Business Mandate (August 2020)

VOL. XXXXVI NO.2

AUGUST 2020

DRIVING A HIGH PERFORMANCE CULTURE Mr Tiger Tyagarajan Genpact MY LEADERSHIP JOURNEY & KEY LESSONS Mr Anand Kripalu Diageo India THE EFFICIENCY MATRIX Mr Ritish Andre Mumbai Dabbawala ETHICS & MANAGERIAL EXCELLENCE Mr Sanjay Kirloskar Kirloskar Brothers Ltd., YOUR BRAND IS YOUR BEST BUSINESS CONTINUITY PLAN Mr Suresh Narayanan Nestle MARKETING FOR THE FUTURE Mr CK Ranganathan, CavinKare Mr David Appasamy, Social Beat WOMEN IN POLITICS A panel discussion THRIVING IN THE TIME OF POST COVID-19 Dr Rekha Shetty Farstar Distribution Network Ltd

CONTENTS

Leadership Series Talk Mr Tiger Tyagarajan Genpact

Leadership Series Talk Mr Anand Kripalu Diageo India

Leadership Series Talk Mr Ritish Andre Mumbai Dabbawala

Panel Discussion with Rising Stars of Indian Politics

Leadership Series Talk Mr Suresh Narayanan Nestle

MMA AGM Keynote Address Mr Sanjay Kirloskar

A Feature Dr. Rekha Shetty

Fireside Chat Mr CK Ranganathan, CavinKare Mr David Appasamy, Social Beat Gallery

Credits: Infographic vector created by naulicreative ‐ www.freepik.com

EDITOR Gp Capt R Vijayakumar (Retd), VSM EDITORIAL SUPPORT Gp Capt Dr R Venkataraman (Retd) LAYOUT EXECUTIVE D Rajaram

MADRAS MANAGEMENT ASSOCIATION Management Center, New No.240 Pathari Road ﴾Off Anna Salai﴿, Chennai 600 006 Ph:044‐2829 1133 Email:mma@mmachennai.org | mandate@mmachennai.org www.facebook.com/mmachennai

Business Mandate fountainhead of excellence

EDITORIAL

Gp Capt R Vijayakumar (Retd), VSM

Getting up, again!

T

he Tamil month of Aadi is one devoted to worship.

relationship as well as the criticality of it in a collaborative and

For many, this is a period dedicated to devotion and

interdependent World. In this context the key note address

festivities; it is also synonymous with the highly

by Mr Sanjay Kirloskar during the MMA AGM on the theme

discounted shopping mania. However, the pandemic has

“Ethics and Managerial Excellence” is relevant and

seriously affected businesses despite the government doing a

published in this issue. I also strongly recommend you to

good job of containing it. In fact, an incipient revival of the

watch the recorded presentation by Mr Satyanarayan

economy after the lockdown seems to have stalled; merely

Ramamurthy, Partner, KPMG Singapore on the theme

‘unlocking’ is not enough, as demand looks too weak to rise

“Leadership Lessons from Working in a Partnership

without government help. Although markets stand at the

Environment” to know more about collaboration and

threshold of a revival, it is imperative to enable public

partnership in an organizations.

spending so that there is a freer flow of money in the economy.

It is the synergy of economics and human values such as confidence or trust that are needed to overcome this crisis.

The fact is that today the most crucial trait of mutual trust is absent, we can see this in international relations between Nations and Leaders. Mr Stephen M R Covey in his book on “The Speed of Trust: The one thing that Changes Everything” has emphasised about the importance of trust in our

Even when the economy was booming, we struggled to deal with the problem of women dropping out of the workplace. While inclusion and diversity are at risk in the current crisis, they remain critical for business recovery, resilience and re‐imagination.

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Business Mandate fountainhead of excellence

When we ask our members how they are doing, they feel more assured. The MMA Leaders Speak platform delivers real­ time insights from outstanding thought leaders around the world, helping you gain answers to some of the most important questions and take the right actions. Resilience, for both individuals and organizations, is an essential attribute as we move through this crisis and into the future. Do watch without fail the top­class Events/Masterclass programmes brought to you by MMA and enrich yourself—click to view the schedule.

unique event for women—and everyone who works alongside them.

The National Education Policy (NEP) 2020 is an important step forward in India’s transition from deprivation to development. Almost no one can complain with the objective and time bound future plans set out in the document.

I can only wish that this had happened when we were Students. The proposed reforms look impressive, but an education policy alone cannot guarantee a revolutionary change in education. In higher education, it is laudable that

With women making their presence felt across every field,

the model has changed. But the issue of unemployment is yet

why not a permanent commission in the Indian armed forces?

to addressed. While it is good that candidates will leave with

It is welcome that women officers can now make a tangible

a certificate or a diploma, it is hoped that they won’t be

difference. It is high time the Women’s Reservation Bill is

branded as failure in a society like ours which places high

steered through the House of Parliament, so that gender

emphasis on success. It is imperative that what we make of it

equality does prevail in every walk of life in India. From the

depends entirely on us. MMA implements a number of digital

freedom movement to the present time, the role of women in

initiatives: the important one being the launch of a 24­week

politics and public life has been a see­saw. Even after 70 years

online program, called Masterclass, which will include the

of Independence, women empowerment in politics has been

participation of outstanding industry leaders with a fresh

an exception rather than a rule. In this context, MMA

perspective on “Operational Excellence Towards

organized a virtual seminar on the theme “Women in

Business Excellence”—click to view.

Politics” to deliberate on this and more issues. The outcome of this discussion is published in this issue with an embedded video of the programme. Please read on and watch the video.

MMA is also organising an exclusive event for women this

As we celebrate our Independence this month, we pray that the hallowed memories of our martyrs will continue to guide and inspire us. We must learn from our martyrs and vow to protect our freedoms and our rights from aggression.

Independence Day. Even when the economy was booming, we

In a way, I am delighted that the spearhead of Indian Air Force

struggled to deal with the problem of women dropping out of

—the “Game Changer” fighter—has finally arrived! The

the workplace. While inclusion and diversity are at risk in the

delivery of Rafale fighters will enhance the country’s ability

current crisis, they remain critical for business recovery,

to deter external aggression. We wish them Happy Landings

resilience and re­imagination. Women’s return will depend

and we wish that they touch the sky with glory—Sky is not the

partly on whether the upheaval has changed the menfolk. After

limit! Proud of you, Air Warriors! Privileged to be an Air

all what they want? A little adjustment and they can manage.

Veteran!

Do login to watch live “Marching Ahead: The Next Normal” at 06.00 pm on Thursday, 13th August 2020, for more insights, more stories and honest conversations. It is a

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As always we would be happy to hear your views, comments and suggestions.

Business Mandate fountainhead of excellence

It is great to have a culture but it is only half the battle, says Mr Tiger Tyagarajan, CEO, Genpact, as he explores the priorities, values and beliefs that underpin successful organizational cultures.

The MMA‐KAS talk under ‘Leaders Speak Series by Pond’s Veterans’ on the theme, ‘What is high performance culture and how do you drive it as a leader in these times of rapid change?’ was delivered by Mr Tiger Tyagarajan, CEO, Genpact, USA on 13 June 2020 through webinar. Mr V Balaraman, Past President, MMA and former MD, Pond’s India Ltd delivered the opening remarks. The following includes excerpts from his talk and the subsequent Q&A session.

I

joined Pond’s sales team at

technical tests, the bumble bee cannot

may be to make the life of people very

Mumbai office as a fresher from

fly due to the shape and weight of its

enjoyable every day. That is purpose at

IIM. Within four hours of joining,

body in relation to its total wing span.

a very high level and it can sustain the

I was handed the responsibility of taking

The bumble bee doesn’t know this, so it

company for decades. Then we move on

care of sales in the entire state of

goes ahead and flies anyway. Inspired

to why the employee comes to work each

Madhya Pradesh. In the next two hours,

by this, we created a culture of courage

day. What is the strategy that allows you

I had to interact with my field sales

and not having the fear of fear. If we

to win? What are the reasons that make

personnel over phone. I did not know

were to jump off a hill with a parachute,

you believe that the choices made are

anything about sales, market or the

what we should not do is to look down,

being lived every day? Culture is the

industry that I was in. All that the

but to look up and jump; for, if we look

atmosphere around us. Purpose and

management saw in a young manager

down, the human mind will start fearing

strategy are immersed in culture.

like me was the hunger to learn. That

the jump.

What is culture?

was the culture at Pond’s and I owe all my management skills to the seven years I worked there.

The company, Genpact, where I now work started with one idea in 1998.

We thought we could a do a lot of things from India to serve the world because we have great people in India. It was why the company Genpact was started.

Learning is the basis for this entire company, and we created a learning organisation.

The Bumble Bee paradox According to aeronautics and aero­

Strategy for breakfast?

According

to

Peter

It is the way people in an Drucker,

organisation behave, interact and take

‘Culture eats strategy for breakfast!’ It

decisions when no one is watching.

means that no matter how strong your

What the employees of Mumbai Taj

strategy is, it cannot be effectively

Hotel did during 26/11 terror strike is

implemented if all the people in the

legendary: saving the lives of guests

organisation do not share the firm’s

risking their own. When Ratan Tata

values. We tweaked it as, ‘Culture eats

talks about it, he says that the

strategy for breakfast, lunch and

employees’ actions were not because of

dinner!!’ An organisation’s strategy or

training, but because they thought that

broader purpose cannot take off, unless

that is what they do every day. Customer

it aligns with its culture.

always comes first.

Purpose refers to why we exist as a business. For instance, our objective

Culture must: •

Be aspirational, authentic and AUGUST

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Business Mandate fountainhead of excellence

•

aligned to company’s strategy

questions. They appreciate cognitive

Diversity

and differentiators;

diversity. They lead with humility and

Diversity fosters innovation. It helps

Be relevant to both clients and

are inclusive. They reward collaboration.

avoid ‘group think.’ Currently, we focus

They encourage dissent and debate.

on gender diversity, trying to move

Curiosity leads to three things:

towards a 50:50 gender ratio in the

employees; •

Work at both a micro­ and macro­level;

•

Be memorable;

• Learning agility

organisation.

•

Have universal application.

• Collaboration

programmes like Listening Sessions on

• Diversity

racial discrimination and the Returning

of behaviours that directly connects

We learn when we surround

Moms programme. We provide day­care

with strategy. The FOUR words that

ourselves with people of diverse

for

define Culture in Genpact are:

backgrounds

and

Philippines and the EU. We have

collaborate with them. Learning agility

‘Women in Genpact Network (WINGS)’

and hunger will become prized traits in

to cultivate leadership skills and share

• Incisive

this new world, rather than just

best practices. We get different ideas

• Integrity

‘experience.’ Each year, we recruit

and build better solutions when we have

people from the around the world. We

diversity in the company.

