Guess the "Turnaround Company": Activity Corner; V2 Issue 3

Guess the ‘Turnaround Company’

There could well be a million ways that a company's profitability graph can take a down swing and it can fall in the red. The introduction of new competitors could change the commercial landscape. Fresh business processes mayhave bypassed standard industry operating procedures. Acquired units might have failed to integrate effectively. Executives could have been caught with their hands in the cookie jar. No matter the reason, the turnaround is a catch-all phrase that captures what usually happens next, a term that mostly signals that there is light at the end of the tunnel. A decent chance that corporate leaders can right past wrongs and brighten dim-looking futures.

Guess which ‘turnaround’ organisations are featured in the clues below:

1. This Car Company's growth became stagnant and it moved into a low-market situation in 1982 after its Chairman’s departure. The turnaround centred on a four-year planning and production program for their "European-like" Taurus mid-market line of cars, which eventually won "car-of-the-year" accolades.

2. Restructuring the company by laying off workers and eliminating management jobs, the CEO redirected the productive thrust from electrical manufacturing to high technology, eliminating or selling businesses such as house wares, developing such others as plastics, medical imaging and financial services, and seeking "integrated diversity" by acquiring companies, notably RCA in 1985 for $6.28 billion in cash.

3. Since the 1880s, this organisation has been a name synonymous with photography. But in the 1980s this corporation faced unprecedented challenges from competitors. For the first time, they failed to meet their profit goals and faced a do-or-die situation. Team Zebra succeeded not through new technologies, but through a new commitment to their inner resources that unleashed creativity, risk-taking, teamwork, and excellence. It pulled off "the turnaround of the decade" and reminds us that the power to succeed lies within our people and the way in which they're inspired, motivated, and included.

4. Exclusively patented copying machine fell monumentally behind world competition by early 1980. However due to it’s strong leadership and a successfully executed program of product and service quality, it became "the first major American company targeted by the Japanese to regain market share from them." A strategy that contributed to their resurrection was introducing quality based on customer satisfaction and an unusual manufacturing and marketing concept.  The company slashed assembly costs by almost 50% while doubling output and improving performance using innovative production techniques and greater receptivity to new ideas.

5. The basic plank of the turnaround of this Indian public service transportation enterprise was its shift towards market orientation and customer focus.  Some of the strategies adoptedto control costs were retrenchment, improving efficiencies, outsourcing and technology upgradations, non-politicizing of the decision making process which turned around this organisation from loss to profitability.

6. This Indian beverages company used debt restructuring to reduce interest costs and injected funds where possible to replace high cost debt.  It also acquired a firm with global retailing operations that were complementary to its domestic operations and therefore succeeded in steering the organisation towards profitability.

7. Acquiring the commercial vehicles unit of a bankrupt Korean firm, and enhancing its product portfolio this Indian company’s net profit zoomed to 163% when it was able to profitably use Korea as a base for exports to the Asian markets.

8. This Indian auto components maker acquired a loss making European re-manufactured engines firm and turned it around with better cost controls.  Its main aim was to get hold of order books and then shift production to India to bring about cost economies.

SOLUTIONS

1. Ford Motor Company
2. General Electric Corporation
3. Kodak
4. Xerox
5. Indian Railways
6. Tata Tea (acquired Tetley)
7. Tata Motors (acquired Daewoo commercial vehicles unit)
8. Continental Engines (acquired ATK Vege Motors, Europe)

Managing in Turbulent Times: Book Review; V2 Issue 3

Title: Managing in Turbulent Times

Author: Peter F Drucker

Publication details: Harper Collins Publishers, 1980

Number of pages: 256 pages

After spending weeks looking for a relevant book Managers could use in these tough economic times I found this prophetic and seminal book ‘Managing in Turbulent Times’ by Peter F. Drucker, considered by many to be the most influential and widely read authority on management. Even after 25 years after its publication, the book is relevant because of its classic wisdom on running a business, in good times as well as bad times.

The book starts by asserting that in turbulent times the fundamentals have to be managed well. It explains what according to Drucker managing the fundamentals entails. An enterprise's figures should be adjusted to inflation, liquidity and financial strength must be put before earnings; the decline of productivities (of capital, time, knowledge, physical resources) must be reversed and the costs of staying in business tomorrow must be earned today, regardless of "record profits."

Drucker then provides actions and long term strategies that will ensure a company's capacity to survive a blow, to adapt to sudden change, and to avail itself of new opportunities. Strategies include concentrating resources on results by knowing the performing and productive resources; sloughing off (abandoning) of resource devouring and unproductive past; deciding how much to grow so that a company does not become marginal in its market; making existing companies especially large ones capable of innovation; and business strategies like being the right size or deciding when to diversify and how. Drucker recommends a scorecard for managers that assess performance in a)appropriating capital, b)people decisions, c)innovation and d)strategies versus performance.

The book then elaborates upon the realities of the new economic, social and political environment and how they can be managed. He discusses a range of topics including cheap imports, multinational corporations, technological change, employee participation, changing population demographics, and global markets. His commentary on recession throws up some interesting possibilities for managers to consider in current times of economic slowdown. For example he narrates how when American mass builders, thinking people cut back on housing during recession, in 1973-74 started making “basic home” without the frills, they did not sell at all. On the contrary spending on housing increased. Same was the case with eating out. He says this is because there is a new market segment that is linked to population dynamics rather than income. I like the way Drucker issues various challenges to managers throughout the book. He says, “The manager..will have to learn to create “issues”, to identify both the social concern and the solution to it, and to speak for producer interest in society as a whole rather than for special interest of “business”. 

The book is full of tips on how to implement the strategies recommended. “Any increase in volume that leads to reduced productivities…should be eliminated..”  He covers different economies - developed and developing; different companies; different periods to illustrate what is working and not working. Drucker has solutions to the challenges associated with each of his own prophecy. For instance about the workforce he predicted it becoming heterogeneous, knowledge workers seeking a second career in their sixties and seventies etc. He says as a step towards managing “labor forces” each with different needs and characteristics, acknowledge these differences in connection with work policies, training programs and benefits. So a woman whose husband’s company provides health insurance for family, may value benefits other than the health insurance benefit.

