First day address to management students @ ASB

Value of Management Education

Till fifteen years back, I held the view that management education is not a value adding endeavor.   I have changed since then and today find the question quite redundant. However I will share some ideas on what adds value to management education. I am making an assumption that management education’s aim is to equip its students to become effective problem-solvers.

How would you approach the following problems?

Which car should I buy – a Mitsubishi Lancer or a Honda City?

How can we prevent events such as the Wisconsin gurudwara killing?

Should a new dam be constructed at Mullaperiyar?

Should the interest rates be lowered to boost production at the cost of incurring inflation?

How do I double the enrolment % at universities?

As a Project Leader how do I handle schedule pressure?

How do I compete with Walmart in my retail business?

You will note that the problems span a variety of domains – business, governance, family, society, economy, education and so on. However, traditionally management and management education got associated only with business. Success in every domain is governed by management and leadership imperatives. Hence I use the term “management” to encompass all of society and its ecosystem.

Value-add # 1: Enlarge the scope of applicability of management principles.

Challenges facing society, government, technology, environment and business change with every generation, say, every twenty-five years. Coping with these changes requires that development of leaders should co-evolve with the changes. This, in turn, translates into management education co-evolving with changes in societal behavior patterns. The current challenge can be described as the strong interrelatedness of the above institutions. When we say that life is getting more and more complex, we mean that life has become a web of interconnections rather than remaining as discrete disjoint entities. Look at the way the internet has changed our banking habits, our travel habits, and our reading habits. In such a scenario, problems do not arise in silos and problems do not appear with headings proclaiming to be an HR problem or manufacturing quality problem or customer retention problem.  There are just problems. Hence problem-solvers have to be first trained in the art of problem discovery and diagnosis. The solution part then is simple, mostly available in commoditized form. There are time tested system archetypes to guide solutions.

Value-add # 2: Look for interconnectedness and go behind the front-facing layer

Answers to the questions posed above can not be black and white statements. They are complex because there are multiple stakeholders each with his individual needs which may conflict with those of others. There could be constraints such as cost ceiling or governmental regulations. The relationship among the elements may not be linear. Many elements can not be quantified and yet they play a vital part in arriving at an optimal solution. Management education has a course titled quantitative modeling but I have not come across a course titled “qualitative modeling”.  We are all trained to be rational and logical while real life problems contain feelings and emotions. Look at consumer behavior – while buying a cupboard do we ask for sheet metal thickness and surface finish of spray painting? We decide to buy a brand by the look and feel of it. A marketing strategy that does not factor in the emotional aspects is bound to be incomplete and not produce the desired results. Even the best numerical simulation software needs a model of the problem as input. The model has to be as close to reality as possible. The best model in the world can not equal reality. Qualitative methods help in building a realistic model incorporating all stakeholders’ needs and constraints.

Value-add # 3: Don’t get obsessed with quantification, qualitative factors are equally important

Behavior is dynamic and context dependent; population control methods applicable to Kochi will not work in Lucknow. What worked in 1970 may not work in 2012.  Solutions are context dependent. I learnt that measures to make a private school in Trivandrum as the best school in the district will not work for a government school in  Mumbai. In this connection the case study method of management education is useful in providing a context. Management education should aim to prepare the students find an optimal solution for the given context. There is no unique solution to any problem in the world. Design of a solution is nothing but choosing the optimum solution from among a set of solutions. Good leaders, unlike mathematicians, do not look for global optimum solutions valid for all time. Good leaders also know when to exit from a chosen line of solution and make mid course corrections instead of being bogged down by ideological pig headedness.

