MxMIndia

Category: NEWS

  • MXM India is the web partner for Stratagem’s fourth Media RHYTHM training event, to be held on December 2 and 3 in Mumbai.

    Industry veterans to train @ Stratagem Media’s Media Rhythm 4

    By A Correspondent

     

    Stratagem Media, an independent media services company led by Mr Sundeep Nagpal, has been fairly active in the field of media training – an area which Mr Nagpal has, for many years, specialised in. The latest in the company’s list of training programmes is the Media RHYTHM series, which he started a couple of years back. The idea was to provide hands-on training to media professionals in the area of sales and help them overcome severe impediments in today’s media selling environment.

    RHYTHM is an acronym for Realising Higher Yields through Talent Harvesting in Media. The company has so far done three rounds of Media RHYTHM; and the previous ones have had Chairman of Madison World Mr Sam Balsara and former Zee CEO Mr Pradeep Guha flagging off the events.

    The fourth round is all set to take place on December 2-3, 2011 in Mumbai, and MxMIndia is the web partner for the event which has five modules – Print, TV, Radio, Digital and Outdoor.

    The list of speakers includes media veterans such as Mr Bharat Kapadia, Mr Suresh Balakrishnan, Mr Madan Sanglikar, Mr Jairaj Padmanabhan and Mr Nagpal himself. Topics that will be covered are: ‘Adding relevance to Value’ by Mr Kapadia, ‘Customising business solutions to meet business objectives’ by Mr Balakrishnan, Does Digital really work’ by Mr Sanglikar, and Strategising before, during and after every move in a media sale by Mr Padmanabhan. Mr Nagpal will talk on ‘When, how and how much to use the science behind media decision making’.

    Mr Nagpal is optimistic of putting up a good show. Talking to MxM India he said, “Stratagem Media has always believed in giving hands-on training to media professionals. There is so much that youngsters can learn, on how they can develop their skills and also how to start thinking and implementing effective selling strategies. ”

    Mr Nagpal further said that the workshop will give participants insights on things like how to close deals in the least possible time and how to understand the thought process of a media planner better. He feels such interactive workshops provide an opportunity for media companies to harvest talent of a select few ad sales personnel which they think are the future.

    Mr Kapadia said “Media RHYTHM is not like the regular seminars. It is more like the closed-room sessions, where participants get a chance to interact more and participate, unlike large forums and industry gatherings. The hands-on approach towards training is what makes the whole experience better.”

  • There's plenty happening at the JWT office as the agency restructures to bring in three NCDs. Also, a quick interview with Bobby Pawar [Story Updated]

    JWT restructures to bring in 3 NCDs

     

    By Tuhina Anand & Shubhangi Mehta

     

    After roping in Bobby Pawar as its Chief Creative Officer and Managing Partner, JWT is now bringing in more changes in its team structure which Colvyn Harris its CEO dubs it as `transformational changes’.  It is learnt that JWT has brought in a three National Creative Director structure which includes Swati Bhattacharyya in Delhi, Tista Sen in Mumbai and Senthil Kumar down South. All three NCDs will have a team of ECDs under them and when Bobby Pawar joins which will probably be in March 2012 as the CCO , he will spearhead this structure.

    Ms Bhattacharya has been heading the GSK business at JWT while Ms Sen and Mr Kumar have been Executive Creative Directors at the agency.

    On the restructuring, Mr Harris said, “I cannot think of 3 more deserving and talented people who have imbibed the best of JWT values and who believe in the JWT Company. It has taken us some time to recognize that their current roles and responsibilities far exceed what national creative directors in other agencies are responsible for. Given the sheer scale of our operations, and our most admired line-up of India’s finest and the world’s most admired brands, it was imperative to recognize the creative leadership team with a designation based on their role.”

    “Given the exigencies of the market and the pressure which is being brought to bear on us to improve our creative work – especially from clients who are in the more competitive categories – we believe that the combined skills and talents of Swati,Tista and Senthil will be able to provide the best solutions for our clients, our brands, and our people, added Mr Harris.

    Talking to MxM India on the creative pillars that JWT is creating, Mr Harris said, “The roadmap that JWT has drawn of being a creative powerhouse and being creative led and creative driven organisation will be achieved by these changes. Bobby along with the team will help us in realizing this vision. In fact, people who are saying that the CCO position at JWT has been unstable should know that Adrian came as the Delhi office head so we didn’t really have anyone take the CCO position for long. Bobby’s position in that sense is of true CCO who will lead a team of around 300 creative people at JWT along with the newly restructured team.”

    It may be recalled that when Josy Paul had joined JWT as its NCD, Agnello Dias had also been promoted as NCD and the agency followed the dual NCD structure at the helm but no CCO. It was only later when Mr Paul quit that Mr Dias was made CCO, though he too quit soon after to start Taproot India.

    Mr Harris also said  that one should gear up to hear of some more announcements at JWT very soon. The agency has also recently roped in Max Hegerman as Senior VP and its Head to look after JWT’s Digital strategy.

    On his mandate at JWT, Mr Bobby Pawar said, “My job at JWT will be ensure we change our benchmarks and set new standards. Critical would be in setting a vision and then delivering on it. JWT will be the magnet for the best talent in the industry and offer the most creative solutions ever seen.”