A culture framework outlines a set

• Curiosity • Courage

Why is curiosity important?

We all know that the half­life of various skills has been dramatically shrinking over the last few decades in the VUCA environment. One of the biggest dangers that organisations face is the pretension that they have arrived, conquered the

and

cultures,

321

We

children

have

across

various

India,

test for values, curiosity, learning agility and hunger. We then give the recruits

Living the culture

jobs of which they have no clue, and yet,

It is great to have a culture but it is only

we find a tremendous success rate. That

half the battle. The other half is: Can you

is the power of hunger for learning and

live it and execute it every day, so that

curiosity. Of course, we protect them

people can see it? The next part is to

when they fail and allow them to grow.

spread it across the organisation. There

world, and that they are the best.

is only one way for it—relentless Collaboration

communication on a daily, weekly,

companies face the beginning of their

In the corporate life, we play a soccer

monthly, quarterly and annual basis. It

end. Leaders who declare that they have

match, not run a race. Therefore, we

is our culture that helped us grow from

reached their pinnacle do not grow

believe that teams are important, not

two people in 1998 to 95,000 people in

further and stop adding value. Ego is the

individual winners. We reward people

2020, growing at 12% per year in terms

single biggest danger for individuals and

who share ideas and solutions widely.

of headcount. We lose about 20% a year

organisations. The most important

We reward people who wear the

on attrition. We drive a hard

question that people should grapple

‘company hat’ rather than those who

performance culture. One third of the

with is—WHY?

focus on narrow goals. We invest in

company is new every year.

History teaches us that such

Millions saw the apple fall, but Newton asked WHY. In a culture that fosters curiosity, leaders are comfortable saying, ‘I don’t know.’ They ask 10

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tools, processes and policies that enable the ‘team of teams’ behaviour. We tear

Storytelling

down walls, stamp out silos and nip

The other tool to propagate culture is

office politics.

storytelling. We convert everything into

Business Mandate fountainhead of excellence

stories and make them human with emotions. People remember stories. In my first month at Pond’s, there was a veteran sales supervisor by name Kapil Sawhney. I went to him and told him, “Sir. You know so much. I am your boss, but I want to learn from you.” It surprised him but he put his arms around me and said, “You are like my son. I will teach you.” He was 55 and I was just 25, and he taught me. We communicated that story to so many people. I use this story even now to teach young leaders on how to learn from their senior subordinates.

Unlearn We need to create ecosystems that help

ment, Promotions, Rewards, Long­term

allow people to balance these priorities

incentives and Leadership Development

using culture, you end up in a good spot.

Programs—all of them imbibe our

Culture is too important to be left only to

culture.

one team or function. We deliberate on

employees to constantly unlearn and

various issues in our company; nothing is

relearn every day and leverage new

Both values and performance count

personal. If I find in a group of nineteen

technology for learning. In Genpact,

High performers who do not align with

or twenty people lean to a position, I

95,000 people work from home today.

company values hurt the company in the

deliberately take the opposite position so

How do we know the mood of everyone

long­term despite their short­term

to avoid ‘group think.’ We need to:

who works from home? In the last 90

results. They do not fit the company.

days, we have developed a chatbot

Those who share the values and perform

discussions;

application which has an AI machine

are those who move upward. People

values lie at the heart of our

learning algorithm. The chatbot asks

who share the values but are low in

conversations.

questions and we get a set of 10,000

performance deserve a second chance.

answers every day. By the end of the

It is easy to take a call on those who

week, we cover the entire workforce and

neither perform nor share the values.

I know the mood of the people; I will know even when a group of 100 in Philippines

feel

depressed.

This

technology was not available earlier.

•

•

•

in all our Hire­to­Retire process. Our

money in the short­term; but in the long­

Hiring screens, Performance manage­

term, you will make money. When you

all

levels

of

the

Visibly call out good examples and

flag

the

wrong

behaviours.

•

Break down silos; push for ‘boundary­less’ behaviours.

end of this article). In the end, keep the customer in focus. You may lose some

and

organisation.

that helps leaders to balance competing

We embed our culture framework

Cultures

Engage, debate with and learn from

Culture becomes the ‘north star’ priorities as given in the info box (at the

Spend time on talent related

•

Take decisive action when there is a values­mismatch; integrity is non­negotiable.

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Business Mandate fountainhead of excellence

M

MA organised a talk by Mr

many categories starting from talcum

fly. We took a cycle rickshaw from the

Anand Kripalu, MD &

powder—the good old Pond’s—to oral

station to the hotel or from the hotel to

CEO of Diageo India and

care, detergents, chocolates and now

the distributor shop. It did not matter

Member, Diageo Global Executive on

alcohol. My progress has seen me

how senior we were.

18th July 2020 for the benefit of MMA

moving up on the scale of indulgence

members

management

with every move that I make. I'm not

Pond’s goes to HLL

professionals. In the speech, Mr Anand

sure if I will go any higher than where I

During this time, Pond’s was taken over

traced his corporate career spread over

already am!

by Hindustan Lever and I ended up

and

moving to marketing in Mumbai and it

35 years across some of the leading corporate houses and shared the

Connecting the dots

was culturally so different. I struggled

challenges he faced and FIVE inspiring

Steve Jobs said in his 2005 Stanford

initially to adapt but finally I settled in

lessons from his overall experience.

commencement speech that it is hard to

and prospered. I learned the

connect the dots of your career looking

fundamentals of marketing and brand

forward. So many people try and plan

management and also how to influence

their careers meticulously and it is really

multifunctional teams in a large

hard. But it is easy to connect the dots

company that don't report to you.

Excerpts from the talk: Middle‐class & FMCG all the way I started life in a very happy and a very middle­class army home. My father, who is 94 now, was commissioned in 1947 during the Indian independence.

That

middle­class

mentality

of your career as you look back to see

After five years, much against my

the things that made, shaped and helped

wishes, I went back to sales and learned

you to become what you are. So that's

how to influence and motivate much

what I'm really going to do.

larger teams that don't report to me

From IIM campus, I joined Ponds

directly, yet you need to influence

India in sales. For most of my seven

indirectly. Thereafter, I came to head

years at Ponds, I worked in the dusty

Market Research, a job completely

markets of India from the south region

outside my comfort zone. I then went on

to north region. Irrespective of my

to become the Head of Marketing for

designation, the first call to the last call

detergents and learned how to manage

was with my frontline salesperson. That

a portfolio of brands rather than just

taught me empathy for people in the

one brand. Finally, I became the Head

front. They are the ones who bring home

of Sales for detergents to lead one of the

the bacon and sweat it out in the

largest teams in the company. I learned

sweltering Indian summer. It also

from my mistakes, particularly the

I spent broadly a third of my career

taught me how to lead and motivate

importance of strong communication

in sales, a third in marketing and the

people who are far more experienced

when one leads big teams.

rest in general management: 22 years

—often old enough to be my father.

—working hard with integrity and conscience, doing more with less, not wasting and trying always for a better deal—have always shaped my thinking and behavior through business and life.

That middle­class upbringing is very important to the way I operate. Post my education, I have been working for over three and a half decades now, all in FMCG consumer goods.

in Pond’s/HLL/Unilever, eight in Cadbury and now about six and a half in Diageo. I have been involved with 16

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Pond’s, in many ways, reinforced my middle­class values. We travelled by train even though we were entitled to

Mission East Africa My first experience with general management was when I was asked to

Business Mandate fountainhead of excellence

go as MD for Unilever East Africa covering Kenya, Tanzania, Uganda and a few smaller countries around them.

That business had not grown for a decade and had lost money every year.

The Regional President called me and said, “Anand, this is our last attempt.

Either you turn this business around or Unilever will withdraw from East Africa.” That was no pressure, indeed!!

I landed in Nairobi and learned that Indians were not liked in East Africa because the locals thought that the Indians had exploited them for over a century and taken over all their

that business—things like focusing on a

businesses. They questioned my

few key brands, driving lower unit price

A lot of advice in Africa used to

posting, “Why do we need an Indian to

packs like the one rupee shampoo of

come from people in Europe. I was

come here and tell us what to do?”

Pond’s and a comprehensive program

able to give examples from India

to lower cost because that was the

that was relevant in terms of cost

nature of the income profile there.

and efficiency. We unveiled our

I am OK. You’re not OK I also soon realized that everyone was a

plan to the larger company and

victim in that business and they happily

Indian gyan and a tearful farewell

created a scorecard to ensure that

externalised every problem. The

A lot of advice in Africa used to come

we measured whatever we wanted

economy was bad, Indian companies

from people in Europe. I was able to

to get done.

were non­compliant and the regional

give examples from India that was

Unilever office was not giving them any

relevant in terms of cost and efficiency.

freedom to operate.

We unveiled our plan to the larger

Essentially, it was all about the ‘I

company and created a scorecard to

am okay; You are not okay’ mindset. I

ensure that we measured whatever we

spent three months using the lessons

wanted to get done.

Importantly, by then, people had started believing in themselves and delivering.

That was my legacy. My lasting memory in Africa was, when I left, many of the people who rejected me when I arrived wept at my farewell.

from Pond’s, travelling across the length

The business started turning

and breadth of the country that I was

around and at the end of the year, it was

Candy crush

overseeing, went to people's homes and

delivering double­digit growth and

I landed in Mumbai from Nairobi to join

talked. I soon covered more ground than

actually

This

Cadbury as the Managing Director for

many of the locals and bit by bit, I

sustained for at least a decade though I

the Indian subcontinent comprising

earned their respect. We put together a

chose to leave Unilever at that time to

India, Pakistan, Bangladesh and Sri

very simple ambition and strategy for

return to India to join Cadbury.

Lanka. The company was just coming

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turned

profitable.

Business Mandate fountainhead of excellence

two parts: Kraft Foods and Mondelez.

Many of the world's great

a clear strategy of focus again. We killed

companies were born during

a third of the brands in my first year. In

slowdowns and recessions.

fact, we killed more brands in that

GE, IBM, General Motors,

business than we gave birth to! We

Disney and even Microsoft

halved the number of SKUs and halved

were companies born during

A spirited new start

the number of innovations. Growth

Diageo is the world's largest premium

started improving.

spirits company with iconic brands; like

tough times.

That’s when I decided to pack my bags and seek new pastures, joining Diageo in due course.

We cut promotional costs and put

Johnnie Walker, for instance. Diageo

out of the worm infestation crisis in

it back into strategic brand investment,

was awarded Britain's most admired

2003­ 2004. People forget good news

like marketing, which would grow the

company. In July 2013, Diageo took

but bad news is rarely forgotten. The

category. With 65% market share, the

control of United Spirits (USL).

team at that time did a great job of

category would not grow with

I was approached to lead the

resolving the crisis through changes in

promotions but only through relevance

integrated USL and Diageo India

packaging

Amitabh

of the category. As things started

business, which was a 100% owned

Bachchan on board as the brand

improving slowly, but surely, the

subsidiary. Did I want to join the alcohol

ambassador for Cadbury.

naysayers in the business started coming

industry in India? At first, I got cold feet.

on board.