Value-add # 4: There is no “the best” solution, only an optimal solution for a given context

 An electronics engineer would always use spectrum analyzer as a tool irrespective of what he is looking for. Often this results in mutating the problem to suit the tool and the resulting solution becomes subnormal. I consider a problem as an animate being which is crying to communicate with us but our ears have been muffled by our favorite models. For some management consultants every problem is a linear programming problem or a regression problem depending on their favorite tool or depending on what software package is installed in their computers. Instead we should make the problem as the master and the tool as the slave. The problem should drive the model and not the other way around. Else we will end up offering technologically brilliant solutions to some problem not the problem for which we have been hired. I have case studies based on first hand experience to validate this. An organization won a contract with a leading pharmaceutical company against stiff international competition because it did not mutate the company's  business model to suit a popular ERP software. It also took into account subjective criteria such as the level of cooperation among the units of the business arising out of inter-departmental politics. There is also a case study of a company losing a project with a leading automobile client because it had excessively concentrated on the technology without getting an insight into the business environment.

Value-add # 5: Beware of pre-conceived models

Specialists tend to be biased because of their passion for the domain. Technical people look at issues from their viewpoint. Bureaucrats look at them from their own viewpoint usually from a compliance viewpoint. Students of management need to be versatile so as to look at issues from an external vantage point. They should have the ability to see the forest and not just the trees, to discern the underlying music behind the chirping of birds. For the current times, versatility is more relevant than specialization. Gartner research has predicted, for example, that 7 out of 10 jobs in the IT sector will not require one to do programming or other technical work. They will be front facing roles closely working alongside the customer. The consultant needs to quickly understand the domain. This necessitates cultivating the fine art of asking stupid dumb questions upfront. Management education would be valuable only if the students are trained to seek business benefits to customers than just providing the best possible technology solution. A candidate’s CV that mentions expertise in Java or Oracle or specialization in HR or marketing will not attract the attention of employers. CVs that are likely to attract attention will read like
 “I increased customer retention in xxx telecom company from 22% to 37%” or “at yyy automobiles I brought down production costs by 17% by identifying and eliminating non value adding activities” .

Value-add # 6: Aim toward versatility

Herbert Simon, a Nobel Laureate, gave a life cycle model for problem solving process  as a linear sequence of activities. He was in fact formalizing the reductionist mindset of those times driven mostly by the industrial revolution paradigm. Our spiritual heritage repeatedly emphasizes cyclical models of development. A doctor discovers information by asking questions to his patient. He in fact enlarges the scope of the problem. Thereafter he performs a series of diagnostic tests to narrow down the options. He then prescribes medicines. The process does not end there. If the diagnosis is inconclusive he goes back to make more discoveries. If the prescription does not work he goes back to more diagnostic tests. Students of management education should be familiar with iteration and recursion exercises that are part of the life cycle of problem solving. Otherwise a consultant will not command the respect of clients if he just throws a set of recommendations at the client, collects his fees and walks away. A consultant should constantly keep looking for feedback. Only feedback will drive him toward the vision and mission objectives. It would help in mid course corrections. He should remember that the trajectory from problem origin to solution destination is not a straight line but a curved path, involving adjustments all the way. It applies to business, it applies to governance and it applies to personal career development.

Value-add # 7: Problem solving is a circular activity

Good leaders avoid knee jerk reactions namely temporary fixes that fail and actions that have side effects; they look for sustainable responses after drilling down the structure of the problem. For example, tightening gun control laws would be a knee jerk reaction to purposeless shooting incidents. It would create fresh problems because guns would be sold clandestinely. If guns are not available, the perpetrators of crime would use other weapons. If people are frisked before entering places of worship, criminals will choose other venues. Hence one needs to understand the problem at its structural level. Would a good leader sack his sales person at Shimla because the sale of ice-cream there in December had gone down?

Value-add # 8: Avoid patch work, look for sustainable solutions

It is obvious that good decisions need good inputs. Good decisions also need good decision making processes. In the context of management education, we need to revisit the horizontal segmentation of course content such as HR, finance, marketing, and systems. We should do bits of all these throughout the program and offer elective specializations based on different verticals. Yale and Loughborough (U.K.) seem to have adapted this approach. The latter has modules on Science & Technology too. Employers such as British Aerospace are happy to hire these students.

