“SMART DECISION MAKING” with constraints and tradeoffs

PERSONALITY DEVELOPMENT-To help IIT/IIM/Engg/Management students to

improve Performance by upto 50% over their Colleagues

Sanjeev Bahadur (Lessons 1 to 10)

What it can do for you!

• Upto Ten Smart decisions only in a lifetime can make you a millionaire in India(in USD terms or INR eqvt)

• Ten Smart decisions by all VP’s/GM/CEO per year can make a company leapfrog into USD 1 billion plus category from USD 100 million per year turnover in 5-7 years!

• Learn to help everyone who has helped you in Life and every genuine deserving person!

Smart or Strategic Decisions

• “Strategy is about making choices, trade-off’s;it is about deliberately choosing to be different.”-Michael Porter.Eg :Smart Decisions produce a Reward to Risk ratio of 10:1 or more!

• They produce a force multiplier effect!.• They produce a money multiplier effect and

profitable cash flows for a number of years!• Examples: IPR’s, Exclusive Marketing Rights,

Invention, Mining Rights, First to Market ,Fuel efficient technologies ,Smart City Technology, Foreign Technology Tieup’s, Energy efficient technologies ,Joint Venture companies etc

As Times change-Think ahead of Time and Competition!

• “As Times change ,people change, businesses change ,strategies change, competition changes, business models and business plans change, processes change.

• Therefore ,Think ahead of Time, Think ahead of Competition .

• Give better value proposition to customers before competition does! Offer solutions.

• Do more Research .Do more Innovation” !• …….Sanjeev Bahadur

Henry Ford

Strategy- John Christopher

• “The secret of success in battle lies often not so much in the use of one's own strengths but in the exploitation of the other side's weaknesses.”

Smile, Personality and Experience!

Friction, confusion, underperformance results from lack of smart leadership!

Michael PorterGood Leaders need constructive agenda

• “Good Leaders need a positive agenda ,not just an agenda of dealing with crises.”

Good Leader!

1. A leader is best when people barely know he exists, when his work is done, his aim fulfilled, they will say: we did it ourselves. —Lao Tzu

Remember, there are many ways to decide and complete a task!

• Don’t argue but ask intelligent, sensible questions after careful listening with balanced unbiased thinking!

Gary Hamel-Leading the Revolution

• “... all too often, a successful new business model becomes the business model for companies not creative enough to invent their own.”

Theory PLUS PRACTICE

• THEORY PLUS PRACTICE (as highlighted by former Indian PM Late Rajeev Gandhi at IIT Delhi convocation)

Learning by Doing!

• Research of Late Dr Udai Pareek, leading HR Professor of IIM-Ahd and expert with 250 research papers published showed that the best way of learning or teaching is” Learning by Doing”

• He also drafted CMC Ltd HR Policies (the most modern till then!)

Management-Definition

• Management in Business Firms is the function that coordinates the energy of people to accomplish goals and objectives using available resources efficiently and effectively.

• Management comprises planning, organizing, staffing, leading or directing, making strategies and controlling an organization or NGO to accomplish business goals or stated objectives.

• Resourcing encompasses the deployment and optimization of human resources, financial resources( Equity ,Debt, Term Loans, Working Capital ),IPR’s, Technological resources, and natural resources.

Entrepreneurship!  

• The capacity and willingness to develop, organize and manage a business adventure along with accompanying risks in order to make a profit.

• One obvious example of entrepreneurship is starting of new profitable businesses.

• In economics, entrepreneurship combined with land, labour ,technology, natural resources,capital can produce sustainable profit.

• Entrepreneurial spirit is characterized by innovation and risk-taking, and is an essential part of a country’s ability to succeed in an ever changing and ever increasing competitive global marketplace.

• Anyone, even a school going child will tell you that 2+2=4,but an entrepreneur can think ahead of time and competition to produce synergy out of Rs 2 Cr (Term loan) and 2 Cr (Working Capital) to produce Rs 22 Cr turnover@ 20 % net margins per year!

