Six Thinking Hats: Management Funda; V2 Issue 1

When you are making an important decision at work, don’t you want your colleague or manager to provide their views on it?  You want their views because you want a different perspective on it. Imagine if can get not two but six different perspectives on it. This is exactly what the technique ‘Six thinking Hats’ gives you. This is achieved by encouraging you to recognize your habitual thinking and by helping you apply different types of thinking.

What is this technique?
The Six Hats represent six approaches to thinking. Each is symbolized by the act of putting on a coloured hat imaginatively. Most people use only one or two of the approaches. This limits their thinking. By deliberately adopting all six approaches to a problem people can be more productive. You can use ‘Six Thinking Hats’ in meetings or on your own. When done in group, everybody wears the same hat at the same time. The kind of thinking involved in each hat is explained below:-

White Hat: Focus on the facts and data available and gaps in your knowledge. Then either try to fill them or take account of them.

Red Hat: Look at the decision using intuition, gut reaction, and emotion. Think how other people will react emotionally.

Black Hat: Think negatively. See why ideas might not work. This is important because it highlights the weak points in a plan of action. It allows you to eliminate them, alter your approach, or prepare contingency plans to counter problems that arise.

Yellow Hat: Think positively. See the decision’s benefits and spot opportunities that arise from it. Yellow Hat thinking helps you to keep going when everything looks gloomy and difficult.

Green Hat: Develop creative solutions. It is a freewheeling way of thinking, in which there is little criticism of ideas.

Blue Hat: Control the thinking process. This is the hat worn by people chairing meetings. When ideas are running dry, they may direct activity into Green Hat thinking and so on.

How did it originate?
It was first propounded by Dr. Edward de Bono in the book ‘Six Thinking Hats’ in the early 1980s. The concept was actually conceived in just one afternoon by him while writing an article. He imagined a situation for creative thinking and thought of the negative criticism that people usual encounter while ideating. Wanting to counter this, he thought what if there is a time and place where that sort of critical thinking is perfectly correct, but other times where it’s not. So it started out as a reaction to the negativity. The article was then expanded into the book.


An Example
Lets look at how an issue can be viewed 'wearing' each of the thinking hats in turn.

Situation:  The directors of a property company are looking at whether they should construct a new office building. The economy is doing well, and the amount of vacant office space is reducing sharply.

Benefits
While the obvious benefit is that it helps you make sound decisions, the other benefits are:-

  • It helps you conduct more productive meetings. Since everyone focuses on a particular approach at any one time, the group tends to be more collaborative than say if one person is reacting emotionally (Red hat) while another person is trying to be objective (White hat).

  • It allows necessary emotion and skepticism to be brought into what would otherwise be purely rational decisions.

  • Black Hat thinking makes your plans more resilient by helping you spot fatal flaws and risks before you embark on a course of action.

  • The technique can help, for example, persistently pessimistic people to be positive.

  • This allows an issue to be addressed from a variety of angles, thus servicing the needs of all individuals concerned.

  • It encourages creative, parallel and lateral thinking along with rational thinking.

 

Conclusion
To use “Six thinking hats” effectively it is important to put on and take off a hat metaphorically speaking. I mean using all of the hats at the same time is not a good idea. Also, do not use the hats to categorize individuals, even though most people automatically use one kind of hat more often than the others. Hats symbolize types of thinking and not types of people. So, which hat did you have on while reading this write-up?

 

References

  • ‘Six Thinking Hats’, http://www.mindtools.com/pages/article/newTED_07.htm.
  • Vas, L S. R, ‘Six Thinking Hats of creativity’, http://www.lifepositive.com/Mind/Creativity/Six_Thinking_Hats_of_creativity52004.asp.
  • Labelle,S, ‘Six Thinking Hats’, http://www.members.optusnet.com.au/charles57/Creative/Techniques/sixhats.htm .
  • ‘de Bono Hats’,http://en.wikipedia.org/wiki/Six_Thinking_Hats.

Employee Speak: M C Muthanna, Chief Operating Officer, Firepro; V2 Issue 1

http://www.fireprosystems.com
     

1. Firepro has experienced exponential growth in the last couple of years. Can you share some of the factors for this growth?

I attribute Firepro’s phenomenal growth to strategic initiatives we invested in.  Our geographical expansion within India and overseas has powered us immensely. As has our decision to evolve our service offerings by acquiring more capabilities, and offering wider, more technological solutions to our customers. Our focus on building capabilities grew from our intent to meet customer needs by paying attention to detailed design and engineering methodologies, procurement efficiencies and implementation mechanisms. Today, we are able to offer quality solutions to our targeted customers, across locations, in spite of fierce competition.

Our offerings today, include not just safety and security solutions but also include network infrastructure - the backbone of any Building Management System (BMS). We have made immense progress in developing home automation solutions as well. Diversification for us was the most natural route to consider being a solutions provider! Most importantly, the contributions of our highly committed and motivated team have powered us to be one of the most sought after companies in the industry.

 

2. What were the key growth drivers for business – both internal and external?

Vast development and growth in the infrastructure market has invariably accelerated the business. The knowledge and awareness of potential safety and security solutions in the market have also broadened Firepro’s horizons. Our focus on quality, our scale of operations and our ability to envision and implement newer initiatives in the infrastructure space are among the internal growth drivers. The formation ?? and the research done by our internal focus groups have helped us to further enhance our expertise. I would consider our ability to attract talent across various levels as one of our biggest internal growth drivers.

 

3. What were the kind of responses that you got from different stakeholders in this journey ?

Our reliability and commitment towards customer needs has helped us retain customers. They know we have the ability to understand their business environment – this has enabled us to offer better and effective solutions to them. Our clients have a great deal of confidence and faith in the way we operate!

