THE ELEPHANT CATCHERS BY SUBROTO BAGCHI

Presented By:

Vandita Purohit

Charu Priya Palni

Rimleena Boro

Mukesh Bhavsar

CONTENTS About The Author Introduction Part I : Idea of Scale Part II : Scaling your Business Part III : Scaling Your Intellect Part IV : Scaling Your Reputation Part V : Scaling Your People Part VI : Scaling Against Adversity Conclusion

ABOUT THE AUTHOR Subroto Bagchi is an Indian entrepreneur & business leader.

He was born on 31 May 1957 in Patnagarh, Odisha.

He studied Political Science at the Utkal University.

He started his work life as a clerk in the Industries Department of the Government of

Odisha in 1976.

From1981, he entered the computer industry and worked for a number of computer

companies between 1981 and 1999. His longest stint was at Wipro.

In 1999 he co-found Mindtree along with 9 other co-founders. 

Mindtree is a $500 million, Global IT services company with approximately 14500

people. It is listed at the National Stock Exchange and the Bombay Stock Exchange in

India.

Presently, he is the Chairman of the Mindtree Board of Directors.

In 2006, his first book The High Performance Entrepreneur-Golden rules for success

in today’s world was published.

Other books authored by him are – Go Kiss the World: Life Lessons For The Young

Professional(2008), The Professional(2009), MBA at 16(2012), Trouble in

Gangtok(2012), The Captainship: First-gen Entrepreneurs(2013), The Professional

Companion(2013),[On Leadership and Innovation(2014)

THE ELEPH

ANT CATCH

ERS

I. The Idea of Scale

II. Scaling Your Busine

ss

III. Scaling Your Intellec

t

IV. Scaling Your Reputa

tion

V. Scaling Your People

VI. Scalin

g Agains

t Advers

ity

INTRODUCTION The book is build around the core idea

of scaling an organisation and its people.

The book is divided into VI parts that deal with different stages of scaling.

The core idea of scale and its associated attributes are applicable to any institution.

The book will enable the reader to get an insight into his organisation and himself.

The book is written from a practitioners point of view and all experiences written about have been lived by the author.

The idea of he book is to tell the reader how to scale if you want to, need to, and if you must.

PART ITHE IDEA OF SCALE

To be comfortable with the idea of scale To Strategise To build the right infrastructure with a systemic view To hire the right people to manage the scale and also

re-engineer existing workforce

LESSONS FROM A SWAMI

‘Those who do not embrace the notion of size and cannot enjoy magnitude will always have problems with it.’

Swami Ji’s formula to balance growth and scale was based on the following ideas:

1. To be at peace and comfort with scale. The idea of scale should not daunt

you.

2. To have a sense of purpose, a larger goal at which you are aiming (for Swami

Ji it was sense of serving surrounding committee)

3. To have a sense of self-regulation. No supervision is required. A self-

regulating system minimizes the need for bureaucracy

4. To adopt simplicity . Simplicity is a powerful tool in any human effort. A simple

communication is more powerful than a complex one.

5. To be accessible. Accessibility plays an important part in maintaining the

balance and security that is essential in keeping any place together.

6. To see growth as an ally, a welcome way to expand capacity and, from here

on, to make a difference.

MURDER IN NEW YORK

‘If you are not ambitious enough to scale, and scale big, you will not need to engage with the term strategy’

While strategising to scale, remember the following:

1. Strategise like you are re-starting. Strategizing at this juncture is as important as

at the time of setting up your business.

2. Aim for exponential not incremental growth. Aiming at incremental growth is

looking at a low risk approach that will lead small upsides.

3. Great strategy must have an emotional appeal. Without emotion strategy will not

be memorable, and people do not follow what they cannot remember. Strategy is

not the child of reason, it is an act of emotion.

4. Try to see the bigger picture and the interconnected nature of things. A

conventional problem may not always have a conventional solution.

5. People at all level must be encouraged to think strategically. Companies do

not scale themselves, it is the people who take it to the next step.