Warren Buffet(World famous Investor)

• “It takes 20 years to build a reputation and five minutes to ruin it.If you think about that,you’ll do things differently.”

Warren Buffet

• “Rule No 1: Never lose money.

• Rule No 2: Never forget rule No.1”

Bill Gates (Owner of Microsoft)

• “Technology is just a tool .In terms of getting the kids working together and motivating them, the teacher is the most important.”

Bill Gates

• “It’s fine to celebrate success but it is more important to heed the lessons of failure”

• Ref:http://www.brainyquote.com/quotes/authors/b/bill_gates.html#WGxW7AZqhklxOlcF.99

Mahatma Gandhi

• “It is health that is real wealth and not pieces of gold and silver.”

EDUCATION.EXPERIENCE.EXPOSURE

• Try to learn to work independently• Visit Car/Motorcycle/Computer/Mobile• /Jewellry/FMCG showrooms/malls to understand

how products are displayed, sold, packed ,delivered with documentation, warranty service done and cash collected ,database created!

• How Customers/Prospects are classified.• Go to banks, check their policies, interest rates,

collateral, Letter of credits.• Check stock markets, mutual funds. Filter A grade• Know your Duties! Everyone knows his/her Rights!• Ask intelligent questions after listening/observing.

POSITIVE WINNING ATTITUDE

• Involve others in decision making according to needs, passion and priorities of your team members within the overall framework of Employers Mission, Vision, Quality policies, Customer service!

• Adjust, Adapt and Change yourself according to evolving situations. Be flexible.

SMILE.GUIDE.WIN

• India is a price sensitive market and branding may or may not yield additional price premium. Branding gets you recognition and recall in the Market place!

• See the examples of Vento, Skoda.• The combined sales of Luxury cars Mercedes,

Audi, BMW is 30,000 units per annum in India! Majority of this market is company to company(B2B sales).Compare this with over a million sold every year of other models/brands!

Try something new!

MISSION.VISION.QUALITY POLICY

• Majority of Fortune 1000 companies have these displayed on their websites

• Know your employer ,its policies ,do’s and don’ts, procedures ,technology,

• Management style, competition ,products,

• costing, taxes, duties, core competency , customer service quality before making any comment!

Mahatma Gandhi-Importance of Customers to Business!

C’s of Business

• CASH FLOWS FROM CONTRACTS

• CASH FLOWS FROM INVESTMENTS

• CUSTOMER SERVICE

• CONTACTS

• CREATIVE CONCEPTS/INNOVATION

• COMPETITION

• COMMUNICATION

4 P’s of Goods Marketing

• PRODUCT Specs.

• PLACE/Distribution channels

• PRICE incl taxes

• PROMOTION incl Advertising, Branding, Sales Promotion, Direct Mailers

Min Requirements of Smart Decision making

• A Person must have a” CALM,CONTROLLED,FOCUSSED MIND”

• Expanded Conciousness• Learn from others mistakes!• Balance between IQ and EQ!• Should be able to” Think” and “ Feel” from

others point of view!• Anticipate problems ,solve them beforehand!

Be futuristic and ahead of Competition.

DECISION MAKING with open unbiased mind

• DIAGNOSE BUSINESS PROBLEMS• FIND ALTERNATIVE SOLUTIONS• FIND BEST IMPLEMENTABLE SOLUTION• TEST MARKET THE PROCESS• If SUCCESSFUL EXPAND REACH or go to first

step.• Our decision making should be free from

Ego, Anger, Jealousy, Fear, Greed, Lust!….Lord Krishna in Bhagavad Gita”

BUSINESS GOALS

• INCREASE INCOME by 20% approx per annum• CUT COSTS by 5-10% per annum by improving

productivity ,e-procurement• Improve Quality of goods/services• Improve Customer Service standards• Improve Processes• Improve Applied Research, IPR’s, Innovation• Improve Products, Packaging• Monitor Rival Products and Services• Improve Branding, Digital Marketing ,website

