(News collection for Management studies)
Volume: 02 Issue :129 21-December,2011 - Wednesday Pages : 10
Needed: ‘Action tanks', not ‘think tanks'
N.R. Narayana Murthy, Chairman Emeritus, Infosys — K. Murali Kumar
There are some inspirational leaders you simply don't tire of. Infosys Chief Mentor N.R. Narayana Murthy's A S Deshpande Memorial Lecture at the Institute of Banking Personnel Selection in Mumbai last week was a tour de force on leadership attributes. Technology, said the man who is often referred to as the face of India's software revolution, is only an instrument.
“The primary ingredient for progress is innovation through the power of the human mind,” he added.
Courage is the most important leadership attribute, he said, requiring difficult decisions that often run opposed to popular opinion.
He also urged his hosts to work on a set of tests (using computer simulation) to evaluate the ‘courage' of candidates for leadership positions.
More NRN-speak:
Speed: You will need to act as if there is no tomorrow. You need a sense of urgency. Jawaharlal Nehru established half-a-dozen IITs, IIMs, the atomic energy establishment, the Planning Commission, dams, and other public institutions in a span of a decade from 1951. He was a man who acted with a sense of urgency. “Some decisions will go wrong. But that is okay. The media may criticise you; but if you get eight out of 10 decisions correct, that is a fine record.”
Innovation, among equals: Ask yourself three questions:
Can I do the job faster than yesterday (at the same level of excellence)?
Can I do it cheaper?
Can I do it at better levels of excellence?
That is all innovation is.
Executives must spend time with people across the organisation to get the best ideas about innovation. At the same time, don't talk down — talk as equals. It is not difficult to implement. Leadership is about creating a vision and enthusiasm so that others also feel they can ‘catch the rainbow'.
Execution excellence: We Indians think articulation is accomplishment. I had a recent conversation with an American CEO in Boston. The talk veered to ‘think tanks' in New Delhi. The CEO interrupted me to say that what India needs now is not more think tanks but ‘action tanks'. We need to quickly move from idea to action.
Openness to new ideas, fostering pride:I had an associate who was in charge of keeping the board room clean. I would make it a point to introduce this person to all our VIP guests to the Infosys campus, including the likes of Vladimir Putin. This gave the employee a sense of pride, which ensured that the room was always kept sparkling. Leaders need to create an environment where everyone can give ideas.
Living by values: Leaders must try and encourage the practice of values such as integrity, hard work, courage, and commitment to excellence among their colleagues. And leaders need to live by these attributes.
Spreading wings in the ValleyWFSNaheed Soz, Managing Director of State Women Development Corporation, Jammu & Kashmir.
Kashmiri women discover the power of economic independence.
At one of the many offices in Srinagar's Old Civil Secretariat building, a queue of women — some elderly, some young — grows longer by the hour. They are waiting to meet Naheed Soz, Managing Director of the State Women Development Corporation (SWDC), who makes sure she meets nearly every woman who knocks on her office door.Set up as recently as 2005, SWDC aims to promote economic independence among the region's women, especially those hit by the ongoing strife in the Valley. When Naheed took over the job, little did she know it would completely transform her life — both as a person and, especially, as a woman.
“If you had met me four years ago, you would have come across a fairly well-educated and regular government official who worked to support her family. However, that is not the case today. After being promoted as managing director and working for women in Kashmir, my priorities and outlook on life have drastically changed. It has made me realise that economic independence of a woman is of utmost significance — not just for her but her entire family,” she says.
The women she meets come from varied backgrounds. Many are widows, destitute or orphans, and almost all of them need financial assistance. She has several success stories to narrate too, of once helpless and largely uneducated women becoming self-sufficient entrepreneurs and generating employment in their turn.
Right from setting the women on the right professional track to imparting skills and facilitating subsidised loans for enterprises, SWDC is involved all the way.
Personal transformation is the key here and Naheed, through her achievements, has herself come to represent the changing face of Kashmiri women.
Educated and sought-after
This change is visible across generations. There are many bright, articulate and educated women emerging from colleges and universities, and making their presence felt in the workplace. Waseema Shafi, 23, is a network engineer from the Valley who recently passed the highest level of CISCO certifications before becoming a CISCO trainer at an academy in Delhi.
Until this lucrative job offer arrived at her doorstep, she had never stepped out of Kashmir. After her Bachelors degree in Technology from Kashmir University, she had taken up additional network engineering courses and passed them with a high rank. This small-town girl who once dreamt of a nine-to-five job now trains IT professionals from leading companies.
“In Delhi I found myself in a whole new world. I had never stayed away from my family. Initially, when this job offer came, my father and others in the family were not that supportive of my taking it up. But soon they realised that my career could get a major fillip if I moved out of Kashmir,” she says.Waseema happened to be the only girl in her batch who took up network engineering, which promised a bright career. She says, “Till date, no female student in Kashmir has appeared in CISCO-accredited top certification examinations. Since the Valley did not have a job market for this qualification, I chose to try my luck outside the State and luck has been on my side.”
