“One Branding” : “Uniting the Employer, Corporate & Product Experience” | BCG

Every day, the Digital-World shines a spotlight on Brand inconsistencies…Employees & potential recruits might get one impression online, customers and partners might have another experience, while investors and influencers might see an altogether different picture…The result is brand confusion or worse : “Brand Conflict ” !!

Consumers today, led by the digitally native Millennial generation (ages 18 to 34), expect much more from brands. They increasingly require a holistic and authentic experience across all the online and offline ways they interact with a company. When we surveyed them, Millennials reported that the number one way that brands can engage them is to have an “authentic purpose.” Many consumers expect to engage more actively in a two-way dialogue with brands—and the Internet gives them a megaphone to express their positive and negative opinions loudly..

The global business environment also demands more from brands. The service sector now makes up approximately 70 percent of most developed economies, and that share is even higher when it includes the many products that have a service component. People have become a critical resource for service-based industries: labor costs are higher than capital costs in many service companies..

Likewise, people have also become an essential component of branding, a field that was once highly product oriented. Brand experiences are now largely shaped by the people on the front lines who interact daily with customers and must meet their rising expectations. Employees have become, in effect, brand ambassadors. Brand management of the future requires, therefore, even fuller and more consistent engagement among the people inside and outside the company—both those who experience the brand and those who represent it..

The problem is that companies too often focus on only one or two aspects of their brand image. Many ignore employees as brand advocates or else narrowly relegate marketing communications for employees and recruits to the human resources department. People often assume that a strong product or corporate brand alone will attract candidates and customers. To become part of its customers’ lives, however, a company’s product and brands will first have to be “lived” by its employees.

To succeed, companies today must elevate employer branding to its rightful place among the other major pillars of corporate, product, and service brand management. At the same time, they must create harmony among customer experiences with the product, the company, and employees. We call this new concept of integrated, employee-powered marketing One Branding...A tight linking of all the aspects of brand management ensures that brands leverage their most significant asset—employees—to create more powerful and relevant brands for today’s changing world. One branding also significantly boosts performance..

THE REWARDS OF ONE BRANDING:

Only the harmonization of corporate, product, and employer branding ensures that everyone involved “pays into” the one-brand account, together raising the brand’s value. We have found that, in many cases, behind this success lies strong employer branding..

Companies that have strong employer brands tend to outperform those that do not. To measure the strength of employer brands, we asked students in MBA programs to rate the attractiveness of prospective employers. A BCG analysis of 39 global companies over the ten-year period from 2003 through 2012 found a positive correlation between the strength of employer brands and the average growth in total shareholder return (TSR)..

We found that the correlation between an employer’s brand and TSR was stronger at companies with a strong employer brand than at those with average or poor ratings. Moving into the top leagues of employer branding is, therefore, worthwhile not only from an HR perspective but also for its medium- to long-term impact on company value..

Not every company must be a leader in all THREE Brand-management disciplines…But all companies must gain a basic command of each, as they discover how to differentiate themselves in the areas important to their business. Only then will they achieve more integrated and consistent brands..

The Power of Employer Branding:

Even though it has become central to how a brand is experienced, employer branding is frequently the missing ingredient in achieving the promise of one branding. Employer branding represents a company’s brand promise to the people who work there, the people who want to work there, and the people the company wants to recruit. HR leaders cite employer branding as a high priority, but not even 10 percent of prospective employees during job interviews know the key elements of an employer’s brand, according to one European survey.

To succeed in today’s complex business environment and deliver a unified experience across all the brand dimensions that are important to future success—especially through its people—every company needs to define its unique advantages for employer branding and then work hard to cultivate these differentiating factors more effectively. (See Exhibit 1.)

To discern how companies are giving employer branding an equal place inside a unified brand, we interviewed executives in the European operations of ten global companies with leading brands. In our work with companies around the world, we have found these leaders’ insights to be broadly applicable to many other regions.

Consider the success of the employer-branding campaign recently launched by the adidas Group, the world’s second-largest manufacturer of sporting goods, with €14.5 billion in sales; 50,700 employees worldwide; and a brand valued at $7.5 billion by Interbrand as of 2013.

In 1998, Matthias Malessa, chief HR officer of the adidas Group, established an HR marketing department that focused on its external presentation as an employer. “Today, employer branding is a perception index of people inside the company that projects to the outside and says, ‘Check this out. This is how it looks here. If you think it looks good, join us. If not, we’re not for you”..

For the first time, the features of the campaign were developed with employees on the basis of their experiences working for adidas. The company surveyed employees of all its brands worldwide. Five main branding messages resulted…Each country has the flexibility to highlight the message that has priority for the employees there..

“More and more young employees are demanding that their voices be heard,” says Malessa. “I ask my people, ‘How do you perceive this company?’ Then I build my employer-branding story based on what they say.” For instance, one message involves social and environmental responsibility. The motto “to make the world a better place” connects this message into a unified product-, corporate-, and employer-brand strategy..

The success factor is that employees are free to share their experiences with the adidas culture online. “In the digital age, it’s important to win over your employees as brand ambassadors, but for it to function, there also have to be rules,” says Simone Lendzian, corporate communications manager. Social-media guidelines orient employees to their rights and responsibilities when communicating as brand ambassadors during work hours..

The company had a lot of discussions about whether each brand in the adidas family—which includes Reebok and Rockport in addition to adidas—needed its own employer branding. “We believe it all has to flow into one employer brand that is all-inclusive and covers the entire company,” says Malessa..