Our biggest asset has been our employee strength – strength is the word to be used to describe the mighty workforce that we have! They are a committed team, always willing to take up challenges and ensure successful completion of projects before moving on to the next one. They are happy and excited to be part of this high-growth environment though have to constantly deal with change. We instill an understanding in the new joinees that it’s a tough place to work, and they have to deal with high pressure situations frequently! I remember sometime back meeting two promising boys from Hubli who came looking for a job with us. They were among the first entrants in the instrumentation department, and I’ve seen them toil and burn the midnight oil time and again to ensure that everything went right at the client location. They have worked diligently and today have a fulfilling career, with a potential to move up the ladder!

We have been able to attract industry’s best and highly experienced senior and middle management talent who want to be a part of our ambitious and high-growth environment! Apart from this, our association with business partners dates back from the time of inception. Firepro’s stability and the platform that we provide for their growth has resulted in long-term and viable relationships!

 

4. Firepro recently won the Best Company of the Year 2007 - Fire Systems Integration at the Frost and Sullivan Building Technology Excellence Awards? What were the main criteria that led to Firepro winning?

This award recognized the company’s effort and commitment to continuously evolve and remain a leading participant in our industry segment. The award acknowledges the leadership position Firepro retains and its ability to:

  • Proactively cater to changing customer needs
  • Adopt latest technology
  • Continuously deliver exceptional customer service and
  • To take advantage of market opportunities through the execution of innovative strategies

 

5. You are operating across international locations. Can you share your experience of setting up the infrastructure business in these locations?

It’s been an eventful journey expanding our operations. In Australia, we were fortunate to hire the right leadership team and they provided a great deal of support from the day we began operations. The Victorian TC government was very helpful and we were able to set up operations in Melbourne within 3 days. The Information and Broadcasting Minister of the state launched the company which further enhanced our credibility in the market. We were able to meet our all our targets, owing to the team’s efficiency. We plan to expand further to Sydney and Brisbane soon. Middle East was all about speed and scale of operations! Although it took us longer to establish operations there, we have successfully entered the market and are providing solutions to many large-scale projects. Within a year of establishing operations, we have today 135 committed team members. In Singapore we started operations in a day’s time - the Government was very supportive again.

We intend to leverage the learning from our overseas experiences into the Indian business, further strengthen our process efficiencies, enhance our ability to tackle contingencies, and also increase our speed and scale of operations!

 

6. Firepro is highly customer focused. What would “Customer focus” mean in the context of Firepro’s business?

We believe that one of our biggest strengths against any other competition is our ability to be committed to our clients from day one of our association with them. The solutions offered are customized to meet their needs and are of world-class quality. We are in a position today to complete the entire project as per the specified deadline. This ensures that the customer’s plans are completed well within their project timelines as well. We center our service offerings and operations on customers’ evolving needs which further enrich the “customer experience”.

 

7. How have you instilled customer orientation among all employees?

We believe that communication is the backbone of any project association. We ensure that the team understands the customer requirements and that from the start it is focused on delivering what was promised to the customer. There is constant reinforcement from management on the customer orientation. We, as a senior management team ensure that our commitment levels are visible to the team. This further guarantees a positive response from the project teams as they are aware that their management team is just as much accountable and focused on delivering customer value. .

 

8. Firepro has been growing at a scorching pace. What may slow the pace of growth in the short term?

The infrastructure market may undergo rapid variations. I wouldn’t necessarily say that this change would slow down Firepro’s pace of growth. Our focus on consistent evolution into different service offerings would enable us to sustain the growth. Economic conditions may not adversely affect business growth, but a certain element of precaution would be taken to face the inevitable.

 

9. Can you share some of the interesting experiences that you’ve had during this successful journey at Firepro?

Yes, there are many such experiences that have changed our business outlook and had an impact on the Firepro’s management team. One such exulting experience was when we received the 2004 ICICI-CNBC Crisil Award in Delhi. We were among 25 companies short-listed. In the management team, we did not pay too much attention to the award among pressing client demands and operations. We were not even remotely aware of the impact the award would have on the entire team. When we (Naren and I) returned from Delhi, the sight was exhilarating! We were completely overwhelmed by the warmth, excitement and celebration at the Bangalore office. We then understood that this award would trigger a greater sense of commitment and passion within the Firepro team. They were proud of the achievement and were proud to be part of this venture!!
      
Another one is how the Firepro team came together to deal with a very tight schedule for a client. The base for us to set up operations was Uttaranchal. Tough terrain conditions required us to focus on details and take into consideration many other complexities. We only had a weekend to work on the requirements-too short a timeframe for us to complete it! Within no time, the word spread. Many volunteers came forth to help, although they did not have the required skills or the background. They rapidly put together the necessary documentation to kick start the assignment. 13 other team members flew to Delhi and worked the whole weekend, hour on hour, to complete the project. To this day, I admire the courage, passion and pride that drove my team to finish an unfeasible assignment on time!

 

10. Is there anything you would have done differently looking back?

I personally feel focusing on building efficient people processes and holding a number of employee engagement activities, which we began only in 2005, would have added value and accelerated Firepro’s growth.

Identify the Industry: Activity Corner; V2 Issue 1

Can you identify these industries?

Some of them are booming, some are struggling and others are yet to take off. See if you can identify these industries in India based on the clues provided below.

    1. In terms of numbers this industry in India is the biggest in the world. Until the late 1990s, it was not even recognised as an industry. Even though it has since been recognised as an industry, banks and other financial institutions continue to avoid the industry due to the enormous risks involved in the business.