Confident tweets
For the women of Kashmir, not only do unconventional jobs provide a whole new definition of what it means to be independent, they also enable them to feel far more confident of expressing themselves in public.Shehla Rasheed Shora, an IT engineer and social activist, is popular in cyberspace thanks to her smart and bold tweets that have hundreds of followers on Twitter.
She tweets on issues ranging from Srinagar politics to Delhi traffic jams and Bollywood gossip. But what sets her apart from the rest of the tweeples is the change she has been able to make through her tweets.
From ensuring a fair trial for inmates of Srinagar jail to raising awareness on the need to protect the world-famous Dal Lake, her tweets reflect her social activism. A recent tweet, for instance, read: “Communal sentiments always fall prey to political opportunists. Education can change that. Among Hindus and among Muslims and all other sects.” It became a rage on Twitter.
During her student days at the National Institute of Technology (NIT), Srinagar, Shehla used to be an active member of a local youth organisation — One Young Kashmir (OYK) — that hosted workshops and awareness campaigns aimed at youth development. She promoted the workshops on Twitter to attract the young crowd active on social networking sites. “I mostly use Twitter for activism and to stay updated. You get to hear the Government version of events, the media coverage and the people's perspective — all on your own timeline. It is much better than being the fence-sitter that I've always been! In a place where the political space for women is non-existent, Twitter is a good start,” she observes.
Free to ride
While Shehla kick-starts her day with a tweet, Mehnaz, 19, a student at the Government College for Women, in Srinagar, begins hers by kicking to life her two-wheeler and riding joyously to college. She was one of the first few girls in her college to commute on a two-wheeler two years ago; today many more young girls in the Valley can be seen on the city streets riding scooters.Today, it is difficult to imagine that just a few years ago Kashmiri society was not open to the idea of girls riding two-wheelers. It is girls like Mehnaz who made that first extraordinary leap and helped usher a change in popular attitudes. As Mehnaz puts it, “Earlier, it was just me and a few friends who had scooters. Later, as many more college and schoolgirls thought of commuting on their own, they took to riding two-wheelers. Now there are so many of us that nobody can forbid us from commuting this way!”
For many women, something as simple as riding a scooter or pursuing a social campaign on Twitter may not seem a big deal, but in a violence-torn and distressed region like the Kashmir Valley, these little things spell a tryst with independence.
© Women's Feature Service
SPECIAL FOCUS :
Challenges faced in Indian Rural Marketing.( Contributed by P.Rajesh Reddy, 11D61E0015, 1-Sem., MBA)
The concept of Rural Marketing has been evolving continuously over the years and can be classified into three major phases – pre 1960s when it was synonymous with agricultural marketing; 1960s-1990s which saw the growth in the marketing of non-farm rural products; and post 1990s, where the prime focus of the companies is to market FMCG and consumer durable goods in rural areas as a result of rise in income levels as well as the number of middle class families.
With about 60% of the Indian population living in rural areas and representing half of the country’s buying potential even today, the Indian economy can be developed by improving the living conditions in rural areas. Rural illiteracy is the prime area of concern and various projects have been undertaken time and again to improve the rural conditions. A recent study by NCAER (National Council for Applied Economic Research) reveals that the number of middle/ high‐income households in rural India is expected to grow from 130 Million to 172 Million by the end of 2012 as compared to nearly 71 million of urban India.
Despite the fact that India is unarguably one of the largest consumer markets in the world, it is difficult to tap the market. Various marketing theories and concepts have been directly implemented in India, but have met minimal success. This is due to wide variations in size and potential of different segments owing to various parameters like income levels, diversity in language & religion, geographical diversity etc. Even, a company like Kellogg’s had to face the consequences of the unpredictability of the Indian market. The sales of cereals were abysmally low and forced the company to introduce new eating habits in the country. However, in the meantime, a major chunk of the already existing cereal market (which was small in size), was taken away by imitators who introduced local cereal flavors at much lower prices. As a result, Kellogg’s had to realign their marketing strategies and introduce inexpensive biscuits meant for breakfast. It is therefore essential for the marketer to look beyond time tested concepts and reevaluate the entire approach. In order to tap the rural market adequately, the traditional marketing concepts should be modified. This is when the importance of Packaging, Retailer, Education and Empowerment comes into picture.