This book is not easy reading and you will need to budget couple of sittings to understand and assimilate the content. But then nothing worth having comes easy. It is relevant for managers grappling with various management issues and for management students aspiring to become managers.

Recession proofing your business – Going beyond Cost cutting : Feature Article; V2 Issue3

There is a dip in profits. Budgets are getting smaller. Company stock prices have plummeted. Recruitments are slowing down. Demand for goods and services are falling. Are we or are we not in a recession? While the debate is still on, business managers cannot afford to simply wait doing nothing. It’s prudent to start taking appropriate measures to recession proof your business at the earliest. Use this time to become a leaner, more cost-effective and more efficient operation.

Recession proofing your business must start with remaining a cost effective enterprise through the current downturn.  I am sure your company must be already on to cost management measures like conserving cash, minimizing inventories, monitoring cash flow, making purchases wisely etc. While it is important to manage your costs it is equally important to manage other areas of your business to outsmart your competitors in times like this. Let’s look at what you as a manager can do.

Beyond managing costs
Needless to say you must do all you can to effectively implement in the department, unit or team you are managing, the cost management plans developed by your finance team. But look beyond that to manage recession.

• Adapt quickly: This is an obvious one. When conditions change you can survive only if you adapt to them. Review the area of business you are managing and see how you need to adapt it to it, not only to combat problems but also seize opportunities. You may have to modify your selling strategy or change your employee engagement plans or take a re-look at your sourcing channels.

• Stick to your long-term vision: Your long term vision tells you the reason for your business’ or department’s existence. Reconnecting to that vision will help you stick to your long-term approach and keep you going even though you are tempted to adopt short term measures.

• Sharpen focus on business plan: Your team will look to you for company, department or team priorities. A clear business plan, an appropriate team structure, streamlined processes, the right performance measures, accountability system and rewards are extremely important in times of uncertainty. Make adjustments to how you recognize people during these times. You need everyone to be focused on revenues and costs.

• Get aggressive in the marketplace: Continue actively selling and marketing your product or service. Consider adding a salesperson or even an additional service to give you an edge over competition. Being in front of customers or vendors builds confidence that you are a long term player. You can gain market share from competitors unable to adjust to shifting market conditions. Similarly don’t stop recruiting altogether. Ensure company presence in the recruitment market by continuing recruiting. You would want to retain recall of your company among your prospective employees.

• Provide quality service/products: The buying power or willingness to spend is lessened during tough economic times. So to build your customer base and induce current customers to raise revenues, it is importance to provide good service/product. Don’t compromise on service or product quality especially by being understaffed. Instead of hiring full time employees, explore other options like freelancers, consultants and part-time employees. This holds true for not only external customers, but also internal ones.

• Keep your people engaged: Your most valuable assets are your team members and to get the best of them, you need to keep them engaged. Anxiety levels among them can be high in tough times. So make sure they understand that you are building a lasting and successful enterprise and that some of the cost cutting measures, including layoffs, are necessary for the health of the company. Make your people part of the solution by involving them in initiatives related to cost cutting etc. Avoid widespread cost cutting and layoffs that can undermine employee morale. Disengaged employees can weaken competitive position, endanger future profits and increase turnover inducing star performers to leave. And this is definitely a time when you need your stars to help you figure out things.

• Train your team members: While you may think it is wise to cut down training expenses, experts say this is a good time to invest in training especially on-the-job and cross training. This will also engage employees and help you get ready to take on the market when conditions improve.

• Improve productivity: Monitor and improve productivity levels. Get more out of your team by helping them focus on the right deliverables. Use technologies that enable you to eliminate inefficiencies and reduce costs.

• Maintain strong relationships: While maintaining good relationships is important at all times, during a slowdown one may forget to do so. Don’t!

  • Customers –Did you know the costs of acquiring new customers are up to five times those of maintaining and selling to existing customers? Hence allocate resources to strengthen relationships with your best customers. Being close to them will also alert you incase competition is trying to acquire them as their customers.

  • Suppliers – Even though you may shop for cheaper sources of raw material etc, do not cut off all relationships with existing suppliers. Let them still fulfill part of your need. You do not want to antagonize them since you never know who you may need in future.

  • Banks – Banks are looking for business to boost their income, but are also trying to minimize risk. They are careful about what kind of loans they give. Assure them of your financial position so that they give you an ‘over draft’ facility when required etc. However, seeking additional credit during a recession is not advisable.

• Be prepared for economic recovery: During the 1990 -1991 recession, Dell perfected its demand-pull production system, and Intel launched its “Intel Inside” branding campaign. Both companies emerged as stronger competitors and grabbed the largest share of profits in their industries over the following years. If you have viable business idea, invest in it, maybe conservatively, but do invest. This is the time to look out for talent, physical assets that were not available to you earlier. A friend of mine working in a financial company tells me every second day he gets a CV of a talented financial professional. This was unheard of in the past.

• Think long term:  In every aspect of the business think long term. For instance though every rupee saved is a rupee earned, you should be careful while cost cutting. Very often we tend to focus on immediate, piece-meal remedies and ignore the long-term implications. But wise cost management is not only about reducing short-term costs but also achieving lasting competitive advantage. Your business must incur costs to remain competitive - costs of attracting and retaining talent, costs of research and development, costs of building your company’s brand and maintaining company infrastructure.

Doing things differently, some examples….
If you thought cost cutting, reducing reliance on financial sectors or US markets and layoffs are the only measures being undertaken by companies, you are wrong. This is a time to think afresh and get creative on running a business. Check out what some companies are doing or have done differently to manage recession.

Conclusion

Of course what may work for other companies may not work for your company. Figure out what does. What is important is that you take a holistic approach and manage all aspects of business effectively. That way your company will be better positioned to do well when the economic conditions improve or you may just find for example that when business picks up you have client orders, but no talented employees left to execute them. Also remember the lessons learnt during recession. They can be valuable to you even in good times. All the best!