Alcohol is a category that people love to

and

getting

The business was back to delivering close to 10% growth in 2005, which was the historic rate and everyone believed it was great. Cadbury was after all a mature brand in a mature category and had been around for 60 years.

The conundrum: Less is more We focused on just one or two innovations per year that could make a big impact and made sure that those were fully funded. Big innovations that

The Mantra: 20% till 2010

came out of that time were Cadbury

At the time I joined in 2005, the

Dairy Milk Silk, a premium variant of

economy was beginning to open up. I

Cadbury Dairy Milk, and Oreo biscuits.

felt we could grow much faster, but most

It really confirmed the philosophy

others in the company did not. Along

that less is more and more is actually

with a few people who were more open­

less. Over eight years, the business grew

minded and who believed that this was

by a CAGR of ~25% in top line and

possible, we put together a plan to grow

~25% in bottom line. Our factories ran

at 20% per annum CAGR for the next

out of capacity. What if I had to do this

five years, against 10% in the past

again? I would have aimed for 30%

decade. So, 20% till 2010 was the

growth. But who was to know?

mantra. People thought we were stupid.

We underpinned that ambition with

enjoy in the evening but don't want to be associated with in the day. On the positive side, Diageo was a great company and spirits was a category with very low per capita consumption. It was ripe for growth. Attitudes and barriers to alcohol were also breaking down. So it seemed like one of the most exciting opportunities in the larger consumer goods space.

At one level, I did not want to get tainted after 30 years of having worked in multinational companies, but then, at that stage of my career, I also had the opportunity to lead the industry, change its reputation and perhaps create a legacy for people after me. So I took the

Cadbury was taken over by Kraft

plunge and the challenge. It has been a

Foods. They then split the company into

much bigger challenge than what I AUGUST

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Business Mandate fountainhead of excellence

expected because we had to deal with a host of legacy issues. While dealing with all that, we also started setting out our plan for the business. We put our mind behind a handful of the 150 brands that we owned. We supported that with sharper positioning in advertising and put an innovation structure in place to bring some excitement to a category where there had been very little excitement at all.

We changed the sales organization from push to pull and told them that in a ‘media­dark’ market, the retail store is your television screen. We not only needed to generate demand there, but also build brand equity inside the retail store.

We transformed our cost base and halved the number of factories from 94 to under 50. We invested in ethical marketing of alcohol. We killed brands called ‘diet mate’ as we thought it was unethical marketing of alcohol. We invested in road safety and in building corporate citizenship Inclusion and diversity We tried to transform the organization in terms of its structure, its ways of working and culture. We halved the number of white­collar employees and enhanced the focus on inclusion and

was not even one woman in the

would be impossible to clean this

management committee. That is the

industry and that one cannot be

kind of change we have tried to drive in

compliant in alcohol and that if we tried,

this business.

the business would close. I said, “Let us

diversity. Today in my leadership team,

Today, it's easier for me to attract

comply and see.” We are still living to tell

four out of eight are women—in an

talent and most importantly, we have

the tale. Fortunately, all these happened

alcohol business! Almost a third of our

changed the way business is done in this

as we were transforming the growth and

top 50 are women. When I joined, there

industry. Many people told me that it

profitability of the business.

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Business Mandate fountainhead of excellence

My 5 Lessons from Three Innings

W

hat are the lessons we can draw from these three experiences of mine at leading businesses? One was a turnaround situation in Africa; the second was about accelerating growth of a company that was already doing well and the third was about a transformation of a business where I needed to transform everything about that business. I have learned five very important lessons which I will share with you: 1) Setting the right ambition Ambition is the starting point of anything. It determines effort and resource. If you have an ambition that your son or daughter must pass the IIT entrance exam, you will put in effort, arrange coaching class and do a lot of planning. If you aim lower, then you will do things very differently.

When you intend to grow a business by 10%, there are certain things that you do, but if have an ambition to grow at 20 or 25%, you do totally different things. It is one of the most important decisions that a leader must make to set up the ambition for that business. But why is it so difficult? Ambition is the marriage of science and a dream. If you set the ambition too high, you set yourself up for failure. If you set it too low, as I did with Cadbury, then you leave money on the table. That is why, it is so important to set the right goal and vision for your business.

lockdowns or strikes. They'll blame everything but not themselves.

Even the most intelligent people do this. Many of the world's great companies were born during slowdowns and recessions. GE, IBM, General Motors, Disney and even Microsoft were companies born during tough times. When I joined Cadbury, I asked my team to map company performance with GDP. The correlation was negative.

Analysis showed that two‐thirds of the drivers of growth were internal and just one‐third was external. So the message really is: forget your circle of influence or your circle of concern but focus on your circle of control. What can you do to change your business and never be a victim? Take charge.

4) Be future-ready In a fast‐changing environment like ours, I am reminded of the saying that God has given us two eyes—one to look at today and one to look at tomorrow.

Consumers are changing faster than marketers. Consumers want more. Things are changing by the hour, day and month. You need people who are agile. If people don't adapt and change their skills and capabilities, they will fall behind. You have to create an organization that has a culture and a mindset that is not just ready for today but for tomorrow. It is much tougher, but if you don't do that, you will become the dinosaur of your industry.

2) The power of focus

5) Win the right way

Indians love to multitask. I have heard this so often from colleagues and multinational companies. We like to become jack of all trades and often masters of none. To reach international level in any sport, you need mastery and mastery requires focus. How many people can you think of who are at the international level performing across multiple disciplines of sports? That's really hard because you need focus and intensity to succeed. It's very hard to find time to do more than one and master it. It is a simple truth, but easily forgotten.

I was brought up with strong values. Whether it was my upbringing in my family or the way we were nurtured in Pond’s, Unilever and thereafter, I have been trained to do the right things. It is possible even in India. Somebody has to put their neck on the line and say, “I'm going to do it right and I will not compromise. I am happy to fight anyone in a fair fight as long as we all play by the same rules.”

The most important resource in a company is management time.

What you make your people do is the most important decision you make. If you get them to do too many things, you squander their resources. So you have to choose your battles in life, doing the few big things that are much more impactful than doing many small things. The latter keeps you busy, but the former transforms your business.

Often people will tell you that the cost of compliance is very high.

I have had people telling me that for a small amount, we can fix problems. But then what is the cost of non‐compliance?

3) We make growth happen

How many examples are there of companies that have failed due to poor governance like Enron? Life is not about just building a company; it is about building an institution; and institutions are built on values and conscience, not on numbers. There is no choice today other than to be a good corporate citizen, do the right thing and live in harmony with the environment and the community that we serve.

In business, when things go well, your teams immediately appropriate that and say that it happened because of them. The moment they don't do well, they blame the economy, monsoon,

So to summarize, my Five Lessons are: ﴾1﴿ Set the right ambition; ﴾2﴿ Have the power of focus; ﴾3﴿ We make growth happen; ﴾4﴿ Be future ready; and ﴾5﴿ Win the right way.

AUGUST

2020

21

M

umbai Dabbawala as an

transactions a day, collecting lunch

Dabbawala visually scans the unique

organisation

well

boxes from customers’ homes in the

code on the lunch­boxes.

known for its exemplary

morning between 9 and 10.30 am,

The Dabbawalas carry their own

performance categorised by very low

delivering them for lunch between 12

lunch. Each of them earns about Rs 20K

defects in its services. Forbes Magazine

and 1 pm, collecting the empty boxes

to 22K per month as their salary,

reported that its defect level was 1 per

between 1.30 and 2.30 pm, and

charging the customers between Rs 600

million

delivering them back home between

and Rs 1200 depending on factors such

4.30 and 6pm.

as the commuting distance and size of

transactions,

is

which

is

exceedingly better than the Six Sigma prescribed 3.45 DPMO (defects per

The team works daily like a well­

the lunch box. The Dabbawalas also

million opportunities). This makes

oiled high precision machine, making

provide free food for hungry children,

Mumbai Dabbawala arguably the best

no mistake in the process. The entire

contributing their little bit towards a

performing organisation in the world in

world awed at their high performance

hunger­free Mumbai. During Kerala

terms of quality.

culture. To top it all, 80% of the

floods, each employee chipped in Rs 20;

Each employee of the organisation

employees are illiterate; they do not use

they raised Rs. 1 lakh and donated it for

is commonly known as a Dabbawala

paper, technology or the Internet, nor

the flood victims. No wonder their

(one who carries lunch box). While the

do they consume plastics or any fuel for

tagline is: “It is only by helping each

Dabbawalas did what they did, and in

transport. They use a combination of

other, we can achieve our goal.”

spite of several case studies on them,

bicycle, Mumbai’s local trains and

the key “X” factor on why they perform

hand­carts for the entire process,

Accolades all the way

so well remained unknown, including

spanning 60 to 70 kms of Mumbai,

Their achievements in carrying out a

to the Dabbawalas, until Dr Pradeep B

thereby making their entire operation

supposedly simple job of delivering

Deshpande, CEO, Six Sigma and

eco­friendly. As Mumbai’s local trains

lunch­boxes, with zero investment are

Advanced Controls Inc. USA (SAC),

through

mind­boggling, to say the least.

unravelled the secret, in January 2019.

commute are heavily crowded, it is

Sample these: Their precision rate

Learning about this X Factor and

almost impossible for people to carry

has humbled Six­Sigma. In their 128

adopting it in our day to day life and

with them in the train their lunch boxes.

year history, there has been no

work can replicate the same level of

Therefore, they take the services of

resignation or a strike, as each employee

efficiency and effectiveness and can

Dabbawalas.

is a stakeholder in the venture. There is

which

most

employees

accelerate the success rate amidst

no retirement age­limit and even 85 Decoding their code

year old people work with them. When

While modern supply chain uses

Prince Charles visited India in

Precision human machines

barcodes and RFIDs, Dabbawalas

November of 2004, he spent 20 minutes

Mr Ritesh Andre, Coordinator of

follow a simple alpha­numeric code that

with the Dabbawalas, at their place and

Mumbai Dabbawala, traced their

has evolved over time. Written in oil

time. A British High Commission

growth from a humble beginning in

paint, the code contains details like the

Official said the idea was to show the

1890, when a Parsi banker asked his

place of origin and destination,

Prince something that was unique to

great grandfather, Shri Mahadu Havaji

originating and destination railway

Mumbai. Of the three guests from India

Bachhe, to deliver his lunch box. Today,

stations and the building to which the

invited to London for Prince Charles’

they have 5000 dabbawalas and 2 lakh

boxes are to be delivered. While digital

second marriage, two were Dabbawalas.

customers. They carry out 4 lakh

scanners read the barcodes, the

challenging situations.

