Monthly Archives: July 2016

Obtaining leadership commitment

A German manufacturing organization with offices in Pune and Bangalore has unique problem. Their highly talented engineers don’t want to move the management ladder and transition from developers to managers. With limited next line of leadership, and challenges on culture fit of resources from market the company was challenged to scale up quickly.  Management realized the crux of the resistance lied in transforming the technical staff to imbibe and practice a sense of outcomes, urgency and above all review and direct peers and colleagues. The technical staff hated to move out of the comforts of the comradery position which did not require ownership of others. Despite abundant availability of individuals with experience and managerial capabilities the company found its leadership development floundering. The company had tried push of an employee early into a leadership position when he/she was not sure and the haul has been a failure.  It was not the capabilities or the administrative support that mattered, but simply the change commitment of the employee to transform from an individual role to team management role that required planning, directing, reviewing and owning others that determined the success of internal leadership development.  Here we are not talking about the Meyer and Allen models of organizational commitment of the individual and its major components (affective, continuous and normative).   What we are addressing is the emotional commitment an employee invests to implement a new strategy. Passion, excitement, pride and energy are the signs of a committed employee.  To attain this dramatic change of attitude to occur, people must not only accept and agree with the strategy, they must buy into it. Without emotional commitment, even the most brilliant strategies will fail. Growing leaders internally is a process that requires planning, high intensity of follow through, and freedom to emerge from failures What is the best approach to gain acceptance, support and commitment of an associate?.

Based on our experience we propose a six stage model for employee commitment buying process. The process includes: identification, goal enumeration, assessment, alignment, reiteration, and formalization.

First and foremost, one should assess an employee’s interest and passion towards his/her work. As the famous saying states, “Choose a job you love, and you will never have to work a day in your life, but celebrate each moment”. Identify and develop them early: Most successful internal leadership programs quickly identify leadership potentials and others very quickly. Look for obvious signs of quality of work, sense of ownership of team, quality of feedbacks to colleagues, initiative for breaks with team, etc

Once the employee is identified her manager may provide bird eye view of the organization’s goals, and immediate concerns, and different team members strengths that are required to reach the goals. The objective of the session is to enumerate the immediate future, how the individual can contribute to the cause and what would be the impact at organizational, team and individual level.  The employee is involved in ideation of the goal, the impact it would create at different levels and what resources may be required at each level. At this stage, the objective is to create vibrant imagery of possible state and acceptance by recipient similar to “to broaden and build theory” of Fredrickson. Manager’s only focuses on strength, latent potential and how fuel it. Communication is selective, articulation is directed laden with vibrant imagery. Positive emotion and sense of excitation changes the individual’s conscious and unconscious drives for better long-term outcomes.

Next step is role visualization and capability assessment. The manager and the associate dwell deeper into the roles. The manager innocuously steers the discussions towards individual’s assessment  of her strengths, capabilities and gaps. Manager directs the flow based on a certain frame that of allows for self-evaluation without the burden of guilt and incapability. Communications are deliberate, are “frame” based thus allowing ruminations in a collaborative environment.  Evaluations are deliberated towards role rather than a person centric.

Next stage is alignment, wherein the manager discusses how the individual can contribute to the organizational goal and fitment of the job and capabilities.. Manager emphasizes the latent capabilities of the employee, reposes confidence in the ability to catch up and expands the role horizon of the employee. The discussion would be open, and transparent to discuss the role expectations, how the role dimensions would impact the short term and medium term, what may be the training and skills sets and sharing of apprehension and experiences. External validation and internal acceptance by the associate is the main objective of this stage. Manager, in this stage, leads the associate with directions towards organizational, team and individual goals as well as supports him in moving forward to achieve the goals. Manager proposes a deliberate break of days to allow the employee to do introspection, carry out minor changes towards the goals and receive internal and external validation of the transformation.

Manager and the employee meet up to recapture the goals, the activities that may be required at organizational, and team level to drive the performance and the individual contributions. Manager digs deeper into the change attempts made by the associate, and appreciates all achievements, however minor they may be. Manager’s focus would be to emphasize the value the associate can bring to the goals and what would be the changes the role mandates.   He also makes the employee reassess oneself to own possibilities of attaining the desired goals and activities. He repaints employee’s motivation to own and drive the desired goal. Once the associate is convinced, the duo need to revisit the drawing board to evaluate the fitment of schemas, assets, roles and acts. In this stage, manager refines and repaints organizational, team and individual goals and describes the best suitable approach for the individual.

The final stage is commitment formalization stage where, goals at various levels are tied, action plans are discussed and detailed, training and support are documented, platforms for information sharing and support are detailed and review mechanisms are accepted. Formalization stage must ensure while the outcomes are important, the pace and tactics are owned by the associate, there is plenty of room for failures and learn without stigma so that continuity commitment is not affected. Formalization stage must also detail informal self-review mechanisms where the individual can elicit the feedback, discuss and digest and push the agenda of improvement by themselves.