References

1. Legge,B, ‘Managing During the Recession’, http://www.leggecompany.com/Managing%20During%20the%20Recession.pdf.
2. ‘Survival Tips for Managing During an Economic Downturn’, http://www.sba.gov/idc/groups/public/documents/ri_providence/ri_econ_survival_tips.pdf.
3. Sujan, S, ‘Ten Tips For Startups To Ride Out The Economic Slowdown’, October 27, 2008 ,http://www.vccircle.com/columns/ten-tips-for-startups-to-ride-out-the-economic-slowdown.
4. Radjou , N, ‘Recession-Hit Indian Firms Experiment with New Innovation Strategies’, November 7, 2008 , http://discussionleader.hbsp.com/radjou/2008/11/recessionhit-indian-
it-vendors.html?cm_mmc=npv-_-DAILY_STAT-_-NOV_2008-_-STAT1107.
5. McGregor ,J, ‘Managing Employees in a Downturn’, November 3, 2008, http://www.businessweek.com/magazine/content/08_44/b4106051107138.htm.
6. Kumar , D, S, ‘Economic Slowdown: Consumer durable companies put up a brave’, October 27, 2008, http://www.afaqs.com/perl/news/?sid=22479.

Ask the Expert: V2 Issue2

1. My team members who belong to the twenty years plus age group just don’t take the initiative to get their work done. It is irritating to constantly tell them about the tasks they need to complete. They really don’t seem to have the work ethic that my older team members do. Please tell me how do I get them to show accountability for achieving their goals and objectives?

The work ethic of earlier generations was different. Typically, they were intrinsically motivated. They worked for work’s sake or because their self-image was based on their careers. The current generation has different work ethics. Most are not motivated by threats of punishment or firing. The good news is basically Gen Y is keen on performing. They have already been exposed to a performance culture. But they are used to their parents managing their schedules and activities. Getting them to drive their own performance will require guidance from you as their manager.

Spell out tasks to them clearly even the smallest of details. Do not expect them to understand what seems obvious to you. Demonstrate clearly to them the purpose of all tasks. Explain the business priorities, the big impact of what they are doing, especially for those tasks that may seem less interesting to them.  Regularly reiterate priorities since typically new and exciting projects grab their attention regardless of their priority status. Ensure there are easy systems in place for them to understand from you about their progress or for you to follow up with them. 

Get excited about the tasks with them to push them to take action. To ensure their energy stays high, keep up the excitement. Provide lots of performance feedback.  Coach them and provide them training and development opportunities to help them increase their expertise.What works with the current generation is setting short term goals with an end reward. Most importantly get to know them and their needs, even personal ones better. (Do read the article in this issue about understanding Gen Y.) Find out what is it that they are expecting to get out of their jobs? Link the benefit of doing a task with what they desire in a job.

2. In my team, I have people belonging to both Gen Y and earlier generations.  How do I get them to work together effectively with their diverse styles?

Conflicts between generations arise due to the perceptions they have of each other. For instance, older generations may think the youngsters in the workplace are lazy. While the Gen Y may think the older generations are too rigid. But there are ways to get people belonging to different generations to work together.

• • Encourage them to draw upon each other’s strength: Help your team members understand each other’s strengths. Then focus on leveraging those strengths for the team’s benefit rather than becoming unproductive as a team because of value differences. While allocating work, team up people from different generations who enjoy spending time together and learning from each other. So an experienced person can share his/her wisdom about the organization or the functional field with a Gen Y in exchange for knowledge on the latest in technology.

  • Build on the common values they share: All of them want a culture of empowerment, regular and constructive feedback, to be treated with respect, high commitment to the task from their colleagues and honesty in relationships. So create an environment which encourages these.

  • Focus on the team objectives: A great team is one which has great teamwork. Regardless of the generation each team member belongs to, get all of them to identify with the common team objectives and get them thinking on how is everyone going to work together successfully to achieve the same.

  • Allocate tasks based on what each generation likes:  So for example it may be good idea to give the “research on new things” part of the project to Gen Y while others focus on figuring it out how to practically implement it.

  • Have team norms but provide flexibiltiy on how each one wants to learn and work: Some generations are looking for handwritten notes. Others do not like to work independently, and they expect to have meetings any time, any place. Some generations will not entertain hearing about the project outside of work. And the Yers don’t want any meetings at all, they only communicate via voice mail and e-mail. Treat and manage them as per individual needs and not the same.

3. I am bright. So I am able to finish the tasks assigned to me fast. My other team members are slow and perhaps need to stay late beyond office hours. But not me. But my manager does not get it and expects me to be in office late? I am unable to meet my other commitments in my personal life because of this. What do I do?

I know how frustrated you must be feeling. If you think this is a temporary phenomenon then adjusting to this maybe the best thing to do. If not, talk to your manager. Maybe your manager has his reasons for expecting you to stay up late. Try and find out before you talk to him. Is the project running late because of which you need to put in extra effort for sometime. Have you not completed tasks assigned to you on time in the past? Is he the kind who thinks face time is equal to quality and quantity of work? Does he want you to be with the team and help them with their workload? Does he belong the generation for whom work is everything and who thinks it should be the same with others?

Also until one proves oneself it is difficult for anybody to assess your capability. Maybe your manager does not realize that you are smart. Why don’t you request for a review of the work done so far. Let him see the progress you have made. I think once you prove you can do good work in less time, he will not feel the need for you to work late. During the review ask him if he has anything else that he had in mind that he wanted you to complete.  Indicate to him the other commitments in your personal life and how you hope to meet them. Have a frank discussion with him/her on how they have been affected because of work.  I am sure he will be more understanding about your work hours thereafter.

In addition to getting an OK from your manager on leaving office once you finish your work, there is an important thing you must to do. If other team members are genuinely struggling with their work you should help them out. After all what are smart team members for?

References

1. Burgess, P, “Leading Generation Y”,http://www.selfgrowth.com/articles/Leading_Generation_Y.html.

Social Networking – Changing the Context of Doing Business: Management Funda; V2 Issue 2

You find a perfect candidate for the new role in your department. You get insight into the management philosophy of your competition. Your company gets publicity.  All with some clicks of your mouse! Without attending networking conferences or exchanging business cards! Welcome to the new form of networking - social networking!

How does social networking work?

In general this is how social networking works…

1. A website owner establishes the style of the network, provides the functionality, creates/imports content and sets the rules.

2. A friend or contact invites you to join the networking service or you join by visiting the site and signing up. With most services the initial signup is free.

