Walking the Talk – Leaders demonstrating Team Work: Feature Article; V3 Issue 2

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Introduction

In the words of one highly successful plant manager, "My biggest challenge is not getting our employees to work together because they will if we lead them that way... The biggest issue is getting all our managers to work together and cooperate, which can be a daunting task." Why is walking the talk in team work so difficult for leaders. Let’s see an example.

Brijesh Kumar, the Sales and Marketing Manager of a product company was at his wits end. His company had not met the commitments made to one of his biggest customers for the third time in a row this quarter. He would surely lose this customer to his competition. What was happening? Had he not done his best in providing leadership to his team he thought? Brijesh may have led his team well. But there is something else amiss. On all the three occasions Brijesh had faced problems from the production and supply chain side. The Production Head had delayed the product manufacture citing reasons like unavailability of raw material, unrealistic delivery goals committed by sales and lack of machine capacity. The Supply Chain Head had on the other hand had argued that there was no proper forecast of the requirement, vendors had defaulted and that raw material rejection had taken place. Clearly there is limited collaboration among the team making Brijesh and his peers viz., the operational leadership team in the company ineffective.

Leadership team is a group of managers at the same organizational level who need to collaborate together to meet organizational goals. Small enterprises may have only one leadership team, while large organizations have several teams at each layer of their hierarchy. For a member of a leadership team to be effective he/she should not only be a good team leader but also a good team member– a good team member for his peers. But often this is not easy because the team sometimes work at cross purposes as seen in the case of Brijesh. In fact there are significant challenges to getting the leadership team to function as a good team, despite the obvious benefits to the organization.

 

Why team work in a leadership team is difficult

All leadership team members need to successfully wear two hats, that of functional leaders and organizational leaders. Selected for their knowledge and expertise, they own functional responsibilities. At the same time they have an organizational leadership responsibility which may supersede their functional responsibility. For example, the Sales and Marketing Head, has a primary responsibility for the Sales function of the organization and as a member of the leadership team also carries a responsibility towards organizational success. So to be an effective team member he/she must understand the difference between these two roles and play both the roles. Since the primary purpose of management team members is to make decisions, they must regularly try to reach agreement on critical issues.  Conflicting interests can make this process difficult.

A research survey conducted on manufacturing managers identified factors preventing managers from working together and the problems created when managers in a manufacturing operation do not work together. The survey results were as follows:-

To summarize, ineffective team work between the managers led to loss of employee morale, decrease in productivity and adverse impact on customers and profitability of the company. The factors preventing the managers from cooperating were not only on account of differences in individual personalities and aspirations, but also on account of organization systems and top leadership not effectively supporting team work

Having understood the challenges of working as an effective leadership team now let’s look at the ways in which we can improve the team work among leadership team members.

 

Building leadership team cohesion and synergy

An individual manager might struggle with a problem with his/her limited view of the problem. If the manager tables this problem in a meeting with other managers, he will have different views of the problem and someone might have an answer right away. He/she would be experiencing the rewards of collaboration. A significant advantage of a team is the power of collaboration. When people work together on problems, the different views and interpretations of the problem, plus the different facts and knowledge people in the team bring with them, create better solutions. Also, the solution identified would have support across functions, and likelihood of successful implementation increases exponentially. So you can contribute to better team effectiveness of the leadership team you belong to by following the principles of collaboration.

Principles of Collaboration

  • Understand and call upon the specific skills, strengths or knowledge of each team member
  • Listen with open-minds and open the minds of others to different ideas
  • Relentlessly look for ways to make things better

  • Confidently and constructively speak your mind - Freely speak your mind without fear at crucial points during important meetings, rather than later at the water cooler and listen to feedback without hesitation

  • Passionately debate ideas without getting defensive
  • Don't hoard knowledge and business expertise
  • Debate with a higher level of intensity and diversity of thought
  • Structure discussions that lead to action, not endless meetings and conversation
  • Adapt effectively and creatively to corporate and economic change
  • Balance free-thinking and creativity with business discipline
  • Remove politics from conversations

  • Create an environment where ideas are encouraged from and by everyone, without threat of embarrassment or disapproval. When collaboration is working really well, team members listen closely to each other, build on each other’s ideas, amend them, drop them, pick them up again, and come up with new ones.

The research survey conducted on manufacturing managers also identified the following top ten factors for getting managers to cooperate with each other and to function as a team:-

  1. Develop unifying super-ordinate goals that focus on needed outcomes
  2. Top management must demonstrate and foster cooperation
  3. Provide team-based rewards or incentives for desired behaviors and outcomes
  4. Identify and resolve management problems and conflicts in a timely fashion
  5. Team-based performance measurement and feedback devices
  6. Team-building activities; teaming skills development
  7. Create management team ownership of decision processes and outcomes
  8. Integrate planning, problem-solving, and communication processes
  9. Clarify each manager's roles and goals to every other manager
  10. Build understanding and consensus around production processes and systems

 

Conclusion

Individual members of leadership teams at all levels need to work together better to be more effective in their individual roles and for being more effective as a leadership team as a whole. Improved team cohesion makes working a more positive experience for both the team members as well as for the people the team members lead. In the wise words of a manager from the study on manufacturing managers, "When we [managers] work together, it is amazing how much better things run and how much easier it is to come to work."

 

References

  • McIntyre M G., Ph.D., ‘Building an Effective management Team’, http://www.yourofficecoach.com/Topics/building_an_effective_mgmt_team.htm.
  • Longenecker, Clinton O, ‘Building High Performance Management Teams’,   http://www.entrepreneur.com/tradejournals/article/82107886.html.
  • ‘Team Collaboration at Work’, http://employee-management-relations.suite101.com/article.cfm/team_collaboration_at_work.
  • ‘Team Collaboration’, http://www.marcumsmith.com/team-collaboration.php.

Ask the Expert: V3 Issue 1

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1. I normally take all work challenges in my stride. But with all this talk of recession, I am getting more stressed than usual. Is this normal? How can I reduce the stress levels that I am experiencing at my work place?

Yes, it is perfectly natural to feel more anxious than usual in such times. However, determine the exact cause of your stress. Is it workplace rumours of job cuts, lack of communication from the leadership or the hype by media about economy woes? Try to put the negatives into the right perspective. Differentiate between things under your control and those that you cannot influence at all. Focus on the aspects under your control.

Exploring your situation with experts could ease your fears. If required consult a financial planner who can help you plan for your financial security. Talk to recruitment consultants or successful professionals in your field of work to know what you need to work on to develop your career. When you know you can handle whatever comes your way you will automatically worry less about it.

