Excerpt from an insightful speech by D Shivakumar, Chairman & CEO – India Region, PepsiCo India Holdings Pvt Ltd at AIMA’s 42nd National Management Convention held on 30th September – 1st October 2015 at Hotel Taj Palace, New Delhi. The theme for this session was “Disruptive Innovation: Winning By Changing The Rules”.
“Good afternoon ladies and gentlemen. It’s always a pleasure to come for an AIMA National Management Convention. My experience of disruptive innovation is from my own career, working in Hindustan lever when we tried to make accessible and affordable categories like shampoo, face cream, detergent, baby care products etc, for the bottom of the pyramid. Then in Nokia, we made technology which was completely new to the world and accessible in a country like India, we went from something like 80 million subscribers to 900 million subscribers. That was the fundamental shift and now on the new journey of health and wellness platform. So what is disruptive innovation? What examples have we seen over the last decade of disruptive innovation and what we’ll see in the future?
D Shivakumar, Chairman & CEO – PepsiCo India addressing AIMA’s 42nd NMC
Disruptive Innovation is about creating new value! You can create new value through new price point, new quality point, a time dimension, so fundamentally creating new value in any market is a disruptive innovation. You create new market itself. Mobile phones created a new market; tablets are creating a new market, a market which did not exist before. Suddenly you bring something which is a new to the market. Most of the disruptive innovation is led by technology that’s what we have seen and when new entrants come into the market, they do not have old cost. The old costs of legacy players are completely disrupted by these new people with new business models. We have seen this in steel and every other industry. New players tend to have cost structure which is significantly lower and hence their business models are different. Then in the technology world, we see the concept of freemium, everything goes free but they make money somewhere else. So what do you do? How do you compete with something which is free? That is the disruptive innovation.
The 42nd National Management Convention of AIMA was held in New Delhi from 30th September – 1st October 2015 at Hotel Taj Palace, New Delhi. The theme of the 42nd NMC was “Making it Happen: Leadership in Times of High Expectations”, and speakers from different spheres of life shared their views with participants through interactive sessions. KPMG in India was the Knowledge Partner for the Convention.
Below is an excerpt from the speech of Mr Kris Srikkanth, Former Captain of the Indian Cricket team and Former Chairman of the Selection Committee on the theme “Playing It Straight: Keeping Cricket Clean”. Kris Srikkanth’s Speech in AIMA’s NMC 2015
Kris Srikkanth at AIMA’s 42nd NMC
First of all I would like to thank Shiv (D Shivakumar, CEO, Pepsico India) for inviting me over for this function to come and speak at the Aima’s 42nd National management convention. In life, I played cricket and I played it for the passion. In my younger days, I wanted to be an engineer, I mean as usual coming from a typical middle-income family from Chennai the focus was on studies and I never wanted to be the cricketer but then it’s the God’s grace that my passion at the end of the day became my profession, cricket is still my passion.
Mr. T V Narendran, Managing Director, Tata Steel India,South East Asia
Mr. T V Narendran, Managing Director, Tata Steel India, South East Asia speaking at AIMA’s 42nd National Management Convention on 30th Septemeber 2015
The theme of this conference is about making it happen and I think that’s very important. And when I looked at this theme, I was remembering something I heard a few months back from somebody, I don’t remember the name of the speaker but, he said something which stuck in mind and he said – ‘Leadership is about dreams and details’ and I think that’s a very important and crisp way of defining what leadership is about. Because he said ‘you should have dreams otherwise you can’t inspire the people who follow you to follow you and you should have the ability to get into the details because otherwise you can’t make it happen. And if you only have the details and not the dreams then again you are probably not a leader’. So I think it’s important to have this balance between dreams and the details and making it happen is about bridging that balance. So when you look at the Make in India initiative and I think as someone in the manufacturing industry it’s something really exciting for us because after a long time we are all talking of ‘making India’ and we have a government who is making a big splash about it and I think we are really delighted about that because one thing is clear – there is no economy in the world which has made this transition from underdeveloped to developed without having a strong manufacturing sector and even today most developed countries have a bigger share of their manufacturing in their pie than India has.