3. You create a profile describing yourself/your company and your interests.

4. You connect to your friends/colleagues or clients/suppliers and their network.

5. You further expand your own network via message boards, emails, blogs and by connecting with members with similar interests.

The best part of a social networking site is that it enables you and your company to connect with people who may not be familiar with you, or with your organization. Because you already know someone who knows them, you can begin a relationship with more trust and warmth than with a total stranger. According to the Hitwise, the online intelligence service, internet visits to the top 20 social networking websites in 2007 accounted for 6.5 per cent of all internet visits. The popular Orkut and Facebook are some of the networking sites used for personal purposes. LinkedIn.com and Ryze.com are some of the networking sites used mainly for professional and business purposes.

Social Networking changing business context

But should you or your company be investng time on networking? Because though it is in the early stages, social networking along with other web 2.0 tools (blogging, wikis) is changing the way we do business.

• New customer relationship management tool: Entrepreneurs and small businesses can expand their contact base easily since social networks connect people at low cost. These networks can act as a customer relationship management tool for selling products and services. Companies can advertise in the form of banners and text ads. For businesses operating globally, social networks can make it easier to keep in touch with contacts around the world. It helps in being more responsive to customers. Gerson Lehrman Group’s expert network connects customers to subject matter experts who can address their concerns etc.

• Increased internal and external communication: Social networking tools are easy and simple to use.So more and more people are communicating things they would otherwise not have communicated. Federal Aviation Administration (FAA)’s 200 or so disaster recovery specialists have invited people to join their networks so that post disasters, through communication with their contacts they can respond faster and more effectively.

• Collaboration and better knowledge management: Individuals and organizations needing a capability or service that is not within their reach, use social networking to work together with other individuals, communities and organisations. Flowserve, an industrial manufacturer built an internal version of Facebook. Its employees spread across 55 locations could now develop relationships and communicate with each other to leverage on each other’s knowledgebase to solve common problems.       

• Innovation: The collective intelligence of colleagues, peers in other companies, suppliers and customers can be tapped to develop innovative services and products. IBM India has seen that their social networking tools create healthy discussions around research and development thus contributing to the improvement of their products, processes and policies.

• More transparency and accountability: With increased levels of communication comes greater tranparency and companies are becoming more accountable for their actions to their consumers and employees.

• Hiring and working with people we know: Studies have found that those hired through social networks have a lower attrition rate and earn more than employees hired through other hiring methods.

• More connected workforce: More than 300 Zappos (an online shoe retailer) employees use social networking to let friends, colleagues and customers know what they are doing at any given time in the day. This informal and frequent communciation keeps employees connected. In India TCS is developing an interactive corporate directory called My Site. Employees can create a buddy list and connect with others having similar interests thus increasing bonding among employees irrespective of hierarchy.

• Increased C2C marketing: Messages being delivered from business to consumer (B2C) are being supplemented with consumer-to-consumer (C2C) messages about products and services through the social networks. So companies are finding ways to tap into them in order to be aware of them and influence them positively.

Looks like social networking will provide a new powerful way to get work done by making individuals and organizations more agile and efficient through better communications and sharing of expertise. Of course all this is possible if you use social networking effectively.

Using social networking effectively- few tips

• Choose the networking sites wisely – those which suit your requirement rather than the ones people have sent you invites for or other companies are using.

• Create a user friendly profile by ensuring it contains all the relevant details and gives the right impression about you or your company.

• Extend invitations to connect to friends and people or in the case of a company, clients, suppliers who know you.  You don’t want to create spam for people who have not heard of you right. Also don’t be pushy. It may put off people.

• When you make a request for connection clarify your intentions ie., is it to find a candidate, discuss common interests, get product improvement ideas etc.

• Invest time in networking. Learn what works and does not work. Be clear what you are trying to accomplish through networking to use the time spent on it fruitfully.

• Display networking etiquette like responding to requests promptly, being truthful about your employment status etc while connecting with people and by not connecting with people every time you have news about yourself /your company or need some help.

• Aim for relationships rather than transactions. Help others before seeking help from them.

Conclusion

Is there a downside to social networking? Though networking sites are mindful of your privacy you cannot stop a person from writing to you or writing about your company. Maintaining your network will require taking out time from your already packed schedule. You may also feel emotionally disconnected with people you are in touch with only online. Valid concerns. But there are ways to take care of them. For instance you can talk to your contacts on phone or meet them in person to get a feel of the real people behind the emails.  And considering its various benefits it is worth making the effort. Soon social networking tools developed for use within organisations will be here (A McKinsey's survey found that 37 per cent of the executives interviewed were using or planned to use social networking functionality within their companies.) And when it does you and your organisation will be ready.

References

1. Taylor,D,“The Business Blog at Intuitive.com”, http://www.intuitive.com/blog/etiquette_for_linkedin_and_the_professional_networking_world.html.
2. Hoffman, A, “Seven Tips for Social Networking Online”, http://career-advice.monster.com/career-networking/Seven-Tips-for-Social-Networking-On/home.aspx.
3. Steckerl,S,“Start Networking Online”, Jan 2, 2007,http://www.ere.net/2007/01/02/start-networking-online/.
4. Fitzgerald ,M, “Why Social Computing Aids Knowledge Management”,http://www.cio.com/article/395113/Why_Social_Computing_Aids_Knowledge_Management_.
5. “The impact of social media on corporate culture”, http://gneil.blogspot.com/2008/06/impact-of-social-media-on-corporate.html.
6. http://www.livemint.com/2008/06/10001221/IT-companies-jump-on-the-socia.html?d=1.
7. Atchison, S, “Social Networking ROI: Measuring the Impact of C2C”, Jul 12, 2007,
   http://www.clickz.com/showPage.html?page=362638.
8. “Social network service”, http://en.wikipedia.org/wiki/Social_networking.

Employee Speak: Louie Fernandes. RaLpH, Chief Operating Officer, Optimystix: V2 Issue2

http://www.optimystix.tv

1. How is the entertainment industry getting influenced by the increase in percentage of the Gen Y viewers?

There has been an increase in the Gen Y viewership primarily in the English entertainment and music genres but not necessarily at the same rate in the GEC (General Entertainment Channels).  In the GEC, there has been an increase in viewership within the shoulder time bands (7-8PM and 10PM onwards) of the Gen Y viewers. With the penetration of internet and mobile, these are more attractive time spending options for Gen Y audiences and one can expect these media platforms to see a higher rate of growth in Gen Y audiences.