A rural consumer is always a budget seeking consumer. It is essential to first match a product’s expectations and its pricing structures. It is to be noted that most of the rural population comprises of daily wage workers who tend to have minimal stock of money. Depending on her daily income, she fixes a budget for the purchase and makes a decision after taking other parameters like after sales service, warranty period etc into picture. Thus, the products in the rural market should be able to meet the basic needs of the consumer, as a rural consumer shall not be willing to pay additionally for extra benefits. This makes pack sizes and price points all the more important. For instance, a rural consumer would prefer buying a shampoo sachet to a large bottle which could be used for over a month. Packaging should also be done accordingly in smaller units and lesser priced packs, thereby making them affordable.Physical distribution becomes arduous due to high costs involved and the non availability of retail outlets. Melas & Haats, and Rural Marketing Vehicles (RMVs) could prove to be better means of distribution as the rural consumers prefer ‘touch and feel’ experience.
In rural markets, a consumer’s buying behavior is widely influenced by social customs and traditions. Higher levels of illiteracy and lack of exposure to traditional media practices further add to the problems. Hence, the advertising mix should be customized and contain other alternative forms like street plays, wall painting, posters etc.
A retailer’s importance should be clearly understood because he plays a vital role in influencing the customer’s decision making process. A rural consumer frequents the same shop in order to buy as per her daily requirements. As a result of the lack of brand awareness among the rural population, the amount of purchases is positively correlated with the extent to which a retailer pushes the product belonging to a particular brand. Effective incentive schemes and trade promotion activities should be developed to maintain a long lasting relation with the retailer.
The levels of unemployment are very high in the rural areas. Hence, any marketing strategy which involves the scope of income generation would be more preferable. The success of “Self Help Groups”, which helps in generating income apart from operating like direct to home distributors, is a reflection of this viewpoint.
The concept of “e-choupals” introduced by ITC is noteworthy in the context of Indian Rural Marketing. The presence of these e-choupals is increasing at a rapid rate. It helps in raising the income levels of farmers by providing better prices for their produce in comparison with auctions. These also provide high quality seeds and online advice on various agricultural practices. These practices enable the farmers to increase the consumption levels of the products and services offered by ITC.
A clear understanding of the “Value for Money” concept in the rural areas shall be the major differentiating factor between a successful brand and its competitors. This has been proved by HLL (Hindustan Lever Ltd). HLL discovered that Indians in the rural areas used soaps for multiple purposes. This resulted in the design of all-in-one soaps which was a huge success
How Will You Measure Your Life?
Harvard Business School's Christensen teaches aspiring MBAs how to apply management and innovation theories to build stronger companies. But he also believes that these models can help people lead better lives. In this article, he explains how, exploring questions everyone needs to ask: How can I be happy in my career? How can I be sure that my relationship with my family is an enduring source of happiness? And how can I live my life with integrity? The answer to the first question comes from Frederick Herzberg's assertion that the most powerful motivator isn't money; it's the opportunity to learn, grow in responsibilities, contribute, and be recognized. That's why management, if practiced well, can be the noblest of occupations; no others offer as many ways to help people find those opportunities. It isn't about buying, selling, and investing in companies, as many think. The principles of resource allocation can help people attain happiness at home. If not managed masterfully, what emerges from a firm's resource allocation process can be very different from the strategy management intended to follow. That's true in life too: If you're not guided by a clear sense of purpose, you're likely to fritter away your time and energy on obtaining the most tangible, short-term signs of achievement, not what's really important to you. And just as a focus on marginal costs can cause bad corporate decisions, it can lead people astray. The marginal cost of doing something wrong "just this once" always seems alluringly low. You don't see the end result to which that path leads. The key is to define what you stand for and draw the line in a safe place.
DAY FOCUS :
Inflation above comfort level; govt concerned: Pranab
The government on Tuesday said inflation, which is above comfort level, is a matter of concern and steps are being taken to address the price situation. ”...inflation has been above comfort level and is a matter of concern,” Finance Minister Mr Pranab Mukherjee told the Rajya Sabha in a written reply.
He, however, expressed satisfaction that inflation has started to decline.
The headline inflation declined to 9.11 per cent in November against 9.73 per cent in the previous month.
Similarly, food inflation eased to a nearly four-year low of 4.35 per cent for the week ended December 3.
Mr Mukherjee said both the government and Reserve Bank were taking steps to contain inflation.
Steps taken by government include, reducing import duties on pulses and edible oil to zero and banning export of certain edible oil and pulses. Besides, the government has reduced customs duty on crude oil.
The RBI on its part has adopted a tight monetary policy since March 2010 in its bid to tame inflation.
When asked if increasing interest rates was the only option in the monetary policy to contain inflation, Mukherjee said RBI has multiple monetary policy instruments at its command. However “the use of each instrument is situation specific“.
Mr Mukherjee further said high inflation and some of the efforts to control liquidity “has detrimental” effect on growth in the short term.
Since March 2010, the RBI has cumulatively raised the cash reserve ratio (CRR) by 100 basis points, and hiked the policy rate (repo rate) 13 times by 375 basis points.
