Overview: PARADIGM SHIFT

TALENTSHIP – THE HARVARD APPROACH

Buddhadip Mukherjee

What is a Talent Resource?

Includes talent that organization knows and manages

All those talents potentially available and valuable had organization known about it.

A Cross Functional Comparison

Marketing Talentship

Life Time Profits Sustainable Strategic Success

Targets ROI

Mix Program & Practice

Investments Investments

Finding the Differentiator: Distinctive HR practices shape the core competencies that determine how firms compete

A core competence is a combination of complementary skills and knowledge bases embedded in a group or team that results in the ability to execute one or more critical processes to a world class standard

• Walt Disney once noted: “I only hope that we don’t lose sight of one thing – that it was all started by a mouse”. (Disney Dreamer, 1998). Walt Disney’s original core competence was cartoons and animated movies. By combining Imagineering with engineering Disney’s company reached unparalleled success with the creation of the first full length animated movie. This success led to new ideas and one of them was to open a park, a different kind of park. Disneyland uses collective imagination to bring characters to life. Walt called them “Animatronics”. (Magical Kingdoms, July 2008)

www.disneydreamer.com/walt/quotes.htm

Arie de Geus wrote in The Living Company

an economic company is like a puddle of rainwater: a collection of raindrops, gathered together in a cavity. The other type of company is organised around the purpose of perpetuating itself as an ongoing community. This type of company is like a river. It is turbulent because no drop of water remains in the same place for long. This river finally flows into the sea, but it lasts many times longer than the lifetime of the individual drops of water which comprise it.

A dabbawala sometimes spelled dabbawalla or

dabbawallah, is a person in the Indian city of Mumbai

whose job is to carry and deliver freshly made food from

home in lunch boxes to office workers. Tiffin is an old-

fashioned English word for a light lunch, and sometimes for

the box it is carried in. Dabbawalas are sometimes called

tiffin-wallas. For the efficiency of their supply chain it has

been claimed that this virtually achieves a Six Sigma

performance rating, (i.e. 99.9999% of deliveries are made

without error, he is at CMMi level 6).

Error Rate : 1 in 16 million transactions

• Six Sigma performance (99.999999)

• Technological Backup : Nil.

• Cost of service - Rs. 200/month ($ 4.00/month)

• Standard price for all (Weight, Distance, Space)

• Rs. 50 Cr. Turnover approx. • “No strike” record as each one a share holder

• Earnings - 5000 to 6000 p.m.

DABBAWALLAS IN TRAIN COMPARTMENT

APPROACH

DISCIPLINE :• No Alcohol Drinking during business hours• Wearing White Cap during business hours• Carry Identity Cards

Marketing message in the “dabba”

ORGANISATIONAL STRUCTURE

The service is uninterrupted even on the days of extreme weather, such as Mumbai's characteristic monsoons. The local dabbawalas at the receiving and the sending ends are known to the customers personally, so that there is no question of lack of trust. Also, they are well accustomed to the local areas they cater to, which allows them to access any destination with ease. Occasionally, people communicate between home and work by putting messages inside the boxes. However, this was usually before the accessibility of telecommunications

Coding

VLP : Vile Parle (Suburb in Mumbai)

9E12 : Code for Dabbawallas at Destination E : Express Towers(Bldg. Name)

12 : Floor No.

E : Code for Dabbawallas at Residential station.

3 : Code for Destination station (E.g.. Nariman Point)

THE ROYAL VISIT:

• Recently, the dabbawala’s had royal company at Churchgate station. The Prince of Wales himself had visited them when he came down to Mumbai.

• He took keen interest in their way of functioning, expressed surprise at their efficiency and was struck with awe when he was told that they didn’t employ any technology.

• The prince was presented a small memento, accompanied with a garland, a Gandhi topi and a trophy by the dabbawalas.

RICHARD BRANSON CHAIRMAN VIRGIN AIRWAYS

HR & Value Innovation

Five Dimensions strategy

Conventional Logic Value Innovation Logic

Industry Assumption Industry conditions given

Industry conditions shaped

Strategic Focus Competitive advantageAim to beat competition

Competition not benchmarkQuantum leap in value

Customers Company should retain and expand customer base through further segmentation and differences in customers’ value

Targets commonalities of what customers value

Products and Services

Industry’s traditional boundaries determine

In terms of total solution customer seeks

Value Innovation & Talentship

Creating the Emotional Intelligent Organization: Lessons from Life

“ChotuKool”

The idea to address the basic refrigeration needs of rural families in India began in 2006 at a workshop led by Professor Clayton Christensen of Harvard Business School through Innosight. The Innosight team began its work by imagining living in a home without a refrigerator. Electricity is unavailable or unreliable in many rural parts of India, where families earning under $5 per day can't afford major appliances. Could a community step up and help create a solution?