Broadcasters are now extending their content to mobile and web. With the introduction and subsequent proliferation of 3G and broadband, we see more cannibalization of content created for TV with mobile and internet.

2. When program formats are developed by Optimystix, are any particular elements included to attract and engage Gen Y viewers?

Yes in two ways.  The GEC channels have introduced an interactive element in the programmes like call-ins, SMS, India voting and download sections on their websites to attract younger audiences who believe in influencing the end result. Dancing and comedy genres have introduced content that is focused on competitions where the younger generation wants to play a role in deciding who the winner is.  Forays into mobile content typically attract Gen Y and humor/movie related new content is being created for mobile. You can have a look at some sample content on www.mainduck.com. Expect to see more mobile content created by Optimystix on your mobile screen soon via your mobile operator.

3. According to you what kind of television programs are a hit among Gen Y viewers?

Genres of singing, dancing, comedy and spoofy shows like SET's Comedy Circus are a hit. On niche channels, MTV’s ‘Roadies’ is a show particularly focused towards attracting the young Gen Y audience.

4. How is the entertainment industry getting impacted by the influx of Gen Y workforce?

One would be on generating fresh creative output to meet the objective of different genres of programming. Their biggest impact would be on programs particularly targeted towards the youth, as against creative input they would bring to GEC, focussed on big shiny floor entertainment programs targeted for the entire family.

The impact of Gen Y workforce is significant when creating content targeting the youth itself – youth programming on music channels, gaming industry, mobile, internet and the likes.

5. What according to you is and will be the impact of Gen Y employees on the corporate culture?

The Gen Y workforce tends to focus more on the ‘end’ rather than the ‘means’ to reach an objective.  They also bring in a lot of movement, energy and diversity within the organisation.  At Optimystix we have a healthy mix of people.  Young talent is managed and supervised by experienced talent.  Today our middle management rung consists of young people who have grown in the organisation over the years and have integrated well to create a cohesive culture of the organisation which transcends youthful zeal and enthusiasm with the thoroughness and wisdom of experience.

6. What are the challenges in managing them at the workplace?

A major challenge in managing this hyperactive workforce is discipline and adherence to process.  Control is a challenge.  What works with selling the principles of discipline and process is persistence and presenting the benefits and values of adhering to processes and discipline via real life examples. This generation thinks more off the hip rather than the head.  They are more emotional than calculative and introspective. As managers we need to spend time with them to demonstrate the bigger/macro picture.  They tend to have a myopic view and believe more in shortcuts rather than hard work. With guidance and persistence, we can achieve the desired results.

7. They have global reach and trends across the world reach them in real time - Is their leaning towards India – the country lower therefore?

I wouldn’t say so.  They are globally aware but their connection to India is strong.

8. Any message you would like to share with our readers belonging to the Gen Y?

My message to them is that there is a lot of merit in hard work especially when it’s coupled with an intelligent approach to hard work.  Shortcuts don’t work all the time.  One should take the time to dot the ‘i’s and cross the ‘t’s. Focusing on details is important.

Emerging Trends: Activity Corner; V2 Issue 2

Are you keeping track of these emerging trends?

Listed below are descriptions of different products, services, technologies and practices that are representative of the different trends that we are seeing today. Some of them are in areas that can improve workplace effectiveness. See how many you can identify.

1. It is a free service that allows users to send "updates" text-based posts, up to 140 characters long. Updates are displayed on the user's profile page and instantly delivered to other users who have signed up to receive them. The sender can restrict delivery to those in his or her circle of friends.

2. This is a portable device for storing and playing audio files. It can hold anywhere from a few hundred to ten thousand songs.

3. Initiatives related to this help companies make profits without sacrificing the resources of its people, the community and the planet.

4. This device supports push e-mail, mobile telepone, text messaging, internet faxing, web browsing and other wireless information services. It has a built-in keyboard, optimized for "thumbing" (the use of only the thumbs to type).

5. This is a website, usually maintained by an individual, with regular entries of commentary, descriptions of events, or other material such as graphics or video. Entries are commonly displayed in reverse chronological order. The ability for readers to leave comments in an interactive format is an important aspect.

6. This is a collection of web pages designed to enable anyone who accesses it to contribute or modify content. They are often used to create collaborative websites and to power community websites.

7. These are web applications that draw upon content retrieved from external data sources to create entirely new and innovative services. They are popular because of the emphasis on interactive user participation and the manner in which they aggregate and stitch together third-party data.

SOLUTIONS:

1. Twitter. Media such as CNN use Twitter to break news. The American Red Cross uses Twitter to exchange minute-to-minute information about local disasters. In May 2007, there were 111 such "Twitter look-alikes" internationally. Most of these have emerged due to Twitter's success.

2. iPod. In addition to playing MP3 audio files, the iPod plays AAC (Advanced Audio Coding). AAC’s principle difference from MP3 is its ability to support Digital Rights Management (DRM). DRM is a response to the type of song sharing first enabled by websites like Napster. By encoding legally purchased songs with digital signatures, it increases the difficulty of sharing them inappropriately.

3. Sustainability or Being Green. Companies are doing this by developing greener products and services (designed to have less adverse effect on the environment), and by being more focused internally on operating with greater energy efficiency, cutting their own costs and reducing the "carbon footprint"(carbon emmissions) they leave.

4. Blackberry. It was first introduced in 1997 as a two-way pager. Today, they are popular with some businesses, where they are primarily used to provide e-mail access to roaming employees.

5. Blog. Political consultants, news services and policital candidates have began using them as tools for opinion forming.  The emergence of blogging has however also brought about legal liabilities and unforeseen consequences. In India, blogger Gaurav Sabnis resigned from IBM after his posts exposing the false claims of a management school, IIPM, led to management of IIPM threatening to burn their IBM laptops as a sign of protest against him. As of December 2007, blog search engine Technorati was tracking more than 112 million blogs.

