The Game of Thrones – Part 1 (Story of Indian Startups)

No this article is not about popular TV series with all gory action. But I could not find a better title to suit the current startup environment in India. With cut throat competition, mergers and acquisitions, exorbitant valuations, endless spending in marketing to get the market share, poaching of high profile executives, exits of top executives, layoffs, startups shutting down while new ones keep coming, the action is nothing less than what is there in “The Game of Thrones”.

But before I talk about India’s startup scenario, let me talk about a marketing game which I played during my MBA.

It was a simulation game and the objective of game was to teach some basic marketing concepts. The whole class was divided into 6-7 teams, each acting as a company. The goal of the company was to improve its overall financials, operating, and market performance. The game was supposed to be played over 8 quarters and in the beginning of each quarter each team needs to decide on certain parameters. Based on the value you choose for these parameters and value chosen by other teams, the algorithm of game gives you the financial result of that quarter. Apart from operations decisions, teams were to take some marketing decisions like product price, marketing spend, marketing mix, positioning, and product introduction/drop etc.

After playing the game for couple of quarters, one team dropped the prices of all its products. As expected they captured maximum market share in that quarter. Other companies started bleeding because their market share was going down but operations cost was same. The team which reduced price and got more market share was happy since they were still profitable because they were able to recover operations cost from the increased revenue. They argued that this is the right strategy since they were winning market share. Seeing this other teams didn’t have any option but to reduce their product prices as well. This started a price war and after 8 quarters as anyone can guess all companies were running on huge losses. Anyways without going much into the technicality of the game, one thing was very clear that lowering price to gain market share was not the best strategy in longer term. But since there was no real money involved, our teams didn’t hesitate in making such decisions.

I feel, this pretty much is the current scenario with startups in India. I could easily draw three parallels between the marketing game and our current startup environment.

Each team wants to WIN but forgets the basic objective:

Probably when the game starts everyone keeps right objectives in mind but as time progresses objective becomes WINNING and in the process everyone loses focus on the real objective. I guess it is basic human mindset that as soon as we form teams we start thinking about WINNING and to an extent the definition of winning becomes synonymous with “other team loosing”. This probably is a very strong argument but unfortunately it’s largely true. The very entrepreneur who starts a company with an aim to make society a better place would be ready to do anything to gain market share as soon as another entrepreneur enters the market (probably with same passion).

It’s not players’ money which is at stake:

In the marketing game the players were not investing any money so they were not too serious about profit and loss, they just wanted to win by gaining more market share. I am very sure they would not have taken the same decisions if the game was played with real money. It exactly may not be true with startups, entrepreneurs do invest their money but after some time its all investors’ money and investors’ risk. So the founders are more worried about growth to justify investor’s investment than about making business sustainable.

Everyone have very short time horizon in mind:

The marketing game was played only for limited number of quarters. So nobody was thinking beyond that. Other teams who were playing the game correctly could have come out well after 10-12 quarters but since the game was only for 8 quarters nobody bothered to keep the fundamentals correct. Current startup scenario is pretty similar. Everyone has vision for very short time. The industry is so dynamic that no one wants to think for a longer term. Success and failure both happen very fast unlike traditional businesses which used to take years to become successful or fail.


The questions remain, why investors are still investing on these companies, why there is a deluge of entrepreneurs, what will be the future of these startups, is everything wrong about current startups, if not what are right fundamentals?
Source:
https://www.linkedin.com/pulse/game-thrones-part-1-story-indian-startups-himanshu-bhangre

Work-Wife Balance

If you are an Indian tech entrepreneur, chances are you are male and grew up in an urban middle-class household like me. Like me, your father rose up the income ladder during his lifetime and earned for the family. Like me, your mother took the lead on the home front and focussed on giving you the best education she could afford. Your parents focussed on setting the stage for you to rise up more notches in the income ladder during your lifetime and get more opportunity than they did. If you are married, chances are that your wife has had similar parenting, aspirations and educational background as you. Chances are, unlike both your mothers, she works, used to work or wants to get back to work. Chances are, you need to strike a work-wife balance.