    2. Leading companies in this industry spend approximately 10% of its revenue on research and development. India’s share in the global market is less than 2% in value terms as the product prices in India are one of the lowest in the world.

    3. In Indian company took over an Anglo Dutch company to become the 5th largest group company in this industry. Incidentally this is the largest Indian takeover of a foreign company.

    4. Being in its nascent stage, this highly labour intensive industry in India has not been very stable. While the primary work coming to India is through outsourcing work related to films, ads and gaming, the industry is now slowly moving up to the next level of maturity.

    5. India has the fastest growing market in this industry. A global player viz., a British company bought stake in India's fourth largest firm in this industry. Regulatory changes and reforms in the last 10 years have tremendously helped this industry. The rapid strides made by India in harnessing the off shoring opportunity would not have been possible without developments in this industry.

    6. This industry has grown at breakneck speed due to entry of low cost players. But almost all players are making losses. Due to intense competition and declining margins, a process of consolidation has commenced through mergers and acquisitions. This will bring about synergies in operations and optimal utilization of resources in this capital intensive sector.

SOLUTIONS:

    1. Film - Though India’s overall entertainment industry is becoming professional with the rise of TV production companies, India's movie industry per se remains highly informal, personality oriented and family dominated.

    2. Pharma - Overall drugs manufacturing in India is up to 50% cheaper than in western industrial countries.

    3. Steel - Corus was taken over by Tata Steel. Before the takeover Tata Steel was only the world's 56th biggest steel producer and its takeover of Corus represented its first expansion outside Asia.

    4. Animation - India has the potential to be recognized as an animation hub, if education facilities, availability of funds and infrastructure improve. Developing original content that appeal to audiences in America, UK, and Europe will also contribute to its growth.

    5. Telecom - British mobile telecom major Vodafone bought stake in India's fourth largest mobile firm Hutch-Essar.

    6. Airline - Mergers include that of Kingfisher and Air Deccan, Jet Airways and Air Sahara, Air India and Indian Airlines. India has the fastest growing number of passengers in the world. Industry optimists feel that this growth will take care of its current problems.

The Secret: Book Review; V2 Issue 1

Title: The Secret

Author: Rhonda Byrne

Publication details: Simon & Schuster UK Ltd, Great Britain, 2006

Number of pages: 198 pages

If a book starts with an alluring promise of its contents giving you anything you want: happiness, health, and wealth, it is difficult to resist reading further right?  So not surprisingly I could not stop reading the book ’The Secret’. Rhonda Byrne when faced with a very difficult time in her life learned about ‘The Secret’ and overcame every single one of her difficulties using its principles. In gratitude she created a DVD to share this knowledge. When this DVD became hugely successful she created a book by the same name.


“The Secret is the law of attraction." According to this everything in the Universe vibrates on a particular frequency. When you think in harmony with the frequency of something, you attract it to you. If you think about health, you become healthy. If you think instead about your illness, you become more ill. You attract what you think about. It says “It is impossible to bring more money into your life when you are noticing you do not have enough, because that means you are thinking thoughts that you do not have enough….and you will create untold more circumstances of not having enough money. You must focus on abundance of money to bring that to you.”

And the book tells you how you can find out what you are thinking … “To know what you are thinking, ask yourself how you are feeling…. It is impossible to feel bad and at the same time have good thoughts.”  The steps to utilizing this law in life are simple. Know what you want and ask the universe for it. Feel and behave as if the object of your desire is on its way. Be open to receiving it.

A child cured of Hepatitis, Jack Canfield the author of ‘Chicken soup for the soul’ attaining a hundred thousand dollar a year lifestyle from a eight thousand one, a woman attracting the perfect partner by acting as if she already had one… are all inspiring personal examples cited in the book of the power of positive thinking in the areas of health, money, relationships respectively. It provides various tips for practicing ‘The Secret’. Some of them are using secret shifters like pleasant memories to shift your frequency from negative to positive, being thankful and grateful to all that you have, expecting the things you want, creating your day in advance the way you want it to go. For instance for relationships to improve it talks about not complaining about other people but focusing on what we appreciate about others to get more of that from them.

No doubt it is essentially a beautifully packaged and marketed book with ideas on positive thinking that are centuries old. But then there are some things that we know and still need constant reminding. The principles detailed in it are summarized at the end of each of the chapter for ease of reference. The book has pertinent quotes from many sources and contributors -scientists, doctors, life and business coaches and metaphysicians from both past and present.

One flaw I see in the book is that it does not talk about taking action to improve a negative situation. If I am overweight and I keep overeating instead of moderating my food intake and exercising, I doubt whether I will lose weight. Also it does not make sense that innocent people who are victims of tragedies attracted the same. However, you can neither prove nor disprove the law of attraction. It is something akin to faith. If you do not receive what you asked, you know you did not have enough faith. And only you can know it. No one else can.

There it’s not a secret any longer. But to practice this you need to know its nuances which only the book will give you. From getting a cup of coffee to being cured of cancer, the book claims ‘The Secret’ can work for anything. I am beginning to believe in its power. I tried the book’s principles on a few small things and guess what it worked! So it makes me wonder why it should not work on bigger things. All I need to do is tune my frequency to what I want in life. That’s what I am going to do. What about you?

Are You “Really” Planning Your Career? : Feature Article; V2 Issue1

By Vasanthi Srinivasan

Professor Vasanthi Srinivasan is an Associate Professor in the area of Organizational Behaviour and Human Resources Management at the Indian Institute of Management Bangalore. She is an Executive Committee Member of the International Society of Business, Economics and Ethics (ISBEE) and is on the Board of Directors of a few international not-for profit social and non-governmental organizations. Her areas of interest are Career Management, leadership development and HR Management in the International Context. Her consulting work has been in the areas of building capability of HR professionals, performance management and leadership development.She holds a Post Graduate Diploma in Personnel Management and Industrial Relations from XLRI Jamshedpur, and a Fellow in Management from IIM Bangalore.

