Vision, Mission and all that claptrap

Every organisation worth its salt has a vision and mission statement. Often crafted by expensive consultants. Those that can't differentiate between the two, have a single statement that's both a vision and a mission. Those who profess to know the difference, have two statements. They are often held in reverential awe. I suggest they must be binned as unadulterated claptrap.

Firstly these motherhood statements have virtually no meaning. Take these examples

"To experience the joy of advancing and applying technology for the benefit of the public" - Sony

"To help people and businesses throughout the world realize their full potential"- Microsoft

"Ford Motor Company is focused on creating a strong business that builds great products that contribute to a better world "- Ford

Can anybody decipher what they mean other than Mom and Apple Pie ?

Some are laughable . Take these for example

"To be the company that best understands and satisfies the product, service and self-fulfillment needs of women – globally." - Avon. Really ?? The self fulfillment need of many women is to watch Saas Bahu serials. By that standard Avon must be in the business of making TV soaps.

"Saving people money so they can live better" - Walmart. Oh Yeah ? The best way to save people money is to tell them not to buy the stuff they don't need.

"Be the best in the eyes of our customers, employees and shareholders" - American Standard. Ha Ha. Fat chance.

I am not at all sure who these Mission Statements are written for. It certainly can't be for employees. 99.99% of employees work only to earn a salary. Their daily job is  a mind numbing grind - answering emails, yelling at people, doing phone calls, looking busy and doing some boring piddly stuff. Not achieving some lofty mission. For more than two decades I was supposed to "meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life". I did nothing of that sort. I wrote ledgers, closed books of accounts, borrowed money and helped put people in other countries out of a job. I certainly did not, and do not,  look good (aaaahhhh, if only ) and as for feeling good, we shall let it pass without an unparliamentary comment !

I hereby suggest a common mission statement for all businesses - " To make money in whatever way possible". If some would like to add the words legally and ethically at the end, that's optional.

PS - With all due apologies to Stephen Covey who wishes to make people like you and me write a mission statement for life !

The curious case of Ben & Jerry's

Do you like Ben & Jerry's ice cream? Most probably a resounding yes.  But this post is not about its ice cream. Its about what it has done on Tuesday.

What it did on Tuesday was to go to New York's Zuccotti Park where the Occupy Wall Street protesters are camped and dole out free ice cream to all of them. Nothing spectacular about that, except that it went on to publicly declare its support for the protesters. It also published a statement from its Board of Directors that the company has the deepest admiration for the protesters and is standing with them. You can read what the Board said here.

Ben & Jerry's has long been a left leaning company promoting a variety of causes. Its founders Ben Cohen and Jerry Greenfield started the company with a clear social and sometimes political agenda. So should this latest action be surprising. Yes, because, Ben & Jerry's is no longer an independent company. It's a subsidiary of Unilever, a global multinational company, perhaps the very sort that the Occupy Wall Street protesters are agitated against (that is, if somebody can decipher what exactly they are protesting about).

Was Unilever ambushed by the act of Ben & Jerry's ? Tough to believe so - for the Board of Ben & Jerry's has Unilever representatives, including an ex Director of Unilever itself. Unilever has issued a statement that it is neutral to social campaigns and has no comment to make, but that is a blithe remark considering that  its subsidiary is indeed making a very loud statement.

How far do you let your subsidiary act on its own ? Usually subsidairies are simply legal shells and the parent runs them as one corporate whole, unless there are external shareholders. But Ben & Jerry's is different. Perhaps because of its historical brand image. Perhaps because of covenants agreed with the founders at the time of acquisition to allow the company to have a social agenda. But still, the latest action seems a step too far. I won't be surprised if the upstart is reined in.

What of the protestors ? They are objecting to evil corporations; right ? Do they want the support of one ? Some of them expressed mixed feelings. They said they were uneasy about corporations muscling in on their patch. But they also said, they could not turn down a free ice cream !

Very curious.

What's your CQ ? Are you Glocal ?