Ticking off items from your ‘to do list in meeting long term objectives’ will help you feel you are getting somewhere and in control of your work life. That sense of accomplishment and control can act as a powerful stress reducer. If you don’t have a list, make one. Think about all the small, incremental things you can do to build career success over the course of a year, or five years; subscribing to a newsletter, attending a networking conference, practicing your presentation skills etc. Don’t focus only on the short term!

Take time off now and then to relax. Get into the habit of taking a few minutes several times a day to consciously manage stress. Do some stretching or slow breathing. Take a short walk. Chat with a colleague. And don’t forget the popular stress buster - a tea break. Figure out what works for you. Keeping in shape by taking daily walks and maintaining regular sleep and eating patterns is similarly important to reduce stress levels. Maintain healthy food habits. This will have a positive effect on your stress responses. Being physically fit is essential for you to be emotionally strong and mentally alert during trying times.

I think primarily it is your attitude to stress causing factors that matter. Look for the positives in your professional and personal life and actively build on them- it helps to maintain a positive attitude. With these I am sure you will be able to continue taking all your work challenges in your stride like you usually do.

 

2. Morale is low currently among employees and as the HR team member, I would like to do something about it. However since the recession has hit our company’s revenues quite badly, it will be difficult to get a budget approved for such activities. Can you suggest a few low cost measures to improve morale among employees?

There are lots ways by which you can improve employee morale. In fact the money spent is only one of the ingredients for increasing morale of employees. With a little creativity and lots of determination and sustained efforts, you can improve your employee morale. For starters get the managers of all employees to thank and praise their team members for their specific contributions. Employees prefer instant and personalized recognition from their immediate boss more than any other kind of workplace motivation. Sounds simple right? But you would be surprised how many managers neglect doing this. Formalize a program whereby managers regularly hand out commendations. Also ensure public recognition of exemplary work. Bulletin boards, company-wide emails, newsletters and meetings are different mediums for the same. You can even supplement it with inexpensive tokens of appreciation.

Employees are also more likely to become engaged in their work if they know their bosses are listening to them. Listening implies caring. Sensitize managers to this aspect and encourage managers to regularly move out of their desks and chat with employees. In addition to listening, companies should frequently communicate with their employees to help employees better understand department and company wide actions, increasing efficiency and encouraging team building.

Another cost-effective way to energize employees is by soliciting suggestions from employees, showing that their ideas are valued. So ask for suggestions related to the recession related measures being taken by the company, be it cost cutting or improving revenue streams. The more valued employees feel, the more likely they will display high morale. Another morale booster is getting employees involved in implementing the suggestions made.

Offering lots of autonomy and authority is another excellent way. Freedom fosters creativity, resourcefulness and a sense of ownership, and it establishes a foundation of mutual trust and respect. Discuss with managers on how they can be clear about job assignments and their expectations from team members, while also being open and flexible as to how the team members achieve results. The tough part is to get the managers to then start providing more autonomy and authority to their subordinates.

Finally, there is the good old “introducing the fun element” to work place. Formalize fun events that do not cost much. Some good examples are creating friendly competitions between employees and departments, providing employees the opportunity to showcase their talents, bring your pet/child/spouse to Work Day, get-to-know-your-colleague exercises, funny awards ceremony etc.

All the best and do write to us about how you improved (note we are not saying “if you”) the employee morale in your company. We would love to hear all about it.

 

Goal Setting - the SMARTER way : Management Funda; V3 Issue 1

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A tried and tested way of achieving organization, team and individual success is by setting goals. Hence, in the context of current economic challenges, this is a good time for the HR folks to strengthen the goal setting process of their companies. Strengthening this organization process will not only help in enhancing current productivity levels, but also future productivity levels. As a manager this is also a powerful way to motivate yourself and your team members.    

Aligning Individual Goals with Organization Goals

For goals to produce desirable result for your organization, first and foremost all goals, be it individual or team, should be aligned with organization goals. Let’s look at how this can be done with an illustration for a Sales Officer.

Knowing the target is the first step in achieving the target. The goal therefore should comprehensively and completely define what the role holder needs to target to achieve success. The clarity of the goals set also provides the role holders a higher level of control in their jobs leading to high levels of engagement. One of the methods found very useful across organizations to make goal setting more effective is the SMARTER goal setting.

 

About SMARTER Goal Setting

SMARTER goal setting entails making the goals one sets SMARTER ie., Specific, Measurable, Attainable, Relevant, Time bound, Engaging and Reaching. Let’s see what each of this means.

Specific: The expected result should be stated explicitly. A vague goal like "Take initiative”, has limited motivational value and has lesser chance of being accomplished than a specific goal. Determine “What exactly do I want to accomplish and How?” Use action words such as direct, organize, lead, develop, plan etc. For example the goal of "Reduce costs" can be made specific by saying "Implement two initiatives to reduce overhead costs across the company by 5% in every quarter in order to attain overall 10 % cost reduction for the year."

Measurable: What cannot be measured cannot be attained. Hence the goal should be such that it allows you to clearly measure your progress. When you reach your short term targets you feel a sense of achievement motivating you to put in the efforts required to reach your long term goal too. To determine if your goal is measurable, ask......How much? How many? How will we know if we’ve accomplished the result?

Attainable: An important characteristic of a goal is the level of challenge, related to whether the resources and skills needed to accomplish the goal are available. The need for achievement is strong among people. Therefore one is best motivated by challenging, but realistic goals. Setting a goal that one will fail to achieve is possibly more de-motivating than setting a goal that's too easy.

Relevant: This criterion is related to whether the goal fits with the overall strategy and goals of the organization and department. The goal needs to be relevant for you and your team. For example a goal related to “achieving high customer satisfaction”, maybe more relevant to a service team than for a research and development team.

Time bound: A goal should say by when it will be achieved. Otherwise there will be no sense of urgency and planning for its achievement and prioritizing between goals will be difficult. If you want to launch a new product, by when do you want to launch? "Some time in the year" is not good enough. But if you anchor it within a timeframe like "by August 15th", then your plans for achieving it will be guided by this time limit.

Engaging: The goal should be devised in such way that it is interesting and motivating for you and your team member. You will not mind putting in that extra effort for such goals.

Reaching: A goal should provide a growth opportunity for the individual.  Although it should be realistic, it should also be a challenge or a stretch so that in the process of meeting it the individual develops.

An exercise on SMARTER Goals: Look at the first column in the table below and see if you can determine whether it meets the SMARTER criteria. If not which criterion does it not meet?

