Category: Opinions

Here is an article I came across on how organisations use their Compensation Philosophy to achieve organisation objectives and manage employees better. I quote
“The chain restaurant/retailers that maximize on their compensation philosophy have shown superior results in all areas of the business; achieving business strategies and attracting and retaining the highest performers. For example, McDonald’s Corporation created their philosophy around a program entitled The Plan to Win and Best Buy promotes reward flexibility and entrepreneurship for their employee base. Listed below are pertinent excerpts from McDonald’s and Best Buy’s stated compensation philosophies.

“Our executive compensation program is designed to support our business strategy based on the long-term plan we adopted in 2003: The Plan to Win. The Plan to Win focuses on maximizing customer satisfaction and strengthening our financial position. To achieve those goals, the Plan to Win emphasizes operational excellence, leadership marketing, innovation and financial discipline with initiatives implemented around five drivers of exceptional customer experiences – people, products, place, price and promotion – which we refer to as the ‘five Ps.’ When we adopted the Plan to Win, we also redesigned our Company-wide compensation program, which we refer to as our global compensation program, to further our strategic objectives under the Plan to Win.

In determining the amount and mix of executive compensation, we seek to achieve the following principal objectives:

a) To reward executives for supporting the five Ps and delivering profitable growth;

b) To differentiate rewards based on the achievement of Company, geographic business unit and individual performance goals so as to ensure that executive compensation is reflective of performance;

c) To achieve an equitable balance in the compensation levels of executives who have comparable levels of responsibility; and

d) To set compensation levels that enable us to compete for talent in a highly competitive global market, balancing this goal with the other business priorities we consider in allocating the Company’s resources.”

(McDonald’s Corporation – 2006 Proxy)

“We believe our success depends on employees at all levels using their unique strengths, experiences and ideas to foster innovation and build strong customer relationships. While our compensation and benefit programs are important tools in attracting and retaining talented employees, we also believe that non-monetary factors such as work environment, learning and development opportunities, and relationships between employees and managers are critical to provide a rewarding employee experience. Collectively, these elements comprise our ‘Total Rewards’ philosophy. We believe this company-wide approach to attracting, motivating and retaining talent is a competitive advantage.

Our Total Rewards philosophy seeks to:

a) Provide employees with a greater choice of rewards that are most valued by them;

b) Differentiate rewards to individuals, based on their contributions;

c) Encourage and recognize experimentation, entrepreneurship and innovation; and

d) Reward employee contributions for achieving strong financial and non-financial results.

We implement the Total Rewards philosophy by employing broad-based programs that are designed to align employee interests and create a common vision of success.”

(Best Buy – 2006 Proxy)

An organizational compensation philosophy is a vital tool for success. Taking full advantage of a well thought out and strategic program will set you apart from competitors in your business and in the market for talent.”

Another article that appeared in the first fortnight of August in Money Today.
here is the link- http://moneytoday.digitaltoday.in/getting-back-the-excitement.html

‘Can I get a Consultant deal from the agency?’
It is a question that I am often asked, primarily by senior creative talent in the advertising business.
They are not talking of being hired as a consultant in the way that clients hire agencies or other experts. It is about being a full time employee with the agency.
In the context of the current controversy raging in media, it seems an appropriate time to look at the issue in a more holistic context.

In practice, consultant/employee issue is one of compensation only
This is a system that started sometime in the 90’s and served as a compensation and talent acquisition innovation until it became par for the course.
Here is how the system came into existence:
– Taxes and statutory deductions (PF) in our country are reasonably high, particularly at the ‘creamy layer’ level. Salaries that sound wonderful when quoted at a gross level land up amounting to significantly less as ‘take home’.
– As the country started opening up and as salaries across most industries went up, advertising professionals, especially creative talent, started asking for more.
– There was already a system in some agencies of hiring freelancers on projects or on longer commitments. Such ‘consultants’ were paid a monthly or project based fee.
– Agencies started adopting a practice of offering some key talent ‘consultant’ deals. It was a ‘win-win’. The person got a lot more money in hand and was free to plan his or her taxes and other deductions the way he saw fit; the agency got by without having to increase compensation costs dramatically and shifted the burden of managing finance to the individual. For all practical purposes though, the ‘consultant’ still behaved and was treated like an employee.
– The agreement between organization and the individual was not one of employee/employer but service provider/service buyer and does not entitle the service provider to employee benefits (PF, Long term benefits, Group Insurance, ESOPS etc)

Is it a workable solution?
It worked wonderfully well but for a very short time. And the reason for its failure can be linked directly to the distortions that followed in implementation and the emotional quotient that was never factored in.
– It started as an innovation in a few places and was meant for a few people. It was such a good ‘deal’ that soon many more agencies adopted it and for many more people.
– There was lack of transparency. Some got it while others did not. This happened even in places where there was some kind of definition of who would be entitled to it.
– Even as the numbers became larger, in most places, it remained restricted for creative talent only. This has caused more heartburn and angst than is accepted by agency heads.
– By and large the Finance Heads were not comfortable with the system. They felt that even though it was legal, it was treading a line that could get the organization into trouble. Hence they were always keen to keep the numbers down.
– As the number of ‘consultants’ increased, it attracted the attention of the Tax Authorities and there were a number of ‘Scrutinies’ (official term for tax authorities visiting your office to look at your books and different from a Tax Raid) conducted at various agencies. The message was firmly passed on by them that the masquerade was causing a loss of revenue and was to be discouraged. This started the process of winding down the arrangement in many places.