Business Mandate fountainhead of excellence

or Path of Service, Gyan Yoga or the Path of Dynamism and Righteousness and Raja Yoga or the Path of Discipline.

When he studied the Dabbawalas, he observed that most of them belong to a community called “Varkari” from the vicinity of Pune, whose ancestors served the army of Chhatrapati Shivaji. Their deity is Ragumayi Vittala of Pandharpur.

Every year, they undertake a pilgrimage of over 200 Kms by walking to worship Vittala. They say that every customer is “Vittala” himself and hence they cannot afford to commit any errors while serving their deity. This belief is one of the main reasons why their ‘internal They have got ISO certification,

Cracking their X factor

excellence’ is very high.

though the employees do not know what

Mr Raja Atmamayan, Vice­President,

ISO stands for. All that they know are:

Ascent Transformation Ventures, spoke

Elements of internal excellence

Customer is God; Time is Money; Giving

on the theme: How Mumbai Dabba­

Internal Excellence is synonymous with

Food is a great service (Annadan is

walas Achieve Exemplary Performance?

terms like Emotional Excellence,

Mahadan) and Error is Horror. They

He explained the painstaking research

Emotional

have a collection in their office of over

done by Dr. Pradeep B. Deshpande, who

Actualization, etc. Some of the

7000 certificates for merit, quality and

was one of the pioneers in bringing Six

characteristics of employees in a high

astonishing records, awarded to them

Sigma to India. Dr Deshpande

Internal Excellence environment are:

by different bodies around the world.

concluded that Six Sigma will fail over a

They regularly feature in the Top 50 influential people that impact Mumbai.

•

More

Self

responsibility

and

ownership

period of time, unless an organisation raises its Internal Excellence.

Intelligence,

•

More voluntariness

•

Higher focus and dedication

•

Seeing bigger picture of things

•

Honest,

Several news channels have carried their

He studied the Dabbawalas; the

story. Their pageantry was part of the

Kumbh Mela festival that is known for

2010 Republic Day parade show in New

the largest gathering in the world,

Delhi. In 2005, Sir Richard Branson,

organised in an orderly and amazing

Chairman of Virgin Airways, blown

manner; the Indian Army; ISRO and

motivating and striving for

away by the feats of Dabbawalas

other organisations, and realised that a

inclusive wellbeing

travelled with them in a Mumbai local

combination of yoga plays a part in

train and delivered lunch boxes to

raising Internal Excellence: Bhakthi

employees of Virgin Airways in

Yoga or the Path of Love, Karma Yoga

Churchgate, Mumbai.

24

AUGUST

2020

sincere,

self­

disciplined and devoted •

•

Helping,

caring,

sharing,

Staying positive most of the occasions

These characteristics, in turn lead to: •

Less stress and anxiety

Business Mandate fountainhead of excellence

•

Less fear and worries

Dabbawalas, on whom the research was

•

Less grudge and anger

carried out, measured 90% and above

•

Emotional balance.

on internal excellence. This is the X­

Auditing internal excellence Dr Deshpande scientifically audited Internal Excellence using: •

EQ

Radio

developed

by

Massachusetts Institute of Technology and funded by several bodies, including the US Air Force, Google etc.

•

“Bio Well” working on the

Dr. Konstantin Korotkov.

A

sample

population

of

Enhancing

positivity

of

managers and supervisors •

Offering consistent positive

factor behind the phenomenal per­

attitude training programs to all the

formance of ‘Mumbai Dabbawala,’ said

employees

Dr Deshpande. He also recommended

All the participants who had tuned

some of the ways in which individuals

into the webinar left the session with the

and organisations can raise their

same sentiments echoed by the British

internal excellence.

High Commission official who co­

Ways to improve internal excellence •

Introducing

meditation

(generally yoga) as a practice

principle of Gas Discharge Visualization, developed by

•

•

Reorienting from a “Fear

ordinated the visit of Prince Charles to India and his meet with the Dabbawalas in 2004 and had then remarked, “"I don’t think any other city anywhere in India or

Driven” organisation culture

even the World has such a system (as the

to a “Trust Driven” culture

Mumbai Dabbawala)."

AUGUST

2020

25

Business Mandate fountainhead of excellence

I

feel truly privileged to address all

Singh, who was a member of the same

degree in Mechanical Engineering, like

of you as MMA is considered one

body. Without going into those details,

my grandfather, father, uncles and

of AIMA’s best Local Management

all I will say is that my grandfather was

siblings before me, I joined the family

Associations. I had agreed to deliver the

thrilled when Mr. PV Narsimha Rao and

business. Like them, sweeping the

speech in person in Chennai, but things

Dr. Manmohan Singh started the

factory shop­floor was my first job after

being the way they are, I am compelled

process of economic liberalisation. At

getting an American degree, followed by

to address you online. I have decided to

that time, he told us, his grandchildren,

running almost every type of machine

speak on “Ethics”, as I think ‘ethics’

that he wished he were 60 years

the company owned. We were expected

forms a part of Managerial Excellence.

younger. What I would also mention is

to produce more than the norms set by

that after this speech, the then

the Industrial Engineering department

MMA speech and a storm

Government rejected every licence the

of the company. More than anything

MMA has stuck in my mind since March

Kirloskar group had applied for and my

else, I got an education on what it feels

1981, when your Association conferred

grandfather, for a few years at least, was

like, to be on the other side of the table.

its Business Leadership Award upon my

persona non­grata in certain parts of the

Grandfather, Mr. SL Kirloskar. At that

A few years later, again like for all

national capital. This is why I remember

time, he told the members that he was

members of my family, I was given the

MMA, more than anything else.

responsibility to set up a project and

glad that the occasion presented him an

I would say that I am blessed to

soon ran into Indian bureaucracy, as the

have been born in a family like this,

project needed approval from what was

because we too could speak our minds

called the MRTP Commission. That was

to our elders. As I grew up, I also learnt

when I learnt that the Kirloskar Group,

the life my forefathers had lived. Part of

unlike a few others, had never opposed

the family was intensely capitalist, but

any project promoted by other industrial

Educated at MIT in the 1920s and

few people outside Maharashtra know

groups to enter businesses it was in; that

having grown up and started working in

that the company I now run also

my grandfather always held that

pre­Independent India, he was a firm

published three magazines from

competition would make one better.

believer in Free Enterprise. During his

the1920s. They were known to be

This attitude actually made us ready to

speech, he proposed a 14­point

extremely progressive for their times,

face global competition when India

programme for successfully meeting the

and possibly would be considered that

opened up in 1991 and our exports went

challenges of the 1980s, which included

even today, with articles promoting

up to 28% of our revenues soon after

doing

Planning

education of the girl child and widow re­

liberalisation. It helped us to become a

Commission.My grandfather was known

marriage on one hand and writing

true MNC within 10 years. Step by step

for calling a spade a spade, and as you

against blind superstition on the other.

I learnt the family traditions.

could well imagine, all hell then broke

Many people credit these magazines for

loose. There were responses in

modernising Maharashtrian society.

opportunity to express his views on what he saw as problems of grave concern, and on our economy which was degenerating, even after three decades of Independence.

away

with

the

Times change but stick to values My father passed away as I turned 30

newspapers by Dr. DT Lakdawala, then Dy. Chairman of the Planning

US degree and a sweeping task

years of age. One evening, a few years

Commission, as well as Dr. Tarlok

Returning from the US after getting my

earlier, he had asked my brother and me AUGUST

2020

27

Business Mandate fountainhead of excellence

a question; He mentioned that until

work done by many individuals and

Some more have fled the country and

then, our businesses had grown on the

companies that have contributed to the

are resisting return. While they are

quality and reliability of our products

healthcare effort. Unfortunately, ICU

there, dirty linen about their business

and our all­India marketing network.

bed and ventilator allocation have also

practices and the enabling environment

But times were changing and now there

raised questions about the ethics of

is being washed in public as foreign

were other expectations which clashed

many hospitals around the country.

courts consider their applications.

with family values. He asked both of us

Even the odd medical research firm has

We live in an inter­connected and

whether we should join the bandwagon

been found to be fudging data at a time

globalised world, with information

to grow quickly, or should we be known

the world is desperate for answers to the

available at one’s fingertips. This was

as a group that stopped growing because

pandemic. Quite often, we fail to realise

the case before Covid, and we will still

we did not change our principles with

that behaviour during a crisis can make

be inter­connected but possibly less

the times.

or mar the public perception of

globalised after Covid. But with the way

individuals and businesses forever.

technology has moved since Covid, one

Since then, my father’s query has always been at the back of my mind. As

Wherever it happens, a crisis like

can safely assume that information will

the company grew over time, many an

this exposes the faults and frauds of a

just reach faster. One only needs to

opportunity was missed or not grabbed.

business. A jolt to the system rattles

Google an individual or a business to get

And at the end, when things turned

skeletons in the cupboard and dodgy

more knowledge on that individual or

impossible, we gladly moved out from

deals and practices become hard to

business. Forget spreading like wildfire,

large business opportunities when we

cover up. The last couple of decades

now it will go viral. Each and every one

realised that other than good products

have seen multiple booms and busts,

of these scandals have tarnished the

and service, we could not deliver what

and unfortunately, business scandals

reputation of Indian businesses around

was being demanded. After that, the

have become ever more frequent and

the world. Imagine meeting a new

company changed its profile as a

bigger.

customer in a foreign land and hoping

business, and the part that just 10 years

he or she isn’t aware of our business

earlier had contributed to over 75% of

Scams galore

practices back home. Going forward,

our turnover, now contributes around

In the past few years, India has seen a

how much respect will outsiders,

4%. Yes, turnover stagnated, dipped

spate of corporate frauds, mainly

including those of Indian descent, have

with attendant hardships, and then rose

involving poor business practices and

for Indian business practices? To my

again to levels of 10 years ago, but we

bank loans. The unravelling of the

mind, if we desire to grow and be

are a stronger company as a result. As

Indian economy and the resulting

respected around the world, our

the company continues to be No. 1 in its

pressure on banks to collect overdue

businesses desperately need to re­

business, I certainly have no regrets.

loans have uncovered a lot more muck.

establish our credentials for ethical

Many icons and superstars of Indian

behaviour and practices.

Crisis—The litmus test of character

business, including those given awards

The Covid crisis has put attention back

by respected institutions have been

on business ethics. Gouging of medical

disgraced, and some have even ended up

supplies and food has tainted the good

getting arrested in India and overseas.