6. Wiki. The collaborative encyclopedia Wikipedia is one of the best known wikis. Wikis are used in businesses to provide affordable and effective intranets and for knowledge management. The open philosophy of most wikis, allows anyone to edit content. Wikis tend to take a soft security approach to the problem of vandalism; making damage easy to undo rather than attempting to prevent damage.

7. Mashups.The ChicagoCrime.org Web site is an example. It mashes crime data from the Chicago Police Department's online database with cartography from Google Maps. Users can interact with the mashup site, such as instructing it to graphically display a map containing pushpins that reveal the details of all recent burglary crimes in an area.

So which category do you belong to?

a. You were not aware of them
b. You have heard of them
c. You knew about them
d. You use them

References

1. en.wikipedia.org
2. http://www.ibm.com/developerworks/xml/library/x-mashups.html
3. http://www.networkworld.com/news/2007/080307-sidebar-companies-of-allsizes.html?zb&rc=dc_desktops

FL!P : Book Review: V2 Issue 2

Title: FL!P

Author: Peter Sheahan

Publication details: HarperCollins Publishers, India, April 2008

Number of pages:326 pages

Wondering why your current business idea or career move is not working as well as it used to. Maybe it’s time to flip your thinking on it. Peter Sheahan is the author of the groundbreaking book ‘Generation Y: Thriving (and Surviving) with Generation Y at Work’. And in his new book ‘Flip’ he gives a formula for succeeding in today’s business context by turning everything you know on its head.

The book begins by describing the four forces of change today viz., increasing compression of time and space; increasing complexity; increasing transparency and accountability; and increasing expectation on the part of everyone for everything. These changes require you to reexamine every aspect of running a company to continue being successful.  

The book highlights what today’s successful businesses and ‘flipstars’ such as Richard Branson, Google, Toyota, Rupert Murdoch and Apple have in common. It is an ability to 'flip' conventional thinking about business and then act boldly.  A limit was put by the government on premiums that could be charged. So, Progressive car insurance from offering insurance only to high risk drivers at high premiums started offering insurance to all drivers at widely varying premiums. Most players were talking about work-life balance. But Macquarie Bank during recruitment said, “Say goodbye to your friends...family. You are not going to see them for ten years. But when you do, you will be rich!” Both companies are highly successful today.

Scattered across the book is counterintuitive wisdom on doing business. To meet expectations about our products or services, just picking being two of the three ie., fast, cheap or good,  is not enough. The book says “Think And, Not Or.” We must pick all three and something more. The more could come from being green, easy, healthy etc. Luxury car Lexus makes things easy for its user by arranging to pick up the car for service, leaving a replacement to use, returning the car clean with chocolates on the front seat and getting free parking. While talking about “To Get Control, Give It Up” the book says “You should tap into the brilliance that individuals don’t work for you have, whether they be customers, bored scientists in academia or teenage kids with an idea about how to advertise your product better”.  Another flip mentioned is “Action Precedes Clarity” ie., acting in spite of ambiguity.

The book also contains valuable conventional wisdom. Design the total ownership experience for customers by incorporating service, form, functionality and story. It talks about how Apple iPod‘s marketing slogan “A thousand songs in your pocket” told the story of what it would do for customers in daily life. What I liked best about the book are the numerous such industry examples ranging from Microsoft to the company dealing with Lonely Planet Travel guide books. It also gives a glimpse of the current business and workplace trends like the use of social networking tools, competing companies working with each other, Gen Y employees seeking more empowerment etc.

The book is full of interesting tips and suggestions. For example the suggestion made in the book for finding new ideas for your product or service ---“…contact with fringe areas of society where new ideas percolate…This is why Nike assiduously tracks trends within minority urban communities, striving to identify what suburban consumers will later buy in even greater quantities.” Each chapter ends with 'to do' lists for readers.

While this book is a must read for business owners, decision makers and marketing professionals, it is also a book for people looking for inspiration to do something different in their lives. I think it is apt to end this review with the words used by the author at the end of the book “Get up off your butt and do something!!!”

Understanding & Managing Generation Y: Feature Article; V2 Issue 2

Understanding and Managing Generation Y

Shubham listens to his ipod and leaves messages for his friends in orkut… all this while he is working at home on his office project. Jagjith who says exactly what he feels about making improvements in the workplace also likes to collaborate with his peers online to find solutions to the technical problems in his project.  Raina attends yoga classes in the mornings. After work in the evenings she volunteers for an NGO. During weekends she treks extensively. Meet the Generation Y! Who are they? Let’s find out!

Who is Generation Y and why should you want to manage them?

Generation Y are those born between 1980 and 2000. They are even called the Millennial Generation, the Internet Generation, the Nintendo Generation, the Digital Generation and the Sunshine Generation. They are the children of active, involved parents and the younger siblings of Gen Xers ie., a generation born from the mid1960s to the late 1970s. With penpals across the world, the first generation to grow up surrounded by digital media, they see things as global, connected, and of course open for business 24/7.  And what is important for you is that today they are the fastest-growing segment of the workforce. You would be recruiting them from campus. You would be finding replacements for them when they leave your company to join another one. You would be working with them. You need to manage them. And so, you need to know more about them!

Characteristics of Generations Y

Even if you don’t identify them by their age, Generation Y is not very difficult to spot because of the following characteristics which define them:-
1. Confidence: Having been raised by parents believing in the importance of self-esteem, they ooze confidence. Confidence in the way they speak out about issues that bother them, confidence in the way they carry themselves and confidence to tackle any challenge!

2. High expectations from self: They expect to achieve great things and solve problems nobody has solved and do more work, better and faster than anybody else. Sounds familiar?

3. High expectations from others: They also have high expectations from you - their employers and managers. Expectation that you will know their needs, help them succeed and reward them accordingly. They expect you to be honest and direct and fair and highly engaged in every step of their professional development.

4. Optimism: They believe in a bright future which has a special place for them as well. They expect a workplace with all the good things - challenge, collaboration, creativity, fun, and financial rewards. Why do you think they came to work for you?

5. Goal and achievement orientation: They like setting goals, striving for them and achieving them. So don’t be surprised if they arrive first day of work armed with personal goals already defined.

