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Mr.V.Balaraman
Director, Polaris Software Lab Limited
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Topic: “People first: Making sustainable
productivity a corporate companion” |
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20.06.2003 |
Mr.
Rohit Modi, CEO,
Tamil Nadu Road Development Company Ltd. |
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"NO MORE FREE LUNCHES - The hard truths
in infrastructural development"
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08.04.2003 |
| Mr.
S. B. Bhoje, Director, Indira Gandhi Centre for Atomic
Research, Kalpakkam |
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"Fission or Fusion, Atomic Power is the
future." |
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27.02.2003 |
| Mr.
S. Krishnamoorthy, General Manager, Commercial, Southern
Region, Indian Airlines Ltd. |
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"Indian Airlines : YESTERDAY, TODAY AND
TOMORROW" |
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19.02.2003 |
Mr. George Abraham,
Chairman, World Blind Cricket Council |
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"Passion, Enthusiasm and Skill" |
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10.012.02 |
Mr.
Kumar Ramanathan,
Vice President, Sales & Marketing of Hutch |
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"Breaking into a competitive market - Media
and PR strategies" |
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20.10.2002 |
Ms.
Ranjana Kumar,
Chairperson & Managing
Director, Indian Bank |
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"Public Sector Banks - The Road Ahead" |
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09.07.2002 |
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Speaker: Mr.V.Balaraman
Director, Polaris Software Lab Limited
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Topic: “People first: Making sustainable
productivity a corporate companion” |
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20.06.2003 |
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Mr. V. Balaraman, Director,
Polaris Software Labs Limited |
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“People first: Making
sustainable productivity a corporate companion”
Focus on getting the best from people
V. Balaraman, Director, Polaris Software Labs Ltd.,
says people must be made to realise their own potential by relating
to them at an emotional and spiritual level.
It was a few years ago in Hyderabad while visiting a
friend for dinner that
V. Balaraman, director, Polaris Software Labs Ltd., met a
Brahmakumari, a very bright, educated lady. "What do
you look for in people?" she asked him. Well, educational
qualifications, experience, skills and perhaps references,
he said. “Do you look at the emotional side of a person,
the emotional baggage that he or she brings along? Emotions
affect a person's attitude and behaviour,” the Brahmakumari
explained.
What she said struck Balaraman deeply. Today, managing human
development and helping to positively direct energies is a
passion for him. Why do companies not get the best out of
people? Why do human beings not do the best they can? Should
people continue to use only 30-50 per cent of their abilities?
Are we doing justice? Shouldn't we enable more human beings
to work to their potential? Would nature have brought us here
without a purpose? These were some of the questions Balaraman,
a former managing director of Ponds India Ltd and director-exports,
Hindustan Lever, posed to the PRSI audience.
Corporate chieftains turn to people for performance, yet
good performance is seldom recognised and credit is not given
to the employee. By recognising and unleashing the innate
abilities of employees and matching their skills to positions,
great organisations look inward. The environment has to support
people and rewards have to be meaningful in order to move
forward, Balaraman pointed out. He stressed that people must
be made to realise their own potential by relating to them
at an emotional and spiritual level and not merely at the
rational and physical levels, adding, "Rather than focussing
on managing weaknesses, never lose sight of a person’s
strengths. Nurture his social and performance needs."
Do we question established wisdom? We never question the
expectations society imposes on us. Be passionate and dedicated
to your work so that problems cease to bother you, Balaraman
said, exhorting the audience to think differently and to innovate
to sustain. “There is little doubt that people want
to be able to come to a place of work where they feel loved,
appreciated and cared for. Each person loves to hear the words,
'Thank you, you make a difference'. That is how the human
mind works. You become what you believe in”.
Earlier, PRSI members fondly remembered advertising stalwart
R.K. Swamy, as well as his association with the PRSI, Chennai
Chapter. R.K. Swamy, who passed away recently, had started
RK Swamy Advertising when he was 50. More than anything, it
was his simplicity that endeared him to many. He served with
distinction as president and chairman of most advertising
bodies.
What Motivates People?
Alignment
People are energised if they know where they're going. Why
they're and how they'll get there.
Synergy
People are energised in environments that support them to
be open, authentic and collaborative.
Growth
People are energised when there is encouragement and opportunity
to grow both
personally and professionally.
Fulfillment
People are energised by rewards that acknowledge their efforts
at all levels that have meaning for them.
During his presentation, V. Balaraman spoke about four sources
of energy - alignment, synergy, growth and fulfilment.
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Speaker: Mr. Rohit Modi,
CEO,
Tamil Nadu Road Development Company Ltd. |
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"NO MORE FREE LUNCHES - The hard truths
in infrastructural development"
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08.04.2003 |
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| Audience paying thro' their silence to hear Mr. Rohit
Modi's hard truths. |
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"NO MORE FREE LUNCHES - The
hard truths in infrastructural development"
No more free lunches, please!
Rohit Modi, CEO, Tamil Nadu Road Development Company Ltd., speaks
at a
PRSI meeting
We have always been driven by an urge to travel. The invention
of the wheel brought a solution and a problem. Although speed
was possible, even surfaces became necessities. From kutcha
roads to today's express highways, we have indeed travelled
a long way. Transportation has witnessed a revolution, with
speed being paramount. However, roads are not just about speed
and surfaces. They are also about safety, security and comfort.
The 113 km long East Coast Road (ECR) is a first for the
country in many ways. The Rs. 61-crore project was entrusted
in February 2000 to the Tamil Nadu Road Development Company
Limited (TNRDC), a 50:50 joint venture between Infrastructure
Leasing & Financial Services and the Tamil Nadu Industrial
Development Corporation (TIDCO). Negotiations were over in
ten months and the concession agreement for developing the
project on a rehabilitate-improve-maintain-operate-transfer
(RIMOT) basis, the first instance of an integrated improvement-cum-maintenance
contract, was signed in December the same year. The project
completed in record time and commercial operations commenced
in March 2002.
Special features of the ECR include reflective road studs
along the entire stretch for illuminated guiding, traffic
guideposts and delineators at regular intervals, crash barriers
and chevron signs along the curves and extensive use of diamond-grade
signage for easy information visibility. Emergency call boxes
every three km are connected to control centres. A 24-hour
accident relief and trauma care service is available along
the entire stretch. Elegant passenger shelters, bus bays and
roadside landscaping help make the ECR look truly world class.
"ECR toll rates depend on the frequency and mode of
travel as well as the destination. For example, for a journey
from Chennai to Mahabalipuram, a toll ofRs 24 is charged for
a car; it isRs 47 for Chennai-Pondicherry. Toll rates, linked
to savings in vehicle operating costs, fuel and time are levied
on cars, LCVs, trucks, buses and multi-axle vehicles. The
daily collection, on an average, isRs 1.74 lakh, just 50 per
cent of the revenue projected; after sand-quarrying was banned,
fewer lorries ply the route," said Rohit Modi, Chief
Executive Officer, TNRDC, while addressing members of the
Public Relations Society of India Chennai Chapter.