Many young people acquire degrees because they are expected to. However, very few are clear as to how those degrees tie in to their careers and how their careers enmesh with their lives. This is an insight I gained in the last academic year, while teaching the course titled “Managing your careers and growth” for the MBA students at IIM Bangalore. It was further substantiated by my interactions with participants of Leadership Development Programs for organizations. During the coaching discussions centered on their Individual Development Plans (IDP), participants reflect on their life and career journey, their dreams, aspirations, capabilities, expectations and definitions of success.  I find that many of the young high potential managers have strong achievement motivation ensuring their success in whatever they do. Most of the time, their roles in organizations are determined only by organizational needs and their high achievement orientation ensures they achieve success in their assigned roles. It is only when they have spent about 18 years at work do they ask “Is this what I want to do?” By then, given their life stage, with EMI payments on homes, children going to expensive schools and a certain life style, it becomes difficult to make significant career decisions. Many find it difficult to visualize their career growth beyond wanting to become a CEO before they turn 40. When I ask them “After that what?” most of them flounder. It suddenly hits them that they have another 25 years of healthy working life ahead of them.

 

What does career management mean for individuals today?
Over the last few years, I have been studying career transitions – of my students, of women IT professionals and technology professionals.  Based on my understanding of what is emerging, I’ll attempt to explore the changing definitions of career through four real life stories of individuals that are representative of a large number of individuals that we would have met in our lives. But they are special to me because I have known each one of them for at least a decade.

Story 1: Aakash passed out of a premier management institute in India in 1986 with specialization in HR and Systems. Prior to joining MBA, he did his bachelors degree in philosophy and music. Having had an offer from a blue chip company in the IT sector, he joined them in the systems function and spent the next 19 years in the same company. In 2005, he was promoted as the Head of a business. In 2006, he went part time for a year to give attention to his son who was finishing his school. His wife was a media professional. During this period, he enrolled in an interior decoration course and began to pursue music in earnest. Since 2007, he has quit work and continues to devote full time to music. He often wonders why he took so long to make this decision. 

Story 2: Kalyan, an engineering graduate from a premier institute decided to join the precision engineering industry in 1982. In his career spanning 26 years, he has moved three organizations, each of them with increased responsibility and commensurate compensation. He is highly respected in the organization. But he now feels that after a 25 year career, he would like to give back to society. With both his children well settled, he is exploring the idea of a career in a ‘Not for profit’ organization or in academics. His questions today are: How does one become aware of these opportunities? What is the bridge available for those who want to make significant career transitions?

Story 3: Meghnath, passed out with a Bachelor’s degree in commerce in 2000. He joined a large multinational. In his first year, he was awarded the best performer. In 2002, another MNC starting operations in India offered him an 80% salary increase. He joined them. After spending 18 months with them, he realized that his former employer was a more progressive and a highly empowering company. Wanting to work in a company like that he joined a large Indian company with a formidable reputation.  With an excellent performance track record, he was promoted twice in 20 months. In 2007, another large MNC offered him the role of a Manager with significantly higher responsibility and salary. Though he chose to move to this new organization he is now is unclear as to where he is headed. His family would like him to settle down, but he believes that since he has changed his job recently, he cannot afford the “distraction”. One of his goals is to be the CEO of a company by the time he turns 35.

Story 4: Anita is a project manager in a large IT firm. She has been with the organization for years. She has been assigned good projects, has done two stints overseas, and is growing within the organization. She has bought a flat in Hyderabad. Overall she is happy with her job and the organization. However, her friends tell her that spending 8 years in one organization is not positive for her career. It signifies a lack of initiative and achievement. Having sent out her resume to some recruiters, she has been getting some calls. She is now confused.

With the four stories, above as the context I would like to introduce three interesting streams of thought.

1. What is a career?
Till a decade ago in India, the definition of career was a series of upward moves, with steadily increasing, income, status and power. Individuals also believed that there was only one occupation for which they were best suited. They made career choices when they were young, mostly irreversible.  Increasingly, these assumptions are being challenged.

D T Hall, a career expert, provides a more contemporary definition of career. “The sequence of a person’s work related activities and behaviours and associated attitudes, values and aspirations over the span of one’s life”. This definition is highly individual centered, considers work and non work as critical realms of life, does not imply success or failure and does not have organization as its focus. All the four stories narrated above fit into this definition.

2. What constitutes success or failure in a career?
Career theories define careers from two perspectives:-

  • External or objective: This examines and interprets the same career situation from the institutional or organisational point of view. The objective career is described in terms of designation, position, status, promotion, salary and perquisites.

  • Internal or subjective: This refers to the individual's own interpretation of his or her career situation. The subjective career is linked to internal matters, such as personal meanings and identity. Often people use adjectives such as satisfaction, accomplishment, contribution, achievement and growth to describe subjective careers.

Thus objective careers are tangible, visible to others and comparable. In contrast, subjective career success is in the eye of the beholder; it creates value to self and the individual and is highly perceptual. Therefore, comparability is almost impossible. The critical question each one of us has to ask is “What would career success look like to me?”

3. How do individuals identify their careers?
Career choices are a function of individual interests, capabilities, aptitudes, skills and values. Unless individuals explore these personality elements it is unlikely that they would be able to work towards their potential. It is possible to identify the career/s best suited for oneself through deep career exploration. The definition of subjective career success is one element of career exploration. However, the definition of subjective career success would occur for individuals at different stages in their life. For some it could come as early as the first job. For others, it would evolve over time as they explore multiple careers and know what they don’t want. Interestingly while a large number of people maybe at an identical stage on objective career success; it is the subjective career success which is the differentiator.

