Ironically, most people think that the higher you go, the more authority and control you have. But our research finds that in today’s complex, global environment, the higher you go, the more you get things done because of the goodwill and trust you develop, not because of your formal authority. As one C-suite executive put it to us, “I can make proclamations all day long but the world is just too big. There are too many places to hide. By the time I find out that they are not following through in Russia or wherever, it’s too late. It takes goodwill and trust -- it takes personal relationships -- to really make things happen on a global scale.”Our research identified two primary aspects of personal character that lead to the trust and goodwill needed to get things done in a global business today. Emotional ConnectionsGlobal leaders need to establish personal, empathetic relationships with people from all backgrounds inside their company, and in the broader community. Doing this requires three distinct abilities: sincere interest in other people, a heightened ability to listen, and a strong capacity for understanding different viewpoints.Sincere Interest In OthersOur research found that effective global leaders actually like people – all kinds of people. They enjoy talking with people and being around them. They care about people and want in some way to make their lives better. All of these attributes help them to form better business relationships, which are a critical part of doing business in many countries.International customers buy a relationship, not equipment, David Janke, vice-president of business development at Evans & Sutherland, told us. “We’re not selling equipment: we’re selling somebody’s career, because she’s got her neck on the line. She is buying something and making a large investment,” he said. “If it doesn’t work, everybody points the finger at her, so she wants to deal with a company and people … that she trusts.” Genuinely Listening To PeopleBeing interested in people is not the same as genuinely listening to them. As one executive recently told us, “It can be too easy when you are in a leadership position to do all the talking.” Yet, for others to feel understood, leaders must excel at picking up verbal and non-verbal communications. They must also overcome the “everyone thinks the same” assumption, which suggests a superficial understanding of the aspirations, interests, and feelings of other people. Understanding Different ViewpointsUnderstanding people requires leaders to relate personally to the lives of their employees, customers, and others who are relevant to the business. It means understanding context and, more specifically, how to provide appropriate leadership within it. For example, how a 40-year-old American expatriate manager delegates to a 35-year-old Japanese subordinate with a U.S. MBA should differ significantly from her delegation to a 55-year-old Japanese subordinate with no U.S. experience. To succeed, the American manager should pay much greater deference to the 55-year-old Japanese subordinate.Establishing emotional connections is an essential part of effective global leadership, but this is not the same as “going native.” Leaders who are interested in people, who are excellent listeners, and who are familiar with local conditions and traditions do not have to become like the people they are with. While they need to keep an open mind, they should never forget who they are or what they represent. IntegrityIntegrity forms the bedrock of character and is essential in establishing genuine emotional connections with people. We define integrity as having and demonstrating a strong commitment to personal and company standards. This includes ethical behavior as well as loyalty to the company’s agreed-upon values and strategy.Both personal and company standards are substantially more prone to compromise overseas. When far removed from corporate oversight and routines, most managers face increased pressure to modify their personal ethics and alter their unit’s standards to appeal to local values and demands. In most cases, such “flexibility” can bring short-term gains. Yet, despite the opportunities for short-term advantage, the global leaders we studied were most effective when they consistently maintained the highest ethical standards in personal and company matters.External RelationshipsEthical behaviors in relationships outside the firm pose particularly difficult challenges in a global context. There can be considerable differences between the dominant behaviors of a particular culture, and judgments about appropriate behaviors, regardless of culture.When leaders’ ethical standards are different from a country’s behavioral norms, they and their company have three basic choices: avoid doing business in that country; maintain their own standards and risk being placed at a competitive disadvantage as a result; and change their standards to play the game the way the locals do.Our experience suggests that this last option, maintaining a checkerboard approach to ethical standards, is not sustainable in global companies.Questionable behavior in one country can rarely be contained. Eventually the entire world finds out. Global leaders understand that global companies have global reputations, and need global standards of conduct.Internal RelationshipsHigh ethical standards should also guide behavior within the company. Matters such as worker safety, fairness in hiring and promotions, and freedom of expression are all part of the environment leaders help create for employees.Global leaders must demonstrate their high personal standards in all their internal interactions within the corporation. These standards cannot vary by country; managers will lose respect if they treat people inconsistently.They will also lose respect if they criticise their company’s strategy or its other leaders. We encountered numerous examples of this, including the vice-president of a Fortune 50 company who told local managers in Brazil all about the company’s problems with its CEO. She went on to criticize the company’s strategy and suggest several new alternatives. Why did she do this? No doubt, for a combination of reasons. She believed there was merit in what she said. But she also felt a need to be accepted by a group a people she did not know, and felt that her critique would impress them with her intelligence and insight. She also thought it highly unlikely that her words would ever make their way back to headquarters.After the meeting we asked participants what they thought, and found universal condemnation of the visiting executive. They viewed her as disloyal and arrogant. They had expected a leader to give them direction and fire up their commitment. Instead, the meeting was a major disappointment. In reality, with few exceptions, leaders are also followers and must support company policies and management.Leaders who lack integrity can destroy a company much faster than a leader who does not have a good strategy. Short term compromises – whether in matters of the environment, bribery, shoddy quality, or abusive labor practices – may bring temporary benefits, but invariably cost dearly in the long run. They can undermine relationships with customers and government agencies, and tarnish the company’s reputation for years to come. The most effective global leaders combine enormous insight into people with strong moral character. Such leaders are superbly skilled at building trust and goodwill, both inside the company and in the community as a whole. And, because trust and goodwill are critical to business success, character is the natural starting point for any discussion of global leadership competencies.(Stewart Black is Professor of Global Leadership and Strategy at IMD. Allen Morrison is Professor of Global Management and the holder of the Kristian Gerhard Jebsen Chair for Responsible Leadership at IMD. This is an edited extract from a chapter in Black and Morrison's forthcoming book, The Global Leadership Challenge).