Goal Setting - the SMARTER way

A tried and tested way of achieving organization, team and individual success is by setting goals. Hence, in the context of current economic challenges, this is a good time for the HR folks to strengthen the goal setting process of their companies. Strengthening this organization process will not only help in enhancing current productivity levels, but also future productivity levels. As a manager this is also a powerful way to motivate yourself and your team members.    

 

Aligning Individual Goals with Organization Goals

For goals to produce desirable result for your organization, first and foremost all goals, be it individual or team, should be aligned with organization goals. Let’s look at how this can be done with an illustration for a Sales Officer.

 

Knowing the target is the first step in achieving the target. The goal therefore should comprehensively and completely define what the role holder needs to target to achieve success. The clarity of the goals set also provides the role holders a higher level of control in their jobs leading to high levels of engagement. One of the methods found very useful across organizations to make goal setting more effective is the SMARTER goal setting.

 

About SMARTER Goal Setting

SMARTER goal setting entails making the goals one sets SMARTER ie., Specific, Measurable, Attainable, Relevant, Time bound, Engaging and Reaching. Let’s see what each of this means.

Specific: The expected result should be stated explicitly. A vague goal like "Take initiative”, has limited motivational value and has lesser chance of being accomplished than a specific goal. Determine “What exactly do I want to accomplish and How?” Use action words such as direct, organize, lead, develop, plan etc. For example the goal of "Reduce costs" can be made specific by saying "Implement two initiatives to reduce overhead costs across the company by 5% in every quarter in order to attain overall 10 % cost reduction for the year."

Measurable: What cannot be measured cannot be attained. Hence the goal should be such that it allows you to clearly measure your progress. When you reach your short term targets you feel a sense of achievement motivating you to put in the efforts required to reach your long term goal too. To determine if your goal is measurable, ask......How much? How many? How will we know if we’ve accomplished the result?

Attainable: An important characteristic of a goal is the level of challenge, related to whether the resources and skills needed to accomplish the goal are available. The need for achievement is strong among people. Therefore one is best motivated by challenging, but realistic goals. Setting a goal that one will fail to achieve is possibly more de-motivating than setting a goal that's too easy.

Relevant: This criterion is related to whether the goal fits with the overall strategy and goals of the organization and department. The goal needs to be relevant for you and your team. For example a goal related to “achieving high customer satisfaction”, maybe more relevant to a service team than for a research and development team.

Time bound: A goal should say by when it will be achieved. Otherwise there will be no sense of urgency and planning for its achievement and prioritizing between goals will be difficult. If you want to launch a new product, by when do you want to launch? "Some time in the year" is not good enough. But if you anchor it within a timeframe like "by August 15th", then your plans for achieving it will be guided by this time limit.

Engaging: The goal should be devised in such way that it is interesting and motivating for you and your team member. You will not mind putting in that extra effort for such goals.

Reaching: A goal should provide a growth opportunity for the individual.  Although it should be realistic, it should also be a challenge or a stretch so that in the process of meeting it the individual develops.

An exercise on SMARTER Goals: Look at the first column in the table below and see if you can determine whether it meets the SMARTER criteria. If not which criterion does it not meet?

Goal

Is it SMARTER?

Try hard

No, does not meet any of the SMARTER criteria.

Participate in at least 3 training and development activities to develop my skills

No, time frame is missing. It will also be good to specify the skills that need to be developed

Write one whitepaper every 2 months to help build company brand

Yes

Get zero customer complaints in the year

No, does not look attainable

Improving effectiveness of SMARTER goal setting

You can enhance the goal setting process further in the following ways:-

  • Ensure commitment for the goals: Goals must be understood and agreed upon. The goal buy-in from your team members is going to be higher if they feel they were part of creating that goal.

  • Write down SMARTER goals: A powerful technique you can use to achieve your targets is to display them where you can see them. This acts as a reminder and drives the goals deep into one’s subconscious.

  • List the benefits of achieving SMARTER goals: This will keep one going even when faced with roadblocks. The more benefits one can list for your goals, the more motivated one will be to achieve them.

  • Plan for the challenges you will encounter: Anticipating the challenges and planning for them will prepare you to overcome the obstacles more effectively and with lesser amount of stress.

  • Make time for feedback: Feedback provides opportunities to clarify expectations, adjust goal difficulty, and gain recognition/encouragement. These regular feedback sessions which measure interim successes are particularly important where it is going to take a long time to reach a goal.

 

Conclusion

Difficult times call for difficult measures. But here is one easy measure you can take viz., SMARTER goal setting.  Any goal that stands the test of SMARTER criteria will surely be achieved. So go ahead and ensure your company weathers this recession, ensure you do well and ensure your team succeeds.

 

References

  • ‘Creating S.M.A.R.T. Goals’,http://www.topachievement.com/smart.html.
  • ‘Locke's Goal Setting Theory’,http://www.mindtools.com/pages/article/newHTE_87.htm.

Employee Speak : Neeraj Roy , Managing Director and CEO, Hungama Digital Media Entertainment Pvt. Ltd.: V3 Issue 1

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www.hungama.org

1. Congratulations on Hungama’s new visual identity!  It is very interesting – do share your thoughts on what prompted this change in identity?

The new logo is more contemporary and is represented by a triangle, which is actually a depiction of the ‘PLAY’ button.  It is formed by the intersection of three triangles represented in blue, green and orange indicating forward and continuous motion. It is also synonymous with the entertainment world, which we are into, be it mobile or online entertainment. The three colours are derivatives of the primary colours from a digital perspective. They actually represent the three digital screens that make up the world today – PC, mobile and Internet TV. The brand name, Hungama, is written in lower case in blue. Blue is a universal, natural and sky colour indicating infinite possibilities. The letter 'G' in the logo is incomplete and will remain so in the quest for perfection, adding irreverence to our brand identity and indicating our urge to challenge convention and define our own benchmarks. It also highlights our desire to innovate and represents a work in a state of motion.

 

2. You were the only Indian to address the Mobile World Congress at Barcelona in February 2008? In hindsight, has the mobile entertainment industry progressed as envisaged?

Yes it’s been good but it could have been much better had we taken decisions on certain infrastructural related investments earlier.  It’s been now 3 years and we are still talking about introduction of 3G whereas the world is already moving into more advanced environments of 3.5 and 4. The government has aided certain parts of it but has created some kind of an over competitive environment right now. Scenarios where you have 11 telecom companies in 1 single market and another 5 coming up rarely exist.