I suspect that in the much publicised case at Lowe, we are seeing a play of the emotional and legal aspects.
Legally, a ‘service provider’ cannot demand part of the largesse that the ‘service buyer’ may come upon. However, just to add some fuel to the fire, companies have got around the issue of making special payments (paying annual incentives and bonuses for example) by getting consultants to raise an additional bill. So, it would have been possible to pay certain individuals, if the company so desired.
I have seen a satisfied smile on the faces of many people, at consultants not sharing in the bounty. There is a ‘you think you will always have the cake and eat it too? Serve you right!’ feeling. The ‘aggrieved’ consultant, who has always thought he is an employee is feeling cheated. It is clearly a failure of the system and not of individuals.

Quo Vadis?
So is this the death knell of the ‘consultant’ or the beginning of something new?
It should actually serve as a catalyst to move agencies towards questioning the whole philosophy and system of compensation and arrive at a more robust, transparent and modern method.

Here are some suggestions:

– Have a completely transparent system. If there are to be special privileges, let everyone know what they are and how they become eligible for it.
– High attrition levels are a reality. Why not look at time bound contracts with employees? This frees the company from long-term employee benefit costs and puts more money in the hands of employees. It is what agencies do in other parts of the globe. Contracts with clear deliverables from both sides will mean a better talent management system. Contracts can be renewed at the end of their term and renegotiated by both sides.
– Offer and negotiate a gross CTC. Break ups can be totally flexible within legal limits. The employee should be able to plan his finances according to his requirement and take full responsibility for that.
– Consultants should be truly consultants and not employees masquerading as consultants. We live in a country that has its laws and everyone should abide by it.
– With senior people there will be many takers for true ‘consultant’ deals. Many truly talented creative and planning people look to pursue interests beyond advertising after a few years. With flexi time and pay, advertising will be able to retain their interest in the business longer.
– Consider ESOPS/graded profit sharing as a retention tool.

Some of these measures require fundamental shifts in the way agencies are functioning and in the way one looks at the ’employer-employee’ relationship.There is a lot that the Indian advertising fraternity can learn from their own networks and from the way other industries have tackled compensation issues. I am heartened to see many leaders beginning to address these issues. Most of the industry, however, still has a long way to go. The time to act has been on the pause button for a really long time. Release it; there is a lot of catching up to do.

Abhijit Bhaduri is an acknowledged thought leader in the HR field in the country.

Abhijit did a Bachelor’s degree in Economics from Shriram College of Commerce, Delhi University in Economics and then did a Masters in Human Resources from XLRI, Jamshedpur. He has a Bachelors degree in Law also from the University of Delhi.

Abhijit’s career spans two decades across diverse industries and multiple countries. He worked for companies like Eicher Goodearth and Tata Steel and was part of the team that nurtured MICA (the Mudra Institute of Communications, Ahmedabad) while he worked for the ad agency – Mudra Communications. In 1997 he joined the HR team at Colgate Palmolive in Mumbai. In 1999 he moved to a Regional role in the Asia Pacific Shared Services Organization for Colgate and was based out of Kuala Lumpur before moving on to a global role in New York at the Corporate Headquarters for Colgate-Palmolive. Abhijit Bhaduri has joined FritoLay – the Snacks division of Pepsico International as head of Human Resources.

He has also recently authored a book “Mediocre but Arrogant” (ISBN : 81-87981-81-4, @OxfordBookStore.com, @Amazon.com), a fictional novel about love and life in a Business School in Jamshedpur. The book has been on several bestseller lists in India and abroad and finds mention frequently as an example of contemporary Indian fiction. He hosted a long running popular radio show in US on Indian movies and film music. Most recently Abhijit acted in a cameo role in a Bollywood movie – Apna Aasmaan (*ing Irfan and Shobana) and is due for release in 2007. He is an accomplished musician as well and don’t be surprised if some day you find yourself hearing an album where he plays a part.

What are the principles of talent management?
The process of acquiring, nurturing and retaining talent is an ongoing challenge all corporations face. Like all HR practices, Talent Management starts with a deep understanding of the business strategy, over a 3-5 year scenario.

o What are going to be the key drivers of growth?
o What is the competitive landscape?
o Where does Talent Management fit into this strategy?