Six Guiding Principles for One Branding:

To put one branding into practice, a company must keep in mind six overarching principles about how employer branding relates to its overall brand portfolio.

Credible positioning starts with a well-defined process. At the heart of employer branding lies a convincing employer value proposition (EVP): the promise of value that employers make to their current and future employees. The emphasis should be on the uniqueness of the company. Only with a differentiated strategy can a company achieve competitive advantage.

To ensure that the EVP is relevant and differentiating, it must be based on solid data and integrated into the overall HR strategy process. First, market research compares the internal understanding of the company’s current positioning with the motivations and needs of external target segments. This is translated into a credible brand position and concrete actions and then anchored in the company’s organization structures, roles, and responsibilities. (See Exhibit 2.)

Employee motivations guide Employer Branding - to attract and retain good people, a company must appeal to both logic and emotion. Effective employer branding uses a “double perspective” of internal and external views to discover the elements of the brand experience that drive engagement among existing and prospective employees…Qualitative and quantitative market research can identify motivations that fit the brand, whereas creative techniques can uncover even deeper insights. Rather than simply delegating market research to an outside organization, all internal and external stakeholders should be invited to speak their minds through an active dialogue with the marketing, HR, and strategy departments..

Only a brand that is lived every day can be experienced - Employer branding can be only as strong as the health of the company’s culture.A true standout is the culture of Google, the world’s largest Internet company by market capitalization, with $50.8 billion in revenues; 45,000 employees worldwide; and a brand valued at $93.3 billion by Interbrand as of 2013. “Our employer value proposition is the result of our company culture as we live and experience it,” says Frank Kohl­-Boas, Google’s head of HR in northern Europe. “As our motto says, ‘Do cool things that matter.’ I am convinced that you can recruit and retain knowledge workers only if you give them the room they need to think freely and you offer them interesting work. If you do this, candidates and employees will say, ‘I can earn money elsewhere, but where else can I be a part of things, be myself, and grow ? ’”

At Google, responsibility for employer branding resides in HR, because it is understood less as a marketing task than as the management of corporate culture. A core team, under the leadership of a chief culture officer, works with local culture ambassadors who support the topic voluntarily in addition to their core jobs. The goals are to find the right people to hire, to ensure the internal multiplication of knowledge, and to provide the freedom for product discovery and invention..

“We don’t do any big marketing campaigns—neither for recruiting nor for Google as a brand,” says Kohl­-Boas. “Instead, we invest in employees who develop the brand. We trust that a lot of people will come into contact with our products and associate the company with the quality of our products. If users like our products, the customers and shareholders will come.”

Employees are the best brand ambassadors - The most authentic sources of employer branding are employees who can communicate credibly about the company and make its culture tangible..

Consider eBay, well-known as a global leader in online retailing and payments, with $16 billion in revenues; 30,000 employees worldwide; and a brand valued at $13.2 billion by Interbrand as of 2013. At eBay, employee referrals are the most important recruiting component by far. “When you shape your employer branding out of the culture and put your people at the center of it, the advantage is that you can motivate them to channel their pride by recommending the company,” says Tobias Hübscher, eBay’s senior manager, European employee communications.

“Referral campaigns save headhunter fees and ad campaign costs and helped us get budget for employer branding and resources for talent acquisition,” he adds. “Basically, we see referrals as being a lot more effective and working better in the recruiting process.”

Social media is only one tool in the toolbox –  Despite all the hype about social-media platforms such as Facebook, YouTube, and Twitter, every channel must be closely analyzed for its benefits and risks. If a company does not have confidence that it can present itself authentically and engage in open dialogue with consumers through certain mediums, it should not use them until the advantages outweigh any potential damage.

The social-media strategy is well defined at Heineken International, the world’s third-largest brewing company, with €19.2 billion in revenues; 85,000 employees worldwide; and a brand valued at $4.3 billion by Interbrand as of 2013. “When it comes to social media, you have to know exactly what you want,” says Dario Gargiulo, global social-media manager at Heineken International. “A lot of companies do social media only because they think it’s good to have a presence everywhere. Instead, you have to use every social channel differently and with a specific aim. You must take the time to find out which channel should be used for which message.”

Gargiulo recommends focusing on the brand message and consumer attitudes on social media rather than communicating all of the company’s activities. “In social media, you immediately get consumer reactions about what’s important and what’s not,” he says. “It’s about the connection with real life.”

To integrate brand management disciplines tightly, stay loose - The players in one branding are less like a conductor-led orchestra than a leaderless jazz band. In the latter, the optimal combination of players is more important than who leads at any point in time. Well-executed examples of one branding show that there is no universal solution: although HR is often in charge—for instance, at BMW and adidas—several companies we studied maintain an ongoing, constructive conversation among the different components of branding, including marketing, communications, strategy, and HR. The corporate brand often takes the lead when the path forward is not clear.

At eBay, employer branding is jointly managed by the HR, talent acquisition, communications, and marketing departments and covers all eBay brands. Both internal employer culture and external campaigns are steered by communications in the local country unit.

Regardless of the organization design, marketing and HR must work together as equals. Each of the functions has plenty to contribute: HR has the competencies needed for strategic personnel planning and the ongoing development of company culture. And marketing can bring its “detective skills” to the table—by feeling out and establishing a unique positioning for employees and job applicants..

The era of one branding is dawning. Employer, corporate, and product branding will only grow more closely integrated..

Although we see no one-size-fits-all strategy that can address all the challenges ahead, we have observed this about the leaders: one branding works only if executives in charge of HR and the brand disciplines make it their common goal and have the courage and flexibility to work together.