28

AUGUST

2020

Forget what people will think when we go out of the country to do business or to invest; think of what foreigners will

Business Mandate fountainhead of excellence

need to consider when they want to

huge sums of money cannot be accepted

replaced with a new, more intrusive one.

come into India for business. As we all

without an assurance of enforceability,

This has followed “Diesel­Gate” where

know, we need trillions of dollars to

and more importantly, the trust in the

Volkswagen was caught fudging

build our infrastructure to compete in

other party’s character, business

emission data, and ended up giving

the modern world.

practices and culture. A company’s

German businesses a bad name, a

wealth depends on stakeholders’ trust,

reputation that had been built up by two

Exit China, but why not India?

in the legality of its business, veracity of

generations of Germans after WW2.

As all of us are aware, there is also an

its accounts, reliability of its products,

Just like Indira Gandhi had famously

urge on the part of Japanese and

and fairness of its dealings. Just imagine

remarked about corruption, this too it is

Western firms to move out of China so

the number of people in India who have

a global phenomenon.

that all their eggs are not in one basket.

lost their lives’ savings because of these

We are concerned why people are not

Corporate scandals do not affect the

scandals. Companies that demonstrate

rushing in to invest in India but are

involved parties alone. They tar

high standards of ethics tend to have

going to other countries around us.

everybody, and governments have to

more stable businesses and deliver

With such a reputation, what incentive

respond to the cries for doing something

greater shareholder value over time.

about it. The most famous case of a

do foreigners have to invest here despite Corruption—A global syndrome The point I would also make is that it is Trust, business ethics and rule of

not just Indian Business which is giving

law are essential ingredients of a

its country a bad name. There are frauds

vibrant

Long‐term

around the world; Japanese companies

contracts involving huge sums of

have been caught for giving false

money cannot be accepted without

material quality assurance certificates

an assurance of enforceability, and

and French companies for bribery.

more importantly, the trust in the

Imagine the loss of reputation these

other party’s character, business

companies and countries face, leaving

market.

practices and culture.

our

attractive

market

aside the fact that world over, buyers and

the

opportunities that we can offer? People

strict regulatory response to a business scam is the Sarbanes­Oxley Act in America that followed the Enron scandal. It substantially increased the scrutiny of accounting practices and the responsibility of boards for listed companies.

The

unintended

consequence of this regulation was that companies began to avoid listing on stock exchanges to save compliance efforts and costs.

would be wary of dealing with such

No better substitute for ethics

companies.

In India, the Satyam scandal is the

Wirecard, a German electronics

equivalent of the Enron affair. It

payment multinational, has been caught

involved a company fabricating accounts

fudging revenues for a blue­chip status.

and supporting documents. The fallout

The result is that the reputation of

was that the new Companies Act in 2013

German financial sector and regulators

made auditors and independent

Trust, business ethics and rule of

has been tainted. The German

directors liable for the management’s

law are essential ingredients of a vibrant

government is axing the existing

errors and omissions. SEBI too

market. Long­term contracts involving

financial regulator, who would be

amended the listing conditions. Now,

do understand the environment that they will have to operate in, before they invest. When will we improve our environment and our governance?

AUGUST

2020

29

Business Mandate fountainhead of excellence

auditors have to be changed every few

Myths on ethics

there was a whistle­blower who took a

years and internal audits have been

However, one’s stand on ethics should

stand to expose the rot at the top.

made more intense and intrusive.

not depend on where one sits. People with advantage expect integrity from

Practise, rather than preach

others

own

No number of rules and regulations can

“pragmatism”. Many see ethics as trading

stop greed; only each one of us as an

—one rate for buying and another for

individual who understands, and is true

selling. Another popular belief is that

to his or her responsibilities, can. It

one can have only as much ethics as one

requires special strength of character

can afford. Then, there are people who

and conviction to adhere to business

consider ethics as the crutch of the weak

ethics, especially in the policy and

While stricter regulation has largely

and the unimaginative. Many see

regulation sensitive markets. Where

improved corporate governance, it

winning at all costs as the only ethic.

companies jostle for access to land,

has

box‐ticking

They argue that winning cleanses

utilities, licences, permissions and for

approach to ethics. Regulations are

everything and public adulation is the

protection from inspection and taxation,

expensive substitutes for ethics, and as

only measure of ethics. Today, it seems

practicing ethics can get very tough.

While stricter regulation has largely improved corporate governance, it has introduced a box­ticking approach to ethics. Regulations are expensive substitutes for ethics, and as the compliance burden grows, the focus

introduced

a

the compliance burden grows, the focus shifts to avoiding getting caught rather than doing the right thing in the first place.

but

justify

their

that quite a few people had been valued

Companies routinely face a choice

for what they seemed to be, not for what

between ingratiating themselves with

they really were.

powerful people or getting pushed to the

And it is not like there was a

periphery of the market. Executives from

shortage of regulations when all our

top to bottom are expected to bring

frauds came to light. To my mind, these

increasing revenues, and the pressure to

shifts to avoiding getting caught rather

company frauds have taken place thanks

win business obstructs the desire to do

than doing the right thing in the first

to an enabling environment, with so­

the right thing. Therefore, leaders who

place. Litigation is becoming the way to

called independent directors turning a

are serious about building strong and

prove integrity, by both the government

blind eye, and a fear of taking a stand

long­lasting organisations must make

and the companies. Moreover, the fear

against wrongdoers. All company

ethics integral to business strategy. To

of retrospective blame is deterring

directors are meant to act as trustees,

my mind, a well­documented Code of

business initiative and innovation.

looking out for the best interest of the

Ethics must be adopted by organisations

organisation, not those of the Chairman

to ensure that our colleagues understand

and MD, or for that matter, the

how to behave and what has to be done

promoters of the company. Quite often

in various situations they could

I am reminded of what my late father­

encounter in the course of business.

The public sector is a great example of regulation killing entrepreneurship.

However, the responsibility of creating and maintaining a reputation for ethics is on management. It is easier to bear the cost of ethics than the cost of regulation. As can be seen, industries suffer when there is over­regulation.

30

AUGUST

2020

in­law would say, “The cemeteries are full of indispensable people.” Because many times people stay quiet so as not to lose perks. Fortunately, in one case,

Justice delayed is justice denied I have always marvelled at the American justice system; especially yesterday,

Business Mandate fountainhead of excellence

when a majority of Supreme Court

times whether the order would be

Justices nominated by the current

reversed if they made that list. When

President’s

told

one reads newspapers, one comes across

We have seen similar cases of

President Trump, that no one, including

cases of Americans catching Europeans

financial conditions sustained by an

him, was above the law. There, Justice

doing naughty things across the world;

is dispensed quickly.

I am not saying Americans are saints,

political

party,

If you remember the fraud that was Enron, once the case was made in the court, I think sentences were passed within 18 months. Despite being a friend of the then President George W. Bush, Kenneth Lay the Chairman of Enron, was found guilty of conspiracy and fraud. We have seen similar cases of financial conditions sustained by an institutionalized,

systemic

and

creatively planned accounting fraud in India. One wonders how long our system will take to decide the cases before it, because Justice delayed, is Justice denied. And lakhs of crores have been lost by individual citizens and the banks. When Justice is delayed, a fraud enabling environment is created, as individuals realise that there is no one

institutionalized,

systemic

and

creatively planned accounting fraud in India. One wonders how long

either.

our system will take to decide the cases before it, because Justice

Covid: The boon and bane to nature

delayed, is Justice denied.

The Covid crisis has also highlighted environmental issues. Lockdowns have brought great relief to Mother Nature by shutting down human activities. Air

technologies and making consumption

and water quality have improved all

less resource intensive.

over the planet, especially in the big

The Covid crisis has put a spotlight

cities. Carbon emission dropped as coal­

on

based electricity production reduced,

businesses. Plastic has made a roaring

planes were grounded, and vehicles

come back during the pandemic, as

were parked. Water quality improved as

contamination aversion has taken

fishing and shipping became minimal.

priority

Animals and birds returned as humans

sensitivities. The crash in oil prices has

were locked in. Clean air improved

also made plastics a lot cheaper. Plastic

human health and reduced routine

consumption has once again become

sickness.

rampant in single­use applications. The

However,

it

seems

the

environmental

demand

over

for

practices

of

environmental

disposable

masks,

environment’s brief recovery was

protective suits, packaging etc., is

celebrated only by those who could

booming. Businesses have settled for the

Corrupt nations vs. Corrupt

afford lockdowns. Lockdowns were not

cheapest and easiest material in the rush

companies

all good for Mother Nature. In Brazil,

to meet this demand.

Every year, I never fail to be amused by

deforestation of the Amazon area was

While the environment has been

a list made by a German NGO called

accelerated while the world focused on

cleaned up by lockdowns and travel

Transparency International of the most

the pandemic. In Africa, poachers had a

bans, air and water quality is de­

corrupt countries in the world; amused,

free run as governments deployed their

teriorating again as economic activity

because while they do tell us which

resources on enforcing lockdowns.

resumes. Businesses must be conscious

countries are corrupt, they never make

Nevertheless, the deep cleansing of the

of

a list of countries whose companies

environment

environment in order to avoid health

corrupt others. I have wondered many

strengthened the case for using clean

or nowhere to go to.

during

lockdown

their

responsibility

to

calamities in the future.

AUGUST

2020

31

the

Business Mandate fountainhead of excellence

As the pandemic continues, one seriously needs to consider how the world will be, once it is over. What will be the new normal?

As the pandemic continues, one seriously needs to consider how the world will be, once it is over. What will be the new normal? Will we be going back to office every single day of work?

On a humorous note, how many spouses will believe we are going to be actually working? How will work from home impact people in the transport, restaurant and real estate sectors? How much of the planned infrastructure will really be required? Will people again fill up malls, stadia and theatres, or will they develop a taste for online shopping, sports

and

pandemic, there would be a shift to

in the morning to birdsong rather than

minimalism as a lifestyle and the

the sound of traffic.

competition to claim status through

I believe every generation should leave the world a better place for our next

What will be the New Normal?

virtual

have returned; it is beautiful to wake up

streaming

entertainment? Will people still travel long distances and across borders for work? There is a lot that is up in the air and we cannot know where everything will settle when this pandemic eventually subsides or is subdued.

generation and we should make all out efforts to support clean technologies once business starts moving again. Now that we have the wherewithal, we must make the right selections to ensure that nature too can recover, rather than trying for easy but short­term monetary gains. Here too, there is an opportunity for a principled or ethical choice to be made.

pomp and possessions will become less severe.

My spectacular role model As managers, each one of us is a role model, not only to our subordinates, but to society at large. People almost worship successful managers and want to imitate them. They tell their children that these are ideals to be emulated.

