Turnaround situations can fail if HR management is not taken as a strategic issue to look into.

The second aspect is about the leader’s role. In the Indian context, people look up to leaders as a head of the institution, which sometimes, is considered as a family. He is expected to layout the future path, clear doubts, hear with an open mind and give a thoughtful ear to employee feedback and suggestions.

We, at NCR, have gone through turnaround situations which can be a business transformation, mergers and acquisitions or demergers. We also use this process to implement any new process and systems which require behavioural or cultural change, for example implementing an HR-shared services model.

In every scenario, a core project team is created which is a cross functional team and these teams are responsible for working on all aspects of the change much in advance.

In some cases, if it is a critical aspect where HR needs deeper insights in to issues like benefits or retention, etc, then a sub-team is formed to deep dive and recommend solutions for it.

This cross functional team is not just limited to strategise but also to implement the entire change process. As a standard policy at NCR, every team member needs to sign a non-disclosure agreement till the project is successfully completed or made public.

The author is India HR Head at NCR Corporation with 14 years of experience in different industries-ranging from manufacturing, process industry, and IT services. Before joining NCR, he had worked with IBM India as GM HR, Hyderabad, where he managed the HR function for 8,000 employees and 350 managers. He has been been responsible for providing HR leadership and strategy and taking HR initiatives and processes in addition to having good exposure for a wide range of HR verticals such as staffing, performance management, learning & development etc. At NCR, he is responsible for leading the HR function at country level and is responsible for driving the essential HR transformation and change management functions in the region. He specialises in business partnership, org wide leadership development, HR risk management, HR consulting, OD & change management. Read more..

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Importance of communication and feedback

The organisation’s willingness, desire and ability to implement change are the key to its success. During times of change, employees at various levels are exposed to the vagaries of rumours and incorrect representation of the information, etc. These have a debilitating effect on the employees, and the organisation, at large. The effects include low motivation, a demoralised team and drop in productivity levels. Our experience shows, communication should be a mix of top-down and bottom-up approach.

Owing to its closeness with employees, HR understands the impact of change on them, and hence can bring in suitable framework and initiatives. At Virtusa, there is a communication framework ‘VIRCOMM’ which is a structured, calendarised and theme based two-way communication flow. This approach helps in getting a real time feedback from the employees and to clarify any ambiguity in their minds.

Like communication, timely feedback from employees and its resolutions play an important role. Staff feedback needs to be put to action and well communicated for employees to sense the organisation’s responsibility. At Virtusa, Global Team Member Survey (GTMS) is an initiative where feedback is collected in a structured manner and action plans are drawn collaboratively by employee volunteers and leadership sponsors. This ensures transparent approach to handling change.

Change is the only constant and every organisation, at some point, will be impacted by it. Anticipation and overcoming the effects of change through a planned approach can ensure people’s involvement, motivation and focus in supporting growth and success.Read more...

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Reputation is a critical factor

Q. What are the focus areas for a CEO to help HR develop an effective business-oriented plan?
Timothy: The CEO must involve HR early in discussions regarding the strategy. HR needs to understand requirements and advise on any people/organisational issue which may impact the delivery of the strategy. These include a number of factors relating to resourcing, employee engagement, employment legislation, development, etc.

Q. How do you see HR contributing to the shareholder value?
Timothy: The key influence HR has in this area is strategic resourcing – ensuring the right people are in the right roles at the right time. The CEO needs to ensure that HR and the hiring community are aware of the critical targets so that HR and the hiring managers can work together to either recruit or develop the workforce to the required level. This includes immediate resourcing but also encompasses the broader areas of talent management and succession planning.

Q. Please share an instance when HR understood the requirements of a crisis and delivered.
Timothy: When a customer raised the level of work required and the resources were not in place to meet the request, HR was able to partner the business managers and engage the additional resource to the client’s satisfaction without compromising on the delivery.

Q. What restricts companies from having an outstanding employer brand? How can the leadership and HR work towards it?
Timothy: Reputation is a critical factor in establishing an outstanding employer brand. While many factors such as remuneration package, culture, training and development contribute to it, they fall away if the reputation perceived by employees, customers and suppliers is different. The basic role of leadership and HR demands that a competitive package is in place and leverage on any advantage other organisations might not have. HR should also check and report to the leadership the status of employee satisfaction. It can do this through employee surveys and exit interviews. HR should also make recommendations on improvements to enhance employer brand. Read more..