However, in its latest mid-quarter review, the RBI refrained from raising interest rates.
Infrastructure project developers can now get cheaper loans through IIFCL's takeout finance scheme. The State-owned company has come up with major modifications to its takeout finance scheme so as to match the demands of various stakeholders including the banks and developers.
A significant change is IIFCL's decision to go in for a transparent and competitive pricing for its takeout finance so that everybody gets a fair treatment on the pricing front. Earlier, all interest rates on takeout finance were negotiable with project developers. Now, it would depend on the ratings of the project and the interest rates would be spelt out on the company's Web site.
Also, now borrowers can directly approach India Infrastructure Finance Company Ltd (IIFCL) for takeout finance. Hitherto, only lenders could refer cases to IIFCL.
“The main objective of the recent changes is to ensure that pricing is non-discretionary and non-discriminatory. All developers whether they belong to big groups or small group will now get the same treatment from IIFCL depending on the rating of the project. They will get discounts ranging from 75 basis points to 200 basis points on the present rate paid to lenders,” Mr S.K. Goel, Chairman and Managing Director, IIFCL, told reporters here on Monday.
Under takeout financing, loans made by banks to infrastructure firms are sold to IIFCL so that banks recover their much-needed funds ahead of the payment schedule under the loan agreement. IIFCL is the sole institution in the country that provides takeout finance scheme. The advantage of takeout is that it corrects the asset-liability mismatch of banks. While borrowers can get more money from banks, the latter can also provide more loans to infrastructure projects without having limitations on exposure norms. With interest rates linked to rating of projects, IIFCL's interest rate for loans to projects with highest rating would range from 9.90 per cent to 10.4 per cent. For projects with lowest ratings, the interest range would be 10.65 to 11.15 per cent. As most projects fall under BBB rating category, the interest rates on loans for them would range 10.45 to 10.95 per cent.
“Compared to the 13-14 per cent charged by banks, this rate offered by IIFCL is low and affordable,” Mr Goel said.
Infosys BPO to buy Australia's Portland Group
Infosys BPO has signed an agreement to acquire all of the outstanding share capital in Australia-based Portland Group. Infosys expects the acquisition, which will cost Australian $37 million (around Rs 195.6 crore), to be completed by early January 2012.
Portland Group, which was founded in 1999, is headquartered in Sydney and has offices in Melbourne, Brisbane, and Perth. The company, which has around 113 employees, reported revenue of approximately Australian $31.3 million (around Rs 165.5 crore) for the fiscal year ending June 30, 2011.
Mr Swaminathan D, Chief Executive Officer and Managing Director, Infosys BPO, said, “This acquisition would significantly deepen our capabilities and domain expertise in our sourcing and procurement practice."
Mr Gavin Solsky, Chief Executive Officer, Portland Group, said, “We believe the combination of Portland Group and Infosys will provide our clients with a highly compelling proposition that does not currently exist in the sourcing and procurement services market in Australia.”
Call centre Bill introduced in US, targets overseas job market
A bipartisan Bill has been tabled in the US House of Representatives to make companies that move call centres overseas ineligible for grants or guaranteed loans from the federal government, a move aimed at stemming the tide of jobs heading to nations such as India.
Introduced by Rep Mr Tim Bishop and Rep Mr David McKinley, the US Call Center Worker and Consumer Protection Act would also put some aggressive mandates on call-centre operations. “Outsourcing is one of the scourges of our economy and why we are struggling so to knock down the unemployment rate,” said Mr Bishop.
Under the protectionist legislation, not only would customer service representatives working overseas for US corporations have to disclose their locations upon request, they would also have to offer callers the option of being transferred to call centres back in America, the Huffington Post reported.
Besides, the proposed legislation requires the Secretary of Labour to maintain a list of employers that locate call centres overseas. The companies also require to provide 120-day advance notification before moving a call centre overseas. The call-centre Bill has strong backing from the Communications Workers of America (CWA), a union which represents 1. lakh call centre workers in the US.
In a report, issued recently by the CWA, the union alleged that outsourced call centres, including some based in India, pose a serious security threat as there are insufficient safeguards in place to deter fraud.
The report titled ‘Why Shipping Call Center Jobs Overseas Hurts Us Back Home' cited several examples of security breaches involving outsourced call centres, including in India. Owing to the insufficient protections in place, it is impossible to deter this type of fraud, the report said.
Some call centre operators, particularly those in rural areas, are trying hard to compete with overseas call centres — and some rural call centre operators say they are seeing a trend toward companies moving call centres back to the US.
The ability of home-based workers to use a broadband connection to conduct call centre duties has helped fuel that trend. Reverse' call centre outsourcing — driven by broadband — could create one lakh US jobs. If passed, the proposed call centre legislation would likely further fuel a move of call centre jobs back to the US.
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