Succeeding In the Indian Market; It is all about People

Succeeding in India : It is all about People Key parameters that drive success in India: Being ahead of the curve in investment: Brand People Channels Focus on understanding the market and customizing for it Entry strategy driven from the Executive Suite People, People, People Confidential

Key parameters that drive success in India:

Being ahead of the curve in investment:

Brand

People

Channels

Focus on understanding the market and customizing for it

Entry strategy driven from the Executive Suite

People, People, People

Success in emerging markets is not a “given” anymore Average age especially in growth sectors for leadership position has dropped from 50+ to 35+ in the last decade. Focus on understanding the market and customizing for it Significant influx of managers from outside of India due to a growing stream of returning Indians Confidential Emerging Markets are constantly evolving and have very different characteristics from mature developed markets Says John Gierre, CMO of Alcatel-Lucent - “Indian market is unique in the sense you have so many different segments and levels of usage. On the upper end of the Indian market you have very sophisticated users who use the full set of applications. On the other end of the spectrum you have entry-level customers who have never used a mobile phone. So India represents a big challenge to develop a portfolio” The speed of change in the market is very often lost to old timers and outsiders “ The market is changing at the speed of nano-second. First the marketers should change their perception & start anticipating the future trends instead of predicting and analyzing the past. And secondly, the marketing activities should be developed in such a way that it appeals to the youth since consumerism is going to come from young Indians” says Dipak Jain, Dean of Kellogg School Of Management, about Indian market. Completely new enterprises, new generation leadership and change in mindset reduces value of long Rolodex.

Average age especially in growth sectors for leadership position has dropped from 50+ to 35+ in the last decade. Focus on understanding the market and customizing for it

Significant influx of managers from outside of India due to a growing stream of returning Indians

Success in emerging markets is not a “given” anymore New pricing models, engagement models, product and service expectations. Nokia 1100 ‘Made in India’ handset, with its anti-slip grip, dust-resistant body & torch light was designed keeping in mind Indian conditions and became a huge success Maruti 800 was positioned as an entry-level car. The company is unable to pull back this model because of huge demand despite so many other cars & models available as an option. Bharti was the first telecom service provider to outsource the network in the world. Local and global competitors Tata’s and Mahindra’s in the passenger car and SUV market ICICI, YES, HDFC, SBI and scores of other banks in the Banking sector Channel partners behave differently Most channel intermediaries are small and relatively unsophisticated operators, unlike the large chains commonly seen in the West.

Nokia 1100 ‘Made in India’ handset, with its anti-slip grip, dust-resistant body & torch light was designed keeping in mind Indian conditions and became a huge success

Maruti 800 was positioned as an entry-level car. The company is unable to pull back this model because of huge demand despite so many other cars & models available as an option.

Bharti was the first telecom service provider to outsource the network in the world.

Tata’s and Mahindra’s in the passenger car and SUV market

ICICI, YES, HDFC, SBI and scores of other banks in the Banking sector

Most channel intermediaries are small and relatively unsophisticated operators, unlike the large chains commonly seen in the West.

India Market: What has worked so far… The ones which got it right … Skoda, Hyundai, Suzuki – Cars Samsung, LG – White Goods Confidential Many successful global brands have not fared well while India has been a big success story for some: Nokia’s India success Story A complete "local" management style – with most of its senior management being local and empowered to make decisions that drive growth. Dedicated R&D & manufacturing unit; New products designed & manufactured for the local market Net Result: More than 70% market share in India, which means close to about 3.5 million handsets sales each month (Nokia adds about 5 million subscribers each month) and is voted the top brand in India The ones that faltered… Apple Dell

The ones which got it right …

Skoda, Hyundai, Suzuki – Cars

Samsung, LG – White Goods

A complete "local" management style – with most of its senior management being local and empowered to make decisions that drive growth.

Dedicated R&D & manufacturing unit; New products designed & manufactured for the local market

Net Result: More than 70% market share in India, which means close to about 3.5 million handsets sales each month (Nokia adds about 5 million subscribers each month) and is voted the top brand in India

The ones that faltered…

Apple

Dell

Executive Leadership is a key determinant of success in India A strong sales track record supplemented by great marketing acumen The ability to set up operations from scratch, and scale it quickly Can roll up his/her sleeve when required The network and relationship to bring the first set of partners and team members on board Is A Brand Ambassador for the company with the Government, Community Customers Partners Ensures that the India team works collaboratively with the rest of the global operations including other units in India. The ability to stand up and push for the right market strategy internally And someone who is a thinker and a doer Confidential Make the right investment in a C level executive; A “VP-Sales” for India The right leader will be one who has In short, you need an outstanding business leader who can think big and execute on the vision.

A strong sales track record supplemented by great marketing acumen

The ability to set up operations from scratch, and scale it quickly

Can roll up his/her sleeve when required

The network and relationship to bring the first set of partners and team members on board

Is A Brand Ambassador for the company with the

Government,

Community

Customers

Partners

Ensures that the India team works collaboratively with the rest of the global operations including other units in India.