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The HR department has always played a vital role in an organisation, but how effective is its role as a strategic business partner, asks Sanghamitra Khan

A CEO wants the HR to be its strategic business partner. But, it has been indicated in several studies that there is a gap between the CEO’s expectations and what the HR department delivers. According to a US-based study, between 1998 and 2007, the HR’s impact on company strategy has not increased. After talks about the HR being strategic partner for nearly two decades, it is yet to get a seat at the ‘table’ where important business decisions are made. HR has a long way to go before it contributes to the corporate discussion about products, strategy and customers.

What could have been the probable reasons for such a condition? As per Geoffrey Matthews, VP – HR Strategy & Organisational Development, Merck Serono, the HR is not in the same frame of reference of executives. It has been found that the executives and the HR do not speak the same language and thus fail to be on the same page. The HR waits to be asked to contribute, making it difficult to demonstrate its effective contribution to the business. Here lies its failure to register as a key partner. Such a scenario calls for fast and effective action from the HR.

First, the HR needs to allot its time in understanding the business along with its investment in HR administrative tasks. The department also needs to understand what is on his CEO’s mind and whether it is performing to match his standard. The main areas of concern for CEOs in the current scheme of things have to be understood and the HR has to successfully contribute to those areas. HR has to inculcate the skills that can help it understand the roles its management has in the business. Ability to understand business needs is the basic requirement for developing any strong and flourishing business. So, the HR needs to understand this from the beginning.

Second, HR needs to effectively communicate its contributions, and for that it has to make its argument in business terms – not in human resources terms. HR needs to recognise the difference between the language used by it and that of business executives. Some executives say HR language consists of soft terminology and irrelevant wording which lacks measurement. Click here to read more...

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Walk before you run..

Q. What do you look for in a candidate at the time of recruitment?
A. Professional ethics, integrity, attitude one brings to the organisation, besides capabilities, competency and education.

We prefer a strong academic background. If a candidate has been serious about his career as a student, he will be serious in growing with the organisation too. We hire from the best and focus on attracting talent from the top employers and colleges.

We have a structured way of analysing people that includes personality and technical tests and various rounds of interview. We never go by democratic way of selection i.e., seven saying ‘yes’ and three saying ‘no’, as the latter could have observed something that others failed to notice.

Q. Tell us about the challenges you have experienced in India.
A. On people’s front, it is retention and growing talent. We understand that the best we have is also the best for our competitors. It is about retaining talent by ensuring that employees do not lose faith in the organisation. Re-evaluating practices, for instance, what was done last year might not be the reasons to gain success this year. Growing a business is a challenge in itself, as it is about innovation, reinventing, and how fast one can adapt.

Q. The company was recently recognised as a top employer amongst the top 20 software companies in India (as per a survey conducted by DataQuest). What are the people practices behind this achievement?
A. We have a strong mentorship and coaching programme that is implemented in the best possible manner. We have identified the core talent of the organisation, irrespective of age, experience and the company they had worked with. This is where a young guy can mentor a senior director and a senior director can mentor a middle manager. We believe in practices such as performance management, learning and development, exit interviews, and even reaching out to people who have left the company to welcome them back. Click here to read full interview...

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A Beautiful Mind

Although he may confess to being slow when it comes to making quick decisions, it gives him the opportunity to focus on a topic in-depth and come up with several good ideas in the process. Prof. Aaron Ahuvia is presently Professor of Marketing at the University of Michigan-Dearborn, where he won the 2007 Distinguished Research Award and was named the 2001 Faculty Member of the Year. He received his PhD in Marketing in 1993, from Northwestern University’s Kellogg College of Business, where he assisted Prof. Phillip Kotler with a revision of his classic textbook, alongside working on his own research. Today, he is amongst the world’s most published authors on consumer behaviour and is passionate about understanding their love for products and brands. In an exclusive meeting with The Human Factor, he shares more on the huge potential for social work in India, and the way forward for the economy.

Q. Tell us about your career journey; how did you zero in on marketing as your specialisation?
A. I was working in corporate finance at Duff & Phelps but I hated it. Maybe if I had stayed with it long enough to get to do more of the actual analysis, I might have come to like it. This is when computers were starting to come in, so I had to spend a lot of time copying numbers out of books into spreadsheets. But I am very bad at such transactions, so I went to Prof. Steve Burnett and shared my experience. He told me to get into a PhD programme in Marketing instead of finding a different job, which sounded like a wonderful idea, and off I went. At that point, I had never worked in marketing, but over the next 25 years I got a lot of chances to do so, both professionally and as a teacher. Click here to read more...

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Engineering Cubed!

It is perhaps a moment of deep satisfaction when an educational trust is successful in the endeavour that it sets out to achieve, and so was the case with Citizens Welfare Association (CWA) established in 2000. With an aim of meeting the demands of a developing India, CWA set up Billabong High International School in 2006 in Thane, Mumbai. Buoyed by its success, with 1700 students presently studying in its 80,000-square feet campus, the ECube Global College was set up in August 2010.