6. Simple is smart. A strategy is only effective when people executing it understand

it and connect to it.

A BAMBOO BRIDGE TO CROSS THE OCEAN

“Successful organizations invariably mimic living beings in designing their infrastructure. The more they incorporate a systemic view, the more evolved and truly scalable they will be.”

Organisations think of infrastructure at 3 distinct but interconnected levels:

1. The Physical Infrastructure (bottom) – offices, factories, warehouses, retail

outlets.

2. The Intellectual Infrastructure (middle) – systems, processes, methodologies.

3. The Emotional Infrastructure (top) – accessibility of an organisations leaders,

ability to respond to crisis, propagation of its core vision and values.

An important element of infrastructure design applicable to all levels is ‘digital

strategy’ of an organisation. It is basically the information system(mimics the

nervous system of a being) that an organisation uses.

The Intellectual and Emotional infrastructure involves not just employees and

management but also connects customers with every part of the organisation. And

this understanding of customers helps it to develop its physical infrastructure in

accordance.

Each of these infrastructure layers must be creative, robust and built ahead of its

time.

THE ELEPHANT CATCHERS

‘Unlike an operation to catch rabbits, trapping an elephant calls for expertise over enthusiasm. Those who hunt rabbits are rarely able to rope in elephants.’

Initial customer/client relationships are based on trust and a certain personal connect but as you grow they demand process maturity and vertical expertise.

Catching an elephant is not just about large deals. It is about all those things that require the ability to handle volume with complexity. You need the right people to manage the cached elephant.

The Elephant Catchers come at a huge price, some of them would be:

1. They demand fancy money and expensive severance benefits.

2. They come with their own teams, so before they add to the business, they add to the cost.

3. There is pressure of adjusting reporting lines.

4. They do not come with a guarantee Old employees need to befriend The Elephant Catchers and also learn some new

skills themselves. For most employees it will a unique and rewarding experience in personal re-

engineering, as well as a great opportunity to renew their social contract with the enterprise as it begins on its next long march.

PART IISCALING YOUR

BUSINESS Show your potential customers that you are hungry,

willing, genuine and trustworthy Identify the hunters and farmers from the grizzlies and

the skunks Know when to say no You ought to have the right reasons for mergers and

accusations Be cautious of short cuts and treat your equity with

respect

THE CAT AND THE DOG DIFFERENTIAL

‘The key to winning a customer’s business is to be able to connect and to come across as hungry, willing, genuine, trustworthy and, above all, interesting’

Life will always put you in unexpected positions. You may toil very hard to achieve a certain goal and just when you feel you are about to touch it, feel it, there are chances that at that very moment , the goal has shifted farther

Nothing to lose- It helps mind to see possibilities when you are staring at what may look like a full-stop.

“It is the dog that fetched the newspaper for you all these years, but when it’s the time to feed milk, you are instead choosing he cat”

The 3 A’s- Attention, Agility and Access Think different, think inventive Logical reasoning is very important but do not underscore the power of emotion Get over a mental block. Keep trying to venture into new domains. Look for what is common with the customer beyond your expected capabilities

and use it to create the connect

OF HUNTERS, FARMERS, GRIZZLIES AND SKUNKS

‘Sales is not witchcraft. It is a science as much as it is an art, and must be managed with the same discipline as product development, manufacturing and servicing’

Sales force can be broadly divided into 4 categories:

a) Grizzlies: sales people who only catch salmons the easy way

b) Skunks: bad client deals  just for the sake of acquisition

c) Hunters: good at opening doors but not at building a relationship

d) Farmers: not good at opening new accounts but effortlessly create long term relationships

An organization needs hunters and farmers World has moved on from Philip Kotler’s 4P’s (Product, Price, Place and

Promotion).The different verticals, their sub-verticals have brought transformation in traditional ideas of customer segmentation.

In the beginning sell like hell, but building on and sustaining the initial sales thrust, with getting new customers , require experts.

