Thursday, January 29, 2009
The conventional wisdom is that Argos is following the path of other British retailers, who are closing down underperforming operations abroad to focus on home operations in this troubled times. Tesco has decided to go slow on its United States expansion and Marks & Spencer is having trouble in China. DSG is pulling the plug on its slow moving Italian operation and trying to concentrate back at home. Argos' decision to exit India, which will mean 'single digit' million pound loss for the chain's owner, Home Retail group, will largely be seen in the light of these experiences.
However, with a close look, it may have more reasons than just domestic downturn. Argos' India operations were plagued with small issues from day one, and they suffered from delays in shipment and stock-outs from day one. They were operating under a franchise arrangements with Shopper's Stop/ Hypercity retail groups in India for about an year now, and their reach even in the Mumbai city was extremely limited. For example, out of the six odd stores Argos had in Mumbai, their flagship had a very limited stock on display and a very thin catalogue [compared to the 1500 page tome we carry home once in six months] and no noticeable web front. The shop, while located in a modern building, was in Thane, far from downtown Mumbai, and it was supplemented by catalogue-only points in nearby areas.
In all, while I am a fan of Argos in the UK, their presence in India disappointed me. They simply did not understand the market and did not have a differentiating strategy in place. I do think this is very common among British businesses to have a very confused strategy about India and a very unclear expectation: I am sure Argos got it wrong from day one.
I know I am indulging in a guessing game here, but let's try to think what has gone wrong. First, I think the choice of Thane, possibly driven by the exorbitant property prices in downtown Mumbai, is a mistake - it is too far out of the spotlight; it is almost a different city. I was told about the brilliant strategy of hiring semi-skilled people and giving them low wages and a incentive - a sure departure from what Argos stands for here, hassle-free shopping, and a recipe for disaster. Besides, as I walked into the Argos store and tried to spot the difference from the homegrown retail chains, I could spot none - other than the fact there were hardly any buyers around. Their prices were at a slight premium - someone must have thought that Indian buyers will pay a premium on electric kettle because it was bought from Argos - another clear mistake.
I can go on and on, but such mistakes are not peculiar to Argos. I do think British companies approach India without first scoping it out, and end up doing too little too late. They also emphasize too much on brand - too much of an inside-out perspective - which surely does not work in India. And, besides, they forget that value creates the brand, and it is not the other way round.
India is an interesting market, by all means, with its huge number of consumers and rising purchasing power. But it is a complex market at the same time - any company having a strategy for INDIA is making a mistake of not factoring various regional and local factors out. It is common among brand-owners to think inside-out, but each new market is a new game altogether and the brand needs to be reestablished. I think it is essential, when approaching India, to scope out the challenges of reestablishing the brand in a big and complex market.
Think of this. Why would I go to Argos and pay a premium for an electric kettle? For a better shopping experience? My foot! The only way Argos could have a sustainable business in India if they offered an unmatched range of merchadise under one roof [which it does in UK and I buy electronics and toys and appliances from Argos] at an unbeatable price. That needed scale and commitment, which it never had.
This also tells another story about piloting new markets. The conventional wisdom prompts us to create small pilots to test the waters before committing to a market. But, more often than not, such business pilots fail. This is possibly because we often confuse the need for scoping with piloting. Especially in markets like India and China, piloting fails to get the necessary traction of volume and fails to deliver value and choice. Such is the fate of Argos: So, of many others.
I was recently asking someone well conversed in international business development whether he has ever met an Indian businessman who talked about less than 200 outlets to him; he admitted he hasn't met any. Now, while this may be because of different factors - exuberance, optimism, or simply talking beyond one's capacity - there is another logic which the European business reasoning fails to grasp: that the market demands such a large scale intervention. From my experience, this is essentially true. A six store 'premium' generalist retailer offering undifferentiated product employing semi-skilled people at low wages was always going to be a sitting duck in a market where Big Bazaar, which came from nowhere and powered themselves on dreaming bag, rules.
This is why I think Argos' experience should be instructive to British, or European, businessmen. I think there are three key lessons here:
(A) India is not a cakewalk. There are highly competitive home grown service companies which can beat the European companies hands down: not just because they are local, but because they are nimble, have less baggage and constantly innovating instead of trying to fit an outworn suit in a new body.
(B) Pilot ventures can only work if this is scoped out right first. This isn't done in most cases. Lots of such international expansions are ego-driven, wanting to be in one the fastest growing markets because the entrepreneur happened to read one of the many recent business books. Such projects, which are based on the mistaken assumption (A) as described above, commit too little. Often, like in the case of Argos, the pilot looks like what the scoping exercise should have been - an exploration into the mechanics of the market.
(C) Whatever the brand, it needs to reestablish itself in every market. Argos should have focused on its basic value propositions - choice, cost, customer service - instead of the board on the door. It is tempting to take a market for granted because one has a brand: but that is committing suicide by taking the brand for granted.