Companies that are willing to cross organization boundaries and experiment with this new approach now will discover the proven benefits of one branding. Those that do not move in this direction risk falling behind their more integrated and nimble competitors..!!

How “Indian QSRs are going social ? ” | by: Nusra | Restaurant India

Indian Quick Service Restaurant (QSR) segment has seen many New Brands making inroads into the market…Indian QSR market has remained largely unaffected by the economic slowdown and touched nearly around $50 billion from Rs $35 billion in 2013. The segment is growing at a very fast pace…!!

Brands on demand:

Indian fast food majors like Cafe Coffee Day, Yo! China, Haldiram’s, Nirulas, Sagar Ratna and Bikanervala have met all the global necessities to meet the demands of the local customers, who are becoming an adaptor of global QSR outlets. Not only this, the regional QSR chains like Shiv Sagar, Bangs and Ammi’s Biryani created a milestone in competing to their foreign counterparts, but have also adapted their strategies on how to target the over growing demands of their customers..

Meanwhile, we have seen that, global players have tweaked their menu keeping in mind the taste and preferences of Indian customers. We have seen that major global QSR chains, which are entering India, have to localise their offerings before establishing themselves here..

Indian chains have now realised that people here are rushing towards convenience and value that these QSR chains offer and there is a wide gap in the market in terms of authentic Indian Cuisine being served in a quick service format and thus, they ventured into Indian QSR segment to address the local customers with its Innovative concept.

“The Usp of Hello Curry is ‘Indian Food with western quick service efficiency’, many of the QSRs present nationwide today are catering a niche with western products. Hello Curry will be unique with its positioning as the first QSR with complete range of Indian cuisine,” says P Sandeep, Co-Founder, Hello Curry..

Placing it Right :

Quick service is one of the challenges Indian QSR players are facing with Indian food, as the main preparation itself takes 15 to 20 minutes for preparing a dish. The restaurants have to innovate on processes and technology to develop ways to serve a customer flat in 2 minutes across the counter or 30 minutes in case of a home delivery.

After years of learning from global players, Indian QSRs are now quick to adapt to social media. They are now trying their hands at cracking the social recipe to success by posting new recipes on Facebook and Twitter or promoting it through Instagram and they are becoming quite close to cracking the code of the social marketing strategy which entered India via global route.

“As we are all young entrepreneurs, we are from the tech world of today. Hence, social media is one of the biggest assets of marketing. We are available on Facebook, Instagram, Zomato and we are connecting our consumers through WhatsApp. We are also doing PR and media activities, but I am not in the mainline PR advertising because I believe that word-of mouth is the best tool for advertising, where food works as a marketing tool itself,” says Sachet Shah, Go Panda (one of the partner).

While many international chains have set its footprint across the country, the Indian home grown chains have fought bravely to catch up with them. Cafe Coffe Day, Yo! China and Haldiram’s have set the traditional scene in India and are also leveraging social media by rightly placing themselves in the social gathering.

“There are many reasons for the success of our restaurant. But the major reason is that we operate in the Chinese food segment, which is the most desired cuisine among youth as they are the main consumers today. When we talk about eating out trend, I think we are operating in a segment which is massively catering to the youth. We create fun at our restaurant, we are value for money restaurant, our restaurants are trendy, we offer innovation and are present at the right location. The strategies help us gain an edge over others. We are here for 11 years building brand because brand brings consistency and the ability to stay requires time,” shares Ashish, MD & Co-Founder, Yo! China.

Thus, we can say that the growing trend in the QSR segment is becoming more of a social engagement rather than restaurants coming up with new products and keeping it to their specific target group…!! 

The “State of Strategy Today” : Good strategy is worth doing well | A.T. Kearney

In a study performed, we found a strong correlation between a company’s total shareholder returns (TSR) and its planning horizon…Those with longer horizons saw stronger returns than those with shorter…!!

We were not surprised then when our latest strategy study found a similar correlation. Only this time, the comparisons are between successful and unsuccessful strategies. Of companies with longer strategy cycles—five years or more—85 percent see beneficial results. For companies whose strategy cycles are less than five years, 53 percent are successful. Interestingly, there is little difference between companies that take an ad-hoc approach to strategy (46 percent) and those with planned strategy cycles of less than five years (47 percent)…

This last point is reassuring, as it suggests that a properly executed strategy is worth pursuing. Just 6 percent of companies have strategy cycles of more than 5 years. It can be argued that strategy cycles are more important in today’s competitive environment or, as one study participant says, “To succeed today, we need to innovate, and innovation requires strategy and commitment. So it makes sense that committing to a strategy over time results in success over time”…

Strategy is more difficult now..When working on consulting engagements, our clients sometimes complain that it’s much harder now to craft powerful and easy-to-communicate strategies. “Strategy formulation and deployment is a complex, moving target,” explains one CEO. Another blames the difficulties on what she calls “an ever-changing business environment that requires spending more resources on strategy.” Our study findings reflect the same frustrations: 62 percent of business executives say strategy has become more complicated over the past decade, and 74 percent say complexity forces them to spend more time and effort on strategy formulation. Yet, despite these increased efforts, 46 percent of strategies fail to meet expectations..

Interestingly, C-suite executives are much more optimistic about the effectiveness of their companies’ strategies than those in management…Indeed, 81 percent of executives believe their strategies are meeting or exceeding expectations, while 48 percent of those at the management level are less optimistic (see figure 3). Further, this C-Suite misconception is even greater for companies that are lagging their peers as almost 100 percent of executives believe their strategies are working just fine, while management is much more skeptical..