Catering to three streams of engineering, namely, computer, mechanical, and electronics, ECube’s name symbolises the values of the 3Es “enrich, empower, and enlighten.” It has been set up in partnership with Newcastle University, UK, with the mandate of providing global exposure post the course’s first year. Mr. Sandeep Goenka shares about the vision, “In a bid to remove the uncertainties that students feel when they are pass out of school, we decided to provide the comfort of an institute to cater to engineering aspirations, an idea we had been toying with for some time. Moreover, through our international alliance, we wanted to enable a smooth transition for students when they go overseas to study.”

Thus began the journey of ECube, where students spend the first year on the Thane campus, and are expected to apply to enter the second year of the corresponding degree course at the Newcastle University. Click here to continue...

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She Writes Story Contest winner: Dr Geeta Sundar

Dr Geeta Sundar is one of twelve winners of the MSN-Random House She Writes a Story Contest', as chosen by our judges. Her story 'White Chilly' features in the 'She Writes: A collection of Short Stories' published by Random House India and available at all leading bookstores.

Dr Geeta Sundar began hercareer as a consultant in medicine at BL Kapoor Memorial hospital, Delhi. She has also done a course in medico-legal law. She is a regular contributor to Times Wellness as well as a corporate lecturer. Her published works include Health after Forty and A-Z of Bone Muscle and Joint Diseases. She has also written a work of fiction called Premier Murder League. She is both a consultant in medicine and a writer. At present, she is working in Pune.

read an extract from dr geeta sundar's story 'white chilly'

Walking up the gentle slopes of the Talzai hill near my house, my husband and I would see her-fair and petite, running up the hill in her 'navvari' sari and slippers. She would be singing aloud and waving her hands about and was an inspiration to all of us who regularly climbed the hill as part of our daily exercise regimen.

One day on the way down, I decided to speak to her. 'Aji, how old are you?' I asked in Marathi.

Without missing a step she replied in English, '85 years.' And then she revealed the secret to her exuberant health-'I run up and down the hill every day, do six surya namaskars and eat everything!'

I smiled. She had forgotten to add the main ingredient-her positive attitude.

We crossed each other every day after that and she would smile and wave at us until one day she wasn't there anymore. I had grown so used to seeing her that at every bend of the hill my eyes would eagerly scan the road ahead, seeking her. But the days stretched to months and she did not return.

Then after three months I spotted her on a bench. I immediately went and sat next to her. I had come alone for the walk that day. 'Where have you been, aji? We missed you!'

A beautiful smile spread across her face. 'Complete your walk and then come and join me here-I'll tell you.'

My curiosity was aroused, but I obediently finished my trek and on the way down joined her on the bench.

'Please tell me what happened?' I noticed the crutches resting under the bench.

'One evening I decided to take a short cut down the hill, slipped, and fell very hard. I was unable to get up as I had fractured my leg. A few well-wishers took me to a hospital and I had to be operated on and a rod inserted into the main bone in my left leg. The people were kind and took care of me till I was discharged from the hospital.'

What about your family, they must have been there with you too?'

'No, I have five children but they are all abroad. They called and wanted to come, but I told them I could manage with the help of my maid.'

'And what about your husband?' I asked gently.

'He passed away five years ago-,' She paused. 'Would you like to hear my story?'

I really did not have the time but some force held me back. 'Yes,' I said. 'I'd love to.' Share5

in her own words: dr geeta sundar

Have you always been a writer?

I have always enjoyed writing-essays, humour articles, health articles since school days. But took to serious writing ten years back when I started writing books. I started with health books and then went on to fiction. And now I intend taking my writing career as seriously as my medical career.

What made you start writing?

I am a medical consultant and had kept busy with my practice and running my home for several years after marriage but the writing bug kept trying to surface until finally one day it seriously got to me.

What inspired you to enter She Writes?

I had just returned from US, and saw the competition announcement on my hotmail. There were four days left for the competition to end and since I love challenges, I decided to enter.

Why did you choose the category you did?

I always wanted to write about my mother and she is the inspiration behind my story 'White Chilly', although two other women are also behind it. And 'Experience is the name we give to our mistakes' fitted into the story.

Do you have a writing routine - e.g. do you have favourite places to write/favourite times of day/do you write longhand or on a computer?

I am a busy consultant and have a swivel chair with my lap-top to one side, and table facing patients to the other and in between patients I turn to my lap top and write a few lines and I also try to snatch an hour or two whenever and wherever I can.

Who is your favourite author?

