Focus and Strategy

From visits to various organisations, we have observed that many organisations are like alcoholics..... Alcoholics find it difficult to leave their drinking habits. Similarly, organisations too cannot leave their habits of clinging to operational silos. Daily urgencies and crisis are expected, attended and promoted than the important activities of business. Business connection is lost in many the organisations.  Operations are meant to drive business, but operations, in course of time, engulfs business and the very purpose of business is hijacked. We bring this anomaly to the notice of the key players of business. Even being aware of this predicament , the people in the organisation cannot get out of their habit of fighting daily urgencies and crisis.

Many say we need to form business strategy, but there is no time. they often say ... Let us finish this project and then we shall sit for forming business strategy. Most business owners and key players fail to take action on strategy but keep on continuing their operational routines.

Second factor that hinder the wished growth is the lack of clarity about overall strategy We have lost count of cases in which well-intentioned project managers waste their time and energy on initiatives that senior managers felt, this is not our priority, even when the same senior persons have approved the initiatives.

Still another observation is that ,  lot of good companies waste enormous amounts o resources on too many projects that had too little focus.

Our business facilitation workshops attempts to overcome these problems by establishing shared awareness and focus of the business. 

Benefits and advantages of Chai Board

Chai Board is the tool we use in facilitating DNA crafting (strategy Development). Flip charts and the marker pens are the usual tools that we use in the facilitation process. We have observed that this simple process brings certain significant and important value to the key players who are participating in the Chai Boards (DNA sessions).  

Some of the conspicuous ones are….

It brings Focus: Because everyone is looking at one display: the flip charts, the key players do not have many different versions inside their own imaginations. Slowly shared awareness and understanding is built. This shared understanding forms the basis for future social capital needed for the business growth.

It promotes camaraderie: The participants begin to feel they are part of one team. The provocative, interactive, engaging qualities of working with flipcharts and dialoging are found to be more effective at supporting relationship building, trust, and participation than pushy PPT presentations and lectures.

It prevents fragmentation: Fragmentation suggests a condition in which the people involved see themselves as more separate than united, and in which direction and focus are scattered. It is a phenomenon that pulls apart business that is whole. We have found that fragmentation is hidden, intangible and people in the organization do not even realize that there are incompatible tacit assumptions about the business and each key person believes that his or her understanding is complete and is shared by all.  Our flip chart display is a direct support to common findings, and allows the key players to aggregate and analyze the issues on a common platform. Most of the outputs that the key players are making in understanding the dynamics of their business are from displaying on flipcharts and dialoguing on the issue. This process prevents fragmentation but enhances shared understanding. This is key to business growth, without this it is less probable.

It allows easy follow-through: Connecting everyone’s activity over time is essential to producing anything. The difference between relying on everyone’s individual perception and having a shared schedule and road map everyone buys-in is night and day. The output flipcharts allow the key players to brief themselves, remind, repeat the matters of business, support after-action reviews, and document key outputs for broadcasting to others in the organization.

Contributed by Sasikanth Prabhu

Strategy during stressful times.

Recently we had to stall our Business strategy workshops (DNA Development) in one of the reputed company which serves as vendor to an Automotive OEM. The strategy development process is stopped because the company is undergoing distress in terms of increased costs of production, cut in orders from the customers, lower productivity etc. The company was also preoccupied with negotiations with labor for a renewed contract.  All these put together may take toll on the long term strategy. ‘We need to survive first, to think for future’ that is the principle chosen by our client for the moment.  Logically this mantra seems right but has very limited value.

Impulsive reactions to problems, across the enterprise cost-cutting, failures of leadership, lack of clarity, misunderstanding of risk and ignorance of consequences, are all common strategic failings during stressful times.  Typical actions during such period as we have seen is that, all activities centre around cutting costs and raising cash (by loans, by brisk debt collection or delaying payments to creditors). Other ways are – reducing salaries, renegotiating contracts, selling assets, closing a plant, or even reorganizing the entire plant. Business owners or managers who make these decisions seem to be making a critical error. A majority of companies’ cost-cutting measures fail to deliver the savings expected. In fact, half of all cost-cutting schemes are aimed at delivering incremental savings of less than 10% of costs.