Ashwini K. S

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How companies are adopting Holacracy principles to build effective sales teams

For many companies, sales function is an area where outcome is never closer to expectation. Companies suffer from weak funnels, missed closures, lengthier closure cycles, order losses and attrition.  These are the waste that emanate in sales function. It is well known sales teams that hunt as a pack always produce better results than those that hunt individually. Unfortunately, many sales teams discourage sharing of information about networks & influence of client organizations across team members. Many a times a particular sales resource may be approaching a client organization in a certain suboptimal way without privy to alternate courses. Other colleagues may have prior experience of the account and/or situation to tide over the apprehensions. Bereft of multiple perspectives, the sales cycle would linger, and eventually the sales resource will lose interest on the account and drop it from his hunt. Incomplete sharing of information and inadequate planning for a particular opportunity is another challenge sales team face.  Weak alignment, between inside sales and direct sales teams or KAM teams with others is another area that leads to sales inefficiencies.  Role conflicts and tensions may also arise due to operational and personality issues.  Poor policies on account transfer between direct and inside sales team, weak sales operations, and ineffective review can exacerbate drop rates. A salient issue in solution selling companies is lack of comprehensive involvement, poor alignment and ineffective role management between pre-sale and sale teams across various stages of a customer acquisition. Diffused and selective ownership without a complete coverage of customer experience management leads to lengthy customer requirement cycles, protracted customer sign off process and potential financial loss.

Companies are realizing to counter bounded rationality problems, improve commitment and camaraderie within the sales teams, they need to build coopetition teams.  Teams in a coopetition collaborate to address common challenges, and address gaps and yet can remain competitive in pursuit of the individual goals. In recent years, companies like Ternary software, Zappos, David Allen Co, Precision Nutrition and others have adopted Holacracy (the system of self-governance) as an approach to build self-managing teams. Holacracy is an approach to distribute authority across the organization. In a Holacracy the organization evolves continuously adapting its structure and process through ongoing peer-to-peer governance. Common elements of organizations adopting Holacracy principles are a) constitution that defines the roles and distribution of authority related to tasks or outputs, b) roles and accountabilities, c) collaborative decision-making process enabling change in roles and authority consistent with evolution and d) meeting process that promotes co-creation and collaborative working.

Companies adopting Holacracy principles for sales organization implement following. Firstly, they create a leadership ring to build multiple owners who can eschew same corporate and sales dream and chase the horizon. However, unlike the Holacracy organizations, these rings are limited to the first level of sales, pre-sale and delivery management, the organization below each leader is still hierarchical. The leadership ring collectively evaluates opportunities, discusses approach or various sales motions (national, key accounts, acquisition, strategic account, label wins), creates proposals and pricing models, and comprehensively manages customer interaction.  The group runs as a virtual organization within the company. They validate customer requirements, aligned design and delivery, and eliminate rework. Recognizing the need for flexibility to counter exigencies, leadership ring has weekly rhythm meets to discuss progress and exceptions. Any engagement model deviations, change requests, requirement changes or client leadership exits are discussed openly, opinions are considered and a comprehensive approach is arrived after considering multiple perspectives. One strategy is collectively approved individuals are given complete ownership ad freedom to pursue the actions. To support the changes in the roles and ownership of different teams over the life cycle of a customer engagement, the sales teams build a culture and process where different people wear the leadership hat. In the initial part of customer engagement, sales resources own and direct inform and influencing of customer. However, a pre-sale expert takes over the solution enumeration and client acceptance, after which the sales leader and pricing teams dons the mantle. Finally, the crown comes back to the sales resource to chase the closure. Once the order is picked, the mantle moves to delivery as the prime owner and sales as the secondary owner. Finally, what distinctly distinguishes “Holacracy” team sales reviews, is this is not the typical high octane name calling threat laced ritual. The review system moves away from status and fault finding to status and solution offering. Each review meeting is initiated with a revisit of the purpose and with a focus on actions by individuals and team can impact positive outcome.

Companies adopting Holacracy principles for sales must understand it is a cultural change and requires both management investment and patience.  Sales team members must experience the trust and openness to share everyone view and the collective decision making. Parochial leaders may find the process limiting insular control of team and threatens group politics.  Importantly the ability to steer the focus towards “problem solving” than “one man up”  behaviour is the key to the success of the program.