“Thank you so much for having me here. It’s an honor to be here among such distinguished panelists and an audience like this. I have been in technology for many decades now. I am very passionate about it and I think that it’s changing the way the world works. And I think fundamentally between the internet and social media that’s happening because there is some key ingredient that makes for economic success. Forrester calls this TERA – Trust, Efficiency, Relevance, and Access. Trust is about just being able to tap into the wisdom of the crowd so that you can talk to experts and layman and make an informed decision because you have a lot of information at your fingertips so there is a trust built into that so you are not having a biased opinion. Efficiency comes from just being able to search that and find the information very quickly. Relevance is about just finding the right information and increasingly as platforms are no more about you can actually tailor that content using bunch of fantastic apps come out around that. And then access is obviously about reach.
Below is an excerpt from the speech of Mr. Rajeev Bajaj, Managing Director, Bajaj Auto Ltd on the theme ‘Building World Class Indian Brand’ at AIMA’s National Leadership Conclave.
Rajiv Bajaj at AIMA’s NLC
“I would in the context of today’s discussion tell you a little story about my own self. This is about when I was in college in Pune. I passed out in 1988 and I must tell you I was the most popular student in college and let me tell you the reason why because in 1988 if you wanted to buy a scooter, you had to wait for one and half year. So every professor and student was my friend and whenever they wanted a pair of wheels they had to come to me and make a request. That was the glorious period of “Hamara Bajaj”. I joined Bajaj in 1990 and the financial year 2000 was thankfully the first and last year when the company didn’t make any money making two wheelers. That is how dramatically my world changed from 1990 to the year 2000.The scooter went from having a waiting period to being in a situation where nobody wanted to buy it anymore.
Excerpt from an insightful speech by Vanitha Narayanan, Managing Director, IBM India on “Making Indian Cities Global Centers of Excellence” at AIMA’s National Leadership Conclave 2015 held on 29th & 30th April 2015 at Hotel Le Meridien, New Delhi.
Vanitha Narayanan, Managing Director, IBM India addressing AIMA’s NLC 2015
“I feel honored and privileged to be on the same panel with Minister Naidu on a topic that has been close to my company’s beliefs and heart for a very long time. We coined the phrase smarter planet almost a decade ago and the smarter cities were a subset of the smarter planet and we didn’t at that point say it was going to be a smart planet, it was going to be a journey, it was going to be a continuous journey because a big part of a smarter planet or a smarter city is a sustainable model. A sustainable model that is ecological, financial, based on physical resources that can rejuvenate and also the human model. So we have talked about it a lot, we have heard about it a lot and I think the need for having a smart or smarter infrastructure is a given.
In the session that took place at AIMA Young Leaders Retreat, D Shivakumar threw some light over the subject of managing self, team and business. The session started with one question directed on topic of trying to compare everything with money. Why people come to work is the first question leader should ask. People don’t come for money. Number one reason is does this company have meaning in what it does. So first Thing Company should start talking is about its focus. Why do we exist? Whom do we serve? What do we do? First is purpose. Second reason, believe it or not, is good colleagues. When people come from office and say wow I have good colleagues that would be a good culture, that’s why they come to work. Lot of people think that they would throw money and get good culture, no, that’s not the case. There’s an inverse relation between company with high salary and culture. Banks are the best example. Banks are cut-throat companies, because individual talent matters. And the third is, Progress. Whatever the way it is, in the evening they want to see improvement. They want their CV improved in the end. Now I will tell you the scary part. The current generation will not have the jobs till they are 40. Either their parents will be responsible or they will be so unskilled that nobody will pick them up. Unfortunately India doesn’t have the social security system. Your salary is the only route your family going and builds assets. So my submission to all of you is to tell them to think of career as a marathon, it’s a long time game. Don’t keep jumping for the next 2000 bucks. We are measuring ourselves on the assets and money earned. If you are good, money will follow you. If you have money it doesn’t mean you are good. Take this message to your teams, real value of money you make is after the age of 40. Funny way enough, all the guys are changing jobs, till 40. 40 to 50 is the prime time. You make 200-300% of your savings. Till 40, you are scraping through.