The ability to stand up and push for the right market strategy internally

And someone who is a thinker and a doer

Talent Landscape in India Confidential Demand for senior talent completely outstrips supply At least two new companies start-up everyday! Boom environment! Very high, sometimes unrealistic, expectations among potential candidates Managing expectations early is CRITICAL! Very mature non-resident executives available in Middle East Asia and South East Asia with enough experience locally at different points in their career. Fixed & Variable pay structure; yet to catch-up Significant differences in the way executives make career decisions in India Very strong family influence – wife, mother, father, sibling etc. Relatively low sanctity in offer ‘acceptances’ Pick up the offer and then start thinking! Use offer as a way to negotiate with current employer! Fixed Compensation is the compensation people predominantly used to decide on the offer and variable pay is seen as ‘just a bonus’ Money is not as key a determinant as it is in US Span of control. Designation, Status, Hierarchy & Brand are important Responsibility, Job content and Growth potential matter a lot

Demand for senior talent completely outstrips supply

At least two new companies start-up everyday!

Boom environment! Very high, sometimes unrealistic, expectations among potential candidates

Managing expectations early is CRITICAL!

Very mature non-resident executives available in Middle East Asia and South East Asia with enough experience locally at different points in their career.

Fixed & Variable pay structure; yet to catch-up

Significant differences in the way executives make career decisions in India

Very strong family influence – wife, mother, father, sibling etc.

Relatively low sanctity in offer ‘acceptances’

Pick up the offer and then start thinking!

Use offer as a way to negotiate with current employer!

Fixed Compensation is the compensation people predominantly used to decide on the offer and variable pay is seen as ‘just a bonus’

Money is not as key a determinant as it is in US

Span of control. Designation, Status, Hierarchy & Brand are important

Responsibility, Job content and Growth potential matter a lot

What can you learn from others before you? [Nokia, IBM, Oracle – great market success stories you may want to emulate] Hire a strong business leader at the top Think big in terms of what the scale of the expansion can potentially be Do not underestimate! Treat hiring of the executives as strategic hires Pick the best people you can find Involve your global exec team in the interviewing and selection process Hire the Country Head as a C level executive on your team Very mature non-resident executives available in Middle East Asia and South East Asia with enough experience locally at different points in their career. Give importance to pedigree – hire people with the best educational qualifications from the top schools – IIMs, FMS, Bajaj etc. Cast the net wide to include outside India locations, when you look for key executive talent. Think differently ! Ensure that the executive has international, cross cultural exposure and experience Design attractive compensation structure & designation as per local norms Check references locally – this is critical

Hire a strong business leader at the top

Think big in terms of what the scale of the expansion can potentially be

Do not underestimate!

Treat hiring of the executives as strategic hires

Pick the best people you can find

Involve your global exec team in the interviewing and selection process

Hire the Country Head as a C level executive on your team

Very mature non-resident executives available in Middle East Asia and South East Asia with enough experience locally at different points in their career.

Give importance to pedigree – hire people with the best educational qualifications from the top schools – IIMs, FMS, Bajaj etc.

Cast the net wide to include outside India locations, when you look for key executive talent. Think differently !

Ensure that the executive has international, cross cultural exposure and experience

Design attractive compensation structure & designation as per local norms

Check references locally – this is critical

What can you learn from others (…contd) Confidential Mistakes you can avoid … Undue emphasis on candidate’s rolodex With Globalization, the entire business scenario has changed….for the good Global Indians coming back to India Highly skilled Indians moving abroad Availability of young CXOs & their capability to think laterally Executive mindset change – aggressive, multi-skilled, “think-big” attitude, entrepreneurial New generation business opportunities; possibilities for inorganic growth Failure to view the key India hires as STRATEGIC executive hires. Non-involvement of company’s senior global executives in the recruitment process; process followed akin to a departmental hire Sub-optimally transfer one of the company’s US based managers of Indian origin to head India operations Excessive micro-management of the India Office Underestimation of the speed at which the operations can / will scale, both in terms of breadth and size! Inappropriate compensation design for the Indian exec team Over pay; expat packages, over-emphasis on variable pay, etc. India is a “different” market Evolving market, where growth is still relationship-oriented Overtly aggressive tactics can fail miserably

Mistakes you can avoid …

Undue emphasis on candidate’s rolodex

With Globalization, the entire business scenario has changed….for the good

Global Indians coming back to India

Highly skilled Indians moving abroad

Availability of young CXOs & their capability to think laterally

Executive mindset change – aggressive, multi-skilled, “think-big” attitude, entrepreneurial

New generation business opportunities; possibilities for inorganic growth

Failure to view the key India hires as STRATEGIC executive hires.

Non-involvement of company’s senior global executives in the recruitment process; process followed akin to a departmental hire

Sub-optimally transfer one of the company’s US based managers of Indian origin to head India operations

Excessive micro-management of the India Office

Underestimation of the speed at which the operations can / will scale, both in terms of breadth and size!

Inappropriate compensation design for the Indian exec team

Over pay; expat packages, over-emphasis on variable pay, etc.