Everybody, who’s anybody, is a management guru. Yours truly included. No wonder airport book shops are filled to the rafters with all sorts of business books. I’ve often wondered who reads all of them. Most of them are boring ego trips, or say the mind blowingly obvious in obscure jargon.

This mini tirade has been triggered by a book review I read. The review introduces two pieces of jargon I had never heard of. Cultural - intelligence quotient , CQ for short (after all any self respecting jargon has to have an abbreviation) . And “glocal” presumably short for “globalised local”.

This is all about how in this globalised world, you need to understand local cultures, know how to much to bow, know where to point your feet, and such stuff.

I have been around a bit; so can’t resist appointing myself as a guru and expounding on this “culture thing”. Methinks, this is grossly over emphasised. Yes local culture is important but its nowhere near as important as its made out to be.

Human beings the world over are the same. They have roughly the same needs and roughly the same expectations in a corporate setting. In most nations, people have become used to dealing with foreigners. And when they deal with a foreigner, they don’t expect her to be a local and adopt exactly the same practices ; they are usually fine if she’s different. Unless you give offence deliberately, you are usually OK.

Take China. Much was made of the “culture” here of drinking. When you take government officials out to dinner, you are supposed to drink yourself to death. Nonsense. I am a teetotaler and I just say politely that I don’t drink and nobody has taken offence to that. Similarly the ritual of exchanging visiting cards – two hands, small bow and all that stuff. Again, nobody has yet taken offence if I have forgotten my card or given it with one hand – they are usually more interested whether we deal professionally and fairly. A lot of these so called practices and symbols are all quite unimportant and it really doesn’t matter if you don’t follow them. Much is written about the Asian need for “saving face” and how a “yes is often a no”. Please tell me if there’s a single culture that thrives on losing face or on public humiliation. Rubbish. People world over have the same needs –nobody likes being told off in public and a direct message delivered with sincerity and kindness is well received everywhere.

What is important is genuine sincerity and respect for the country you live in and its people. Giving the card with both hands and then rubbishing China’s internet policy will give offence. Making the absolute correct bow with the Japanese and then making fun of their camera clicking habits won’t win you friends. Being curious about the country, trying to learn its language, traveling a bit around, being respectful of its strengths, not mentioning its perceived weaknesses, never comparing your own country with it are all sensible things to do anywhere. Being respectful to people and being sincere and kind to colleagues will get you far everywhere. Even if you do culturally the wrong thing, if people perceive that you are sincere and respectful, they usually take no offence.

Its all just common sense, really.

Holidays is a cultural thing

Today is Christmas day – virtually everywhere in the world, today is a holiday. And here I am , at my desk, pretending to be working. For its not a holiday in atheist China. Despite the best efforts of companies to tempt the Chinese into “Christmas shopping”, the day remains stubbornly irrelevant here.

I have a stream of people walking up to my desk today. They are all asking me to approve carrying forward their leave entitlements which they have not used up. Everybody knows that they will not use them up next year as well and will ask to carry it over again. This charade goes on every year. Much as I rail against them for not planning their leave properly, its not going to change. For the Chinese (and Indians) don’t like to go on holiday. They like to work.

Contrast this with Europe. In August, most of Europe, at least France, completely shuts down. And between Christmas and New Year, not a soul is seen anywhere near the office. So here we are, working in a global business, where the lights have gone out of the offices everywhere in the world, bar the solitary illumination seen in China.

It's not that one is wrong and the other is right. It just shows the cultural differences between Europe and Asia. Europeans prize their holidays highly. To them its 46 weeks of slogging to earn the 6 weeks off. Asians start to feel uncomfortable at the very thought of taking anything more than 2 weeks off. And a second holiday during the year will prompt snide remarks of being on perpetual holiday.