Jane Austen, Mark Twain, Charles Dickens, Munshi Premchand, Jeffrey Archer and PG Wodehouse in equal measure.

Which book has inspired you the most?

Munshi Premchand's -'Premchandki Sarvasreshtha Kahanian' in Hindi-a book of short stories.

Which key piece of advice would you give to any other budding writer?

Avoid using complex words and flowery language and maintain a good flow.

HR FACTORED ED COHEN

Global Talent Leader Ed Cohen tells Jisla Xavier the need for corporate and academic worlds in India to have a greater connect with each other Issue Date - 01/07/2011

Mr. Ed Cohen has over 30 years experience in strategic leadership, influencing change and culture, and talent development. He is a leading business coach and has authored a best-seller titled ‘Leadership Without Borders’. Mr. Cohen has also helped two companies attain the number one ranking in the American Society of Training and Development BEST Awards. In an exclusive interview with The Human Factor, he talks about career, the lessons learnt and much more.

Q. You have played different roles in diverse businesses. Did you always know that this is what you wanted to do in life?

A. I did. I always knew that I want ed to do something in education and learning. Growing up, I wanted to be a doctor but when I got to college I did not want that, so I got into the business line. I did accounting for a couple of years and found out that the thing that I really loved was working with people. So, I left accounting and joined the education and learning world in 1982.

Q. What attracted you towards HR?

A. What initially attracted me is not the thing that actually kept me going throughout my career. When I was six, I was injured in a fire and had to spend six months in a hospital. My first grade teacher would come to the hospital every day after school and tutor me. She did it without any extra pay. This drew me towards teaching. When I went into learning, I discovered that I was able to articulate and communicate in a way that people could learn effectively, and it excited me.

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Vijay Mallya and other top Kingfisher executives and investigate...

As if the problems with global fuel prices weren’t enough, Kingfisher has gone ahead and undertaken strategies that only seem a do ‘and’ die effort. How is Mallya even sustaining the unbelievable losses quarter after quarter? B&E’s Shashank Tripathi and Angshuman Paul meet Vijay Mallya and other top Kingfisher executives and investigate...

But look at what Kingfisher is doing on the other side. Frighteningly, amidst all this bloodbath, it is all set to commence its international operations in September 2008. The Daily Bangalore-London and Bombay-London flights would commence by September 3, while the Bangalore-San Francisco flight would soon follow. The company has even planned to start flights to New York, Singapore, Hong Kong and the Middle East shortly after that. Mind you, company has planned all this at a time when most of the international carriers have either cut their flights to numerous destinations or are planning to do so.

This at a time when international airlines are cutting left, right and centre. According to figures, three big airlines, American, Delta and United, have been cutting down their services dramatically. Where American Airlines plans to reduce 86 flights in November, Delta plans to cut 68, while United has decided to cut 266 flights per week as well. Moreover, other regional airlines flying in America are all set to slash over 1,200 weekly commuter flights. In fact, the Los Angeles International Airport (LAX) has seen a drop of 16.4% in flights in the last one year. If you thought this was worrying Kingfisher, you won’t even catch a whisper of that! Kingfisher is planning to provide their international fliers with what they call ‘better than world-class amenities’. The Kingfisher First cabin would feature an in-seat massager, touch screen controls, mood lighting, noise cancellation headphones by BOSE and in-seat chargers and USB connectors. Furthermore, an on-board chef would prepare international cuisines as per the passenger’s demand, while a well-stocked bar with a bartender in the lounge-like arrangement would make the experience more delightful. Quality is what they are boasting. Suicide is what it seems to us!

As per Airbus’s website, Kingfisher’s order-list stands at 71 aircraft, out of which 10 have been delivered. There are growing concerns that Kingfisher might need to further delay or cut deliveries to avoid losses. Where in heavens is the money coming from for Mallya? During all these years, the United Breweries Group has been supporting the losses of Kingfisher Airlines. When we caught up with Mallya’s speech at the Farnborough International Air Show, UK on July 17, 2008, he was still resolute, “The UB Group has huge cash flows which will see Kingfisher through turbulent times. Kingfisher is well funded. It has optimised its operations and therefore we are not nearly as vulnerable as our competitors.” But with losses amounting to thousands of crore, optimisation still remains a chimera.

Kingfisher Airlines recently raised a loan of Rs.1,000 crore from ICICI Bank to support its escalating expenses as the condition of UB Group appears to deteriorating. This can also be quite apparent from the fact that in the past one month, the share price of United Breweries Holdings Ltd. has plummeted petrifyingly. It has dropped from Rs.1,255 on October 31, 2007, to Rs.279 on July 23, 2008. The Air Deccan share, which was at a high of Rs.335 on December 19, 2007, is languishing at a deathly Rs.79.65 on July 23, 2008.