Depending on TNRDC's tolling strategy, Modi said that the
toll levied on vehicles using the ECR route for Chennai-Pondicherry
worked out to just 40 paise a kilometre. "Exemptions
have been granted to local residents, the Metropolitan Transport
Corporation has been granted a 83 per cent discount, and with
increase in traffic the toll rates may come down," he
said.
"The ECR is not just about discovering the pleasure
of driving. It sets a new benchmark for highways in the country
and represents a new learning experience in project management.
We are well past the socialist era where the right price was
equated to what the customer was willing to pay. Today, the
user cannot demand a service if he is not willing to pay (user
charges) for it. World-class facilities come with world-class
prices, though in this case the toll charged is not exorbitant
at all. Alternately, when you are getting something free,
you cannot demand; you are a 'helpless recipient'. In any
case, if you have no problem paying for petrol, then why do
you hesitate to pay a toll?" he asked.
According to the Indian Tolls Act 1851, tolls were initially
levied if the project cost exceeded Rs. 25,000, that mark
was later raised toRs 2 lakhs and subsequently to Rs. one
crore. The common man's perception of public provision for
infrastructure - why charge me separately when I already pay
taxes imposed by the government? - should change, stressed
Modi. "Poor planning and project management, hesitation
to use modern technology, inadequate and inefficient maintenance,
lack of incentive to break from the past, and time and cost
overruns have been characteristic of infrastructure development
in the country. It is time to break new ground," he remarked,
exhorting the PR fraternity to carry his message forward.
Pointing out that low service levels and user dissatisfaction
are the real issues that the public should address, Modi said
that in the past the sovereign (State) was unwilling to levy
or raise new taxes. It was considered a moral hazard to increase
tariff to cover inefficiency. While the public perceived the
private sector as maximising returns at minimum risk, the
public sector was seen as providing all services at no cost.
"There was a 'free lunch' element in both cases and that
element has to now got to go away for good," he emphasised,
adding, "That, indeed, is the hard truth in infrastructure
development."
Modi went on to say that it was not the government that refrained
from levying charges because people were not willing to pay.
In fact, in a recent survey commissioned by the Confederation
of Indian Industry, 70-80 per cent of the respondents had
expressed their willingness to pay for better services. "The
notion that the private sector is only concerned about generating
profit, that its services come at an exorbitant price, is
ill founded. Several times, the IDC (interest during construction)
element or preoperative cost is not factored into the total
cost of a project, especially core projects with a long gestation
period such as the Calcutta Metro. Also, there is a need to
provide for contingencies. The insurance cost, in terms of
premium, for the ECR works out to Rs. 20 lakh a year,"
Modi stated.
Although essentials such as water, electricity and communication
facilities can be bought (a captive power plant can be set
up, for example), roads cannot be purchased. And, therefore,
there is the need for private initiative, with its ability
to leverage public finance, optimum utilisation of resources,
high service levels and timeliness, he told the audience.
"In today's global economy, India has access to international
capital flows. More than Rs. 20 billion comes in as foreign
remittances every year, ten times more than the amount sanctioned
by the World Bank for developmental projects in the country.
Part of the international capital that comes in must be used
for infrastructure funding," he said.
"Good roads help create wealth. The U.S.A. is a rich
economy partly because the country has excellent roads,"
Modi said, pointing out that the U.S. Federal Highway Trust
Fund's annual accretions amounted to $ 19 billion, with a
$ 28 billion accumulated surplus. "There is no doubt
that if Tamil Nadu is to become the No. 1 destination, for
tourism or business, excellent roads will make a difference,"
he added.
Modi, however, agreed that appropriate tolling is essential.
"Levying a toll on vehicles using the Anna flyover, for
example, is impractical," he said. He cited the examples
of Virginia (U.S.A.) where there is no tolling on 'heavy occupancy
lanes', and Singapore where a system of dynamic tolling (toll
varies according to different time slots) is followed. He
mentioned economic viability of a project as another important
criteria. He wondered whether the Mumbai-Pune six-lane expressway
built at a cost of
Rs. 1,800 crore, with an interest burden of Rs. 200 crore
was viable.
In partnership with the Tamil Nadu Government, Ministry of
Road Transport and Highways, and the National Highways Authority
of India, TNRDC plans to build more world-class highways that
will be a pleasure to use and a destination in themselves.
Projects in the pipeline include operation, maintenance and
improvement of the Chennai bypass and the Dindigul-Coimbatore
(NH-209) and Salem-Ulundurpet (NH-61) highways.
Modi seemed keen on putting in place a PR strategy to educate,
create awareness and mould public opinion towards an optimum
tolling mechanism. "The public must understand that the
onus is on us, the developer, to build and maintain roads
as much as the user has an obligation to pay charges. Of course,
finally, the user will have to decide whether the country
needs to move forward or not," he concluded. |
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| Speaker: Mr. S. B. Bhoje,
Director, Indira Gandhi Centre for Atomic Research, Kalpakkam |
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"Fission or Fusion, Atomic Power is the
future." |
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27.02.2003 |
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| Mr.S.B.Bhoje on Nuclear Energy - Fission or Fusion,
Atomic Power is the future. |
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"Fission or
Fusion, Atomic Power is the future."
The Prototype Fast Breeder Reactor (PFBR) was approved by the
Planning Commission on 27 January, while it was approved by
the Finance Ministry on 30th. And the following day came the
approval from the Ministry of Environment and Forests. If these
were not enough to make S. B. Bhoje, Director, Indira Gandhi
Centre for Atomic Research, Kalpakkam, happy, there was another
feather added to his cap on 26, January when Padma Shri award
for him was announced, though he did not seem to be affected
by it much, because according to him, "fast breeder is
my baby; I have been working on it from day one". What
would make him really happy is the final go-ahead from the Cabinet
Committee on Economic Affairs.
Addressing the members of the PRSI, Chennai Chapter, Bhoje
said that people should be made aware of the positive side
of the nuclear technology, as in general it is perceived as
something destructive and sinister. Accidents like that of
Chernobyl, where the nuclear engineering rules were not followed
properly, arouse a sense of fear in people's mind. In such
instances public relations can play a role, he felt. People
should be informed about the advantages of nuclear energy,
such as the application of radioisotopes in medical therapy
and biological research, in generation of electricity and
hydrogen.
