Vol. 1 Issue 2
Page 2 “Business strategy to people strategy”
Executive Coaching The Hidden Third Party
Are Millionaires Misers?
Leaders: How to Make or Mar Them As the Indian economy fares better than others and global economic trends affect the corporate world, the country faces challenges to corporate leadership development.
orporate leaders are traditionally assessed on the basis of their personalities and competence. But the phenomenon of globalization has exposed a serious shortcoming in the traditional leadership approach: it has little or no connection with business acumen. India's growth and the global economic developments have highlighted the need to have leaders who can carry the momentum of growth forward even in the current trying situation. It raises questions. Does India have leaders capable of heading organizations in today's world? Are there adequate leadership development programmes in India? Should MNCs in India have Indian chiefs and vice-versa? Do corporate leaders need 'executive coaching?' Executive coaching helps the leaders to achieve fulfilment at both the personal and professional levels.
Vivek Kulkarni Chief Executive Officer, Brickwork India “There is a huge need for training in something as basic as communications,cultural awareness etc, given today's globalised business models.”
Corporate leaders have varied answers to the questions. Mr. Vivek Kulkarni, Chief Executive Officer, Brickwork India, believes that leadership programmes are critical to developing leaders. “Most CXOs learn the skills on the job as they need it,” he says. “They do not have many avenues to learn. Another challenge is that being at a senior level, it is difficult to assess what they need to learn as they hardly get feedback or get criticized for the work they do.” Mr. Tarun Hukku, Head of Support Services, Microland Limited, says leaders can be trained, but only by example. “Nobody should waste time in classrooms reading PPTs if they want to create leaders. Rather, train them by associating them with successful leaders; they will then also realize whether they have it in them to be a leader or not.” Says Mr. B.S.Rao,“Yes, a few people are born with leadership traits because of their culture, society and environment. But anyone can acquire these skills over a period of time. In the end, they can be trained to be leaders.”How well are India's leaders equipped to head corporations? Mr. Vivek Kulkarni says that many of our professionals are trained in technical discipline, but are not sufficiently trained in leadership. He attributes the phenomenon to: very few institutes that offer leadership of good quality, inadequate faculty to train these professionals, and low percentage of professionals taking up courses in specialist institutions.
“Business strategy is leading to people strategy” We are sorry to share the sad demise of Ranjan N.Acharya. who left us on July 15,2009.
or almost a quarter of a century, Mr Ranjan N.Acharya had been involved in the business of people. Beginning with Human Resources (HR) in Wipro in 1994, he moved up to the position of Senior Vice President of Corporate Human Resources Development. He dealt with the top segment in leadership development Mr. Acharya (50) said India is still a from being a 'knowledge society. But he saw it happening in the future.In a knowledge society ,a lot of business strategy is derived from people. “Google evolved from people's intelligence. That is what we will see in the future,” he said.
“Eventually, people will be scattered all over the world. A lot of ideas will come from the people,” he noted, pointing out that the iPod changed the music industry. “Business strategy is leading to people strategy.The arrow might be reversed.”He was confident that creativity and innovativeness of people might lead to new business strategy. Even though India is still some distance from a 'knowledge society,' one revolution has nudged the country closer to it—the cell phone revolution. “There is a lot more information flowing freely. Our technology lag has narrowed down. The best brands are available,” he pointed out. MY TURNING POINT Similarly, thanks to the Internet, one can Google at any time any where in the world. “You can keep yourself up-to-date any where in the world,” he added.
Mr. Ranjan Acharya was a mere 24 years old when he was interviewed by Mr Azim Premji in 1982 for a job with Wipro.
The younger generation has turned out to be the 'goog' generation, he said pointing to the fact that it always googles for information. Google is all about people. In the case of Wikipedia,it is community intelligence. Even the rules and norms are created by people, he added.
After a one-and-a-half-hour interview, Mr Acharya got a job in the production department. Subsequently, he served in sales and marketing, before finally getting into HR in 1994. The interview was the turning point in Mr. Acharya's life. “Mr. Azim Premji got from me what I myself thought I did not have,” recalled Mr. Acharya.
“Another major change is technology,” he said. “I find the home computer is faster than the office computer.” Mr Acharya spoke on various other issues. On HR Mr. Acharya believed that HR strategy has to be derived from business strategy. In the 1970s and 80s, HR strategy went though a 'welfare phase,' seen more as an employee advocate. But now it is 'tightly intertwined' with business
“That was a corporate-defining moment.” Mr. Acharya emphasized that leadership lies in pulling the best out of people—not command and control.