But this is time for holiday cheer. Whether you are at your desk in China or stuck on the Eurostar between the UK and France, here’s wishing you a Merry Christmas and the compliments of the season. Maybe you are having a white Christmas, as seems to be the case in most of the Northern Hemisphere. Or, you may be in Bondi beach in beach clothes soaking in the sun. Or you might be the classic NRI, on the once in two years trip “back home”. To you, may I quote from an unknown author - Let the spirit of love gently fill our hearts and homes. In this loveliest of seasons may you find many reasons for happiness.

Amen.

A great organisation

The house of the Tatas has been synonymous with values which are unique in the annals of business history. This post is about why they more than deserve their illustrious reputation.

This is from an e mail doing the rounds – these are apparently notes taken by Dilip Ranjekar , CEO of the Azim Premji Foundation. I haven’t requested permission from Dilip, or the persons who forwarded me this mail, to post this, but I am sure none would mind me spreading a story that ought to be told and will bring a lump to your throat. Here it is

Last evening, I had a dinner meeting with HNS in Goa

He narrated the 26th November 2008 terror attack on Taj Mumbai and there were some important points.

Terrorist entry

1. They entered from the Leopold Colaba hotel entrance and also from the northern entrance - spraying indiscriminate bullets on the Taj security personnel and guests in general.

2. Though Taj had a reasonable security - they were surely not equipped to deal with terrorists who were spraying 6 bullets per trigger.

3. The strategy of the terrorists was to throw chunks of RDX in an open area that will explode and burn - creating chaos so that the guests and staff run helter skelter so that the terrorists could kill them. The idea was to create maximum casualties.

4. There were several critical gatherings and functions happening in the hotel on that day - a Bohra wedding, global meet of Unilever CEOs and Board
members and 2 other corporate meetings were being held in the hotel - besides the usual crowd.

5. The firing and chaos began at about 8.30 p.m. and the staff including employees on casual and contract basis displayed exemplary presence of mind, courage and sacrifice to protect the guests who were in various halls and conference rooms.

Stories of Staff Heroics

1. A young lady guest relation executive with the HLL gathering stopped any of the members going out and volunteered 3 times to go out and get things when the situation outside the hall was very explosive and she could have been easily the target of the bullets

2. Thomas George a captain escorted 54 guests from a backdoor staircase and when he was going down last he was shot by the terrorists

3. There were 500 emails from various guests narrating heroics of the staff and thanking them for saving their lives

4. In a subsequent function, Ratan Tata broke down in full public view and sobbed saying - "the company belongs to these people". The wife of Thomas George who laid his life saving others said, she and the kids were proud of the man and that she did not know that for 25 years she lived
with a man who was so courageous and brave

5. The episode happened on 26th November, a significant part of the hotel was burnt down and destroyed - the hotel was re-opened on 21st December and all the employees of the hotel were paraded in front of the guests

6. It was clearly a saga of extra-ordinary heroics by ordinary people for their organisation and in a way for their country. The sense of duty and service was unprecedented

7. The young lady who protected and looked after the HLL guests was a management trainee and we often speak of juniority and seniority in the organisation. She had no instructions from any supervisor to do what she did

* She took just 3 minutes to rescue the entire team through the kitchen
* Cars were organised outside the hotel as per seniority of the members
* In the peak of the crisis, she stepped out and got things for the guests

8. People who exhibited courage included janitors, waiters, directors, artisans and captains - all levels of people

The Tata Gesture

1. All category of employees including those who had completed even 1 day as casuals were treated on duty during the time the hotel was closed

2. Relief and assistance to all those who were injured and killed.

3. The relief and assistance was extended to all those who died at the railway station, surroundings including the "Pav-Bhaji" vendor and the pan shop owners

4. During the time the hotel was closed, the salaries were sent by money order

5. A psychiatric cell was established in collaboration with Tata Institute of Social Sciences to counsel those who needed such help

6. The thoughts and anxieties going on people's mind was constantly tracked and where needed psychological help provided

7. Employee outreach centers were opened where all help, food, water, sanitation, first aid and counseling was provided. 1600 employees were covered by this facility

8. Every employee was assigned to one mentor and it was that person's responsibility to act as a "single window" clearance for any help that the person required

9. Ratan Tata personally visited the families of all the 80 employees who in some manner - either through injury or getting killed - were affected.