THINK SMART.WORK SMART

• “Think Smart. Think Original. Think applied Research

• Think Innovation. Think IPR’s.• Think Customers .Think Customer Service. Think

Cash Flows.• Think Synergy. Think Profits and EPS.• Think Productivity. Think Quality.• Think Safety. Work Smarter than Competition. Feel

for others. Work Selflessly .Just 9 hours a day every Quarter !Monitor Collective or Team Performance…”

• It is a simple enjoyable task..Sanjeev Bahadur

How to Learn!

• OBSERVE• LISTEN• Thru Consultation with experienced people• THINK• Problem solving• BENCHMARK• INTERNET RESEARCH• MARKET RESEARCH• By asking intelligent Questions and listening to

those answers carefully.

Strength-Mahatma Gandhi

Oscar Wilde

• “Always forgive your enemies; nothing annoys them so much.”

Sleep with your dreams or Chase them!

TEAM SELECTION

• IDENTIFY PEOPLE WITH COMPETENCE, PASSION and Integrity

• GIVE THEM SIMPLE TASKS and GOALS• Give FREEDOM, Assign Resources and

discuss Goals.• GIVE CREDIT TO OTHERS FOR SUCCESS!• TAKE RESPONSIBILITY FOR FAILURE? And

Improve “ Process” checklist/Try again!• Do your own duties diligently

LEADERSHIP-Action and Example

REPUTATION

Warren Buffet-3 Qualities in a person!

Jack Welch-GE’s famous CEO

• “Good business leaders create a vision, articulate the vision ,passionately own the vision ,and relentlessly drive it to completion”.

Jack Welch

• “An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage”.

• Eg: An Engineering Company and FMCG are substantially different in terms of Processes, Goals, Standards, Quality ,Product specifications,

• Manpower ,Design tools, Marketing, Sales methodology, Customer service standards, Technology, R&D. Manpower from one environment may not be successful in the other!

Field Marshal Sam Manekshaw on Leadership and Decision making

• “What is the next thing you need for leadership? It is the ability to make up your mind to make a decision and accept full responsibility for that decision. Have you ever wondered why people do not make a decision? The answer is quite simple. It is because they lack professional competence, or they are worried that their decision may be wrong and they will have to carry the can.

• “ Ladies and Gentlemen, according to the law of averages, if you take ten decisions, five ought to be right. If you have professional knowledge and professional competence, nine will be right, and the one that might not be correct will probably be put right by a subordinate officer or a colleague.”

• But if you do not take a decision, you are doing something wrong. “An act of omission is much worse than an act of commission. An act of commission can be put right. An act of omission cannot.”

Field Marshal Sam Manekshaw

• “What are the attributes of leadership? The first, the primary, indeed the cardinal attribute of leadership is professional knowledge and professional competence.

• Now, you will agree with me that you cannot be born with professional knowledge and professional competence even if you are a child of Prime Minister, or the son of an industrialist, or the progeny of a Field Marshal.

• Professional knowledge and professional competence have to be acquired by hard work and by constant study. In this fast- moving technologically developing world, you can never acquire sufficient professional knowledge.”

Jack Welch-Strategy

• “A strategy is something like, an innovative new product; globalization, taking your products around the world ;be the low cost producer.

• A Strategy is something you can touch; you can motivate people with ;be number one and number two in every business.

• One can energise people around the message.

Jack Welch-Management

• “Management is all about managing in the short term while developing the plans for the long term.”

Presentations and Statistics!

Sun Tsu, The Art of War

• “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win”.

• “All warfare is based on deception. Hence, when we are able to attack, we must seem unable; when using our forces, we must appear inactive; when we are near, we must make the enemy believe we are far away; when far away, we must make them believe we are near.”

Mukesh Ambani,Chairman-RIL

• “I think that our fundamental belief is that for us, growth is a way of life and we have to grow at all times.