Most ‘reduce - cost’ decisions have limited effectiveness. There is genuine concern that more invasive cost-cutting decisions designed to deliver short-term benefits often harm the long-term competitiveness of the company. The key to effective cost cutting is to know the business and its outcome.  That outcome should be in line with the organizational actions we take. Even if a cost reduction attempt is considered essential to survival, simply looking for percentage cuts across the business is likely to lead to a reduction in a business’ competitiveness.   The Business owners / managers should have strategic outlook on cost savings and it should be available for dialogue.

Applying a cost-cutting mentality within existing strategies (if there is one) can deliver not only sustainable savings but also help advance strategic goals. For example, it’s often assumed that cost-cutting and customer satisfaction – a common strategic objective – are mutually exclusive. But if there is an existing supply chain strategy in place, it makes sense to identify which processes are not directly related to improved customer relationships – then look to cut costs or refocus those activities.

Though we supported our client who suspended the strategy discussions in passive way, our answer to this problem is to address strategy in simple, relevant ways that keep business owner / key players focused on the business of the company (strategy), while delivering clear courses of action to survive in turbulent times and grow at the same time.  This need for maintaining a strategic approach is critical, which means looking clearly at business in clear ways, then analyzing how long-term strategy can be maintained in a depressed situation. Business owners / key players who have a mindset to make reasoned decisions based on the solid strategy will do a better job of securing a winning future of their business, as well as their survival.

At times of economic upheaval and low availability of finance, there’s a real danger that

the strategy can take a back seat to survival. But organisations that abandon strategic thinking not only run the risk of undermining their chances of advancing their business when the economy improves, they also endanger their ability to weather the storm.

The key to ‘strategy under stresses is discipline – business discipline !

Contributed by Sasikanth prabhu

True Dialogue (Part 1 : a proposal)

In 2011 February we did a public program named “Mind your Business – Mend your Business” in Indore with support of Shri Yogesh Jain of Niche Quality Solutions. Around 15 participants from various business concerns were there and Mr. Akshayakumar Mankad , former head of operations of TATA Motors was there as an observer. The idea behind the program was to highlight that the leaders in the organizations need to be Business focused than organization / product focused and to show that Business acumen is an elusive issue. Fairly the point has been driven into the minds of the participants.



As a sequel to the program we had to visit one of the participants’ Shri Sameer Golwalekar, a multidimensional personality having interests in multitude of subjects. Our discussions wandered into many topics such as world history, Indian culture, Current business scenario, European psychology, J Krishnamurthi etc. At the end of the discussion he presented us with a book titled “On Dialogue” written by David Bohm, Professor of Theoretical physics. The specific choice of the gift was not random, it was after understanding the methodology, intention and service that we provide to the Business fraternity, that he suggested that we must go through this tome.

The book had about forty pages but each sentence was rich with meanings and insights that are unusual to find. I finished reading the book on the flight back to Kochi. The amazement was a Phycisist writing a book on tackling the social issues and an instigation of pride that we hold similar lines of thought. The book definitely enriched our Business Strategy workshops and (We both Yogeshji and me ) thank profusely Shri Sameer for this invaluable gift.

The summary and highlights of the book as I understand is provided in this series of blog. His own words are provided in most of the occasions and I have tried my best not to give my own interpretations. Wish you all an enjoyable read.

David Bohm, while researching the lives of Einstein, Heisenberg, Pauli and Bohr, made a remarkable observation. He noticed that their incredible breakthroughs took place through simple, open and honest conversations. He observed, for instance, that Einstein and his colleagues spent years freely meeting and conversing with each other. During these interactions, they exchanged and dialogued about ideas which later became the foundations of modern physics. They exchanged ideas without trying to change the other's mind and without bitter argument. They felt free to propose whatever was on their mind. They always paid attention to each other's views and established an extraordinary professional fellowship. This freedom to discuss without risk of interpersonal damage led to the breakthroughs that leaders of all sort today take for granted.

