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Contents
Executive Summary 2
Introduction 4
Conclusion 20
The New Manager
Executive Summary
India is at the cusp of significant
economic changes which have and
will continue to present both
opportunities and challenges. The
"New Indian Manager" will need to
scale up and broaden competencies
and skills as the globalization and
competitiveness of Indian business
continues. In our view, there are six
key characteristics of the new Indian
manager that will require significant
scaling in months and years to come
in order to keep pace with the
changing business needs.
d) Ability to innovate
e) Ability to emphasize on
productivity and efficiency
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1
India Brand Equity Foundation
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The New Manager
Introduction
The Indian economy has seen a shift from an agrarian to manufactured or serviced in different parts of the globe
a manufacturing and a services base. in a way which optimizes the cost and quality of goods
and services. For instance, Dell manufactures a PC with
In the old manufacturing economy the value proposition
components made in Taiwan, assembled in Malaysia and
of the firm was embedded largely in the capital outlay,
sold in the US. A credit card transaction which originated
ability to maneuver around regulation, political
in the US is processed through a global network in India
connections, utilization of physical assets and effective
with a customer service component manufactured in
cost control. The new economy of today thrives on a
Manila. Culturally, companies that operate in a
different set of variables like intellectual property, brand,
transnational environment will build working conditions
reputation, customer relationships, and service/product
under which people from all nationalities feel that they
differentiation. In the old economy, the employer needed
have an equitable stake in the corporation. As economics
to find a compelling reason to hire a manager. In the
is increasingly driving politics, the notion of a nation
new economy, the manager needs to find a compelling
state is receding, allowing for economic integration as
value proposition from the firm to accept an offer.
witnessed in EU formation and other trading
Globally, the world has changed, impacting business. arrangements across the globe from ASEAN to NAFTA.
Many large companies are no longer national as their
Mergers and acquisitions have seen a rapid increase over
supply chains operate globally with components getting
the last 20 years and this trend is likely to accelerate
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economy. This led to entry of a western counterparts and centers which provided IT or
host of multinational learned new management ITES work to their US parent.
corporations into India which techniques and styles which These multinationals
brought in capital, technology, placed a premium on brought in western style
management structures and individual competence, management and the need
styles which rewarded project management, people to network with people
innovation, productivity and skills and teaming. round the globe across time
efficiency. New management zones. Also, a lot of Indian
This trend was further
concepts introduced and managers traveled or
enhanced by a pool of
practiced by these MNCs also worked in the US parent to
Indians who had emigrated
spawned a new breed of Indian understand their culture,
to the US ten to fifteen years
managers. management style and
earlier and were now
values which were then
c) Emergence of Information associated with US
adopted back in India.
companies outsourcing their
Technology
IT contracts to Indian
India started becoming a hub for
vendors. Some of these
IT and IT enabled services (ITES)
people came back to India to
from the late 1980s. Companies
handle projects for their
such as Infosys, TCS and Wipro
parent US companies by
became household names and
starting Indian captive
made a lot of investors very
wealthy. This had a profound
effect on the Indian manager in
many ways.
i. Global customers
Customers for such service
providers were usually from
the US or Europe and
insisted on higher quality
corporate governance in
order to minimize their
vendor risk. They also
pushed vendors to develop
governance structures and
project management
techniques to monitor
project progress. Thus Indian
managers in the IT space
were exposed to their
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ii. Emergence of global and experience of operating the domestic market brought in
Indian vendors in the in multiple geographic their expatriate managers to
markets. The same logic was transplant their technology,
IT/ITES space
applied by Indian IT processes and culture to Indian
As Indian service providers
companies serving operations.
grew in scale and size, the
US/European clients. They
need for superior As Indian companies grew and
created a pool of Indian
management structures and their structures became more
managers who had served
skills to manage the size and complex, they felt the need of
overseas in areas like
complexity of enterprise- making significant enhancement
customer relationship
wide projects became in the investment they made in
management, sales and
increasingly important. training and developing their
onshore project
Indian service providers managers.
management.
started making significant
investments in training their e) Influence of technology
d) Emergence of large Indian
managers and exposing and communication
them to diverse market and Indian
The decade of the 1990s and the
environments. companies achieving new century saw significant
global scale advances in the way people
iii. Global mobility of Indian
The large Indian domestic connected with one another. The
managers market attracted global internet became more accessible,
While the WTO agreements
companies and enabled some telecommunication costs fell
facilitated the movement of
Indian companies to achieve significantly and video
goods and services, it did not
global scale. Large Indian conferencing connected people
provide for easy movement
companies across many as never before. This had a
of labor. Despite this, the
industries including the significant impact on the way
skill shortages in the IT space
automotive, airline, banking, managers collaborated. This
in the West enabled
telecoms and insurance sectors, made interaction across the
movement of management
often brought in global talent to organization easier; reducing
professionals to the US and
run their operations at senior cycle time for product
Europe. The MNCs operating
levels. A lot of these Indian development, new launches and
in India found an abundance
companies were buying project execution. The phrase
of low-cost and high quality
technology and designs from follow the sun became a reality.
labor in their Indian divisions
other parts of the world and had This required the manager to
which after relevant
a clear need for their managers scale up faster and essentially
grooming were ready to
to absorb the new inputs. This operate from any part of the
take up responsibilities of
required that managers had to world. The Global Delivery
their operations overseas.
adapt to work with their global Model was born.