     

    INTERVIEW

    Bobby Pawar, the guy who is taking over as Chief Creative Officer and Managing Partner of JWT, has been responsible for turning around the agencies which he has worked for. When he was at BBDO in Chicago he weaved his magic to make one of the hottest shop in the region. In India too, with Mudra as its Chief Creative Officer he has been instrumental in the agency winning awards and accolades on many international and desi platforms. The agency has done some high decibel advertising like the ones for Volkswagen launch in India and there after its variants that had caught eyes of many. With Mr Pawar’s next destination being JWT which has  seen causalities in quick succession including Bruce Matchett, Josy Paul, Agnello Dias and Adrian Miller. Looks like JWT is gearing up for combat and shut the wagging tongues of the industry. Here’s an interview with Bobby Pawar who sportingly answered our questions though he steered away from some specifics.

     

    Q: Omnicom as a parent, so many awards in the kitty all with your leadership… why then did someone like Bobby Pawar leave?

    I guess I am addicted to challenges and the task of polishing JWT’s creative luster and raising the game there was just too seductive to pass up.

     

    Q: What is the mandate at JWT, also we have seen the creative head at JWT being an unsteady wicket in last few years, should we expect a change now?

    Colvyn didn’t asked me to partner him on the mission of maintaining status quo. I would hardly be the right guy for that. Both of us want JWT to evolve, to build on the past, but look firmly at the future. The focus will be on the work and the people who do it. And that means the entire agency. We don’t just want a highly creative creative department, but a highly creative company. Everybody has a role to play in making sure the solutions we think up, sell, and execute are as great as the brands need them to be.

     

    Q: Was the Omnicom deal anything to do with your moving out?

    If anything the Omnicom deal almost kept me back. That is a great company and I have the highest regard for John Wren, Chuck Brymer, John Zeigler et all. They made me feel very welcome, but as they say a man’s got to do what a man’s got to do.

     

    Q: How would you sum up your stint at Mudra?

    I loved it. See, I’m not leaving because I am unhappy. When I started nobody gave us a chance. Four long and hard years later, our creative reputation is the opposite of what it was. We did pathbreaking work for Volkswagen, Big Cinemas (Silent National Anthem), 7-Up, Union bank Of India, Emirates, Philips, Economic Times, McDowell’s No. 1, etc. We were the winningest DDB agency at Cannes this year along with DDB Paris, 3rd in the agency of the year standings at Spikes and we had the most metals Abbys. Not too shabby, right?

     

    Q: What should we expect from Bobby Pawar in his JWT avatar?

    I believe that agencies don’t just need to create, they also need to invent. Why can’t we invent a whole new medium while we thinking of a campaign that runs on it? The future will be invented by those who ask the most interesting and unexpected questions.

     

    Photograph of JWT Mumbai courtesy JWT website. Images of Messrs Harris and Pawar from the JWT and Mudra sites respectively

  • The search for Ratan Tata's successor of chairman of the Rs 4.3 lakh crore Tata group has ended. But who's this 43-year-old Mystery Man?

    The New Big Boss of India’s Biggest Brand

     

    The search for Ratan Tata’s successor of chairman of the Rs 4.3 lakh crore Tata group has ended with the appointment of Mr Cyrus P Mistry as deputy chairman of Tata Sons. But who’s this 43-year-old Mystery Man?

     

    Read on for:

     

    > The Main story on announcement with Mr Ratan Tata’s statement

    > Statement of Mr Cyrus Mistry

    > Profile 1: Avid golfer & foodie, avoids cocktail circuit

    > What Titans Of India Inc Have To Say

    > Profile 2: A reticent man with strategic vision, humility

    > Profile 3: Official profile from the Tata corporate website

     

     

    The Main Story

     

    The mystery over who would succeed Mr Ratan Tata as chairman of the Tata Group ended yesterday as the board of directors of Tata Sons met to appoint Mr Cyrus P Mistry as Deputy Chairman. He will work with Mr Tata over the next year and take over from him when Mr Tata retires in December 2012. This is as per the unanimous recommendation of the selection committee.

     

    Endorsing the appointment, Mr Tata, Chairman of Tata Sons, said: “The appointment of Mr Cyrus P Mistry as Deputy Chairman of Tata Sons is a good and far-sighted choice.

     

    “He has been on the board of Tata Sons since August 2006 and I have been impressed with the quality and calibre of his participation, his astute observations and his humility. He is intelligent and qualified to take on the responsibility being offered and I will be committed to working with him over the next year to give him the exposure, the involvement and the operating experience to equip him to undertake the full responsibility of the group on my retirement.”

     

    Mr Mistry, currently managing director, Shapoorji Pallonji Group, has been a director of Tata Sons since August 2006. He is a graduate of civil engineering from Imperial College, London, and has a master of science in management from the London Business School.

     

    And this is what Mr Mistry said in his statement:

     

    “I feel deeply honoured by this appointment. I am aware that an enormous responsibility, with a great legacy, has been entrusted to me. I look forward to Mr Tata’s guidance in the year ahead in meeting the expectations of the group.

     

    “I take this responsibility very seriously and in keeping with the values and ethics of the Tata group I will undertake to legally disassociate myself from the management of my family businesses to avoid any issue of conflict of interest.”

    But who’s this mystery man?

     

    Read on:

     

    Profile 1:

    Avid golfer & foodie, avoids cocktail circuit

     

    By Reeba Zachariah & Namrata Singh

     

    The man who will head a group synonymous with Indian industry is an Irish national and shares his birth date (July 4) with the US Independence Day. But in many ways, he resembles the business giant he has been handpicked to succeed. Like Mr Ratan Tata, Mr Cyrus Pallonji Mistry, 43, is described by close friends as soft-spoken , candid and down to earth.