India is a “different” market

Evolving market, where growth is still relationship-oriented

Overtly aggressive tactics can fail miserably

We are Global Executive Talent (GET) Confidential Set up to exclusively cater to the unique executive recruiting needs of enterprises with global operations. Specifically, we work with American companies setting up offshore operations in India Asian companies setting up US sales and marketing operations. Start-ups Founded by Anuradha Parthasarathy ( Anu ) A graduate of BITS Pilani, Anu has over 20 years of experience in cross-border executive search based both in India and the US Having been involved with the Indian technology industry from its inception, Anu has a deep understanding of The Indian market for talent The complex cultural issues involved in cross border offshore operations and An excellent rolodex of contacts in the industry As a cross-border executive search firm, we help US corporations recruit senior executive talent as they set up offshore operations in India for Technology development Maintenance and tech support Customer support operations Offshore back office processing of business operations Sales and marketing into the Asian markets Asian companies recruit senior executive talent as they set up US Sales and Marketing offices. We have offices in Menlo Park (CA), Chennai and Bangalore (India). A unique Cross-Border Executive Search Firm, with a successful track record

Set up to exclusively cater to the unique executive recruiting needs of enterprises with global operations. Specifically, we work with

American companies setting up offshore operations in India

Asian companies setting up US sales and marketing operations.

Start-ups

Founded by Anuradha Parthasarathy ( Anu )

A graduate of BITS Pilani, Anu has over 20 years of experience in cross-border executive search based both in India and the US

Having been involved with the Indian technology industry from its inception, Anu has a deep understanding of

The Indian market for talent

The complex cultural issues involved in cross border offshore operations and

An excellent rolodex of contacts in the industry

As a cross-border executive search firm, we help

US corporations recruit senior executive talent as they set up offshore operations in India for

Technology development

Maintenance and tech support

Customer support operations

Offshore back office processing of business operations

Sales and marketing into the Asian markets

Asian companies recruit senior executive talent as they set up US Sales and Marketing offices.

We have offices in Menlo Park (CA), Chennai and Bangalore (India).

A unique Cross-Border Executive Search Firm, with a successful track record

Sample Case Study Confidential Client: A US-based global leader in the Data warehousing & BI space Business Situation Co.’s initial foray into the Indian market yields great results with high value customers coming on board Co. is convinced that there is a potential market with a latent demand for its products/ services Co. needs to establish presence in India in order to tap the latent demand What they wanted A Managing Director (Sales) in India How we defined the role Somebody with proven track record ! Demonstrable performance in Sales with ability to be hands-on initially and later on switching to a sales management role as the operation grows Strong information about the local market especially the buying process within large Financial services and Telecomm customers Able Leader (additional responsibilities of setting up office, growing team, etc) Aptitude and appreciation for Marketing (brand-building, PR, etc.) too How long it took us Sixty business days ! The Evaluation "GET's research team did a great job by identifying the top 6 candidates within a week. All I had to do was to pick the best. Strong processes, excellent contacts, thorough understanding of the job & professionalism are some of the traits that I liked with GET". - EVP-Global Sales

Client: A US-based global leader in the Data warehousing & BI space

Business Situation

Co.’s initial foray into the Indian market yields great results with high value customers coming on board

Co. is convinced that there is a potential market with a latent demand for its products/ services

Co. needs to establish presence in India in order to tap the latent demand

What they wanted

A Managing Director (Sales) in India

How we defined the role

Somebody with proven track record !

Demonstrable performance in Sales with ability to be hands-on initially and later on switching to a sales management role as the operation grows

Strong information about the local market especially the buying process within large Financial services and Telecomm customers

Able Leader (additional responsibilities of setting up office, growing team, etc)

Aptitude and appreciation for Marketing (brand-building, PR, etc.) too

How long it took us

Sixty business days !

The Evaluation

"GET's research team did a great job by identifying the top 6 candidates within a week. All I had to do was to pick the best. Strong

processes, excellent contacts, thorough understanding of the job & professionalism are some of the traits that I liked with GET".

- EVP-Global Sales

A few of our Searches for India Sales Leadership position: Confidential President Asia for Airwide Communication MD (Sales)-India for Goldengate Software Director (Global Alliance) and Country Head (India) for Informix Software MD (Sales)-India for Kasenna Inc. Country Manager (India) for Transera Communications

President Asia for Airwide Communication

MD (Sales)-India for Goldengate Software

Director (Global Alliance) and Country Head (India) for Informix Software

MD (Sales)-India for Kasenna Inc.

Country Manager (India) for Transera Communications

Other assignments Confidential Recruiting the core India team for Intellectual Ventures President (North America) for Bluestar Infotech Ltd . Managing Director (India) for Navis Software Vice President (Engineering) for Wyse Managing Director (India) for mFormation Managing Director (India) for Tensilica Senior Director (Engineering) for Webex-Connect program at CISCO

Recruiting the core India team for Intellectual Ventures

President (North America) for Bluestar Infotech Ltd .

Managing Director (India) for Navis Software

Vice President (Engineering) for Wyse

Managing Director (India) for mFormation

Managing Director (India) for Tensilica

Senior Director (Engineering) for Webex-Connect program at CISCO

www.globalexecutivetalent.com