Vasavi R, Sai Vinoth and Dr TR Madan Mohan

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Congregation Branding: Insights from Indian Mela’s

Congregation branding or mass branding is a unique method to reach a large number of peoples at a very low cost. It is when a large number of people congregate for a short duration, often for religious or faith interest. Events like Kumbh mela, Sabarimala or Pushkaraulu are mega congregations where the millions attend. Kumbh Mela which occurs once in 12 years, witnesses more than 100 million thronging the banks of River Ganges and its tributaries. Similarly, Sabarimala, a hilly place in Pathanamthitta District of Kerala State in India, has about 40 million peoples visiting the shrine annually. On the grandeur scale is the shrine of Tirupathi in Andhra Pradesh, the second richest religious institution in world which attracts at least 60,000 devotees on regular days and 8 -10 times the number on special occasions. Local festivals like Sonepur Mela, Asia’s largest cattle fair, in Bihar or Velankanni in Tamil Nadu attract about 2 million people and these footfalls are for just 3 days.  It is not only religious events that offer a platform for branding, festivals like Kadalekhai Parikshe in Basavanagudi or Fish downing sessions at Goud treatment center for asthma patients at Hyderabad or New Year crowds around Taj Hotel in Mumbai are all perfect platforms for congregation branding.  Holi Milan Samaroh or Baisakhi celebrations are apt for congregation branding to reach out to mass consumers. With India celebrating 120 festivals in a year where more than 100,000 people congregate, congregations offer a unique platform to reach out and engage with customers.

The advantage of congregation branding is it helps brands to reach out to consumer who may reside in media-light or are low TV and print penetration areas.  Congregation branding helps to marry the essence of the event with the brand proposition.  These events are not only attracting FMCG companies, but are finding new takers like agricultural equipment manufacturers and FMCD companies. Congregation branding exposes people to various brands to become potential buyers as well as opinion leaders and brand ambassadors.  Congregation branding drives social approval and recommendations.  It is a low cost approach to reach out to large user base. It offers the opportunity to consumers to touch and feel products. Pepsico uses the congregation for sampling of new innovations (Nimbooz Masala Soda or Butter Masti flavor of Kurkure) and enhance brand visibility.

Congregation branding is a high visibility and high impact strategy.  Companies use five types of branding approaches:  a) Freebies, b) small packs, c) service centered, d) artifact based and e) entertainment led. Freebies, small packs and entertainment led are excellent approaches to expose product consumption experience and win over customers. Service centered and artifacts based are effective approaches for surrogate branding.  Freebie is a common strategy used by FMCG companies. Tata swatch water purifiers installed 300 water purifiers for Kumbh Mela. Similarly, Marico provided Rs 1 Parachute sachet packet. Dabur put up automatic toothpaste dispenser with the tagline “Kya aapne dant snan Kiya? (Did you wash your teeth), with images of Dabur Meshwak and Red prominently displayed on the container. Tata Salt distributed 35 tons of Tata Salt to various akharas. They also gave away disposable plates with “Shubh Bhojan ki Shubh Shuruwat” (auspicious beginning for an auspicious lunch) with Tata Salt prominently embossed on it. Godrej provided hair die salons and Shanthi oil installed free oil massage centers at various akadas (sectors) for product experience. Small packs are fit for occasion and value for money propositions that help brand association and recall. Coke offers 150 ml of cola at Rs 5 and HUL offers Vim bar (washing bar for utensils) for Rs 4. The products are appropriately packed and priced to meet “use and throw” requirements of the rushed Pilgrim.

Companies can also purse surrogate or indirect product branding approaches. For example, a cement company can provide water or sanitation tanks or paper fans for convenience of the attendees.  Companies could pursue surrogate branding in multiple ways.  Surrogate branding could be fashioned around the “event” or something that is of regular use and not necessarily associated with the event. Using service mapping tools such as blue printing companies can gain a complete view of the customer experience cycle. They could identify physical infrastructure, hygiene and health related requirements, crowd control and management system that may be required to provide a safe and complete event experience. Companies could choose to adopt highly repetitive and commonly consumed services or infrequent selective services. Companies can identify service that has higher impact and one that is closer to its product/service.  Aligning branding with the moment of truth is key to effective crowd branding. Eternit Everest cements provided tents and roof shelters to pilgrims and telecom companied offered branded Umbrella’s, and light holdings at night times. Vodafone provided scarfs with their logo on them so that pilgrims can protect themselves in cold nights. A cement manufacturer may offered free rides or free group housing. Such an offering would be group based. A pharmaceutical company can offer free health care center and ambulance services, which are critical and personal in nature. A telecom company can provide a public address system and location based identification for missing persons. Such an offering could be context dependent and critical in nature. Healthcare, travel and personal loss related services offer longevity of WOM, while food and hygiene related may have shorter WOM.  Surakhsha Wrist Band, a water proof band promoted by Nerolac, received high appreciation from families.  Children and elders who received the bands were seen raving about it and flaunting it prominently.