Bhoje declared, "it is absolutely wrong to think that
nuclear reactors are dangerous places. Even in case of an
emergency, a leak, for example, all plants are so designed
that radioactivity remains confined to the reactor. With advancement
in technology, even the smallest dose of radioactivity can
be detected and the accident probability is such that if there
are 1000 nuclear reactors operating over a 1000 year span,
there may be only one accident".
Hailing from Kolhapur district of Maharashtra, Bhoje graduated
in Mechanical Engineering at the Poona University; he then
joined the Bhaba Atomic Research Centre in 1966 and began
his career designing the experimental fast breeder reactor.
As a member of the task force formed to design the fast breeder
test reactor (FBTR) he went on deputation to the Centre d'Etudes
Nulceare Cadarache, France. Now he is known internationally
for having designed and commissioned the FBTR in Kalpakkam,
an achievement to be forever cherished by him.
Right now though Bhoje is happy to have been made responsible
for designing a 500 MW PFBR, construction of which would begin
soon at Kalpakkam. This is the first of a series of fast breeder
reactors to be constructed in the country. Bhoje said with
justifiable pride, "thirty years ago our first nuclear
plant, the Tarapore Atomic Power Station, was set up with
US assistance. We can now be proud of the fact that as far
as nuclear power generation is concerned, be it construction
of reactors, operation and maintenance of the plant or waste
management, India is the only country in the developing world
with such capability". In his opinion nuclear energy
alone can meet India's long term power requirements.
We have got so used to having electricity in our day-to-day
life that we cannot be without power even for a short while;
generating sufficient power is absolutely essential. In Bhoje's
opinion our energy demand is quite large at 400-500 GW (gigawatt
electricity) while our resources are limited. Besides only
about 200 billion tonnes of coal is available, which has to
be used prudently to last for at least 60-70 years. Burning
of coal results in sulphur dioxide and carbon emission, acid
rain and destruction of crops. Importing oil at aboutRs 80,000
crores a year, we drain our foreign exchange reserves also.
Therefore a safe, reliable and economical resource needs to
be identified and there enters nuclear energy; though a nuclear
power plant is 20% costlier than a coal-fed plant, long term
costs are low; if we can exploit our huge reserves of thorium
and uranium properly, they could last us a few hundred years.
Mr Bhoje said that, whereas in France 75-80% of power generation
is from nuclear energy, India's progress is rather slow in
this area; only 3.5% is generated from nuclear energy, while
the world average stands at 20%. India's per capita energy
consumption is only 500 kWh, while in North America it is
12,000 kWh per annum and in Western Europe 5,500 kWh. According
to him the scenario would soon change as everyone aspired
for a better standard of living; that is why sustained power
supply is so very important for future generations. |
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| Speaker: Mr. S. Krishnamoorthy,
General Manager, Commercial, Southern Region, Indian Airlines
Ltd. |
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"Indian Airlines : YESTERDAY, TODAY AND
TOMORROW" |
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19.02.2003 |
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| Mr.S.Krishnamurthy of Indian Airlines . Sky is not the
limit indeed! |
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"Indian Airlines : YESTERDAY,
TODAY AND TOMORROW"
The personal growth of a person is attached to the personal
growth of his career', said Mr. S. Krishnamoorthy, General Manager,
Commercial, Southern Region, Indian Airlines Ltd, while addressing
the members of the PRSI Chennai chapter on "Indian Airlines
Yesterday, Today and Tomorrow" on 19th Feb 2003.
Starting his career as a PR person in Indian Airlines in
1968, Mr. Krishnamoorthy was neither told by Indian Airlines,
what exactly PR was all about, nor were any degrees or diplomas
available as it is today. So all the lessons were learnt in
the hard way. Even though his stint in Public Relations was
only for 4 years,
Mr. Krishnamoorthy considered himself very fortunate to have
spent a few days with Mr. Sam Black, the Father of PR, traveling
right thro with him and attending all the seminars.
Way back in the year 1953, there were roughly 15 private
airline operators in India.
8 of them were clubbed together and Indian Airlines was formed
by an Act of Parliament. Till 1994, the Airlines remained
a statutory body and in '94, it was registered as a company
under the Indian Companies Act. In the early days Chennai
Airport was only a small shed and there was a small building
as large as a cine actor's bungalow of today and the Aircraft
used to land and people used to walkup and down as there was
no security and they could go right up to the stepladder,
and see their people off. "From that day", said
Mr. Krishnamoorthy, "we've come to a stage, where the
airport is a maze and the growth of aviation industry in India
has been possible because Indian Airlines is in the hands
of the Government of India". In the year 1953, the 8
private airlines, which were not even accounting the money
they were collecting and were not answering the share holders,
were all merged. When it was taken over, Indian Airlines had
99 different types of air crafts, in which 74 were Dakotas,
which was a 21 seater and a war aeroplane, meant to transport
soldiers from one place to another. The airfields were also
like the relics of the war. "When I was posted in Madurai
in 1968, I saw a small building of 5000 Sq ft almost like
a taxi stand and that was the Madurai Airport" mused
Mr. Krishnamoorthy.
Indian Airlines functioned with the twin aims of connectivity
and air mindedness. Remotest parts of the country were connected.
Air service was operated from Kowai to Kamalpur for a fare
ofRs6/-. Thus Indian Airlines linked the different regions
and this provided a fillip to the industry resulting in the
overall growth of the country. The year 1953 saw Indian Airlines
taking a decision to modernize the fleet. Modernization those
days meant going in for turbo propeller aircraft, which was
the best available. Later on Indian Airlines started looking
at Caravel,
Boeing, Airbus etc. In 1967 Indian Airlines went in for a
Caravel aircraft. In 1971 Boeings were purchased, and 1976
Indian Airlines bought a few the wide-bodied Airbus 300 and
it was the first in Asia to start operating it. Air Bus 300
was lucky for Indian Airlines and it continues to be so. It
was the first ever aeroplane capable of carrying 245 passengers
and 10 tonnes of cargo.
After developing the market, Indian Airlines became complacent
and it being a Public Sector also got set in the minds of
the people. There were nearly 13 or 14 trade unions in Indian
Airlines leading to industrial relations problems too. These
problems resulted in dislocation of services. In spite of
all these, Indian Airlines bought Airbus 320 in 1989 and it
was pressed into service in 1990, according to Mr. Krishnamoorthy.
He said Airbus 320 consumed less fuel, it was a medium sized
plane and the most convenient aircraft which could carry 130
passengers and could land in smaller airfields. An accident
involving this Aircraft in Bangalore, resulted in the withdrawal
of all the 90 brand new aircrafts, which were earlier pressed
in to services.
He also added that the grounding of Airbus 320 was the beginning
of all the problems. With only 12 Airbus 300, which could
not land on all the air fields, Indian Airlines was not able
to meet the day to day requirements of passengers and this
prompted Indian Airlines to take some firm decisions. It gave
birth to an open sky policy and led to the entrance of private
operators in to the field dominated by Indian Airlines.
