“The New Corporate Environment” – A Session with D Shivakumar

DShivkumar The New Corporate Environment   A Session with D Shivakumar
This blog reflects the views from an incredible talk session by the Chairman and CEO – PepsiCo India, Mr. D ShivaKumar around the dynamic and the ever changing world we live in today. The business environment and the unforeseen forces which require us to reassess how we operate, motivate and stay true to the larger purpose while dealing with heavy attrition around us. His perspective was not only refreshing but gave us a realistic taste of the 21st century’s global corporate environment.

The list of the top ten companies in Fortune 500 today have newer and younger companies unlike the past. Google, Apple, Facebook to name a few reflecting the growing relevance of the tech world. The valuation and growth are exceptional and have created substantial impact in the Society. The digitized world is helping to converge our world with ability to connect with consumers across the globe with service and value never seen before. The world that surrounds us is changing at a lightening pace with technological evolutions creating a huge change in the way a corporate functions and deals with the pressures of such changing forces. The first data which is a critical reference to the changing impact basis Shiv is that today’s average age of survival is twelve years than fifty years few decades back.

These changes require us to rethink on how we stay on course, how we deal with the internal audience and achieve the larger purpose of our mission, without getting hit by a new age company that outsmarts us in connecting with a very different consumer. Mr. ShivaKumar walked us though his experience, inspirational situations and realistic examples of dealing with such challenges. I felt that I must share his thoughts for the benefit of the larger world that connects us, because his wisdom must cascade across corporates operating in the current ecosystem of dynamic

Let me walk you through some of the brief highlights of the talk:

New York Stock exchange has 5400 listed companies and in India, NIFTY 5700 (of which 60% are family owned) India had 900 million mobile subscribers, ten years back it was only 90 million (10 times growth connecting millions) There is a myth that in India, the consumers buy cheap products (they don’t compromise on quality) Today, one must first create the service team’s presence, before opening sales centers (Sales follow service) Three types of Indian consumers – The one who pays more to get an innovative product, second who gets worth of the price from the
product-Value Proposition and the third who pay less and for less & need based (small sachet of shampoo in rural markets)

Consumer is the king/Queen is the social voice from the social networking – Today’s views shared on web need listening and watching which is of tremendous potential (At Pepsi the Online Reputation Management is very robustly watched and also responded quickly if has merit) Employees aspirations are changing, the Millennials have average shelf life of two to three years.

Most CEOs today have an average life of three to four years. 94% of the Millennials wants to start their own company. Today HR must find solutions to retain these Millennials (Companies should think beyond three year contracts only) Focus needs to be more on skill development and leadership development. Exceptions today is the most important part of success, strategy is getting commoditized.

BPO, IT and Retail segment have attrition as high as 40% The hurried aspiration of employees is also leading to attrition, employees who have 25% of their EMI accounted in their take home salary, will most probably will leave the company early.

Identify, why people come to office- three reason: relate to the cause of the Company, good colleagues/friendly environment and progress. Eco system are emerging- Create it or else you shall vanish. Eg. #Pepsi tie up with Big Bazaar, Big Basket. Another example the way #Nokia, #Airtel and SKS finance created 3 million customer base in rural market through symbiotic partnership.

Strategic ability giving way to strategic agility.

Execution is the key factor to success, Example Patanjali Vs Maggi or Dabur Responsiveness is the key, responsiveness survey is conducted every quarter at PepsiCo – Team ranked on their responsiveness quotient for
serving internal and external consumers. Consumers sensitivity should be collective skill of the organization.
Org structure divide people and people are expected to unite structure. Leader should work on uniting the entire org and not only to maximize his circle only.

Parameter of success- #CEO has to manage multiple parameters today. The CEO’s three main ingredients of success – Collaborate (internal and external) , Execution and Ownership. Learning and unlearning – unlearning of old ways of working and learning the updated trends. Company fails because of two things – Arrogant leadership and inability to
unlearn and learn.

US Air Force- every day they evaluate their execution and learn to make it better (Companies should practice the same ) Celebrate failures too, this will help people to build more trust in the company. Pepsi Co – does job rotation with other companies like Tata and e-Commerce set-ups… this satisfies the desire for people to experiment other vertical and help reduce attrition.

Premium on #leadership- Employees put a lot of premium on leadership team- leaders must stand up for the Company.
All teams should discuss their ideas and execution plans and even if they get 60% agreement, the commitment should be 100% Leaders should be visible in the industry and in the market, helps to create better brand value of the Organisation.

My sincere thanks to Mr. ShivaKumar for sharing these thought provoking insights and I truly encourage everyone to think through them and adhere to them in building a business excellence environment both internally and externally.

Thought it’s a bit long blog befitting each and every insight, it will reflect a lot to calibrate our ways.

Thank you for giving it a glance.


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