This enabled the creation of
counterparts across time zones
a pool of Indian managers
and cultures. Many of the global
who had a global outlook
companies that were catering to
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Characteristics of
the Indian manager
post-liberalization
Managers Pre-liberalization Managers Post-liberalization
• Knowledge of rules, regulations and • Global outlook
bureaucracy
• Manages innovation and efficiency
• Ability to work in hierarchical environments
• Seeks empowerment
• Need to manage unions on one hand and
• Collaborates across hierarchies, works laterally
bureaucracy on the other
• Impatient with bureaucracy
• Little incentive for innovation, efficiency
enhancement • Expects to be rewarded for outcomes vs. inputs
• Silo focused
a) Continuous learning and the training of their managers to new manager is also less
ambitious manager handle more complex roles. accommodating of the
For the first time in the country's Companies are able to show an company's inability to
modern economic history, there upward career movement to enhance responsibility and
is a situation where the demand managers as they enhance their increasingly becomes more
and opportunities for Indian skills and competencies. The new impatient. At times this is
managers are more than the Indian manager is displaying the putting unreasonable pressure
supply - at least for those who fire to learn and upscale his skills on leadership to manage such
are able to operate in a new in order to stake a claim to expectations.
global context. This imbalance is higher level roles. Given the
There is a trend of people
driving companies to invest in opportunities in the country, the
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The New Manager
building competencies and management graduates who are diverse working teams because
expertise in roles that do not working in the customer service they feel that the solutions
necessarily supplement their function in contact centers. In provided by homogenous teams
educational background. This these cases the only are likely to be less optimal.
was first visible when the complementary skill is customer
The ability to be inclusive is a key
shortage of IT skills forced IT service orientation acquired in
competency for the modern
companies to look for students the hotel management business.
manager. The new manager
from disciplines other than
b) Teaming and collaboration works in a context of diversity -
computer science or electrical
The Indian manager is making a diversity of geographies,
engineering. Today Indian IT
transition from an individual cultures, specializations, socio-
companies have a large reservoir
performance based management economic context, working with
of talent in the core IT function
system to a system which alliance partners, etc.
which is drawn from engineering
rewards and recognizes the
disciplines like mining, textile, Teaming across cultures and time
ability to team with colleagues
metallurgy, mechanical zones is being driven by the
across the globe. The result of
engineering, etc. More recently following factors:
this teamwork is a pooling of
these companies have extended
diverse ideas and resources i. India's export
their recruitment to include
which adds higher value to the competitiveness in many
those from other fields. For
organization. In addition, sectors has gone up
example, in the ITES sector there
several recent studies have significantly. This has created
are companies which have
supported the idea that clients a pool of foreign clients who
created a pool of hotel
are looking for increasingly operate in different time
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zones and cultures. against global best practices. For critical. There are numerous
example, when companies look examples of such innovation,
ii. Relaxing import constraints
for technology, the arena for some of which are outlined
has meant greater level of
scanning for new technology is below:
import by India of
global. Similarly, when looking
technology, skills, services i. Supply of power is a huge
for talent, again the hunt is
and commodities which constraint in the Indian
global. Indian companies are
therefore fosters the need to economy. The cement and
increasingly taking pride in their
work with these vendors. iron and steel industry are
multicultural workforce where
The trend is visible across huge guzzlers of power.
they hire from world class
companies and industries. There has been a noticeable
universities and place them in
trend of reduction in power
iii. Increasingly companies are India. India is also becoming a
consumption in these
sourcing globally, requiring destination for graduates from
industries from 1995-2006 at
managers to deal with leading campuses. It is
a rate of 7.5% per annum
suppliers from across the interesting to note that some of
per unit of cement produced.
world. the graduates at leading US
The corresponding figure for
universities are willing to
iv. Indian companies themselves iron and steel is 3.5% per
relocate to India at a salary much
are suppliers of goods, unit of steel produced3.
less than what they possibly
services and talent to Indian managers have driven
could earn in the US, just to get
organizations around the innovation to get these
the “India experience” on their
world. results.
resumes. Consequently,
v. A large number of managers in India are getting a ii. Transport is a major
companies today are truly chance to work with foreign bottleneck in India due to
transnational. It would be colleagues not only when they poor quality of roads, lack of
difficult to identify them as leave India's borders but also connectivity and high energy
belonging to one country. within India itself. costs. Cement plants are
usually located closer to raw
c) Global Outlook d) Innovation
material sources, limestone
In the earlier section we looked The Indian manager is operating
mines, but then
at the global mobility of Indian in an environment which
transportation costs
managers. The important point increasingly rewards business
substantially increase
to note is that this mobility also results versus inputs such as
because the markets are far
brings a global outlook in the “hours worked”. We have all
from the raw material
mindset at home. Companies read about and/or experienced
sources. Ambuja Cement got
and the new Indian manager are the infrastructure issues facing
around the problem by
looking for best in class ideas India. In such an economy, the
designing “split plants”. The
and expect to be benchmarked need to innovate is even more
initial stages of processing,
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opportunities will be available to professionals will make them demand a healthy balance between
who have exposure to those businesses and their professional interests and personal goals.