With this understanding if we now examine the four stories, we can clearly see that all the individuals were highly successful from an objective career perspective. But it was the subjective career success that Aakash found, Kalyan is in the process of finding and both Meghnath and Anita are searching for.  Is subjective career success a function of life stage? Did Aakash and Kalyan find it because they were chronologically older? Not really. There are a lot of older people in the workforce who may not have sought subjective career success, because it is impossible for them to think of doing so. Similarly, there are a lot of younger individuals who have found subjective career success, even though they may not have attained objective career success. A number of young start up entrepreneurs fall in this category.  

 

Managing subjective career success
India has witnessed an economic boom in the last two decades. This has meant that some sections of the society, especially people like you and me are in an era of abundance. There are plenty of jobs if you are competent. Therefore, many of us can exercise choices. Similarly, with loans becoming affordable, most of us are likely to own properties at a much earlier age compared to our parents. With fairly high salaries, our financial planning is quite robust. In such a context, more professionals are likely to and can financially afford to seek subjective career success. The subjective career success could emerge from any sphere – creating something new, making music, teaching at a primary school, volunteering at an NGO, building a new marketing program or selling a new design. Are we looking for meaning? Many people talk about their “calling” often referring to fundamental, profound, radical or transformational career changes that they have made. They are referring to the subjective career success which gives them meaning.

As a starting point to managing a career you can explore and examine five points:-

  • Are you happy and excited about what you do at work at least 300 days a year?
  • Does an inner voice keep telling you that may be you could do better at work/career?
  • If you were not doing your current job, what would you be doing?
  • Do the power, position, status and salary that you currently earn reflect who and what you are?
  • What is it that you will do when you are fifty or sixty years old that you are not doing today?

 Conclusion
The above questions force us to reflect. Reflection is the starting point in the career journey. Reflection often results in insights. Deep insights lead to career exploration which in turn leads to subjective career success. I am not for a moment suggesting that you look at subjective career immediately. But do start exploring. And when you begin to think on these lines, there is increased scope to engage with your potential. After all, isn’t exploring the human potential the purpose of a human life!!!

Ask the Expert : July'08

1.I work in the marketing division of an FMCG company dealing in ready-to-eat food segment. We have reached saturation as there are various other players with similar product lines. I have a new product idea but do not know how to go about communicating and implementing the idea.

It is indeed great to know that you are keen to contribute original ideas and introduce new products that would benefit your organization. Here are a few things you can initiate to communicate your idea and ensure implementation of the same:-

  • Exploit your company’s competitive advantages -You really need to thoroughly know your company’s unique competencies that are suitable for this endeavor to succeed. Once you have thought it through, you are ready to sell it.
     
  • Ensure support from key stakeholders - To ensure success you need more than an approval from those in charge. You need passionate supporters in management who believe in what you are doing. Once you have identified top-level supporters, establish contact with them. Make a constant effort to keep them updated on your project’s progress so they feel empowered with the latest information and can better advocate your cause to others. But be sure to keep them in the loop on problems, too. Do not sugar-coat setbacks or obstacles to your supporters. You need powerful allies, but it’s just as important to understand how to keep them. Send email updates on your project’s progress to top-level executives, circulate summary documents with answers to FAQs to keep everyone up to speed and interested in the project’s success.
     
  • Enlist support from other departments - In addition to sponsors in the top management, you will also benefit from alliances in mid and entry-level positions, where people develop valuable specialized knowledge. When you are refining product features look to people in other departments for ideas and feedback. When you successfully convince people about your idea, you will be surprised to find out that someone from a seemingly random department might hold the key to unlocking the potential of your business.
     
  • Look beyond quantifiable metrics - A big part of intrapreneuring is selling your idea up the management chain and then convincing them that you are meeting your goals. One of the most powerful moves you can make is deciding what your variables for success are and understanding how to gather data for the same. You might get information from market research and customer surveys. Another powerful way to communicate why your idea is an improvement is by using the words of a customer or employee who is clamoring for it. Do not lose sight of your quantifiable goals, as they will tell you how you are going to achieve what you set out to do. But if you keep the words of your customers in the front of your mind you would not lose sight of the whoand the why of what you are doing.
  • I work for a multinational firm drawing a good salary. Lot is being said these days about intrapreneurship or employees acting like an entrepreneur within an organization they work. Why should I act like an entrepreneur in my current organization when I am only an employee?

We evaluate the worth of work by the benefits that are linked to it and yes, you should get extra rewards for being entrepreneurial. What differentiates Entrepreneurs from other employees in an organization is their passion and conviction for an idea - Intrapreneurs are more driven, want to see their ideas implemented and tested with the ultimate success criteria – will someone pay for their product / solution.

You need to prove first that you are entrepreneurial – only then the rewards will come. Also, each individual has the entrepreneurial mind set in varying proportions – at the high end is the person who puts aside a good career to become an entrepreneur while there are others who would not like to risk running a company of their own but have ideas which they would like to nurture and implement in a Corporation. That is the difference between an Entreprenuer and Intraprenuer.