Godrej Vice President G. Sunderraman led trips around rural India, observing the daily routines of villagers. Using "jobs-to-be-done" approach, he and the Innosight team witnessed how rural consumers purchased, prepared and stored food and drinks.

It was concluded that these homes didn't need cheap refrigerators. The "job" was much more basic. People needed an affordable way to keep milk, vegetables and leftovers cool for a day or two—both at home or away. This job is urgent in a country where a third of all food is lost to spoilage, according to the United Nations Commission on Sustainable Development.

Godrej developed prototypes for feedback at "co-creation" events. In a straw poll of 600 women in the village of Osmanabad, the community voted to make the product red, the color of harmony and bliss. From this effort came the ChotuKool, or "little cool" in Hindi.

Instead of traditional compressors, ChotuKool is based on a thermoelectric chip that maintains a cool temperature on a 12-volt DC current or an external battery. The unconventional opening ensures cold air settles down in the cabinet to minimize heat loss and power consumption. The unit is highly portable, with 45 liters of volume inside a fully plastic body weighing less than 10 pounds. Priced at $69, about half of an entry level refrigerator, Chotukool creates a new product category, with a targeted value proposition that serves a new segment of customers.

The early success of ChotuKool led to Godrej being named India's most innovative company of the year by Business Standard magazine in a ceremony conducted by the nation's Prime Minister. ChotuKool was also awarded the 2012 Edison Award Gold prize for the Social Impact category.

A onetime accordion player, stilt walker, and fire-eater, Guy Laliberté is now CEO of one of Canada’s largest cultural exports, Cirque du Soleil. Founded in 1984 by a group of street performers, Cirque has staged dozens of productions seen by some 40 million people in 90 cities around the world. In 20 years, Cirque has achieved revenues that Ringling Bros. and Barnum & Bailey—the world’s leading circus—took more than a century to attain.

Cirque

Cirque’s rapid growth occurred in an unlikely setting. The circus business was (and still is) in long-term decline. Alternative forms of entertainment—sporting events, TV, and video games—were casting a growing shadow. Children, the mainstay of the circus audience, preferred PlayStations to circus acts. There was also rising sentiment, fueled by animal rights groups, against the use of animals, traditionally an integral part of the circus. On the supply side, the star performers that Ringling and the other circuses relied on to draw in the crowds could often name their own terms. As a result, the industry was hit by steadily decreasing audiences and increasing costs. What’s more, any new entrant to this business would be competing against a formidable incumbent that for most of the last century had set the industry standard

How did Cirque profitably increase revenues by a factor of 22 over the last ten years in such an unattractive environment? The tagline for one of the first Cirque productions is revealing: “We reinvent the circus.” Cirque did not make its money by competing within the confines of the existing industry or by stealing customers from Ringling and the others. Instead it created uncontested market space that made the competition irrelevant. It pulled in a whole new group of customers who were traditionally noncustomers of the industry—adults and corporate clients who had turned to theater, opera, or ballet and were, therefore, prepared to pay several times more than the price of a conventional circus ticket for an unprecedented entertainment experience.

Cardiac surgeon Dr. Devi Shetty is on a mission to build 5,000-bed "health cities" across India, encouraged by the success at his nine-year-old Narayana Hrudayalaya hospital in Bangalore.

Shetty wants to make quality health care accessible and affordable using economies of scale, or the cost advantages businesses obtain due to expansion. Shetty believes his success could lead to a new health care model not only for India but perhaps also for the world. "The first heart surgery was done over a hundred years ago but even today only 8% of the world's population can afford heart operations," Shetty notes. "In India, around 2.5 million people require heart surgeries every year but all of the country's doctors put together perform only 80,000 to 90,000 surgeries a year.... We clearly need to relook and change the way things are being done."