On PCMM The People Capability Maturity Model (PCMM) came from Carnegie Mellon University. New elements were added to it—the result of teamwork at Wipro. “ He helped people with PCMM consulting.” Wipro became the first organization in the world to achieve PCMM Level 5 in December 2001.On Leadership Development “We need to create larger number of leaders with global mindset who can function anywhere in the world.” Mr. Acharya spoke of an increasing trend of overseas people wanting to undergo an Indian stint as part of their credentials. “India is going to grow. We have an inherent demographic advantage—more than half the people are less than 35 years of age.” On Employee Branding “There is a concept of 'employer branding' applicable in both internal and external marketing. Brand is partly marketing and partly experience.” He stressed that marketing is not about hype—but about how the message is communicated to the target audience. . By Yeshvanth Kumar
arun Hukku says the corporate world does not encourage risktaking, acting as an inhibitor to the innate abilities that a leader must have such as vision, commitment, execution and the capacity to rise above failures and understand that the journey to a successful venture is going to be tough and fraught with risk. Quite frankly, Mr. Hukku adds: “Also, leaders cannot be made out of an insecure population who only wish to amass wealth through mediocrity, which seems to be the acceptable benchmark in most corporates.” If India's corporate leaders wish to acquire the current skills necessary to lead organizations, some do venture abroad for training. But how far are the overseas training programmes effective?
Mr. Vivek Kulkarni says that overseas training courses still pose a challenge to the Indian leaders as they take a while to adapt in a foreign land with a different culture. “There is a gap in cultural awareness that needs to be closed,” he adds Tarun Hukku Head of Support Services, Microland Limited “ Mediocrity seems to be the acceptable benchmark in most corporates.”
Going a step further, he says: “In fact, at the middle management level and above middle management levels in some cases, there is a huge need for training in something as basic as communications, cultural awareness etc, given today's globalised business models.”
About senior corporate leaders undergoing short-term programmes on leadership and management, he says such programmes are too brief for the executives to achieve significant benefit, since leadership is a more involved process. Mr. Tarun Hukku believes that leaders cannot be mass-produced. “They are the thoroughbreds and arise out of the culture they work in,” he notes. “I don't think training programmes are the defining education for leaders—at best they are good reinforcers of some basic elements of leadership. They are the skin—not the heart or mind of a leader.”
ven as the global economy erases geographical boundaries, more and more companies are choosing heads from across countries. India is in a unique position because of its size and the scale of its economy. The obvious question is: should multinationals in India have foreign CEOs or Indian? Mr. Vivek Kulkarni: “Foreign CEOs heading multinationals in India do fill the gap when it comes to dealing with overseas customers as they are more aware of the customers needs.But they do face a challenge in dealing with Indian employees due to the cultural differences.” “Indian CEOs with global exposure would definitely be more appropriate since they understand the global perspective,customers' needs, and their culture and at the same time understand the Indian psyche, culture and working styles.
Mr. Tarun Hukku: “Indian or foreign CEOs doesn't really matter. In the case of top-level positions it is the person who matters the most. It is dangerous to generalize in either direction. It is more a question of how quiickly one or the other would be able to deliver.” Mr. B.S.Rao: “Today's businesses demand high level of compefency.When you keep competency at the centre of the selection process, regions and continents don't have any siginificant role. A few developed nations have a great number of skilled leaders and countries likeours need to hire such talent. This is a temporary phase. If you look at the USA, many technology high-endpostions are headed byIndians. When the USA acquires similar competencies, we may not have any role”. By Bharat Bhushan
The New Influencers: A marketer's guide to the New Social Media by Paul Gillin
he urge to write usually strikes most people sometime or the other. While quite a bit of effort is needed to convert the urge into written words, even greater effort is needed to publish them in traditional media like newspapers. But the advent of the Internet has allowed practically everyone to write, giving rise to the phenomenon of blogs.' The influence of bloggers, podcasters, and users of other social media is profoundly disrupting the mainstream media and marketing industries. Along with blogs, the growth of online networks and social media has been profound. But the world of social media keeps changing rapidly, confusing those who attempt to understand it. The strategy is new to companies, even though political campaigns and film studios have pioneered the use of blogs for promotions. Why are blogs growing in importance? One simple answer is that consumers are increasingly turning away from the print media and TV. A survey by the University of Massachusetts found that three quarters of the respondents now consider social media to be an essential part of their marketing strategy. It also found that small businesses are adopting social media tools much faster than large ones 'The New Influencers', published in 2007 is all about social media and the profound impact it is having on markets and marketing. It contains interesting anecdotes and profiles, as well as advice about how to leverage these new media for marketing purposes. The book discusses the sea change in marketing and public relations techniques. Written by Paul Gillin the book is recognized as the best social marketing book to emerge so far. It lays down principles of social media marketing:selling it to the organization,choosing tools and tactics, creating compelling content, search engine visibility and traffic growth, identifying and engaging with online influencers and measuring results.