• “You have to manage money. Particularly with market economies .You may have a great product but if your bottom line goes bust, then that’s it.

SUCCESS

My best friend!

Good vs Bad system!

Your Presence vs Absence!

Build Dreams!

Dr APJ Abdul Kalam on “Beauty”!

Great Leaders!

Ratan Tata, Ex Chairman, Tata Group-Life’s ups and downs!

Work for people who believe in you!

Dreams!

Law of Selfless Karma!

Fools and Wise people!

Beware of Employees/Employers who?

• “What they say, they do not mean,

• What they mean, they do not say!”

Half Truths-Rumour mongering

Good Boss vs Bad Boss!

Be happy with the distance covered!

Timing!

Treat your Employees like best customers!

Great daughters and great Dads!

Tact!

Be open minded, be large hearted!

Trust the Right people!

Swami Vivekananda-3 Rules

Don’t pre- judge others!

Relationships!

20% Outstanding ,balance 80% are average !Here Management is reqd• Only 20% people are

trustworthy ,loyal ,honest and competent• Only 20% people are A grade performers• Only 20% investments are A Grade• Only 20% decisions are A Grade/Futuristic

and produce profitable cash flows• Management is the art of managing the

balance 80% to produce A grade performance through Innovation, Motivation,Appreciation and Incentives!

Truth and Honesty!

Freedom!

Possibilities, Probability and Certainity !Thomas Edison

Learn to give !Share

Be original, innovative after doing Research!

Your work is your introduction!

Money!

Patience and Attitude!

Leaders create more leaders!

Good Communication skills!

Bill Gates

•“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency.

• The second is that automation applied to an inefficient operation will magnify the inefficiency.”

0

10

20

30

40

50

60

70

80

90

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Mahatma Gandhi

• Power is of two kinds:

• One is obtained by the fear of punishment and the other by acts of love.

• Power based on love is a thousand times more effective and permanent then the one derived from fear of punishment.

Steve Jobs-American entrepreneur, marketer, and

inventor, who was the co-founder, Chairman, and CEO of Apple Inc.

• Innovation distinguishes between a leader and a follower.

William Pollard-Change

• “ Without change there is no innovation,creativity,or incentive for improvement.

• Those who initiate change will have a better opportunity to manage the change that is inevitable.”

Bruce Lee-Practice and Perfection

Trust your core competencies!

Six Ethics of Life!

David Ogilvy

Warren Buffet

• When a management with a reputation tackles a business with a reputation for bad economics,it is the reputation of the business that remains intact.

Bill Gates

• “Everyone needs a coach .It does not matter whether you are a basketball player, a tennis player ,a gymnast or a bridge player.”

Hiring!

Difference between School and Life!

• Difference between “ school” and “ life”

• In school, you’re taught a lesson and then given a test.

• In Life you are given a test that teaches you a lesson.!

Retain your best performers!

Multiple ways of solving problems!

Educate people to be Happy!

Timing and need!

Today’s Corporate World!

Always verify facts, figures and cross check!

Boss and Leader!

Right Boss vs Right job!

Problems and Solutions!

How blessed you are!

Conquer Fear-Nelson Mandela

Innovation Process

Social Media

David Ogilvy-Ad Guru!

HP-

Forgiveness!

Barack Obama-Reservations and Talented Indians

Character and Reputation!

Take care of your employees and team!

Brand IdentityBrand ExtensionBrand Hierarchy

Prof Sanjeev Bahadur

Lakshmi Mittal

• This is a learning in the business life that first of all you need to have commitment, dedication and passion for what you are doing.”

Savings and Investments

• Save 20% per annum from your takehome salary.

• Invest in appreciating assets after seeing their 10 year cycles.

• Don’t BUY fancy gadgets, fancy brands at fancy prices. For eg a mobile needs replacement in 3 years, computer needs to be replaced every 4 years and Cars every 6 years.Concentrate on Needs and not Desires!

