Doing business in India:
              some reflections
& suggestions

          Achal Raghavan
     Strategy & Business E...
A note of caution

   My views are based on my 30+ years of work
    experience – in MNC’s and Indian cos.
   Many gener...
Contents
   Introduction
   India: Vision 2020
   India strategy
   Strategy implementation
   Understanding Indian o...
Introduction

   Economy: Consistent growth at 6-8%
    likely to be maintained
   Broad policy directions unlikely to c...
India: Vision 2020
 The vision and the journey
 “Making a successful transition to the
  knowledge economy – agriculture,...
India strategy


   Best left to individual companies and
    businesses
   But just one friendly tip (next slide)




 ...
India strategy: a friendly tip
    Treat your India strategy like a jazz
     tune, or an Indian “raga”


               ...
India strategy: a friendly tip
                     The main strategy, or the tune, or the “raga”, is
                   ...
Strategy implementation
    The Balanced Scorecard – Kaplan and Norton


              Financial


               Customer...
Strategy implementation
                                                          Caution:
                               ...
Understanding Indian org. culture
   Very comfortable with clear, defined
    structures
   Less effective in matrix org...
Understanding Indian org. culture
   Tremendous capacity for hard work and
    creativity – coupled with some reluctance
...
Ethics and governance
   Communicate company ethics policy clearly
       Written documentation
       Workshops
     ...
Customer perspective
   Indian customers globally aware, and very
    value conscious
       “Solutions” the only way to...
The Cultural Orientations Model*
                        Thinking                                       Environment




  ...
Indians: The Cultural Orientations
           Model*                                                     Caution:
        ...
Some suggestions for
effectiveness in India
   India = 25+ cultures and nations
   Build relationships, not just deals
...
Wish you all success!




                        18
Thank you!




             19
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Doing Business In India(Ver3)

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A management summary for global corporations wanting to do business in India.

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Doing Business In India(Ver3)

  1. 1. Doing business in India: some reflections & suggestions Achal Raghavan Strategy & Business Excellence Consultant Bangalore, India achalraghavan@yahoo.co.in www.achalraghavan.com 1
  2. 2. A note of caution  My views are based on my 30+ years of work experience – in MNC’s and Indian cos.  Many generalizations – please handle with care!  Look for this symbol: Caution: Generalization! 2
  3. 3. Contents  Introduction  India: Vision 2020  India strategy  Strategy implementation  Understanding Indian org. culture  The Cultural Orientations Model  Some suggestions  Discussions 3
  4. 4. Introduction  Economy: Consistent growth at 6-8% likely to be maintained  Broad policy directions unlikely to change – regardless of which Government is in power  A land of opportunity – but need to understand the culture, the people and the ecosystem  Very diverse market; generalizations are likely to be wrong 4
  5. 5. India: Vision 2020  The vision and the journey “Making a successful transition to the knowledge economy – agriculture, industry and services”  Recommended reading  India 2020: A vision for the new millenium APJ Abdul Kalam and Y S Rajan, Penguin India 2002  India’s new opportunity 2020: Report of the High Level Strategic Group All India Management Association (AIMA), with BCG 5
  6. 6. India strategy  Best left to individual companies and businesses  But just one friendly tip (next slide) 6
  7. 7. India strategy: a friendly tip  Treat your India strategy like a jazz tune, or an Indian “raga” Caution: Generalization! 7
  8. 8. India strategy: a friendly tip  The main strategy, or the tune, or the “raga”, is known before you start  A lot of “improvisations” will get introduced as you proceed  Be prepared for some latitude  Fix the “band width” within which improvisations will be Caution: Generalization! allowed (by corporate)  Empower the India team within band width  Due to improvisations, the tune (the strategy) may take longer to complete. Fix outer limit.  As in jazz, or ragas, execution discipline is everything! 8
  9. 9. Strategy implementation The Balanced Scorecard – Kaplan and Norton Financial Customer Process People Focus area for today 9
  10. 10. Strategy implementation Caution: Generalization!  Maximize involvement of parent org. executives at project stage  Short term postings by rotation (as development assignment)  Functional “buddy system”  Ensure diversity at senior & middle levels  India is no longer a “hardship posting”  Many MNC’s in India are virtually 100% Indian  Create “two-way traffic” of people (between India and global org.)  A great way to ensure alignment and global thinking; and leverage Indian talent globally  Be prepared to compete for talent 10
  11. 11. Understanding Indian org. culture  Very comfortable with clear, defined structures  Less effective in matrix organizations – though this is changing  Seniority still matters in brick-and-mortar cos. – though merit is beginning to win, esp. in new/ young industries  Public “face” crucial at the individual level; one-to-one meetings far more effective on performance issues Caution: Generalization! 11
  12. 12. Understanding Indian org. culture  Tremendous capacity for hard work and creativity – coupled with some reluctance to use systems and processes 100%  This also is changing, with ISO and other certifications taking hold  IT, manufacturing and pharma industries are leading the way in systems discipline Caution: Generalization! 12
  13. 13. Ethics and governance  Communicate company ethics policy clearly  Written documentation  Workshops  Sign-offs  Implement consistently  Provide “secure-but-open” communication channel and process for raising and resolving issues  Show visible top management commitment 13
  14. 14. Customer perspective  Indian customers globally aware, and very value conscious  “Solutions” the only way to get out of price wars / discount spirals  No time lag in rolling out global technologies in India- “Give me the latest”  “Design from scratch for India market” – often needed; can then become a solution for Asian / global markets Caution: Generalization! 14
  15. 15. The Cultural Orientations Model* Thinking Environment Structure Time Competitiv- Action Cultural eness orientation Individualism Communi- cation Power Space *from Danielle Walker, Thomas Walker and Joerg Schmitz- “Doing Business Internationally” 15
  16. 16. Indians: The Cultural Orientations Model* Caution: Generalization! Non linear, Thinking Environment multi-layer Harmony, constraint (not control) Control, hierarchy Structure Time Multi-focus, fixed/fluid, Competitive past/future Competitiv- Action Cultural eness orientations Work, relationship Individualist, Formal, indirect, “face”, bend the rules active silence Individualism Communi- cation Hierarchy, Power Space Private, public not equality *from Danielle Walker, Thomas Walker and Joerg Schmitz- “Doing Business Internationally” 16
  17. 17. Some suggestions for effectiveness in India  India = 25+ cultures and nations  Build relationships, not just deals  Recognize hierarchy  Be flexible; expect non-linearity  Task orientation follows (and flows from) people orientation  Play for the long term 17
  18. 18. Wish you all success! 18
  19. 19. Thank you! 19

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