By default, our brains are programmed to behave like our parents’. Kids don’t do what their parents tell them to do; they do what they see their parents do. The gender roles programmed in our brains are a reflection of what we saw our parents do as we grew up. The men are programmed to take responsibility of earning the lion’s share of the household income. The women are programmed to take a lion’s share of the responsibility towards a happy home and healthy kids. How can couples of today reconcile that with the mutual expectation of being equal partners?

When the wife expects the husband to share the burden of her programmed responsibility and aspires to excel in the husband’s programmed territory, an unsaid conflict arises about what is the right balance. Both husband and wife feel like fish out of water when dealing with this situation. The husband feels entitled if he supports the wife’s career more than his father did. The wife feels a sense of guilt if she does any lesser at home than her mother did. As we try to strike the balance, our children are watching. By being who we are and by doing what we are doing, we are setting the default program in their brains with regard to gender roles.

The problem is accentuated for entrepreneurs. For better or for worse, the entrepreneur’s spouse rides the emotional roller coaster of the startup from the passenger seat. The wife of the male entrepreneur is probably the most under-appreciated. The overwhelming emotional demands of the startup weighs down on the entrepreneur and he starts needing empathy from the wife. The wife’s sacrifice of de-prioritizing her career aspirations weigh down on her and she starts needing empathy from her husband. Due to the conflict between traditional gender roles and nurtured aspirations, there is an emotional deadlock. The higher the need for mutual empathy, the faster the downward spiral. As a result, the chances of reaching a breakdown in the relationship are higher amongst our generation of entrepreneurs. If you are experiencing this, the only consolation I can offer is that this is a normal occurrence.

On the bright side, double income households are turning out to be an advantage for entrepreneurs. The wife can take the risk of starting up while the husband provides steady income or vice versa. If the tolerance for pain is high, they could start up together. If they really wish to make things very difficult for themselves, they could both start up independently and simultaneously. However, that does not seem to alter the default code for who is expected to be more successful in the career and who is expected to ensure smooth running of the household. It all shows up when one of them has to give up a professional goal in favour of the spouse’s goal or a common family goal.

Think of the last few times you made a big life decision like a geographical move or a career move. I pick these examples because they are generally applicable and easy to isolate. I leave it to you to reflect on other examples that have showed up in your life. How many times did the wife draw the short straw? How many times did the husband choose to move to a new city with the leap of faith that he would figure it out? How many times did the wife give up her preferred career choice in order to support the husband? When neither gave up their top choice and chose to deal with a long-distance marriage instead, what happened eventually?

Now pause to reflect. Is there a pattern that has emerged? If it indicates an imbalance, what is the right system to follow if not traditional gender roles? Is meritocracy the answer or should there be a scorecard of sacrifices? I don’t know the answer and I doubt that any one answer exists. As there is no formula to individual happiness, fat chance that there would be one for the happiness of two or more. I do know that this is a widespread problem in our generation of entrepreneurs and one we need to resolve powerfully. It is an opportunity for us to re-define gender roles for ourselves and the next generation.

Each couple and family needs to deliberate and figure out their own right balance, which too will evolve with circumstances. Our default behaviour is unlikely to deliver the goods. With all due respect, leaning on our parents will cause more problems than it will solve. Work-wife balance might be the single most important life challenge for our generation of entrepreneurs. The problem cannot be wished away. Our next generation is counting on us to make it.

Shruti moved to the Bay Area after we got married. Two years later, we moved to Mumbai so I could start Chaupaati Bazaar. A year ago, we moved to Delhi so she could be the renewable energy regulator with CERC. We still debate endlessly about what we should eventually call home. Source:
https://www.linkedin.com/pulse/striking-work-wife-balance-kashyap-deorah

Sales is Science

Sales, like Science, have its own principles/laws which when followed assiduously leads to predictable outcomes, every single time.  I have been steadfast in following these principles, listed below, and have experienced, first hand, sales metamorphosing into science. Let us go through these principles: 

