Tag: Business

Batch of 2005

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IIM Indore

The world of business talks fondly of the batch of 1989 from the Indian Institute of Management Ahmedabad. This is due to the fact that a lot of participants in this class turned towards entrepreneurship and launched successful ventures of their own. The likes of Sanjeev Bhikchandani of Naukri.com, Rashesh Shah of Edelweiss Capital and many more.

Yesterday I was talking to some of my seniors, and suddenly there has been a tipping point in almost 30% of their careers. These 30% have left their well paying cushy jobs and started on the road to entrepreneurship. Some of them have already made a name for themselves, some of them are in the making.

I wish them all the best and hope that the batch of 2005, IIM-I is someday as famous (if not more) as the batch of 1989, IIM-A!

1984 to 2010

Prasad Ajinkya6 Comments
1984

We are in the process of formalizing our IT and Electronic Access Policies. In this process, often the team drafting the initial proposal finds it pretty easy to switch to the Orwellian mode of 1984, wherein Big Brother is always watching.

Although the intent of these people often stems from the fact that they desire to protect both the system and it’s users, but that sometimes requires that extra bit of control. However, it becomes extremely difficult to tell the need for control from genuine to paranoia.

Further, due to some unforeseen events happening in the recent past, these rules are doubly strict ensuring that the past mistakes of a few have to be borne by the entire team. Only to ensure that something that happens out of the blue should not happen again (and rightly so!).

The problem at hand is how to ensure that people are enabled to work and co-create with each other, but are still protected from any malicious ill will that might exist outside (and even within the system). How can Big Brother start co-operating instead of watching?

One clear method is to assume that all people are good and need to be enabled. The other is to work closely with them step-by-step and layout a simplified process and get the end-user buy-in on each of the steps. Till that happens, Big Brother will continue to exist … we are watching you!

Social Entrepreneurship – How is it any different?

Prasad Ajinkya4 Comments

I really do not see how is it any different from any other enterprise? I looked up the wiki page for Social Entrepreneurship, here’s what it says –

Social entrepreneurship is the work of a social entrepreneur. A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change (a social venture). Whereas a business entrepreneur  typically measures performance in profit and return, a social entrepreneur focuses on creating social capital. Thus, the main aim of social entrepreneurship is to further social and environmental goals. However, whilst social entrepreneurs are most commonly associated with the voluntary and not-for-profit sectors, this need not necessarily be incompatible with making a profit.

How in the world is this any different from what a good business does? It recognizes a social problem (read loosely as a problem that the society in general faces), and it solves the problem. For any enterprise, over a period of time there will be performance metrics – profit and return merely build sustainability. These would be needed by the social entrepreneur as well. So what makes it any different? Social capital is also created by enterprises. If you go through any of the annual reports that a firm publishes, they have this term – Goodwill.

If good will is not social capital, then what is? I think social entrepreneurship is just a term invented by hacks to make themselves feel good. Or maybe its just a marketing gimmick for generating funds.

PS – Before you hit the comment button to rant, do not misread me. All I am saying is that any good business is as good as any “social entrepreneurship”, then why make the difference? Is social entrepreneurship the new green?

Predicting Business Cycles

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Back in August 2006, I had written a post on Dot Com Bust 2.0, sadly rediff BLOGS has a bad way of storing posts (week-wise instead of it being individual posts) passed away into oblivion.

Revisiting that post was an interesting exercise, an excerpt –

Do we see history repeating itself? A sudden surge in this Dot Com 2.0 demand, people are already teeming in to cash-in on this new opportunity. Do I start off a firm of my own and try to do the same. Is this risk / venture enough to sustain me through the impending bust? During my induction at TechMahindra, there was a fellow from the top management who was wizened enough to predict that the next bust is going to come in the year 2009. We laughed it off back then, I am not laughing now. Maybe, the dot com bust might relapse, and why not? Fortunately, IT in India is not just about web development anymore. We will pass through this. But will my dream of starting off on my own do the same?

Full marks and respect for that top executive.

Facebook monetizes

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Facebook keeps changing its layout, looks, etc ever so slightly and so constantly that most users do not even notice the changes … until it hits them smack on the head. That’s what I like about these FB Apps, revisit the games after 3 months, and the game has also evolved … it has got more items, more plots … somehow it has become more interesting.

That’s why when I started playing Hero World, I couldnt help but notice that instead of having micro transactions through pay-pal or some such payment gateway, the game also had Facebook credits as a currency source. On further digging, I found that Facebook is offering users to buy Facebook Credits. Users can then exchange these credits with different applications.

Instead of carrying out micro transactions within games, now we can carry them through Facebook itself. Good to see a definitive revenue stream other than eyeballs and ads.

Edit: After seven years, revisiting this post in the December 2017. Facebook now boasts of a robust advertising model.

Price of failure

Prasad Ajinkya5 Comments

Yesterday I met some friends over snacks at Candies (in Bandra, do look it up if you are in the area). A friend of mine has recently switched to work as a manager in a reputed firm, and he was overall happy with his job (work from home and all the perks).

Then he said something which sparked off this post, he said the amount of money the firm wastes in their day-to-day activities is insane. At first it seemed as if he was talking about how the organization has money to spare … but then to drive his point home, he gave examples. Inane but true. A lot of us are willing to put in that extra buck just so that everything that can go wrong won’t.

The design has to be perfect, the models have to be dressed in a certain fashion, the product has to be the best. In creating these spaces, we are de-risking ourselves … that’s what I like to tell myself. But are we?

Is the price of failure so high that we don’t take action and let others do what needs to be done? So what’s the price of failure for different people? For a person who has nothing to loose, its zero. A start-up for example can afford to go in some communities and have it misrepresented … its ok, bygones can be bygones for them. But take a Coca Cola or a Pepsi (not that these are the aforementioned organizations), and you suddenly have to think about ten thousand other factors. Not a freeing thought, is it?

Would it help if one could see the price of failure as zero?

The Hell Curve

Prasad Ajinkya12 Comments
The Hell Curve
The Hell Curve

No, I deliberately wrote it as Hell instead of Bell.

Managers who have run teams must surely know this model. A friend of mine works in one of the top IT organizations this country has, every year he worries incessantly about how he is going to survive appraisals. Not his own, he is consistently in the top 10% of the firm, but his teams.

They carry out appraisals using the bell curve in this organization … that means in any project team, someone has to be top performer, someone has to be average and someone has to be in the bottom 10% … survival of the fittest in this corporate jungle … that’s the rule.

The problem with this rule is that managers are forced to take under-performers and average team members as opposed to top performers. This is so, because when appraisal time comes, he cannot appraise everyone as a top performer. So if he has more than 10% of his team putting their hearts into the project, then after a year, someone will get an unfair assessment … someone will be disappointed in his superiors. Someone will get disillusioned. And that someone would be reporting to the manager who appraised him.

The only solution available for the manager then, is to select a mediocre team and hope that they deliver the project. An entire organization that runs on mediocrity!

My question to HR personnel then are two-fold –

  1. Why the bell curve?
  2. What will you do if the curve becomes skewed (towards the top performer side)?