IIPM Admission 2010

Saturday, September 27, 2008

Why the fears


IIPM - Admission Procedure

Michael O’Hanlon of Brookings Institution, who specialises in US national security policy, explains that “if the Pakistanis thought we were scheming to try to go after their nuclear weapons to prevent the possibility of a worst-case scenario, they would be quite put out, to put it mildly, and they would take measures like distributing those warheads even more than they already have. So, we do not really want to encourage this line of reasoning within the Pakistani military.” According to him, the ideal situation for Pakistan would be to keep the fissile material separate from the delivery vehicle. “Maybe, it is even separate from the rest of the bomb in all likelihood.”

Given this context, the question that many experts are asking is about the future course of US action. As Frederick Kagan, a military historian, puts it: “The US simply could not stand by as a nuclear-armed Pakistan descended into the abyss. But I do not envision and do not argue for any unilateral American option even under dire circumstances.” Instead, O’Hanlon says that America “is better off with a policy of quietly working with the Pakistanis to improve their procedures and safeguards.”

Another expert, Thomas Donnelly, Resident Fellow, American Enterprise Institute, is also in favour of “continuing to engage Pakistan, or trying to influence things internally.” The last words come from David Albright, President, Institute for Science and International Security, Washington: “In the event of an emergency involving Pakistan’s nuclear assets, the US should be prepared to act quickly if Musharraf asks for assistance.”

Why the fears
  • A few Pakistani scientists have close links with terrorist groups
  • Pakistan’s army is becoming more religious and Islamised
  • If Musharraf distributes the nukes, the problem aggravates
  • No one knows if the fissile material is separate in Pakistan
  • The US doesn’t know how to deal with Pakistan or Musharraf


For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Monday, September 22, 2008

Want improvement? C’mon let’s conduct an annual survey


IIPM : EXECUTIVE EDUCATION

Annual employee survey is nothing more than an eye-wash that companies carry out in the name of ‘continuous improvement’


Que: My company runs an annual employee survey in the name of “continuous improvement,” but nothing ever really changes. Now, my boss has asked me to come up with a better way. Frankly, I think the whole “polling the people” thing never works. Shouldn’t we just switch to a town meeting approach? (Name Withheld, Waterloo, Iowa)

Ans: It’s so easy to hate polls, isn’t it – especially now? Everywhere you turn, you’re bombarded with dozens and scores of “expert” surveys about who’s going to win, where and by lastly how much. Then, a few hours later, the poll results change, or turn out to be totally way off, and the pundits (literally!) start hyperventilating. You are left thinking that – as you put it – the ‘whole polling the people thing’ doesn’t actually tell you much about anything. Maybe political polls have their own flaws – obviously; they are an inexact science – and sure, company-wide ‘town meetings’ do in fact tend to generate meaningful debate. But effective employee surveys are, in fact, a form of polling that really works. The key, of course, is the word effective. Unfortunately, too many employee surveys concentrate on the kind of incidentals that get a lot of nattering in the hallways but rarely matter outside company walls. Maybe that’s why nothing meaningful ever seems to change at your company after the results come in.

Effective surveys are devoid of the usual triviality about parking spaces & lunchroom. They’re usually hard-hitting and totally confidential. They focus on the issues that really matter.

And they do so by delving deep into four distinct areas. Firstly, they probe whether employees truly buy into the company’s mission and its major initiatives. Look, leaders can pontificate all day, but the future that they desire will never arrive if employees do not reaaly understand why a change in direction will advance the organisation’s competitive position and as a result their own careers.

That’s why, if you’re moving from a product-driven to a service-driven strategy, for instance, make sure your survey asks employees how much they agree with statements such as, “I clearly understand the role service plays in the success of this business,” and “I support the use of our best engineering talent to upgrade the technology of our service offerings.” Never assume buy-in. Measure it.

Second, effective surveys probe whether managers walk the talk. There’s something inimitably motivating about a manager who does what he says he will and lives the company’s values. Surveys, by dint of their confidentiality, can shine a light on this key driver of employee engagement. They can test how managers behave when it comes to fighting bureaucracy or promoting on merit. Further, they can measure whether senior management is in touch with reality by asking for each employee’s level of agreement with the statement, “What I read about this company in the newspaper & annual report is consistent with what I experience at work everyday.”

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Wednesday, September 10, 2008

He’s On A New High


IIPM : EXECUTIVE EDUCATION

Siddarth Mallya has the tenacity, ambition and the aggression of his flamboyant father. By ROMSHA SINGH & NEHA SARAIYA

He made his first public and business appearance on May 8, 2005, during the launch of Kingfisher Airlines. It turned out to be one of the most important days of his life, and not because it was his birthday. It was because his father, the flamboyant Vijay Mallya, patted his 18-year-old son, and gave him the best possible gift. Junior Mallya became the official heir to the Rs.60 billion UB group. Siddarth Mallya became a director on the board of United Breweries (Holdings), the holding company.