Then there is a ‘make vs buy’ decision. Do we grow our own pipeline of talent (eg through a Trainee scheme or through a systematic bench building approach) or do we just go ahead and acquire talent from other organizations. Succession Planning is the centerpiece of this process.

Are you saying that the context of managing in the ‘current’ should not be the focus of a Talent Management strategy?
There may be tactical responses that an organization has to take to acquire and retain talent. In the long run, talent will naturally get attracted to an organization that has a reputation for grooming and nurturing it. Such a reputation is built through a Talent Management Strategy that is drawn up, articulated and constantly practiced through various phases of an organization’s life.

How would you measure success?
The measures for acquiring, managing and retaining talent will vary. The strength of The Employer Brand helps in attracting talent, one could say. However each aspect of a firm’s HR policies has to support Talent Management, whether it is Compensation and Benefit or Performance Management or Career Planning.

You could measure Employee Referrals as a percentage of new hires or the percentage of vacancies filled internally to measure success. Any measure that tells us that the organization is seen as a preferred employer is an indirect measure. The most concrete measure is what percentage of vacancies are filled internally.

The best and brightest people are attracted to organizations that invest in building careers for them. If the employees feel that they have built their own capability and competency during their association with the organization, it gets reflected in the buzz about the workplace.

A firm that has a great Talent Management strategy will attract the brightest and best HR people. That is a HR person’s dream destination. So ask yourself how many of the superstars of HR are waiting in line to work in your organization.

What are the critical factors that lead to success of a Talent Management strategy?
The leadership team’s vision of the Talent Management Strategy is the starting point. Having said that, the CEO and the HR leader need to blend the business strategy and the part that the talent pool will play in the realization of that strategy. Finally the employees need to be the brand ambassadors for the Talent Management strategy to be successful.

Are ‘creative’ businesses different when it comes to methods, strategies and direct one on one handling of management of talent? Why has HR not become an established function in businesses like Advertising, media, and entertainment?
There have been media houses, Internet start-ups and ad agencies that have been at the cutting edge of talent management practices. In the 90’s, Chiat Day – the ad agency was the front-runner in starting some of the innovative approaches to managing people eg Making it easy for talented people to work for the agency by introducing “ta offices” where employees could go in only on the days when they had meetings and work from other locations on other days. We have all read that a Google or Microsoft get a huge number of applications from people who want to join them. So they acquire great talent, but I do not have data on what their talent retention rates are. The success of the Talent Management strategy is to see how the organization builds a bench of capable people who are being groomed to take on larger roles in a 0-3 year time frame. Talent Management principles are universal. One may acquire talent but the bigger challenge is to manage, nurture and retain bright people at all levels in all functions.

If HR has not become an established function in an organization, it probably indicates that the CEO does not have a long-term view of managing talent. The leader’s lack of understanding of the Talent Management process results in not hiring a specialist for the task. In the long run the organization is the loser.

In your opinion how has the Advertising, Media (A&M) and New Media businesses fared (in India and globally) in the area of talent management?
The popular business press and HR Journals seem to have more examples from sectors other than advertising, media etc. when it comes to doing cutting edge work in Talent Management. Ad agencies, media houses seem to be better at acquiring talent in the short run than in grooming and nurturing over time…that would be my hypothesis.

What do you think are the reasons for the crisis of talent in A&M? You know, even MICA graduates don’t want to look at advertising any longer.
I was associated with MICA when I was the HR Director for Mudra Communications from ‘94-’96. So there is a certain sense of disappointment that MICA grads are not joining the employers for whom the talent pool was created. On the other hand, maybe they are better equipped to work for other sectors. That’s what is getting reflected in their career choice. There could be many reasons why such a shift is happening.

If MICA grads don’t wish to join agencies and are getting opportunities with other employers, it also means that the course design is not specific enough to roles that agencies have to offer.

Or that agencies don’t pay as well at entry levels as do others. It could well be that agencies don’t invest in providing critical experiences that a fresh graduate is looking for. It is for the advertising agencies to introspect on the reasons for this choice.

What would you suggest as ‘first steps’ for the businesses in these sectors?
1. Start by articulating how the organization’s talent management strategy fits the business strategy.
2. Identify the talent gaps in the short term and long term.
3. Then create an action plan to bridge the gap.

Satindra Sen started his life as an entrepreneur, fresh from an engineering degree. After an MBA from XLRI, Satindra joined the corporate world and stayed there for 15 years. He worked his way through larger and larger roles in the world of financial services with Mashreq bank and Amex. In his last assignment with American Express, Satindra led all off shore outsourced voice operations across Asia for the English speaking world of Amex meaning US, UK, Australia, New Zealand and Canada. He lead a team of 500 direct employees and another 1500 through partner organizations. He had a reputation for being an excellent mentor, executive coach and managed to keep attrition levels in his business at remarkably low levels.