Dialogue - A proposal

For David Bohm the word "dialogue” gives an image of a river of meaning flowing around and through the participants. Any number of people can engage in Dialogue - one can even have a Dialogue with oneself - but the sort of Dialogue that Bohm is suggesting involves a group between twenty and forty people seated in a circle talking together.

According to Bohm , Dialogue is a way of exploring the roots of the many crises that face humanity today. It enables inquiry into, and understanding of, the sorts of processes that fragment and interfere with real communication between individuals, nations and even different parts of the same organization. In our modern culture people are not able to talk together about subjects that matter deeply to them. Solution to the fragmented communication, Dialogue is what Bohm proposes.

In Dialogue, a group of people can explore the individual and collective presuppositions, ideas, beliefs, and feelings that subtly control their interactions. It provides an opportunity to participate in a process that displays communication successes and failures. It can reveal the often puzzling patterns of incoherence that lead the group to avoid certain issues or, on the other hand, to insist, against all reason, on standing and defending opinions about particular issues.

Dialogue is also a way of observing, collectively, how hidden values and intentions can control our behavior, and how unnoticed cultural differences can clash without our realizing what is occurring. It can therefore be seen as an arena in which collective learning takes place and out of which a sense of increased harmony, fellowship and creativity can arise.

Because the nature of Dialogue is exploratory, its meaning and its methods continue to unfold. No firm rules can be laid down for conducting a Dialogue because its essence is learning - not as the result of consuming a body of information or doctrine imparted by an authority, nor as a means of examining or criticizing a particular theory or program, but rather as part of an unfolding process of creative participation between peers.

A Dialogue is not concerned with deliberately trying neither to alter nor change behavior or to get the participants to move toward a predetermined goal. Any such attempt would distort and obscure the processes that the Dialogue has set out to explore. Nevertheless, changes do occur because observed thought behaves differently from unobserved thought. Dialogue can thus become an opportunity for thought and feeling to play freely in a continuously of deeper or more general meaning. Any subject can be included and no content is excluded. According to Bohm Such an activity is very rare in our society.

Profit and Profitability

Many incidences we have faced in our strategy workshops, where we have to explain the difference between profit and profitability. Yogesh Jain of Niche Quality Systems Pvt Ltd, who is partnering for the DNA development service in Indore region has witnessed most of the confrontations related to profitability.

The question, what is the aim of doing business? Elicits an immediate and instinctive answer… ‘to make profits’ from most of our workshop participants.  Anything other than profit seems to be unthinkable for both business owners and managers.  This is the point where we struggle most to make the key players of the business think beyond profit.  One aspect that we push them to go beyond profit is ‘profitability’.

When we say that ‘profitability is healthier measure of business than profit’ is not welcome by most of the business owners, partially because they do not understand the difference between these two and due to the sentimental attachment they have towards the term ‘profit’.  

Why this strong sentiment?  We feel …….because everyone in the company pays attention to profits. Most of the key business teams have a revenue / budget / profit plan, each department / functional head owns an important element of that plan and progress is watched closely by them in the review meetings.  All managers work strenuously to meet these targets. Yet, even if each manager meets the budget targets, the company seems to be a lot less profitable.   

I remember sitting in a review meeting of a distribution company several years ago. The business owner of the company sat at the head of the table and looked at the four to five managers sitting on both sides of the table. Each manager, in turns began..’ here are my numbers’……. After presentation, they had discussions on implications of the numbers presented and finally all adjusted their numbers and a consensus was reached. This was the half yearly plan.   

