Boys to MenOnce Again

Usually these are exciting times of the year. Exuberance, festivals, lights,
celebrations and hope tango to an energetic beat.

Its a bit subdued this year. The uncertainty creeps through in a hundred
ways. The banking sector has managed to slide the rug from under the feet, and a
lot of balancing has to be done. The Indian IT industry has shown decent results
keeping in mind the situationbut it gets measured against its past record and
keeping up with that is a tough call. What will the next quarter results be
like? The old crystal balls do not work anymore. But it is safe to say that the
next couple of quarters are going to be tough.

And the game has changed, and so the rules need to change as well.

Rule one is look at product pricing. In such times the pricing becomes a high
priority. Customers still want quality, service and reliability. But they look
at pricing through an electron microscope. That does not mean panic selling but
it certainly means cutting out the frills and the fat.

Shyam Malhotra

Rule two is to increase customer contact and empathy with the customer. Not
cosmetic messages and emails of we are with you in tough times type but
genuine changes in products and services that offer benefit. Recessions do not
hurt everyone. The business goes to those in whom customers have more faith and
who are visible. So cutting back on sales effortsby reducing customer
contactshould be a strict no, no. Finding more economical ways is legit but not
in a manner that cuts touch points.

Rule three is work with speed. Moving fast is always important. In good times
if an order is missed there is another customer in the pipeline. In bad times
there are far lesser other customers. It is a bit like standing in a queue for
limited show tickets. If you are not there to grab the first ones there are no
tickets left.

The problem comes in the first stage of slowdownswhen all live in a state of
denial and reaction times are low. It can be called the this too will pass
phase. This is followed by the repetitive phase. Let us do more of the same.
It has always worked. When the real need is to do less of the same. And then
comes the panic phase. Let us do everything possible to change. Like
cholesterol there is good change and there is bad change. One has to be
selective.

Rule four is keeping the flock togetherand working. Attrition may go down
but that does not mean that people will go that extra yard. In violent storms
instinct makes people stay in comfort zones. So change does not come easy. And
when it is thrust by the environment or otherwise is the team there? Will it
still be a team when the incentives are skipped? Can we say, "Hey this is not
working so well, lets try it differently," and be taken seriously?

All this could mean reconsideration of aspects of the business models, the
strategy (that looked set in stone a year ago), pricing and expense structures.
But that is what growing up is about.