Author Paul Gillin Paul Gillin affirms that he helps organizations of all sizes understand the tools and tactics of new media.“As a 25-year publishing veteran - with the past decade focused exclusively online - I know what it takes to create compelling content that leads to customer affinity and bottom-line results,” he says. From his experience, Paul Gillin says that small businesses are more active, creative and effective at leveraging social media marketing than big companies. Some of the reasons are the cost advantages, the speed and responsiveness of small organizations, their willingness to engage directly with individual customers and the accessibility of senior managers. “In my own presentations and seminars, I consistently find that small companies are more enthusiastic and responsive to the potential of social media than the big guys. In fact, large companies tend to excel at finding reasons to AVOID talking to their customers!” he adds. The New Influencers explores why social media are now so influential in consumer decisions, interacting with those within the blogosphere, and how to take advantage of this new medium. Visit www.newinfluencers.com to learn more and to get the best price. Paul Gillin has written one more book 'Secrets of Social Media Marketing' By Nagaraja Rao
EXECUTIVE COACHING The Hidden Third Party
ramatic changes have taken place in the corporate world because of globalization, revolution in information technologies, and increased competition. As a result, corporate executives face greater pressures to deliver. Executive coaching involves a one-to-one relationship between a coach and a senior executive or manager. The relationship is confidential and involves exchanges between the two. But the important factor is that the relationship is not merely between two persons, but it recognizes that there is a 'third party.' The 'third party' refers to two realities--the internal reality in the minds of the coach and the executive, and the external reality that needs to be addressed. As the dialogue between the two takes off, the coach and the executive share an experience of the organization. It is important to note that the coach plays a role to facilitate the executive to 'self-explore.â€™In other words, the coach does not develop the executive, but helps him or her to develop themselves. The main reason why a company should go for a coaching programme is because it lacks experience on how to help executives switch to a track identified by the company. A coach will assist the executive to reignite his passion for work. It could turn out to be critical because often business gets boring with passage of time and absence of benchmarks to measure motivational levels. Without doubt, motivation holds the key to performance. And performance holds the key to better business. The coach helps the executive to unlock his or her potential. Irrespective of the size of the business, coaching is an effective tool to develop leadership that goes on to produce tangible results for the business. Coaching sessions usually enable the executive to apply his learning to different business situations.
Some areas where immediate benefits accrue are in individual decision-making, overall team performance and in motivating others. As coaching is an art that has evolved over time, it is perhaps not possible to definitely list the areas that can be touched. Broadly speaking, the following areas lend themselves to a relationship between the coach and the executive: ? A change in organizational structure, necessitating acquisition of new executive skills. ? An identified manager is groomed for bigger responsibilities. ? Senior executives who exert adverse influence on colleagues and clients. ? Executives who wish to improve their careers. ? Follow-up action on comprehensive performance appraisals. ? Successful executives to bring balance in the work priorities. ? Increasing the executive's psychological strengths. To sum up, executive coaches will help you ? Earn more profits. ? Get more out of yourself both at work and personal life.. ? Rediscover your passion ? Develop your team. ? Chart changes in the economy and market. ? Create accountability in the organizational hierarchy. --By Shamala S. ? Provide a valuable second opinion.
The Chief takes off
It’s here! (from left) Yeshvanth Kumar, Editor, The Chief, Aman Mustafa, Ranjan Acharya, Satya Murthy and B.K.Chandrashekar.
Congratulations! A guest greets Venugopal C.B, publisher of ‘The Chief’
n elite gathering of top executives applauded the launch of 'The Chief' in Bangalore City.At a colourful launch ceremony, the executives welcomed the ezine as a useful read.Dr B.K.Chandrashekar, former Chairman of the Karnataka Legislative Council, said the ezine was timely. Other speakers were: Mr Ranjan Acharya, Senior VP, Corporate HR, Wipro, Mr Satya Murty IAS, Managing Director, Karnataka Neeravari Nigam Ltd, and Mr Aman Mustafa, Country Head, ACS India. The inaugural was followed by lively fellowship over lunch.
What is Your Net Worth?
uite often, cocktail conversation veers round to the subject of a person's wealth. “Oh, he is worth a million dollars,” one might say. But how do they arrive at the figure of a million dollars (or a million rupees)? Is the figure based on total value of assets? Or the total value of income?