Amulets and Idols are appropriate mediums to reach out to pilgrims and others thronging the meals.  Companies find idols of Lord Ganesh or Lord Hanuman are the most accepted across different pantheons and sects. Their child like innocence and simplicity of faith make them highly amenable to various socio-economic groups.  Amrutanjan, the popular pain balm erected a 16 feet statue of Lord Hanuman made with empty Amrutanjan boxes.  Ranbaxy offered Hanuman chalisa to pilgrims who visited kumbha mela. MNC have also pursued this strategy very aggressively. HUL engaged Sudrashan Patnaik, the noted sand sculptor to create sand art installations of Lord Jagannath on the beach in Puri. HUL Dalda oil was subtly placed on the canvass. While men and women do involve in crowd branding, it is women fold who tend to carry the artifacts back home.  Whether brochure or religious books or other artifacts, care must be ensured in designing it useful and colorful from the other gender perspectives. Marketing professionals must consider the investment, impact and reusability of artifacts before they choose a particular approach.

Entertainment, the wholesome kind is the best way to reach out to the crowd. Once Pilgrims have completed their faith related ablutions and associated rituals, they tend to have some time before their return journey home.  Tholatta, and Throw a ring are what GlaxoSmithKline found useful to draw and engage customer to get in touch with Horlicks. Throw a hoop and gain a sachet is an excellent strategy to gain interest, interactions, sense of achievement and brand association.

Sai Vinoth T R

 

 

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Successor Selection in family business

Family business continuity depends upon clear demarcation of rights, expectations and responsibilities of family members and their extended relations. Succession is a key factor that can lead to odious conflict if the selection is not felt fair by all members. A wrong selection can jeopardize the very sustenance of the business itself.  Successor selection in a single owner business or cousins consortia the criteria remain same.  Successor candidate for a family business must possess:

  • No vacillation of taking charge
  • Alignment with personal dream
  • Strong family (sibling) ties
  • Strong leadership skills,
  • Drive to scale

Not all progeny would be interested in working for family business. Identify who is interested and committed irrespective of gender and on tradition of first born. Incoming family member must be clear in owning the role and responsibility. They must exhibit “strong skin in the game” orientation in all areas including planning, execution, feedback and improvements related to the new role. If there are any signs of ambivalence, then family elders and family board must search somewhere else within the family or alternately bring in professionals to run the business while family oversees the business and family interests.

 

It is important the family business forms a part of personal dream of the successor or at least allows her to anchor to explore personal dreams. If the alignment between personal dream and the family business are weak, the succession may not yield significant results. Higher alignment would ensure the successor brings more passion and commitment to growth and transformation of the family business.

Family business successor must not only be adept at managing business, but must be able preserve and nurture family ties.  Successor should have an ability to delineate family and business rituals, positions and carry family branches and interests in all fairness. In family businesses with well entrenched non-family professionals, the successor must be able to build rapport, influence and advocate required changes to set the business to next level. The successor must be capable of leading other family members on investment. Successors who exhibit a strong player-coach orientation perform better as they can collaborate and lead within and across teams.

Successor in family business must bring strong leadership skills. The successor must be comfortable in exercising leadership alone, review and critique associates wherever necessary. Successor should be able to show tact and respect to family and non-family associates who may be involved in the business, and yet direct them to reach the desired goal.   Successor must exhibit a high dose of candor and sense of urgency, especially for anything related to bad news. Successor must be evaluated for their team building, ability to tap talent and instill a culture of excellence.

Family business succession is not just about leading existing business, but also a stage to move to next level of expansion. The expansion may come from scaling up production or entering new markets or scaling out to build competencies and capabilities to seek out opportunities in other areas and realize the growth potential. Successor in a family business must have the drive to obtain inputs every quarter, validate these inputs and act on them to realize the goal.

While family elders and board may have high access and knowledge of a successor as an individual, whenever contenders exist ask for a business plan from each. The family elders and family board must check whether their approach clearly captures the business and family dynamics, dreams and action agenda.  Once a successor is selected family elders and the board must establish the business parameters, discussed and communicated the same across multiple interest groups to buy the succession plan well in advance. Once a future leader is identified, start mentoring the person through on-the job exposure and empower him to learn and implement changes. If the family prefers to expose the successor to learn the ropes in outside business, create alternate investments that may not blow a big hole in the family books, but de-risks existing business from transition. Succession plan must detail how the first 3 quarter of induction and transition happen. Identify respected non-family mentors who would take the new ward under their umbrage and fill in “implicit knowledge”. Do not burden the successor with constant reminder on results, instead focus on outcomes. Obsession with results can induce an undue pressure on the successor and induce her/him to focus on short term gains. Remember succession is an opportunity to rewire your business. As John F Kennedy rightly said, “The time to repair the roof is when the sun is shining bright”.  Thinking strategically about the selection process enhances the quality of successor and the survival of the family business into next centenary.

Dr TR Madan Mohan

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