These private operators, according to him, had everything
available on a silver platter. They did not have to do market
survey or market research. They knew what the routes were
and to top it some of the Indian Airlines staff joined their
work force and even the ideas were imported. Even today when
Indian Airlines operate more than the required percentage
of flights on certain routes due to social obligation, private
operators look at only the profitability angle on these routes.
They only put in services were there is heavy demand. They
always have a choice whereas Indian Airlines do not.
The good thing about the competition, said Mr. Krishnamoorthy,
was that it brought better services and people in Indian Airlines
were awakened. If the employees had to retain their jobs there
had to be a change in the attitude and perception of the people,
style of management and marketing. The recovery process was
very quick when compared to the speed in which Indian Airlines
was going down. Between 1994-95 Indian Airlines was able to
recover and stabilize 50-50 . Today Jet Airways and Sahara
Airways are the two, which are steady in the market, out of
which Jet Airways is equivalent in size to Indian Airlines.
The negative effect of competition, he said, was neither of
the airlines could maintain the fare levels. They had to drop
it by offering some kind of discounts. The coming in of private
airlines was a real blessing because the air traffic had nearly
doubled and Indian Airlines was not ready to meet this additional
traffic.
Indian Airlines has also made plans for purchasing 43 aircrafts
at an investment of Rs.10053 crores and this money has to
be managed with in, barring a small advance which the Government
of India would give. But this is only an idea floated by the
Indian Airlines board. It has to be passed by the Ministry
of Civil Aviation, the Investment Board and the Finance Ministry;
this process is on, he said. Meanwhile there is also a possibility
of Indian Airlines shares being disinvested, which of course
would take some more time perhaps ending up in a joint venture.
Mr. Krishnamoorthy added that the spirit of competition nurtured
the growth of private airline which could be of any number
but there had to exist a Government owned airlines to provide
continuous service. People should not forget that Indian Airlines
had always been a social-minded airlines, not forgetting the
services rendered during IPKF operations, earth quakes in
Gujarat etc.
He concluded his speech by saying that the future of Indian
Airlines was not to concentrate in India alone. Indian Airlines
is doing extremely well in the Middle East and South East
Asia, Singapore, Kualalampur, and Bangkok .Indian Airlines
is connected to almost all the air ports in South India except
Madurai, Thirupati, and Vizag and all other airport are now
international Airports. Indian Airlines is also concentrating
on improving and increasing the number of passengers by introducing
newer schemes and packages. Indian Airlines is doing well
on the service front too and with 48 new aeroplanes the future
of Indian Airlines is very bright. |
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Mr. George Abraham,
Chairman, World Blind Cricket Council |
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"Passion, Enthusiasm and Skill" |
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10.12.2002 |
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| An eye-opening speech by Mr.George Abraham |
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"Passion, Enthusiasm and
Skill"
When the entire Chennai city was swinging with excitement about
the II World Cup Cricket for the Blind, PRSI Chennai chapter,
had the privilege of the World Blind Cricket Council Chairman,
Mr. George Abraham addressing the forum members on "PR
in the field of disabled sports" on 10th Dec 2002.
A dreamer, George Abraham had his first encounter with cricket
when he was in school, way back in the year 1969, when Graham
Dowling came with the New Zealand team to play in India and
E.A.S. Prasanna and Bishen Singh Bedi ran through the Kiwis
in Bombay. George fell in love with this game and he had a
passion and a dream to become a fast bowler like Dennis Lillee
and Jeff Thomson. However this passion was nipped in the bud
and he realized that he couldn't follow cricket as a career.
While working for an advertising agency Advertising and Sales
Promotion Company (ASP), Mr. George Abraham, staying at the
guest house of National Institute of Visually Handicapped,
happened to watch visually impaired boys playing cricket with
a lot of "Passion, enthusiasm and skill". They were
using a ball that rattled. It was then that George Abraham
realized that "Cricket could give the blind an avenue
to evolve, as passionate and purposeful human beings".
His faith in the group of human beings who could learn a lot
about life by playing this game was strengthened by one of
his meetings with Conrad Hunte, the West Indies player,
who had taught him the 5 mantras of life, which George calls
as the 5 D's.
- The ability to dream
- The desire to fulfill the dreams
- The discipline required
- The dedication
- The determination to achieve the dream
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The dream of organizing a World Cup originated when George realized
the need for a platform to demonstrate the ability, talent and
the potential of the visually impaired, where the focus would
be on 'Ability and not on Disability'. He feels that it is a
sort of education for the people to watch what the blind can
do rather than what they cannot do, and he felt that this game
should be taken to the international stage too. With these thoughts
the National Cricket Tournaments were organized in the years
1990, 1991, 1992 and 1993. The 1994 tournament saw several teams
participating and the country had to be divided into 4 zones
and the tournaments held at zonal and national levels. Says
Mr. George, "to get press coverage was almost impossible";
sports editors and various people in the print media would say,
good cause and noble cause, but "there was no flow of print".
In 1993, the Samskriti foundation decided that George Abraham
would be one of the 5 people honoured by them and he decided
that 5 years down the line, the first World Cup for the Blind
would be organized in India. It was at this stage when
PR and cricket for the blind had their real encounter. People
wanted to know what this cricket for the blind was all about
and George started getting calls and this he says was "a
unique experience". The relationship, which began in
1993, moved on and in 1994 DD covered the nationals live and
they continue to do so. Finally the World Cup happened in
1998. Cricket according to Mr. George Abraham is an avenue
for 'Rehabilitation' and World Cup is an opportunity to demonstrate
the ability and it is all about marketing ability.
The first World Cup was a resounding media success and so
was the II World Cup held in Chennai which received tremendous
media coverage. The media coming forward in large numbers
to support, according to George is because of the 3 P's.
- The passion with which the game was promoted over
the years and transferred on to the Media Community.
- Personal rapport, which needs to be established
with the media. The media people, according to Mr.
George Abraham, are a tremendous reservoir of support,
and they need to be reached out individually, even though
it might be a painstaking task.
- The third P is persistence. This coupled with commitment
and credibility can get converted in to a positive
relationship with the media.
Sponsorship requires ability, while charity supports disability
Right from 1990, Mr. George Abraham has been trying to shift
the scenario from a philosophy of kindness to one of recognizing
ability. Charity, according to him, demeans or belittles the
person who is being supported. He scoffs at the idea when
people tell him that he is doing a noble act, because he feels
that just by opening a door, which is rightfully theirs, is
not a noble act, as every blind Indian is a full fledged citizen
of this country, and an avenue is being provided to play and
enjoy the sport they want to play.
A visit to a blind school for the first time in 1989 by Mr.