     

    Again like Mr Tata, Mr Mistry is said to love cars – especially SUVs – and steers clear of the cocktail party circuit. But unlike lifelong bachelor Tata, Mr Mistry is said to be a devoted family man. He is married to Rohiqa, daughter of renowned lawyer Iqbal Chagla, and the couple have two school-going sons. An avid golfer, mr Mistry is known to be a foodie and his favourite holiday destination is Europe. Besides Mumbai , he owns houses in London and Pune.

     

    According to a Tata group insider, “Mistry is one person who can laugh at himself.” His sense of humour should come in handy in facing the challenges that lie ahead. A person who has shown a preference for the shadows , he will now have to put up with the arclights for years, perhaps decades.

     

    Tellingly, his Wikipedia profile was created within minutes of the announcement that he had been effectively chosen chairman-in-waiting of Tata Sons. The youngest son of construction baron Mr Pallonji Shapoorji Mistry, Cyrus hails from one of the richest Indian families with a net worth of $7.6 billion. But he will disassociate himself from the family business to avoid conflict of interest.

    Voracious reader with eye for detail

     

    Mr Cyrus Mistry has been managing director of Shapoorji Pallonji & Company, which is part of the Rs 15,000-crore Shapoorji Pallonji Group (SP Group). An avid golfer and prolific reader, Mistry got the chance to join Tata Sons’ board a year after his father retired as director in 2005. The family is the single largest shareholder in Tata Sons with a stake of 18%. Mistry is also on the board of Tata Elxsi and holds non-executive positions on the boards of several other companies. He is a trustee of the Breach Candy Hospital Trust as well.

     

    Although he does not have experience in heading a Tata group company , Mr Mistry, a graduate in civil engineering from London’s Imperial College, has been actively involved in the family business. His expertise includes formation of business plans, risk evaluation, business investment strategy and property and infrastructure development.

     

    Mr Khurshed Daruvala, MD, Sterling & Wilson, in which the SP Group holds 56%, describes Mistry as a “ hands-on leader” who is strategy oriented. “ Ever since Mistry started working with this partnership firm in 2003, the turnover has jumped from Rs 50 crore to Rs 2,000 crore.”

     

    If this is exemplary, consider what Mistry accomplished after he took charge at loss-making Afcons Infrastructure. SP Group acquired a 53.96% shareholding in Afcons in 2000. In March 2011, Afcons earned a total income of Rs 2,893 crore with a compounded annual growth rate of 21% over the past five years.

     

    He joined the SP Group in 1991 as a director and became its MD in 1994 in charge of the construction business. His brother, Mr Shapoor Mistry, is actively involved in the real estate and textile business.

     

    Conservative in his approach, Mr Mistry is said to have an eye for detail. “Once he takes decisions, he sticks with them,” said an insider. He can safely expect to take many crucial decisions in the years to come.

     

     

    What Titans Of India Inc Have To Say

     

    It is a historic and great moment

     

    -Krishna Kumar, director, Tata Sons

     

    A young leader means long-term stability for the Tata group

     

    -A M Naik, CMD, L&T

     

    There is strong chemistry between Mistry and Ratan Tata. He is very thorough and has good financial insight

     

    -J J Irani, former director, Tata Sons

     

    Good sign to have a young chairman -Ajay Piramal, chairman, Piramal group Cyrus symbolizes continuity, yet change

     

    -Harsh Goenka, chairman, RPG

     

    He’s mature beyond his years

     

    -Zia Mody, senior partner, AZB Partners

     

    Source:The Economic Times

    Copyright © 2011, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

     

    And here’s a little more…

     

    Profile 2:

    Cyrus Mistry:  Tata Sons’ deputy chairman a reticent man with strategic vision, humility

     

    When senior advocate Mr Iqbal Chagla met Mr Cyrus P Mistry for the first time, he felt there was something special about the man. “He struck me as a young man who will make it big one day,” says Mr Chagla.

     

    Mr Chagla had good reason to ponder over Mistry’s future prosperity – the younger son of construction tycoon Mr Pallonji Shapoorji Mistry was keen to marry his daughter Rohika.

     

    On Wednesday, Mr Chagla’s prediction for his son-in-law couldn’t have come true in grander style. In the early evening, Mr Ratan Tata sent out an email to the top five-six executives of all Tata Group companies, informing them that Mr Cyrus P Mistry would succeed him as chairman after December 2012. In his message, the 74-year-old chairman hoped the Tata brass would lend the same support to Mistry as it did to him.

     

    Not all may choose to do so, but Mr Ratan Tata for his part surely will. Top officials in the group who have worked closely with Mr Mistry say he gets along famously with the Tata Group chairman and is very similar to Tata in nature and attitude.

     

    Cyrus was Ratan Tata’s First Choice

     

    They add that Cyrus was the chairman’s first choice right from the time the hunt began for a successor. But Mr Tata was also keen to follow a systematic process of selection, involving shortlisting of candidates – both external and internal.

     

    So who exactly is Mr Cyrus Mistry, and what makes him the best man to head the sprawling Tata empire? He’s low-profile, reticent and conservative, qualities he has inherited from his father. After graduating in engineering from Imperial College London, Cyrus plunged into the family-owned construction business.

     

    His father gave him a clear mandate: grow the engineering, procurement and construction activities. Cyrus focused on the Middle East and grew the business in Oman and the region.

     

    Cyrus’ big break came when the group acquired construction company Afcons Infrastructure Ltd, which undertakes large infrastructure projects in India and abroad.

     

    The company was acquired at a time India was witnessing a construction boom. As chairman of Afcons, Cyrus oversaw many important projects. The company was involved in the construction of Delhi Metro, and Cyrus often flew to the capital to supervise the work.