In the following quarter the Sales manager grew the top line and met his quota. An additional sale came from new customers who ordered frequently in small amounts. The gross margin on these orders did not cover the distribution cost. Other customer ordered products that were out of stock locally and had to be couriered from other regions.

Two things were noticed in this situation. First both the Sales manager and the Logistic manager were on target; the sales manager grew revenues and the Logistics manager met his target because his budget was based on an average cost that allowed these inefficiencies with a hope on future business. Even though these managers met their numbers they failed in managing the profitability.

Second, these uncommon sales and orders could have been made much more profitable through some very simple business oriented twists, which would have benefited the customers as well as the company. These twists require only a business acumen and execution - not extra financial capital. Our strategy workshop highlights this point to a large extent.

As a discipline, we need to see Profit and Money as two different things. It is certainly possible for a firm to make a huge profit and have no money. It is equally possible that company is flush with funds but is suffering from losses.  What happens when an organization shows a profit?  There will be a line of people standing in a queue waiting for a share of profit.  Some organizations get into trouble because they don’t make profit. And others get into trouble because they make profit.

But successful businesses stand on two pillars. One: the ability to generate profit. Two: the ability to manage cash flow. Managing cash flow is very much related profitability. But this is missing in most of the companies… profitability is unseen and unmanaged!

 Contributed by Sasikanth Prabhu

Entry Barriers

When I was a MDP consultant at IBS Kochi, I had a chance to visit premises of more than 50 small, medium and large businesses. My job was to develop businesses for the intellectual capital of the faculty at IBS. My experiences during the visits to the prospective customers' premises made me feel that intellectual capital is the least wanted capital by them, but mostly needed. We found two situations in the customer’s premises: one is " business is doing well" and the other " business is not doing well". After visiting a score of prospects we found a pattern in their responses, mostly unfavourable ones.

Places where business is doing well the following behavior is found.....

 They....

·   Do not allow the new service providers to access the business leaders

·   Show ‘we-know-it-all’ attitude

·   are busy Expanding the organisation at a faster pace

·   Revenue growth and profit generation is equated with business growth

·   Give high priority to prestigious certifications and image building activities

·   Focus mostly on customers with high purchase power

·   Engage in creating entry barriers to the new comers / competitors

·   Look for business diversifications

·   Command and demand services from the vendors (supply chain)

 Places where business is not doing well the following behavior is found.....

 They....

·         engage in cost cutting measures

      ·         sell the products at thin margins

·         arrange programs to change the peoples’ behavior. The programs will be conducted by in house experts or by an outside agency that quotes the least.

·         take disconcerted marketing initiatives

·         spend more time in urgent and managerial issues

·         Search for certifications that will give them credibility in the market.

·         are hesitant to discontinue the unprofitable / failed product lines

contributed by Sasikanth Prabhu

Killing Business Innovation

Innovation happens in most organisations on daily basis, but most of it is revolving around cost reduction or pricing tactics. Very very rarely do Business Innovation happens.

Business Innovation isn’t just a strategy – it’s a mind-set founded on the belief that a win for customers and employees is a win for the company. Unfortunately, most companies are unwilling to make the transformation from being product, geography, or function centric to becoming truly Business centric. With a decade of experience with many businesses, we have found six mind-sets that block business innovation.

1. Spends without focus. Firms pour money into traditional pockets.... training, sales promotions, advertisements, product / service development, but research shows that the market refuses to give them credit for this. Business owners make all kinds of excuses for this state of affairs –“We’re in a tough industry” or “All the Street cares about is short-term results”– but customers just aren’t buying it.

2. Makes budgets an entitlement. Senior managers who negotiate for funding typically make their decisions on the basis of the prior year’s budget or the company’s general cost concerns. At the same time, department staff view the budget funds as an entitlement (we ought to get this... attitude) rather than as a investment focused on the business. The result?  Business as usual, and the same (boring / off the shelf ) customer offerings.