 

3. Are you as a company ready with products centered on the 3G technology?

Oh yes! There is a suite of products and services that we have. Essentially, 3G or broadband will enable more people easy access to the internet through the phone. If you look at the internet today as the new form of education and not as a medium of information, then this will not only enhance people’s livelihood but also overall economic prosperity.  Research conducted all over the world shows that there is a direct correlation of enhanced and deeper broadband penetration with GDP growth of those countries.  So I think in that context what it leads to is a more digital lifestyle.  For e.g. young couples using an internet enabled 3G product can keep an eye on what is happening with their children. If a country like ours understands the platforms and technologies for this then as a company we will definitely be  at the forefront of enabling and leading to a digital and mobile lifestyle.

 

4. Considering that 3G phones are fairly expensive wouldn’t this technology cater to only a certain section of the urban population?

Not true!  In the mobile business niche is the new mass and everything is mass as it were if you see this thing more holistically. Globally the mobile data business will be 124 billion dollars next year, of which Mobile Entertainment will account for 42 billion dollars. In that, music, imagery video, gaming are principal constituents to it.  Now there are two things.  One is the device - the mobile phone, the laptop, the PC, or the television. It has an ability to store more now because memory is becoming a commodity. The second is that connectivity is becoming faster and therefore you can access a lot. And once you start thinking in that manner that’s really what this ecosystem is all about and in many ways convergence is becoming a reality.  You are on your PC or laptop and then you move forward into your blackberry, you are connected and you get into your Tata Sky.  The adoption of this is of course related to price point because it has to be viable for a large enough audience. But today a 3G enabled phone is available for Rs.5000/-.

 

5. As the new chairman of Mobile Entertainment Forum (MEF) what are the top two initiatives on your agenda?

MEF, a body that founded in the UK about 8 years back is made up of 250+ of the most prolific companies across a range of businesses that are all a part of the entire mobile and digital entertainment ecosystem - content owners, broadcasters, record companies, companies like ours, a whole host of technology companies etc. Among the numerous initiatives our thrust areas in 2009 are:-

 

6. How do you see the economic slowdown impacting the mobile entertainment industry globally and in India?

I think there is not an individual or business in this world which has not or will not continue to be impacted in some manner or the other and I mean it.  Whatever has happened, is happening and is likely to happen can only be best described as unprecedented and certainly somethingwhich there will be very few people who can turnaround and say that I have witnessed something of this nature before in my lifetime.  Even the economic depression in 1929-33 etc did not have this enormity and the world was not as flat or as connected as it is today. The scary part is of course that whatever is about to happen is likely to be even more dangerous in many ways than what we have witnessed till now.  So that’s a given.  So everything gets calibrated, adjusted and has a caveat attached to them in the current circumstances. 

But when you look at the mobile telephony data in India, the last 3 months have consistently been record breaking months.  The reason for that is that the mobile phone today has become such a utility that it not just makes you connect with people but has the power and potential of changing economic lifestyles.  For eg: If there are 350 million people currently accessing mobile services, even ITC and Unilever don’t reach more than 250 million customers.  Now to a customer in a small town, even basic information like electricity today will come at 3 pm empowers him to utilize the time before 2 pm to do other work rather than just wait by the pump.  Even something as elementary as that opens people’s mind. So even if one has to save 1000 Rupees to get a phone connection one will do so.  It is no longer a luxury.  So I think in that context the trend is positive and insulated from the rest of the world.  If the condition deteriorates then there is bound to be more pressure. Therefore ME growth is very closely linked to customer acquisition growth. If customer grows and gets on to a service there is no reason why he will not want his music, video etc.


 

7. What about the Digital Entertainment Industry? How do you see it getting impacted by the economic slowdown?

People may not want to change their music so often. Until now, that is the first few months of this blood bath; we have not witnessed that trend.   This is unlike a lot of industries which have literally cramped up like the realty industry.  Because construction is cramped up, steel goes through a crunch, cement goes through a crunch.  You cannot produce. And even if you do how do you stock that because there is lack of space.  Whereas our products and services being digital do not have a physical element to it and can exist somewhere in the ecosystem.

 

8. What are some of the measures that you have taken for managing the impact of the economic slowdown on Hungama?

All CAPEX is being very closely reviewed. We are preparing our people in a fair way, giving our employees a chance to enhance efficiency or pull up their socks if required.  The investments related negotiation process has seen a very hard nosed approach and as a result, we have seen a tremendous amount of positive fall out.  For example when we were looking for an office space in Delhi, we just stalled saying we are not buyers in the market right now.  And within a matter of four weeks we have seen as high as a 30% drop in prices.

 

9. Please share your thoughts on what you think business leaders should be doing differently to be prepared for or even prevent another economic meltdown like this in future?

I would like to talk about this more from an entrepreneurial perspective rather than how to avoid an economic crisis of this nature.  In my mind there is a very simple straightforward two word solution “Prevent Greed!”   I think that’s essentially what has resulted in this.

What can businesses do?  I think conserving cash is the first on the agenda for any business at this point in time.  It is going to be a commodity which will be fairly scarce.  It will certainly be available for businesses that have robust profitable pieces because it is not as if liquidity is not there but you have to be very tight fisted the way you approach it.  The second part is that you have to at times like this, talk more, both internally and externally. You have to communicate a lot more, both good and bad news.  You should not be shielding and protecting people from bad news or hiding things because I believe these are times which call for demonstration of even higher levels of transparency and trust to the internal and external stakeholders. This will ensure you come out holding hands, forming human chains and saying that we will not succumb to scenarios like this and we will overcome. That brings about a certain sense of motivation and drive. And the third part is that if you are fundamentally in businesses that you are confident about, then I would urge and encourage businesses to demonstrate pragmatic aggression. So you should certainly be on the look out for assets, whether it be human capital or in businesses. But do not necessarily jump to concluding deals right now because you are likely to get some very very good deals at this time so you can consolidate and strengthen your position even more.  In our own small way that is also the practice we are following.

    • Mobile Internet initiative: This is related to what you can do with getting more access to internet through mobile. To give you a perspective - there are a little over a billion people who are accessing the internet mostly through their PC, where as there are 4 billion people who have access to mobile phones, there are only 4.2 billion people who have access to toothbrushes in this world.  So you know it is the highest adoption of any form of technology in the world.  It is our belief that the next 2 billion people will access the internet not necessarily through the PC but through a converged mobile device of sorts. 

    • Ad-funded mobile entertainment: Until now this 30 to 35 billion dollar industry has largely been very transactional in nature i.e., it’s a consumer buying a product from a telecom company. Now the telecom companies are themselves becoming media companies thus reaching 85 to 87 billion consumers.  When you become a company of that size, you are also in that zone where you are a media company and when you are a media company, brands naturally need to participate in that entire ecosystem. So we feel that this wholebusiness of ME which is currently a transaction between a consumer and the operator will soon get a big boost because the brand will then turn around and say… “You know what, you want this video?  This game? This music? This service? I will give it to you or subsidise it for you” and that is what is called Ad-Funded mobile entertainment.  That is another thing that we are looking at and within that mobile advertising will be another area. 

