Sunday, September 23, 2012

CEO and communication

Given the enormous range of functions that CEOs of large organizations have to fulfill through the exercise of indirect and direct influence, CEOs have to decide how to best allocate their personal time and presence. At first blush, this seems straightforward. After all, the CEO is in charge and can do whatever he or she wants. In practice, however, everyone wants the CEO's time and attention, whether it is people inside the organization or outside. Most recognize that the CEO can't possibly meet all these demands for his or her presence.


Thus, where and how the CEO chooses to be present or get personally involved is a very important signal that accents his or her priorities and interests. CEOs need to be conscious, mindful and strategic about how they use their presence. Presence is not just about how the CEO allocates time across various activities and constituencies. It is the nature and quality of involvement the CEO brings to each occasion. CEOs must use their presence to decide, and even more importantly, to amplify the indirect levers they want to shape — by communicating, clarifying , educating and reinforcing how people inside and outside relate to the organization.

Communication

To accomplish their agenda, CEOs have to communicate it relentlessly. The CEO's agenda and related message (whether it be about the goals, the strategy, the execution priorities or the organization’s values) need to be communicated and understood as broadly as possible inside and, as appropriate, outside the organization. An effective CEO uses his or her presence ubiquitously to actively communicate and shape how all constituencies think about the organization. Communication helps the CEO frame issues for others, define what's important and relevant, and more generally direct the attention of the organization.

Communication also has the power to shape the language or discursive practices in the firm. There is always a possibility the CEO's message may be not be transmitted with high fidelity — it may be distorted, amplified, revised or modified. The same message may also be heard differently depending on the perspective and biases of the listener.

Information Gathering

The other side of communication is listening and gathering information. Given the paucity of reliable information available to them and the necessity of having good information to make sound judgments , CEOs make the gathering of information, like communication, a constant personal task. They are constantly asking questions that help them get a better sense of how their business is doing. Information gathered through field visits, open forums with employees, customer visits, industry groups, outside consultants and board members — for that matter, any credible source — is prized and valued.

Bottom line is, it would be simple task to have everyone in fold when you are small; however as the size grows; one need to adopt to different gear and start adopting new ways.

Who said its easy to be a CEO?

Age No Bar!!

I was reading Ashok Sotta’s interview about being serial entrepreneur; its amazing to see the energy and dedication at that age.

He has entered the market to start it all over again!!


This begs a question; what is the correct age to be an entrepreneur?

I am thinking on this…

Sunday, September 16, 2012

Change in image: Infosys buys Lodestone

Infosys has reached a definitive agreement to acquire Zurich-based SAP implementation and management consultancy Lodestone, for about $350 million.


Lodestone, with 850 employees including 750 consultants comes with about 200 clients across manufacturing, automotive and Life Sciences verticals. Post acquisition, Infosys will have about a billion dollars coming from its SAP practice.

While it's still too early to say how the buy will play out, there are some immediately visible benefits.

1) Clients: Lodestone will bring in its more than 200 clients across sectors, including manufacturing, automotive, life sciences, chemicals, and consumer goods. Its clients like BMW, Allianz, Kimberly-Clark, Sandoz SHAPE, Warner Chilcott, Munich Re, Roche will now be with Infosys, which has a client base of 700 firms. The acquisition is also expected to boost Infosys' SAP client base.

2) Revenues: In 2011, Lodestone reported revenues of 207 million Swiss Francs (Rs 1,200 crore), up from 181 million Swiss Francs in 2010. This will increase Infosys' annual revenue and help it maintain its lead over other rivals like Cognizant and Wipro. Post-acquisition, the consulting and package implementation revenues of Infosys are expected to be more than $1 billion.

3) Geography: The deal will bolster Infosys' presence in Europe, Middle East and Africa. The acquisition will also enhance the presence of Infosys in new markets like Latin America and Asia Pacific.

4) Employees: Zurich-based Lodestone has about 850 employees, including 750 SAP consultants. The consultants will help Bangalore-based Infosys to ramp up expertise in SAP-based solutions.

5) Perception: The deal will go a long way in helping Infosys shake off its image as a conservative company hesitant to make bold acquisitions.