There are so many examples around us of how people have grown large

In my case, this lockdown has led to

businesses while following their

introspection on the life that I have lived

consciences. Companies like Infosys and

and what to do about the future. It has

Wipro almost immediately come to

shown me what I need to survive and

mind. I have no hesitation in saying that

given me an idea of what real happiness

the role model for me has been Mr.

could mean. Actually, the only thing I

Azim Premji, who grew an edible oil

really miss is being close to my son, who

business into one of India’s largest and

has decided to continue running all our

most admired tech companies. To me,

overseas businesses from London where

what he is doing now is even more

he and his team are based. I must accept

spectacular, to ensure that the next

that my child has grown to become a

generation of our fellow citizens has a

leader in his own right. It has brought

far better future.

home the fact, that my own happiness and health is dependent on that of the

Finally, I agree with the saying that a true measure of one’s worth must

Leave the world a better place

community, and that to become rich in

This brings to my mind the kind of

the face of disease and hunger is of no

world we want to leave for our children.

use; my father would often say, one

So many of my friends have remarked

cannot have a skyscraper in a slum. We

that the skies looked blue again, like

must think in terms of the social whole

they did when we were young and a few

—of what is best for the community, of

So, take care and stay safe. I hope

circulated pictures on WhatsApp of

the common or public good. Each of us

that whenever the country opens up for

clean streams and the Himalayas from

should stop doing what is best only for

travel again, I shall have the privilege of

tens of miles away. Birds also seem to

ourselves. I hope at the end of this

meeting you in Chennai.

32

AUGUST

2020

include all the benefits that others have received from his or her success. Like respect, success, wealth and power are to be earned, and not to be demanded.

Business Mandate fountainhead of excellence

We now have evidence that over the last three decades the real sources of shareholder value have shifted outside the balance sheet. Today, leading businesses across the globe transact and influence value primarily through brands. This is evident from what we see in the context of COVID scenario, in which brand‐led businesses are speaking the language of revival and regaining lost glory while businesses that have banked only on their supply‐side assets are fighting for survival.

At a time when all our assets are tested, will brand be the one to bring us safely to the harbour? In order to shed light on this critical theme, MMA and EQUITOR Value Advisory partnered to create a new series on ‘Brand Value Management’ and to bring the best thought‐leadership in this domain, so we might all navigate out of this crisis safely and create inordinate value. The inaugural session was held through webinar on 23 May 2020 on the theme, ‘Your brand is your best business continuity plan in a crisis.’

Mr A Venkataramani, Managing Director, IP Rings Ltd, as President of MMA, delivered the welcome address and opening remarks. Mr Ramesh Jude Thomas, President and CKO, EQUITOR Value Advisory, delivered a talk on the theme ‘Brand Value Management.’ The Chief Guest of the session, Mr Suresh Narayanan, Chairman & MD, Nestlé India Ltd., delivered the inaugural address. Ms Nappina Sampath, EQUITOR Value Advisory, moderated the Q & A session. Group Captain R Vijayakumar (Retd) VSM, Executive Director of MMA, delivered the vote of thanks.

Excerpts from Mr Suresh Narayanan’s address.

I

do not know if it is a privilege or

China and found its way into different

heart, and it is an organization that I

misfortune for me to face

parts of the world. Lo and behold, we

have tried to serve to the best of my

numerous crises. Whether it was

find ourselves doing all the lockdown

capabilities. It is a very old company set

the Lehman meltdown in 2008 while I

procedures and living a life that is very

up in 1866 by a German immigrant to

was in Singapore, the five years of the

different from what we had dreamt of

Switzerland by the name of Heinrich

Arab Spring in Egypt, Libya and Sudan

and thought in January or February of

Nestlé, but he adapted himself to the

where I worked, or the five years of

this year. So you can see how life can be

context of the French­speaking part of

pretty rigorous work in India at the start

upended by a crisis. But in every crisis,

Switzerland that he came to; Heinrich

of the Maggi crisis that we had to face as

there is also an opportunity as the

became Henri. He was a serial

a company. One thing can be said in

Chinese word for crisis indicates.

entrepreneur who failed in numerous ventures. He had a gas­lighting business

common: A crisis doesn't come with a

I want to share five core messages

calling card. As a crisis creeps in, it falls

and probably five principles that I have

on you and grows on you. But the fact is

learnt in my years of being in the

that the crisis then blows up and creates

consumer goods sector and in

consequences.

responsible positions at the world's

In those days of 19th century,

largest consumer goods company,

Switzerland was surprisingly a poor

Nestlé.

country. They had high infant mortality.

Crisis and opportunity: 2 Sides of a coin

and a paraffin wax business. He tried to make some chemicals. He was a trained pharmacist.

Nestlé being a kind­hearted man told

The pandemic that we face is not a crisis

A company with a noble birth

that we invited. It came. It started in

himself that he must put his knowledge

Nestlé is the example closest to my

to use and save the life of his AUGUST

2020

35

Business Mandate fountainhead of excellence

neighbour's child. He put up a

The portfolio of the company is

global markets because of the American

combination of wheat flour, milk,

such that my successors down the ages

troops who were travelling all across the

vitamins, minerals, sugar and a bit of

can continue to launch brands of Nestlé.

world during the World War II. As a

water, mixed it and gave it to the child

The challenge for Nestlé is not what to

result of the American soldiers’ habit of

who survived.

launch but when to launch, which is a

drinking Nescafe, the world got to drink

different challenge from many other

Nescafe. So Nescafe also began in a

organisations.

crisis.

Have a break: KitKat

Milo: Nestlé’s high

Many of the brands that we have had

Milo again is a brand that was founded

also began with a social purpose. KitKat

in Australia. It came out of a crisis.

was a brand that was introduced to

Australia was having serious issues in

factory workers in the UK in the 19th

terms of children not getting adequate

Century, to provide them with a quick

nutrition. The government requested

energy product between their breaks.

Nestlé as a company to do something

They needed a chocolate or some form

about it. Thus, almost 80 years ago,

of energy. So a two­finger and a three­

Milo, our energy drink, was born.

His mother asked him to give it to the neighbourhood children who also starved. He gave it to those children.

They all survived. The head of the village told him, “Look Henri, you will not be able to survive if you don't make this into a business.” So reluctantly, Henri Nestlé started the business and called it ‘farine lactée’, which is French for wheat flour with milk. He put the name Nestlé to it, to have his personal guarantee to the food quality and safety

finger KitKat were designed, fitting into

Thus, every crisis has given rise to

the back pocket of the overalls of a

an opportunity, enabling people to see

factory worker. The tagline is still being

Henri Nestlé’s quest began with a

virtue in that opportunity and create

used: Have a break; Have a KitKat. It

social cause of saving the life of a child.

brands; such brands last.

began with a factory break. But now, we

The product that he produced still

have so many other breaks in life.

of the product. This set off a journey 154 years ago.

exists. Some of you might have given it

KitKat is a 90­year­old brand; Nescafe is 80 plus. Milo is 80 plus. In

to your children and it is called Cerelac.

The coffee crisis & Nescafe

India, we are 108 years old. Longevity

It was the first product that the

Our brand Nescafe was created as a

comes when you have strong genes, firm

company put up 154 years ago.

result of a crisis. In Brazil, there was

foundations and principles of nurturing

Since then, the company has grown

excess coffee crop and the Brazilian

that you do not ever violate in all the

through a lot of its own organic brands

government did not know what to do

history that you go through.

and through acquisitions. Today, we tip

with this coffee. They requested Nestlé

the scales at over $90 Bn in sales. We

to do something about it, because they

are the largest consumer goods

were a food company. Nestlé put its

company in the world represented in

scientists to work and in a couple of

about 200 countries. It employs

months, they were able to crack the first

300,000 people, and what is more, we

prototype of what became instant

nurture 2000 global and regional

coffee. That instant coffee was Nescafe.

brands.

36

Nescafe went on to dominate the

AUGUST

2020

5 Key principles: The 5Cs I look at the FIVE Principles that helped shape the company, and I call them the 5Cs. Connect Connect across the value chain. Why were we able to bring Maggi from the

Business Mandate fountainhead of excellence

ICU? It was a brand that was dead for four to five months (following the allegations of excess lead in Maggi samples) and then it came back. Within two months, it became the market leader once again and we haven't looked back.

Today, in the pandemic, it is the most sought­after brand because it is a quick form of having a snack or assuaging hunger. The reason why it happened is because of the ecosystem that the brand has. Maggi is a brand that is upwards of Rs.2000 crores in terms of value. Maggi depends on about 400,000 wheat farmers, whose produce is necessary for making Maggi. We have a couple of thousand spice farmers and another couple of thousand suppliers.

We have about 1800 distributors. We have four and a half million outlets.

Maggi, in fact, started the food retailing revolution in this country. It was not Domino’s, KFC or McDonald's.

In the early 80s when Maggi came, it was being made in small outlets outside cinema theatres, bus stations and railway stations and inside colleges.

They all gave source of living for people.

The ecosystem was much larger. Today,

brand trust and brand love are essentials.

Meghalaya. Everywhere, you can find

in the pandemic, we reach out to that

Maggi has always had happy moments

Maggi and tea, if not anything else. It is

ecosystem.

with people. You all have fond memories

something ubiquitous.

The reason why we were able to resurrect this brand from a difficult

of the brand—whether in school or college or cafeteria or on holidays.

It has come about because of the core principle of connecting across the

situation was because it stood for happy

It is a brand that is available from

value chain with respect, trust and

moments in the lives of our people. So,

Kashmir to Kanyakumari and Dwarka to

transparency. During the Maggi crisis, AUGUST

2020

37

Business Mandate fountainhead of excellence

to them. We help them get permission to start manufacturing. We support them with advance payments and orders. We are privileged to own a brand that is strong. So compliance is a very important part of the brand.

If you are ethical, honest and moral compass is true north, then you have nothing to fear. But when you deal in duplicity, deception and dissonance, your business model will start to shake.

If a model is completely based on a fictitious valuation, you will not be able to stand on your feet.

If your brand is based on connections, compliance and ensuring

one of the pledges that I took, and I

they do? They convert science into

always thank the Lord for having given

nutrition; they use technology to

me the strength to be able not to forsake

leverage nutrition. At this time during

it, was that no job should be cut. Not a

the pandemic, one of the things that I

single employee lost the job during the

am very proud of is that we are reaching

Create

Maggi crisis. That was the only pledge I

out to the government to help educate

We have to create properties around our

had.

food processing industries on safety,

brands and also nurture them. We have

social distancing, hygiene practices and

a property, for example, called ‘Ask

good manufacturing practices.

Nestlé.’ This is one of the biggest

This is not just livelihood. For a person to lose a job is like losing his/her

that it genuinely gives value somewhere to someone, you have every reason to stand and come out of a crisis.

self­respect. I have no business, as a

Our team members take positions

platforms in the country and probably

business entity, to sacrifice the very

at various places to educate. We have a

the only true nutrition site where you

foundations that make my business. So

network of almost 5,000 to 10,000

get information on nutrition.

‘Connect’ is extremely important.

suppliers. Many of them are MSMEs.