Argos leaving obviously leaves a space in the market in India. I did want to see a shop like Argos [though it was disappointing to find it is different story in India] and I do think a good catalogue retailer will do well in the country. So, we are set to see an Indian company taking that position, soon. And, as the ways of the world these days, it will not be surprising to see that same Indian company buying out Argos in two to five years' time.
Wednesday, January 28, 2009
This is because it seems to be such a decent movie, but the critics are after it already. It seems to have shown India as a Third World Underbelly - which Amitabh Bachchan quoted, unquestioningly as he does, on his blog. This is already making a quite a bit of noise everywhere, and as you can see, I picked this up on facebook.
This post isn't about the movie, obviously. I haven't even seen it. But this is about this particular line of criticism, which we have heard before - almost every time a good movie was made about India.
What we seem to love is Ghajini, obviously, one that allows us to keep forgetting things. We love the fantasy of Lagaan, the comedy of Singh is King and all the impossible sets and incredible dresses. We love those soaps where people have sanskritized names, sleep with party dresses on and behave like animals as far as their conjugal lives are concerned.
I saw Indians protesting on TV about the usage of the word Slumdog, and others, apparently well-to-do ones, saying that the film shows the poorest parts of India, not the 'real India'!
It is obviously clear that we are a society in denial. We don't know what real India is, where it is. All the people who are ashamed or distressed about seeing the poverty in the movie, sees that everyday, while driving to office, on the road. The funny thing is that they are not embarrassed about poverty, they are embarrassed someone is talking about poverty.
It will be a shame if the movie is shut down. It can be, India has a record of banning books and cutting down movies. I am hoping to catch the movie on my trip to India, and will be disappointed if I can't see it.
Tuesday, January 27, 2009
I am still working on the Mumbai agreement. This is one thing about India, negotiations never stop. I am sure some people believe that this is the best way to get value, but definitely not in my view. I am actually getting an intuition - while my sales training will tell me that customers who have more objections are actually more committed to the process of buying, but in India, it is actually reverse: Somehow talk is still cheap and negotiations can actually an easy way to get into timewasters' trap. So, let's see what I get tomorrow: I am right on the wire and will possibly snap if I can't move it forward now.
In public life, the most outrageous thing that I have come across in recent days is the BBC's refusal to air an appeal - for charitable cause for children and the conflict affected people in Gaza - because they 'can't take sides'. This is the sort of stupid arrogance only BBC can take. They don't have to earn their money, remember. Every houseowner in UK more or less gets taxed for the existence of this out-of-date, out-of-touch institution. As keepers of public culture, they are currently into the promotion of abusive language and abhorrent behaviour. And, now this - a nineteenth century, I-know-best attitude, which is inhuman and beastly. Taking sides? By not airing the appeal, BBC actually condones the mindless killing that is going on in Gaza, and treats everyone of its people as terrorists. They are in this with Sky, but then Rupert Murdoch isn't a great benchmark for humanism anyway. But then, if consumers were outraged [they are clearly not, they are more concerned about Lost and football] and if they left Sky in droves, Sky would have relented and reversed the policy. But, not for Beeb, they have a god-given entitlement to my money and a right to use that in their patronizing way.
Monday, January 26, 2009
However, as we return again to our Happy Republic Day, it is important to look back to ourselves, and also our constitution, that unusally long document which wanted to say what we ought to be. It was adopted by our leaders full of hope, who wanted to govern India as a modern country. They were ambitious, otherwise who will talk about universal adult suffarage in a country of millions of poor, landless and illiterate; they spoke about secularism in an ancient land, where daily lives are governed by traditions and beliefs; and they believed in socialism while the riches of the country was mostly concentrated. They wanted to forge an united identity, above the melee of languages, cultures and beliefs. India was possibly the most ambitious project in democracy the world has ever seen.
As we stand back after 58 years, some part of it looks too ambitious, indeed. We are as unequal as we ever were, not just in terms of what we have, but also what we can have - in terms of opportunities. But, at the same time, the democracy project has been a resounding success, bringing forth the biggest and profoundest affirmative action programme in History, leading to a political realignment equal to the revolution that was ushered into American politics by Barack Obama, every day.
As for secularism, we are at an inflexion point in India, where the ideals of our secular country is at a low point than it ever was, and we are obviously lost in the middle of events like the ones in Gujrat 2002 and Mumbai 2008.
I don't really think we have a choice but being secular though. How else do we build a modern country. We have at least 200 million people in India who are not Hindus, and possibly another 500 to 600 million who do not suffer from Brahminical complex? It is only naive to suggest that we create a modern, prosperous country without 70 to 80% of the population. However, those who suggest this kind of things possibly did not know the other 80% exists.