Value-add # 9: Rearrange content by applying core mandatory topics to specialized verticals

Globalization does not mean just having offices around the world and boasting that one’s topline comprises multiple currencies. It means, for example, raising capital from Singapore, sourcing raw material from Africa, getting designers from India, setting up manufacturing facilities in China and marketing the products in Europe. Thus an understanding and respect (not mere tolerance) for diverse global cultures is necessary for a successful business. Indian IT companies have learnt that HR incentives that work in India will not work in China, Walmart realized that pillow cases meant for USA will not sell in Germany. Suppose that a client belongs to a society where equality is the norm and as a result people at every level feel empowered. Assume that the service provider belongs to a society that is strongly hierarchical and decisions are made only at the top layer. If these parties do not understand the underlying cultural traits, misunderstanding is bound to occur. Management education will be valuable if the mindset of students is conditioned to get an insight into different cultural traits without being judgmental about them. Absence of an inclusive mindset leads to tensions and even terrorism.

Value-add # 10: Get an insight into different global cultures

We may not yet have an Indian style of management. But there are already several management principles attributed to Indians. Value of management education will be enhanced if we reflect on these. The ethical business doctrine of Nitin Nohria, Fortune at the bottom of the pyramid by late CK Prahlad, Purposeful business by Indra Nooyi, Strategy alone will not produce results, execution matters by Ram Charan are some examples. Several lessons from successful anecdotes and unsuccessful anecdotes described in texts such as Mahabharata are worth consideration; progressive steps in negotiation described by sama, dana, bheda, danda translate to cooperate, yield some territory, divide and rule, hostile take over. Several Indian business models have worked well – Amul and Mumbai Dabbahwalahs have caught the attention of management educationists, there are others such as Fabindia worth looking at.

Value-add # 11: Wisdom can come from inside too!

Vocabulary is not just a cosmetic façade. The correct vocabulary sometimes dismissed as jargon, drives the right mindset. The transformation needed for coping with the current time has been captured in the change in business vocabulary as shown below:

From                                                    To

Logical                                                 Intuitive

Analysis                                                Synthesis

Expansion                                            Conservation

Competition                                        Cooperation

Domination                                          Partnership

Limitless growth                                  Stable development

Command & control                            Consensus

Efficiency                                             Effectiveness

Output                                                 Outcome

Information                                          Relationships

For example, the number of hospital beds per 1000 people is a measure of output while quality of health is a measure of outcome. Each row above can be expanded into a full essay / case study. According to me your education would add immense value if you can clearly see the distinction between the word pairs given above.

Value-add # 12: Words are often pregnant with powerful messages

I wish all of you a very purposeful and value added stay at ASB.

Glimpse of human behavior

Producers have a special relationship with suppliers. Suppliers get feedback on the quality of the material they had supplied. Suppliers also get to understand the end product, its ultimate users and how the material they supply fits into the production-deployment cycle. Producers understand the constraints under which suppliers work in churning out the raw material. Producer holds an annual get-together of suppliers for such a mutually beneficial exchange of knowledge. During the meet, the producer briefs the suppliers the possible future profile of products and how the suppliers should gear up to meet the changing profile. The producer’s volume of business and profits are several times higher than any supplier. Hence it is the producer who hosts such a gathering. There are several competing producers producing the same or similar items competing for the same raw material. If a good supplier closes his door on a producer, the latter has to shut shop because the product is a strong function of the raw material. Hence each producer outdoes the other in wooing the suppliers. Suppliers are invited along with their spouses for an all expenses paid annual gathering. The travel is by Business Class, the accommodation is five-star and a car is at the disposal of each guest from the time of arrival till the time of departure.

The team that handles the logistics and PR at the producers’ end has a huge cache of humorous anecdotes that gives a glimpse of the behavior of the guests. Sample some of these:

"A" brought his mother-in-law in place of his wife because the wife had no interest in the venue, while the mother-in-law had been keen on visiting the temple at the venue. The implication was that the hosts had to arrange an extra room at the hotel.