3. Assumes people in the field know nothing. Most firms treat departments as seperate entities /functions run by people with respective special backgrounds. A typical business owner / CEO thinks, “Our technical people are in charge of product development – they have to develop and educate the sales people about the new product. Sales persons will never understand the complexities of engineering.” This mindset almost guarantees that products and services don’t properly connect within the organisation.

4. Puts Marketing, Finance, Administration etc. in different cubicles. These distinctly different functions are more or less autonomous. They rarely communicate, except to consider cutting budgets when overall business performance lags. Such disunity ensures that no one pays attention to business of what the customer needs and wants from the company as a whole.

5. Detaches Marketing from the customers. Marketing people can’t do much for customers beyond feeding them propaganda. For eaxample when premium resort customers often lack a decent meal or even a pillow, the poor folks in Marketing can only report on customer rage.

6. Don’t rock the boat ..attitude. Harmony is given priority than doing more business. Business leaders / top management shy away from organizing their businesses around customers' needs , arguing that doing so is “too complicated” or “too disruptive” for them. But for the organic growth of the business, shaking up is needed. Only then the sustainable benefits will flow to the customers, employees, shareholders and the economy as a whole.

We are exposed this kind of mindsets in our retainer engagements (DNA Crafting) and it frequently challenges us in various forms. With a balance of approaches we have begun to grapple with the situations. But we hold on to our methodology of 'Merciless provocation" though it is interpersonally risky, yet the only known effective method. Changing mindsets emerging to be our specialisation.

contributed by Sasikanth prabhu

Mind Your Business

In the month of February 2011, we (my friend Yogesh and me) organised an evening program for the CEOs and The Business owners in Indore. The title of the program was " Mind Your Business - Mend Your business". The purpose was to connect / reconnect / reawaken the participants to their own business. We received a very good response from the market... of course with lots of effort from Yogesh. And the program went on with ardent participation with learning points and turning points.

..... but people ask me what is is connecting / reconnecting with business. My attempts to answer the question has been futile. I find it very difficult to put it across... because whatever be my explanation it has potential for argument. We are not here to argue and prove the point academically. What we are trying to transmit is not for talking too much, but to grasp it and do something about it. Some grasp our point with glitter in their eyes while some do not even agree on the relevance of the topic.

We certainly / strongly feel that there is place / scope for our efforts in this direction and also we feel that this as an essential service needed to the business owners.

The following story (adapted) might be useful in enlightening on the plight of the Businesses / SMEs. This is from a collection "The Islanders" by Idries Shah ( Sayed Idries el-Hashimi ).

The story goes.....

Due to dire conditions a tribe "Enterpee" were forced to leave their beloved homeland and find refuge in an island far off in the sea. They had excellent skill of swimming and shipbuilding that is their source of confidence. The Enterpees thought that once the conditions in their homeland improves they will go back their using their skills of swimming and ship building.

But over the years, they got adjusted to the circumstances of the new found island....and slowly the memory of their original home was dulled. The people began to question the need for learning archaic and apparently useless skills of swimming and ship building. The island was cozy and all the needs of the tribe were satisfied, though sometimes struggle was there.

There was a warning, somehow received, that the island might be destroyed in a tsunami or cyclone, before which they have to get evacuated to another land. There was a small select group of wise-men, known as 'Walas' who taught the arts of swimming and shipbuilding secretly to those who paid the required fees. Generally Enterpees did not patronized the walas, as they thought that swimming and shipbuilding has no practical use and also there are pseudo-experts who appear to be Walas.

In the dictionaries of Enterpees the Swimming is defined as ... unpleasant, mental abberation... supposedly a method of propelling the body through water without drowning. But swimming and shipbuilding is taught in the Island university as it was a required qualification for all the jobs in the island. Anybody who passes the written exam were qualified to receive the coveted certificate of Swimming.