Besides, without being secular, we stop being democratic. The point is not just the 80% population here. It is about one can not be free without everyone around him/her being free. Because excluding other human beings from our lives make us less human. And, besides, though I do fully understand the pains of those who lost their loved ones in Mumbai 2008, and those who did the same in Gujrat 2002, I also know our secularism and freedom are not worth losing over anything: economic progress, assassin's bullet, or even the terrorist's madness. I know the words of Benjamin Franklin by heart - Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety.
As I say, we are at an inflexion point in India's history. We have an election in next few months, and we shall usher in, most possibly, a government which will dedicate their energies to changing what we believe, forever. The Hindu nationalists surely learnt from their loss last time, and if given power, they will sway out of the middle road they have already tried and leave the modernist agenda behind. We are possibly going to see an extreme era of politics driven by fear and xenophobia, the end of our republic, secularism, freedom and democracy.
This day, 26th January 2009, may go down in our last Republic Day when we were free to dream unless we strive to save the dream.
Sunday, January 25, 2009
Bad times? Jim Collins says this is going to stay, this is going to be the normal life. He points to Post-War period and wonders how the face-off between two nuclear empires actually gave us stability and a period of continuous prosperity. 'Danger, yes, but stability', to quote him. Surely it looks like that now - with the perspective of science - though it is funny to think what makes Cold War look like springtime.
However, the key point is what, in Collins' opinion, makes great companies tick in a downturn. He points to two things - values and having great people on board. He talked about the examples of P&G, which never thought about cutting corners and undermined quality and customer service even in a downturn, and H&P, which never let go the opportunity to hire a smart engineer even when in a downturn.
Thinking this through, I can see how relevant are these two observations. The most common reaction to economic downturn is cutting corners - cutting input costs to keep prices down [especially in services] and cutting people, which often, though not always, increases stress and burden of those left behind. The other thing, of course, is to abandon the entrepreneur's commitment to his staff, people who work to make him/her rich, and letting people's wages go unpaid or letting them go randomly.
As I watch a number of SMEs from close quarters, I know this is a cancerous disease. At the first sign of trouble, the SMEs launch defensive action, goaded possibly by the management consultants who cost them more than what it would cost them to keep the company running. The entrepreneur simply abdicates his role. I have seen people, who are relatively successful as entrepreneur, turning anti-entrepreneurial at times like this, blaming staff for the lack of money and even shrugging off the responsibility to pay regular wages.
The common argument will be that a SME will have to do this, because they don't have the luxury of long term. But this is completely wrong, as most big companies today came from rather humble roots and it is the ability to think long term and big picture made what they are today. And, actually, I would even count IBM in that - the notoriously selsy company with a great, hell-of-salesman leader at the helm. It is the ability to articulate a simple vision, keep going regardless of how the times are and never compromising on the basics defined the success stories amidst downturn.
The point about great people is particularly interesting. No plans or special understandings with banks are going to save anyone in the middle of all this. The only thing that can help now is innovation and smart thinking. And, are we going to get smart thinking if we don't have a smart team? Impossible. And, also, if we don't do our bit to show leadership and take the difficult times in our stride, and demoralize the team, can they innovate their way out of the woods? Very unlikely is the answer.
This brings us back to the question of leadership in the middle of downturns. In any other context, leadership is extremely important - but it is critical in the middle of a downturn. Jim Collins point out a critical leadership skill under duress - the ability to zoom out, to see things in perspective. He contrasts this with a fire fighter's tendency to Zoom In, focus on the square area right in front of him, under duress. This is going micro, which so many of us tend to do in a crisis. On the other hand, zooming out allows us to take a more balanced perspective and have a long term view. And, this allows us to act, more than just on the urgent, on the important things too.
It still is, indeed. Though I have now put this neatly on Excel and got at least one round of air tickets, my travel plans have so many dependencies that it can change any time. I am increasingly aware that I need to have greater visibility of my work plans, and days like this, I solely attempt to achieve that. But I do think that I have spread myself too thin - and the fault is all mine - and paying the price for that.
Steep price, I must add. My health is one. Besides, I, like other people, would love to stay home and know what I do tomorrow. Often, I don't. It feels like being up against the wall all the time. Once I am over with this current task, I shall possibly look back at these blog posts [and this is why I write] and think, with satisfaction, that I have completed another tough journey. But, of course, it is painful and confusing while it lasts.
No doubt, opportunities such as this let you learn, which you will not do otherwise. However, my problem is whether these learnings are any way connected to my life goals, and whether I shall be able to, after all these troubles, make anything good come out of it.
I keep talking about going back to India some day, but I must put a date and a plan for this. It is not going to be easy just to go back. I am acutely aware that the same doors, which are open to me today, will close down once I am back. I am also aware that mostly, people will relate to my going back with a lack of success, and I am sure it will hard to explain that this was always the original intent. Because such things do not happen.