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Anuraag Maini was a soldier first. After his stint in the army, he ventured into HR and for the last 23 years, has handled assignments in corporate HR, Employee Relations, Leadership Development etc. As Sr VP Human Resources, he has been working at DLF Pramerica Life Insurance since 2007. With attrition at the average industry level of around 70 per cent, Maini, finds attracting diverse talent and keeping them engaged and retained a difficult process. The shortage of quality talent, especially at the distributor and frontline sales level, has so far been his biggest challenge. While he doesn't think that any facet of HR practice needs to be changed as their relevance is based on context, Maini, also underlines the need for HR managers to have a sound understanding of business and the challenges and expectations of business leaders.What made you to choose HR as a profession? One of the main reasons people choose a career in HR is the opportunity to influence and support the development of employees, and to play a part in influencing strategic business decisions. A career in HR brings with it opportunities for variety and career progression. After my stint in the Indian army, I ventured into the corporate sector handling HR assignments. Since the last 23 years, I have handled varied assignments in corporate HR, Employee Relations, Leadership Development etc with business partnering in India, Middle East, Central & Eastern Europe. All these roles have contributed to both my personal and professional growth and it has been an immensely satisfaction career choice so far. What has been the biggest achievement in your career? I worked in Gillette for over 17 years. Gillette was acquired by P&G in 2005 and we were assigned the task of successfully managing the merger of Gillette with P&G in 2006. As a result of the acquisition, over 225 employees were rendered jobless and we conducted a very innovative career transition programme for the affected employees which included skills building sessions, training to write CVs and giving interviews. We reached out to over 40 organisations seeking job opportunity for employees and conducted job fairs within Gillette so that interested organisations and Gillette employees could interact. The outcomes were very satisfying - all 225 employees got jobs, many moved to senior roles and the average salary increase was about 30 per cent. The integration was very smooth and rated amongst the best in the Gillette-P&G merger.What have been the primary traits/qualities that have helped you attain your present position? I would say that a general ability to be able to engage with both business and people has been central to my journey. When one chooses HR as a profession, business partnering, consulting, coaching, problem solving, flexibility, the ability to listen and effective communication become key competencies. It is also important to be accomplished in core HR technical competencies. An HR role cuts across functions/businesses/levels and leading with values and ethics is the cornerstone of success. One needs to interact with people of widely varying levels of experience, intellect, education and skills sets and as an effective HR person, we need to ensure that all perspectives are understood, and worked upon.What are the challenges you are facing in your organisation? The life insurance industry was thrown open to the private sector at the turn of the century and is in its early stages of evolution. Attracting diverse talent, keeping them engaged and retained is a big challenge. This is a business where the organisation supports the long-term insurance needs of customers. Hence employees are expected to take a long-term view of customer relationships, provide high quality advice and service which also translates into a long-term career commitment to the company. Given the relatively high number of career opportunities in a growing economy like India, coupled with a shortage of skilled manpower, the industry faces high levels of employee attrition. At DLF Pramerica Life Insurance, we are committed to creating a positive, open work environment, which makes our employees feel rewarded, recognised and appreciated at all times. What are the steps a company should take to develop and motivate future leaders?Identifying, supporting and empowering future leaders is central to creating a powerful and successful organisation. An organisation needs to have well established and transparent talent assessment and review processes led by senior leaders. Candid feedback on performance and potential, strengths and development areas are highly valued by top talent. Strong leadership and mentoring programmes go a long way in grooming next generation leaders and building a strong leadership pipeline for the organisation. Such programmes also keep them motivated to achieve greater success by performing better. Future leaders should