Agility to the rescue – maybe It is commonly accepted that today’s business environments are fast changing and dynamic, and much more so than just a few decades ago. These tumultuous conditions have caused some executives to question whether strategy is even possible anymore. Isn’t a strategy outdated before it can be implemented? Aren’t we better off to focus on agility in order to capitalize on emerging trends faster than peers? These are some of the questions we heard. We put this thinking to the test with surprising results: More than 80 percent of global executives consider agility as important, or more important, than strategy when it comes to securing a company’s future success. And only a slim 19 percent believe a strategy-induced competitive advantage is still possible (see figure 4). In the minds of business leaders, it appears that strategy is failing…

figure4

However, a deeper dive into the survey data finds that “agility as a substitute for strategy” notion is flawed. We wonder if it isn’t simply a self-fulfilling prophesy :  Those who believe agility is the foundation for success have failing strategies, while those who believe strategy is a source of competitive advantage, have exceptionally successful strategies. The more interesting question, which begs further investigation, is in which direction the causality flows: Do companies have trouble formulating and deploying strategies and so turn to agility? Or, does a focus on agility as the answer to today’s challenges lead to the demise of strategy? Does a string of successful strategies mean strategy is the answer to all that ails an organization ??

What’s to blame for strategy failure?

Judging by the responses of our study participants, strategy failure is an emotional topic. One participant puts it this way : “In large organizations, strategy formulation is too complex and too top-down, leaving the rest of the organization to play catch up. And before they can do so, the next strategy is being rolled out.” Another says: “Strategic planning often takes place in an ivory tower by individuals who haven’t a clue what happens at the implementation level.” These and other comments suggest that the interface—the handover—between strategy formulation and deployment is to blame for failed strategies. Our findings confirm this. When asked to identify the trigger of a failed strategy, 7 percent of executives point to formulation, 6 percent point to deployment, and 86 percent say it is a mix of the two (see figure 5)..

figure5

Strategy formulation: What goes wrong?

If there is ever a need for knowledge, experience, and preparation, it is during strategy formulation. When asked about their strategy formulation failures, most executives complain that it is an insufficiently inspired, unrealistic, impractical, and detached process :

  • Lack of understanding of future trends (88%)
  • Little understanding of internal capabilities (87%)
  • Too much top-down approach (84%)
  • Not enough logical thinking (84%)

One interesting finding is the conflicting perspectives about the role data analysis plays in a failed strategy formulation process. Some blame “too much data analyses” while others say there is “not enough data analyses.” The reasons for the different views depends on the participants’ backgrounds. For example, many in the too-much-data group have firsthand experience in data analyses of the “boiling the ocean” type—in which substantial efforts yield few real insights. The other group is accustomed to formulating strategy using strategy statements that are not backed by sound financial justification or based on quantifiable competitive opportunities..

Several study participants consider secrecy an issue…“The C-suite is afraid competitors will learn our strategy and so do not involve middle-level managers as much as they should in developing the strategy,” explains a manager. “Clearly, keeping our organization as much in the dark as our competitors about our strategy is not a fast lane to success”..

Strategy deployment: What goes wrong?

Many of the reasons for failed strategy formulation are also attributed to failed deployments. For example, a strategy might be too ambitious and broad for the organization, too narrow to cope with the full breadth of changing market conditions, or deployed from an impractical top-down perspective. “Strategy deployment is now our greatest challenge,” explains a CEO. “Market conditions require a more aggressive strategy, but execution has not changed.”

Not surprisingly, reasons for failed deployments have more to do with the handover between strategy formulation and deployment:

  • Lack of internal understanding of the strategy (90%)
  • Lack of internal capabilities to execute the strategy (90%)
  • Lack of ownership (86%)

This makes for bewildered, disenfranchised, overwhelmed, and under-supported deployments. As one manager admits, “We underestimate the combined effects of overlapping initiatives on the same group of people”..

Gauging the future -

Study participants largely agree that a better understanding of future trends is a prerequisite for sound strategy formulation: “Our strategies fail at the development stage because we do not accurately determine where the market is heading in the next three to five years.”

Not surprisingly, over the last decade many companies have increased use of future-focused tools such as fore-sighting, trend analyses, and scenario planning (see figure 6)..

Organizational inclusiveness -

Involving the organization in strategy formulation resolves the handover issue between formulation and deployment. “Strategy that doesn’t make it out of the boardroom isn’t really strategy,” admits an executive. “Attempting to make it purely process-driven overlooks the importance of the ‘goodwill’ factor—the people who actually deploy the strategy because they buy into it, and not just because it is their job to deliver it.” Our findings break down this thinking into a number of distinct points. At the base, is the conviction that involving more people with firsthand experience in dealing with markets, customers, competitors, processes, and suppliers makes for better and more practical strategies.

“Bringing in a general workforce opinion helps management make more informed decisions,” says a manager. “All levels of the organization can contribute to strategy formulation and implementation. Middle management and the workforce provide practical input.” Organizational involvement is also essential for making strategies sufficiently ambitious. As one executive says, “The most important area for innovation in achieving goals and targets are the skills and knowledge of staff. Without these, the top-down approach is doomed to mediocrity.”

Our findings back up these observations : Two thirds of companies that pursue meaningful organizational inclusion in strategy formulation have successful strategies. Yet, involving the workforce doesn’t just make strategies better and more practical, it also lays the groundwork for engaging the right people in strategy deployment: “We involve our people at all levels in strategy development and find that innovation and diversity of ideas are pluses, both in adopting change and in people acting as change agents. An engaged individual is more resourceful than one who is simply employed.”