In answering one question about innovation in today’s world, he said, when we think of innovation, we think of adding something new to the world. That’s not necessary. Innovation can be in product, innovation can be in service, innovation can be in business model. Innovation can be in the way you do things. That’s what it is about. And a disciplined way gets you far more results than just brain storming and shooting from rear. There are two components of innovation. Everybody is seduced by the idea, but culture is equally important. Discipline, energy and focus are the pillars for a successful pitch for a leader. If you don’t have these things, you have to be absolute genius to be successful.
AIMA conducted its AIMA Young Leaders Retreat with the theme “Leading in the New Order – Modelling Global Leaders” achieved its objective to create a vision for today’s young managers, who are poised to become tomorrow’s leaders. In his session about effect leadership communication, Roshan Abbas gave an example of Alexander, The Great. It is said that right before the battle Alexander was walking through his troops and he sensed that something was not right. People were seemed almost stuck as like saying what we will do, will we be able to do. So he gathered all his troops together and said I will give you a mantra and this mantra will change your life. He walked up and whispered into the first person in their entire troop that tomorrow morning you have to remember this and said something, and then that passed on to others one by one in that manner. And suddenly everyone was wondering what is going on, what Alexander has told this guy that will make them win the battle. He said to kill the enemy leader. And in the morning all the soldiers started moving with a single aim to kill him and he got scared and fled away. That’s how the battle was won by Alexander. So one simple message communicated by the leaders of the thousands that made him leader of the millions because he was just able to do it at the right time, to give them a one compelling vision and make sure that they would able to deliver on it. I hope you could do that with your lives as well.
Question was raised authenticity is the key right now. Whatever you say quickly gets up in social media. And whatever you said is not authentic, lies get caught very easily in this era. Acknowledgement is a must if someone comes up for e.g. say this thing of yours didn’t work, you must acknowledge it. So through communication, building an authentic type of leadership is important. Other factor which is important is that you have to discover the digital native in you, you have to be on communication platforms or where else your leadership leads to? You really need to partially immerse yourself in the digital universe. Authenticity and Understanding the medium is absolutely critical.
In this world with the data smog, he added, information that is well presented and well managed is a style anybody should carry. There is so much data out there but presenting your data in concise is one important aspect. To craft messages which can pass on easily follows it. Like in those days what Alexander did, he crafted a message which passed on easily and gone across the people. Rest of it would be your own communication style. There are the two different style of communication – visuals or words. That’s our own unique style as well. So there are multiple styles, but you must find your own style.
In another session that took place at AIMA’s 41st National Management Convention, SadhguruJaggiVasudev, commonly known as Sadhguru, who is an Indian yogi, mystic, philanthropist and author of over 100 titles in 8 different languages, talked about “Importance of Managing the Interiority For One Who Needs To Manage A Company Or The World”. He founded the Isha Foundation, a non-profit organisation which offers yoga programs around the world.
The talk with Sadhguru started on the note where he laid stress on how obsessed people these days are with the economy. He added that everybody discusses economy these days. It is not some heavenly subject, it is just organising our survival process. So in trying to organise this, we are losing everything else in our life. Everybody is onto economy. World is engrossed in economy as if it is the greatest thing.