be offered a bouquet of development options to choose from – development projects, job rotations, stretch assignments, cross functional exposure, on-the-job training, mentorship programs, leadership training, coaching etc. are some of the ways in which companies create, develop and motivate future leaders. At DPLI, we have a robust performance and talent management framework driven led by senior leaders. Employees receive regular feedback which helps them create their development agenda. We have a strong training team which conducts a range of technical and management/leadership development training.What is your rate of attrition? Attrition in our company is similar to the average industry norms of around 70 per cent. How do you retain talent in your company? We believe in investing in our employees and providing them an environment where both their professional and personal needs are met. We ensure differentiation of rewards basis contribution, provide long term retention programmes to people with the commitment and potential to grow the business, invest in development of people, focus on frequent and transparent employee communication and are committed to building a value based culture. A combination of these actions helps us retain the right talent in the company; in fact key talent attrition in our company is under 4 per cent. What sets your company apart from other companies as far as work culture goes? We are of the firm belief that a value and ethics based culture will be a key differentiator. We ensure that new employees understand our values and standards of conduct during their on-boarding, so that they know what is expected of them. We conduct value workshops to reinforce company values, during which employees think of ways in which they can make the company values come alive on a day to day basis. We reward behaviour that is consistent with company values and at the same time do not shy away from taking action where company’s values have been compromised. What is the biggest challenge you face when selecting people? The shortage of quality talent, especially at the distributor and frontline sales level is by far the biggest challenge we continue to face over the years. In addition, people with the right values and the mindset suited for a long term career in the insurance industry, attract a premium. How do you keep track of employees' satisfaction or dissatisfaction?At DPLI, we believe that two way communication is important to the growth of the company. To effectively listen to what our employees have to say and constantly engage with them, we conduct an annual employee opinion survey and engagement dip-sticks at shorter intervals. The results are shared with employees and a joint action plan prepared on the improvement areas. The CEO conducts web chats every quarter, where employees can ask questions without revealing their identity. This culture of having an ongoing open dialogue effectively increases our engagement with our employees. How has HR been important to the bottom line of the company?HR is one of the central functions through which a company engages with and retains its bottom line and hence crucial to its sustained growth and performance. How has the downturn affected HR? As the world is still recovering from the downturn, HR leaders industry-wide have realigned priorities in response to the challenges that range from pressure to enhance employee productivity, while focusing on improving efficiency at reduced costs. HR’s role as a consultant to business becomes more critical in such situations, thereby ensuring that its people and organisation culture are handled constructively. HR has to facilitate change management, ensure a stronger connect with employees, keep channels of communication well lubricated and ensure that employees are engaged and focused on their deliverables.How should HR be integrated with the core line of business? The HR function facilitates creation of business goals and objectives, alignment between business lines and functions and further breakdown into individual employee objectives. HR objectives should reflect the business objectives of the organisation and ensure that a clear linkage is established between HR efforts and its impact on the business. In addition, HR managers/teams are embedded in the business to provide close support to leaders and employees.If you could change three things about HR practices, what would they be? It is difficult to comment on changing HR practices as their relevance is based on the context. To support an organisation at a strategic level, HR managers must have a sound understanding of the business, the challenges and expectations of business leaders. They also need to proactively assess people related risks and take mitigation actions. HR needs to ensure that there is a continuous effort to build organisation culture as this will serve as a differentiator for attracting, engaging and retaining talent.