Determine who Controls Your Life: Activity Corner: V3 Issue 1

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Locus of control is the degree to which people believe they are masters of their own fate. Internals believe that they are masters of their own fate. Externals see themselves as pawns of fate, believing that what happens to them in their lives is due to luck or chance.

To determine your locus of control read the following statements and indicate whether you agree more with choice A or choice B.

SCORING:

Scoring direction to “Determine who controls your life”

Give yourself 1 point for each of the following choices: 1B, 2A, 3A, 4B, 5B, 6A, 7A, 8A, 9B and 10A. Scores can be interpreted as follows:

The higher your internal score, the more you believe that you control your own destiny. The higher your external score, the more you believe that what happens to you in your life is due to luck or chance. Internals typically are more satisfied with their jobs and more involved in their jobs.

Source: Robbins, SP, 1994, ‘Organizational Behavior’, 6th edition, Prentice Hall of India, New Delhi.

The 7 Habits of Highly Effective People: Book Review: V3 Issue 1

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Title: The Seven Habits of Highly Effective People

Author: Steven R. Covey

Publication details: Simon & Schruster Ltd, Great Britain, 1992

Number of pages: 355 pages

Since first being introduced to this classic book on personal development as part of my MBA course, I have revisited it several times and got something new out of it, every time. I again find ‘The Seven Habits of Highly Effective People’ by Steven R. Covey relevant for today’s business context of uncertainty and economic upheaval. We are experiencing higher levels of stress with events like salary cuts and layoffs. In times like these it is essential that we stay grounded within ourselves and not loose faith in our own abilities. This book helps focus on the things you can control i.e., things within your “Circle of Control” rather than “Circle of Influence” and helps you stay confident and less stressed. It says…“It’s not what happens to us, but our response to what happens to us that hurts us.” What is more the book’s step-by-step holistic, integrated, principle-centered approach for living gives one the security to adapt to change, and the wisdom and power to take advantage of the opportunities that change creates.

Covey begins the book by discussing how we all have our own paradigms (map of how we perceive the world and how we think the world should be), the source of our attitudes and behaviors. We must begin ‘Personal Effectiveness’ by examining our own character, paradigms, and motives rather than looking at our problems as "being out there". This ‘inside-out’ approach says “If you want to have more freedom, more latitude in your job, be a more responsible, a more helpful, a more contributing employee…” Hence, Covey argues that character and principles are keys to success, effectiveness, and happiness in life. And that there are no quick fixes that will work permanently.

Covey then details out the ‘Seven Habits’ that will help you develop personally and so become more effective in how you live, work and relate with other people. The ‘Seven Habits’ help us move through three stages of personal development. The first three viz., be proactive, begin with the end in mind and put first things first, take you from dependence to independence. The next three viz., think "win/win", seek first to understand and then to be understood and synergise usher you along to interdependence, and the seventh viz., sharpen the saw is needed to reinforce the other habits. The habits are inter-related and synergistic, yet each one is powerful and worthy of being adopted and followed in its own right.

Apart from explaining vividly and developing a case for inculcating each of the habits, Covey also provides concrete exercises to apply and develop these habits over a period of time. For instance for the habit ‘synergise’ he suggests “Make a list of people who irritate you. Do they represent different views that could lead to synergy if you had greater intrinsic security and valued the difference?” The examples scattered throughout the book help reinforce the value of each habit. Covey illustrates the think "win/win", with the story of how a management training program was revamped. This not only resulted in saving costs for the company by reducing the training period drastically, but also in producing highly motivated and well trained set of management trainees.

What made the book an interesting read for me was that it integrates many useful concepts - personal scripts, importance and urgent quadrant, abundance mentality, principles of successful change, visioning, empathetic listening, effective delegation...the list can go on and on. Also the fact that Covey is quite specific helps. For example he recommends that one must devote an hour everyday to sharpen one’s saw viz., the habit of self renewal.

Like many self-help books, much of what you read here is common sense. However, what Covey manages to do so successfully is to convince the readers to take a long hard look at themselves. But, the only real way to test the value of the habits is to work on them and find out for oneself. While anybody embarking on a journey of self development will find this book valuable, it is a must read for every aspiring Manager.

Leading in Tough Times – Some Perspectives : Feature Article; V3 Issue 1

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In easy times resources are relatively abundant and the environment is relatively stable. Employees are excited, committed and eager to contribute. Potential customers are cash rich and are willing and able to buy your product. You can reasonably assume what works today will work tomorrow.  In difficult times the opposite is true and the business is challenged on multiple dimensions. What this essentially means is that in tough times leaders need to review and re-calibrate their leadership stance to sustain energy in their companies and to ensure their companies continue thriving.

 

Sustaining the energy

Let’s begin with the balance required between optimism and critical skepticism. In easy times, it is the leader’s responsibility to be skeptical when everyone around is getting excited and thinking everything will work. Being skeptical enough to ensure that passion and drive find effective and productive channels, works in good times. In difficult times, you need to lean towards the other end ie., keeping hope alive and reminding everyone about the numerous possibilities. Grounded optimism, reinforced with data keeps team energies buoyant. It’s a delicate balance to strike – grounded optimism which convinces the team, not exaggerated optimism that makes the rest of the organization skeptical. Stay credible enough to persuade. And also be inspiring.

I like this example of inspiration. At the end of World War II, Japanese business leader Matsushita stood before a gathering of his dejected, demoralized workforce, in an occupied country, with all the company’s inventory taken by the occupying power. He spoke about how taking the lead in quality and innovation and low prices would force competitors to do the same and “in 250 years would eliminate poverty in Japan.” He sat down to silence. Then, one by one his employees stood up, some with tears in their eyes, and said “I think I could dedicate my life to this.” Much of Japan’s progress can be traced back to moments like this in its history. As a leader you must also leverage the power of a shared purpose in these tough times.  Focus energy on long-term goals, especially stretch ones. Goals set a direction. Every day, people will think of that goal and how to move towards it. A stretch goal is like the Star. If you keep your eye fixed on the Star, you aim high and challenge your abilities - you may not reach the Star. But you will also go farther up than someone who is looking only at the apple on a tree. In difficult times, stretch goals look even more unattainable than they do in easy times. You will find people throwing up their hands, saying “That’s impossible! I’m just going to stay focused on the apple.”  As a leader, watch out for this tendency and help them deal with it.