He has since decided to pursue ‘la dolce vita’ at the age of 42, leaving his rather fast paced and upwardly mobile life for the “outbound training” world that he now roams. When he is not consulting (and that’s pretty often) he enjoys reading (any thing that’s published, barring management books!), single malts, discovering and tasting new as well as tried and tested cuisine, theatre and traveling to places where he can get all of the aforementioned!

What are the principles of talent management?
The principle of talent management is to be able to categorize talent in a meaningful way so that you can strategically and tactically address the development needs of each category . A talent management process should:
a) Be as transparent as possible
b) As objective as possible
c) Lead to talent planning ( at a minimum at both ends of the talent spectrum)

How do you measure its success?
By the following:
a) Retention of your high potential – high performing employee base over time
b) Internal promotions tinto larger roles ( rather than having to hire from outside )
c) Exiting identified talent mismatch

Is talent management an organisational process or is it about individual leadership style?
Clearly an organisational process …else different people within an organisation will handle it differently and there won’t be a uniform talent management system. The pluses of organisation wide talent management:
1. Uniform approach
2. As an organisational process it gets done
3. Objectivity through thumb ruling (not a one man decision)
4. Transparency is easier to achieve
5. An organisational view that identifies both your stars and lets you know your lemons across levels
6. Ability to strategically and tactically manage top talent at all levels rather than only at the top

In your opinion, how good are the talent management processes in India based organisations? Please talk from your experience of companies you have worked with in India, companies outside the country and your own ex employers.
Large Indian corporates hardly have any organised approach barring some front line people practice organisations ( TATA s ) …a lot of talent management is synonymous to performance management . MNC’s of course are piggy backing on imported talent management processes and tools …a lot of organisations (GE, Amex) use one version or the other of the 9-box talent blocker;
1. Categorize Talent into a 3 X # matrix on Potential (Hi, Medium, Low) and Performance (Hi, Medium and Low)
2. Develop an organisational growth principle for folks in the top category and address their development needs systematically
3. Develop development tactics and time bound improvement plans for the bottom end with the end goal of improvement or redeployment / exit
4. Make the process and the individual positions clear (on the Talent grid) at least for folks at a “senior management” level

Will the principles or strategy for managing talent differ for ‘creative businesses’?
Essentially if talent is defined as a combination of potential and performance then it should not differ in the approach …the development planning process, career pathing etc. that fall out of this will need to be mapped to the industry of course

How large a role does ‘ego’ play in the process?
None if you do it at an organisational level. The transparency (whether you tell people explicitly on which block they lie in) is another matter.. a function of
a) Organisational culture
b) Organisational readiness
c) How has it been communicated etc. Definitely the process of making it transparent should be top – down…. try it out at the top (the transparency piece …the approach and method should be applied across) …and then roll it down

The communication industry is facing a severe crisis of talent. The bright experiened talent have many options outside the industry and are taking them, the quality of the pool at entry levels has dropped dramatically. What suggestions can you make for the industry heads to help them combat this trend?
I dont know the industry and hence these may sound too simple and in fact may not be practical but here goes….

1. Make the industry sexy again (advertise maybe..look at the army )
2. Address pay scales and compensation …get creative about it!
3. Show talent management and growth potential
4. Invest in training and learning …and use that as an edge to hire and retain
5. Provide global learning and practicing opportunities
6. Adopt an institution where raw talent is good and partner from the education stage itself!

Vivek Sengupta is President of IPAN, a premier PR agency, part of the JWT group. He brings to his job over 28 years of experience in the communications business, including corporate communications, management consulting, public relations, public diplomacy, print journalism, electronic media and teaching communications at the university level. Sengupta has over 15 years of experience in print and broadcast journalism. He has worked for several well-known publications including The Telegraph. He has also served as senior program manager for the United States Information Service (USIS), Calcutta and as editor-in-chief of the New Delhi-based Independent Television Company (ITV), producing a fortnightly video newsmagazine.

His most recent assignment was with STAR India Pvt Ltd, where he was Senior Vice President-Corporate Affairs. At STAR, arguably India’s largest media company, he oversaw the corporate communications function and was also the official spokesperson. He also contributed significantly to government and political relations, regulatory affairs and relations with other external stakeholders.

His impressive academic credentials include master’s degrees in communication (USA) and in international relations.

 1. What are the key principles of talent management?
It all boils down to ensuring that employees remain fully engaged–not in the sense of being “kept busy”, but kept engaged in a mental or intellectual sense, even as they feel secure, content and happy in their work environment. That’s the fundamental principle.

2. How would you measure the success of a talent management process?
By the average duration of such ”employee engagements.”

3. Is talent management an organisational process or is it a matter of individual style? Does it get practiced in advertising?
It is at once an organisational process and a matter of individual style. It does not have much to do with specific industry verticals.