I have got some offers to pursue when I go back to India, but sadly, none of these are attractive enough. I obviously do not want to go back in my life and start doing what I was doing before. I can possibly earn a bit of money, but that was never the objective. I am more or less clear in my mind that the next thing I do must lead to building of an institution - of some kind, a business or an organization - and I must be able to associate, and commit, long term to it. Yes, I am hoping that this will be the place I shall retire from, if I ever do.
Now, some people told me that such stability is not in my nature. But that is possibly wrong, my CV is not the correct guide of what's my nature. I actually loved building things, and I am generally long term in approach. I have left jobs only when the requirements of job ran against the grains of my character, and I have always left jobs well. I actually boast that I can almost go back to any company that I have worked for previously, possibly not entirely true or provable till I try, but this is possibly true for most part. In fact, I also realize that it may be true even for the companies where I did not do too well - I guess I can at least know one - but managed to have contributed in some way, even if that was outside my job description.
So, anyway, what do I want from here? Let's say - by March 31st - I need to set right the projects that we have in India. Actually, the project in India has always been a large undertaking, and most people involved in it did not know, or as in my case, did not want to acknowledge how big this project actually is. Interestingly, here, there is a divergence of opinion on what I think my role is, and what other people think my role is. Many people, in India and here, expect me to run the India operations. Now that is almost impossible sitting in Croydon, obviously. I must say that though I knew the sheer impossibility of such an enterprise, I have been swayed to think in those terms, taking upon myself the whole burden of creating a franchise network in India. This has actually created awful pressure on my schedule and commitments. One of my key goals is to set this right by March 31st and bring order to my life. I dont yet know how to do it, but I have now scheduled myself to be in India soon - in fact the whole of February - to sort this out.
And, beyond March 31st, I think it is most important for me to define my life goals and realign my work towards these. If I am supposed to go back, I should start now. If I am planning to stay, I need to define what for, and work towards it. And, the third, most exciting, possibility is that I close the chapter on UK and find work to live in the United States for a couple of years. This is one my heart is set on, as of this moment.
Saturday, January 24, 2009
So, not again, and work starts now, etc. But the most nagging thing is that I have to travel soon [which is not that bad] and I have mountains of work to complete, not least turning in my tax returns. The Inland Revenue seemed to have gone crazy and mandated that anyone filing their tax returns after 31st October will have to do so online. While they told me this clearly in advance and I can somewhat understand their logic of driving people to online filing, they have kept the process as complicated as before. Now I have to go and apply for an activation code - don't even remember if I have done this earlier, so will have to do that again - and it will arrive some time on post. Clearly, some people don't understand the online concept and they don't need to understand perhaps, because they can still keep their fat pay cheques and privileges whether there is a recession out there or not.
In fact, while I kick myself in anger for not applying for the activation code earlier and hanging in a limbo at this time - looking out for post morning, day and evening [though it is delivered only once a day] and thinking about the good old days of afternoon delivery - I am thinking that a pay freeze for the government servants will not be a bad idea. They are supposed to keep this economy running and they have to shoulder as much blame, collectively, as we individuals do. Gordon Brown says that he did not see it coming - what an astonishing statement from a man who led one of World's largest economies for more than a decade. A lunchtime conversation with any of the many economists he met would have warned him of this, unless he decided to take an afternoon nap during lunch break. So, why not freeze his salary [poor Gordon] and all his aides' salaries too. [My private opinion is that Alistair Darling's salary should be cut, or he should be fired for creating public boredom even in the middle of a financial 9/11, but I shall keep that to me for a moment].
If taxes aren't irritating enough, the next thing on my agenda is the test for Britishness, a rather dumb online exercise called Life in the UK, which I have to write soon. This is necessary for my Permanent Residence, which will allow me to stay in Britain indefinitely without having to queue up for a visa from time to time and answering questions like common criminals in front of an UK border agency official. Therefore, I have to study and know rather enlightening bits of information like the Queen's birthday, the population of South East England and possibly the date England won the football world cup. This will prove that I have become sufficiently British to be permitted a Leave to Remain.
Of course, I am reminded that I am an economic immigrant, who have come to Britain in search of a livelihood, at least thrice a day on tele. All political parties are united that they need to control economic migration, only letting people come for shortage areas, where they can't find adequate people from the EU. They have a plan to boot out these people after a few years, lest they start thinking and eating British. That way, the wise men tells the rest of the population, they can keep the Britain, British.
Interestingly, of course, it will be an exercise to find out what is actually British. I should know - I should write the test in a few days. Knowing the queen's birthday may not be important for any one with republican sentiments, and Alex Salmond may actually fail the test of Britishness intentionally. Of course, there are many things which are uniquely British and should be preserved, but this colonial pomposity may not be one of them. Kate Fox's brilliant Watching The English of course talks about many strains of being English, though Britishness, like Indianness, but unlike Americanness, is a politically made up concept.