Worse, without an intelligent hedging strategy against oil price hits [for example, Southwest Airlines in 2007 locked into oil at $51 a barrel], Kingfisher is being hit fatally on a daily basis. Is the worse just around the corner? Senior Aviation Analyst Brij Bharadwaj tells us, “Although survival in today’s scenario depends upon how deep pocketed you are, if the current trend continues, there might be no Kingfisher Airlines next year.” One might forget that at one point a couple of years back, Mallya was also fighting hard to take over Sahara Airlines [when Jet was still in arbitration]. A few months ago, Mallaya was in talks with EADS to revive its single piston engine aircraft manufacturing business. There was also news that he has pledged a personal stake of $200 million to the US-based Epic aircraft to develop very light jets. Added to this is Mallya’s recent failed bid to take over Spicejet. Is Mallya flailing arms in a dying attempt to save Kingfisher? How long will shareholders of the UB Group allow cross subsidisation of unbelievable losses? Is there anything positive Mallya can really look forward to in his airlines? Oh yes, the Kingfisher ladies do smile pretty, but as Cat Stevens puts it, “Girl, it’s hard to get by just upon a smile.” Seriously Mallya, where do you think you are going?!

Read more.....

Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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We’re Saved!

Assange’s Arrest Notwithstanding, If this is the Worst WikiLeaks has Against the United States, The World is Saved!

Post Assange’s arrest on December 7, 2010, in UK on suspected rape and molestation charges brought up by two Swedish women, if one were to read released copies of the women’s original police statements, it would be hard to decipher the reasons for which Assange has been arrested – or even charged. The women’s transcripts document not only that both the women consented in full knowledge to having physical relations (on different dates, of course) with Assange, but also that both the women had initially gone together to the police station to simply force Assange (who apparently could not be contacted otherwise by these women) to take a medical test for sexually transmitted diseases – as at least one of them believed that the condom Assange had used during the physical session with her had broken down. And why blame Assange? Apparently, he knew about the alleged breakage during the act and refused to stop despite being told to do so – and this is evidently an offence under Swedish law.

Should that be considered an immediately arrestable crime? Well, the Swedes and Interpol (the International Criminal Police Organization) think so. It’s more amusing to imagine that the Interpol, which seems to have fallen over itself in arresting Assange, hasn’t acted in similar haste in other arrest warrant cases, a notable one being of Roman Polanski, who has literally been ignored and is moving scot free in France for years despite having already been convicted in US courts on rape charges involving a 13 year old girl, and despite having had the so-called red alert notices issued against him by Interpol time and again. And the most hilarious part in all this is that Interpol’s international headquarters is right there bang in the middle of France, in Lyon.

The answer to this is that while the French government protects Polanski despite his frivolous behaviour, the UK government sees the Assange arrest as an opportunity to bend its back to satisfy the Americans.

Having said that, the fact is that whatever has been churned up by WikiLeaks till date against the US establishment actually works to the benefit of the Americans and in fact does their image more good than harm. While the world used to imagine a deep, sinister cabal of US diplomats conspiring and conniving to assassinate high-profile leaders, the 2,50,000 US diplomatic cables released by WikiLeaks thankfully reveal none such matter – and whatever negative has been revealed, was already in the know of the global media.

Read more.....

Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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Sustainable Capitalism is the food

CSR is Passe , Sustainability is in. And B-Schools alike are Waking Up To This Fact. B&E’s Amir Moin writes on why for The Moment, Sustainable Capitalism is the food for thought For Sustaining Capitalism

B-schools today stand at a juncture where they have the historic opportunity of giving the gift of ‘sustainable capitalism’ to the world. It will be a system that will not just ensure profit maximisation but will also make people (the society as a whole) better-off. And there are steps being taken in this direction. Starting the new MBA batch of 2011-13, students at the IIMs will be solving case studies discussing Maoists rebellion and the displacement caused by large industrial projects. Students would also visit villages in remote areas, for the purpose of making this an experiential exercise and help solve issues of the villagers. In fact, The Indian Institute of Planning and Management (IIPM) has been in this race, teaching concepts of sustainable development, ever since its inception in 1973. Even today, all students enrolling for any of the institute’s post-graduate and under-graduate programmes are taught concepts such as ‘Survival of the weakest’, ‘Trickle-up effect’ and ‘Happy Capitalism’. In an exclusive conversation with B&E, Dr. Ranajoy Bhattacharyya, Professor of Environmental Economics & Intl. Trade, The Indian Institute of Foreign Trade (IIFT), expresses his concern on the lack of such an initiative. “Sustainable capitalism is a rare concept where human welfare and profitability are very closely related. This is separate from CSR. In our B-schools, the issue of CSR has been largely taken care of. But, it is in the field of environment management where there is a scope for a lot more to be done. Embedding sustainable issues and policies in corporate strategies is not necessarily a CSR issue; it makes a lot of business sense as well.”