Invest in good information system that scientifically analyses sales data and formal sales training so that at no point do the management and personnel lose sight of the central sales division

MARRIAGES OF CONVENIENCE

‘ As in all walks of life, in business too, relationship choices have consequences. If you seek a marriage of convenience, do so with your eyes open and always be aware that it just might become an unholy alliance’

It is important to build sales capability and acquire new customers. Never be overly dependent on single customer but a few strategic relationships work like booster rocket

Sub-optimal relationships are not good either. Dangers of prolonging relationships with small customers- project size is inversely proportional to work satisfaction. Determine the ‘mutual fit’ candidates.

In choosing relationships, if the promise of the future comes with a price tag, look at the cost of ownership in its entirety and not sacrifice future for the sake of the present.

Joint ventures are not always the best settings especially for mid-size players If you seek a marriage of convenience, always be aware that it just might become

an unholy alliance. In that case clean divorce is better than an unhappy and messy marriage

THE M & A MYTHS

‘When managers propose mergers and acquisitions, the important thing is to ensure that they are doing it for the right reasons, and not because they have run out of ideas on how to grow their business organically or are fatigued and now see a merger or an acquisition as an easy way out’

According to the author, the sad part about M&A is that key people get large payouts that very often make them lazy and they lose commitment to work like they did before

Founders never stay to create new synergies and process of integration If the founders of an acquired unit hit a glass ceiling and could not grow their

company beyond their current situation, it is highly unlikely they would do better in a changed scenario

Small and cheap acquisitions lack critical mass because of which the acquiring company looses interest in them

Managing ‘key employee expectations’ Finance and HR play a major role here. Many a time cross cultural forces comes

to play

VALUE, VALUATIONS & THE ROLL UP KIDS

“ If anyone tries to show you a path to double or treble your company’s valuation overnight, don’t get taken in. Life is about constant growth, but any unnatural growth is inherently destructive.

Treat your equity with respect Frittering it away to seek cheaper office space or to buy advertising in a

newspaper, is an unwise thing to do and a terrible way to do business Sustainable valuation of an enterprise involves – quality of the management

team, customer base, predictability of the revenue system and corporate governance.

Do not fall into the magic web woven by the ‘Roll up’ guys. Generally the first round of funding by a venture capital firm reflects the initial valuation of the company. The other combination of real factors that control the valuations are – differentiated business idea, having paying customers and retaining them, garnering process maturity, creating a product roadmap, good governance and overall reputation

A firm going public must ensure that they are able to manage investor expectations and have enormous obligations with regards to regulatory compliance.

PART IIISCALING YOUR

INTELLECT Choose your board members wisely

Identify the pros and cons before engaging with a consulting firm

THE WISE MEN AROUND THE TABLE

‘ A board member is not supposed to be a yes-man, a business development manager or, worse still a fixer. When chosen well and respected , a board is the conscience keeper and the voice of reason and caution, for leaders willing to listen’

The independent directors on board should be chosen for their managerial quality, personal leadership qualities, integrity, ability to ask critical questions, diversity and willingness to devote time needed o make key contributions to the functioning of the organization

A board's job is also select the CEO, guide and assist with the development of long term strategy of the company, review financial results and protect the interests of small stakeholders in the organization. But sometimes domain expertise is needed to make decisions.

The board represents wisdom, management team brings in the intellect and capacity to execute

The board is the guardian angel that balances the three legged stool of investor, customer and employee expectations

The board's acumen ensures whether the organization appears as a quintessential gliding swan rather than a dog furiously paddling away its way across water.

WHEN THE SHEPHERD NEEDS HELP

‘ When good consultants and good companies team up, unusual new value gets created. But remember, you will invariably get all you need from the consultant in the first six months of engagement. After that, whatever they may be, they are simply repeating themselves’

Identify areas where you lack capability internally and look for required capabilities to be brought in from outside to bring in best practices of leading players in the industry.