Two U.S. professors of sociology have come up with a formula to calculate net worth. The formula is contained in their book, The Millionaire Next Door, written by Thomas Stanley and William Danko. Although the book is a decade old, it has been recognized for its sharp insights on wealth-creators.Their formula runs thus: Multiply age by pre-tax household income. Divide by 10. This, less inheritance, is what your net worth is. The two authors have said that an "Average Accumulator of Wealth (AAW)" should have a net worth equal to one-tenth their age multiplied by their current annual income from all sources. e.g., a 50-year-old person who over the past twelve months earned employment income of $45,000 and investment income of $5,000 should have an expected net worth of $250,000. An "Under Accumulator of Wealth (UAW)" would have half that amount, and a "Prodigious Accumulator of Wealth (PAW)" would have two times..A PAW has more than 200% the expected net worth. A UAW has less than half the expected net worth.The two professors have made a clear distinction between the 'Balance Sheet Affluent' (those with actual wealth,or high net-worth) and the 'Income Affluent' (those with a high income,but little actual wealth, or low net-worth).
Are Millionaires Also Misers?
onsider the usual image of a millionaire: he dresses nattily, moves around in a chauffeur-driven limousine, dines at the best restaurants, and plays golf at an elite club.But two U.S. professors have come up with amazing findings on the lifestyles of the rich. In their book, 'The Millionaire Next Door' Thomas Stanley and William Danko have listed the virtues of the affluent.
For starters, the millionaires surveyed believe that financial independence is more important than displaying high social status. They think more about having enough money to support themselves and their families even during the down-and-out times, than about owning flashy cars. An important finding is that people, who work to be wealthy, are extremely careful about using credit. They first save for things they want and then buy them. They drive around in second-hand cars, live in middle-class suburbs and they are not members of yacht clubs and elite gold clubs. And they send their children to ordinary public schools. Quite honestly, the millionaires interviewed for the book confessed they were “tightwads,” meaning they were stingy. One interesting piece of advice the authors give is, "if you're not yet wealthy, but want to be some day, never purchase a home that requires a mortgage more than twice your annual income." Millionaires live below their means, they allocate time, energy and money in ways conducive to building wealth, they study investments and consistently invest in the areas they understand best, they refuse to be caught up in the consumer lifestyle, and they spend a lot of time to find a good financial adviser. So, what wants to be a millionaire?
Changes in the corporate world
adhu Kannan is the new managing director and chief executive officer of the Bombay Stock Exchange, succeeding Rajnikanth Patel who quit nine months ago. Prior to this appointment, he was Managing Director (Strategy and Business Development) with the Bank of America-Merrill Lynch, based in New York. He has also held various posts at the NYSE Euronext, primarily focused on the Asia Pacific and the Middle East. He was nominated by the World Economic Forum, based in Geneva, as a Young Global Leader in 2007.
he highest-ranking woman at Procter & Gamble has resigned as president for global business units. Susan E. Arnold, a potential candidate for chief executive, quit upon turning 55 as she had intended long ago. Dubbed one of the most powerful women in American business, Arnold had spent 29 years with the company which makes detergents, diapers and razors. Arnold will continue to be on the boards of several companies, including the McDonald's Corporation and the Walt Disney Company
grandson will take over the Toyota Motor Corporation, founded by Kiichira Toyoda 92 years ago. Known as a hands-on person, Akio Toyoda has been named the next President of the world's biggest and richest carmaker. The company is expected to post a loss of $ 5 billion for the first time in more than half-a-century. A crisis in the 1950s had forced Akio Toyoda's grandfather Kiichiro Toyoda to quit his top position.Akio Toyoda will replace Katsuaki Watanabe, who has been President since 2005.
ithin months of being hailed as an outstanding banker, Kenneth D.Lewis was dethroned as Chairman of the Bank of America by angry shareholders. The shareholders faulted Lewis for taking a series of steps that forced the bank to avail two U.S.government bail-outs. Just a few months ago,he had been hailed as 2008 Banker of the Year, for building the Bank of America as the largest bank in the U.S. Considered a visionary, Lewis had taken over Merill Lynch as part of various other acquisitions that powered the Bank of America to the top.
.Chandrasekaran (45) has been named to succeed S.Ramadorai as chief executive officer and managing director of Tata Consultancy Services (TCS).
Currently, he is the chief operating officer. Chandrasekaran will take over the new post in October, from Ramadorai who has been Managing Director and CEO of TCS for the past 13 years. After the transition, Ramadorai is expected to continue with the company in a non-executive position.
merging as the first African-American woman to head a large U.S.company, Ursula M. Burns (50) is set to take over as Chief Executive of Xerox. She will succeed Anne M. Mulcahy (56) who is slated to continue as Chairwoman of the company which reported revenue of $ 17.6 billion in 2008.Ursula Burns has spent 28 years at Xerox, having begun her career as an engineering intern in 1980. She helped Mulcahy turn around Xerox after it had lost ground to Japanese companies Canon and Ricoh.
Published by Venugopal C.B Executive Coach and CEO, PeopleSmart Consultants, Indiaâ€™s fastest growing search firm. Content & Design by Apex Media
Editor Yeshvanth Kumar