The benefits of being an Intrapreneur include the following-

  1. You will ave gain visibility within the Company and progress quickly to maybe having P&L responsibility for your Product / Solution. Since you explore unconventional routes to complete your tasks, are proactive and do not restrict yourself to a single stream of work, you will prove your uniqueness to your peers, subordinates as well as your manager and stand out of the crowd.
  2. Unlike when you are on your own, as an employee acting intrapreneurial you will get a safety net should an initiative of yours falter. If the intrapreneurial effort fails, you will still have a job tomorrow and get another chance to implement another idea as long as you learn from the mistakes made.
  3. It is not easy to gain access to resources required when you are on your own. As an intrapreneur you can utilize talent from within the company, tap into management skills, leverage existing technologies etc to work on your pet idea and make it a reality.
  4. It will make you proud to walk on a path that is less traveled ie., do something different and courageous.
  5. You will have the satisfaction of being an inspiration for other employees and other employees will look upon you as a source of strength. They will seek your advice and value your inputs.
  6. You will get a chance to unveil your creative self. You can implement out of the box ideas at your work, which would make work itself more interesting.
  7. You will look forward to each working day for the empowerment, freedom and satisfaction you derive from work making it an enjoyable experience


2. I have a team member who wants to be an Entreprenuer. How do I channelize her energies and ideas, so that she contributes positively to her role, today?

You are lucky to have her as your team member. People with an entrepreneurial bent of mind can contribute a lot to the organization. All you need to do is take care that you do not stifle her creativity or need for freedom and autonomy.

Encourage her to be proactive in identifying improvement areas in your department and work on them. Check out if she has a new product, service idea that aligns with the organization vision and goals. If you can get her to convince top management and get the company to provide her the resources to implement that idea then there is nothing like it. She will be able to become an entrepreneur without having to the leave the company and the company will gain in terms of being able to offer a new and better product/service to its customers. But this may not be possible always. So instead give her assignments that will help build her entrepreneurial skills. Let her be part of such assignments from the conception stage till the final execution. If financials need to be worked out and a team needs to be managed, the better it will be for her. An entrepreneur has to be comfortable with all areas of running a business ie., managing of people, money and the operations of the product/service delivery.

Such people like treading on a path which others have not taken. So put her on assignments where the rules are not clear, where there are no tried and tested ways to succeed and where one needs to innovate. She will enjoy the challenge and is more likely to succeed than others since she will not give up very easily and think creatively to identify ways to tackle setbacks. Entrepreneurs have high risk appetite. So encourage her to take calculated risks in her work.

Another way you can channelize her energy for the company is by assigning her some team members with low initiative, passion, and energy to work with her. Her passion may get rubbed off on them and she may be able to inspire them to become more resourceful and enthusiastic at work.

Disruptive Innovation : Management Funda; July'08

What is it?

The term ‘Disruptive Innovation’ first appeared in the 1997 best-seller ‘The Innovator’s Dilemma’ by Harvard Business School professor Clayton Christensen. Disruptive innovation is an innovation that improves a product or service in ways that the market does not expect. It disrupts the market and forces other competitor companies to radically change their business or face serious consequences. It can be of two types:-

  • Low-end : This is typically cheaper or simpler to use version of an existing product that targets low end customers. 
  • New market disruption: This addresses an entirely new set of customers in the same product space.

When a Disruptive innovation is made, usually by a new entrant, an established company, instead of retaining its share in a not so profitable segment, tends to move up-market and focus on its more profitable customers. Eventually the disruptive innovation meets the demands of the most profitable segment and drives the established company out of the market. A good example is producers of downloadable Digital Media disrupting companies producing CDs. File sharing technologies, were initially free. Then came inexpensive online retailers such as the iTunes music store. This low end disruption eventually undermined the sales of physical CDs. Similarly, Google.com has disrupted online advertising and created a new revenue stream by placing highly targeted text ads besides the search results of its search engine. In contrast a Sustaining Innovation seldom causes the downfall of established companies. It improves the performance of existing products along the dimensions that mainstream customers value. For example Contact Lenses as an improvement over Eye Glasses.

Examples of Disruptive Innovations

Disruptive innovations can happen in a process or a business model too. Dell’s adoption of just-in-time delivery for its computers’ electronics parts, substantially cutting warehousing and depreciation costs is a process disruptive innovation. Disruptive innovations have been demonstrated by no frills airlines with their low-cost business model allowing them to strongly compete with established airlines. So how does one know one is making a disruptive innovation?

Determining if an innovative idea is Disruptive

Step 1: Firstly explore whether the idea can become a new-market disruption by determining…

  • Whether there is a large population who historically has not had the money, equipment, or skill to use it themselves and as a result went without it altogether or paid someone with more expertise to do it for them?
  • Whether customers need to go to an inconvenient, centralized location to use the product or service?

Step 2: Then explore the potential for a low-end disruption by determining…

  • Whether customers at the market low-end would be happy to purchase a product with less, but good enough performance if they could get it at a lower price?
  • Whether a business model can be created that enables to earn attractive profits at the discount prices required to win the business of the over served customers at the low end?

Step 3: If the idea passes the new-market or low-end disruption test, finally determine…

  • Whether the innovation is disruptive to all of the important existing players in the industry? If it seems to be sustaining to one or more of them, then that player has an edge, and the entrant is unlikely to win.

But what if it is not your company but your competition that is making the disruption, how will you deal with that

Dealing with Disruption from competition

Let’s examine the reasons companies fail to counter competition from disruptors effectively. They are:-

  • Tendency to listen to and focus too much on its main customers failing to recognize potentially disruptive innovations that serve only marginal customers.
  • Not taking Disruptive products seriously since they compare badly with existing products.
  • Not being interested in deceptively small markets typically available for a disruptive innovation compared to the market for the established product.
  • Even if a disruptive innovation is recognized, reluctance to take advantage of it, since it would involve competing with one’s existing and more profitable technological approach.