This very year, CEOs of 29 global corporations, including the likes of Accenture, Infosys and Boeing collectively produced a report titled Vision 2050 on behalf of the World Business Council for Sustainable Development. The report lays out a pathway leading to a global population of some 9 billion people living well within the resource limits of the planet by 2050. The deep-rooted significance of the vision fostered by these CEOs may appear promises on paper, but it is a start. According to a survey of global CEOs commissioned by Accenture in 2010 for the 10th anniversary of the UN Global Compact held in New York at the end of June, while 93% CEOs voted for the fact that “Sustainability issues are critical for the future success of their business”, an overwhelming 96% promised that “Sustainability issues will be fully integrated into the operations and corporate policies of their respective companies”. But the warning here is that the performance gap (what is needed and how much is being implemented) in dealing with sustainability issues has only increased over time – from 27% in 2007 (survey by McKinsey in 2007) to 32% in 2010 (survey by Accenture in 2010). This therefore calls for b-schools to make the much needed change in curriculum to include the topic of Creative Capitalism, as Dr. Mukesh Kumar, COO, Vedanta Aluminium says, “A business cannot prosper unless it realises the presence and contribution of the society. It is now an imperative for B-schools to imbibe sustainability aspects in the course content. In times to come the demand for inclusive growth will become even more pressing” says Kumar.

Read more......

Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
 

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links

IIPM : The B-School with a Human Face

“We are moving to electronic platform funding”

Manas Kumar Nag, CGM-Small and Medium Enterprises, State Bank of India

State Bank of India (SBI), being the largest lender in India, has the benefit of a wide and deep presence in the Indian market. This also reflects in its performance with respect to extending credit towards MSMEs over the years. SBI has in fact emerged as one of the biggest contributors to meeting their financial needs in a profitable way. Manas Kumar Nag, CGM-SME, SBI talks to Bhuvnesh Talwar and shares the dynamics of the company’s SME business in further detail:

B&E: What is the eligibility criteria that you have defined for SMEs to avail loans with SBI?
Manas Nag (MN): MSMEs comprise of manufacturing, trade and services organizations. We have various customised schemes/products for different groups of borrowers. Therefore, eligibility would be as per the scheme. However, broadly speaking, we apply the Know Your Customer (KYC) concept, which includes identifying whether the borrower falls within the definition of micro, small or medium category and assessing the business activity and the borrower credentials to see whether the business can generate sufficient income. We have presently an internal system of rating, which is a prerequisite for sanctioning loans above Rs.25 lakhs. We have certain hurdle rates below which we do not sanction loans.

B&E: What are the major loan/credit products/schemes that you have launched for SMEs, in consideration of their diverse needs?
MN: We have several customised schemes and products and also have tie-ups with industry majors for funding vehicles or construction equipment or healthcare products. In addition, we also have schemes like Doctor Plus/School Plus, which are specifically tailor-made for such groups of borrowers.

B&E: The default rates for these products are generally a cause for concern. What has been your experience?
MN: Default rates are very low in certain schemes and in others, they are higher. For example, we have found that our doctor plus scheme has a much lower default rate as compared to our transport plus scheme. The nature of activity, choice of borrowers and the area of operation are the factors that determine the rate of default.

Read more.....

Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
 

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links

IIPM : The B-School with a Human Face

US: CHIEF OF STAFF

Agreed that he took charge at a time when the economy was struggling and that he was faced with an ambitious agenda (that of pushing through key reforms as promised by Obama in his Presidential campaigns which emphasised on Hope and Change). The hard-charging, high octane, arm twister Rahm, an enforcer who had a reputation of getting things done, was entrusted with the job of the White House’s Chief of Staff for steamrolling the change Obama planned. And Rahm – or Rahmbo, as he started getting nomenclatured came to be better known as being a foul-mouthed showman and backroom infighter, who managed, mauled and massacred dissent by standing on tables and screaming; of late even being viewed by many party activists as an instigator of a feud that was dividing the party.