10. The dependents of the employees were flown from outside Mumbai to Mumbai and taken care off in terms of ensuring mental assurance and peace. They were all accommodated in Hotel President for 3 weeks

11. Ratan Tata himself asked the families and dependents - as to what they wanted him to do.

12. In a record time of 20 days, a new trust was created by the Tatas for the purpose of relief of employees.

13. What is unique is that even the other people, the railway employees, the police staff, the pedestrians who had nothing to do with Tatas were covered by compensation. Each one of them was provided subsistence allowance of Rs. 10K per month for all these people for 6 months.

14. A 4 year old granddaughter of a vendor got 4 bullets in her and only one was removed in the Government hospital. She was taken to the Bombay hospital and several lakhs were spent by the Tatas on her to fully treat her

15. New hand carts were provided to several vendors who lost their carts

16. Tata will take responsibility of life education of 46 children of the victims of the terror

17. This was the most trying period in the life of the organisation. Senior managers including Ratan Tata were visiting funeral to funeral over the 3 days that were most horrible

18. The settlement for every deceased member ranged from Rs. 36 to 85 lacs in addition to the following benefits:

* Full last salary for life for the family and dependents

* Complete responsibility of education of children and dependents -anywhere in the world

* Full Medical facility for the whole family and dependents for rest of their life

* All loans and advances were waived off - irrespective of the amount
* Counselor for life for each person

Epilogue

1. How was such passion created among the employees? How and why did they behave the way they did?

2. The organisation is clear that it is not something that someone can take credit for. It is not some training and development that created such behaviour. If someone suggests that - everyone laughs

3. It has to do with the DNA of the organisation, with the way Tata culture exists and above all with the situation that prevailed that time. The organisation has always been telling that customers and guests are #1 priority

4. The hotel business was started by Jamshedji Tata when he was insulted in one of the British hotels and not allowed to stay there.

5. He created several institutions which later became icons of progress, culture and modernity. IISc is one such institute. He was told by the rulers that time that he can acquire land for IISc to the extent he could fence the same. He could afford fencing only 400 acres.

6. When the HR function hesitatingly made a very rich proposal to Ratan - he said - do you think we are doing enough?

7. The whole approach was that the organisation would spend several hundred crore in re-building the property - why not spend equally on the employees who gave their life?


THIS is a great organization, full of great people.

Where should a CEO live ?

These days many companies are global. Does it matter where they are based ? Or where their top executives live ? I believe it does.

This post is prompted by the news that HSBC’s Chief Executive, Michael Geoghegan, will relocate from London to Hong Kong. This is a consequence of the fact that the future of the bank will more and more be in China.

In most companies, there is a corporate headquarters. Usually this is a historic accident – the headquarters are where the company originated from , even though its current business may be in completely different places. The CEO and most of the senior management reside in HQ. Sure they travel a lot. But they live in the base.

In the past, this made sense. The top team had to be physically together. Meet often. It doesn’t make sense today. It is much more practical to meet personally at regular intervals , but meet often virtually. That’s the way most companies are run anyway.

Its important for the top team to understand the countries which are most crucial for its operations. And real understanding does not come from travel alone. It often comes from living there. A CEO’s visit to any country is a carefully orchestrated event that gets him to places and see things that everybody wants him to see. There’s no way you can understand China, by alighting at Pudong airport, driving to the Shangri La, having a zillion presentations at the office, meeting two senior government officials, having dinner at the Yongfoo Elite and going back. However many times you do this, you won’t “understand” China.

For a truly global company, its top team must be spread over the major markets it operates in. The major geographies where its operations are. In the last team I was associated with, the top leaders were based in France, Germany, the UK, the US and China. It resulted in some arduous travel, but it achieved an important objective – it was a truly global team.