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There is much reason to celebrate the 50th anniversary of the African Union. The immediate reason is the recently concluded elections in Kenya. The much feared violence did not occur. The two protagonists have displayed a lot of maturity in dealing with the wafer thin margin of election results. Nobody is taking to the streets with guns to celebrate or protest the results. An economic power house of the continent, Kenya is a great symbol of how countries in the region have matured politically. There are more than 25 democracies in the continent of 55 countries. Many more hold elections with varying degrees of efficiency and transparency. Every passing year gets better for the continent which has a vibrant community of countries that are taking unique paths to growth, development and democracy. In May 1963, the Organisation of African Union (OAU) was established with 32 governments to promote African Unity. It was transformed into African Union (AU) in 2001 and now has 54 members. OAU’s original goal was to promote unity and fight colonialism. But with time, AU has evolved to focusing on protecting democratic, human and economic rights. Armed conflict in Africa has reduced to a fraction of what it used to be.Most countries are not reducing their dependence on aid while investing in their economic abilities. Technology and telecom have been eagerly absorbed by people from Lagos to Dar es Salaam. It is easy to surf the net in almost all the countries from mobile phones. The rising profile of the civil society is at once helping democracy and economy. As vocal and connected civil society, many volunteer groups keep watch on elections and democratic processes. Increasingly empowered women are playing a huge role in this distributed movement. This internal support is more effective than external pressure by countries seen as former colonialists. The connected sections of society are also eager consumers who are coalescing into a growing middle class. Companies from across the world have not realized the potential and importance of this class. But will now have to compete with domestic entrepreneurs who are growing more confident. While the western influence remains and the Chinese impact grows, most African consumers are discerning enough to seek domestic brands and products to cater to their specific needs. India has been focusing on the economic and social infrastructure by investing in utilities and skill building activity. But there is much scope for companies from India to establish their products and brands. Most Indian companies are so focused on the domestic market, that they have not realized the importance of tying up with African entrepreneurs. These companies will have to move away from a trading mindset to set up local manufacturing. This is much like the global companies who came in early to India and set up factories. Agriculture sector is critical for Africa and foreign investors. A recent World Bank report says that Africa can feed itself if some regional barriers can be removed. So food crises may soon be history if the right polices are implemented. Other experts say that Africa has the potential to be the bread basket to the world with its vast swathes of fertile lands. The first 50 years of AU were tough. The next 50 will be exciting. The EU seems to be facing more problems than the AU. There are many challenges for AU, but they appear far more manageable than ever before. (Pranjal Sharma is a senior business writer. He can be contacted at pranjalx@gmail.com)
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Those of us who are parents or care-givers will do just about anything to ensure the good health and well-being of our children. A constant worry for most parents is the thought of how to best prepare kids for tough situations and adversities, as the world we grew up is different from the one they now face. While new technologies have brought with them endless opportunities to learn and engage, it has also brought with it new challenges and pressures, one such being the impact of cyberbullying. As parents we are not aware of it and if we do sometimes, we may not know how to address it.As more and more kids access Internet to communicate with their friends and for research-based projects, we also need to remember that if left unmonitored, there can be a dark and dangerous side to the Internet. Whilst much has been said about social networking, I believe that social networking sites are not "the problem". Rather, it's the way they are used that can be an issue.It is important to understand that the issue of cyberbullying can vary from one age group to the other. While younger children online may visit wrong websites exposing themselves to adult and violent material that is inappropriate for their age, older children with access to mobile phones & emails may face threats such as sexting, privacy and reputations issues, online scams etc . Last year, a 14-year-old student Nishant was bullied online by his seniors as he was better at the game of basketball which led him to withdraw from his favorite sport. He finally confided in his father, who sought the help of a counselor.It, therefore, becomes critical for parents to identify the signs and source of the damaging content at an early stage to be able to provide the right guidance to help their children avoid distressing experiences. Imparting online etiquettes and teaching children ways to handle common online problems can help them better prepare for online experiences. The Schoolyard Is Now 24/7While we might have grown up seeing bullies at recess or lunch in the schoolyard, it's safe to assume that most of us didn't grow up using mobile phones at school, or having our lives documented through blogs or social networking sites from an early age. For many of us, our 'digital footprint' didn't even begin until we may have been in the work environment for a number of years. However today, social networking and mobile phones can be accessed round the clock, which means that