"B" brought his grandson along and the imp was making such a ruckus that he had to leave the meeting immediately. He felt that he had lost nothing in the process and thanked his grandson for freeing him from hearing the dry business statistics of the producer.

"C" wanted to know if he is eligible to bring two spouses (he confirmed that both were legal wives) because he has a hard time choosing one over the other.

"D" cleaned up two full bottles of imported whiskey in one night.

"E" called all his relatives spread over the world – Kenya, New Zealand, UK, Canada and ran up a telephone bill running to six digits.

"F" indulged in facials, massage, spa and other exotic treatments twice within a space of twelve hours.

"G" had gone out early morning and decided to have breakfast outside. He submitted the breakfast bill for reimbursement (Rs.64) because he was anyway entitled to the hotel breakfast that costs Rs.300!

"H" wanted one more gift packet because he was only representing his boss and on return he has to give the boss his due.

"J" was shouting that while he has received several international awards for his work, the Indian producers who have used material designed by him have not chosen to fete him appropriately.

"K" was a self-invited guest at the get-together. The producer had the policy of rotation for invitees. Since it is not possible to handle all of them together, they were invited by turns. When K found that his colleague from another supplier has been invited he assumed that his invitation must have got missed. He justified his presence saying “How can the producer afford to forget me?”

"L" submitted a bill for Rs 3000 being the taxi fare from his residence to the airport (15 Kms). All that he had done was to make a detour of 75 Kms from the normal route so as to pay a visit to his village and enjoy the envy of the countrymen seeing him in a luxury car.

"M" telephones the host at 2 AM and demands that he needs the car at 3 AM so as to make a quick dash to the neighboring town to see his uncle and return before breakfast.

The guests were invariably males, hence spouse meant wife. There was just one exception, a lady Director of a supply agency. Dutifully, the husband (spouse) tagged along. When the men were in conference, a shopping cum outing trip had been organized for the ladies. The man really felt to be the odd one out. He could join neither the conference nor be the lone man among 20 ladies on a shopping spree. He sulked and complained that no separate program had been chalked out for him. Finally, the local club was persuaded to allow him the use of the golf course.

The ladies, while on shopping, decided to have a light snack before lunch. The host had deputed a lady to tag along with the ladies, as a matter of courtesy. The snack might have been light on the stomach, but the prawn cooked in a Russian sauce was heavy on the purse. The hapless lady had not anticipated such a situation and was helpless when she was presented a bill for Rs.8000. She had to plead with the hotel manager, establish her identity, the credibility of the company and request the manager to send the bill to the company for payment. All the guests were kept as hostages till the manager was convinced and let the ladies go without making payment. This happened when the usage of credit cards had not become commonplace.

At the closing ceremony, some of the feedbacks from the guests were:

More non-vegetarian items should be available in the buffet dinner

Price of the supplies should be increased because other competing producers were paying more

The process of X-ray screening of the material should be scrapped

The next year’s meeting should be in Maldives / Dubai / Singapore

When the guests had finally left the hotel they had left behind all useless stuff - the company brochures, case studies and so on. They had only carried the “goodies” – a leather suitcase, dress material, sweets and dry fruits.

Would the behavior of similar guests be similar under similar circumstances in other cultures such as Western countries, China, South Africa and so on?