Now in the process of reaching for the Stars there are bound to be mistakes. Adding to that, the cautious sentiment slows responses to changing environmental conditions, stress levels are higher and mistakes tend to get magnified. Also mistakes are more often visible since the world is less forgiving, now. Make your people realize how in such times, it is even more important that we handle mistakes and disappointments well. Mistakes are part of learning how to be effective in the current context.   If we handle a mistake well, the penalty is small. If we mishandle it say by covering it up etc then the penalty can be severe. Honest mistakes are not avoidable and rarely will they destroy a company. But not dealing with them in an honest and straightforward manner can have far reaching negative consequences for the company. Feeling less valuable, less knowledgeable, and less effective are likely outcomes of making more mistakes.  And this can sap productivity. As a leader, you can help ensure that those perfectly normal feelings do not interfere with your team members’ ability to contribute. Ensure your people retain confidence in themselves.

Another thing that can happen is infighting. When budgets are tighter, it is quite common to see employees becoming defensive, territorial, and competitive. Intensified negative politics at all levels can sap valuable energy and focus, causing a failure in meeting the challenges of facing external threats from competitors, customers, and suppliers. So, create more opportunities to bring your people together, encouraging questions and healthy discussions.

When the going is good there is money to spend on training and benefits, career growth opportunities exist, monetary rewards are strong. Limited business growth impacts all of them and employees may feel financially challenged.   Let people know that "we are in this together." You must also make sacrifices if you are asking or expecting your people to do so. Consider the example of Delta Airlines. While the senior people at most airlines took bonuses amidst record losses, the CEO of Delta Airlines turned down his yearly salary. This prompted a business column to say that Delta was "least likely" to go out of business of all major U.S. airlines. So, say a big ‘NO’ to any management bonuses while initiating layoffs.

Talking of layoffs, in tough times, employees get nervous about job security, career progress and sustainability of company operations. When things are going good, employees hearing about them through newspapers is fine. But bad news should always be conveyed by insiders first. Leaders should keep the channels of communication wide open, keeping people informed about what is happening and how the company is responding. When rumors do emerge, respond promptly. Communicate more than usual and more than you think you need to. During tough times employees need to see more of you. Taking regular rounds and chatting up with employees is essential in such times to be more visible and accessible. There is the story of Xenophon, a Greek military leader in 400 B.C.E., who believed in the value of making himself accessible to even the lowest ranks of his men. With the Athenian army in danger of imminent attack and its back to a raging river two of Xenophon’s foot soldiers managed to locate a river crossing that would allow the army to escape. Because of the trust between the leader and his followers they went directly to Xenophon with their discovery. Xenophon took immediate action, and the army succeeded in escaping.

Now I know I have not touched upon the business aspects in our discussion. I leave that to the management strategist. But a clear opportunity exists to align the entire organization for efficiency. Improve the coordination and alignment of departments, strengthen performance tracking and review mechanisms, focus on waste management, lean principles etc.   Leaders should frame an agenda and meet with key stakeholders to gain support and build commitment to efficiency goals.

More than ever be curious, become aware - to understand and deal with your company’s situation better.  You need fresh ideas to help you respond to the new challenges and opportunities effectively. Read more broadly than before. Be alert for trends, ideas and approaches that you have never explored before. Question your assumptions. Always ask yourself: “What if…” and explore possibilities.  Connect with leading thinkers in your industry.  

Lastly a word on values and culture, Ok maybe more than a word. Under tough conditions, typically rational people can start to act in ways that are self-destructive and dangerous for the organization. In such scenarios organization’s values and culture can protect against this. A person previously good with maintaining client relationships may now start focusing more on squeezing the client rather than considering the best interests of the client. But a company that values client progress will be able to discourage such behaviour. In difficult times leaders have to pay even more attention to the values and culture of their organization. One way to do this is by a leader personally responding to changes effectively.

 

Personally responding to changes effectively

Your assumptions dictate your personal response to changes. Personal responses predispose you to certain behaviors or practices. Your behavior sets the tone for the behaviors of other people in the organization. This is how your company’s culture is formed. Hence responding effectively to any change be it recession or some other crisis is essential. Lee J. Colan, Ph.D. in his article ‘Here We Go Again Leading in Tough Times’ describes the following three common personal responses of a leader to change, with corresponding alternate and effective responses for each one.

Exemplary leadership
  
The most striking leadership we have seen in recent times has been the way Barack Obama ran his election campaign despite being faced with many challenges. Business leaders can draw lots of lessons from the way he organized and led his campaign team.

  • Obama created a grassroots movement by building an ever expanding organization of empowered leaders, who in turn engaged people from their social networks like Facebook.

  • The entire organization was aligned around a single goal of electing Obama as President, a reaching for the Stars goal.

  • Everybody operated with common values - "Offer messages of hope, don't denigrate our opponents, refuse to make deals".

  • Campaign leaders subordinated their egos and personal ambitions to the greater goal. Those who deviated quickly exited.

  • Obama set a clear, consistent tone from the top and never wavered, even when things weren't going well.

  • Obama's greater mission transcended internal goals, such as fundraising, endorsements, and campaign events. Each of these areas had goals tied to the greater mission.

  • The campaign team used the most modern Internet tools to communicate, motivate and inspire people and to guide their actions. Each day, 5 million people received personal messages from campaign headquarters or even Obama himself. This organization collaborated across a wide range of geographies and campaign functions, all tightly integrated nationally and executed locally.

 

Conclusion

There are several ways to lead differently in tough times. The ones I have listed are only a few among them. But what is important for you as a leader is to reflect. Reflect on every aspect of your leadership, on what you normally do and then see what you need to do differently. Some actions may have to be done a little differently and, others quite differently. This approach will see you providing effective leadership for your people, in good times as well as bad.

 

References

  • Lehman, J, ‘Leadership in difficult times is different’, Jan 13 2009, http://www.livemint.com/2009/01/13212610/Leadership-in-difficult-times.html?h=B.
  • Dr. Izzo, J, ‘Leading in Tough Times’, September 2008, http://www.theizzogroup.com/pdfs/NL/The%20Enlightened%20Leader%20Volume%2025%20Sept. %202008%20Dr.%20John%20Izzo.pdf.
  • Colan,L.,J, ‘Here We Go Again Leading in Tough Times’, http://changethis.com/pdf/53.03.DownturnLeadership.pdf.
  • ‘How to inspire people in tough times - Kotter on Matsushita’, http://www.theleadershiphub.com/blogs/how-inspire-people-tough-times-kotter-matsushita.
  • George,B, ‘Obama: A leader for the ‘we’ generation’, Jan. 19, 2009, http://www.msnbc.msn.com/id/28693786/.
  • Slack,K, ‘Leading During a Recession’,http://www.forum.com/libraries/white_paper/leadrcssus.pdf.