bullying can be more invasive than ever before. Additionally, bullies can remain anonymous online if they choose, masking their actions and making it harder for targets or supervisory elders to spot them. According to Norton Online Family Report 2011, 79 per cent of kids in India have had a negative experience online, and about 84 per cent kids on social networks found themselves in unpleasant situations online. The fact that 32 per cent of parents confirmed that their child has experience cyberbullying (Ipsos poll) indicate the prevalence of this issue. While we may not be able to easily relate to the growing pains of our 'digital native' children who wouldn't know life without a mobile or Internet, we need to understand and appreciate some of the unique issues they face by talking about it with them.Spotting The SignsThe Berkman Center for Internet and Society at Harvard University provides a good summary of the types of children who may be targeted by bullying. This includes, children changing schools, either due to a move or transition from primary to secondary schools, children of greater or lower family income levels as compared to the average and children whose appearance may deviate from the “norm” (overweight, underweight, wearing glasses, disabled, etc.).According to the research, children who bully others also tend to have similar characteristics; they often have high levels of energy, an ability to manipulate others, take delight in getting their own way and have difficulty with expressing empathy or dealing with emotions and conflict. If a child starts to withdraw from school or their social life online, is moody or easily distressed, has damage to his personal possessions, has difficulty sleeping or unexplained cuts, bruises or marks on their skin – then they might be facing bullying at school or online. If you suspect your child of being a bully, or being bullied, the first step to addressing the issue is to talk about it with her or him, and attempt to get them to open up and have an honest chat about it, without fear of repercussions or restrictions from devices or the internet.Minimising The RiskIt is important that parents pay attention to clues and signs to predict whether their children could be a target. Parents need to talk with their kids, because children are less likely to bring it up on their own. There are things parents can do to minimise the risks and ensure kids know what to do if they are picked on by a bully. Set ground rules together on internet usage – sit down and develop some ground rules for internet usage together with your kids so that they are included. The recent story of the mother in the US who gave her son an iPhone with an 18-point contract including “Mother will always know the password” is an interesting example of setting the rules and the boundaries.Monitor your children’s internet usage – depending on their age, you may wish to limit the times that children have access to the internet or their mobile phones. At the very least, you should also be aware of what sites they visit and for what purpose. Software such as Norton Family and Norton 360 Multi-Device are tools that parents can rely on for staying abreast of their children’s online activities and at the same time securing their computers and mobile devices.Don’t wait until it’s too late to have the talk – if you wait until your child is in high school, chances are that they have already been exposed to bullying behavior online. If you’re talking to your child about the ‘birds and the bees’ then consider having other conversations with them about their online behavior, and bullying.Keep talking about it with your children - Sadly, bullying of any nature can have devastating effects on our children, particularly if it is ongoing and relentless. Tragic stories like those of a bright and confident teenager, Ayesha who committed suicide after she was constantly harassed by a male friend who she befriended on a social networking website, are shocking examples, where parents were not aware that their daughter was reeling under tremendous pressure and trauma.Take the opportunity to spend time with your children, have open conversations with them regularly and encourage them to share their daily experiences. As parents our responsibilities towards our children carry on well beyond their real (flesh and blood) life to their virtual lives where the boundaries are blur and everyone is “faceless”. (Ritesh Chopra, Country Sales Manager, India & SAARC, Norton by Symantec)
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Auto companies regularly soup up existing models of their cars and sell them to consumers in a new avatar. But the companies do not call it a new car. Global pharma companies on the other hand are busy tweaking best selling drugs and selling them as new products. On top of it, they claim moral advantage by seeking monopoly pricing on it. While they crow about the newly tweaked drug, they also ensure that patients can’t buy it at normal prices. Patent laws allow pharma companies to claim a 20-year monopoly pricing regime to compensate for the effort and resources invested in creating a new drug. Unfortunately, many drug companies have been misusing these laws for what is called “ever greening”. These companies keep making changes in the composition of the drug to renew the patent on it for almost perpetually.The Supreme Court of India’s ruling on the Novartis case has given a much needed jolt to the practice. Novartis has spent the last seven years convincing the courts that its blood cancer drug Glivec is a new invention. The government and activists said that it was a tweaked version of its older medicine Imanitib. Novartis claims that the new drug “represents a 30 per cent increase in the bioavailability of the medicine.” Really Novartis? Effectively this means that it has increased the strength of the medicine. And for this it wants monopoly pricing for another 20 years at a time when generic drug makers are selling the same medicine at a fraction of the Novartis price.Ever-greening