1. Prepare hard for any sales meeting - internal or external. Do spend time to understand your client's business -  their imperatives and priorities, challenges they are faced with,  their competitors, their customers, their business financials, statements made by the CEO and board of directors, key trends impacting their industry,  government regulations - favorable or adverse. 
2. Basis your preparation build a pitch, in layman's language, connecting the dots and detailing how your offer/solution is best suited to address client's needs. The technical details could follow, but essence is to explain the solution in plain language, and keep it simple. 
3. Next step is to quantify, in compelling financial terms, the value of your solution. This could be cost saved, profitability improved, or sales increased. Key is to quantify the value in $$ terms. 
4. Understand how the client will make a decision - I call it the client's decision making web. You will need to understand all those who will be involved in the decision making, and the role each individual could play in making a purchase decision. 
5. Build a plan, with timelines, for your leaders to meet with the client's key stakeholders. Create a detailed briefing document that captures the meeting objectives, business details, possible queries/objections from the client, and expected outcomes. Schedule a 30 minute call to step your leaders through the briefing document, and solicit their feedback. Avoid briefing your executives while driving to the client's place - such briefings are seldom helpful.  These meetings, if well executed, will leave a favorable impression with the client. They will know that you have the organisation backing you. 
6. A humble disposition is very helpful in sales. If you do not possess this disposition, naturally, do take conscious efforts to build the same. Clients love to build relationships with those who command subject matter expertise, have a point of view, and are humble
7. Follow through, with speed, on commitments made and agreed actions.  
8. Be obsessive about making your clients successful in their organisation

That is all! Try this out and you will see the difference. You will find a purpose in your profession. Your sales forecasts will be accurate.  Clients will respect you, and as a consequence you will be respected in your organisation. You will grow. 

Good luck selling and growing!

Source:
https://www.linkedin.com/pulse/sales-science-sriram-rajan 

When I had trouble I solved it in three ways

When I had trouble, I solved it in three ways.

Focus on Customers
Serve your employees
Learn from the competitors

1. Focus on Customers 
Today every body is talking about Investors number one, and I hate that. I think it’s always customer number one.It’s the clients who give you money, It’s the customer that gives to innovation, It’s the customer that makes you happy.When I face trouble my clients and friends were there to tell, Hey “Mayank keep going, You are doing great thing, You can’t die like this  “When you think about the investor, you only think about revenues, more transaction, and you only think how you can get next level of investment.

It’s hard to make your investor as your customer, and I hardly found that. I don’t believe Sachin / Kohli drove that bike or car, and I don’t think Mr. Amitabh Bachhan Sir use navaratan oil.Customer goes up with you, He gives you money, he gives you hope, he gives you support.

2. Serve your employees 
It’s your employee, Your team that makes the difference. It’s your team that makes the dream happen. If you listen to your employees’ innovation, happen, You get the ideas, love to solve their problems, to solve their family problems. They feel it’s not your company; It’s their business. They feel happy with you, and They feel glad to work with you. When you believe your people everybody start performing extra ordinary, they love their job.

Try to find right people, not the best people. 

Why we are successful
We don’t have an MBA, IITs or any high experience people.
We are not smart enough, and I could not crack IIT.
We are not hard working; Rickshaw wala do more hard work than us.
We are successful because we have the dream, We have a dream to do something great. We have hope that we can achieve anything that we want to do. All the people that we hire from All big brands are gone because they can only be Team leaders, they can only drive process; They can’t drive passion.
When you are small, Don’t hire talent, Hire people. Because he is not here for the job. He is here for a dream to share.

3. Learn from the competitors  
Love competitors, Learn from competitors. If you don’t have competitors, you can never grow that fast. Respect your competitors, learn as much as you can. Competitors are the best laboratory for you, Don’t copy from them; learn from them.I love my competitors, every time, and I look at them; I admire. Competitors are not meant for fighting, find the examples, the models, why they are successful.Most interesting part of the business is competition. When your competitors are using the money to compete, they start loosing.Business is about the wisdom, Business is about hope, Business is about courage.Last and important things, never , ever, ever keep your dream die; If you don’t know how to survive. Ping me, Call me, and I can’t invest in your company, But I can tell the ways how you can push yourself to feed your mind and body.

https://www.engineerbabu.com/2016/04/when-i-have-trouble-i-solved-it-in-three-ways/

Hiring Smart Failures : Why It Just Works!

