Books; People; Ideas : These are few of my favourite things. As I live between day-to-day compromises and change-the-world aspirations, this is the chronicle of my journey, full of moments of occasional despair and opportune discoveries, of connections and creations, and, most of all, my quest of knowledge as conversations.
Subscribe to this blog
Follow by Email
Building Global Business: Five Sideways Reflections
Talking global is easy. In fact, it is not easy NOT to talk global. In this age of Internet, Facebook, Venture Capital, WTO, scale is the mantra: And, global is the only scale that really matters.
When I started working in England in 2004, I worked for a couple of interesting E-Learning companies for the first few years. They had good products and good people. I was greatly impressed by what they did, and with the sophistication of their technology and approach. They had large projects covering their cash flows, and were strategically poised to expand. But when I brought up the question of going global, given that I had first hand experience globally and thought these services would be quite compelling, the answer I got was "No Thanks!" These companies did not want to go global but rather service the small e-learning market in the UK that they knew well. They did not see the benefit of taking on the extra complexity and was afraid of 'global'. At that time, new in England, I treated this as a very English peculiarity. I got wiser afterwards.
In fact, soon afterwards: I was doing well in my job but I couldn't resist when I was solicited by an Irish businessman who wanted to set up a global training and recruitment chain. I jumped at it, because, at the time, that was what I really wanted to do. Looking back, that might not have been the wisest career decision I took, because I loved the technology environment and did not enjoy the culture of a recruitment company. But, since then, my work was almost always very globally focused: Its theme almost always was about taking concepts and ideas to new markets. And, unlike my experiences prior to 2004, when I worked for a large company going global, these were medium size firms and start-ups, who were in pursuit of scale. Some of these projects worked and became very successful: Others did not. But nonetheless, they all held lessons, which I now summarize along five broad themes.
But, before I talk about those five lessons, a personal note: I am at a point of time in my career that the novelty of air travel has truly worn off. Now, I claim, I get global. I have only worked in a handful of countries and not in all regions of the world, but I have been an eager student and now I know what works when someone is trying to get into a new country. My repertoire has some basic things, like respect, empathy and honesty, and I see that working everywhere. I am still fairly deficient in my global skills (when I can pause my life again, I would go back to reading Polish novels and practicing eating with chopsticks) but at least know what they are. I have come a full circle, falling in and out of love with the conversation about 'scale', the silicon valley way! From my experience, I know that the only way one can really 'scale' is by scaling one's mind, but that is almost impossible because global talk is, strangely, inimical to global thinking.
And, as I try to go local, here are the five lessons I learned while trying to play global:
First, Global Talk is usually reflected arrogance. While companies accept that the cardinal principle that all product development should start with the customers, they implicitly mean that this only applies to their home country customers. Large companies may have learnt the perils of this approach, but smaller companies, who need this even more because of their weaker brands, believe that such an approach is a large company thing: Being flexible hampers their dream of achieving scale quickly enough. Instead, they get into the missionary mode, and make the assumption that global customers don't know what they want. But without the magic and marketing budget of Apple, that's one wrong lesson to take from Steve Jobs.
Second, it is difficult to be Global. This may offend all those pursuing global dominance, but my favourite data point is that only 7% of S&P 500 directors are foreign-born. Given that we are talking about multinationals with huge global businesses here, this may surely reflect the difficulty of being global. In the small company setting, this is even more acute: The strength of familiarity that allow founding teams to work effectively also bars diversity. And, indeed, it is a strange phenomenon that while companies can't globalise internally, they constantly talk about global dominance outside. This mindset indeed comes from the mindset of capital, where a few elite bankers can dominate the global capital flows, but real businesses are far more messy than the value-neutral business of investing.
Third, some businesses are inherently more global than others. Capital flows are a great example, which can, under the current setting, can flow across borders pretty easily. Money has no colour, indeed, though most will want to keep it green. However, other real life businesses are different. We already know products may have to be different: McDonald's only succeed in India by designing a new range of products. Sometimes, it comes at the cost of efficiency: Subway creating separate counter for Vegetarians in India surely breaks their usual business model but they made that trade-off because they won't have a business otherwise. The businesses that require people may have to understand the cultures fairly deeply, including, as Devdutt Pattanaik will claim, the mythologies of the place, the 'subjective truths'. And, some of these businesses, including Education which I am involved in, is value-laden: Here globality is actively resisted. This is not just about cultural difference alone: Deep down, people don't want an education which clashes with their other values. Cultural mash-ups are easier to do than value mash-ups, and education, as it invariably becomes about values and attitudes, reaches an intensely local territory.