Things went awry in August 2009, when Rahm, in one of his weekly strategy session featuring Liberal groups and other aides (who were planning to air ads attacking conservative Democrats who were balking at Obama’s healthcare overhaul), was back to what he was best known for. He responded to the criticisms by calling the liberal activists as “F***ing retarded.” Although that particular instance was not the sole reason, that presumably was the tipping point, where members got push converted to shove and demanded a port of departure call on Rahm’s war-carrier. David Weigel, Political commentator at Slate, based in Chicago, had this to say to B&E, “After nearly two years of Rahm Emanuel, liberals are pretty much confident that he was a paper tiger, a drudge who never missed an opportunity to undermine the progressive agenda and a man whose alleged formidability never rendered to big, substantive triumphs over Republicans.”

My favourite vaudeville performer Will Rogers once said, “There are two theories to arguin’ with a woman. Neither one works.” You could say that while arguing with Rahm too, where thanks purely to Rahm’s whimsical and fanciful style of debating and arguing, the President had a roller-coaster ride in the White House in the last 20 months. Be it Rahm’s crossing swords with Nancy Pelosi (speaker of the House of Representatives), or his failure to press home the President’s political message in the way Obama wished, or his handling of the economy and Wall Street regulation, Rahm’s pugilistic approach was solely blamed by commentators for delivering defeat. The President needed a Chief of Staff who had the wisdom to help him chart out a bold and progressive path. Someone who could successfully play the role of the President’s gatekeeper, like what James Baker did for Ronald Reagan. Rahm (who also doubled up as the President’s top political adviser and legislative strategist) at least did the gatekeeper part pretty well. But given that the mid-term elections in November would be a bloodbath for Democrats (in all probability, the elections could transfer the control of the House and even the Senate from Democrats to the Republicans), Rahm’s exit was strategically planned to minimise losses. Simply put, this is the return of favour that has been meted out to Rahm for the mistake he committed of pushing Obama too far to the middle.

Read more.....

Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
 

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links

IIPM : The B-School with a Human Face

Lehman is history...and future too

On the 2nd anniversary of the Lehman Brothers debacle, what is evident is the fact that economies have learnt very little from history. B&E does a quick recap of the occurrence, the domino effect and the current global economic situation By Asif Ahmed

September 15, 2008. Henry Paulson, the then Secretary of Treasury, United States, had just been informed of the impending Lehman collapse, when he excused himself from his colleagues to make a most important call. That call went not to the President, but to his wife, Wendy Judge, to whom Paulson said in a completely mellowed down voice, in contrast to his imposing 6 ft 4 inches physique, “I am afraid.” Paulson later termed the day as the most ‘horrific’ and ‘saddest’ day of his life.

In the absence of an acquirer and US federal guarantee, Paulson announced that US Treasury couldn’t locate a suitable borrower for Lehman Brothers, thereby purging billions in dollars and putting thousands of employees at risk. What he didn’t know then was how many billions were going to be affected by this collapse.

A month later in October 2008, in response to the subprime mortgage crisis, The Emergency Economic Stabilisation Act of 2008 was passed which authorised United States Secretary of the Treasury to spend up to $700 billion to purchase distressed assets, especially mortgage-backed securities, and make capital injections into banks. A year-and-a-half later, the Euro zone too had to adopt a similar bailout, called the European Stabilisation Mechanism, triggered by sovereign crises.

So, a few went under Chapter 11 bankruptcy reorganisation, a few more under Chapter 7 liquidation, and the topography of US financial system changed forever. On the second death anniversary of Lehman Brothers – and hundreds of other banks, which died in the hope of receiving a few million dollars of that $700 billion – the question that needs to be asked: Is the financial world a better place to live in, now? How much ground have we covered in terms of financial regulation so as to avoid future shocks?

2008 BC and 2008 AD
If one were to define the timeline of the financial world, the best way to line it up would be 2008 Before Crisis and 2008 After Destruction. The advanced economies were the first one to react and plug the loopholes that left big holes in the pockets and balance sheet of banks and central banks. Paul Volcker, former Chairman, Federal Reserve, who was hired to figure out a solution for the 21st century problem, had a simple military plan – he asked banks to curtail proprietary trading, private equity and other ‘risky’ investments that banks make with their own capital. On a more global platform, multi-lateral financial institution like the International Monetary Fund (IMF), Financial Stability Board (FSB) and Bank for International Settlements (BIS) worked in tandem to foster a more healthy financial system, the most recent of which is recommendations of Basel Committee of Banking Supervision (BSBS) and FSB to hold more capital. The BCBS has asked lenders to have common equity equal to at least 7% of assets, weighted according to their risk, including a 2.5% buffer to withstand future stress. Banks will have less than five years to comply with the minimum ratios – 4.5% common equity and 6% Tier 1 until 2019, to meet the buffer requirements. Banks are currently required to have common equity equal to 2% of total assets and 4% Tier 1 capital.