has been the bug bear of activists and governments the world over. It was created by smart lawyers, greedy CEOs and lazy pharma companies. Congratulations are due to the government of India and the Supreme Court for protecting the interests of patients and also the spirit of patent laws. The patent laws rightly allow companies to benefit from their effort. It is the misuse that is being fought. Novartis CEO Ranjit Shahani is trying to scare the government by saying that innovation would stop in India. If innovation means minor tweaking of medicines that benefit the company more than the patient, then it is better to stop it. Nobody is convinced that increasing the strength of a medicine is an innovation worth patenting. Why don’t Shahani, Novartis and other big pharma companies read the judgement carefully? The court says categorically that its drug is “not a new invention”. The court, government and the law welcome genuine innovation. Not questionable claims. The Supreme Court has done India a great service by upholding the sanctity of patent laws. The court has sent a message to the world that India will not tolerate undermining of laws by the brute strength of big pharma companies. This should actually encourage genuine innovation in India. Patents for new inventions will be protected. But fake claims will be thrown out. The last few years have seen an increasing presence of global pharma companies in India. Ranbaxy has been bought by Daiichi Sankyo of Japan and Nicholas Piramal by Abbott Labs. Many smaller Indian pharma companies are on the block. Global pharma companies must realise that buying domestic companies will not give them the automatic right to evergreen drugs and fleece consumers. They will have to create a model where compensation for innovation is balanced by the interests of consumers. Government and activists have supported pharma industry in the fight against fake medicines. But no one will support pharma companies in their fake claims of innovation. They would do well to learn from the auto industry. After all the auto industry does not increase the engine strength of a car and claim that it is a totally new creation. (Pranjal Sharma is a senior business writer. He can be contacted at pranjalx@gmail.com)
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Some years ago I found myself in Djibouti - a tiny country on the Horn of Africa, surrounded by Ethiopia, Eritrea and Somalia. It was not a fancy place when I got there along with many others for the inauguration of a Dubai-funded container port.On the streets ravaged by long years of violence were gun-toting soldiers and tanks. Also, at a road crossing was an old, discolored and decrepit bust of Mahatma Gandhi.Nobody could tell me what that bust was doing there, when had it been installed, and what opportune moment in history had prompted somebody to introduce the messiah of non-violence to a rather violent part of the world. But there he was – looking at soldiers, stray goats and sporadic traffic through his rimmed glasses – a sign of times when India meant more to Africa than it probably does now.Some of the old links still exist, but are now mostly overshadowed by China’s increasing influence in a continent which the West left for dead and the rest never looked at seriously. Zambia’s Vice President Guy Scott described the situation succinctly in a recent newspaper interview.“If you fly over Africa, and find yourself looking down, you will see football stadium after football stadium. They are all Chinese-built; they are all Chinese-financed,” he told Mint during a visit to India. He should know well. His government has done and continues to do business with the Chinese just as several other African governments.Some of these African governments also do business with India, and want to do more, if only India and Indian companies knew how to do business with the new, emerging Africa. Here again Scott had a few suggestions. According to him, India needs to learn a few lessons from China.“The Chinese somehow, without getting into the nuts and bolts of it, manage to be quick on their feet or produce something tastier... Maybe the Chinese are doing it more effectively,” Scott said.Fascinating lessons from a continent where the biggest stock markets worry more about what’s happening in China thousands of miles away than in their own economies; punters play the Chinese roulette, and a change in policy in Beijing could make or break African businesses worth billions of dollars.The deep influence of China on Africa is a story that’s been told many a times, mostly from the point of view of the West that has fared miserably in recent years in a land which it once colonized. There is also a tendency to club India in the same narrative and speak of its failure to spread its sphere of influence. India has lost out to China in the dash for natural resources, people like Scott tell us. Yes, that’s true, but then that’s only one side of the coin.China began by throwing money and creeping in slowly in its hunt for minerals and oil that are needed to churn its economic machine. They were initially quite democratic in their choice, willing to do business with dictators, military juntas, rebel militias and others who were seen as pariahs by the rest of the world. It was an easy give and take: you let us dig; we give you cavernous palaces and football stadiums. It worked well for a long time before the tide turned and African governments and population began suspecting the Chinese and their intentions.But China, knowing well it has to rely on Africa for a lot of its needs, has been smart. It has changed tack over a period of time and worked hard to enhance local economies through jobs and investments and complaints against the Chinese have lessened after certain countries brought in laws restricting industrial sectors in which Chinese companies can invest. Politically, the Chinese have not interfered with African governments and have helped some smoke the peace pipe too.For China, which has bilateral trade worth $166 billion with Africa, the