6. Inclusiveness: They are used to being organized in teams and don’t like leaving behind anybody. Workplace diversity is expected by them. They will not hesitate to use their collective power if they feel someone is treated unfairly. 

7. Love for change: Generation Yers don't expect to be doing the same thing tomorrow and day after. Multitasking comes naturally to them. They can juggle between checking e-mail on their Blackberries, talking on cell phones and surfing on the net.

8. Financial smartness: After witnessing the financial insecurity of earlier generations faced by layoffs and the dot-com bust, today's youngest workers are generally quite savvy about money and savings.

9. Need for work life balance: Unlike the earlier generation for whom career tends to come first, generation Yers are more interested in making their jobs accommodate their family and personal lives. They want jobs with flexibility - telecommuting options, part time or long leaves when children or elders need be taken care etc.

10. Sense of civic duty: They believe in doing things for the greater good. They often volunteer for community services. Naturally they expect companies also to contribute to their communities and have environment friendly operations.

11. Total comfort with technology: Having grown up with online social lives, classrooms and entertainment, the virtual world feels to them like a natural extension of their personal experiences. For them, meeting and interacting online is just as comfortable as face-to-face meetings.

By now can you see the behavior patterns among your team members who belong to the generation Y? Now given this unique pattern of behavior would you say the current ways of managing people would work with this generation? Perhaps not!

Managing Generation Y

Here are some of the things which will work with them.

1. As a boss I’ll be pleasant and easy to get along with: The number one rule for managing this highly sociable generation is for you to be sociable with them. Plain business talk with no chitchats will not do.

2. I’ll be your role model:  Having grown up with structure and supervision, with parents who were role models they are looking for role models at work too. This generation is looking for leaders with honesty and integrity. So 'parent' them in ways that will inspire them to utilise their strengths but also manage their weaknesses and set boundaries.

3. You can work with your friends: Generation Y want to work with people they connect with. They like being friends with their colleagues. Did you know some companies are even interviewing and hiring groups of friends because of this? Review them as a group; they enjoy collaborating and being rewarded for the same.

4. I’ll give you challenges: For a breed looking for challenges and lots of learning opportunities this is a statement they would welcome! Give them problems to solve and obstacles to overcome.

5. Here is what you need to do, I am flexible on how you want to do it: With their varied activities, Generation Y expects work to fit into the rest of their life. They don’t believe in face time. Once they are done with their work they will leave office (wow the focus is on output rather than just input!) In order to get the best out of the busiest generation ever it is essential you don’t bind them to a rigid 9 am to 6 pm schedule. Let them work anytime and anywhere while meeting their goals. Also get creative in providing the work/life balance that they crave by offering perks, such as a month sabbatical after some years of service. This offers them time to volunteer for NGOs or pursue a hobby.

6. I’ll be direct with you: Adapt your communication style for them. Gen Y employees speak a different language. They typically respond to humor, passion and the truth. Don’t beat around the bush with this set.

And here are some of the things that won’t work with them.

1. There is nothing much happening now, so chill: Just say this the day they join and they’ll walk out on you right then. Remember they want to start achieving from day 1. Be ready with a task or responsibility no matter how small that you can give the new joinee almost immediately.

2. You are too young to have ideas: Just because they have not been around a long time does not mean you don’t treat their ideas with respect. Don’t be surprised and overwhelmed with the articulate Generation Y’s forthrightness. Don’t try to discount their ideas for lack of experience (they do think outside the box) or throw a wet blanket on their enthusiasm. While an open door policy works well with them, to ensure your work does not get derailed often, tell them to bring you well researched ideas and specific questions.

3. Finish developing this product in 6 months time: This is as good as saying I want to lose your commitment. Gen Yers thrive on small goals with short deadlines so they can build up ownership of tasks. So you better break that project down into smaller pieces. Give them one new task at a time. And please change the type of projects they do every now and then.

4. I’ll give you feedback once in two years: Oh oh this is a sure way to lose them. Gen Y employees want frequent, direct and specific feedback and encouragement. They want their bosses to talk to them regularly just the way their parents did. Even if this means changing your performance appraisal system it is worth it. They become more confident, productive, and willing to use their creative talents when they see that their work is appreciated and receive feedback on how to achieve more.

5. I’ll reward you with just higher compensation: Compensating Gen Y cannot be solely about money. They are seeking training, new challenges, expansion of their capabilities and as a result, advancement to new, more highly compensated roles.

Conclusion

Pampered? Over indulged? Call the Generation Y what you want but you can’t do without this talented generation who are not only your colleagues but are also increasingly your customers and key influencers. Don’t feel threatened by their technical know how. Learn from them instead. Don’t treat them as your enemies but your allies in getting ahead in this increasingly competitive word. For instance considering that they are a generation comfortable with working remotely, leveraging technology and virtual relationships, Gen Y can help you meet your need for global teamwork and flexible work hours.

Come to think of it, creating a better workplace for the generation Y can mean a better workplace for all generations. The earlier generations had just not demanded and expected it like this recent generation does. And the result can be highly desirable - a set of engaged and motivated employees!

References

1. Raines,C, “Managing Millennials”, 2002, http://www.generationsatwork.com/articles/millenials.htm.
2. “Managing Generation Y as They Change the Workforce”, Business Wire, Jan 8, 2008 http://findarticles.com/p/articles/mi_m0EIN/is_2008_Jan_8/ai_n24224688.
3. Tulgan ,B,“'tis the Season... to hire Generation Y.”, http://www.jobdig.com/articles/980/'tis_the_Season..._to_hire_Generation_Y._.html.
4. Sue M.P, “Managing Gen Y effectively: the six keys to lead, and motivate Millennial´s to peak performance”, June 05, 2008, http://www.americanchronicle.com/articles/64052.
5. Armour, S, “Generation Y: They've arrived at work with a new attitude”, USA TODAY http://www.usatoday.com/money/workplace/2005-11-06-gen-y_x.htm.
6. Malini Goyal and Jacob Cherian , “Is Gen-Y taking over the boardroom?”, 11 Aug, 2006,TNN, http://economictimes.indiatimes.com/articleshow/1882803.cms.