Fourth, being global means accepting variability of regulations. The globalisers usually treat regulations as an annoyance, a distraction, preferring to take a direct-to-consumer approach. This is indeed borrowed from the culture of capital, and the thinking system it has created. However, regulations are there for a reason, and in a large part, they may reflect a collective preference, though not an active choice. My favourite example is India's Foreign Education Providers' Bill, which has not got passed for over 15 years. This piece of legislation does not get passed because no one really wants it: It is not legislatively important, it does not change anything much for the students wanting education. Also, Britain's draconian immigration rules, which has affected the education industry there, broadly reflects people's social attitude. The Chinese censorship exists because the Chinese mind it less than we do. And, I am sure people in Dubai know how to access porn though we may be blocked out of them through filters. Law in many countries stand for different things than it would be in
Europe and North America, and the right response isn't to dismiss the
legal structure and focus on bypassing it. For me, being global is not about bypassing or dismissing the regulations at all, but understanding and respecting them - which may not necessarily mean following them blindly - and pragmatically adapting for them in the design of the business.
Finally, to put all of this together, being global means accepting the business model as a conversation. Business model, by definition, is not a spreadsheet, but a way of creating value and capturing a portion of that value for profit. Since the mechanics of creating value is different in different markets, the learning and conversation becomes of paramount importance in global businesses. And, as I see it, the world is converging on one plane, the culture of money, whereas diverging in other, the culture of living. Acknowledging this diversity, internally, in product design, in assessing the nature of the business and creating responsiveness to local regulations, are primary building blocks of successful global businesses.
So, in conclusion, the point is not to say that small businesses can't be global or global universities aren't possible (though I pretty much said that here). Indeed, one could argue that to follow the above suggestions would mean bidding good-bye to scale: However, to achieve 'scale' one has to 'scale' one's thinking. It remains perfectly possible to create a network of local engagements and relationships based on common values and weave it together in a global model: That, indeed, remains the only sustainable and scalable model of global business, one that's based on listening and engaging, and not preaching.
A friend has recently forwarded me a quote from Lord Macaulay's speech in the British Parliament on 2nd February 1835. I reproduce the quote below: "I have traveled across the length and breadth of India and I have not seen one person who is a beggar, who is a thief. Such wealth I have seen in this country, such high moral values, people of such calibre, that I do not think we would ever conquer this country, unless we break the very backbone of this nation, which is her spiritual and cultural heritage, and, therefore, I propose that we replace her old and ancient education system, her culture, for if the Indians think that all that is foreign and English is good and greater than their own, they will lose their self-esteem, their native self-culture and they will become what we want them, a truly dominated nation." The email requested me to forward me to every indian I know. I was tempted, but there were two oddities about this quote. First, the language, which
Introduction : The Business of Gift Giving Business gift giving has always been common and contentious at the same time. Business gifts are usually seen as an ‘advertising, sales promotion and marketing communication medium’ (Cooper et al , 1991). Arunthanes et al (1994) points out that such gifting is practised usually for three reasons: (a) in appreciation for past client relationships, placing a new order, referrals to other clients, etc.; (b) in the hopes of creating a positive, first impression which might help to establish an initial business relationship; and (c) giving may be perceived as a quid Pro quo (i.e. returning a favour or expecting a favour in return for something). The practitioners of gift-giving generally argue that doing business is often an aggregation of personal interactions and relationships, and gift-giving should be seen as a natural way of maintaining and enhancing these relationships. ‘Business gifts, especially one given in the course of the festive s
Buzzwords have disadvantages. Right now, experiential learning is one, and that means we put the label on everything and it stops to mean anything. Also, this means reasonable conversation about experiential learning becomes difficult - at times such as this, either you preach experiential learning or you are traditional, antiquarian and hopelessly out of touch. But, overlooking the limitations of experiential learning can cause big problems. Experiential Learning does many things - putting practice at the heart of learning is an important paradigm shift - but not everything, and it is important to be aware what it does not do. Usually, we equate the terms Project-based Learning (the method) with Experiential Learning (the idea) and Learning from Experience (the ideal), treating them as one and the same and using the terms interchangeably. Any talk about distinctive meaning of these terms is usually seen as pedantic, but really represent very different ideas about education.