4. In your opinion, how good is the PR industry is at managing talent? How would you rate it against media, music, films and IT? Do talk to us about your experience at Star and other places.
As I have said in my response to the previous question, this is not a matter of specific verticals.
However, it is a fact that the PR industry, like much of the larger universe of the communication industry, is hit harder than many others by the paucity of talent in the market. This scarcity has a bearing on managing talent in our industry.

5. Is it necessary for a talent manager to be well known or an established player in the industry in the creative business?
Not necessary.

6. How large a role does managing egos play in managing talent?
It does play a significant role. Especially in the communication business where there is a premium on “creative talent” and individuals think the world of themselves. Also, in an environment where there is a supply side deficit in talent, individuals are more prone to giving play to their egos because they are aware that there are options outside.

7. Does the process or principles of talent management differ for a ‘creative’ business from other businesses?
It is just that it is more of a challenge than in many other businesses!

8. How do you think the PR business can address its current crisis of talent?
By addressing the fundamental principle of talent management. I have spelt that out in my response to your first question. If you are able to successfully address that principle, you retain talent. If you acquire a reputation for successfully addressing that principle, you attract more talent.

Mash (aka Mahesh Chauhan) is currently CEO of Rediffusion Y&R. Mash is one of the new generation leaders on who rests the responsibility of ‘reinventing’ the business and bringing back the glory. An advertising professional who believes in creating environments that are bereft of hierarchy but infused with high-octane energy, passion, fun and yet driven towards shared and well defined goals.

In his 15 years in advertising, Mash has worked across geographies and categories (both MNC’s and Indian Companies). However, his unmitigated dislike for comfort zones and his own desire to challenge his self-concept, has made Mash move from one successful assignment to another.

Mash is an inspirational leader, one who leads both by example and by getting people to exceed their own perceived limits of ability.

He is a maverick at heart and will challenge the status quo and ‘norms’ to shake things up. He looks most comfortable kicking up the loudest possible din at advertising awards shows with his team members, irrespective of the colour of the gong his agency wins.

1. What are the key principles of talent management?
In the times we live in, there are no finite principles. The theories are being evolved, new ones written as we pass each day. If I have to put down the ones I am currently practicing, I would rate goal setting as possibly the most critical. Setting the goals at an organizational level and then, cascading them to every single individual in the company. This leads to a sense of importance in each and every individual in an organization and how he/ she is making a difference/ contributing to the organizations objectives.

The second principle that excites me is about working on an individual’s strength, which is quite contrary to the classical practice of developing well rounded professionals. I would rather have the edgy ones who are reasonably rounded too. I am not too sure if I have gotten down to doing it, but will begin the process pretty soon.

Third would be about the environment one creates at work. It should be fun, learning, challenging, rewarding and fostering a spirit of bon homie. After all, our work places are modern homes.

These coupled with financial rewards would form the foundation of what I am currently trying to imbibe.

2. How would you measure the success of a talent management process?
Attrition rates are a modern reality and ephemeral. I have myself attritioned twice and gone back to the same organizations viz. Rediffusion DYR and Ogilvy. So I would say that the organizational values are at the core of a successful talent management program. How many great professionals an organization creates is probably a better benchmark. I would expend my resources on that. Don’t they say, if you love somebody, set them free… But with a love bite of learning, empowerment and desire. Am certain they would come back. And that for me would be true success.

3. Is talent management an organisational process or is it a matter of individual style? Does it get
practiced in advertising?
An organization is far bigger than an individual. All of us individuals are dispensable, only a true organization stands the tests of time. Some individuals strive and are successful in leaving their footprints in the sands of time. In our industry, whose only asset is the talent it has, talent management has to be the heart of the organizations priorities. Nothing else can make or break us as much. Unfortunately, in our industry, most talent management has been largely linked to individual style.

4. In your opinion, how good is the advertising industry is at managing talent? How would you rate it
against media, music, films and IT?
I think the best practitioners of this would probably be the IT and ITES industries as they constantly live on the edge of new advancements. Am not too sure of the industries you have mentioned, but the faster our industry realizes that we are also living on the same edge, the faster we start focusing on this domain, the better.

Rediffusion DYR is making a start of sorts by hiring a full time training and development manager whose mandate is two training programs per office per month. If successful, it will deliver close to 50,000 man hours of training per year. We also have a full fledged HR function headed by a very competent person. We are now taking this domain very seriously.

5. Is it necessary for a talent manager to be well known or an established player in the industry in the creative business?
Individual as I said does not matter, organizations do. Talent manager has to bring in the so called established players, who can then inspire.

6. How large a role does managing egos play in managing talent?
In our industry, I would say critical. Esp as our product is transitory. Egos are a consequence of exalted self concepts or unfulfilled expectations- expectations of reward or appreciation. We must become generous in both appreciation and reward. Mind you reward is money and more. As paymasters, our industry is currently scraping the bottom of the barrel. It must change. And we must invest more in our people’s development. However, megalomaniacs I am not too sure about. They should be tolerated till their sell by date.

