFO are in Hawaii formulating the ‘Global Strategic Vision’ for the year. They are currently playing golf.)<br /><br />CEO to CFO: So Jack how is our India operations getting along?<br /><br />The CFO takes out a placard that reads :(Ramachandran.C.V.http://www.blogger.com/profile/03081744324955697220noreply@blogger.com2