Ask the Expert : V2 Issue 3

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1. Our company is facing revenue, market, and cost pressures. Our stock price is down. There is a freeze on hiring and on raises. Motivation has never been a problem with my team members. But off late because of these developments, most of my team members are demotivated. How do I motivate my team in tough times like these?

 

It is natural for employees to feel low in the given circumstances. But over a period of time with the following steps you can improve and maintain the morale of your team.

  • Be transparent with company news: Be honest. Don’t hold back or play down information even if it is about the negative impact of the events on the company. Let them know what is happening and also what measures are being taken to counter each challenge.

  • Discuss and address fears and concerns: Your team members may be worried about job security, their compensation, and their ability to deliver in tough conditions. People typically need to talk more in such times. Be empathetic. Try and help them. For instance give extra support to the employees that are struggling to meet their job commitments or reassure them that their jobs are secure.

  • Highlight what is working: Has sales gone down, but company has bagged a couple of long term contracts? If so there is still cause to celebrate instead of just brooding. Veer discussions to the exciting possibilities that a downturn can bring in for your company and team, not just the gloom.

  • Give them something else to think about: Inspiring goals can energise and motivate people and help them get out of their depression. Help each of your team members set goals that they find inspiring. It could even be a personal goal like upgrading his/her skill set.

  • Help team remain focused on your team goals: It is easy to get distracted by what is happening and lose focus on the goals. Encourage and appreciate even the small achievements and short term goals met. And definitely reward those who meet their long term goals.

  • Thank them for their extra effort: In times like this every extra bit done to deliver results is helpful. Ensure you notice efforts like these and let each of your team members know how much you value their contribution.

In addition to the above, if you discharge your responsibilities of a leader calmly and confidently you are sure to regain the motivation of your team members.

  

2. I manage a small business unit. I am doing all I can to become lean and survive the economic slowdown. Unfortunately as one of cost cutting measures, I will have to layoff some of my staff. How can I do it as sensitively as possible?

 

Your objective during a layoff should be to treat the employees being laid off respectfully and minimize demoralization of your remaining staff.

 

Firstly be clear as to the business reasons for the need for a layoff. Then determine objective criteria like seniority, critical skills etc for selecting the people to be laid off. Having done this, prepare the relevant termination information like notification letter, salary continuation/termination date, benefits, outplacement, etc. It is also important to prepare yourself emotionally to handle the reactions of the employee. Now you are ready to have a meeting 

 

You should thank the employee for his or her contributions and explain how the layoff decision is economic rather than personal. Explain the criteria used for determining the people to be laid off. Allow the employee to respond. Listen patiently to what he he/she has to say but avoid getting into a debate or argument. Then explain the termination process. Some do's and don’ts….

  • Prepare a script for the key message so that you are clear as to what you are going to say.
  • Ensure there is consistency of message across all employees being laid off.
  • Keep the meeting as brief as possible.
  • Do not mix performance review with termination discussion.
  • Do not engage in small talk, use humor etc in an attempt to lighten up things.
  • Avoid discussing other employees

After meeting all the employees being laid off, immediately hold a meeting of all other employees to ward off rumors. In the meeting assure all of them that their jobs are secure and explain to them the rationale for the layoff and criteria used for the same. Let their managers once again reassure them about the security of their jobs in a one on one meeting.

  

3. I take care of HR for my company. I am very happy to see my leadership team trying to proactively do all it can to cope with the expected pressures of the economic slowdown. As the HR representative, I would like also to help. Typically what are the ways in which HR can contribute in such a scenario?

 

As always HR has to play an important role in ensuring business success by deploying appropriate people practices and processes.

Some steps which typically HR has taken, in companies that have come out of economic slowdowns as winners, are listed below.

  • Align with leadership team: Providing a proactive HR service in a downturn will become easy if you can work closely with the CEO and the leadership team. You will then be able to understand what is crucial to the business success. This in turn will help you align HR priorities to the organization priorities and develop robust plans.

  • Optimize Resources: These times can provide opportunities to hire some great talent otherwise not available to you easily. They may be available at a reasonable cost. Also transition or re-deploy non critical resources.

  • Communicate: Keep communication with employees flowing, about the true financial picture, about their jobs, about everything that can affect them through appropriate channels of communication.    You would be surprised at how often employees are willing to make changes even negative ones like a pay cut, when they understand the facts and are not worried based on rumours flying around the workplace.

  • Take care of your top talent: When you are busy fire fighting and stop paying attention to your top talent, they can become targets of poaching by other companies. It is critical you retain them not only for managing current business, but also for managing future business when things pick up. Keep them engaged by involving them in the initiatives taken to manage the impact of downturn.

  • Continue development efforts: Companies that continue their training efforts gain in the long term. It need not be expensive external training. It can be in the form of books, online training, mentoring, cross functional exposure etc.

  • Relook at your performance management: You may want to add some new dimensions to your performance parameters. In addition to the kind of results you would reward in a thriving economy reward the ones which help in tiding over challenges in a slow economy.

  • Preserve the core culture and values of the company: As the custodian of company culture and values, take steps to retain them. For instance don’t discourage ‘Research and Development’ efforts if company believes in leading the market through innovation.

 

These are challenging and hence also exciting times for HR professionals. If you truly want to add value to your company, I am sure you will rise to the occasion and find a way. All the best!

Career Management during Tough Times : Management Funda; V2 Issue 3

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We spend 50% of our time working and some of us cannot stop thinking of work even during the remaining 50% of the time. Thus our work and career forms an integral part of our lives. It is important we manage this part effectively, so that whatever we desire from it, be it job satisfaction, monetary rewards or enriching experiences, come our way.  And it is important we manage our careers even more diligently when times are tough to ensure the good things continue coming our way.

Insulating your career

An economic slowdown may throw up some tough situations in our careers. While it may not be possible for us to avoid the negative impact, it is possible for us to minimize the impact by taking some of the steps listed below.

1. Adapt to changes: In the light of changed circumstances in the economy understand how your company’s current priorities have changed. Align your short term goals to the new focus areas of your organization in discussion with your boss so that you continue to contribute meaningfully.