It looks like a great-fit acquisition; however the time will tell how it will help and how far Infosys can leverage this to generate more business.

Sunday, September 09, 2012

The Power of Perspective!

Its sad part of the world is that so many people see the worst in others. They see through their own eyes of anger, fear and limitation. We tend to see others through our own perspective and make judgements, rather than understanding the truth.


Only few human beings in this world get up every day in the morning and think how to screw someone else’s life today. Most of the mistakes people make are due to lack of awareness. So, a true leader sees the truth and analyse with other’s perspective.

I was watching an interview of Raj Thackeray in Times Now (This was in Hindi and I would have been more happy if this was in English because of the fact that both host and guest were struggling with Hindi and more ever I had a tough time in following the speed); I realised how important is thinking through other’s perspective.

Through many years I have been questioning the stand of Raj Thackeray when he says he will not allow North Indians (Read UP and Bihar) come and settle in Mumbai/Maharashtra. I always argued that what if, other states where people from Maharashtra have migrated start saying the same thing? I always felt constitution gives us right to migrate to any state and settle. I simply thought he doesn’t support anyone coming to Mumbai.

But now, I got the other perspective. What Raj argues is that he is never opposing the migration to Mumbai; in fact, he says; he never said anything against Karnataka, Gujarat, Madhya Pradesh state people who migrate to Mumbai/Maharashtra; which is true. I never heard such opposition to at least Kannada people of Pune/Mumbai; where I have some contacts. They are being treated as part of the main stream and being actively involved in business and politics.

His argument is, the people from certain states migrate and they get involved in criminal activities and that is what he is opposing and he gives statistics to prove that. He proves through crime data that more than 50% crimes are being committed by certain set of people.

No, I am not defending Raj Thackeray or supporting his party or I support his thought process. But point I am making is the different perspective people might bring in to our thought process. In this above example, my thought process changed when I heard Raj’s perspective on the subject.

Point I am making is, how many times in our life we fail to understand other perspective and end up in making a mind-set which is not the truth?

How many times we failed to understand a colleague who is trying to give a true perspective about the business he/she is running and we have tried to pull him down saying he/she is not performing?

How many times we have simply failed to understand the underlying truth because we tend to see the things in our view rather than other perspective?

Forget about, migration, Mumbai, North India migrating and the political mileage someone might be trying to gain. What I am trying bring up is a pure learning of seeing the things from other’s perspective.

Great learning ..

Sunday, September 02, 2012

Too big athlete to fail!


The biggest news of last week was Lance Armstrong’s decision not to defend himself against the latest round of allegations from US-Anti Doping Agency.


It was shocker to me and many sports fans, who idolize him. Personally I got interested in cycling after reading his two books, his survival story is motivational factor for so many cancel patients and the way in which he came back to win seven Tour titles is been an amazing story by itself.

As Lance himself says, he is ‘most tested athlete ever’; been tested around 500 times. I am not still sure or ready to believe that Lance has taken any performance enhancement drugs, or maybe I am commenting purely on emotional grounds. However the impact is much wider, stripping of all seven Tour titles, including return of $7 Million prize money, returning of 2000 Olympic bronze medal and a life time ban on participating in cycling related activities.

But Lance said, ‘There is a point in life for everything where you will feel that’s it and I have reached that point here and now I want to let it behind and focus on family and cancer foundation’.

There could be several arguments to this, one argument is; as when the situation is tight and rather than facing the testimonies of eye-witness comprising of several of his team members and fellow-participants; Lance decided to pull out. Hard to believe for me!

Armstrong accepted the sanctions as a way to limit his liabilities as any large corporation would do. Not only his image emerged intact but in pure financial terms he is benefited. A day after his statement, the donation to his foundation has increased many times and the sale of merchandise also took a new height.

All of the cyclist’s major sponsors- Nike, RadioShack, Okkley Unit, Trek Cycles and Anheuser-Busch- said they will honour their existing contracts.

Whatever the impact is, he is been a hero to many, like me; he is the one who motivates thousands of people around and constantly been source of inspirations through his ‘Livestrong’ foundation.

To his iconic status as a survivor, underdog, champion and philanthropist; he can add another distinction. He is an athlete too big to fail.