George Abraham shook him 'out of his bones'. It was then he
decided that he was going to spend his life with visually
impaired people. Being an advertising man himself he is able
to establish a link between advertising and education; he
says that advertising is all about marketing dreams and education
is also about promoting dreams and the game of Cricket is
being used to sell and promote dreams.
He concluded the speech by saying that being a hero or a
zero makes no difference. But to be a genuine member of the
society is what counts and daring the blind to dream about
big things in life and in the process making them achievers
and contributors is what is required. If cricket be the pool
of life, he said, let us continue playing.
Do you know that the rules for cricket for the blind are
more or less like normal cricket except :
- The bowling is under arms.
- The middle of the pitch is marked and ball has to
bounce once before the middle of pitch so that the
ball is not bowled on the head causing injury.
- The boundaries are slightly smaller.
- The Ball is made of plastic and the ball bearings
inside rattle when it moves. The rattling sound can
be recognized with practice, tremendous
concentration and hand-ear co-ordination.
- Wickets are made of metal because in the early days
it was found that when the ball hit the bat a lot
of blind cricketers would appeal because the sound of hitting
the wood - bat or wicket - would be very similar and so
wickets had to
be distinctly different in terms of audio signals.
- The wickets are screwed together because the bowlers
feel the wicket every time they bowl, to get an orientation.
The III World Cup for the blind might be held in England
or Australia. |
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Mr.Siddharth Sharma - supporting the cause of the specially
abled in sports. |
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Siddharth Sharma at the age of
25 lost his eyesight in a motorcycle accident and from a senior
merchandiser in a Garment Export Company he stepped in to
Public Relations by sheer accident, which later on became
his career.
Way back in the year 1998 before the International world
cup for the blind, a phone call to Mr. George Abraham enquiring
about the World cup because of his keen interest in the sport
made him being accepted "as a part of their World Cup
Managing Committee" and George entrusted the responsibility
of talking to the media to Siddharth. Two large press conferences
in Delhi were held. It was during this time that World Cricket
Council also decided to have a PR agency to help out with
the World Cup for the Blind and also to have their messages
spread across the country. 'Connections' was the agency, which
was asked to give a presentation in this regard and this contact
resulted in Siddharth taking up an assignment there and heading
the business development in operation. Siddharth was a part
of this for nearly four years when he decided to start his
own agency for the sake of upgrading and sharpening his skills.
Thus was born the Foundation PR, which partnered with a very
old ad agency called Foundation Advertising in Delhi. Foundation
PR at present works with MNCs and a few corporates and when
the World Cup for the Blind 2002 was coming up, Mr. George
Abraham, President of World Cup Cricket decided to entrust
the PR activities to Mr. Siddharth and his team. With immense
strategic planning the Chennai press coverage for the game
was more than a success. The Local TV channels, National networks
and the media had so much to talk about and there was a flow
of print about the World Cup. |
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| Mr. Kumar Ramanathan, Vice
President, Sales & Marketing of Hutch |
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"Breaking into a competitive market - Media
and PR strategies" |
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20.10.2002 |
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| Mr.Kumar Ramanathan, delivering his speech
aided with a multimedia presentation |
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Mr.Kumar Ramanathan responding to an interactive
question answer session. |
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"Breaking into a competitive
market - Media and PR strategies"
In the meeting of the PRSI Chennai Chapter in October, Mr. Kumar
Ramanathan, Vice President, Sales & Marketing of Hutch addressed
the members on "Breaking into a competitive market - Media
and PR strategies". Preamble: The development of the brand,
brand idea and its creation. Media and PR strategy for launching
Hutch.
Hutchison is the single largest foreign investor in India. It
is one of the largest Asian conglomerates with a very highly
profitable business, their reserves and surplus are higher than
the foreign exchange reserves of India; the group has extensive
interest in infrastructure and telecom. They hope to bring a
lot of telecom business with improvement in technology to India.
Hutch came to India in 1995 with a joint venture in Mumbai and
the organisation grew inorganically through acquisitions between
1996 and 2000 - they acquired licences for three circles Delhi,
Calcutta and Gujarat. When the bid for fourth licencee came
in 2000, they considered the three southern states and the metro
of Chennai; the seven locations would mean a larger foot print
in India, 72% of the telecom revenue of India and 52% of India's
wealth. This kind of business would need a common brand and
that is how the story of Hutch began.
Hutch has a legacy of "orange" in its portfolio and
it is a very powerful brand. Their services in Mumbai is under
the brand name "orange" since the mid 90s. Technology
in telecom was just taking shape and the future was uncertain;
people were a little uncomfortable with technology; so there
was a need to connect. "Orange" promised simplicity
and open bonding. The promise worked and it became a most endearing
brand and is a case study in many organisations world wide.
But as time goes on people become familiar with technology;
they need what is relevant to them today. They do not want lofty
promises. Nevertheless they want the freedom, ease and the pleasure
of connecting with other people. There are a lot of players
in the field and a lot of consolidation also is taking place
in the industry. The entire industry is steeped in complexity
in terms of communication, tariffing and technology. Some of
them have made a virtue of this complexity. But with all this
the consumer is becoming wiser; he can differentiate the cheese
and the chalk. In this background the DNA for Hutch was born.
They wanted a brand which would hold on to what works. Not that
things did not work in the past. A lot of things with brand
'orange' worked. With the legacy of that powerful brand, they
needed to rethink of what Hutch would be. They wanted to move
on to something which was more contextually relevant. Hutch
had to be relevant here and now and yet hold on to values of
being simple, friendly and transparent and deliver the needs
of the hour without losing the sense of fun and that is why
they said "Hi".
Once they decided what they stood for, the key task was to know
what the communication challenge was. It needed to be relevant.
Everyone in their ads were talking of a dream world but in fine
print it said "conditions apply". But Hutch believed
nobody had the mandate to put "conditions apply" on
any communication material; that is being transparent, that
is Hutch. Hutch wants to offer enjoyment usefully. No fine print.
It is easy to say "simple", but the most difficult
part is to maintain the simplicity in all their communications
with all their constituents, with their customers, their employees,
their business partners. This is a value which an organisation
must imbibe, feels Hutch. Only then it can get translated into
spirit in everything we do.
Simply put Hutch by virtue of its heritage and parentage, will
be a step ahead; the parent is already in the next generation
of telephony. Therefore they believe they can bring products
and services ahead of others. As for better value, they are
the only company to offer a balanced tariff. Communication is
a two way process. They found there was a different rate for
incoming and outgoing calls in the city, defying the logic of
communication. Hutch came with the idea of "use this, this
is what you pay; use more and pay less"; simple; no fine
print. After Hutch the competitors have copied the rebalancing.