He said that always the focus should be individual human being, no mass production. Every individual is important as the other. This is why you bow down to what you consider god. Anyone thinks that this is more important than others is missing the fundamental meaning of life. Focusing on individual growth is most important. We don’t have to focus on social well-being. If all the human beings here are doing great, why you should bother about social well-being, it will naturally happen, it’s a consequence. If you nourish this human being with right things within himself, results will come. What sphere of life he will shine in is up to him and also the situations in which we exist. So the important thing is just to grow your body brain energy to the fullest potential. What you can do should always depend upon the requirement of the situation, not your fanciful idea. To create a society where individual human beings will blossom into their full potential, he needs a deeper commitment towards individual human being. Human being comes with a bottom line, not top line.
On being asked that what would be your advice on balance results with happiness and contentment? He replied that in many ways, success is most important thing in a life for a person. Every human experience comes within you, what happens in the world, will not happen 100% your way, doesn’t matter how good manager you are. It will happen to some extent your way, but will never happen 100%. But what happens within you must happen your way. If your body took instructions from you, you will keep it pleasant all the time. And if you want to be successful, your body and mind best when in pleasantness. In stress, you will not work at optimal level and a wrong message to next generation that success equals stress. He concluded the session by saying that important responsibility is that you have to send a message out to the world that success is a beautiful and wonderful thing not suffering.
In one of the sessions that took place at AIMA’s 41st National Management Convention, Sachin Pilot, Political Leader (INC) and Former Minister threw light on the matter of Corporate Governance. He represented Ajmer constituency of Rajasthan at member of Indian Parliament in the 15th Lok Sabha. He was the Minister of Corporate Affairs and currently serving as the President of Rajasthan Pradesh Congress Committee.
He commenced his session by laying down the points he would talk upon. He said that he has identified few developments that he thinks are worth noting. He stated that he would along the way try to correct some misinterpretations. This is a strong view that Indian private sector works in such unique circumstances that it lies largely outside the pale of modern global management practices and nothing is farther from the truth. There was a time when good corporate governance was an inn innovation. Founder of management theories looked up to companies that worked fairly and well with misty eyes they hoped that good business practices would be refines and spread far and wide That diffusion has been uneven to say the least and even in India there are companies that integrate good governance in their DNA long before anybody else was looking at them. Leaders sense the need for and advantages of changes before others do. They realise that these practices are not just good by themselves but provide sustained support for the bottom lines.
He added that as hehas noted earlier evolving global standards are in fact driving this change. There are areas where we can learn from global corporate meltdowns and make sure that we don’t go down that path. There are those who are sceptical about empowering the minority shareholders. Many managers treat them as irritants that have to be humoured. But minority shareholders ought to be source of necessary advices. Many corporate disasters could have been avoided if these voices have been heeded to. If the board structures their interactions with minority shareholders, their inputs can be incorporated by formulating strategies and making mid-course corrections.
On the topic of women in corporate sector, he said that he has made many friends who are women and asked to become members of the board but awfully there have been criticism that there are only daughters and grand-daughters who have beenaccommodated in the board but he thinks that this will change because the laws have been enacted. There is a universe of talented woman who perhaps have not been given due recognition when the boards are being formed.
Further he talked on need of reforms required in the field of corporate social responsibility.He said that he feels that the communities want to see a visible project work being done there on the ground. Mere cheque writing is lightning one’s conscience the easy way. Bill and Melinda Gates Foundation, Susan and Michael Dell foundations and many others have been identified with particular interventions that are benefiting millions across the world. We can and should evolve our own methods of CSR that are practiced elsewhere but we certainly need to give CSR activities a makeover since profit making is often conflicted with profiteering in the popular imagination. Whatever approach companies approach, it should go beyond just talking and cheque-writing.
He conclude with the statement what we need to tell the world Is that we are here to do the business. We are one country, we are 1.2 billion people and someone from outside should not look at us for all the negativity. Even if there are few black sheep, it doesn’t mean the entire government is going to be corrupt. It is not about winning or losing, it is about how much economical potential are you unlocking in your time. So winning and losing is part of the democracy but we must stay true to the cause and stay together. This country deserves better and we can all work towards doing that together.