     

    Those who have worked with him say Cyrus possesses a near-perfect blend of hands-on involvement and the ability to give long-term strategic direction. “He has excellent leadership qualities, can think on his feet and combines all this with humility,” says former Unilever honcho Mr Keki Dadiseth, who was at one time believed to be in the reckoning to succeed Mr Tata. Another executive who has worked closely with Cyrus says he has the ability to operate both “as a telescope and a microscope”.

     

    Among those backing Tata’s choice is Mr Darius Pandole, who remembers Cyrus since their days in the Cathedral & John Connon School in Mumbai. “Cyrus’ is an inspired choice; he will provide long-term stability to the group,” says Mr Pandole, a partner in New Silk Route, a private equity investor. Cyrus is just 43, and even if the retirement age of chairmen in future is brought down to 65, he will still have a good two decades at the helm.

     

    Yet, there are those who point out that Cyrus has succeeded Tata purely on the strength of his father’s 18.5% holding in Tata Sons, which makes the senior Mistry the single largest shareholder in the holding company of the Tata Group. Others feel Cyrus lacks global exposure and may not be able to tackle the complexities of a diverse business house like the Tatas. But Pandole retorts: “People raised eyebrows when Mr Ratan Tata succeeded JRD. Look at what he’s achieved.”

     

    Meantime, officials at some of the front line Tata companies are baffled by the sudden announcement. Most have little or no exposure to Cyrus. A senior official in the group said on the condition of anonymity that the Tata Group will now be known more as Shapoorji Pallonji Group. “The Mistrys are known more as sharpshooters, which is in sharp contrast to the Tatas’ trusted brand image,” adds another old hand at a Tata company.

     

     

    Source:The Economic Times

    Copyright © 2011, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

    Profile 3:

    Profile of Mr Cyrus P Mistry from the Tata corporate site:

     

    “Mr Cyrus P Mistry, 43, joined the board of Shapoorji  Pallonji & Co. as director in 1991 and was appointed managing director of the Shapoorji Pallonji Group in 1994.  He is a graduate of civil engineering from the Imperial College, London (1990) and has an M.Sc. in management from the London Business School (1997).

     

    Under Mr Mistry’s guidance, Shapoorji Pallonji’s  construction business has grown from a turnover of $20 million  to approximately $1.5 billion. The group’s companies have evolved from pure construction to executing projects under design and build and EPC delivery methodologies, implementing complex projects in the marine, oil and gas, and rail sectors. Under Mr Mistry’s stewardship, the group has registered many firsts in India — construction of the tallest residential towers, the longest rail bridge, the largest dry dock and the largest affordable housing project.  The group’s international construction business now extends to over 10 countries.

     

    Mr Mistry is responsible for launching the infrastructure development vertical in the Shapoorji  Pallonji Group in 1995 with a 106 MW power project in Tamil Nadu, followed by the development of India’s largest biotech park near Hyderabad in partnership with the Andhra Pradesh government. The infrastructure vertical has also developed two large road projects totalling an investment of USD 550 million.

     

    The Shapoorji Pallonji Group’s recent foray into agriculture and biofuels, with the leasing of 50,000 hectares in Ethiopia, was also overseen by Mr Mistry.

     

    Mr Mistry joined the board of Tata Sons in 2006. He has been a director of Tata Power and Tata Elxsi in the past.

     

    He is also on the board of the Construction Federation of India, the Imperial College Advisory Board, the board of governors of the National Institute of Construction Management and Research (NICMAR), and is a fellow of the Institute of Civil Engineers. ”

     

    Photograph: Tata.com

  • Ketchum Sampark announces entry into Digital Media with the launch of Ketchum Sampark Digital.

    Ketchum Sampark goes Digital

    By A Correspondent

     

    Ketchum Sampark, the Indian Affiliate of global communications network Ketchum Inc, has announced the launch of its digital media business Ketchum Sampark Digital. Aimed at garnering substantial market share in the emerging digital media business, Ketchum Sampark Digital will offer full-service interactive strategy, web design, video production and multimedia development to help companies tell their stories and build engagement with their audiences on digital media (internet and mobile).

     

    Commenting on the launch of Ketchum Sampark Digital, N S Rajan, Managing Director, Ketchum Sampark said, “The launch of Ketchum Sampark Digital reflects the emerging significance of engaging with consumers through prolific use of digital domains. There has been a distinct shift in usage patterns wherein consumers look beyond email and casual surfing to complete engagement and internet as the media of choice for information. We are initially launching our Digital business with a team of young social media experts and progressively build a bandwidth of skills and digital capabilities including a team of interactive strategists, digital designers and producers.”

     

    According to Jonathan Kopp, Partner & Global Director, Ketchum Digital, “Globally, Ketchum Digital has created innovative digital media solutions for clients including FedEx, Kodak, ConAgra, Absolut amongst many other industry-leading companies. With the launch of Ketchum Sampark Digital India joins other Ketchum Offices and digital experts around the globe in the Ketchum Global Digital Network bringing digital social media solutions from around the world for our clients everywhere.”

     

    As part of its foray into the digital media business, Ketchum Sampark is concluding a detailed study of 200 Indian corporates and nearly 150 brands in the Indian marketplace to track their digital footprint as well as user engagements. The study covers Corporates from across 20 different industries including Aviation, BFSI, Consulting, Diversified Large Indian Corporates, Healthcare & Pharmaceutical, Oil & energy, Software Services and FMCG. The Brands covered in the survey are from across 14 categories including Apparel, Automobile, Media & Entertainment, Personal Care and Retail.

     

    “Our study has tracked engagement of these corporations & brands with their target audiences using social media channels like Facebook, YouTube, Twitter and LinkedIn,” said Ajay Sharma, Managing Partner, Ketchum Sampark.