Hutch believes that their actions are their best ambassadors
and their satisfied customers are their best spokesman. Chennai
is the third largest market in most product categories be it
durables or consumer products and so on by virtue of its geographic
location, population and wealth. But in telecoms it is the 6th
largest and has performed well below its real potential. Hutch
believes that it is because retailing has not developed. They
wanted to launch a new and unique brand in a two player market,
wanted to be different, bring in a breath of fresh air and deliver
a differentiated service. Media strategy: They
differentiated the media vehicles; they wanted a specific vehicle
which would present a particular facet of the brand. They looked
at the synergy between the product message and medium, so that
they could deliver with telling effect what they set out to
do. The strategy was, they wanted to be noticed, dominant, clearly
cut through the clutter and be innovative every step of the
way. There was a premium internally on being different.
Outdoor: Lead medium, to project the image of the
brand; wanted to impact in the shortest time. It was not a lot
of money but the strategic locations of the hoardings.Certain
things were done outdoors that nobody has done - the hoarding
at the facade of Spencers, which most publications covered,
though the company did not go after that kind of publicity,
it was landmark, it was large and thus got written about. Outdoor
can deliver a certain brand impact, but is not a medium of communication
and attention span is just a few seconds; so it is important
to be at a point where the customer least expects it and impact
him with telling effect; this was what Hutch was able to do.
Being innovative definitely delivered the impact desired.
Press: Expensive medium. Definitely required to
deliver on the product aspects. At the time of launch and later
used it sparingly to communicate their wares. The set of ads
were a little different. In the launch week, there were different
offering on each day, concerning each aspect of the service.
Direct marketing: It was very simple - they
had to delight the customer, nothing else. Traditionally dm
has been the bane of most organisations. Dm has been type cast:
one can predict what your next direct mailer is going to be.
Hutch decided they must send something which was absolutely
delightful, but at the same time something that could tremendously
drive the respect for the organisation, brand and services.
They did two things - one was the Economic Times study, again
thanks to O&M. They targeted the people holding responsible
jobs, but who were in the fringes and not in the limelight.
The impact was awesome. Second thing - many mobile subscribers
do not understand the bill; the first bill is always a shock.
Hutch said the bill has to be explained; a bit of the shock
is reality; they decided that they would alleviate the pain;
so now Hutch bill is welcomed - the first bill has a wallet
with gifts. Another idea was: A small pouch was pasted to the
Metro of the Hindu which led to their walk-in customers to be
more than three times.
As for PR Hutch is modest. Their activities have attracted attention,
got them coverage. There has not been any individual interview
with anyone from Hutch with any publication. Mostly they were
industry stories. |
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Speaker: Mr. Garry Jacobs
Management Consultant
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"Internal credibility as the basis for positive
public perception" |
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28.08.2002 |
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| Mr. Garry Jacobs addressing the members. |
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Past Chairman, Mr. Mohan Punnen handing
over a memento to the chief guest Mr. Garry Jacobs. |
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Garry Jacobs is an American consultant
on business management and economic development with 30 years
of experience in India and founder of Mira International,
a consulting firm based in California. His clients are appeared
over the US, Europe and India from basic manufacturing to
high-tech electronics. He has also authored two books along
with two other experts. He is the president of the International
Centre for Peace and Development, USA. He also wrote the report
of the International Commission on Peace and Food called "Uncommon
Opportunities" which was presented to the UN Secretary
General. He spoke on the role of corporate communications
at the meeting of PRSI on August 28, 2002 illustrating some
case studies.
Jacobs said: Prudential Insurance known for their stability
- their symbol is the rock - in the 80s moved into other areas,
by acquiring a large real estate company and other non-life
insurance businesses and also one of the large brokerage houses
on Wall Street, which came to be known as Prubage. Jacob's
company was asked to plan a public presentation to showcase
a common public image of all the companies under one umbrella.
Instead the consultants advised them first to find a common
basis to link the various acquired companies that had not
been together in the past and had different cultures. Soon
a disturbing news from Wall Street informed that the brokerage
company was being implicated in insider trading and providing
of less than accurate disclosures to their own clients about
some of the investment they were selling. For a company like
Prudential this was quite devastating to be brought into something
like that. A few years later the brokerage company lost and
had to pay about 3 billion dollars in damages, a sizable amount
even for Prudential. The image of Prudential was thus damaged
badly and it hardly ever recovered its original image again.
One of the companies which impressed Jacob's firm in its growth
- he wrote about it in his Book - was the one which had grown
from 2 million dollars to 220 million dollars within 10 years
in an industry of remodelling homes. After six months of writing
the book they went to meet the CEO of the company. They told
him that after studying the company they found that there
was some serious gaps in the internal development strategy
which could retard and stop eventually the growth and wondered
if they could help him. The CEO and the President, both founders
of the company, asked why they waited six months before coming
to them and that they would have appreciated if they'd been
advised earlier as already they were in trouble. The company
took a bad slide.
The attention received by problems in the companies, reflects
a change in social expectations and social standards as to
what the public expects from corporations. This makes corporate
communications within the company more important than ever
before. PR problems of whatever nature they are of, in almost
every case are reflections of internal management failures.
Corporate (CC) communications need just not only to rectify
whatever has gone wrong but avoid them up front. Cc is an
integral part of the growth and sustained success and profitability
of any business. This has to be matched by corresponding corporate
behaviour.
A favourite story of Jacobs of creative advertising and success:
In 1892 a station master in mid-west of US received a consignment
of wristwatches to be delivered to a retailer and collect
the money and send it to the manufacturer. The retailer could
not accept them as he had no money; when informed by the station
master, the manufacturer suggested that he sell them himself.
He had access to telegraph lines and also had several friends
in station masters across the mid-west; he offered to sell
them the watches for a good price, which they in turn could
sell to visitors to their stations; he was so successful that
he ordered another consignment of watches from the manufacturer
soon after. Within a short period he resigned his job and
published a mail order catalogue wishing to sell to people
all over the state and began selling items of personal care
required by people in rural areas, all sorts of spurious merchandise;
his business grew in spite of his lack of discrimination,
making products seem better than they actually were. When
he lacked the capital he approached an experienced businessman
of Chicago, Julius Rosenwal and asked him to become a partner
and invest in his company. Rosenwal looked at the catalogue
and told the station master Sears that if he joined as it
was he'd lose all the goodwill he had; but as the young Sears
was imaginative and talented, he'd invest if he were given
full authority over what they say in the catalogue. Thus he
changed the top line on the catalogue which read "the
largest mail -order catalogue in the world" into "satisfaction
guaranteed or your money back. This was unheard of at that
time in US. Within 20 years the business grew to 20 million
dollars and became the largest retailer in the world. They
went on to open the first suburban department store and grew
during the 20s and even through the depression and by the
mid-80s Sears Robeck were a corporation of 40 billion dollars.