7. Does the process or principles of talent management differ for a ‘creative’ business from other businesses?
It does because we live with far greater uncertainties all the time. We don’t know if and when we will get it. We have far more tests, more frequent bouts of anxiety, we are on test all the time. Therefore, as individuals we can do with a far different and more robust support system.

8. How can the advertising business address its current crisis of talent?
The answer to this question lies elsewhere. Surely we need talent management but his one pertains more to the raison d’être of our industry. This is about the goal post. I have my doubts if the industry leadership understands it clearly in today’s context. The goal post definitions have changed dramatically just as our lives have transformed in the last decade.

At Rediffusion DYR, we have given way to our desire to experiment, to question all the fundamentals. This journey involves a lot of pain and of course, without a guarantee of success. Our courage of conviction has built our appetite for pain. We also see failure as just another step in our journey towards evolution. Whether we will be successful or not, the next one year will unfold.

The challenge of acquiring and retaining talent is possibly the single largest issue taking up senior management time across businesses. Growth of business, it seems, is inevitable but the largest bottleneck is talent. Very often, the concept of ‘talent management’ is neither understood nor practised. In this blog we would like to initiate a discussion, especially for businesses that have people as their primary resource, to bring out the issues, share ideas, get comments and who knows…maybe the process of finding solutions.

We will interview senior professionals who are dealing with talent as a major part of their job from across industries and functions. We invite you to challenge the premises and arguments that they put forward and extend some of your own.

Our first post is an interview with Subhash Kamath. Subhash is CEO of Bates David Enterprise, a reputed advertising agency. He has the reputation of being one of the best talent managers in the advertising industry and a passable cover for Bob Dylan. Advertising and music are his two biggest passions besides Single Malts, Cigars, sea food, good mutton curry, films, theatre … you get the picture right?

Here is his take on the issue of ‘Managing Talent’

1. What are the key principles of talent management?

I believe all employees, anywhere in the world, senior or junior, in any
category or business, work for 3 fundamental things:

• Growth
• Appreciation
• Reward

Each of these goals is manifested in different ways and a combination of the three works to motivate an individual. Of course a lot would depend on the seniority of the person, the environment of the organisation, the competitive situation and the kind of business the organisation is in.

For example, ‘growth’ traditionally meant a larger portfolio or responsibility, larger team to handle and which consequently meant a promotion/ better designation/ stature within the organisation. And this was usually given once a year at “increment time”. But nowadays, growth doesn’t necessarily mean that anymore. Continuous training and learning opportunities, attending external workshops or conferences all add to a sense of growth. Especially with a much younger workforce today, growth can also mean ‘more variety’, ‘more excitement’, doing something totally different/ new, no ‘sameness’ etc. So you can actually give a young person a tremendous sense of growth without necessarily upgrading him/ her to another hierarchical level.

‘Appreciation’ is one of the most important aspects in talent management, and yet, one of the most ignored. “Appreciation” can be demonstrated in many ways: Independence and freedom to take decisions, public recognition as a ‘star’/ ‘lister’, on the spot cash bonuses/ rewards in kind (trophies/ books/ prizes), media profiling …….and sometimes it’s just about putting in a good word or a pat on the back. How often do today’s bosses actually say, “Thanks for all the effort, you’ve genuinely made me and the company proud”….? It can make all the difference.

‘Reward’ is basically seen at a monetary/ perks level and for today’s generation, these rewards need to come in leaps and bounds! Otherwise, they have ample job offers to choose from. But if there is a consistent delivering on the ‘growth’ and ‘appreciation’ front, the relationship between the employee and the organisation is not purely transactional and in many cases, an employee may actually choose to settle for less money, because he’s enjoying his job so much.

Any talent management process needs to focus on all aspects of these 3 main
parameters and constantly refresh and rejuvenate these parameters.

2. How would you measure the success of a talent management process?

One obvious measure of a talent management process would be the rate of attrition. If you can consistently manage a lesser rate than the rest of your industry/ competitors, then you know it’s working. But given today’s scenario of blooming job opportunities and salaries, and younger ‘promiscuous’ mindsets, attrition is and will be a given in any fast growing category. The true measure would then be how fast and well are you being able to recruit and induct people to replace the ones who are leaving. Management of the ‘churn’ would be a key indicator. Beyond that, employee morale could be a good measurement of success. i.e. if one could actually quantify the strength of the relationship.

3. Is talent management an organisational process or is it a matter of individual style?

Ideally, it should be an organisational process, driven by the very top. Unfortunately, it does boil down to an individual style and passion very often.

4. How good do you think the advertising industry at managing talent? How would you rate it against media, music, films and IT?