    Key Findings of Ketchum Sampark Digital’s Indian Social Media Engagement Study 2011

     

    > Initial findings indicate that while most Indian companies (82 %) have registered a presence on at least one of the four social media channels that were surveyed, the activity is largely focused around consumer communication for their products and services.

    > LinkedIn seems to be the most preferred channel on social media with 72 % of the companies surveyed having a dedicated page on LinkedIn.
    Though Facebook is the largest social media platform in India with over 38 million followers, it lags behind LinkedIn with only 55% of Indian corporates registering a presence on it.

    > Using video and multimedia to create engagement with consumers, investors, potential employees and other audiences is still not an avenue explored by Indian corporates with barely 6% being Very Active on YouTube.

    > More than 50% of corporates despite opening up a channel or registering a page on social media are Inactive. Some Inactive corporates also tend to use the presence on a channel opportunistically during launches and other significant company initiatives.

    > We feel that with the explosion in social media users this will change in 2012.

    > Out of the 150 brands surveyed, 23% did not have any presence on social media platforms while 30% had a presence on only one channel. Only 22% of brands were present on all three social media platforms.

    > Unlike corporates, Facebook is the clear favourite for brands with 75% of these brands registering a presence on it. YouTube and Twitter followed with 42% and 28% respectively.

     

    79% of brands with a presence on Twitter were Very Active / Active on the platform as compared to 69% on YouTube and 63% on Facebook.

  • A Harvard Business School professor leads research on how and why the Taj hotels staff were willing to give up their lives when they had the option to flee in the 26/11 seige

    26/11 Mumbai attack: HR practices converted ordinary Taj employees into heroes

    By Saumya Bhattacharya

     

    In the weeks that followed 26/11 – the day on which rampaging terrorists killed some 150 people at 10 locations in South Mumbai, including 11 employees of the Taj Mahal Palace hotel – Mr Ratan Tata made visits to some of the bereaved families. The chief of the Tata group, which owns the Taj via group company Indian Hotels, met a woman who pointed to the garlanded figure of her late husband and said: “My children never realised their father was a hero.” It took Mr Tata by surprise, as he expected to encounter anger and sorrow.

     

    The above anecdote is narrated by Mr Rohit Deshpande, professor at Harvard Business School (HBS), who was interviewing Tata for a five-part video case study on crisis management at the Taj during 26/11. Mr Deshpande started to teach the course at Harvard from October 2010. His students, especially non-Indians, were transfixed by the topic and were incredulous why employees were willing to give up their lives when they had the option to flee.

     

    The student reaction prodded Mr Deshpande, along with Ms Anjali Raina, executive director at HBS India Research Centre in Mumbai to delve deeper into the HR practices of the organisation. The uncommon valour of those who worked at the Taj convinced the duo to research the human resource (HR) practices of the organisation. After all, here was an extremely rare case of employees placing the safety of guests over their own well-being; and in the process some of them sacrificed their lives.

     

    “We wondered whether the HR best practices made them do this and decided to dig deeper into the HR processes,” said Mr Deshpande, while Ms Raina added that: “It was intriguing to unpack the Taj approach to HR and speculate on the linkages between the hotel’s HR policies and practices and the customer service experience.”

     

    The research of Mr Deshpande and Ms Raina spanned more than a year. They began by asking for manuals, wondering if there was training given to these employees for an incident like this one. There was none.

     

    An intrigued Mr Deshpande started to research the HR practices of the company and found three pillars of practices that explained the courage and actions of employees: A recruitment system that hires for character and not for grades; training programmes that not just mentor employees but also empower them to take decisions; and a reward programme that recognises employees on a real-time basis.

     

    “I teach both MBA and executive programmes. In my experience, these practices have been unique,” Mr Deshpande said. Just one aspect- that of recruiting from small towns and recruiting for attitude rather than grades – was unheard of, he added.

     

    This research is interspersed with tales of employee heroism – a 20-something banquet manager helping guests escape; telephone operators staying at their posts and alerting guests to stay indoors; and staff forming a human shield to protect guests at the time of evacuation.

     

    One executive chef at the hotel told the researchers that other groups have tried to hire him, but he refused to go. Reason: There is a connection with the guests.

     

    Generations have come to the Sea Lounge for matchmaking and weddings are celebrated in the Crystal Room; and waiters have been serving people for generations, the researchers were told.

     

    “(At a time when) we are hearing so many stories of human frailty, mismanagement, moral turpitude, the Taj research is about ordinary people who became heroes. It’s about leadership from everywhere, especially leadership from below,” said Mr Deshpande.

     

    The research will be published in HBR’s December 2011 issue. The context for the students and organisations is to learn about HR practices that have been put together on unique criteria, said Mr Deshpande.

     

    The culture of employee-empowerment has been ingrained in the Taj workforce for some time now. For instance, the researchers found similar displays of gallantry at the at the Taj properties in Maldives at the time of tsunami in December 2004. “I realised that just like the character of a human being is the sum of choices made over the years, the culture of an organisation is the sum of values, policies and practices consciously fostered over the years,” said Mr Raina.

     

    Source:The Economic Times

    Copyright © 2011, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

     

  • Is Phase III a chance to expand listenership reach, or further consolidate positions in a particular region. It’s both, and more, for FM radio players.