If you are in the business of finding and hiring talent, specially for a position that might prove critical in starting a new product, team or business initiative full of challenges and unknowns, I am sure you'll have something to think about by the time you reach the end of this short post.

Today we'll talk about a very unique set of people whose achievements are generally undervalued and not openly talked about, at least in some societies and cultures; those people who failed spectacularly at some point of time in their lives trying to make a dent in this universe. The unsuccessful Entrepreneurs who are yet to achieve that greatness so that their failures could be glorified to become inspiring stories in newspaper interviews and Facebook/LinkedIn shared posts. The Jack Mas and J.K.Rowlings who are still in their struggling years and don't know what the future has in store for them. Some of them might never become that successful ever but it doesn't matter in the context we are talking today. Today we are talking about failure, how important it is in life and how we as a society are apprehensive of the value it brings to the table.

So, what has failure to do with important hiring decisions. Well, a lot. I wonder how many CEOs building a new team, HRs and recruiters hiring for a critical position look forward to reading a paragraph starting with "I Failed to..." in a resume and then say "Wow! That's impressive. Let's schedule a meeting with her". Now you'll wonder, how many candidates applying for the job would like to mention the same. Almost none. So here is the proof of the society we live in and the taboos it nurtures. We are too embarrassed to talk about it, forget about celebrating it.

The amount of learning an entrepreneur gets exposed to, be it about the product development, the market dynamics, the customer's expectations, the fundraising game, operational hiccups, bootstrap hiring and money management, in just 2-3 years of struggle is unimaginable. That's the average life span of a failed attempt at running a new business. There are few who give up too soon and a few who keep struggling for too long but lets consider the bell curve and stick to the majority. These 2-3 years of trying, failing, fixing, getting almost at the verge of a breakthrough, finding no luck (again) and eventually running out of oxygen, gives so much of valuable experience that it dwarfs the 10 years of sitting behind the desk experience, delegating tasks in a set, organized, hierarchical corporate setup. No, I am not saying that those who haven't been an entrepreneur before are not knowledgeable or are of any less value but they hardly get to learn those aspects of a business that starting up at something new does; from the bigger holistic picture of the business all the way to the critical microscopic details of the product, things that are easy to miss when you have a set "Role" and defined "Responsibilities".

So if you as an HR, a recruiter who has gotten used to the kind of resumes you come across everyday and even expect them that way, then think again. If your company asks one of your "Technology Lead" or "Business Manager" to interview an ex-entrepreneur and he starts the interview with a question like "Ok, Can you please tell something about yourself?" then take a step back and question, 'Is this interviewer really qualified to ask the right kind of questions to this candidate? Will the interview outcome really help make a right hiring decision?'. I personally believe a CEO will always be the right person to interview another entrepreneur. Yes, CEOs are very busy people but then I am assuming this role that you are hiring for and the "Perfect" team you envision to build is also that critical and important. If not the CEO then someone who had come as close as possible to starting up a new business/product from scratch in a chaotic, unpredictable market with almost shoe string budget. If she herself had experienced a failure at least once in her life then she qualifies to be the right interviewer even more.

If you ask an entrepreneur what all he has worked on in these 2-3 years, he'll not know where to start. The ground reality of facing challenges, getting the door slammed on the face truth, the client who ditched at the last minute truth, being in the market too early truth, the never say NO investor tactics truth, the scaling too fast too soon truth, the BIG fish taking over market truth, it's unending series of learning experiences.

I believe, a team and an organization should have a lot of people with insanely successful history because they did something right at some point of time in their lives. But at the same time there should be a good mix of people who also know 100 things that you should not do because that leads to a dead end. They learned that the hard way.That's the value they bring to the table.

To embrace a culture that is highly innovative, an ecosystem that values risk and respects failure, the HR and recruitment community might need to unlearn a lot, start fresh, challenge the old, reserved thinking of what risk and failure is.  Once that happens, everyone will realize why at times, the best problem solver in the room might not be that talkative, full of ideas guy who recently had a glorious success but that quiet, observing, last to speak person who has tackled failures up close.

Note: Original Post appeared on linkedin.
https://www.linkedin.com/pulse/hiring-smart-failures-why-just-works-vikas-singh