The King of Good Times, Vijay Mallya, has always celebrated, launched and introduced new products or companies with aplomb and in style. His son’s grand entry into the family business seemed to be no exception. But then, as they say, there are always two sides of a coin; in this case, immense power came with even more immense responsibilities that were directly put on Siddarth’s shoulders. The immediate question that everyone around asked was ‘whether the young son was ready for the new job’.

He will step into shoes that seem several sizes bigger. “Vijay Mallya’s is a personality-driven organization, so it will not only be big shoes for Siddarth to fit into, but a tough act to follow. In the near future, when he joins, UB will try to consolidate its position in every sector,” says an equity analyst in Arihant Capital. From a stage where he was written off by observers, thanks to the burgeoning debt burden of UB group, Vijay emerged as the world’s second largest liquor manufacturer. Can his son do the same in new sectors like infrastructure, and emerge as a strong player in them? Answers Sayed Sagheer, an aviation analyst at PINC Research, “It depends upon what type of grooming he is getting. He could come with fresh insights, and take the group to another level.” Although not much is known about Siddarth, and he’s quite young, there seems to be a business streak in this heir-apparent. After his schooling from Wellington College, London, he’s currently pursuing his graduation from Queen’s Mary, UK. But already, he has acquired the tag of a ‘self-made man’. In his school days, he ran a small business, selling freebies and merchandise to make a quick buck.

People who know him say that Prince Siddarth follows the mantra of ‘work hard, party harder’, which has become common among NewGen middle and upper classes. But he supplements it with a disciplined routine, which he follows as it keeps him on his toes. What’s important is that the son shares a friendly relation with his dad, and is keen to follow his footsteps. Like Senior Mallya, who joined UB at a salary of Rs.400, Siddarth hopes to go through the grind before taking over managerial responsibilities.

Siddharth, who currently resides in London with his mother, has a fetish for sports like hockey (his favourite), squash and cricket. While we know all about Vijay’s love for flying high in his private Boeings, floating rapidly over water in his yachts, and racing fast and furious in his Formula I cars, Siddarth is pinned to the ground. Despite his diamond-like life that includes socialite evenings with the glitterati, he does care to remember the social responsibility work that the UB group is engrossed in.

Fortunately for Siddarth, his father has already done the good job. Today, UB group’s brewing division rules the Indian liquor market with a market share of 37%. As a brand, Kingfisher is globally recognised and sells in 52 countries, including India. In the recent past, the group has acquired national sorghum breweries in South Africa and is aggressively strengthening its market position globally. May be, by the time Siddarth takes over the management reins, the group would have grown manifolds in the liquor business.

At the moment, it seems that Siddarth is likely to acquire the same aggression and ambition. In fact, after Vijay Mallya’s much-hyped takeover of Shaw Wallace, the son was all praises for his dad. Was it just a son-dad obsession, or was the child learning the tricks of globalised business? “He is a young guy and is likely to follow both backward and forward integration,” asserts a liquor analyst. Adds Arpit Agarwal, Research Head, Arihant Capital, “Infrastructure is a huge opportunity for any global player like the UB group. Siddharth would be joining with a lot of new energy.”

However, there are several grey areas that both Siddarth and his group will need to grapple with. The first will be to manage the merger between Kingfisher Airlines and Air Deccan. Although Vijay Mallya will handle the tricky marriage for the next few years, it will be the son who will have to devise strategies to make it the Number 1 aviation player in India, especially after the proposed Indian-Air India merger and the expected Jet Air-Air Sahara integration. Most experts think that the aviation sector will continue to bleed for a few more years. So, it will be up to Siddarth to turnaround the financial fortunes of the airline, which incurred an annual loss of Rs 2,000 crore.

Then there’s a question mark on the future of dad’s dream and pet project of bringing Formula I racing to India through a tie-up with MOI family named as Orange India. The price tag of the deal between the two is a cool €88 million. May be, Siddarth is not involved in the initial stages, but he will need to ensure that the project turns out to be a success, as well as profitable. The son will be the one who will have to establish Formula I in India. Formula I can easily turn out to be Failure I for him.

Clearly, Siddharth has to make the right moves to ensure that UB group reaches newer heights during his reign. Luckily for him, there are many who feel that he has the instincts and the abilities to achieve this objective. “When children take over corporations, they bring about a lot of value addition. Siddharth’s mindset will be different as he is an altogether different personality,” opines R. Vaidyanathan, an aviation analyst at CII. We just hope that the Mysore cub finally roars like a tiger.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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IIPM to come up at Rajarhat
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