Day: August 14, 2013

Today seems like a particularly appropriate day to review Ravi Venkatesan’s recent book “Conquering the Chaos”.  It has been sixty six years since we got our independence. Yet when most global companies look at India, all that they see is the chaos, the crumbling political system, the corruption, the poor infrastructure and the massive inequity that is apparent everywhere. The term “demographic dividend” will have no meaning unless the freshly qualified can be globally employable.When we look at these factors together the chaos tends to scare off the best of us. This book attempts to coax business leaders to stop letting the chaos overwhelm them. When companies falter they take tentative steps that come in the way of grand ambitions.There is actually not one India. There are many Indias and hence many markets. When global organizations enter the market they often make the mistake of bringing with them a box of templates created in the headquarters and one that perhaps has succeeded across the world. It is natural for them to imagine that if something has worked in one country, it should as well work in India. It is that mindset that global organizations have to question.For universal coverage, in India alone, Facebook has to make its service usable on about 4,000 types of phones, with numerous variations. Depending on the phone being used, Facebook creates eight versions of the user experience given the same content. Growth actually gets driven by local innovations.The biggest lesson that Ravi’s book highlights is that global organizations need to be in India for the long run. The country managers can understand nuances of this market, the customer and the distribution system to be able to drive revenue and profitability. Start by aiming the product at the high end customers who tend to be similar to the ones in the developed world. This strategy is good to get a toehold in India, but the real market lies at the middle and base of the pyramid. Ravi Venkatesan should know this given his role as Chairman of Microsoft in India. He has had a ringside view of what all this means.http://www.youtube.com/watch?v=iVlsvaJoLvQAmong the other useful ideas is the section on how to make the joint ventures work in India. The book shares lessons from the JVs that have worked well. One thing the book does not do is to white was all those elements that make Indians squirm – corruption, weak political leadership, and a poor educational system.While the book highlights the importance of building talent, I thought Ravi could have highlighted some studies that explain how the performance of those companies that invest in leadership development at all levels creates a better return on investment than those who simply buy talent. This is the question that CEOs raise most often and Ravi could have weighed in on this one. Like the rest of the market, educational institutions in India range from a few good institutions to the vast majority which operates with inadequate resources, outdated curriculum and usually with the majority of faculty who are not adequately trained. The role of the employer is only going to increase. Companies like Hindustan Unilever have invested in developing leaders as a long term strategy and that has paid them rich dividends. To compete in a global world, our organizations need be more diverse. Innovation needs diversity as an enabler. Diversity not just in terms of gender but also nationalities and having people with different educational and social backgrounds who can bring the kind of insights and innovation homogenous groups can never achieve.Just as the global firms fumble when they try to work in a chaotic market with the mindset developed in the relatively orderly developed markets, Indians fumble when they have to work in organizations that are used to a more structured environment. That is why perhaps the Indian partners in JVs companies do not understand process. They are happy if the task gets done. Once the task is over, they miss taking the time to document the process – that causes delay in execution in future.Indian companies need to improve their capabilities in design, aesthetics and insightful marketing. As Prof Nirmalya Kumar says in his recent book “Brand Breakout – How Emerging Market Brands Will Go Global”  “Branding is not only about differentiating products; it is about striking an emotional chord with consumers. It is about cultivating identity, attachment, and trust to inspire customer loyalty.” We need to go beyond competing on labor arbitrage and move to competing on Innovation and design. The Jugaad mentality that Indians are so famous for is both a blessing and a curse.Conquering the Chaos is a great read for leaders who operate in the Indian market. It is a road map that can be used to navigate this territory. But then anyone who has used maps in India knows that they get outdated quickly since rain, processions, road repair etc can make the main route unusable. The locals remain unperturbed and simply find another option. So Ravi will have to release the new edition of this book soon.————-Join me on twitter @AbhijitBhaduri