For me, being British is not about writing the exam, but being able to laugh at the vanity of it. Being British is more about beers and football - so that test could have been taken in a pub instead of the dreary online test counters as it happens now. Being British is also shopping for girls and friendship for men. Cloitaire Raphael reminds us that British men has this unique thing about being so close to fellow men ['mates'] and the girls actually feel a bit neglected and therefore dress most outrageously to attract attention. Being British is being a touch vain, don't we see in all American war movies how the British soldiers went along with bands and all. But, if the experience and academic results are any guide, being British has nothing about writing exams and passing it.
I learnt a lot living in Britain. For example, the respect and care shown to the less able is exemplary. So is the public politeness. The love for design. An ability to laugh at oneself. A language that allows one to laugh at oneself, most suitable for wry humour. Things like these - it was worth taking all the trouble of immigration to learn.
But the test of Britishness? To me, it is an unique Anglo-Saxon expectation that the world will behave in their terms and want to be British. A strange old-world baggage when the nation state is almost dead and the globalization has been baptized. As if Gordon Brown had a sudden recollection of things old and gone and brought them in the domain of public policy. Is being in a state of denial British? [Like he did not see the recession coming] The fondness of English language, yes that too, especially when this is a lost property and it is a matter of time when the language is called American.
I noted earlier, while living in London, I felt like the medieval British visitors to Mughal India. Here I saw a civilization at its peak, and a society in decline. With technology changing everything and new financial innovations being made, life has become so comfortable that one starts to forget how one got here. One forgets that the power in this world remains with the curious, not the contented. As those British travellers in the middle ages confronted a far superior, but content, civilization in India. I know they were not subjected to a test of Indianness to settle in India. But as well they could have been - as then India was a society in denial - just as I have to get up now and study useless facts to keep going.
Friday, January 23, 2009
Market Rebels: How Activists Make or Break Radical Innovations, by Hayagreeva Rao, Professor at Stanford University’s Graduate School of Business, was published by Princeton University Press in January 2009.
Thursday, January 22, 2009
Wednesday, January 21, 2009
But, before I comment, I must also remind myself that this is indeed curious timing to talk about e-learning into five years in future. Nero playing violin while Rome was burning probably would have been an apt analogy, but I am no Nero and can not do much to stop the mayhem. But, one thing for sure, there is very little certainty in the economic climate right now, and it is hard to see much ahead at this time.
Tuesday, January 20, 2009
But, I am over with it now, for the moment. Obviously, the work starts now and I have to do the research. Sometimes, I feel tempted to think that I am better off completely focusing on such work - writing, reading, research - rather than trying to keep so many balls on the air. There is, of course, no better time to take a career break than this year, when everything is topsy-turvy and the world economy has decided to go back a few years, as if in a time machine. But then, the work I do is not just work - this is my baby in lots of ways and I can't suddenly take a break. Also, I have tried talking this out with friends, and it draws diverse reactions. Some people, professionals and businessmen, clearly follow a line and for them, going back to the university is simply not an option. They rather point out how much lost income this will mean. On the other hand, there are others who get inspired by the idea and wants to do the same - these are people who are not so much after money than they are after happiness. And, for me, a perpetual Gemini, I am neither here nor there, it is hard to make up my mind.
Outside of my own problems, the whole America is now waiting for Obama. Today he gets inaugurated. The American transition process is incredibly long drawn and unbelievably civil, at least as it turned out in this case. To have a President-in-Waiting for almost three months would be almost unbelievable in many countries, but I think it is a great idea - because it is designed to transition the responsibility slowly and correctly. Of course, this is done not with intent - it is just the process of counting and tallying the electoral votes that takes the time.
There are concerns about security and still disbelief that a black man can actually become America's president. I picked up a joke in Ireland. It goes like this: When Obama turned up in haven, St Peter was guarding the gate [no surprises] and he asked Obama, 'And, who are you?' Obama replied, 'I am Barack Obama, the first black president of America'. St Peter, amazed, said,'Oh! I did not know that. When did this happen'. 'About twenty minutes ago', says Obama.
I am sure the security is tight all over America and the excitement is oozing out. I know more than 2 million people will possibly turn up at this inauguration, which I plan to watch, either on TV or on Facebook. But what will be on every one's mind is such dreams, such possibilities are usually fragile - remember Martin Luther King Jr. - and everyone of us, across the world, must do our best to protect the possibility and foster the opportunity. This is an unique moment in the whole human history, when democracy has finally triumphed and showed what it can achieve. We must keep this flame burning.