continent is more of a business partner today. Beijing will pull all stops to ensure that its interest is secure. And it has money to throw around through subsidies and state-owned banks, which are quick to provide soft loans to fund projects.In recent months, for example, a Chinese consortium led by mining group Jinchuan, announced it was taking a 45 per cent stake in South Africa’s Wesizwe Platinum with China Development Bank pumping in $650 million. Similarly, the Hanlong Group is about to complete a $1.45-billion takeover of Australia’s Sundance Corporation, which owns large tracts of iron ore mines in West Africa. If the $3.5-billion acquisition of African Barrick Gold – Tanzania’s largest gold mining company – would have gone through, Chinese investments in the first few months of this year would have equaled India’s committed credit line of $5.5 billion to African nations.India’s low on money, but it could still win a few games if it realises that it can’t match China dollar for dollar and find smarter ways to engage Africa, which is not only a huge reservoir of natural resources but also aching for help to grow its economy.The need, therefore, is to move away from the traditional mining sector and expand the footprint in services, telephony, information technology, pharmaceuticals, healthcare and education – areas Chinese companies are generally weaker given their focus on natural resources. These areas offer huge potential and are those where Africa needs help as it grows and emerges from its centuries-old cocoon.India shouldn’t fall in the trap of being equated with China in rush for gold. It should set its own pace and look for smart synergies that would ensure a long-term, sustainable and equal engagement, not the lop-sided arrangement that first made Westerners and then the Chinese unpopular.(The columnist is President, Public Affairs, Genesis Burson-Marsteller, and a former newspaper editor. He has a keen interest in matters involving China and Southeast Asia. Views expressed here are personal)
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Expect all-out entertainment on Tuesday, 2 April, 2013 at the opening ceremony of IPL 6 with cheerleaders, flying drummers, gymnasts, rhythm acrobats, stilt-walkers, air-tumblers and mass dancers. Kolkata Knight Riders co-owner and Bollywood superstar Shahrukh Khan has promised a "spectacular and never-seen-before" opening ceremony of the Indian Premier League 6 to be held at the Salt Lake stadium in Kolkata.Before the start of the two-month long exhilarating cricket, the opening ceremony of IPL 6, described as the greatest show ever in India by the organisers, would stay true to its theme of 'cricketainment'."The opening nite of IPL 2013 will be a spectacular ceremony, the likes of which India has never seen before," Shahrukh said. "I will be performing to some of my songs. Katrina Kaif and Deepika Padukone, two of my co-stars, will also be there. Pitbull, the international rapper, will also thrill the audiences," he added.PepsiCo’s Tryst With FansWith Priyanka Chopra and Ranvir Kapoor shouting 'Oh Yes Abhi!" on the top of their voice, PepsiCo celebrates the modern face of cricket with a zing. PepsiCo has came up with several initiatives dedicated to the audience of sixth season of IPL that includes a limited edition of 500ml Pepsi Fan Can, activations with partner teams, 'Pepsi VIP Box’ where cricket fans may get to share space with their favourite celebrities.On the social platform, fans will not only get to watch the matches but also play a parallel Pepsi Tweet20 tournament on Twitter. A new website will also be launched that will let the IPL fans participate in various contests that may fetch them match tickets, merchandise etc. "In our first year as the proud sponsors of the biggest annual cricket tournament, the Pepsi IPL, we are thrilled to add the extra fizz to fan experiences across mediums. For us this is a perfect platform as it provides wider reach and engagement opportunities with our core target audience in the peak beverage season." Says Deepika Warrier, VP - beverage marketing, PepsiCo India.From the in-stadia branding perspective, Pepsi has also planned a innovative can-shaped player dug-outs, 3D pitch mats, the Pepsi IPL remixed Horn and the ‘Oh Yes Abhi!’ count-down timer, among others.Twice-WiseAmid all the buzz that IPL season 6 is garnering, for Rajasthan Royals, the good news was the fact that Valvoline Cummins, a lubricant brand, has extended its sponsorship for the second year in a row. “We are delighted to be extending our association with the brand and look forward to helping them create ever-growing value and achieve the best possible exposure through the partnership,” says Raghu Iyer, CEO, Rajasthan Royals.Sandeep Kalia, CEO, Valvoline Cummins also said that “their relationship with the brand during the last season has been very rewarding.”The sixth season of IPL 2013 will start from 2 April’ 2013 and will go on till 26 May’ 2013. Rajasthan Royals will play their first game on 6 April’ 2013 against the Delhi Daredevils.Read Also: Will Brands Score At IPL 6?Read Also: Usha Intl Bats With Chennai Super Kings AgainColours Of Holi Welcomes IPL 6Buckets of flashy shaded water splashed on people with a a patriotic score in the background, the new TVC by Ogilvy Mather brings the thunder of IPL 6 immersed in the essence of Holi. With a tagline “Koi nahi bachega”, the TVC depicts the madness of people for the game along with the festival."Every summer India comes under the grip of IPL fever. The thrill, the excitement, the anticipation leaves no one untouched, whether you're a fan or not. This fun and mania is what we wanted to capture. IPL ke rang se koi nahin bach saka hai!!!" says Abhijit Avasthi, national creative director Ogilvy India.The background score has been composed by composer duo Ehsaan-Loy and the lyrics by Ila Arun. The campaign is produced by Corcoise Films and directed by Prasoon Pandey. It will be supported by radio and OOH.Mumbai Indians Ka AddaMumbai Indians (MI), along with gaming and