In the island there lived a young man named Dav, who decided to learn swimming despite having the certificate of swimming from Island University. He set out in search of Instructor... but he is aware that there exists genuine as well as psuedo- teachers for swimming. The swimming teachers are known as " "

We keep on meeting To emphasise the condition underwhich

Experience with Alappuzha BDS (2009 -2010)

My association with Alappuzha BDS project of DFID – SIDBI, being implemented by Cluster Pulse began from November 2008 with a presentation to the Cluster manager Mr. Pankaj Ahir. I presented about our Business strategy workshops and the ‘Chai Board’ to the organisation. A patient listening was provided to the presentation by Mr. Pankaj and I had been asked to register Marg Atreya using a standard form with details of contact and the services offered. It seemed at first our services were not understood fully by Alappuzha MSME’s but I was kept informed about the planned activities and the schedules of the forthcoming events of Alappuzha BDS project.

In March 09’ I was given an opportunity to present our services to a group of 100 MSME’s from coir industry. The presentation time allocated to us was at the end of an award distribution session on ‘Best design award’. We presented our services. After seeing the event, we felt that Alappuzha BDs is doing quite a lot of good work for the Coir Cluster and many of the beneficiaries the Coir companies are feeling grateful about their presence. Also, we had noticed that the programs/events coordinated by them had an energizing effect on the audience.

From May 2009, our interaction with Alappuzha BDS project deepened and a program called “Management Gyaanam 09’ for the co operative societies was planned and conducted in June 2009 at ACCDS premises.

Prior to conducting the six day “Management Gyaanam 09’ we had a session with the representatives of the co op societies to understand their challenges. We were able to shortlist about twenty challenges faced by them. The most acute challenge was that they had very less business orientation, which prevented them from becoming self reliant and always dependent on the government support.

Hence, the main objective of the workshop was to give business orientation to the co-operative societies and raise their awareness about the day-to-day management aspects. The program was a challenge to us, as we had to deal with grass root people/ organizations.

On the scheduled day the honorable Secretary of ACCDS Mr. Kumaraswamy Pillai inaugurated the program. As we delivered the program, we were amazed to see the enthusiasm and the eagerness of the participants. In the first day itself business orientation was implanted in the minds of the participants and they picked up the key concepts of the business and the daily management. We also announced a ‘best participant award’ for the program. The six days went like a bullet and on every passing day we were able to see a glow of confidence in their faces. Immediately after the six day program Alappuzha BDS project organized a session to confer the ‘best participant award’. Special invitees, the participants, SIDBI officials, the Alappuzha BDS project team and of course we as BDS providers were present for this evening program. The participants were given a chance to share their experiences of the program. At least five participants shared their experience, which made us feel that we have created value at the grass root level. There is nothing greater than the feeling that we were able to add value to somebody else’s life. In the process we also learned that we can do something significant for the grass root level too. Our credo “every person can be business person’ and “every ordinary person can do extraordinarily” is strengthened.

Similarly, Alappuzha BDS project arranged a meeting with a very old coir company which has a corporate set up. We did a two-day in house workshop for their CEO’s & staff. We were able to rekindle and rejuvenate the fundamental elements of their business that gave them confidence that they can win in the market and elsewhere. Their written & verbal appreciation for our services gives multiplier effect to our confidence. We feel fulfilled that our methodologies are effective in bringing instant learning and sustainable effect. This company very soon brought into the market their branded products.

We provided our services to other organisations in the coir sector that helped them to revive their business.

The one-to-one meetings, the short service presentations, the banner promotion, field visits in BDS van, the voucher schemes, BDS training and the special programs arranged by Alappuzha BDS project creates a confidence in the minds of MSMEs and creates an opportunity for BDS providers to interact with the MSMEs openly in co ordination with trade associations which will carry on these activities in future for sustainability.

Now we are in a position to independently approach and present our innovative services to the MSMEs, state govt. & trade associations of coir cluster and also we feel that the coir companies are accepting the services by the BDS providers more openly. All the credit goes to the work of Alappuzha BDS project.

Contributed by : Sasikanth Prabhu,Consultant / Facilitator