The Optimal Pain Signature: The Foil for a Pleasurable Life?

We are in a technology-driven world where nothing seems to be impossible.  If the decades of the 1950s to 2000s were focused on electro-mechanical and mechatronic developments to help human beings achieve the unthinkable, from intra-city bullet trains to inter-planetary spaceships, the technologies of the twenty first century are focused on understanding the human biology better and enabling superior diagnosis and therapeutics through molecular biology and genetic engineering. The merger of biomedical sciences and engineering are creating new vistas of healthcare. Today, there is hope, for example, that genetic markers could help forecast the probability of cancer or enable the right choice of oncology drugs. The same technological capability could extend in several related and unrelated disease areas, nay to life itself.

  

If the ultimate form of impossibility is creation of human life, even that could become possible one day. Only a few days ago, a laboratory has announced that it has been able to successfully grow certain human organs in a laboratory environment using stem cells. Possibly, a full human life may also be grown or cloned one day. In the meanwhile, several companies are racing to develop a new breed of health devices or a host of healthcare applications such as heart rate tracker, fitness tracker or blood pressure monitor. There is an expectation that sooner or later smart phones and a new breed of wearable computers would turn into techno-biological foils to human beings. Yet, technology may have its own limits. The reason is that technology can help only if any physiological parameters can be characterized or measured. Surely, more biological markers which are measurable and have predictive capability will be discovered but thoughts and experiences cannot be measured, at least as of now.

Physical pain, the first frontier

Temperature, pulse rate and heart rate are three of the fundamental physical measurements of human wellbeing or illness. There are several bio-chemical markers that can be cultured or isolated through blood tests. Imaging studies, for example X-rays, ultrasounds, scans and angiograms of different types, can help identify the irregularities in the body internals. However, no technology has emerged, nor will emerge, that can measure pain, which even prior to temperature is an indicator of something going wrong or gone wrong with the human body. If only there were to be an instrument that can measure pain as it emerge and calibrates different types of pain, potentially chronic diseases like migraines and acute diseases like heart attacks be diagnosed ahead, and patients relieved or saved as the case may be. Unfortunately, pain only can be experienced and expressed but cannot be measured real time (the so called pain scales are post-facto, self-reporting, and subjective).

If medical diagnostics has to conquer the ultimate frontier, the first frontier to conquer is pain. There is so much subjectivity in pain that people tend to either understate or overstate pain, and in some cases even be incapacitated in expression. Apart from pain as a precursor of the impending physiological problem, post-operative pain is also an important marker of the pace of recovery. Without knowledge of the true state of pain, doctors dispense pain killers on an empirical basis. Apart from causing their own infamous side effects, the pain killers also mask pain making the discovery of illness even more difficult. Neuroscientists from the University of Colorado Boulder, New York University, Johns Hopkins University and the University of Michigan have identified functional Magnetic Resonance Imaging (fMRI) of the brain as an imaging technique to understand a pain level or pain signature of a person (see “An fMRI-Based Neurologic Signature of Physical Pain, The New England Journal of Medicine, 2013, 368: 1388-1397, April 11, 2013). Yet, fMRI is too sophisticated a hospital procedure to be of any use or relevance to day to day pain diagnosis and management.

Physical sensitivity

The rigors of life teach us that pain is an inescapable concomitant of human living. People experience physical pain from the early days and over years become capable of enduring pain. Sportsmen, among others, constitute a special category of people who test limits of endurance; they rebound from pain amazingly fast even as others recoil from pain involuntarily felt. To be sensitive to pain is probably not a bad thing even as an ability to endure pain is certainly a good thing. The ordeal of pain that is undergone by pregnant women prior to and during delivery is a classic instance of nature’s biology steeling the feminine gender to be sensitive and robust. Chronic diabetics, on the other hand, experience forced insensitivity with sugar levels leading neurological insensitivity to pain, and therefore resulting in ignorance of several pain markers of impending difficulties.

It is important, therefore, that a healthy human being is constantly aware of the pain frontiers one experiences. The simple tests that the earlier generation doctors employ in terms of scratch test or tongs test on parts which are served by peripheral nerves or distant blood vessels are some of the best indicators still. Barefoot walking on clean surfaces and being aware of the organic to organic and organic to inorganic touch are some of the ways in which a human being can continue to be in sensitivity to the subtle changes in body constitution. A spontaneous ability to feel and express pain is God’s gift and constitutes the body’s first defense against any harmful assault on the human body. The ability to distinguish between pain as a natural defense and pain as a route to endurance needs to be part of the pain DNA of an individual.