In order to address these problems companies can adopt the following two approaches:-

  • Chase the market: Create small independent business unit to cater to the emerging market and at the same time continue to push technological demands in your core market so that performance stays above what disruptive technologies can achieve. Quantum Corporation, a leading producer of 8-inch drives was not sure what applications 3.5-inch drives could have in the computer industry. Instead of shelving the project they created a spin-off unit to develop 3.5.inch drives. After 10 years the 8-inch market had completely disappeared while their small venture had grown to become the world’s largest disk drive producer.
  • Find new market based on one’s expertise: When it became clear that digital imagery would forever change the photography market, Fuji not only began producing digital imagery products but also identified numerous opportunities for using its photographic chemicals knowledge.  

Conclusion

To sustain and grow a business it is imperative that one not only makes disruptive innovations but also detects them early enough in one's competitive landscape. So, next time you brainstorm on generating revenues for your company think of how your competition is possibly disrupting your business or better still how you can innovatively disrupt your competition. And needless to say this will be one disruption that your company is going to welcome!

Reference

  • Disruptive technology’, http://en.wikipedia.org/wiki/Disruptive_technology
    Scocco, D, ‘Disruptive Innovation’, October 04, 2006, http://innovationzen.com/blog/2006/10/04/disruptive-innovation/.
  • ‘Key Concepts - Disruptive Innovation’, http://www.claytonchristensen.com/disruptive_innovation.html.
  • Osterwalder, A, ‘Designing Disruptive Innovations’, November 28, 2005,http://business-model-design.blogspot.com/2005/11/designing-disruptive-innovations.html.
  • Baumgartner, J, ‘The best strategies for dealing with disruptive innovation’, 8/29/2008, http://www.innovationtools.com/Articles/EnterpriseDetails.asp?a=340
  • Patrick, ‘What is Disruptive Innovation?’, 1/08/2005, http://www.brinq.com/workshop/archives/2005/01/08/what-is-disruptive-innovation/

Employee Speak: Pradeep Kar, Chairman and Managing Director, Microland : July'08

Pradeep Kar is the Founder, Chairman and Managing Director of Microland, a company recognized as a key player in the Remote Infrastructure Management Services space by the top three outsourcing industry tracking entities in 2008. A visionary and industry pioneer, Pradeep leveraged the power of networking and e-business technologies long before they were recognized as critical business enablers when he founded Microland in 1989. Under Pradeep’s leadership, Microland has emerged as a leading Indian pure play IT Infrastructure Management Services Provider. Pradeep’s philosophy of driving business transformation by leveraging Remote Infrastructure Management, with a strong customer driven service perspective has enabled Microland to grow to 12 locations, 8 Operation Management Centres and 2300+ people.
A serial entrepreneur, Pradeep founded and successfully sold technology companies Planetasia.com, India’s first Internet Professional Services Company, Net Brahma Technologies and Indya.com, India’s leading portal, which he sold to Rupert Murdoch’s News Corporation. Pradeep sits on several boards and is the President of ‘The IndUS Entrepreneurs’ (TiE), Bangalore Chapter and the Founding Member of the Bangalore Chapter of the Young Presidents Organization. Pradeep’s leadership acumen has been recognized with the Indian Express’ ‘India Young Business Achiever Award’ and he has been selected by the World Economic Forum as a ‘Global Leader for Tomorrow’. He holds a postgraduate degree in Management and a Bachelor of Engineering degree.

 

  1. How did the entrepreneurial journey evolve for you? What got you started?
    The entrepreneurial bug hit me very early in college. I got fairly clear then that I wanted to be on my own. Post my engineering and MBA degrees; I joined Wipro, which in my mind was a start-up journey. It was in the early years of Wipro where everything that needed to be done had to be entrepreneurial. Then I went and joined a start-up company as the 3rd employee and we built India's first computer retail chain – namely Computer Point. The owners of Computer Point then sent me to the US to set up a software company which is now known as Sonata Software. I was fortunate that my entire set of experiences was entrepreneurial in nature and I learnt a lot in the process.
     
  2. How is the entrepreneurial spirit sustained now that you are running a large organization?
    I still think that the entrepreneurial instincts in me continue. While we are a larger company today with 2300+ people, we are very much entrepreneurial in nature. There needs to be systems and processes to run larger organizations. But our approach to each has an entrepreneurial flavour built in. Individuals and teams have full flexibility to drive change, innovation and deliver on results and in many cases paint their own canvas within the corporate objectives and guidelines.
     
  3. How can the entrepreneurial spirit and culture be owned and practiced by individuals performing corporate roles?
    Entrepreneurship is usually associated with new company formation. But the entrepreneurial spirit that drives individuals to start a new organization, bring in new products/ services in the market can do wonders for the growth of an existing organization. Individuals can imbibe the following aspects in their corporate roles to practice the spirit of entrepreneurship within an organization:
     
        • Drive Innovation: Individuals should thrive for constant innovation at their work place. New business can be created by undertaking product/ services, process, technological and administrative innovations. Individuals should also consider renewal of key ideas on which the organizations are built.
           
        • Embrace Challenge: Every organization and every work place has pain areas. The challenges that arise in resolving these pain areas would be daunting and tedious to many. Individuals should identify these pain areas, volunteer to take ownership of these challenges, chalk out a plan to address them and demonstrate competence by successful execution.
           
        • Be passionate about every aspect of your work: Not all the tasks associated with the work would be extraordinary or out of the world. There could be mundane and repetitive tasks. An individual should always strive to perform each of the tasks flawlessly no matter however trivial they may appear.
           
        • Place high priority on your work when needed: There would be occasions when there are crisis scenarios at your work place which may require an individual to make some personal sacrifices. One should always be willing to act in the best interest of the company in those times regardless of the inconvenience to oneself.
           