Organizational involvement is not a panacea. It provides innovation and practicality and, while it does not really affect speed, it does make things more complex (see figure 7). As one CEO says: “Consultation can be a bit of a pain and slow down a good planning operation, but the results following the consultation can make the extra time well worth it”..

figure7

Strategy needs to be led- 

not just decided on Despite the virtues of organizationally inclusive strategy formulation, the complexity that accompanies it can be an issue. For this reason, inclusive strategy requires top-down leadership, with top management establishing the ideas, ground rules, organizational teams, and direction that are critical for middle and lower management. Strategy, at its best, becomes less of a decision and more of a direction to inspire the organization to follow—not once, but on an ongoing basis.

As one CEO says : “Strategy & Leadership go hand-in-hand, you can’t have one without the other”…!!

The “Four Pillars” of “Blue Ocean Leadership” | INSEAD

To unleash employees’ untapped talent and energy, leaders need a strong repertoire of actions, not just better awareness and empathy…!!

Most leadership programmes are generally designed to hone the cognitive and behavioural skills of leaders with the implicit assumption that this would ultimately translate into high performance. Leaders are accordingly called on to develop traits like self-awareness, self-regulation, and empathy, for example, all of which require deep self-reflection and introspection to assimilate into a person’s being.

While cultivating such values are important, when we asked people to look back on these programmes, most reported not seeing a marked change in leadership caliber..

As one executive put it, “Without years of dedicated efforts, how can you transform a person’s character or behavioural traits? And can you really measure and assess if leaders are embracing and internalising these personal traits and styles? In theory yes, but in reality it’s hard at best.” In the end, millions of dollars were often spent, excitement was initially generated, but real leadership change did not set in..

Pillar One: Focus on acts and activities.

Blue ocean leadership, in contrast, is action-based, just as strategy is. It focuses on what acts and activities leaders need to do to provide a leap in motivation and business results driven by people, not on who they need to be. It’s the difference between being asked to be motivating versus being asked to provide those you lead with real-time feedback and best practice lessons that internally motivate and guide those you lead to up their game while feeling valued. The summation of these acts and activities is the leadership equivalent of a company’s strategic profile only here the aim is the development of a compelling leadership profile grounded in actions that are easy to observe, measure, and are directly linked to performance. This difference in emphasis has an important consequence for the time and resources needed to bring about a change for high performance. It is markedly easier to change a person’s acts and activities, than their values, qualities, or behaviours.

Of course, changing a leader’s activities is not a complete solution, and having the right values, behaviours, and qualities is important. But changing acts and activities is something that any individual can do, given the right feedback and guidance..

Pillar Two: Connect leadership to market realities by engaging people who confront them.

We observed that the leadership approaches employed by organisations are often generic and detached from what firms stand for in the eyes of customers and the market results employees are expected to achieve. At one insurance company, for example, call center personnel were tasked with fulfilling customer claims rapidly, while their frontline leaders maintained a hands-off approach to getting the claims department to cut checks rapidly.  Call center personnel rightly felt set up to fail, hugely demotivated, and let down by their leaders.

Blue ocean leadership, in contrast, focuses on what makes effective leaders, not in a vacuum but in light of the market realities their organisations confront and their direct reports must deliver on. Blue ocean leadership does not subscribe to a generic approach of common leadership acts and activities much as strategy does not subscribe to the same strategic profile across organisations. Instead people who face market realities are asked for their direct input regarding what acts and activities their leaders do that hold them back and what they need from their leaders but aren’t currently receiving to be their best and effectively serve customers and key stakeholders. When people are asked to help define the leadership acts and activities that will make them thrive and are connected to the market realities against which they need to perform, people get the type of leadership they and their organisation need and are highly motivated to share their energy and perform to the best of their abilities. As one employee put it, “I am under constant pressure to produce market results. I need the decisions and actions of my boss to support me to succeed in achieving market results. Currently there is a disconnect here.”

Pillar Three: Distribute leadership across different management levels.

While the market realities that organisations face today demand that there should be leaders at every level, the majority of leadership programmes we observed still remained largely focused on the top. But the key to a successful organisation is having empowered leaders at every level. It’s an illusion to expect or rely on top management on its own to deliver high performance especially as outstanding service all too often comes down to the motivation and actions of frontline leaders who are often in closest contact with the market. Executives need to push responsibility down in the organisation so that people on the frontline can deliver world-class service. Organisations need to develop effective leaders deep in their organisation by distributing leadership across different management levels, but that was often not the case.

Blue ocean leadership addresses this need by focusing on distributed leadership, not top leadership. By distributed leadership we refer to leadership distributed at the senior, middle, and frontline levels. Blue ocean leadership sees leadership as needed at all three levels to unlock the ocean of unemployed talent and energy that stretches deep into organisations. It also understands that these three levels are different enough from one another. Each requires a different leadership profile to be effective since each has a different positional power, task environment as well as focus on and interaction with the external environment. The factors that define good leadership are derived by the acts and activities leaders need to take at each level to create a leap in value for both employees and customers. In this way, blue ocean leadership, like blue ocean strategy, is about creating a nonzero-sum, win-win outcome. As we’ve heard repeatedly, “Almost everyone leads someone, not just the top. But when it comes to leadership, we focus on the top. The truth is 90% of our people don’t even have contact with them so how is their greatness supposed to transform our organisation? We need effective leaders at every level.”