Ask the Expert : V2 Issue 1

1. Two of my senior team members refuse to work together on projects owing to certain personal conflict. I am deeply concerned about this since this not only affects productivity but also results in undue hostility between junior team members. I need both of them to start working together and showing results! Please suggest a few effective conflict resolution tips.  

Yes, not dealing with workplace conflicts can be detrimental to the organization, both in terms of loss of productivity as well as loss of a positive work environment. To effectively resolve the conflict intervene immediately with the following steps:-

• Understand the problem:  A conflict cannot be resolved unless one determines the root cause for it. So gather as much information as possible for the underlying reasons for the conflict. Call a meeting of the two team members. Communicate to them that the objective of the meeting is to sort out their individual differences in a calm and positive manner and not to criticize or point fingers. Allow each of them to speak about the issues pertaining to the conflict without being interrupted by the other. Make sure both of them clearly understand each other’s viewpoint. If any of them tries to derail the resolution process, deal with them firmly. Exercise your authority if required to convey that resolution of conflict is essential.

• Brainstorm on possible solutions: Once the conflict situation has been understood, build a positive discussion to determine different solutions. Seek clarifications, ask open ended questions, and suggest possible solutions. But, do not enforce your ideas or take sides. If you play favorites it can defeat the purpose of the meeting.

• Choose the best solution: Listen carefully. To reach a consensus, it is very important to explore the real needs, expectations, concerns and fears. Involve both of them in the decision making process. Impress upon them that you are looking for a solution that makes both of them happy. Select the solution that is mutually acceptable, even if it is not perfect for either of them. As long as it seems fair and there is a mutual commitment to implement the solution, the conflict has a chance for resolution.

• Implement solution. Now, implementation is the toughest challenge of all! Work out the details-what each person will do, what to do in case the agreement starts to break down etc.

• Do not stop evaluating the solution: Once the solution has been arrived at, figure out a way to consistently follow up with your two team members to ensure efficacy of the solution. If the conflict still persists, one is back to square one and you need to begin with step one.

There is no doubt that resolving interpersonal conflicts at the work place is one of the toughest challenges faced by managers. If they are handled well, however, interpersonal conflicts can actually be productive leading to deeper understanding, mutual respect and closeness between the conflicting parties.

2. I have been made in charge of a big project. The cross functional team that I will have to manage historically has been unable to deliver as per the project deadlines. How do I ensure the cross functional team delivers as per project timelines?

If it is hard to get traditional teams within departments to be effective, it is exponentially more difficult to get cross functional teams to deliver. But with detailed and rigorous planning it can be done. Some suggestions for improving effectiveness of your cross functional team are provided below.

• Ensure that your cross functional team is structured it into smaller workgroups.  When a team is large, communications and productivity suffer since members feel less accountable and their participation decreases. Establish proper handoffs from one part of the team to another.

• Arrange for your team members to meet outside office for sometime to allow them to get to know each other especially since they are from different departments and may not know each other well. This is a good time to determine how the team will work together…. How will it make decisions? How will it assess progress? How will it work on team issues? Identify potential barriers to effective work and ways to address them. 

• Keep things simple. Deploy a basic project management methodology. Use terminology commonly understood by all during all team communications. For the team to be effective team members will need to be able to meet and communicate easily. They will need to have direct access to those who provide valuable input to them and to the recipients of their work. Confirm if this is so. If not talk to the respective department heads to facilitate the same.

• Plan for adequate dedicated time for each of the team member for this project. Speak to the department heads if necessary. This way this responsibility of theirs will also be reviewed during their appraisal and hence they will feel more accountable for it.

• Before your project team commences work ensure the team objectives are realistic, clear and specific. Define them in writing by creating a mission statement and distributing it to all involved. This will get your team motivated and unified. Determine individual responsibilities and project milestones based on your team’s ability. Encourage the team members to suggest timeframes for their deliverables. That way they will be more committed to meeting them.

• Circulate a summary as well as detailed plan to the project team so that they get the big picture and are aware of the milestones. Regularly follow up on the status of the milestones to determine whether the project is on track. Keep everyone informed on the progress of the project so they are engaged in the whole process.

3. We, recently, hired a person for my team from one of the leading companies who have implemented some of the best practices in the industry. Towards the end of his department orientation, he confronted me, his manager, about the lack of proper planning in the orientation program. What would be your suggestions for a Manager to ensure that his/her new team members go through a proper orientation process?

All new employees should complete an orientation program designed to assist them in adjusting to their jobs and work environment and to instill a positive work attitude and motivation. Normally at the time of joining, the HR department will put the new joinee through an induction process. Let the new joinee complete that fully before joining your team. Do not insist on him/her joining soon. Understand what that induction process includes. In the department’s orientation process plan for activities which are essential but not covered in that induction process.

The Manager is ultimately responsible for retention of an employee and a smooth induction into the department is the first step towards this goal. So plan carefully. Some of the things you can include in the orientation are:-

• Provide an agenda to the new joinee to let him/her know what to expect from the orientation and assuring him/her that his/her orientation is a planned affair. Most importantly stick to the agenda.

• Brief the new joinee about the company and his/her job. Discuss any concerns or queries they may have. Provide a list of FAQs.

• Also find out about the new member's interests, strengths, skills and what they hope to gain from their new experience.

• Assign a mentor or a buddy to show the new person around, make introductions, and help him/her in the initial months to settle down. The mentor also needs to be provided with sufficient time to prepare prior to the new joinee coming on board.

• Begin with the basic knowledge and skills required to do the job. Individuals become productive sooner if they have a strong foundation in them. So ensure this is so. If not plan for it to be provided. Convey commitment to continuous improvement and continual learning. That way, new employees become comfortable with asking questions to obtain the information they need to learn. Avoid any overload of information. Include practical exercises along with theory. Include some fun activities.

• Involve them in various company social events. Allowing them the chance to get to know their colleagues in a more informal setting can lay the foundation for an amiable and productive relationship. Plan to take them out for lunch. Include other co-workers, making sure the employee is at ease. 

• Keep the new person's family in mind.  A new job means adjustment for the entire family, especially if they have relocated. Do what you can to ease the transition and help them feel comfortable in the community. 

• Lastly don’t forget to ask for constructive feedback from the new joinees on the orientation process. Incorporate changes based on this feedback.