Obama obviously comes at a difficult time, but his intentions are somewhat clear now. He will not bring in a revolution, and pack Americans off Iraq tomorrow. That is understandable. In real life, you can't be ideological. If he tries to pack off American soldiers off Iraq on the first plane - he can't. There are simply not so many planes to carry all the soldiers and their kits. So, some have to be left on the ground, who will then be exposed to more danger. He has to do an orderly transition. He has to ensure that Iraq does not become another failed state. He has to tread cautiously.
Interestingly Obama knows this and this is why he is the President. But the way Israelis packed their bags and ran from Gaza tells us that they had this license to finish off from Bush and Condi Rice, but they can't carry on any longer. Obama will, hopefully, show firmness and fairness dealing with this conflict, one which is endangering the world not just by fostering terrorism but also by lowering the moral authority of state power. One can not let Israelis go on killing innocent children. As I said earlier, I was moved by the plight of Baby Moshe in Mumbai; however, I can see Israeli government behaves no more civilly than those terrorists in Nariman House.
So, that gets us to January 20th. I have a full diary, and I shall wait, with baited breath, for Obama.
Monday, January 19, 2009
Sunday, January 18, 2009
Saturday, January 17, 2009
This time, I want this 100 days to transform to my life. And, the change is that I am not going to wait till the 99th day for the change, as I have done before. Change starts now.
Last week, I had a very productive visit to Ireland. One which changed my perspectives and the way I saw things earlier. I must admit that I went with an open mind, the way I am trying to do these days, and it helped. I was putting that extra effort to figure out why people think / do the way they think/do, reaching out to hitherto indecipherable individuals.
I mus admit, I could see how wrong I was on certain counts, especially when the prism of my own perception was removed.
I got one very valuable feedback. I am not ruthless enough. That's something which I knew from before, but did not get the right word. I thought I am a people/relationship person. But that's a nice way to say this thing. Ruthlessness is indeed needed, when most people take advantage of niceness. And, if I am not ruthless, I should very well forget about a career in politics, which I intended to get into, and my managerial career also may not get too far. I mean - I do great in functional roles, but can I actually function as a line manager if I am too attached to people I manage.
That's been my problem. In my world, everyone is a friend. That worked brilliantly when I did not work with them, but not so well when I did. It is an interesting way to think. A very Anglo-Saxon thing, I thought, this commercial ruthlessness. But then I can remember San Tzu's dictum, which I quoted in this blog, a leader can not be too attached to his people, otherwise he will make mistakes in trying protect them. My problem, surely.
So, do I want to develop Ruthlessness? Don't know whether it can be developed, first of all. Besides, it is so much against my fundamental character - a touchy-feely nerdy one - that I probably have to live without it. I know I shall be happy without that quality, and it is indeed a good quality to have if one has to lead a team of not-so-equal men.
This gives me another important answer. I remember Tulika, who I consider to be my mentor-at-large, told me once that while I am a brilliant leader in a small team, my leadership style isn't very effective for a larger group. Was she meaning this? Perhaps. Besides, I also know that I expect people who work with me to work like me - with the same level of commitment and energy, and lose patience when they don't. But then I don't force my hand, I wait too long and i keep giving people benefit of doubt. I guess all this adds up - I am not ruthless, too forgiving and hence can't manage a bigger team.
Does this mean that I should now give up and accept mediocrity as destiny? Don't they say that nice guys always come last? I would have thought so - I have never been very competitive in life - and gave up too many opportunities to excel. And, this will obviously rule out my chances of success in entrepreneurial ventures, sadly.
But then, I think I have a few substitute qualities. Like focus. Like commitment. The fine line between ruthlessness and commitment is the objective. Do at any cost is ruthless, but commitment is Do, but don't cross the limits of fairness. That will suit me well - as I am always trying to be fair, some times comically so. I would think I have to give up careers like politics or business, but I can surely do well in a profession, or in cause-related work.
Which indeed means giving up the hopes of living in a manor, going around in a limo or marrying Drew Barrymore [that's off limits already]. But that's fine with me - I am no longer twenty and have a bit of perspective in life to know that going there will take away many things dear to me. Like this time to write this pointless post. The sheer joy of walking on Croydon roads. Things like that. I wanted to be rich because I thought being rich gives you choice, something I wanted to have. But, suddenly, I know choice sits in your head, not in your bank account. I am suddenly feeling free - to do anything I wish to do.
And, that makes me start this new 100 days.
Friday, January 16, 2009
I was hoping, like everyone else, that there will be something magical on 31st December night. 2008 was a year like never before: Shall we say it was the best of the times and the worst of the times? Or, more appropriately, it was the season of darkness and the spring of hope, perhaps. A recession, worst in many years, was setting in. But, at the same time, a historical American election took place, wiping out the disappointments and disconnects of last eight years, giving people, across the world, something to cheer about. And, this, apart from the usual flipping of the calendar, will bring a fresh start, I was hoping, along with the usual New Year confectionary.