geographies. Hence corporate alignment to work life balance and
accommodating special needs of talent will become
iii. India becoming a hub of innovation an increasingly important priority for companies in
If India is able to become the center of gravity retaining and developing the Indian manager.
for global innovation and creativity in several key
sectors, it will invite a kind of reverse brain drain Increasingly, we see a shift in power between the
wherein some of the best global talent may want organization and the employee. As an employee's
to make India a career choice. We are already negotiating power goes up, we will see him
seeing some global talent willing to relocate to demanding greater flexibility. Companies and
India to get experience here. Increasingly there is managers must learn to deal with this. Organizations
a trend of the non-resident Indian returning to will respond differently to these needs. In some cases
India. companies may respond to the need by devising
creative contractual obligations which will enable it
iv. Foreign Direct Investment (FDI) in India to accommodate such requests without losing
As more global companies outside the US and financially or otherwise.
Europe invest in India there will be a two way
flow of people leading to exchange of ideas and
outlook. The next wave of FDI will come in from
the cash rich Middle East which will seek to
invest in India. In addition, companies from
China and Southeast Asia will seek to capitalize
on the large Indian domestic market by selling
products and services to cater to the domestic
Indian market.
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c) Movement of labor from the public sector network of resources in the following ways:
Traditionally, the public sector in India has attracted
i. Engagement with leadership
and developed some high quality talent in basic
The new manager will try to engage with the
industries and in the Government. The Indian Armed
leadership to understand their perspectives and
forces, Indian Administrative Service, Defense
the path the company is taking and where he or
Research Development Organization, Atomic Energy
she will fit into the scheme of things. This
Commission, Indian Space Research Organization,
engagement will also solicit new ideas and
leading technical and management universities have
thoughts which the leadership may have
attracted some of the brightest talent available in
developed or is being exposed to. It will serve as
the country. While these organizations are
a conduit of ideas from the manager to the
remodeling themselves in order to attract and retain
leadership.
talent, the pace is not fast enough compared to the
opportunities being presented by the private sector. ii) Connecting with other talent in the
This is leading to an increasing challenge in
company
attracting fresh talent and the migration of current
In the overall scheme of networking, the new
talent to the private sector.
manager will seek to establish connection with
There are more and more instances of IAS officers his or her peers in the talent matrix of the
resigning from service to join the private sector in organization. This will enable the manager to
industries as diverse as real estate and banking. This develop new opportunities of innovation
trend started by retired officers joining the private through exchange of ideas and good practices in
sector. This is also being observed in the case of other parts of the organization.
officers from the armed forces; though they are
bound by stricter rules which act as a barrier to exit.
Some government owned institutions of engineering
and management are also finding it difficult to
attract fresh talent due to opportunities in the
private sector. Even existing faculty in some cases are
choosing to join the private sector.
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A case study-
Deloitte India Initiatives
Deloitte India7 has been cognizant of the rapid changes their global colleagues on a day to day basis and also
in the Indian talent market and has moved to align its have opportunities to work in other countries.
corporate outlook, programs and culture to meet the
challenge of attracting and retaining the right kind of c) Learning and development
talent it will continue to need in India and abroad. Some Deloitte India makes extensive investments in the
of the initiatives in this direction are outlined below: learning and development process of its employees
mandating certain hours in a year which are devoted
a) Mass Career Customization (MCC)™ exclusively to formal learning programs. The
MCC is a significant initiative being undertaken by programs are not limited to developing technical
the firm to promote the notion that “one career skills but increasingly include essential soft skills like
model does not fit all”. The pioneering thinking has communications, teamwork etc. A unique concept
been captured in a best selling book co-authored by developed in a couple of our offices is a
Cathy Benko, Deloitte's Chief Talent Officer in the US. Communication Gym, where a personal trainer gives
inputs to improve an employee's communication
This program is rooted in the belief that individuals
skills.
need individualized career choices and the
parameters in which people can choose to either d) Networking and collaboration
“dial up” or “dial down” including the pace of work,
The organization has facilitated networking of its
workload, location/schedule and roles in the
employees by developing a robust Intranet along the
organization.
lines of Facebook, called DStreet, which enables
To attract, develop and retain managers in the people to connect with one another. The program
future, we believe that organizations will need to has been taken a step further by connecting not only
provide career options to its employees which can be people to people but people to content through its
customized. knowledge management initiative.
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Conclusion
The dynamics shaping the "New Indian Manager"
changed significantly as India embraced the reform
process in 1991 to ignite the latent potential of the
Indian economy. By and large, these forces have helped
the Indian Manager to develop their competencies and a
global outlook unleashing a wave of creativity and
innovation in the domestic industry. It would be
important to watch how the manager's skill set broadens
on softer skills as the competence on the core domain
enhances.
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