Pillar Four: Pursue high impact leadership acts and activities at low cost.

Leadership practices are all too often seen and treated as something added on to people’s regular work. But with secretaries and administrative staff in most organisations already cut back to the bare minimum and the market reality intense, most leaders’ plates are already full. Finding the time to do one’s regular job is tough enough, let alone attempting to up one’s game. So a step-change in leadership strength rarely occurs. Time is just not enough.

Blue ocean leadership recognises this. It breaks the trade-off between impact and cost by focusing as much on what acts and activities leaders need to eliminate and reduce in what they do as on what they need to raise and create to unlock the ocean of unemployed talent and energy to drive high performance. In the context of leadership, high impact refers to achieving high motivation and engagement of people to drive business results while low cost refers to a lower investment of time by leaders, which is their most expensive and limited resource.

Our research has found that many of the acts and activities that take up leaders’ time actually work against them being effective and can even be resented by those below them, not appreciated by those above them, and are an energy sapper for the leaders themselves. By expressly eliminating and reducing these acts and activities, leaders’ time is freed to focus on new acts and activities that make a real impact on leading and producing business results driven by people. Without freeing up leaders’ time in this way, it is often no more than wishful thinking that leaders will have the time to up their game..

Conventional Leadership Development Appoaches Blue Ocean Leadership
Focus on the values, qualities and behavioural styles that make for good leadership under the assumption that these ultimately translate into high performance. Focus on what acts and activities leaders need to undertake to boost their teams’ motivation and business results, not on who leaders need to be.
Tend to be quite generic and are often detached from what organizations stand for in the eyes of their customers and the market results their people are expected to achieve. Connect leaders actions closely to market realities by having the people who face market realities define what leadership practices hold them back and what leadership actions would enable them to thrive and best serve customers and other key stakeholders.
Focus mostly on the executive and senior levels of organizations. Distribute leadership across all three management levels because outstanding organizational performance often comes down to the motivation and actions of middle and frontline leaders who are in closer contact with the market.
Invest extra time for leadership practices added on to people’s regular work. Pursue high impact leadership acts and activities at low cost by focusing as much on what leaders need to eliminate and reduce in what they do as on what they need to raise and create.

To put blue ocean leadership in action, we adapt the analytic tools and frameworks of blue ocean strategy to the leadership context. The result is the Leadership Canvas, the Leadership Profile and the Blue Ocean Leadership Grid all of which are grounded in acts and activities, easy to understand and communicate and that engage more people in an organization…The tools and methodology point is very important…

Without that it is very hard for research to do more than inform but practically address the challenges of leadership development for high performance…!!

“11 Leadership Lessons” from “Alexander the Great” | by: Manfred Kets De Vries | INSEAD

Visionary, Team-Builder, Mentor, he shows us some timeless Leadership-Lessons but also some Glaring Failures…!!

Although the “Great Man” Leadership theory belongs to the scrapheap of history, its allure continues to mystify…Underlying this theory is the assumption that if the right man (yes, it is often assumed to be a man) for the job emerges, he will almost magically take control of a situation and lead a group of people into safety or success. While such leaders are rare, there are times when a singular individual steps out from the crowd and serves as a paragon of leadership.

One such individual was Alexander the Great; one of history’s most famous warriors and a legend of almost divine status in his own lifetime. He falls into the elite category of individuals who changed the history of civilisation and shaped the present world as we know it.

From a Leadership perspective, it’s not very difficult to say that Alexander was without peer…He could be magnanimous toward defeated enemies and extremely loyal toward his friends. As a general, he led by example, leading from the front…!

Alexander’s reign illustrates a number of important leadership lessons which remain applicable to business and political chiefs today:

1. Have a compelling vision – Alexander’s actions demonstrate what can be accomplished when a person is totally focused—when he or she has clarity coupled with a ‘magnificent obsession’. Through dramatic gestures and great rhetorical skills, Alexander spoke to the collective imagination of his people and won the commitment of his followers..

2. Be unsurpassed in execution – Alexander not only had a compelling vision, he also knew how to make that vision become reality. By maintaining an excellent information system, he was able to interpret his opponent’s motives and was a master at coordinating all parts of his military machine. No other military leader before him ever used speed and surprise with such dexterity. He knew the true value of the statement “One is either quick or one is dead ” !!

3. Create a well-rounded Executive Team – Alexander also knew how to build a committed team around him and operated in a way that allowed his commanders to build on each other’s’ strengths..

4. Walk the talk – Alexander set the example of excellence with his leadership style; he led his troops quite literally from the front. When his troops went hungry or thirsty, he went hungry and thirsty; when their horses died beneath them and they had to walk, he did the same. This accessibility only changed when he succumbed to the luxury of Persian court life..

5. Encourage “Innovation” – Alexander realised the competitive advantage of strategic innovation. Because of his deft deployment of troops, his support for and reliance on the creativity of his corps of engineers, and his own logistical acumen, his war machine was the most advanced of its time..

6. Foster Group Identification – Alexander created a very astute propaganda machine to keep his people engaged. His oratory skills, based on the simple language of his soldiers, had a hypnotic influence on all who heard him. He made extensive use of powerful cultural symbols which elicited strong emotions. These ‘meaning-management’ actions, combined with his talent for leading by example, fostered strong group identification among his troops, and motivated his men to make exceptional efforts..

7. Encourage and Support Followers – Alexander knew how to encourage his people for their excellence in battle in ways that brought out greater excellence. He routinely singled people out for special attention and recalled acts of bravery performed by former and fallen heroes, making it clear that individual contributions would be recognised. He also had the ability to be a ‘container’ of the emotions of his people through empathetic listening.