Emotional pain, the hidden frontier

While physical pain is easy to experience and express, emotional pain is much harder to understand and express. In today’s world where inequality is commonplace and where expectations race ahead of adequacies or endowments, it is easy to be vulnerable to emotional pain. Unseen and undiffused emotional pain leads to stress, which in turn leads to many psychosomatic and cardio-pulmonary diseases. Emotions such as anger, anxiety, worry, frustration, despondency, dejection, sorrow and sadness cause a person to experience emotional pain. While an ability to bear emotional pain is necessary, an inability to differentiate between natural emotional pain and impacted emotional pain is cause of much physical misery in individuals. High stress levels, for example, are known to cause severe migraine attacks in individuals.

Emotions are a function of attachment. Attachment is a function of biological (natural) or spontaneous (destined) chemistry. The more attached a person is (to something or someone) the more emotional he or she would tend to be. Anything that threatens or erodes the attachment would cause negative emotions and increase stress levels. Chronic stress levels cause a weakening of the immune system and cause a host of diseases. Attachments have a natural tendency of fading with time (like the attachment for schoolmates getting overshadowed by the attachment for college friends).  Attachments are a healthy part of human life but when the baggage of attachments constantly overflows (as it happens with highly social individuals) or if the baggage remains empty always bereft of attachments (as it happens with highly reclusive individuals) the emotional balance would be adversely impacted.

Sensible sensitivity

Emotional burden may seem to be lower in respect of individuals who think more through the head than through the heart, and who are impervious and insensitive. Apart from the fact that such non-emotional individuals tend to be in a minority, non-emotionalism tends to cause as grievous burden as emotionalism. The solution lies in individuals being sensitive sensibly. It is okay to cry in a movie theater watching a movie of pathos but it would not be sensible to bring the pathos into real life. It would but be natural and human to grieve over the loss of near and dear but it would not be sensible to stop enjoying anything and everything for years on in memory of the departed. The solution to coping with emotional burden lies in sensible sensitivity, which describes a holistic approach to understanding the root causes of emotional sensitivity and finding practical ways of coping with it, case by case. 

One important concept of sensible sensitivity relates to understanding the cause and response mechanism. Many times the anger that an individual has in response to criticism is not related to the criticism per se but more to the ego state of the individual. Understanding the self in terms of ego state and attachment profile is critical to minimization of adverse emotional burden. Another important concept is to apply oneself in areas where one has genuine interest. The level of interest in work facilitates a level of productivity and promotes a level of wellbeing. While it is not always possible to secure family and professional circumstances that are fully aligned with one’s interests, it is possible to choose a niche of interest that leads to a nucleus of satisfaction (like gardening in a family circumstance or mentoring in a professional circumstance). The third part of sensible sensitivity is an understanding and acceptance that, as with physical pain, a certain amount of emotional pain helps an individual operate within sensible limits of living. 

The pain signature

The foregoing leads us to consider a concept of individualized pain signature that expresses one’s threshold to pain, both physical and emotional. While at one level physical pain and emotional pain are correlated, particularly when they are chronic, they also can be viewed to occur independently. A person can have propensity to high and low levels of pain (recognition, absorption and tolerance), both physically and emotionally. A person who is low on both the counts could be insensitive to himself and his environment. A person who is high on both the counts could be a highly strung individual with significant and deleterious auto correlation between the two pains. A person who is low on physical and high on emotional could be execution-weak but intellect-secure. A person who is high on physical and low on emotional could be field-aggressive but people-insensitive. Unlike certain other grids, being stuck in the middle with an optimum balance could be the better option for a balanced life.

The pain signature is an important guidepost for any individual in the fast, technology-driven and stress-filled life of the times. While understanding one’s pain signature from biological and philosophical points of view is essential as discussed above, a day also may not be far off when there could be simpler and more accessible tools than fMRI to decode one’s pain signature. Wearable computers and services that track one’s thought and expression patterns as well as neurological electrical wave patterns could provide on-the-spot and on-the-dot guidance to individuals as well as their caretakers and mentors as the case may be.  Until then, and probably even after that, self-awareness on pain signature would be essential. The more aware and the more sensitive an individual is to his or her pain signature, the more he or she would be able to leverage it an aid to a well-balanced pleasurable life.

Posted by Dr CB Rao on April 26, 2014

   

           

Strategy, Structure and Execution: The Essential Leadership Trilogy

Leadership is all about delivering results. It could be through capital assets and human resources; it could be through business for profit or service for non-profit. Leader may have qualities that fit exactly the requirements of an entity; he or she could possess generic leadership capabilities applicable for diverse entities. Much research has focused on what makes a leader deliver superior performance; there is an even greater level of research and hypotheses on generic and specific leadership qualities. There is thus a surfeit of pronouncements on what makes leaders performers and what makes leadership tick. As with everything else in management, leadership is about a process; a process that makes ideas take shape as plans and get executed to deliver results.