The advertising industry has been pathetic at inducting and managing talent. It has never really invested in this aspect at all. That’s why you almost never hear of any successful HR case study from this industry, even though it’s totally a talent business and people are your only assets. All the industry has done is to undercut each other and poach each other’s talent, rather than create strong processes to bring in/ retain talent.

5. Is it necessary for a talent manager to be well known or an established player in the industry?

Not really…. good experience always helps. But it’s passion for people and innovative thinking that would really make a difference.

6. How large a role does managing egos play in managing talent?

A tremendous amount! If it’s about people, it’s about egos all the time. Especially in India. You constantly have to manage egos, insecurities and emotions on the job. The western culture is far more pragmatic about it. We Indians tend to be extra emotional when it comes to our jobs. We tend to place extra importance on status, what the other is earning, job security etc. So ego management is key to talent management in this
country.

7. Do the principles of talent management change for a ‘creative business’?

I don’t think the principles differ at all but the manifestations do. It is still about Growth, Reward and Appreciation. However creative people possibly need much more reaffirmation that they are growing and through rewards and appreciation. That explains the number of creative awards in advertising or films and music. Growth is also not just linear growth in terms of designations and salary. The creative person needs to feel he is growing in creative expression. It may well be that this creativity finds expression outside of his area of work. So a Prasoon Joshi, besides advertising, writes songs and dialogues for movies, someone else may be experimenting with music or cooking and so on.

The nature of a creative profession is such that the definition of a great idea is one that has not been seen before. So insecurity is part of the package. Therefore a greater need for appreciation, reward and growth.

8. How can the advertising business address its crisis of talent?

This is a tough one and I must admit it is ‘work in progress’. The key thing to recognise here is that the situation around advertising has changed completely but we are still operating in the old way and that is not working. The advertising business has lost its sheen and respectability as a frontline profession. With squeeze on margins, the ability to pay to get talent is compromised. There are a variety of options available to the potential employee that was not there before.

Here are a few ideas…and there are no short term solutions:

Change catchment policy. MBAs are no longer joining advertising nor are MICA graduates. With the change in the ‘language and vocabulary’ of advertising, creative talent is also not necessarily coming from the kind of backgrounds that were earlier sought. We need to look at smaller towns. Find talent that does, for e.g., radio programming and jingles for local stations. People from here will still find advertising a great career option. Head-hunters also need to play an active role in finding talent from these places.

Catch them young. Go to undergraduate institutes rather than postgraduate ones. Evangelise the profession and find the people who are truly keen on pursuing a ‘creative’ profession. Maybe we need to change our systems and throw them straightaway into jobs. Have a year long induction and then bring them into the system.

Big groups like WPP, IPG, Omnicom should look to start undergrad institutes in the smaller towns.

Catch them young and infuse them with passion about the business. The business is getting tired. Induct the youngsters with excitement. There will be a much better and committed crop.

Charge for the intellectual property that is ours so that we can pay better. The industry with its constant undercutting to get business, has lost the ability to pay well. As a result it has also lost its respect with clients.

Relook at structures. I find that the work we do now increasingly needs people with different skills and maybe geographies coming together for projects. So we need to look at structures that are more around coalitions rather than the ‘team’ as it used to exist before. Yes, clients will still want the teams but increasingly need the coalition as well. And today with technology, it does not really matter where people are based. So structure around project teams coming together quickly and disbanding is the way to go.

Stock Options. Most agencies have not looked at these as a way of retaining talent. The concept of building wealth for employees must become a norm. I am sure there will be ideas that others have and will try it. At this juncture, all of these are worth it.

I have found some of the most profound business principles in the way we lead our daily lives. This story is one such example.

This is the story of Paradise Plaza (PP), a typical society in Kandivili, a rapidly growing suburb in Mumbai, and its Residents Association. It is a wonderful study in how the principles of a successful startup were practiced in a non business environment. And it shows how a start up can differentiate itself from others through managerial expertise. Today, although, PP is no different from most of the other societies, the apartments sell at a premium.

When the first few residents of PP met one Sunday morning, to form the association, high real estate prices was certainly not on the agenda. The group that day was a fair representation of cosmopolitan Mumbai. A couple of Tamilian software engineers, Dubai returned Malayalee manager, Gujrati stockbroker, Bengali executives, Maharashtrian  Chartered Accountant, retired Parsi bachelor and a Punjabi Chef. This diverse group was united by one common desire – to live like a pan Indian, modern, urban society.

There were two gentlemen, Mr. Bhowlaker a practicing Chartered Accountant and Mr. Mistry a retired bureaucrat, who had definite but different ideas on the subject.

Mistry wanted the Association to focus on efficient management of regular functions and a code of good neighbourly conduct. This code was about laying down rules on issues like volume control of music and TVs, watering plants and washing verandahs without inconveniencing others and so on. He believed that efficient management and great systems were all that were required to build a great community.