2. Provide value to your employer: Double your efforts in being valuable to your company. All your good work is sure to not go unnoticed. Even if it is not part of your job description, help your company increase profit, retain customers, increase productivity or reduce expenses. Seize opportunities for your company that these turbulent times may throw up. It could be in the form of hiring talented people who are out of jobs or finding new service or product opportunities due to changes in the economy etc. If you are in a managerial position help and support your team members in coping with pressures of salary cuts, responsibilities to deliver in trying times  and in aligning their work to new priorities

3. Develop skills:  Focus on building skills that will help you remain current in your industry or make you much more marketable. If there has been a layoff and the company has done away with specialists who were too costly, see if you can develop part of those skills required by the company. You may not enjoy the rewards immediately but when things improve you can bet you will get a raise.Develop transferable skills, skills you can use in other industries and roles. That way you can apply to many more jobs when you need to.

4. Develop a clear career plan: This is a time to remain focused on your long term career goals to reach where you want to be. Develop your career plan if you haven’t done so already. Answers to two simple questions: "Where do I want to be?" and "How will I get there?" can help you here. While in the short term, you can take up roles which do not fit into your career plan to tide over financial difficulties, try getting back on course at the earliest.

5. Have a backup career plan: To expand your career possibilities create a second career plan , one which you can switch to if the first one is not working out for you. Get more creative and bold here and plan for career moves that will throw up exciting possibilities.Think of what new career would fit best into your old career? What industries could you transfer into? What are some of the recession proof jobs that you can take up?

6. Network:Finding time to interact with people directly not related to your work can be difficult. But the effort taken in this direction may seem like a boon one day when somebody from your network helps you with a job change.

7. Do not quit your current job unless you are really unhappy: In an economic slow down great jobs are hard to come by. Also new recruits especially people on probation maybe the first ones to be terminated incase there is a layoff. So, don’t even think of quitting if you are reasonably happy with the company but find the current job not exciting enough. Instead explore possibilities of an internal transfer by developing your skills for the identified role.

8. Save for a rainy day and invest carefully: An emergency fund in case you are faced with financial hardships will be useful. The more the better. So start early. Ensure you have a minimum of six months’ take home salary. This will give you adequate time to find a good job incase of a job loss. While investing ensure you also invest in those plans that will allow you access to cash instantly, instead of plans that involve a lock-in rule. You should be able to use the savings when you need it right?

9. Assess your finances and manage them judicially: Needless to say, you should cut down on any unnecessary recurring expenses. Watch your discretionary spending. Now is not the time to buy that home theatre you had dreamed about. Make a budget and stick to it.Health costs can be a financial drain. So take a health insurance for self and family. Clear most of your debts. Develop alternate sources of income like rent from a paying guest, additional income from freelancing or teaching, hobbies that can be lucrative etc.

10. Assess your current job situation: Understanding how secure your job is, will help you be better prepared for an eventuality like a layoff. Do a reality check of your industry. Don’t get taken in by the generalizations. Understand your company’s future prospects. Determine how your department is doing. When Microsoft was doing well, they announced a layoff of people in their floppy disk division. Now review yourself. How are your accomplishments? Does your manager recognize them and think you’re doing a great job? What about the region you are living and working in? Are there other regions in the country still prospering despite a slowdown? Is there a cheaper place to live in?

Conclusion

Most of all stay positive. Remember slowdowns don’t last forever. History will tell you that. Your efforts, resilience and confidence in your self can help you survive and even thrive in these times. It is possible that you may give up your goals and give up on your self when faced with hardships.  But you can also emerge tougher and stronger, having withstood challenges and exploited the various opportunities an economic slowdown threw up. What is it going to be? It is up to you to decide and make it happen.

References

  • C, T, “How to Survive a Recession”, http://www.mahalo.com/How_to_Survive_a_Recession.
  • Rosner, B and Campbell, S, “Facing Your Economic Recession Fears - Career Survival Strategies”, http://www.payscale.com/economic-recession-in-america.aspx.
  • “Countering sudden loss of your job”,Oct 25, 2008, http://www.citeman.com/index.php/countering-sudden-loss-of-your-job/.

Employee Speak: Saurabh Chandra, Co-Founder and CEO, Neev Technologies

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1. According to Nasscom, India’s IT industry is insulated from the financial crisis that has hit many economies globally, and companies here have not stopped hiring either. According to you what will be the impact of the current economic slowdown on software services industry in India?

This economic slowdown is surely going to have an impact on the software services industry as with all industries. People who claim that the IT industry is not going to be affected are fooling themselves. Cost cutting is the order of the day. At the moment confidence is shaken in businesses and new projects are going on hold. A contrary view is that more outsourcing will happen since people want to save costs.

 

2. In what ways will the economic slowdown impact Neev Technologies?

There will be no immediate impact on Neev Technologies, as Neev is not highly US centric. The United States accounts for only a small chunk of Neev’s business. Neev has clients spread across Europe, the Middle East and India. Europe is not yet saturated in terms of outsourcing and businesses there are looking at outsourcing more work to cut costs on account of the recession.

 

3. What steps are you taking to minimize the economic impact to your business?

Neev too has taken a few measures proactively to minimise the impact of the recession. We are cutting costs aggressively and reducing overheads. For sales, we are shifting from the retainer model to a commission model. We have started sharing risks with our vendors and partners.

We are trying to become more efficient as a ‘Software Development’ organisation. The focus is now on increasing profitability, rather than increasing revenues.

 

4. What steps are you taking to minimize the impact on your employees?

At present, we do not see any direct impact on employees. The economic slowdown has not yet come to that level in India where individuals will get affected. I do not see a problem at an individual level in the near future. We are not looking at downsizing at the moment, but yes growth may be slower. We are still recruiting for a few positions.

 

5. How have your priorities changed on account of the downturn? Will you continue to focus on adding more client accounts and setting foot in newer geographies?

Yes, our focus has shifted from the top line to the bottom line. We are trying to increase our focus on every aspect of the business. We are focusing more on fewer geographies. We are paying more attention to our existing clients, to deliver more value for their money. We are also tapping our old clients for new projects. As always we are getting referrals from our clients.

 

6. There is a silver lining to every cloud. So while people are talking of the various negatives of this downturn, what do you feel are the positives of a downturn?

People will now realize the value of money, especially people in the IT industry. Earlier companies hired for numbers rather than quality. Correction was required in the mindset of people. People will now focus on performance. The quality of work will improve. Employees are becoming more conscious of their drawbacks and are looking at learning new skills, technologies etc.

 

7. What are some of the opportunities you foresee for players in your industry during a time like this?

This is a time when the genuinely strong companies will prove themselves, and emerge stronger. Weaker companies will perish. We, at Neev, see this as a time to excel and get ahead!