Its entirely appropriate that the CEO of HSBC resides in Hong Kong. After all its one of those rare “countries” where a commercial bank issues the local currency notes. HSBC issues most of the dollar notes in Hong Kong and one of its employees signs it. In the future the CEO might want to sign them himself. After all how many CEOs can have the satisfaction of taking his wallet out and seeing his signature every time he hands over a dollar bill. It must be the ultimate status symbol.

The culture thing

Its really tough to figure out what “culture” is. In a company. Just like any group of people - a community, a village, a country, or a race, - has a “culture”, so does a company. But its often very different from what the leaders of a company want us to believe.

Culture is a way of behaviour that characterises many of the people in a company. It develops as a consequence of a series of events in the company’s history, from the behaviour of its leaders, from the nature of people it recruits, and from what sorts of behaviours are actually rewarded and encouraged.

Companies tend to list a series of “values” that define their "culture". These are often motherhoods – mom and apple pie that that are quickly ignored. Companies usually list too many values – some seven or eight of them , which are all utopian in nature. These are impossible to achieve. One or two of them will predominate, which may not at all be one of the seven “official” ones. Companies’ official statements of culture are what the leadership would like the culture to be. But what it actually is, will be determined , not by the statement, but by history and actions.

Companies often want to be “innovative”. They then insist that every $10 expenditure to be authorized fourteen levels up in headquarters. Fat chance of a culture of innovation coming up. Tyrannical companies often have “caring” as a stated value. They then promote and actively encourage the testosterone filled macho monster. And cultures need not be only on positive traits – many times they are “negative”. Greed often characterises many organizations – my bonus is the key and to hell with everything else. If that’s the prevailing virtue, no amount of shouting from the rooftops on team working is going to help.

What can be done to promote a certain culture ? Take one or two values that the leadership truly and personally believe in and drive it relentlessly. Non conformance to those values is not tolerated, even if you have performed brilliantly on other fronts (this is where companies often stumble – reward a high performer who consistently flouts your stated top value). And stick with it for a long period of time. But you can only try. Culture is an amorphous thing. It will develop in ways that are unforeseeable.

Why is this important to us ? Its important because increasingly, our way of behaviour as individuals will be determined by the companies we are affiliated to. In the past, it was determined by race, nationality or religion. Increasingly, as we spend most of our waking lives in the workplace, and as the world becomes flatter, it will be determined by the organisations we work in. You may have been born a very humble, self effacing individual. After 10 years in Goldman Sachs, you just cannot be that way !

Take a vacation for however long you want !

If a company told you that you can take a vacation whenever you want, and for however long you want (paid of course), what would you say ? Unbelievable ? There can’t be a company like that ? Think again. There is a company like that. And a pretty successful company, so far. Welcome to Netflix.

Their logic is simple. People act responsibly when given the freedom. After all nobody tells you that you have to work for more than 8 hours; or on weekends. And yet you do. Netflix says if its not monitoring exactly how many hours you work in a day or how many days a week, why should it “monitor” how many days vacation you take. Interesting point of view, eh?

Netflix’s presentation called “Reference Guide on our Freedom & Responsibility Culture” found its way into the internet. Click here for a fascinating read. It’s a 128 slide long presentation – but don’t be intimidated by the size. These are simple slides and a quick read. Every company would do well to read it.

Here are some interesting aspects of their culture that makes you think

- Increase employee freedom as you grow. As companies get bigger, they add complexity and a plethora of rules and procedures get formulated. Netflix says that as they grow, they consciously try to give more freedom, and not chain people.

- Their policy on travel and entertainment – “Act in Netflix’s best interests”. That’s it. No 100 page policy document detailing entitlements. No checking of expense statements.

- Every year each employee's pay is reset to the market (whatever it takes if he were to be hired afresh). No % increases.

- Almost all salary is fixed. No bonus pool. Pay is not dependant on company’s performance.

A very interesting point of view. I am so struck by reading this, that I intend to post on company culture and HR policies all week.