What Do Great Organizations Do… Green Vision

1. Presentation by: Pratap Verma Mob.: 0989327699 pratap.verma@rediffmail.com, pratap.verma@gmail.com Great Companies are just a moment away from commoditization. The remedy is to continuously innovate for differentiation. What Do Great Organizations Do…Green Vision

2. Road map for future great companies • Shared vision/goals & core values. • Game changing breakthrough leaders • Right Business models consisting of: • Customer centric innovation. • Customer focus. • Bench marking/ Just in time. • HR & knowledge worker issues. • Technological synergies. • Costing & accounting • Corporate responsibility • Paradigm shifts in business networking

3. Collaborating • Rob McEwen CEO Gold Corp., Canada decided to go for open ended transparency on web on finding gold from Company’s dilapidated mines. Suggestions & ideas poured. Their Implementation completely changed the scenario Gold Corp. which was down to $100 million company became a $9 billion turnover per annum company in 5 years time. • IBM & Linux (open system) – Example of Peering & transparency, self empowerment of individuals & customers by principle of self organizing.

4. Competition Insight • Coke vs Pepsi usual war like situation, new coke CEO Roberto Goizueta in 1980’s changed the game from being ahead of Pepsi by 0.1 per annum, to let Coke compete against individual’s daily liquid intake. Average individual intake of liquid per day was 14 ozs, Coke’s contribution 2 ozs. • Installed vending machines all over since then Coke has always been No.1. • Used prosumer concept by allowing customers to take own decision. Compete against situation, not against rival.

5. Role of today’s breakthrough leaders Information & data - Adhyapak Knowledge - Upadhaya Skill - Acharya Insight - Pandit Foresight - Visionary Wisdom - Guru Apply this learning & role fixation process to a business model or a situation.

6. Leaders think PVRSCCLL & SWOT P - Person (Who) V - Core Values R - Role for each person & team S - Situational Analysis C - Context derived from the situation C - Consequences of action L - Logic L - Luck SWOT:- Strengths, Weakness, Opportunities, Threats. Leaders do right things & Managers do things right. Leaders invite people to meet shared vision with commitment, passion & drive by demonstrating through their own example.

7. Contd… Leaders consider talents of individuals, teams & multiple intelligence for effectiveness of results. According to Dr. Howard Gardner, Harvard University, Professor of Psychology, the brain has following genetically wired pathways. Talents are pathways of these intelligence's. Basic intelligences are: • musical • Linguistic • Body Kinesthetic • Logical Mathematical • Spatial • Intra Personal (Emotional) • Interpersonal (Social) • Intuition

8. Rabbit & Tortoise Story • Rabbit Sleeps :- Slow & steady wins the race. • Rabbit Wins :- Rabbits wins by taking a lesson from failure. Fast & consistent is better than slow & steady. • Tortoise Carves a strategy by putting a closely disguised hurdle win-loose :- Tortoise wins by using his core competency of swimming by having a river in between to change the game. • Rabbit & Tortoise Win-Win :- Harness each other’s competency by collaboration on step 3. Other lessons: - Hard work but intelligent hard work. - When we stop competition against a rival & start competing against the situation, we perform better.

9. Vision beyond Profits • Merck: We try to remember medicine is for patient. It is not for the profits. • Tata Steel: We also make steel. Navigate shared vision through a culture based on well defined thinking habits. Like do more with less effort, 80/20 rule, innovations & ethics etc. • Shell: We are judged by how we act: our reputation is upheld by how we put into practice our core values of “honesty, integrity and respect for people”. We employ a most diverse group of people and value the benefits this brings. We respect the human rights of our employees and strive to provide them with safe working conditions, promote the development of their talents and give them channels to report concerns. • ITC: Aimed at developing a customer-focused, high-performance organisation which creates value for all its stakeholders: Core values are: - Trusteeship, Customer Focus, Respect For People, Excellence, Innovation, Nation Orientation Incorporate CSR in Vision Document

10. Game Changing – See different & be different IKEA changed the concept of furniture by making assemblies of furniture by Allen Screws & also creating home buying experience at its outlets. Now a $30 billion company.

11. Develop Break Through Teams Consider Small break through Teams of 2-8 people Example: Google - Larry page/Sergey Brin Microsoft - Bill Gates/Paul Allen HP - William Hewlett/David Packard

12. Respect for dissident’s Views Mr. Tadashi Kume & Mr. Soichiro Honda Encourage Defiance from talented but loyal & committed people who stand by the organizational values. Examples: Mr. Check House from HP on oscilloscopes who defied HP CEO William Hewlett. Mr. Tadashi Kume, Who defied Mr. Soichiro Honda – Honda CEO & later on him self became a CEO.

13. Analysis & Action on following Parameters Context: The why, who, when, where, what & how. Economics: Customer intimacy by rightly perceiving price/cost/value & fitting them rightly into an economic chain. Sharing: Intel Inside Technological Synergy: Synergy by combining technologies like Cell, TV, Audio, Print & Internet together. Learning: All great companies have their own learning institutions like Universities.

14. Marketing Idea • A Brazilian toilet company whose sale was stagnant, benefited by printing comics on toilet paper since they found out that Brazilian are found of reading comics while sitting on a toilet seat. What is quality Quality is conformance to customer’s requirements & giving value addition beyond customer’s expectation at less than perceived cost. It’s doing right things first time, every time. Embed quality into process through six sigma & TQM etc.

15. Innovation Process 360˚ Corporate Responsibility Bands Identified Disparate Change Parameters Inspiring Leadership Motivating Purpose & Values O P P O R T U N I T I E S O P P O R T U N I T I E S Courageous & Connected Culture Technology Stretching Goals Customer-Centric INNOVATION Game-Changing Other Stakeholders Consistent & Reliable Systems Choiceful Strategies Enabling Structures Unique Core Strengths

16. Benchmarking: Benchmarking results. Jack Welch says that to be a great company you should be either No. 1 or No. 2 in your business. Just in Time: Make efforts to follow the Toyota model of managing logistics & inventories.

17. Connectivity Orkut: The original owner created it to search the whereabouts of his girl friend whose name did not figure in fatality list of train accident. Google bought this site for approx one billion dollars. Connectivity breeds “Networking” & helps in doing more work in less time.

18. Infusing Dynamic Culture & Habits Star-Buck capitalized on laziness of people who did not want to make their own coffee & paid $5 per cup of readymade coffee.

19. Making non-customers as customers • Nirma’s detergent powder story, which took Hindustan Lever by surprise, CMD, Nirma, Karsan Bhai identified the need of lower middle class house wives to use powder for washing clothes, which was also used by higher income group for washing utensils. • Think customer focus, make customer a prosumer. Only job of an enterprise is to create a customer. “Peter Drucker”

20. Structure – Flexibility • Tortoise can only think about residing in a pond, whereas eagle can have an helicopter vision. So its survival rate is higher, tortoise dies once the pond water dries up & there is no food. • For flexibility, think a 4 wheel multi purpose Jeep. • Look for multi talented & multi-skilled people – Example Benjamin Franklin.

21. HR Issues - 360˚ communication at all levels People environment in great companies • Informal atmosphere • Concern for people • Large responsibilities • Meaningful roles • Equity • Ownership • Personal development • No politics • Learnability as a prime trait – It is the ability to derive generic conclusions from specific instances & apply them to new problems with multiple options & flexibility. • Pay attention to difference between – ‘I think so’, to ‘I know so’. Human needs – Abraham Maslow

22. Do not settle for good against great – Good is the enemy of great The fight today is not between products but between Business Models