experience centre 'Smaaash' have launched a co-branded card called 'Akkha Mumbai Khelega'. The Mukesh Ambani-owned team has also launched a hangout lounge called 'Mumbai Indians ka Adda' for its fans at Smaaash. As part of the tie-up, the Akkha Mumbai Khelega card provides the fans of the team an opportunity to face their favourite MI bowlers virtually at the gaming centre.Senior India batsman and Mumbai Indians' iconic player, Sachin Tendulkar and MI's chief coach John Wright were present at the launch last week. MI's first home game is scheduled on April 9 against Delhi Daredevils after their second away game against former champions Chennai Super Kings on April 6.Mobility Of TV On MobilesWhile viewers are upbeat about the sixth series of IPL 2013, associated publishers are leaving no stone unturned to reach out to viewers. DigiVive’s NexGTv, has bagged the official mobile streaming rights of Pepsi IPL 2013 from master rights holder Times Internet.NexGTv users will be able to catch all the action right on their handsets and in addition to this, match repeats and highlights will also be available in the Video-on-Demand section. Pepsi IPL channel will be clubbed into existing subscription packs of nexGTv hence users can watch it by subscribing to these packs.“When DigiVive had picked up rights to stream live T20 World Cup on nexGTv, huge traction and heavy traffic was witnessed and this cricket season is further expected to add on to the popularity of the service.” Says GD Singh, Director, DigiVive.The service can be downloaded by sending a SMS mytv to 58888, or from any of the app stores and from the nexGTv website. It also offers Sony bouquet, Star bouquet, Aaj Tak, Asianet, Raj Channels etc(Compiled by BW Online Bureau with agency inputs)
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If there is one sector in India that is showing tremendous growth as well as potential, it’s definitely telecom. Being recognised as one of the most lucrative sectors globally the Indian telecom sector has not only shown signs of profitability but also contributed significantly to the nation’s economyIndia is today, one of the largest telecom markets in the world, with an addition of more than 950 million subscribers. Telecom sector has continued to emerge as the prime engine of the economic growth, with $39 billion annual revenue contributing to nearly 3 per cent of the Indian GDP. Over the last one-decade Indian telecommunication sector has undergone a major transformation through significant policy reforms, particularly under NTP 1999. Driven by various policy initiatives, the Indian telecom sector has achieved a phenomenal growth during the last few years and is poised to take a big leap in the future. The sector, despite its challenges more recently, has grown at a pace of 7 per cent CAGR since FY09. Interestingly, 142+ million new subscribers have been added just in the last 24 months. Interesting thing to know is that no other market globally is growing at this pace.Key TrendsDecreasing Profitability and Average Revenue Per User: Saturation of pre-paid subscriber base in metros, tier -1,2 cities has reduced operator subscriber growth at the same time the extreme tariff competition and increased customer service cost is affecting the bottom line of operators. While the growth is visible, the low ARPUs of the industry are a major cause of concern. ARPU in US is $46.5, UK is $32 and China is $8.3, India’s ARPU is one of the lowest at $1.9. Shifting of Focus from Voice To Data: Growing MVAS market to augment shift from voice to data. MVAS is already a $5-billion market in India and is growing at 20 per cent annually. Proliferation of smart devices due to increased adoption and lowered costs is enhancing mobile data consumption Changing Regulatory Environment: Telecom Equipment Manufacturing Policy and National Telecom Policy arefocused on long term growth and to promote a business friendly environment. The new policies are foreseeing increasing penetration of telecom services in rural area from current level of around 39 to 70 per cent by 2017 and 100 per cent by the year 2020.The recruitment trend in the telecom sector further confirms that this is the right time to become a part of this booming sector. According to a recent study by Price water house Coopers (PwC), the telecom sector will provide about 2,800,000 direct jobs and around 7,000,000 indirect jobs by end of 2013 Biggest DriversThe three biggest drivers to change the dynamics of the industry are smartphones, tablets and mobility. With the rapid proliferation of smartphone, mobile data is fast catching up in the industry. There are 28 million smart phones in India. Smartphones will account for 25 per cent of all phone shipments by 2015 in India. It is estimated that 50 per cent of music revenue in India already comes from mobiles. Nearly 60 per cent of the connected population in India access internet via mobile networks only. Accordingly, mobile data is expected to contribute 15-20% of non-voice revenues for the mobile operators by 2015. Tablets, is another emerging category in India. It is expected that Tablet shipments will overtake PC shipments in India by 2015. In CY2012, 3.1 million new tablets were shipped in the country. This is expected to increase to 6 million this year. Unlike PC markets, Tablet vendors are using retail channels extensively to push sales. Companies like Apple has increased its India focus significantly by leveraging the distribution model, loans and EMI schemes. As the mobile ecosystem in growing, Enterprise Mobility market in India is on the rise as well. Enterprise class deployments have already happened in verticals such as manufacturing, BFSI, education, logistics & transportation. Enterprise mobility market is expected to reach US$950+ million by 2015. Players like Samsung, HCL and Apple have increased their focus on the B2B space and many new players are looking at this opportunity.(Praveen Bhadada is Director, Market Expansion, Zinnov Management Consulting)
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