Q-lucky

One needs a lot of luck to be serviced while in a queue. I am most unlucky as far as queues are concerned. If there are seceral counters for the same function, the one where I stand will move the slowest. My previous customer will always be a difficult one, with the person at the counter having to move away to consult her boss about whether the requested transaction can be processed. The boss will arrive at the counter to have a "look" at the customer before taking a decision. An argument will invariably follow. When that is done, the lady will receive a call on her cell phone that will keep her "busy" for 20 minutes. In the meantime, another employee of the organization will appear from behind with a transaction to be processed out of turn. When all these are taken care of, it will be time for the lady to go for a cup of tea.We are also human beings, aren't we will be the answer if someone grumbles about the lady's right to tea. Finally my paper is accepted and lo and behold, the network has gone down. She bangs the keyboard hard thinking that it will clear the network clog, a la pizhichal ayurvedic treatment. She peeps into other counters which are also down and is now confident that she can wait for the system to come to life again. After 35 minutes, a technician appears and reinserts a plug into its place (someone had tripped over it !). The system is now alive and the booting process starts - she gropes in her handbag for the chit of paper on which she has scribbled her password. At this time, the printer has run out of paper. She has to fill in a requisition form in triplicate to get a refill roll of stationery. At this time, the clcok strikes 1 and time for lunch break. She graciously does me a favor by saying that she will not go for lunch without completing my transaction.

How about your luck with queues?

Oh God!

If God, religion, and spirituality are matters internal and private to a person, what is the role of temples and community worship? This question has been answered rationally and eloquently by many learned scholars and sages. While confessing my inability to paraphrase these, I accept the relevance of temples for some simple reasons. We may not be able to perform elaborate vedic rites at home due to logistics and resource constraints. So, we may satisfy ourselves by participating in these (kumbhabishekam etc.) at temples. Many temples have a history behind them about the origin of the idols – they have been imbued with saannidhyam and chaithanyam. So they radiate benevolent waves which we can receive. But that is not the focus for this blog item.

Today when you go to a temple you need to worry about a hundred things and if God happens to be one of them you are lucky. Recently I went to a temple and had a harrowing experience. I had visited the same temple several times in the 70’s and 80’s and returned with pleasant memorable experiences. I could freely enter, go around, worship; the air used to be cool and the white sand soft on the feet. No one would speak to you a word, no one would offer advise as to what pujas to perform and no one would even volunteer to narrate the sthala puranam to you. You are totally on your own. No hassles of any sort. I used to say that THIS is the definition and benchmark for a temple.

On 29 Mar 2012 my experience was totally different. The place where you keep your bag and footwear has become more bureaucratic. While trying to enter through the main entrance someone orders you to enter through the North gate. You need to walk barefoot through public road with all dirt and stones to reach the North gate. Again, to enter the inner square, you are asked to go to the North side. There the person herds you back to the East side. When you tell him that you were directed to North side by his own colleague he says that for the last 300 years no one has been let in through the North side. At the East side, you are asked to form a single file queue. Suddenly someone comes and tells you to stand three abreast. After you enter, you are disallowed to cast your eyes on any of the other deities – Garudan, Hanumar or Narasimha. After entering the sanctum sanctorum, you thank your stars if you don’t trip and fall on the narrow wooden steps as a result of poking and beating by guards securing the God. God has mysteriously chosen a reincarnation of one of the female demons as His close proximity personal security guard. The display of lathis and batons by temple employees and security agents was a new sight for me as I had not gone to the temple for almost a decade. After all this, did I have darshan of the God? Difficult to answer, an honest answer would be “No”, because I was always concerned about not becoming a victim of the Security Madam’s shoves. It was also a new experience for me to see a priest who is the disciple of a learned scholar acting as tourist guide for a group of wealthy tourists from North India, the scene reminding me of Puri Jagannath temple and the soliciting by pandas.

What has caused this degradation? The only reason I can think of is that the temple has been found to be a treasure house! But, what is the connection between discovering treasure and devotees being subjected to ambiguous and inconsistent set of instructions? Need to control crowds is acceptable but lack of clarity in guiding the crowd is not acceptable. Use of batons to shove the crowd inside the temple is totally unacceptable. Many tourists would not know that they should not prostrate in the monolithic block in front of the deity. Inflicting a whiplash on the bare back of a devotee is cruelty perpetrated right under the nose of and right under the eyes of the Lord!

The younger generation is accused of being too much “this”-worldly and not having space in their minds for religion and spirituality. But, many of them have an open mind and are willing to experience for themselves before accepting or otherwise. Are temples responsible to drive youngsters away from religion?