The one thing that spurred their growth is the commitment,
which is still over the door of any of their shops "satisfaction..."
Though there are instances many times of the public taking
advantage of the promise, they remained committed to their
promise. It is the communication of the message, which helped
them grow successfully.
The Wall Street Journal in 1984 had the highest circulation
and was the most admired for their accuracy of information.
They came to know that the Security and Exchange Commission
was doing an informal investigation of one of their journalists
for disclosure and misuse of sensitive information about 21
companies' shares in the market, which had influenced the
behaviour of people in buying and selling those stocks. Though
nothing was proved nor any accusation against the paper was
made, the paper could have avoided SEC action, if any, by
sticking to laws and constitutional rights of confidentiality.
But instead they published a small article the next day stating
that the SEC was investigating their journalist about some
information and mentioned the name of the column and the writer.
Media took notice of this and wondered. Two weeks later after
their own in depth investigation they published an article
"Stop Scandal" in which they gave full disclosure
of their investigation and admitted that the journalist had
misused his position and must be prosecuted. The US media
was aghast; some of them admired the paper's integrity and
transparency; New York Times took a different view and questioned
whether they had gone too far in their disclosure and why
they didn't take recourse to their constitutional rights.
The public confidence with the journal grew due to their frank
dealing of this issue.
In 1972 Johnson & Johnson launched a new over the counter
pain killer Tylenol, which was the most successful one in
the history of such products till then. By 1982 Tylenol commanded
30% of the entire OTC painkiller market as a branded patented
product. At that time some crazy man in Chicago took some
bottles of the pills and laced them with cyanide and as a
result 7 people died. It became a scandal all over the country.
The FBI cautioned J&J not to overreact, that from all
evidence it looked like the job of one person severely isolated
in one place and if they withdrew the product from that area
the problem would be over. The general public did not share
this view of FBI and the sale of Tylenol fell by 80%. 60%
of the American public said that they would never buy it again.
The company decided that their responsibility was to the doctors
and the people and withdrew 31 million bottles of Tylenol
from the market costing about 100 million dollars. Within
a year they recovered 90% of their original market share and
now after several years since their patent expired, the product
still enjoys premium price in the market, even though there
are several other similar generic products available.
In the early 60s there were many questions being asked about
the pharmaceutical companies in the US. The Congress began
investigations on the claims made by the companies about the
efficacy of their drugs. Laws were tightened. One of the companies
which went through this process but against whom no accusations
were made was Merck, which was at that time No.6 in the US
drug industry. They reflected on their commitment to accurate
credible communication with doctors. They began to adopt what
they called fair balance. When their medical representative
went to meet the doctors he had an absolute responsibility
to present fairly objectively the strengths and the weaknesses
of this product relative to other products already on the
market. The result was that in the next ten to twelve years
Merck rose from No. 6 to No. 1 in the US pharmaceutical industry.
In 1984 when Fortune magazine, for the first time, introduced
their survey of the "most admired corporations in the
US" Merck was selected by their peers, not only as the
most admired pharmaceutical company but as the most admired
in any industry overtaking long time giants like IBM, Coke,
Johnson & Johnson and so on. If you asked them how they
maintained this fair balance, they had a moral; the medical
rep. was trained that when he met the doctor, he should imagine
that the next patient was his mother, or wife or his children,
what he would want them to know about not just the strengths
of the drug but also the weaknesses or dangers, whether a
competitive drug would do the job better or more safely or
with a more proven track record. These representatives are
so good that some of them are invited to speak at conferences
of physicians on specific decease syndromes and remedies for
them. Some of them have more than one post graduate degree
in different fields of medical science. What started as a
public image issue for the industry was internalised by Merck
as a fundamental lesson reducing it to a firm corporate policy,
what kind of people they recruit, how they are trained, it
goes into the systems they have in their company. They have
a rule that no medical representative of Merck gives out any
information to doctors about any drug that has not been officially
passed by a committee and permitted by a legal and medical
review board. To do what looks to be extraordinary, to take
the view point of the public to such an extraordinary degree,
that they win a level of public confidence that is quite outstanding.
All these cases can be summed up under the theme of what Jacobs
calls 'Values", a word used often by management these
days, which he tried to define in very broad terms, that is
the qualitative aspects of carrying out a business.
He said: Qualitative goals energise people and activity and
elevate levels of performance far above normal levels. The
commitment to achieving these values requires extraordinary
effort internally from management in systems, training, discipline
and monitoring of people in order to actually execute it in
practice. Therefore the values of corporate communications
programme is determined not by how good it sounds but how
actually plays out in practice and transactions of the business.
Values are a key component of a company's mission and strategic
direction. The world of corporate communications is perceived
to present a message that would satisfy people internally
or externally but not nearly as often as it should be in actually
formulating that message in compelling senior management to
formulate and implement the message that will energise people
internally and will energise the market and the performance
of the company. One of the conclusions I have come to by looking
at companys that have succeeded over a very long period of
time that the long time growth and profitability of a business
is directly proportionate to not their commitment to the bottomline
but their commitment to doing this - to continuously elevating
qualitative performance in practice and whether they try to
project it externally or not, it gets projected to the public.
North Western Mutuals, an insurance company, was started about
130 years ago. Their mission from the beginning was to be
first in the benefits they offered to their policy holders
and not to be first in size. Since Fortune magazine introduced
the 'most admired' survey in the mid 80s, it has been the
number one 'most admired' company year after year. Even in
the USA this company is not too well known. They have been
number one in performance and they would tell you that it
has been possible due to their commitment to this principle.
To cite an example: one of their policy holders, a man of
32, fell ill and died soon after. The doctors later confirmed
that he had died due to a brain tumor. His devastated wife
knew he had his life insured with North Western. The agent
who visited her said that her husband had stopped paying the
premium six months earlier; the case was closed for all practical
purposes. But the agent discussed the matter with some specialists,
who said that the type of brain tumor the patient had could
not have happened suddenly and also it had debilitating effect.
When this was reported to the company authorities, they began
their own investigation and came to the conclusion that the
patient might not have been in a position to know what he
was doing and that might be the reason for non-payment of
the premium; the agent came back to the wife with a check
for 100 000 dollars, full payment of the insurance. This was
possible because the agent was taught from the first day he
joined the company that the policy holder's interest was of
the atmost importance.
In another case of suicide, though the government agency and
the investigation agency had declared that the company had
no legal responsibility to pay, the company, after its own
investigation, decided that it could not be sure if it was
suicide and paid the full value.
Another company started as a crop dusting company - spraying
insecticides over the crops from the air - in 1927 in southern
Mississipi by one Mr Omen. It was initially so poor and after
passing through the depression, it was converted into a passenger
airline in the late 30s; the company was so poor that it had
to pass around the hat to its employees to collect the money
for fuelling the aircraft.Out of the rural rugged background
the company developed two very key values, which have been
prominent throughout its history - a very scrupulous financial
control and a family feeling; even when it grew to be of 40
000 strong employees, it had the family feeling, going all
the way back to when Oman began the company in the rural background.