    Phase III countdown: ‘Overbidding will kill stations’

    By Robin Thomas

    FM radio listenership has more or less remained stagnant for a while since the completion of FM phase II. The soon to be launched FM phase III may have therefore brought some respite to FM stations across India. For some phase III is an opportunity to expand their listenership reach to newer cities and towns, yet for others it becomes an opportunity to further consolidate their position within a particular state/region. If Multiple Frequencies are allowed, it will introduce different genres of FM radio within the same city, thus encouraging new listeners to tune in.

    The drawback however would be the marginal FDI increase in radio to 26 percent from the earlier 20 percent. This marginal increase in FDI will probably discourage investors from taking the full plunge into the phase III bidding process. News is not available in the best of forms too, as FM stations are allowed to source news only from All India Radio.

     

    Mr Prashant Panday
    Mr. Harshad Jain
    Mr Harrish M. Bhatia
    Mr Rana Barua

    Despite all these developments, FM stations face a whole lot of other challenges which may have a direct or indirect effect on their phase III plans. The Music Royalty issue still remains unresolved, as a result of which FM stations, particularly in small towns, have to pay higher royalty. With expansion there would also be an increase in operation costs, and employee or talent management could be another challenge. MxMIndia spoke to few FM players to find out their views on the challenges for FM stations in phase III.

     

    Mr Prashant Panday, CEO, Radio Mirchi explained, “If people overbid in Phase III, they are finished. Radio is not like TV. One has to be extremely cost-conscious. One has to keep his head down while doing the business of radio. Phase III has e-auctions. There is a very good chance of bids going haywire. This is what each bidding broadcaster has to keep in mind.”

     

    Mr Harshad Jain, Business Head, Fever FM observed, “Phase III will bring with it a set of inevitable challenges like rising costs to set up new stations, and getting new audiences while the radio industry on the whole is still grappling with current costs and investments.”

     

    Mr Harrish M Bhatia, CEO, MY FM said, “The most important is the Royalty Issue; till the time it is completely resolved, it is quite difficult for the radio industry to grow efficiently. The absence of an acceptable radio measurement tool is another challenge. Content restriction is a big restraint for the industry as we are not allowed to provide self-generated news content. The challenges faced by the radio industry in the cities and towns other than the six metros are more or less the same as above.  To overcome these, the industry as a whole needs to work in tandem.”

     

    One of the possible challenges that FM stations can no longer remain immune from is the global economic climate. The uncertainty hit the world economy just before the FM phase III rollout, which may have some impact in the bidding process. “India as an economy is still expected to show healthy growth rates despite global sluggishness and we believe Radio will see greater volumes in a downturn too. The key issue is the ability to take up prices that will be difficult to manage in a downturn,” explained Mr Jain of Fever FM.

     

    According to Mr Bhatia, “The global showdown is more of metro phenomenon, hence it has not impacted the tier 2 and tier 3 cities. In fact, the radio business growth, even for existing players, is expected from non-metro cities.”

     

    In an earlier interaction with MxMIndia, Mr Rana Barua, COO Red FM had said, “I believe we should be taking complete cognizance of the fact that there is definitely a slowdown. The clients, advertisers, everybody are extremely, extremely careful about the money they are investing in any form of media. Taking things for granted and creating business plans for next two or three years seems passé now.”

     

    Three schools of thought emerged from this interaction, one which believes that the economic slowdown is a metro phenomenon. The second line of thinking is that the despite the global slowdown, the radio industry will continue to grow. And the other believes that the industry must admit the fact that there is a slowdown and hence the industry must take a cautious approach especially during the phase III bidding process.

  • While the FM phase II may have been well received by the industry, all FM stations have reported break-even. Smaller FM stations are more likely to face huge challenges ahead.

    The lesson so far for FM players

    By Robin Thomas

     

    FM Phase-I Policy was approved by the Government in July, 1999. Under Phase I policy, a total number of 21 FM radio channels are operational in 12 cities. FM Phase II on the other hand has a total of 336 channels in 90 cities across the Country whereas the much awaited FM Phase-III policy seeks to extend FM radio services to about 227 new cities. Phase-III will cover all cities with a population of one lakh and above, simultaneously, there will be a total of 839 new FM radio channels in 294 cities. In addition to this Foreign Direct Investment (FDI) in radio has been raised from 20 per cent to 26 per cent, if allowed, multiple frequencies will bring new genres in radio leading to content innovations, and the overall advertising pie is also expected to rise from the estimated 5 per cent.

     

    While the FM phase II may have been well received by the industry, all FM stations have reported break-even. Smaller FM stations are more likely to face huge challenges ahead especially since the music royalty issue is yet to be resolved. Overbidding in phase I and II could be just one of the issues, MxMIndia asks some of the industry players what lessons the FM radio industry can learn in Phase III from the earlier Phase I and II.

     

    Mr Prashant Panday
    Mr Rana Barua
    Mr Harrish M. Bhatia
    Mr. Harshad Jain
    Mr. Ashish Pherwani

    Mr Prashant Panday, CEO, Radio Mirchi observed, “One main lesson from Phase I and II – Do not bid so aggressively that you can never recover your investments. Those who bid sensibly in Phase-II (very few) are making PAT profits this year. Those who did not are at best making EBITDA break-even. Some are still making EBITDA losses. These people sometimes feel overjoyed that they have turned EBITDA positive; but fail to realise that the returns on investments only start after you turn PAT positive. There are barely 4-5 years left for the licenses to get over. If a company is not PAT positive yet, it has no hopes of generating any decent ROI. This is the main learning from the first two phases.”