This blog post considers the trilogy of leadership in terms of strategy, structure and execution. These are probably sequential steps in startups but in most other cases, they are continuously iterative and mutually adaptive. There is research that establishes that structure follows strategy, and also that results are more about execution than about strategy or structure. While this may be true, a perfectly optimized leadership process requires that strategy, structure and execution are well aligned. This blog post addresses a few issues: (i) achieving alignment between strategy, structure and execution, (ii) adaptive adjustment amongst the three components and (iii) leader influencers on the leadership process trilogy, and vice versa. This theory is important because no leadership challenge or no leader is akin to each other, and it would be helpful to have a process that is both personality and context neutral.

Crafting a strategy

Strategy, simply put, is defined as a plan that is intended to achieve a specific purpose. In management jargon, strategy has assumed a larger connotation of a process or an outcome that involves an overall corporate plan, duly supported by functional plans, to achieve a long term goal over a period, usually of three to five year duration. Strategy formulation is considered as a process that brings all key personnel of an entity aligned on to certain objectives. Strategy is also considered to incorporate several methodologies such as integration, diversification, merger, acquisition, cost leadership, differentiation, niche, all at the corporate level, backed by functional level strategies such as market share building, product portfolio development, operational excellence and so on.

Strategy, whether seen as a plan or a comprehensive process, is the foundation of all developmental actions for a firm. A leader has the opportunity and responsibility to put his stamp on the strategy or strategy development process. The Tata Group under the previous chairman, Ratan Tata, had a strategy of development in industrial sectors such as automobiles, steel, telecommunications, beverages, power and airlines, backed by a strategy of globalization. The same group under the current chairman, Cyrus Mistry, has a new strategy of operating in several infrastructure sectors. Many times, strategy formulation has a context based on the growth or profit position of the company. Although the process itself is complex, strategy becomes referred to in simple phrases of turnaround, revival, expansion or diversification. The leader must continuously evaluate the best strategic options while ensuring change with continuity.

Establishing a structure

Structure is one of the fundamental means available for leaders to deliver the results. Structure means the organizational structure encompassing the processes of coordination and talent management as well. There are different organizational structures that are available for a leader but structure must follow the strategy. A focused mono-product startup would require a simple functional structure while a global multisite network would call for a complex organization structure. No single organization structure has the capability to provide complete solutions, particularly if business is constantly evolving. There exist many choices in designing an organizational structure, several of which also present paradoxes. Concepts such as centralization and decentralization, empowerment and accountability, formal and informal reporting on one hand and flat or multilayered, functional or product, project or matrix, and regional or global engage the attention of organization leaders. The main concern, however, should be on another important factor.

An organization structure is an important aid not only for execution of strategy but also for developing leaders. There tends to be an alignment between these two purposes on the face of it; good talent leads to good execution while good executors qualify themselves to be good leaders. The real alignment, however, comes only when a profit and loss (P&L) responsibility is integrated into the organization structure. For example, it is easy for a business leader to splurge resources on projects when he has no responsibility for the revenues and profits accruing out of the projects (in a functional organization these are largely driven by marketing and finance departments). Similarly, a business leader may not ever get to understand the total nuances of organizational management if he or she has no linkage with profit and loss management. The apex leader’s biggest challenge lies in designing an organizational structure and establishing management processes that ensure functional efficiency as well as business effectiveness.

Ensuring execution

The third part of the leadership trilogy relates to execution. Strategy can be spoken about, structure can be seen around but it is execution that institutionalizes a business. Execution is often seen as undertaking a set of activities within budgeted resources and timelines. Effective execution, however, is more than that; it involves continuous calibration against strategy, being aware of developments in the competitive landscape and developing leaders who have execution doggedness and environmental resilience. The leader has the primal responsibility to ensure end-to-end execution. A well executed factory, a well designed product and a well executed launch may not necessarily get translated into a well executed business. Tata Nano car is a striking example of the well executed functional parts failing to make for effective business execution.

The leader’s responsibility lies in calibrating functional execution against a backdrop of business execution. That is where a well developed strategic plan which is extended into functional strategic and execution plans counts. In most organizations, however, strategy is seen as an annual mechanism independent of execution while budgets (that flow out of strategy) and execution (that is authorized by budgets) are seen as more aligned. In some organizations, strategic investments are considered as sunk costs rather than as investments that can be repurposed. Viewing execution in a strategic perspective is a leadership skill larger than evaluating execution against budgets. Wise leaders ensure that execution provides for flexibility for strategic flexibility or course changes even while executing. Reliance Communications has, for example, ensured that its strategy and execution of CDMA based plans have not prevented them from moving on to GSM bandwagon at a later stage.