At his Narayana Hrudayalaya Institute of Cardiac Sciences in Bangalore, the 56-year-old Shetty is doing just that. Patients at his hospital get cardiac care at a cost lower than any other hospital in the country and at a fraction of what it would cost elsewhere in the world, a feat accomplished through what Shetty refers to as "process innovation.”.

That was how Shetty came to the conclusion that the health care industry needs more process innovation than product innovation. The industry "does not need a magic pill or the fastest scanner or a new procedure," he states, but instead requires improvements that lower the cost of medical attention and make it more widely available. Shetty's premise of economies of scale is not radical; in fact, the doctor describes his way as "the Walmart approach." What sets him apart, however, is that he has successfully adapted the method to a field as complex and costly as cardiac care. "There is no doubt that he has created a very distinct model to take cardiac care to the masses," notes Vishal Bali, chief executive officer of Fortis Hospitals, a prominent Indian healthcare group.

"As our volumes increase, we will get further economies of scale. In the next five years we want to be able to do a heart operation for US$800 from point of admission to point of discharge. We believe it is possible.“

Shetty has reason to be confident. Over the years, the Bangalore heart hospital he opened in 2001 grew to 1,000 beds; the facility has added advanced technology and doctors there perform some 30 surgeries a day -- the highest number of cardiac surgeries done by any hospital in India. Other hospitals in India, including Escorts, Apollo, Wockhardt and Fortis, perform about half that number. In addition, Shetty's staff has the capability to do a large number of different cardiac procedures. The hospital's mortality rate of around 2% and hospital-acquired infection rate of 2.8 per 1000 ICU days are comparable to the best hospitals across the world, Shetty asserts. In an article in Forbes India, the University of Michigan's C. K. Prahalad said the mortality rate in Narayana Hrudayalaya is "much lower than in New York State for similar kinds of heart disease."

Cardiac surgeries in the United States can cost up to US$50,000. In India, they typically cost around US$5,000-US$7,000. Depending on the complexities of the procedure and the length of the patient's stay at the hospital, the price tag increases. At Narayana Hrudayalaya, however, surgeries cost less than US$3,000, irrespective of the complexity of the procedure or the length of hospitalization. About 45% of Shetty's patients pay even less. Of these, about 30% are covered under a micro-insurance plan for health care called Yeshasvini that reimburses Narayana Hrudayalaya at about US$1,200 a surgery. Conceptualized by Shetty and run by an independent trust, Yeshasvini was launched in 2002 in association with the Karnataka state government.

For those who are not part of the insurance plan and can't afford the hospital's regular charges, Shetty offers concessional rates. The discounts depend on patients' financial capacity and are funded either by the hospital's charitable trust, individual donors or by the hospital itself. Almost 15% of the hospital's patients benefit from these concessions. In addition, Shetty and his team reach out to patients through a network of rural clinics and via telemedicine facilities. Patients come to the Bangalore facility from more than 50 countries. Shetty's instructions to his team are clear: No one who comes to Narayana Hrudayalaya will be denied treatment due to a lack of funds.

The managing team at Narayana Hrudayalaya follows the unique accounting practice of studying the profit and loss account on a daily basis. "By monitoring the average realization per surgery and our profitability on a daily basis, we are able to assess how much concession we can afford to give the following day without adversely impacting our profitability," states Sreenath Reddy, the hospital's chief financial officer. The hospital has been profitable from the first year.

Indeed, Shetty has already turned some standard industry practices on their heads. One of his first innovations when he set up Narayana Hrudayalaya in 2001 was in the way doctors are compensated. Typically, cardiac surgeons are paid per surgery and their costs constitute a significant proportion of a hospital's total expenses. Shetty invited his staff physicians to work for fixed salaries; he did not pay them less than what they would have normally taken home at the end of the month, but he required doctors to perform more surgeries, bringing down the cost per procedure. This approach continues to be one of the core savings areas at Narayana Hrudayalaya.

Instead of buying surgical gloves in India, for example, Narayana Hrudayalaya saves about 40% by importing them in container loads from Malaysia. The hospital has moved to digital X-ray technology, saving on the recurring cost of film. Most hospitals use their CT scanners, MRI (magnetic resonance imaging) and other machines for only eight hours a day, but Narayana Hrudayalaya uses them for 14 hours and offers these tests to the patients at lower rates in the late evenings. As volumes increase, per unit costs naturally come down.