     

    “The 2nd learning is about being able to bring brands. But to build brands, companies need profits. So again, if you have bid wrongly, you don’t have enough resources to build brands. That’s what our research shows every quarter. That except for Mirchi and maybe one-two other brands in some specific cities, no other radio station has been able to build a brand. They may have listenership, but they still don’t have a brand. There are no attributes that people assign to these brands. No values that the brands stand for. Without a solid brand, listenership suffers. Pricing suffers. And long term profitability suffers” he added.

     

    In an earlier interaction with MxMIndia, Mr Rana Barua, COO Red FM said, “One of the critical learning that a lot of us had in phase I and II is not to overestimate the potential of the market. The biggest challenge that lies for all of us is knowing that uncertainty has become such a huge thing today, therefore I think a cautious approach is going to be extremely critical.”

     

    According to Mr Harrish M. Bhatia, CEO, MY FM, “What was witnessed in Phase 1 and Phase 2 is totally different than Phase III. The Phase-3 rollout will increase radio penetration, making it a pan-India medium, reaching tier II & III towns. The most important thing that the radio players need to keep in mind is to bid realistically.”

     

    Mr. Harshad Jain, Business Head, Fever FM had a different viewpoint, he said, “The regulatory amendments in phase III are ultimately expected to facilitate industry growth.  FDI has been increased and might drive some additional investment in the industry. I do believe that FDI should have been raised further to actually fuel growth and overall industry development. Another key change is to allow multiple frequencies in the same city but we will have to wait and watch how this rolls out in practice. Another key shift in policy is the e-auctioning route as this will take the license fee to new highs, especially for frequencies in metros like Delhi and Mumbai.”

     

    Mr. Ashish Pherwani, Associate Director, Advisory Services, Ernst & Young, has seven point suggestions to the FM players, some of them are  the key aspects that all radio companies need to address vis a vis phase III are: –

     

    1. “Which licenses to bid for-  How well the new stations complement the existing bouquet of stations in terms of tactical sales, the future revenue potential from these stations both from the point of view of generating local revenues and adding on to the revenue generating ability of other stations, etc.”

    2. “Bid values- The bid value should logically be based on the revenue generating ability of the station over its license period, and expected costs.

    3. “Alliances.  Some radio companies need to consider which stations to bid for on the assumption that they will form alliances with other networks that together will provide advertisers with national, regional or state-wide reach.  In addition, radio companies with existing ad sales.” In addition to these, “Trade licenses that add value to other networks, Using FDI effectively, Build better MIS and control mechanisms to prevent operational chaos and Focus on People” are some of his suggestions to the FM players.

     

    As one of the industry player said FM Phase-III is not the same as Phase I and II, true, but it is bound to have challenges of its own perhaps even more bigger and tougher. MxMIndia will focus next on the challenges for FM radio in Phase-III.

  • FM stations experiment with content to go beyond traditional programming and give listeners a differentiated experience.

    FM stations go for out-of-the-box content

    By Robin Thomas

     

    Often criticized for airing uniform content across channels, FM radio stations have already begun exploring content that goes beyond just regular Bollywood music. Unlike print, television or the internet, radio in India continues to be a highly regulated medium. Contents across various radio channels are restricted to music, though multiple frequencies if allowed by the government is likely to change this. News on FM radio has already been given a nod by the government of India, but not everyone in the industry is chuffed about this development as it restricts news to be sourced only via AIR (All India Radio).

     

    Nisha Narayanan

    Meanwhile, even as the ups and downs over restrictions continue, FM stations are leaving no stone unturned to offer their listeners out-of-the-box content, each station wanting to sound different from the other. Fever FM for instance, has a mythological show, ‘Ramayan’ with huge fanfare and ‘From Russia with Love’, an infotainment programme. Radio Mirchi airs ‘Sunday Suspense’ in Kolkata, wherein the RJ (Radio Jockey) narrates stories written by authors like Satyajit Ray, Saradindu Bandhopadhyay among many others. Red FM on the other hand initiated shows like ‘Red Arrest’ and ‘The Mental Show’ in Delhi and Mumbai respectively.

     

    Ms Nisha Narayanan, Senior VP Projects & Programming, Red FM said, “Red is known for innovative programming. In the present, the two most innovative program initiatives are ‘Red Arrest’ in Delhi and ‘The Mental Show’ in Mumbai with Suresh and Hoezay. The treatment of both is edgy, humorous, shocking, tongue-in-cheek, and the response has been phenomenal. They both have been the talking point of Delhi and Mumbai Stations respectively and have gained tremendous traction. The mails , calls , responses have been consistently pouring in – and it’s not a surprise!”

     

    Mr Sriram Kilambi, Marketing Head, Radio Mirchi stated, “Sunday Suspense is an amazing show in Kolkata. It is produced in-house by our Mirchi Team in Kolkata. The show has many firsts to its credit – being the first in its genre – and has been supremely well received. The show is targeted at the general Kolkata public who is afraid that the current generation will start to lose touch with Bengali literature. This show has been one of our biggest successes thus far.

     

    Sunil Kumar

    “Sunday Music Company on the other hand is a show in Mumbai that basically talks to those behind the music of the latest release. So, while you get a lot of movie reviews, this is a one-of-a-kind music review that tells you about the music, its makers etc. Sundays have been very strong for Radio Mirchi, largely thanks to innovative shows like the SMC.” he added.

     

    According to Mr Sunil Kumar, MD, Big River Radio, “FM stations have experimented a lot with music content, and they are doing a good job by offering differentiated content within music itself. Today listeners are able to identify their favourite FM stations and very soon there will be further differentiation in content, with or without regulations.”

     

    Ashish Pherwani

    Mr Ashish Pherwani, Associate Director, Media & Entertainment, Ernst & Young observed, “Content innovation in FM radio still has a long way to go, as currently every other FM station is plays popular music with little bits of innovation here and there. I believe content innovations will actually happen once multiple frequencies are allowed which is likely to happen in phase III.”