Read more.....

Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links

Family democracy, Lanka style

Rajapakse is turning the Lankan constitution into a useless shred of paper

Sri Lankan President Mahinda Rajapakse brought in a landmark change in the country’s constitution on September 08, 2010 by scrapping the two term limit rule for serving presidents in the midst of both protests and cheering across the country. Consequently, Rajapakse, who is serving his second term as president, can stand for another term in the next voting to be held in 2016!

Apart from this, sweeping powers were handed over to him as a result of this amendment, by which previously autonomous institutes have been brought under his control. He will now directly appoint the main officials in judiciary, election commission, human rights commission and the central bank. Ending all controversies spurred up by the opposition, who stressed for the need of referendum to change the constitution, the Supreme Court ruled that such requirement is unnecessary. This has paved the way to end all possible legal roadblocks to Rajapakse.

Read more......

Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links

SUSTAINABILITY IS OUR KEY TO SUCCESS

Rana Som, CMD, NMDC, talks to deepak ranjan patra about what makes NMDC the most successful mining company in the country and what are its future plans...

NMDC has been amongst India’s top 15 most profitable companies for quite sometime now. What is the recipe for your success?
Sustainability is the key word for us. NMDC started as an one–product, one–customer company but has successfully diversified into multi–product, multi–customer company. We ensure that the price of our major product namely, iron ore, is not overpriced. This pricing mechanism helps us in increasing our customer base and thus the bottom-line of the company.

You had proposed a 3-million tonne Greenfield steel plant in Chhattisgarh. How has been the progress? How valuable is it for NMDC, considering the fact that two of your critical mines, Bacheli and Bailadila are close to the proposed site?
The proposed 3 MTPA integrated steel plant in Chhattisgarh is in an advanced stage. The company has already completed the process of land acquisition. The work has been divided into various packages and the awarding of various packages would start by October this year. After that it will take around 40 months for products to start rolling out.

Do you have any other plan as part of your forward integration strategy?
We also plan to have a steel plant in Karnataka, but it will be a JV with another organisation. In addition, we are trying to put up a slime-based pellet plant (a new iron making process utilising low grade fines is in the offing with Japanese collaboration) at Donimalai in Karnataka.

NMDC was looking for foreign partners for the Karnataka plant. Any development on that front?
Regarding foreign partners for the proposed plant in Karnataka, we are in the process of negotiations and things are developing at an appreciable pace.

Any other global plans...
Yes, we are actively pursuing acquisition of properties either on a standalone basis or in JV for securitising power (Coal, both metallurgical and thermal), iron ore and manganese in regions like South America, Africa, Australia, Russia et al.

Read more.....

Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links

ENTREPRENEURSHIP: CRITICAL FOR GROWTH

John Danner, Senior Fellow, Lester Center for Entrepreneurship, Haas School of Business, UC Berkeley

ENTREPRENEURSHIP IS CRITICAL FOR FUTURE “POWER 100S”. BUT FOR THAT, MANAGERS NEED TO THINK LIKE ENTREPRENEURS & B-SCHOOLS NEED TO NURTURE CREATIVITY

It’s not big corporations that are the lifeblood and future of most modern societies. It’s the entrepreneurial venture that most often drives real innovation and growth, whether in jobs, technologies or economic competitiveness. Our current business education needs to produce individuals who will create tomorrow’s jobs and opportunities, not just manage today’s established businesses.

Perhaps, the biggest challenge mature businesses face in the present scenario is how to integrate and optimise their own existing operations (the execution necessity) while simultaneously encouraging creativity in new products, processes and services bold enough to withstand the onslaught of new market entrants (the innovation imperative). Too often, managers cling to the familiar at the expense of the novel, and watch impotently as insurgent entrepreneurs take over markets they once dominated. Future company executives need to be educated to better guard their defensive perimeters as well as accelerate growth offensively; in short, to think and act more like the entrepreneurs their companies once were. After all, most big companies didn’t begin BIG.

This is where entrepreneurship education takes centre stage: helping impatient dreamers convert their business visions into successful enterprises, and preparing more cautious students to strengthen their own managerial repertoire as they join major companies. Indeed, it is the conflict (and occasional collaboration) between these two groups that animates, distinguishes and even inspires market-based societies.

Entrepreneurs – whether they want to get rich, change the world, or both – initially need to understand how to identify emerging opportunities to serve customers, assess and manage the risks of designing and building new solutions and business models, assemble resources based on future prospects of their vision, while remaining flexible enough to adapt to surprises in the marketplace. Yet, they need to be fluent enough with the techniques and systems big businesses use, so they can adapt to the rigours of growth.

Read more.....

Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links