Recessions are painful, but one can not avoid them. Recessions, as the economists see it, are instrumental in moving forward our economic system and sustaining the cycle of innovation and progress. Joseph Schumpeter talked about creative destruction as the principal driver 0f efficiency and improvement in capitalism: We have one at hand right now.
And, the great hope for Joe Blogs, Joe the Plumber, and myself is that they are successful in the effort.
However, I think, so far, we got a very wrong approach to managing the recession. Great hopes were pinned on government activism, fiscal tools funded by taxpayers' money, and one hoped that such activism will allow us to escape the chaos of the Great Depression of 1929, or even a protracted deep recession of the 1980s. I thought this would turn out to be an unfinished crisis - something tamed up fiscal intervention, leading to a greater chaos coming out of an American loan default years later.
Sometimes, things go bad faster than one would imagine, and this year is turning out to be one. We have already had a significant amount of fiscal stimulus and it has solved nothing. The US government was inconsistent and half-hearted, wasting huge amounts of public funds on failed projects and sending out wrong signals. And, more disturbingly, the incoming administration of Barack Obama seems to be committed on a similar fiscal stimulus plan.
This is bad news. Because this reflects the lack of will to fight the recession and sort it out soon. Schumpeter said it and America preached it to everyone else in the world: Structural adjustment was the word they dished out to every other country in the world, including Japan. The advise was - it was painful, but necessary. But when it came to America, no one seems to have the appetite for the fight.
What am I trying to say? When recession sets in, the appropriate policy response is to try to contain the social impact of it and providing support to people who are losing jobs and income. It is important to provide loan guarantees to small firms, so that credit can flow. However, it is also important to recognize that the structural adjustment is necessary, and the economic pain must be bourne. There is no point giving in to inefficient bosses, bloated unions, and greedy investors. Mistakes must be paid for, by them. Throwing money to keep things as it is, is a colossal mistake and will only worsen the situation.
Think about it: what a colossal mistake bailing out Bank of America is. Those guys went out and bought Merill Lynch. Now, they must pay for their mistake. This is crazy that they eat the lunch and taxpayers pick up the bill - and, in turn, everyone in the world, whose retirement money is saved in US Treasury Bonds [because their governments chose to do so]. There are better uses of that money, and these can be spent in building a social safety net, which will allow us to take on future recessions as they come. Instead, we are bankrupting ourselves - spending our money on some greedy banker and his fat-cat speculators.
There is indeed a lesson to be learnt from Japan's experience. Businessweek published a timely article on Japan's Lost decade, which makes this point. And, as things unfold, and the article points out how fast things are happening now, we must brace ourselves for economic pain [yes, let Barclay's fail!] but social resolve. That's the lesson of recession, one which we refuse to learn.
First, the list. The five chosen here were Titan, Kingfisher Airlines, Big Bazaar, Airtel and LG Electronics. I thought this is very appropriate listing, as I could not think of any other consumer brand as good as the ones above. There are a few corporate brands indeed - like Tata or Reliance - but that was not what this feature is for. One could argue that ICICI Bank is a consumer brand and could feature in this list. And, may be some of the car brands too - has Maruti 800 died? - as can be Tata Tea, though they have been considered in a separate section of the same issue. But, overall, a very appropriate list.
Let's start with Kingfisher Airlines first. It was immensely interesting reading about their marketing philosophy. Indeed, their approach sounds uncannily familiar to Richard Branson's - they set out to create a Hospitality in the Air brand. May be, Branson's is slightly different - entertainment in the air. But, those, who travelled with Kingfisher Airlines, know how they package themselves. Apart from this hospitality angle, to which I shall return in a minute, Kingfisher also flies to more locations and have a greater choice of flights than anyone. This is possibly why they have removed the Deccan brand altogether, and repackaged those flights.
At a personal level, though, I must say that I have shifted my loyalties from Kingfisher to Jet recently. I was absolutely floored by the new aircraft, personal entertainment units even in the economy class, Vijay Mallya's charming presentation, its food etc. It had a wow effect on me, apart from the fact that I could use the Kingmiles on Emirates, which I fly often. The availability of the flights had an effect too - I fly Kolkata-Hyderabad sector often, and somehow Jet Airways does not have a direct flight there.
However, I have noticed a marked decline in Kingfisher service off late. I thought they were getting too busy and their staff appeared confused and stressed when the flights were full. On several occasions, I found the cabin crew fairly rude and uncommunicative - they were doing all they were supposed to do, but one could tell that the pressures of quick expansion was telling on Kingfisher. At the same time, I noted the service at Jet Airways improved markedly. Despite various public faux pa they committed, their flights were gradually upgraded, leg space improved marginally and more than anything, their staff appeared better trained, courteous and helpful.