Just like fake news, we have fake

One of the principles that I have put Comply

news in nutrition as well. This site is

forward to my team is that we should

today being leveraged for information

Nestlé has global expertise. In the last

not allow even a single MSME to go

by mothers on good nutrition for

20 years, we have spent more than $35

belly­up. I am truly grateful that they

children, on growing habits or

billion in R&D. Every year, we spend

live by it.

uncommon nutrition practices and

about $1.5 billion in R&D across our 31 R&D Centres. We have 4,000 employees who work in the R&D Centres. What do 38

AUGUST

2020

This is the time we have to stand by

recipes. Mothers now seek different

MSMEs because they have stood by us

recipes because they have to keep the

all these years; therefore, we reach out

kids engaged at home and also give

Business Mandate fountainhead of excellence

them nutritious food.

valued, you will find greater value add because of ethical, honest, sincere,

My only advice to you as a senior

1.2 million contacts in a matter of days.

transparent

leader is to first manage yourself.

This took us last year almost seven to

behaviours.

duplicity,

We start managing others by being

eight months. We have www.maggi.in

deception and dissonance, you will lose

confused and incoherent. It doesn't

which is reaching out to consumers who

a lot more. Don't worry about a few

help.

are now cooking at home and who need

thousand that you lose today. You will

different ideas. This is like a helpline,

make many millions tomorrow if you

providing them with hundreds of recipes

are consistent.

We have managed to get more than

—not all related to Maggi—but as a service to a cause.

and But

trustworthy with

Be competitive You are in business to be competitive.

I am very proud, that as a result of

You are in business because an essential

all of this, my core suppliers survive.

dimension differentiates you from

They thrive. I work with 100,000

others. A crisis is the time when you

farmers in Punjab and Haryana. Since

have to ask the question, “Am I

the crisis, every single day, every drop

differentiated or am I just like

of milk has been collected by Nestlé and

everybody else?” If you are like

processed; they are promptly paid.

everybody else, you will divide the cake

Values,

trustworthiness

and

into ten pieces amongst ten people.

your teams. I keep telling my team that my only role is to do two things: (1) Tell them the purpose, and (2) Empower them and get out of the way. If I can do that successfully, I think we will have a successful organization going forward.

So

Connection,

Compliance,

Creation, Consistency and Being Competitive—These are the 5Cs, or the 5 essential principles, a robust set of grand principles which can help to bail you out during a crisis.

principles are the true tests in a crisis.

If you are differentiated, you will

When everything is good, the birds fly;

divide the cake into ten pieces, but you

the parrots look green; the world looks

Compassion

will get six pieces and the four pieces

awesome. When the chips are down, true

My only advice to you as a senior leader

will be divided amongst the other

men and women stand up. It is the time

is to first manage yourself. We start

players. What is the game that you want

when your purpose and values speak.

managing others by being confused and

to play—a competitive one or a fairly

incoherent. It doesn't help. A leader has

average game? It is time to ask those

to be crystal clear. Ask Group Captain

questions. Today, we create content as

Vijayakumar of MMA, an ex­Air force

we are a digital company. We are no

man, as to what a crisis is and what

longer a company based on press and

leadership means when you are in a war.

television. We are a company of

COVID­19 is a war that we are fighting.

Consistency You need to be consistent. You can't suddenly become from a zero to hero, or you should not decimate yourself from a hero to zero through behaviours that are seen to be completely and totally opportunistic. This is not the time for opportunistic brands. This is the time for compassionate brands. You will make your money and profits. The value chain will carry on. When your brand is

millennials. When I retire, the average age will fall by five years, because there are much younger people in the company. They come up with new ideas and new ways of doing things.

This is the time for you to empower

The 6th C that I would add to 5Cs is compassion. Be compassionate. This is the time to give, not take. The more you give, the more you will get. That is what all our religions have told us. And that is what I hope all of you also follow.

AUGUST

2020

39

Business Mandate fountainhead of excellence

Madras Management Association (MMA) in collaboration with Konrad­Adenauer­ Stiftung (KAS) presented a panel discussion on the theme, “Women in Politics” through webinar on 18 June 2020. ORF and NGPL were the event partners. The distinguished speakers on the panel were: • Ms Kavitha D Chitturi, Joint Managing Director, The KCP Limited • Mr Peter Rimmele, Resident Representative to India of KAS • Ms Kushbhu Sundar, Spokesperson, Indian National Congress • Ms Nupur Sharma, National Spokesperson, Bharatiya Janata Party • Ms Rehana Ameer, Elected Member of Common Council, City of London Corporation • Ms Lakshmy Ramakrishnan, Actor, Film­Maker and Activist

AUGUST

2020

41

Business Mandate fountainhead of excellence

G

roup Captain R Vijayakumar, Executive Director, MMA introduced all the speakers.

Ms Kavitha Chitturi delivered the welcome address. Mr Peter Rimmele of KAS delivered the introductory remarks, in which he spoke about the rise of women in politics in Germany and Europe and the challenges they face. He emphasised that the society has a strong responsibility to support women in politics.

Ms

Lakshmy

Ramakrishnan,

moderated the panel discussion. She eloquently summed up women power: “When women lead, the virus loses,” drawing reference to a recent article that detailed out how women leaders from Germany to Kerala have delivered efficient, effective and empathetic responses to the pandemic. “The reasons for their stellar show are easy to comprehend,” she said. “Women are natural care givers, open to expert opinions and team players.”

Ms Kushbu Sundar of Congress said that a series of cases filed by people in 2005, to vilify her for an opinion she expressed, provoked her to join politics.

She said she single­handedly fought the cases. After the Supreme Court ruled in her favour, she joined the DMK party.

She wondered if a person like her with a successful record in film industry and having a solid platform could be rattled by political parties, then what will be the plight of lesser mortals. She decided to 42

AUGUST

2020

raise her voice for women by joining politics.

She praised the role of late DMK leader Mr Karunanidhi in mentoring her. She did not regret leaving DMK later on, to join the Congress party. She said that women politicians have to be

Women are natural care givers, open to expert opinions and team players.

— Ms Lakshmy Ramakrishnan

courageous and need the support system from their families. Education, according to her, is not a bar. “Do not

ledged that the late BJP leader Sushma

give more than two terms to any

Swaraj inspired her for her people skills

politician,” she suggested and batted for

and memory. “To be in politics, one has

more youngsters in politics and 50%

to have a good education and make

reservation for women in parliament, to

oneself known,” Nupur said. She

promote gender equality.

pleaded for domain experts in

Ms Nupur Sharma of BJP said she was 23 when she joined politics. “It was my calling,” she said. Finding it tough to

bureaucracy and for restructuring the UPSC system. “Talk less, do more,” was her counsel to aspiring politicians.

balance her lucrative profession and her

Ms Rehana Ameer of London

role in BJP legal cell, she gave up her

Corporation said that though she hails

Supreme Court practice and became a

from a traditional background, her

full­time politician. Nupur acknow­

parents gave her good education and

Business Mandate fountainhead of excellence

plenty of freedom. “Instead of becoming

London recognises individual talents

along.” Summing up, the moderator Ms

somebody, I wanted to do something

and competencies.

Lakshmy Ramakrishnan brought out the

and give back to the society. I wanted to

She suggested that men in power

commonality in all the three panellists

break the stereotype while retaining my

should have adequate data before

—of finding their calling in politics, to

individuality and conviction. That’s how

framing policies concerning women.

be the change agent, the urge to give

I took my plunge into politics in 2016,” she said and added, “Democracy is a way of correcting historic wrongs.” She acknowledged that the ecosystem in

She advised young women, “Be who you are; be accountable to the environment. Take things as they come

back to the society, never to give up and to promote diversity. She concluded that the right time for women to enter politics is—NOW.

AUGUST

2020

43

Business Mandate fountainhead of excellence

DR REKHA SHETTY

Abraham

Maslow

described

self

actualisation as the process of becoming the person God created you to be.

W

greatest journey is the path your take through the empire of your own mind.

So, the body was given to you, a

hat the caterpillar calls

In the din and clamour of your old

boat to sail across the sea of life. It’s the

death, the Master calls a

life, did you ever have time to become

only body you will ever have. Start

butterfly. What the seed

intimate with yourself, let alone with

taking care of it to make it completely

experiences as annihilation, the Master

others? This intimacy and silence will

ship shape. Begin the day by becoming

calls a mighty banyan tree, bringing

help you to be that ideal you God

reacquainted with every muscle, with

forth a million seeds and trees, into the

created you to be. Self­knowledge in the

every breath. Fill your mind with

future.

first and most important gift of the

elevated thoughts. With kindness and

Does the raindrop know that it has

lockdown. Thoreau needed to go away

love.

the potential to become a rainbow! Do

to Walden Pond and live there for

Now let’s move on to business. You

you know what your true potential is?

months on this inward journey. You can

need to re­engineer your business to suit

This is the time and place to find out

just be still and listen to your inner self,

the new reality. Many futurists have

who your actualized Self can be?

which you have ignored for so long. The

seen the far reaching changes that the

44

AUGUST

2020

Business Mandate fountainhead of excellence

virtual and digital world will bring.

has started. People have started working

Alvin Toffler in ‘Future Shock’ and

from homes. The virus has hastened this

‘Third Wave,’ in the 70s spoke about the

shift by decades. Many companies are

Electronic cottage. The lock downs have

finding that turning a room in their

no more than hastened the new far

homes into a digital hub is more

reaching changes that were put into

effective than commuting to a distant

motion by the worldwide web. The

work place. In large cities, people spend

spread of the Corona Virus has

an average of 1 ½ hours, from dwellings

accelerated the process. What Linda

22.5kms away, to reach their place of

Goodman calls the thunderbolt path of

work. Once the cost of communications

Accelerated Karma. The spread of the

is far less expensive than gas, the

virus itself is a manifestation of the

financial mathematics will make

speed of globalization. What touches a

telecommuting

single person, touches the global stock

Patients using telemedicine will wonder

markets. When New York, sneezes the

why they ever exposed themselves to all

world markets catch a cold. When a

that mass infection in hospitals.

more

profitable.

butterfly flutters its turquoise wings in

If there are offices in the future,

the rain forests of the Amazon, there is

they are likely to be smaller hubs in

a hurricane in Osaka. Thoughts travel

communities. Zoom has given us a new

faster than the imagination can

way of being together. Outsourcing

conceive. Revolutions sparked on

taught DELL that computers can be

Facebook can spread like the virus itself.

produced by people in the low­cost

In the past, they have overturned

countries. All they needed to do was

dictators in the blink of an eye. Today

assemble and brand them... they often

they can work even faster. So why can’t

outsourced even that. Uber and Ola

we use this time and space to spread

stepped into the business of taxis and

elevating ideas about service about self.

made them almost obsolete. Coffee Day

About love and caring. Something this

almost replaced other brands of coffee.

sad world needs.