Lesson #1: Before approaching and signing on a consultant, speak to their other clients

Lesson #2: Be clear on your and their expectations Lesson #3: Settle the fees and terms of payment ahead of engaging them. Lesson #4: When you engage with a consultant, you are not obliged to go along with

them on everything they recommend Lesson #5: Set down clear terms on ending the association Lesson #6: Periodically assess the value of consultants brought in Lesson #7: Go for in-house knowledge transfer sessions Lesson #8: Do not build unrealistic expectations around consulting engagements

without first demonstrating personal willingness to change Lesson #9: respect is one thing, awe is another

PART IV

SCALING YOUR REPUTATION

Creating an image that truly represents ones values

BUILDING A BRAND

Image of vision, mission and objectives

Varies from brand to brand

Different from advertising

Takes you from where you are to where you want to go

MEDIA & COMMUNICATION

X factor during launch

Constant heating of events

Leaders constantly promoting theme of brand

Unbiased opinions on current events

Not leaving any comment or silence for misinterpretation

CORPORATE SOCIAL RESPONSIBILITY

Imbibed in the work culture

Should be in sync with current activities of organization

Profitability should not over ride the bigger benefits of society

PART V

SCALING YOUR PEOPLE

HIRING AND FIRING

When in doubt, don’t hire. When the situation demands, don’t tremble

to fire. Not solely responsibility of HR. Interviews, reference checks, motive of

candidate. Worker looks familiar but not be same for

employee. Fired employee may have delivered, file

lawsuit, greet organization coldly. Fire with good reason and with good faith.

BUOYANCY

A happy organization – reality or myth.

People leave their bosses not the organization.

Leaders should emerge when employees need and not perpetually.

Team involvement and performance reviews.

FASHION DESIGNER NUN

What got you here today wont take you where you want to go tomorrow.

Out of the box thinking.

Agile Methodology (parallel action)

Technology trauma an urban legend.

SQUARE PEGS AND ROUND HOLES

Specialization and generalization.Rotation by location and role.Understanding competencies ( Ninja, Coach, Thought leader and Rainmaker)Building leaders

GARDENING TOOLS

Every employee has to be treated like a flower in a garden.

Employee has to be fully nurtured and he when he leaves he has to be well developed.

Goals of organization and employee have to be in sync.

Leaders are born through the process and may leave the organization.

Those who were not aware may be better at handling responsibilities.

WHEN BRAHMA FAILS

Perpetual succession of business entity.

Pioneer cannot exist forever.

Delegation of authority to specialized personnel.

No matter how hard it is, there has to be succession of authority.

PART VISCALING AGAINST ADVERSITY

Planning for the tough times that a business or a company might have to face

RITES OF PASSAGE

‘When Extraordinary events overtake us. It is time to do the ordinary things extraordinarily well’

Not everything works out the way we want Pain is inevitable but suffering is optional 9/11 events and how Mindtree survived the phase During crisis communicated even more with leadership teams,

investors and suppliers Shared vision, common values and mutual trust Doing the things under your control with more efforts than you’ve

ever put in

BOLTS FROM THE BLUE

Just hang in there! Survival is important even before you think of growing!

Notes… Farmer and vegetable seller Understanding fundamentals of ecosystem change (the ‘new

normal’), frugal management, training in lean times, survival mindset

Whatever are the circumstances, organizational leader can not get overwhelmed

Must preserve faith in order to build an organization that will outlive them

OOPS..!

Author speaks of Philip Kotler's 4Ps (Product, Price, Place and Promotion). 4 controllable variables the company puts together to satisfy a target market

But 4Ps was a term coined by E. Jerome McCarthy in 1960

Some of the business models touched upon in the book could have been explained more comprehensively.

CONCLUSION

Invite the author Elephant-catcher mindset (scale, complexity, process and risk) Scaling business, intellect, reputation, people Applicable to any organization, whether it is a business or a

not-for-profit and even your own self (Me inc.) A must read book for want to be Entrepreneur or a person who

has started a small firm Develop a deep comprehension of C.K. Prahalad's concept of

‘next practices’