In my mind, Kingfisher Airlines is actually an example of Obsessive Branding Disorder, a title, obviously, I picked up from Lucas Conley's highly readable book. In all this talk about experience, they were out to create an illusion of experience. I hope that it is only very fast expansion and not many trained staff created the problem, and they will be able to focus on fundamentals soon. But, for the moment, I could not buy all the smart marketingspeak which Kingfisher executives handed out.
In contrast, I shall cite Big Bazaar as a great example of consistent branding. It was great to know that the downmarket, Bazaar, feel of Big Bazaar is intentional, designed to appeal to those Indian consumers who have an instinctive distrust of sleek branding and an yawning for value. By being crowded, noisy and a bit chaotic, Big Bazaar is actually trying to send a message that they are cheap and good value. This, in my mind, is branding at its best - projecting a consistent 'character' as opposed to a temporal 'experience'.
Airtel's branding efforts too project a consistent character, a rather traditional Indian character. Airtel adverts and schemes often are very focused on family, the key unit of Indian thinking. It sells itself sublimely through a series of adverts with the message 'some bonding [connections] are forever'. It typically communicates a 'being with you' message. In one of the most memorable advertising campaigns in India, Hutch employed a loyal dog which followed the little girl everywhere, helped in everything she did.
Airtel's adverts, on similar lines, project people-to-people bonding and project a very distinct 'connection' message. Accompanied by a beautiful tune, it invites to 'Express Yourself'.
But then, the line drops.
As in the penny drops. And, we are back to the experience thing again. The line drops. Some connections are forever, but Airtel connections are only for a minute. Their network is on the breaking point under pressure from expansion - success from their branding efforts - which undermine their branding itself. And, again, I would think it is good to have Airtel on that list, but this is taking the purely communications angle into account, and not what would be a complete perspective of branding.
Contrast that, in this case, with Titan. Watches were precious gifts in India, something you received only on special occasions. We Hindus have a ceremony of threading - somewhat akin to Bar Mitzvah - and I was thrilled to get my first watch on that day. This was a mechanical watch made by a Public Sector unit called HMT - watches that worked but was never very fashionable. HMT was what everyone used. Titan changed all that - in a few short years. In fact, I was surprised to discover today that HMT still exists. Titan - more than advertising - built the brand through presence and touchpoints. Suddenly, the fashionable watch stores - the world of Titan - sprang up in the cities, where you could browse and buy fashionable watches. So, my sister started getting watches for passing exams and when valentine day became fashionable, my valentine got watches. That changed the whole ethos of watch wearing in India and in a sense, of personal fashion.
Titan obviously captured that trend and since then, diversified into Jewellery and Eyewear. In fact, I mention eyewear as against Spectacles because of the transformation Titan Eye+ is bringing in India. They are riding the trend of personal fashion and targeted the boring, often unwanted spectacle as an element of personal statement.
In summary, Titan again, represents a character as against experience. Permanent as against temporal - something rooted in the heart of urban India and in line with the times. It is surely not a product versus service thing, as I shall certainly consign LG, whose TVs are fashionable but do not last and whose fridges will need couple of months in the workshop in their lifetime, to the experiential branding.
I do think Indian consumers want value, and such value can be delivered through creating characters through branding - a consistent expectation, buying and consuming experience. The more we focus on experience, our attention gets to the pre-buying experience, and less to what lingers on. I am sure when we judge brands and rank them, it will be good idea to look at them with the complete package, not just in terms of who had the slickest presentation.
A friend has recently forwarded me a quote from Lord Macaulay's speech in the British Parliament on 2nd February 1835. I reproduce the...
Introduction : The Business of Gift Giving Business gift giving has always been common and contentious at the same time. Business gifts are ...
My previous post, o n whether Hinduism is the only thing to unite India , to which my answer was negative, was based on the idea that Indi...
The title of this post is in quotes because someone told me this. This was some days ago, over lunch in London, something that I stayed wi...
We knew this anecdotally: That Engineering graduates can not find a job in India. Now, we have some numbers: AICTE says that 60% of the 80...
It is common to hear - Globalization is not working for everyone! The Right says it, and believes that closed societies with open economie...
India is in the middle of a great transformation, driven by the aspirations of its young people. This transformation is apparent to an...
Today's election results in five Indian states may or may not be noticed by the world media, but they are, in a way, no less significa...
Or, I could have said - why I can't read business books. At least, not anymore. This may seem inconsequential, but it is not for m...
When facts change.. I enthused when Labour Party chose Jeremy Corbyn as its leader. It promised an escape from politics as usual, a b...
How To Live
- Theodore Roosevelt
We shall not cease from exploration
And the end of all our exploring
Will be to arrive where we started
And know the place for the first time.
- T S Eliot
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.