  • MediaVest Worldwide has bagged the SuperMax business

    MediaVest Worldwide bags SuperMax business

    By A Correspondent

     

    MediaVest Worldwide has won the SuperMax media account and will handle for the latter media planning and buying across all media. The business was won in a multi-agency pitch that was conducted earlier this month. MediaVest will handle this business from their Mumbai office with immediate effect.

     

    Confirming the development, MediaVest VP in Mumbai Dinesh Rathore said, “We are delighted to have won the SuperMax business and are looking forward to partnering them. This has been a good year for our agency. We are looking forward to building on this momentum in the coming year.”

     

    Starcom MediaVest Group (SMG) has recently has picked up over 14 new businesses in the past few months from their Delhi, Mumbai and Bangalore offices including most recently the Aircel TV and Digital business.

  • Educomp Schools, as part of its growth strategy, has appointed Aegis Media's Vizeum India as its media AOR.

    Vizeum wins media duties for Educomp Schools

    By A Correspondent

     

    Educomp Schools, as part of its growth strategy, has appointed Aegis Media’s Vizeum India as its media AOR. Media agency Vizeum India, which operates in 55 countries, will now handle Educomp Schools’ media mandate in India to identify the appropriate communication programmes and deliver the same most cost optimally.

     

    Founded in 1994, Educomp Solutions is a globally diversified education solutions provider. With an employee base of more than 10,000 professionals, Educomp serves 26,000 schools and 15 million learners and educators in India as well as the US, Canada, Singapore and Sri Lanka. The company works closely with schools to implement innovative models to create and deliver content to enhance student learning.

     

    Educomp Schools provides educational content / IP and educational infrastructure to a range of differentiated preschool and secondary school brands in its quest to be the school service and Infrastructure provider of choice for all demographic and psychographic segments of society across India. Between the three brands, Universal Academy, Takshila Schools and The Millennium School with their different learning systems, the infrastructure and fee structures, its schools provide distinctly different schooling experiences to students and parents.

     

    Partho Dasgupta, President, Educomp Schools, said, “We are happy to confirm the appointment of Vizeum as our strategic media partners. Their overall result-oriented approach is quite unique and interesting. They are mandated to help us overcome some of our business challenges. We look forward to working with Vizeum and wish them all the very best.”

     

    Commenting on the win, S Yesudas, Managing Director – Indian Subcontinent, Vizeum, said, “We have pleasure in welcoming Educomp into the Vizeum family. It is a challenging assignment and we are fully geared up with the right delivery solutions. We look forward to addressing the business issues of the client as their extended brand team. We are thankful to the Educomp management for considering us worthy to partner them. This business will be handled out of our Delhi office.”

  • AIM president Tarun Rai says that the quantum of penalty levied on Times Now is not only unreasonable but can set a precedent that would threaten the independent functioning of news media in the country.

    AIM slams penalty against Times Now

    By A Correspondent

     

    Tarun Rai, President, Association of Indian Magazines (AIM), has reacted strongly to the penalty against the Times Now channel in the defamation case brought against it by Justice P B Sawant.

     

    “The quantum of penalty levied on Times Now is unheard of. It is not only unreasonable but can set a precedent that would threaten the independent functioning of news media in the country. Media in India is very vibrant and has helped uphold the strong democratic traditions of our country. It should be allowed to function and grow. At AIM (Association of Indian Magazines) we are extremely concerned about this development and hope for a fair outcome that will encourage media in India to continue to operate independently and fearlessly,” said Mr Rai in a statement to the media.

     

    The Indian Broadcasting Foundation (IBF) and the News Broadcasters Association (NBA) earlier had also reacted strongly to the impact of the Supreme Court’s dismissal of the Special Leave Petition filed by Times Now. The channel had asked for relief against the Bombay High Court order directing Times Now to deposit Rs 20 crore and furnish a bank guarantee for Rs 80 crore to hear an appeal in a defamation case.

     

    The directive occurred following a district court in Pune asking the channel to pay Rs 100 crore as damages in favour of Justice (Retd) PB Sawant for alleged defamation. The defamation case was registered after the channel published a photograph of Justice Sawant in place of another judge with a similar name, in connection with the Ghaziabad Provident Fund scam.

     

    Times Now had appealed to the Bombay High Court.

  • VIP becomes the first luggage brand in the country to offer e-commerce facility to its consumers across India through its website www.vipbags.com.

    VIP journeys into e-commerce

    By A Correspondent

     

    Buying a VIP suitcase has become easier. Through its e-commerce site (www.vipbags.com), consumers can browse through VIP’s wide range of product offerings and make purchases online. The bags will be delivered to their doorstep within seven working days at no extra cost. Currently, payments can be made only through credit card, debit card or net banking but soon ‘cash on delivery’ will also be offered on the site. www.vipbags.com can also be used for gifting.

     

    Speaking on the initiative, Manish Vyas, Vice President Marketing, VIP Industries, said, “VIP as a brand has through the years been constantly evolving with the consumers to give way to category defining product ranges. The e-commerce feature is yet another initiative that places VIP Industries high up on the social relevance scale. It is focused on bringing the VIP brand experience closer to the consumer base no matter where they are in the country. With the launch of the online purchase feature, we have taken the first step in ushering a new age in the luggage segment.”

     

    Established in 1971, VIP Industries Ltd today has a global footprint with its products available across India and various other countries. Its four factories produce nearly five million pieces a year, making it the second largest producer of luggage in the world.