But what a price they paid! My dad used

Coming back to the electronic

to tell me the story of Subbanna Shetty

cottage, in the 70s, Future Shock and

whose horse drawn victorias were

The Third Wave foresaw the return of

replaced by automobiles in the roaring

industry to homes. The industrial

20s. This process of change through

revolution dragged people, unwilling

changing technologies has always been

victims from their homes, to be

happening. Let’s ride the tidal wave. In

sacrificed on the altar of technology.

the world of the Internet, what matters

Today, the process to reverse this trend

is the brilliance of the mind. Neither age

or gender or race or height matter.

The business world has reacted swiftly. Ford factories are making ventilators. Apparel factories in Sri Lanka

are

swiftly

moving

to

manufacturing PPEs. Cyprus has lured tourists by making it super safe and promising to pay for food, hotel stay, and hospitalization, if anyone got the disease. Women are spending more on eye make­up, with the use of masks. We have all heard how the sale of cosmetics goes up during an economic down turn.

It was called the lipstick Index. Now we have the Eyeliner Index.

Right now it has played hell on social

relationships.

It’s

made

everything high tech and low touch. We are treating everyone as though they could be infected. Like some countries treated every one like a terrorist after 9/11. But life goes on. Suspicion will be replaced by faith.

A pizza parlour started using ovens to bake face shields. A fine dining restaurant kept everyone on its pay roll.

But they had new jobs. They retrained to pack, deliver and administer the new process. Five star hotels deliver 5 star meals with a butler at home. Same payroll, new jobs. You will need to re­ engineer your company. Reinvent yourself. Digital education has made 100% literacy a real possibility. Teachers have had to learn new skills like the kids and the parents!

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Business Mandate fountainhead of excellence

Farmers are bringing their fruits

nomadic warriors of Central Asia going

The environment is finally getting a

and vegetables direct to the market and

on to 1820. The Spanish Flu from 1918

chance to heal itself. They say you can see

cutting out the middlemen. A fitness

to 1920 had a similar impact.

the Himalayas from Delhi. The Ganga is

company, total body fitness.com, is

Sure, disasters only make mankind

finally becoming pure. The earth is

digitally helping people to recreate their

stronger and our systems better. They

becoming green. Just think, trees have

bodies. Indian healthcare systems are

will never be the same. They will be

been on earth a 100 million years. Man

getting an opportunity to improve their

better. Sports have recovered and most

has crawled out of the jungles just 5

systems on the run. Government

sports are being played for TV cameras,

million years ago. Look at the arrogance

servants are giving the Pandemic a run

to empty stadiums. Lovers are meeting

that tells him that his needs come before

for its money, and recreating themselves

in restaurants protected by transparent

the needs of all other creatures. Covid­19

in the process. Companies are being

cones. During the Spanish flu, women

allows us to stop that journey outward

forced to innovate and coming up with

wore such cones over their faces, so faces

and come back to the most important

great improvements. Covid­19 is an

instead

were

journey. The journey inwards. Into

opportunity, says Simon Sinek. Mankind

highlighted. “It is not the strongest of the

ourselves, our homes, our families, and

has faced tough situations before. The

species that survives, not the most

our communities. Nothing but good can

Bubonic plague killed one­third of

intelligent that survives. It is the one that

came from this.

Europe’s population. Starting from the

is the most adaptable to change,” says

13th Century, when it started among the

Dr. Rekha Shetty is the Managing Director of

Charles Darwin. So let us adapt.

Farstar Distribution Network Ltd

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of

being

hidden,

Business Mandate fountainhead of excellence

MMA­KAS in association with Social Beat presented a live fireside chat on the theme “Marketing for the Future" on 1 May 2020.

“It is_not the strongest of_the species that_survive, nor the most intelligent, but the one more responsive to change.”

–Charles Darwin.

Highlights of views expressed by

estimate, about 4 crore people may lose

Mr C K Ranganathan during the

jobs temporarily. In this scenario, rather

conversation:

than waiting for the sun shine, it is

Covid­19: It is likely to stay on forever,

better to be proactive, look for new

like other prevalent diseases. Vaccine is

opportunities and at the same time, be

a long­term solution to keep it at bay. If

flexible enough to rebuild your business.

the world comes across a powerful,

The quote by Charles Darwin on the

ovid­19 has paralysed the

miracle sort of medicine, then recovery

need to adapt and that of Andy Grove

nation and many countries too.

can be very fast and it can eliminate

that ‘Bad companies are destroyed by

With the prevailing fear on an

fatalities. Then, Corona will be treated

crisis; good companies survive them and

uncertain future, consumer priorities

like any other flu and people will get

great companies are improved by them,”

have changed drastically. The focus now

used to it. Let us keep our hopes alive on

are worth recalling now.

is on safety, hygiene and good health for

such a medicine. For practical purposes,

survival. The new normal is likely to see

let’s consider a vaccine as 12 to 18

far lower levels of economic activity

months away and learn how to go about

across the spectrum of goods and

in this scenario.

C

services with both companies and consumers resorting to cost saving measures.

Media landscape vs. marketers: Online is most welcome now, but offline is also picking up. TRP ratings of many programmes in TV are going up as

Business sustainability: It depends

people are locked indoors. News

on the business that one is in. For

channels are most sought after because

instance, airline business and hotel

of the people’s mindset and fear.

What will be the marketing like in the

industry are going to be badly hit. For

Consumers are anxious and hungry for

future? Mr David Appasamy, Head­Brand

these businesses to sustain, the current

some good news. Print media is in for a

& Strategy, Social Beat, had a conversation

model needs transformation in the

danger now due to people moving

with Mr C K Ranganathan, Chairman and

short­term. Options have to be looked

towards reading of digital / online /

Managing Director, CavinKare Pvt Ltd.,

at. Many airlines are converting their

mobile content.

known for his visionary entrepreneurial

passenger flights into cargo flights.

leadership and skills. The conversation

Hotels are offering their rooms for

threw up interesting insights and

quarantining Covid infected people.

perspectives that may help marketers prepare for the coming years.

E­Commerce: Once lockdowns are over, e­commerce companies like Amazon and Flipkart will deliver quite

Customer spending will come down

a lot of non­essential goods. E­

and there will be job losses. In my

commerce will double in growth and it AUGUST

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Business Mandate fountainhead of excellence

is here to stay, as mask and social

attend marriages, why would we like to

to be a standby arrangement to have

distancing will become the norm and

buy dresses? Focus will be on needs and

continuity of production.

rule. Small kirana stores where people

not wants. Hygiene and cleanliness

Saloons and spas: Schools, colleges,

can buy quickly will prosper; new ones

products and immunity boosters will do

theatres, malls, saloons and spas will be

will come up and overall, their capacity

very well. Prior to Covid­19, hand

definitely affected. If saloons are able to

will go up by 20% in a year’s time.

sanitizer was a Rs.810 crore market. My

demonstrate hygienic practices, it may

Consumer

and

guesstimate is that it will now become a

restore customer confidence. In our

priorities: Fear now drives consumers

Rs.40,000 crore market. Once mobile

group, we are trying it out, with protocols

to save and be frugal, even if they have

stores open up, smart phones will be in

similar to that of hospitals to have a fool­

money on hand. Only when they see the

great demand from first time users.

proof arrangement. Saloons which

light, they will open up the purse.

For factory operations: We need to

implement such measures will get a

Discretionary and life style items will

look at back­up options. If one factory

phenomenal

take a back seat. For example, if we don’t

gets closed due to Covid spread, there has

competitors.

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AUGUST

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2020

advantage

over

Business Mandate fountainhead of excellence

Agility and adaptability: We had a

to be in place, more small restaurants

line of products prior to Covid. We have

will come up. The rates will go up.

This is the Third World War. The

put many of them in hibernation and are

Real estate: Because of social

difference is that all the countries are

now introducing topical products to suit

distancing, factories and offices that

lined up on one side against an

the present customer needs. For

function in the physical mode will need

instance, beauty products will not sell

more space. So real estate demand may

now. We have an agile team and

even go up. Some will vacate and some

amazing team members who can quickly

will occupy those spaces.

turnaround our facilities to meet the needs of the current situation.

Till 4 March, we did not have any

from the erstwhile specialisation. Many full­time jobs can go to gig economy.

Part­timers

range. On 5 March, we decided to do it

opportunities.

will

find

through testing.

Sensing opportunity in a crisis: I

Multi­tasking: It will be the new norm

idea to launch hand sanitiser in our

unseen enemy who is only revealed

lot

of

am reminded of a story. A shoe salesman was sent to Africa. He went there, saw that nobody wore shoes and told his office that there was absolutely no scope for sales. Another salesman went there and said, “Wow! This is a

and within 15 days, we rolled out our first batch of sanitisers. Within a

Highlights of views expressed by

virgin market. No one wears shoes and

month’s time, we have introduced

Mr David Appasamy:

so, we can sell a lot.” It depends on how

gadget sanitisers and surface sanitisers.

On the Covid crisis: Bill Gates has

you look at the situation.

Shortly, we are going to launch four

said, “This is the Third World War. The

Brands: Brands must continue to

more products. We feel we can come up

difference is that all the countries are

communicate in these times, not like

with one more CavinKare, with a range

lined up on one side against an unseen

they normally do. They must show

of hygiene­related products. It is once

enemy who is only revealed through

empathy and be helpful. If they do so,

in a lifetime opportunity.

testing.”

they will stick in the consumers’ minds.

WFH has become the new norm. In

Digital adoption is the only way to

WFH: Emotional connect is important.

CavinKare, we have decided to wind up

survive. We may see a change in habits

Use tools to build relationship with

our Corporate Office and all staff will

of our people like in Japan and Far East

employees. Have a bit of fun. WFH is an

continue to work from home even post­

where wearing a mask when someone

intense experience. Have breaks. It is

lockdowns. Pandemic has given us such

has a cold has been in practice even

the people who make the emotional

advantages.

before Covid­19. The ability to adapt and

connect and digital is only a medium.

We are working on how to do online

cater to the changing needs will become

recruitment, train employees on the job

the key factor for survival. “If life gives

through online, conduct all meetings

you lemons, make lemonade.”

Consumers: The consumers are emotionally

fragile.

They

need

reassurance. Marketers must address

and monitor progress in virtual mode

There is a massive growth in the use

their concerns in a positive way.

with WhatsApp videos, etc. Our travel

of all digital platforms. It will go up and

Empathise with them. Be part of them.

costs have come down. Google Glass and

surge in the near term. Print media may

Connect with them emotionally. If

Microsoft Hololens have a great scope.

see a decline but it will not go away. Like

budget permits, help the society and

Restaurants: As social distancing has

radio, it will stay.

build goodwill for the brand.

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