8. Invest in Talent Management – Extremely visionary for his time, Alexander spent an extraordinary amount of resources on training and development. He not only trained his present troops but also looked to the future by developing the next generation.

9. Consolidate Gains – Paradoxically, three of Alexander’s most valuable lessons were taught not through his strengths but through his weaknesses. The first of these is the need to consolidate gains. Alexander failed to put the right control systems in place to integrate his empire and thus never really savoured the fruit of his accomplishments. Conquest may be richly rewarding, but a leader who advances without ensuring the stability of his or her gains stands to lose everything..

10. Succession Planning – Another lesson Alexander taught by omission is the need for a viable succession plan. He was so focused on his own role as king and aspiring deity that he could not bring himself to think of the future when he was gone. As a result, political vultures tore his vast empire apart after his death.

11. Create Mechanisms of Organisational Governance – The final lesson that the case of Alexander illustrates (again by omission) is the paramount importance of countervailing powers. Leaders have the responsibility to put proper mechanisms of organisational governance into place, using checks and balances to prevent faulty decision-making and the abuse of power.

Alexander began his reign as an enlightened ruler, encouraging participation by his ‘companions’—Loyal soldiers drawn from the noble families in Macedonia. But like many rulers before him, he became addicted to power. Hubris raised its ugly head. As time passed, Alexander’s behaviour became increasingly domineering and grandiose…

He tolerated nothing but applause from his audience, so his immediate circle kept their reservations to themselves. As a result he lost touch with reality, another factor leading to his failure to consolidate his empire…!!

“Global Luxury Brands” : Why India matters ? | by: Sapna Agarwal | Livemint

A look at the issues related to the potential of the ” Indian Luxury Market “, estimated to be worth $14 billion a year..!! 

A large and growing middle class in India is not only buying luxury goods and services but, inevitably in an Emerging Market the size of India, is also redefining the luxury market..

There’s an image of India—one that has persisted despite being a cliche—that is contoured by contrasts: Maharajas on the one hand, in full regalia and motorcades of Rolls Royce limousines, and poverty and hunger on the other. As India of the 21st century aspires to rank among global manufacturers and service providers, the luxury that once defined the Maharajas is a matter of widening aspiration, too..

The national airline—whose mascot was the Maharaja—no longer carries just the privileged few to the Swiss Alps and other luxury holiday destinations. A large and growing middle class in India is not only buying luxury goods and services but, inevitably in an emerging market the size of India, is also redefining the luxury market. But while India tops the list of tomorrow’s markets, it is yet to make it to the top in the priority markets list of luxury marketers..

What will it take for luxury marketers to tap into India? And what will it take for India to realize its luxury potential to the maximum? Experts and marketers gathered at a two-day Mint Luxury Conference in Mumbai on 31 October and 1 November to discuss some of these issues and challenges. Firstly, the definition of the Indian luxury consumer needs to change—start with banishing that cliched image of the Maharaja. “Luxury cannot be limited to just the very top or 0.01% of the population,” says Abheek Singhi, senior partner and director, Asia-Pacific leader-consumer and retail practice at consulting firm The Boston Consulting Group.

He estimates the Indian luxury market to be worth $14 billion. But for a country with a population of 1.2 billion, there are just 117,000 people who are classed as ultra-rich—people who have family wealth of over Rs.25 crore or earn Rs.3-4 crore a year, says a July report by Kotak Wealth Management. This segment of consumers prefers to do their luxury shopping abroad. In the local context, luxury denotes brands that globally are a notch lower than the finest, appealing to a wider audience of the top 1%, 5% or even 15% who have the aspirations and the money to buy them, said Singhi..

To grow the luxury market, “marketers selling in India need to be innovative and reach out to new consumers”, says Sanjay Kapoor, managing director of Genesis Colors Pvt. Ltd, parent of Genesis Luxury Fashion Pvt. Ltd whose portfolio includes brands such as Bottega Veneta, Burberry and Canali. According to Kapoor, luxury marketers need to continually “upgrade” consumers used to buying premium to luxury goods and services. “It’s a continuous process of educating people about brands to grow the existing business,” says Kapoor. Adding new brands and opening new stores is the business part of the same process..

There are FIVE Luxury Consumer Segments emerging in India, says Singhi : Classpirationals, who want to blend in with the classes; Fashionistas, or Trendsetters; Experiencers who love travelling, wine tasting, etc.; Absolute Luxurers for whom luxury is about exclusivity and customization; and Megacitiers—part of the global elite..

As such, the Indian luxury consumer is spread across the metros, tier-I and tier-II cities. “Close to 40% of the Indian luxury consumers are living outside of metros and shop on their travel overseas or in the metros,” says Singhi..

Firms seeking to expand in India speak of infrastructure challenges. For instance, India got it’s first luxury mall—DLF Emporio—in south Delhi in 2007. Now, there are just two more luxury malls in the country. “The biggest impediment to the development of the luxury market is the lack of infrastructure and an environment,” says Rahul Prasad, managing director (Asia-Pacific and Middle East), Pike Preston Partners Ltd, a boutique advisory firm on mergers and acquisitions in the fashion and luxury segments..

Meanwhile, with the new National Democratic Alliance (NDA) government in India, businesses are hopeful regulatory hurdles will be resolved. “The new government’s approach has energized a number of companies, including multi-brand retailers and international retailers..,” says Pierre Mallevays, founder and managing partner of Savigny Partners LLP, a corporate finance advisory firm focusing on the retail and luxury goods industry..