• Remember that Inflation in India is 10% per annum so therefore your investments should yield 15%-18% per annum net after expenses.

Cut Costs

• Don’t waste:• Time• Electricity• Internet• Water• Mobile• Use fuel efficient vehicles• Reduce cost of capital• Paper• Don’t Reinvent the wheel!• But Reward and appreciate good performance!

Organization Politics

• “The pursuit of individual agendas and self interest in an organization without regard to their effect on the organizations efforts to achieve its goals.”

• 50% of Indian B2B Organizations suffer from this malaise and consequent high attrition!

• Avoid Groupism• Don’t indulge in Loose talk/Controversies/Rumor

mongering• Communicate precisely• Maintain email records and delete needless mails every

week. Keep trusted people around you. Keep changing passwords every fortnight!

Qualities of a good Manager• Good Organizing skills• Good Relationship Management skills• Efficient Time Management-Short meetings• Good Communication skills ( both verbal/in writing)• Futuristic/Smart decision making capability• Good Team Management skills and Leadership produces A grade Team

Performance!• Thinking ahead of Time and Competition• Good Reporting/Documentation skills• Managing Priorities Quarterwise /Weekly basis• Think of Team’s growth and training• Be graceful, dignified, energetic and charming• Open ,unbiased mind with positive winning attitude• Managing Cash and Concepts• Good techno commercial skills• Benchmarking with best five fortune 500 companies in that sector.

Physical, Mental and Spiritual fitness! (Most important slide!)

• Physical Fitness- Eat what is necessary• Controlled Diet, Less salt,less sugar ,less fried stuff,no

hard drink, less soft drink,Pref Fruit and Vegetables• Mental Fitness-Don’t worry- Let’s control our desires• Spiritual Fitness-”Action is better than inaction”—

Lord Krishna.• Thoughts and habits determine our destiny. Selfless

action is better still!• “The more you give, the more you get-Swami

Vivekanada”• “Sense Pleasures lead to suffering-Guru

Paramhansa Yogananda”

A Company has many departments!

• Marketing, Sales ,Advtg, PR, Customer Service,Dealers(B2B& B2C)Contracts,Rewards/Incentives

• Legal Department (Company Law, Litigation)• Finance Department (Banks, Term loans, Cash

Flows,Investments ,Income Tax, Costing, Pricing,Billing,M&A)• MIS/IT/Telecom (Website, SAP, Oracle, Internet, Video

Conferencing, Hardware Networking, Business Enquiries)• Applied Research, Development, CAD/CAM and Innovation• Procurement and Supply Chain Management (SCM)• Human Resources Development (Hiring, Trg/Development,

Appraisals ,Policies)• Maintenance Department (Repairs and Maintenance)• Manufacturing/Quality Control/Testing• Shipping/Logistics/Administration• All report to CEO/MD thru respective GM’s or Vice President ‘s

Trading, Manufacturing, Services

• In Trading Business, margins are 5-10%

• In Manufacturing ,Margins are 10-15%

• In Services sector, Margins are 20%.

• “ To be a successful SME business ,critical mass is Rs 20 crores @ 10% Margins, annual turnover in Goods and Rs 10 crores in Services@20% margins”

Sri Sri Paramhansa Yogananda

• “LIVE EACH PRESENT MOMENT COMPLETELY AND THE FUTURE WILL TAKE CARE OF ITSELF.

• FULLY ENJOY THE WONDER AND BEAUTY OF EACH INSTANT”

Thank you for reading, listening !

• Any Queries please!

• Lessons 11-20 of Personality Development shall deal with Job Description of different positions/Problems ,Challenges ,Solutions and Innovation possibilities!

Bee and Butterfly (One conservesenergy other wastes energy!)

• ( Left one conservesenergy ,the other on your right flits, wastes energy !)Think Smart .Work Smart .Live Smart.

www.public-domain-image.com