For procedures like blood gas analysis, Shetty's team convinced the equipment

vendor that, instead of selling the machine to the hospital, he could simply park it there and make his money by selling the chemical reagents required for the test. The hospital saves on the cost of the machines while the vendor also profits. For the past six months, another vendor has parked his catheterization laboratory equipment at the hospital free of charge. The deal came together because the vendor wants to use Narayana Hrudayalaya as a referral, Shetty notes, with the idea that if he can show that his equipment can cope with the patient volumes at Narayana Hrudayalaya, it can work anywhere, he adds.

The high patient volumes help Shetty drive a hard bargain with vendors when negotiating prices for everything from basic supplies to sophisticated medical equipment.

Limobike

• Virgin Limobike has been operating since November 1995. It was set up by Richard Branson to look after the Virgin Atlantic Upper Class passengers who were fed up of sitting in traffic on their way to and from the airport. Soon people were asking us about commuting, trips to business meetings across London and a thousand other scenarios to save time. Now, while still doing the airport runs we are busy helping people move around London efficiently, safely and without stress.

• We use Yamaha FJR1300's (with ABS) which have been fitted with a rear seat back to give passengers total confidence while on the move. They have been fitted with an Autocom intercom and phone so you can talk to the rider in transit and even make and receive phone calls. The bikes are serviced and maintained to the highest degree.

Passengers

• Whether they are in a hurry, keen not to miss a flight or appointment or just need to get from A to B in a more original way they are all open minded enough to try something a bit different. They have learnt that there is another way to travel in London. They never miss appointments, they never feel the frustration of sitting in traffic jams while their flight departure time creeps ever closer and they are always confident that while they are with us they will be treated to a unique experience.

I was the last child of a small-time government servant, in a family of five brothers. My earliest memory of my father is as that of a District Employment Officer in Koraput, Orissa. It was and remains as back of beyond as you can imagine. There was no electricity; no primary school nearby and water did not flow out of a tap. As a result, I did not go to school until the age of eight; I was home-schooled. My father used to get transferred every year.

The family belongings fit into the back of a jeep - so the family moved from place to place and, without any trouble, my Mother would set up an establishment and get us going. Raised by a widow who had come as a refugee from the then East Bengal, she was a matriculate when she married my Father...

As District Employment Officer, my father was given a jeep by the government. There was no garage in the Office, so the jeep was parked in our house. My father refused to use it to commute to the office. He told us that the jeep is an expensive resource given by the government - he reiterated to us that it was not 'his jeep' but the government's jeep.

Go Kiss the World…

Insisting that he would use it only to tour the interiors, he would walk to his office on normal days. He also made sure that we never sat in the government jeep - we could sit in it only when it was stationary. That was our early childhood lesson in governance - a lesson that corporate managers learn the hard way, some never do.

The driver of the jeep was treated with respect due to any other member of my Father's office. As small children, we were taught not to call him by his name. We had to use the suffix 'dada' whenever we were to refer to him in public or private. When I grew up to own a car and a driver by the name of Raju was appointed - I repeated the lesson to my two small daughters. They have, as a result, grown up to call Raju, 'Raju Uncle' - very different from many of their friends who refer to their family drivers as 'my driver'. When I hear that term from a school- or college-going person, I cringe. To me, the lesson was significant - you treat small people with more respect than how you treat big people. It is more important to respect your subordinates than your superiors.

Government houses seldom came with fences. Mother and I collected twigs and built a small fence. After lunch, my Mother would never sleep. She would take her kitchen utensils and with those she and I would dig the rocky, white ant infested surrounding. We planted flowering bushes. The white ants destroyed them. My mother brought ash from her chulha and mixed it in the earth and we planted the seedlings all over again. This time, they bloomed. At that time, my father's transfer order came. A few neighbors told my mother why she was taking so much pain to beautify a government house, why she was planting seeds that would only benefit the next occupant. My mother replied that it did not matter to her that she would not see the flowers in full bloom. She said, "I have to create a bloom in a desert and whenever I am given a new place, I must leave it more beautiful than what I had inherited". That was my first lesson in success. It is not about what you create for yourself, it is what you leave behind that defines success.

Welcome Address by Subroto Bagchi, Chief Operating Officer, MindTree Consulting to the Class of 2006 on July 2, 2004 at the Indian Institute of Management, Bangalore, India on defining success.

THANK U!