At the Mint Luxury summit, Nirmala Sitharaman, commerce and industry minister, agreed to look into the requirement of 30% sourcing from domestic companies for single-brand foreign retailers who are allowed to invest 100%..

The challenges remain daunting. According to Armando Branchini, vice-chairman of the Altagamma foundation, a conglomerate of several high-end Italian companies, there are 17 Italian luxury brands in India at the moment, a number that has remained unchanged since 2005..

British luxury brands are focusing their efforts in other markets such as China, says Charlotte Keesing, director at Walpole British Luxury, a consortium of British luxury retailers like Jimmy Choo, Harrods and Burberry. Eight years ago, India and China both were on the long-term radar of luxury product marketers..

Today, China has become one of the biggest growth drivers of such products, and India is yet to take off…“ There are only 18 of 90 British luxury retailers present in India today and less than a dozen are looking at entering the market in the next two years,” said Keesing…

“Mall Management” – The “New Success Mantra” for Malls In India | Realty Plus

The Indian #RetailMarket, has gone through a prolonged (and sometimes painful) process of transformation…With rapid development across the country, India has witnessed the emergence of a well-entrenched mall culture over the past decade….However, there are several malls in the country which are faring less than well…

Failing Malls – A Growing Problem :

The not insignificant number of under-performing malls in the country definitely gives rise to concern…There is no dearth of instances where #MallDevelopers, have scrapped the entire blueprint and business model and converted their malls into office spaces. The reasons for the lack of success of these malls vary..

Some of the challenges that the developers of these malls have not been able to address are providing for adequate parking and scientific people movement within the malls, coming up with a dynamic plan for upgrading facilities, attracting a suitable tenant mix and proper positioning..

Success Ingredients : 

There is now a distinct need for mall developers to introspect on the factors that contribute to either the success or failure of a mall. For instance, there is an increasing awareness among mall developers that leasing mall spaces as opposed to selling them is the way to go. Malls in which spaces are individually sold (or ‘strata sold’) tend to suffer from the absence of proper mall management – which is now the acknowledged fulcrum for success, regardless of how large or well-conceived the mall is.

There are basic parameters that mall developers must keep in mind at the very conception and design stage of their malls. Location is, of course, a vital ingredient for the success of any mall. Approach and accessibility, especially in terms of proximity to the key centres and ingress and egress of the mall, are equally important..

The mall must have adequate facilities and provide retailers with good accessibility to their stores, space for storage and staff utilities. Very importantly, it must get the parking equation right…

Untangling the Parking Knot :

A mall that does not provide sufficient and properly planned parking in India is headed for disaster. In India, the issue of parking is a challenge to both mall owners and customers. Creating parking facilities when the cost of land is high is a very capital-intensive decision for a mall developer. This is especially true if such measures are attempted to be enhanced in retrospect. As a general guideline, developer must provide parking while keeping the size of the mall in mind. The decision on how much is needed and how much is sufficient is a critical one.

Rotation of parking slots is another important function, as malls experience more footfalls on weekends, during which customers spend more time in malls. Parking must not become an issue in high traffic periods. If a mall cannot provide enough conventional parking, it must have innovative parking facilities such as multi-level and/or automated parking systems.

Since convenience is of prime importance in a mall, the access and exits to car parking is yet another factor besides the parking area itself. The more successful malls even provide valet service to attract more patrons by providing them with more ease of access.

While the future may bring malls that have public transport connectivity, we are not quite there yet. Metros and buses connecting directly to malls can bring down the usage of personal cars, and play a major role in be dealing with challenges such as parking and increased traffic. Until then, mall developers are constrained upon to make the most of existing infrastructure.

The Mall Management Solution :

The baseline philosophy behind the creation of any mall is that it must be a place that continually attracts people into its premises, keeping them engaged and tempting them to stay for longer periods. This cannot be done just by providing a massive number of shops. Today, Indian mall visitors expect various entertainment options and engagement mechanisms, as well. Malls cannot be just shopping complexes – they must be one-stop family destinations. If they fail at this, they invariably fail completely..

With these and other reasons why malls can potentially become under-productive and sub-optimal, mall developers are now discovering that professional mall management can be a catch-all solution. In fact, one of the most common causes for the failure of malls is that they were are not professionally managed and promoted. High-grade mall management is the single-most reason why some malls have managed to perform well even during the worst periods of economic distress..

Professional mall management is about a lot more than just keeping up the facilities in a #ShoppingCentre…It is about strategizing and implementing success formulae that have been specifically tailored to the mall. Often, a professional mall management firm can undo a significant amount of ‘done damage’ by reinventing the mall’s positioning, facilities and operations almost from the ground up..

Significantly, a mall management agency can result in operating costs reducing by between 5-7% in an up-and-running mall, and by up to 10% if it is engaged at the very inception stage. However, the cost-saving element is just one side of the story. With the implementation of professional mall management, even a languishing mall can be realigned into a destination that provides the needed success ingredients – and an overall ‘experience’ for customer..

A #MallManagement Agency can Re-engineer the shopping complex’ parking arrangements, tenant mix and internal customer traffic, and also assume the responsibility of promotional activities. Simultaneously, such an agency will ensure optimal staffing solutions and keep all facilities within the mall running flawlessly..

Not surprisingly, more and more Indian mall developers are now adopting the mall management mantra as a one-stop solution to ensure that their investments reap the best possible returns for them…!!