Bhowlaker, however, had a different idea. He agreed with Mistry on efficient management and good neighbourly conduct but did not believe that was all. He wanted a further discussion on how people wanted to live their lives in PP. Someone spoke of having a modern approach to garbage disposal. There were suggestions on celebrating various festivals in the society to reflect the multi-cultural nature of the residents. A large number mooted parties for every occasion…Bhowlaker summed up these suggestions in a little speech that had everyone clapping and surprisingly, pumping elbows as well! He seemed to have inspired a normally boring and fractious event like a Society meeting into a pledge for a greater cause. He had articulated the Vision.

The Vision and Buy-in 

‘Friends, and I hope I can call you that from now, I can hear in each one of your suggestions and ideas, an echo of a common desire. We have such rushed and hectic lives today that our homes have to be the daily havens that we return to. To re energise, rejuvenate, relax and provide fresh inspiration. Yes, we all have wonderful families and our DVDs and music and whatever other personal passions. We have the choice of course, to smile politely at each other in the lift, nod as we walk past each other never coming in the way or being together OR believe that each one of us can make the others life more interesting and enjoyable, do things together and become friends. I believe you are choosing the other option. This little society of ours is a microcosm of our country. Let us show that we can all live together enjoyably and be a true representation of Modern India. Let PP, in Khandivili East show the way to other societies.” Mistry’s was the only murmur of dissent, drowned out in the euphoria of the speech.

Bhowlaker was elected President unanimously. His first act was to appoint Mistry as the Treasurer. Mistry, who had earlier already offered his services to the Society, could find no way of wriggling out of the situation. In all fairness, once he got past the discomfort of having to play second fiddle, he was a great CFO for the Society. Bhowlaker had effectively tackled dissidence and transformed it into a ‘buy in’. The rest of the Association structure was quite unique..

The Organisation Structure

There was the Health and Sanitation in Charge. She was responsible for garbage disposal, pest control, vaccination information, water purity control, yoga and meditation sessions…

The VFM in Charge was the chief negotiator for the Society. He was responsible for setting up the entire group of vendors who would be allowed to provide service inside. Along with laundry, cable, DVDs he also negotiated a fixed rate with taxis for various destinations, set up home deliveries with various suppliers and even arranged for fresh fish and vegetables.

Besides these, there were other portfolios to take care of maintenance, security, legal affairs, dealings with the builder and so on. However, the most sought after portfolio was the Festivals in Charge. Bhowlaker retained a close interest and active participation in this portfolio. The society agreed on a list of festivals and a budget was set aside for each one of them. The calendar was so drawn up that there was something to celebrate together almost every month. This portfolio also had the largest number of sub committees. Each festival became the responsibility of one person and ethnic familiarity with the festival was a key criteria.. This structure demonstrated the ideal way to form project groups – teams of people with requisite skills given operational responsibility and independence.

Leadership 

Bhowlaker provided the energy whenever required to keep this band motivated and enthused. PP was always buzzing with activity. As more people moved in they got caught up in the general excitement and added their enthusiasm and energy into the movement. The group managed to get over disagreements and ego issues by always reminding each other that they were trying to create a true ‘Paradise Plaza’.

The ‘Big’ Idea and its implementation 

The Festivals Group faced the biggest challenge. Not only did it require enormous amounts of energy and time but also funds and organizational capability. It is the manner in which they addressed this issue that has made PP a truly outstanding example of building an organisation.

The parallels between the Society and a business startup are quite revealing.

• A successful startup needs a vision, a leader to drive that vision and a committed team to get it off the block. Human beings are inspired much more by a vision that is larger than just their physical or economic requirements. For the residents of PP, wanting to create a modern urban Society was inspiring. Inspiration releases energy which translates into will to act and push beyond the seemingly impossible. Without this spirit, startups are destined to mediocrity or failure. Possibly one of the reasons why organizations like Apple, Microsoft were so successful in the beginning.
• Bhowlaker demonstrates great political acumen, a required leadership quality, in appointing Mistry in a crucial position. It is a masterstroke that helps him control dissent and demonstrate to the group at large that the Society’s goals are more important than individual egos.
• A startup requires the right structures to be able to sustain it. ‘Right’ is determined by the vision and actual process requirements. The Society by adopting unique job definitions within portfolios and a huge push behind the Festivals Group demonstrates precisely that. An advertising agency wanting to position itself as ‘strategic’ but without resources behind planners, research, tools and disciplines that the entire agency uses, strategic focus on clients marketing issues, etc. is bound to fail.
• The vision, structure, leadership and the original spirit of the startup team go a long way in setting the culture of an organization. The culture promotes behaviour that helps the vision to be realized and reinforces in the stakeholders their own sense of belonging and uniqueness. It acts as glue and also expels those that do not fit in. It is, in a sense, the DNA of the organization. The PP Society has already sown the seeds of a cosmopolitan, modern, fun loving, innovative and open culture.