        • Work towards accomplishments: Individuals should measure themselves based on their accomplishments and contributions made to the organization. One should be outcome oriented and should clearly outline the difference that one is making to the growth of an organization.
           
        • Embrace change: In the workplace, one may find scenarios where there are changes in processes, systems and organization structure. Individuals should be ready to adapt to any change that comes and lead the way for others.
           
        • Be a leader: Individuals should not wait for their supervisors or their colleagues to give them directions. They should strive to be the first one who tries something new and encourages others to follow suit. One should motivate others to work harder and make every effort to bring the best out of everyone around.
           
        • Be autonomous: An individual may have a brilliant idea. The success of the idea lies in
          its implementation and execution. An individual should act in bringing forth an idea or a vision and carrying it through to completion.
           
        • Organization support to individuals with entrepreneurial spirit: All the above mentioned aspects can be practiced and become effective only when the leaders of the organization provide a favourable environment for the same. Organizational leaders should encourage innovation in the organization and provide freedom to individuals to operate strategically in unstructured situations and to challenge the status quo.

Intrapreneurial Mind Set v/s Establishment Mind Set : Activity Corner; July'08

Every effective employee has Intrapreneurial/Entrepreneurial traits that may or may not culminate in an Entrepreneurial life.

To determine whether you have an Intrapreneurial mind set read the following statements and indicate whether you agree more with choice A or choice B. Choose responses that come closest to how you usually feel or act. There are no right or wrong responses.

 

Scoring Key

Tick the option you have selected in each of set of statements.

Give 1 point each for each tick. If you have more points in Intrapreneurial mind set you lean towards having an Intrapreneurial mind set. Similarly if you have more points in Establishment mindset you lean towards having an Establishment mindset.

Intrapreneurs and Entrepreneurs are people who focus on innovation and creativity and who transform a dream or an idea into a profitable venture; either by operating within an organization or by starting up their own venture independently. In contrast some individuals prefer stability, security and the status of being in their chosen field in the organization they work for and strive to succeed by operating within the organizational environment.

Note: The above questions are compiled based on an interview excerpt of Mr.Gifford Pinchot who invented the term ‘Intrapreneurship’ (http://www.sandyross.ca/portfolio-me-inc.pdf) and an article by Vimarsh Bajpai, Senior Assistant Editor, DARE magazine, CyberMedia (http://www.dare.co.in/strategy/business-essentials/where-the-mind-is-without-fear.htm).

Stay Hungry, Stay Foolish : Book Review; July'08

Title: Stay Hungry, Stay Foolish

Author: Rashmi Bansal

Publication details: CIE, IIM Ahmedabad, India, 2008

Number of pages: 325 pages

There is a way to become successful and derive personal satisfaction from your work. Just bring the same kind of energy and passion to your existing job that you see entrepreneurs featured in the book ‘Stay Hungry, Stay Foolish’ exhibit in their work. The book narrates the fascinating stories of 25 IIM Ahmedabad graduates who at some point in their life started their own companies. These entrepreneurs belong to diverse industries like IT, Retail, Finance, Consulting, Agriculture etc and IIMA batches ranging from Class of 1970 to Class of 2004 and they started out at different stages of their careers. The one thing they have in common is their ability to dream big and pursue their dreams.

We get the inside view of how a business like Edelweiss Capital or Mphasis was born and built and in the process we gain an understanding of some of the hardships, experiences, challenges faced by an entrepreneur. Be it the story of Vinayak Chaterjee’s Feedback Ventures morphing from a market research company to India’s leading infrastructure advisory and engineering firm or Deep Kalra’s story of building India’s leading travel portal makemytrip.com, each of the stories are equally unique and prove there is no consistent formula or strategy for success. So while small is beautiful without scale the actual vision cannot be realised and while it pays to ride a wave in an upturn, belief in one's ideas is as important to see through the trying times. And yet there are some common threads. The entrepreneurs evaluate “Is the business inherently scalable? Is the market opportunity large enough?” They “... are smart people, they manage the risk-reward equation very well.” They do not give up. They build teams that can sustain the business.

Most of them thought innovatively or differently. Some of them ventured into nascent spheres like schooling (Eklavya’s Sunil Handa), online trading (India Infoline’s Nirmal Jain) etc. Others like Naukri.com’s Sanjeev Bikhchandani and Renuka Sugar’s Narendra Murkumbi, who built wealth for poor farmers, nurtured ideas that were well ahead of time.

The book also looks at alternate models such as social entrepreneurship exemplified by Vijay Mahajan who pioneered the concept of microfinance in India through his organisation ‘Basix’ And then there are those who believe they can be entrepreneurs without necessarily being 'owners’. An example is S B Dangayach who is not the owner of Sintex but works like one in every sense and was behind the iconic Sitnex water tanks.

Written in a conversational format, the author, Rashmi Bansal an IIMA alumnus herself, thinks aloud before having a conversation with an entrepreneur. We then get to hear about the vision, struggle, team building, success story and advice for young entrepreneurs in the very own words of the entrepreneurs. So it’s no surprise that the book is filled with gems like “Become extremely conversant with finance especially if you are going into some form of a fairly complex, large type of operation.”, “Base your business on deep customer insights.”, “There is no point in merely saying we are all a family. We have to believe it, we have to show it, we have to behave, we have to walk the talk.” and “In every business the more you know about the grassroots the better”. With its liberal use of Hindi (“Dil mein Chaah to niklegi raah”) the book makes you feel proud about the fact that it’s not just the story of successful entrepreneurs but Indian entrepreneurs. This is a must read for all young MBA graduates and a “treasure” for all those who are looking for inspiration to counter the feeling of “What I am doing at work is just not enough, But really, what can I do?”