In most societies today, making profits are accepted as moral, if not especially praiseworthy. This was not as obvious as it appears today – people used to be embarrassed about making a profit not so long ago. Crazy as it seems today, it is worth thinking why it was so. Profits, as economists will put it, is the reward for risk-taking, for putting a business enterprise together in the pursuit of an objective. In this definition, remember, profits are not what it is commonly understood to be – the gross middle-line towards the bottom – but a figure net of entrepreneur’s earning [wages for his labour], dividends and interests on borrowed capital, and provisions for building and other physical assets [a sort of rent, offsetting what these assets could have earned if leased out]. This pure profit – surplus – accrues to a business as a reward to its organisation, for the act of entrepreneurship itself. Economists were divided on how this surplus comes about. The conventional wisdom was,
Today, Helen Goddard, 26, a highly popular music teacher of a City School for Girls, has been sentenced to 15 months in prison. Her crime was to carry out a year long lesbian affair with one of her pupils, who appeared in the court and admitted that the affair was consensual and it was she who pressured Helen into the affair. For Helen, a bright musician and a devout Chistian, this is an extraordinary lapse of judgement. Also, she was teaching in the £13,000 private girls only school in London. She was surely aware what the consequences of her action will be. The fact that she still could not stop herself tells us that lovers do not always act rationally, something we always knew. There is more in this affair than personal tragedies. For a start, this has all the dramatic elements: a bright, beautiful teacher more in Julia Roberts mould [as in Mona Lisa Smile], a stiff upper lip school [not unlike Wellesley] and a story like Notes On A Scandal with an added twist. Indeed, Helen
Introduction Erna Petri née Kürbs, a farmer’s daughter from Herressen in Thuringia, arrived in Ukraine with her three year old son to join her husband Horst in June 1942. Horst, an SS leader inspired by Nazi ideologue Dr Richard Walter Darré, settled in the plantation of Grzenda, just outside today’s Lviv, to become a German Gentleman-Farmer. Erna saw Horst beating and abusing the workers in the plantation within two days of arriving there, which was, as Horst explained, necessary for establishing authority. Erna joined in enthusiastically, settling into a combination of roles of ‘plantation mistress, prairie Madonna in apron-covered dress lording over slave labourers, infant-carrying, gun-wielding Hausfrau.’  However, there were clear rules in the plantation, and Erna was very much expected to play the woman’s role of being a Cake-and-Coffee hostess. When four Jews were caught in the estate while trying to escape from a transport to a death camp, Horst told Erna and her female
A week into lockdown and things are beginning to change. Mornings are late, afternoons are lazier and evenings never end; meditations are filling out the time for Yoga routines and Netflix profiles are strewn with half-finished movies. This state-mandated, state-funded period of idleness is being likened to being called up to serve, but is nothing like that: Such a comparison is really an affront to the idea of service. Instead, this is just one long streak of panic; of the centre not holding and life not going on as usual. With the usual patterns and rules in suspended animation and business talk - and business - being rendered meaningless, space is opening up for unusual questions: Is Capitalism about to end? Is this the death of globalisation? Does it get uglier from here? My grandfather's generation would have scoffed at us. They saw through wars and pandemics. But, in fairness, we haven't had a life-ending crisis of our own. Notwithstanding the experiences of th
I wrote a note on Kolkata, the city I come from and would always belong to, in July 2010. Since then, the post attracted many visitors and comments, mostly critical, as most people, including those from Kolkata, couldn't see any future for the city. My current effort, some 18 months down the line, is also prompted by a recent article in The Economist, The City That Got Left Behind , which echo the pessimism somewhat. I, at least emotionally, disagree to all the pessimism: After all Kolkata is home and I live in the hope of an eventual return. Indeed, some change has happened since I wrote my earlier post: The geriatric Leftist government that ruled the state for more than 30 years was summarily dispatched, and was replaced by a lumpen-capitalist populist government. Kolkata looked without a future with the clueless leftists at the helm; it now looks without hope. However, apart from bad governance, there is no reason why Kolkata had to be poor and hopeless. It sits right
The ‘Why’ Question? Adolf Hitler was appointed the German Chancellor by President Von Hindenburg on 30th January 1933. This was an extraordinary turn of events. Previously, President Von Hindenburg consistently refused to appoint Hitler the Chancellor, despite the impressive electoral performance of NSDAP in July 1932, Hitler’s uncompromising demand of the Chancellor’s post and a repeat election in November 1932 which failed to break the deadlock. Explaining his refusal, Hindenburg wrote in a letter on 24th November, “a presidential cabinet led by you would develop necessarily into a party dictatorship with all its consequences for an extraordinary accentuation of the conflicts in the German people.” The question ‘why’ Hitler was appointed Chancellor, despite the President being acutely aware of what might follow, is therefore a significant one. The NSDAP had election successes throughout 1932, and was already the biggest single party in the Reichstag and various Landtags acros
Introduction: Hastings in the history of Indian Education Whether or not one includes Warren Hastings in the history of Education in India is a matter of perspective. If writing the history of education means writing the history of schools, the impact of Hastings' administration would be quite limited. If anything, the rapid implosion of local rulers in Eastern, Southern and Northern India during Hastings' tenure had meant a bleak period for the indigenous education system, as patronage and funds would have dwindled away for many of them. The Company administration really concerned itself with the schooling of the natives only after 1813, as Nurullah and Naik rightly pointed out ( see my earlier post ) and one can legitimately start the story at this point. However, if history of Education in India is to encompass the transformation of Indian Scholarship, on which foundation the new, colonial, system of Education would be built, the story must start with Warren Hast