One story to illustrate this aspect - a young man was on night
duty at the mechanical shop, in charge of spare parts; till
about midnight there were men coming in with requirements,
but later around two in the night he felt asleep on the table;
sometime later he felt a presence in the room and slowly lifted
up his head to find Mr. Oman standing in front of him. The
young man was sure that he would lose his job. But all his
employer said was, "if you wanted to go to sleep, the
least you could have done is to put off the light". The
young man was thrilled to have escaped but also to realise
the humour and humanity of the situation and the commitment
of Mr. Oman to reinforce the core values of the company. The
story soon reached every employee of the company and many
others too.The message conveyed here was that how Mr. Oman
wanted every employee to feel and how every manager should
behave. He later founded the Delta airlines and once when
a flight ws overbooked he, the chairman of a Fortune 500 company,
withdrew to allow another passenger to fly. The message was
here to his employees that every single customer counted.
Mr. Jacobs displayed lists of physical, organisational and
psychological values. According to him more than communication
strategies, targets and objectives, it is important for senior
management to communicate what type of company are they trying
to be and what type of behaviour they want from people at
all levels of the company; corporate communications has a
vital role to play not only in communicating that message
but in helping the management formulate that message, which
is a critical, vital and central function that is dirctly
linked to the strength, growth and long term sustainability
of the business.
In 1973 for the first time Fred Smith established FedExpress
for delivering parcels overnight, at a time when in the US
it took about 5 days to do it. Smith, a student of business
history, came to the conclusion before setting up his business,
that a set of values was absolutely essential for rapid, sustained
profitable growth. He identified the core values to focus
on - speed of every function (from telephone answering to
repairing the airplane), communication at all levels (the
path of communication is open to the 2,00,000 employees from
their immediate boss to the chairman) - elevating any value
or commitment to any value,releases the energy of people;
it makes them feel more committed, more involved, makes them
feel happier about the company they are working for, happier
about the services and products it is delivering, giving them
respect and therefore they give more of themselves. Practising
the values energises employees, customers, suppliers, investors
and anybody who comes into contact with the company feels
that this is a quality business. Values not only release energy,
they tell the people within the company how to express the
energy, it directs energy, challenging people and directing
people to reach higher and higher levels. Values enhance growth
and satisfaction.
A French aristocrat ran away from persecution just before
1800 to America, leaving all his wealth behind. He just had
a formula his father had developed for making gun powder,
which was used, besides in wars, for also mines etc. He founded
a business manufacturing gun powder in Delaware. But with
the crude technologies of those days, gun powder would now
and then blow up. He decided that the safety of his employees
was most important and set several policies. When building
a gun powder mill or commissioning a new equipment, the real
dangerous point is when the switch is pulled the first time
- it either works or it could blow up. He made the rule at
such times the only one who could turn on the switch must
be a member of his Dupont family. The business grew and by
1900 Dupont company gave up making gun powder and went into
chemicals etc; but they never gave up this commitment to value
of safety. One can see it working at every stage. Even today
at every board of directors' meeting of this 26 billion dollar
comapny the first item on the agenda is a report on safety
as well as any management meeting at any level. The safety
officer is the chairman of the board! Down to the security
guard everyone knows his responsibility to safety. Maintaining
values also needs continuous training. Dupont trains their
employees on safety at home also.
Most companies with set of values and commitments have made
it their culture, it has become an integral part of them.
No special effort is made to show off this to the outside,
but it gets known. It is Mr. Jacob's vision of the role of
corporate communications of the company, a company that recognises
this conception of what it wants to be and how it wants to
grow. It need not be right at the beginning, some like Merck
started it after 40 years in business; but it is never too
late to begin; but it is an integral part of management's
thinking and its commitment and action. |
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Speaker: Ms. Ranjana
Kumar,
Chairperson & Managing
Director, Indian Bank |
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"Public Sector Banks - The Road Ahead" |
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09.07.2002 |
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| Ms Ranjana Kumar lighting the lamp to inaugurate
the year 2002-03 of PRSI, Chennai chapter. |
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Ms Ranjana Kumar addressing the members
of PRSI Chennai |
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"Public
Sector Banks - The Road Ahead"
Addressing the inaugural meeting for the year 2002-2003 of the
PRSI Chennai Chapter on the topic of "Public Sector Banks
- the Road ahead", Ms Ranjana Kumar, CMD of Indian Bank,
had the following to say: the strengths of the public sector
banks now are the huge network of branches and the large work
force at every cadre level. There are 27 nationalised banks
in addition to several private and foreign banks. To meet the
competition computerisation had become essential for the public
sector (ps) banks. Due to the competition the market share of
ps banks has come down from 90% in the 1970s to 80% now. A lot
of changes have taken place in pricing, quality of service,
technology upgradation, which has necessitated segmentation
of branches, the focus that each bank should have such as in
training and upgrading skills from time to time.
In recent times much is being heard about corporate governance,
that is, total transparency, greater professionalism and most
important of all management of human resources such as placing
the right person in the right place; this is what the banks
are aiming at now. Capital adequacy deals with the strength
of the bank to expand, its credit portfolio and risk management.
Banks need to realise if they are able to decipher the balance
sheet, monitor the accounts in order to take care of their money
or take steps well in time to prevent damages.
As per the recent RBI norms, interests on term loans or working
capital are being debited on a monthly basis instead of quarterly
as done earlier. This calls for a lot of organisation and discipline.
Major factor for deciding the effectiveness or success of ps
banks is the art of communication, within the organisation and
at various levels of the organisation; employees must be communicated
what is being expected of them.
Earlier every branch was handling all kinds of banking needs.
But now banks go into every fine point of the client's needs.
Segmentation of branches addressing different functions - corporate
branches, branches handling large credits (credit intensive
branch), personal banking, commercial branch. The staff in these
different branches need to be thoroughly knowledgeable in the
specific areas of banking , so that the customers need not waste
their time. Customer needs prompt decision, which necessitates
that the bank employee is focussed on the needs and the activity
of the customer. Bankers now are operating on a very thin margin;
there is a war going on interest rates. Foreign banks are so
much faster in decision making than the ps banks, which must
improve in this area.
Many of the nationalised banks are over 75 years old and have
a long experience with core industries. For banks dealing with
such industries, it is not enough to be able to interpret the
balance sheets, but should be adept in understanding the industry,
which is a very responsible job. They must have an industry
profile, which should be updated from time to time.
A banker should know his customer very well, through constant
interaction. There is an element of change in any industr | |