Effective trilogy

The foregoing establishes that strategy, structure and execution are equally and simultaneously important for effective leadership. An effective leader is one who, for each objective he or she chooses, visualizes an end-to-end picture of strategy, structure and execution. The Malaysian low cost airliner AirAsia’s decision to enter Indian domestic airline sector reflects such leadership trilogy approach. Way back in October 2012, the firm decided to enter the Indian domestic airspace with a truly low cost (not promotional fare) model, stimulating traffic in virgin routes on the planks of both cost and quality. The strategy was followed up with a new hub in Chennai, and a scaling-up business model, including hedging of fuel costs for three years. The strategy involved tying up a joint venture with the reputed Tata Group which had an interest in civil aviation historically.

Even as AirAsia awaited various government approvals from February 2013 onwards, the  parent company started establishing a structure in India. An Indian subsidiary was set up, and a board was constituted. A chief executive officer and a chief commercial officer were promptly recruited who in turn started setting up the operating organization. The firm took on board Ratan Tata, who has a passion for flying and civil aviation, as the Chief Advisor and S Ramadorai, former Chief of TCS as the Chairman. Tony Fernandes, the founder-CEO of AirAsia himself joined the Indian board as the Chairman reflecting the importance attached to the Indian operation. The firm also started executing by signing up travel agents and booking agents for the network, and ordering the aircraft, having applied for and received in-principle approval to import 10 A320-200 aircraft. AirAsia, as a brand, has also started becoming visible in India by extending and advertising its international routes to India.  

Coping with surprises

If the crux of leadership is the strategy-structure-execution trilogy, the essence of success lies in how well aligned and integrated these three components are. The above brief account of AirAsia India, a case study in the making, demonstrates how these three are to be aligned and integrated from a forward thinking. It involves proactive risk-taking, and also a belief in the model to overcome all competitive opposition. Despite the well laid plans, there could always be surprises; for example, AirAsia did not imagine that the Tata Group would form its own joint venture with Singapore Airlines for the Indian civil aviation market. Only when strategy, structure and execution are aligned with due flexibility and continuous calibration, firms can cope successfully with surprises. 

The ability to cope with surprises comes with flexibility in trilogy components rather than making them risk-proof. There will always be internal and external variables that cannot be forecast which could impact the starting assumptions of any venture, organic or inorganic. Depending on the nature of the surprise, one or more of the three elements of strategy, structure and execution would need to be differentially emphasized to manage the surprises. Rather than an elaborate organizational bureaucracy, a small leadership group often provides the drive for a successful trilogy. Tata Motors’ success in achieving a successful bid and an even more successful turnaround of the JLR infrastructure is a case study in itself of strategy-structure-execution operating in impactful alignment.

Posted by Dr CB Rao on April 19, 2014

From Computers to Humans: Can the Creators Learn From Their Creations?

Computers are some of the most fascinating and epoch making creations of the mankind. Computers have enabled human beings undertake activities that were previously beyond human imagination. From robotic controls to satellite navigation, computers enable the previously unthinkable to be routinely practical. The computer, in its configuration, though has not changed much in concept; an input system, an output system, an operating system, a Random Access Memory (RAM), and a hard disc memory continue to be the core of a typical computer, be it the mainframe, desktop, laptop, notebook, netbook, ultrabook,  tablet, phablet,  smart phone, smart watch or smart glass. External memory and a few other accessories have enhanced what the computer can do. The developments of the last few years, however, have been pushing computer more as a social device rather than a computing device. A question, therefore, is whether the mankind is sub-optimizing the power of its own creation.

A few pointers in development of the computers and the extended devices listed above reinforce the concern. There is more emphasis on miniaturization of the form factor with empowerment of the hardware, say from a computer to a tablet, than on maximization of the processing power, per se. There is more emphasis on display quality than on processing capability. There is more emphasis on connectivity than on computing. There is more emphasis on photography than on archiving. There is more dependence on distant Cloud than the intrinsic device. These trends, by no means, are negative; they are certainly positive and represent a powerful way of making computers an integral part of everyday life. The concern arises not from these pointers per se but with what they represent collectively. Millions of technology resources and billions of dollars are focused on miniaturizing what is available on large scale than on boosting the power of the large scale further.

Rebooting the design

The computer designs need to be up-scaled to newer horizons as the world looks at greater networking, shared processing and infinite storing. The need for new mainframe technologies cannot be limited to certain specialized areas. The futurism of global networking and cloud computing requires that mainframe computers are brought back into the mainstream of global electronics development. Along with that, newer input technologies need to be developed; for example, intelligent tabletops serving as input slates, processors and display screens. The conventional office desk should be replaced by a smart table top which enables communication, computing, conferencing and a host of other professional services. The same concept would extend to personal tabletops serving as the total computer solution to the home needs. The smart phone or tablet would then be a dovetailed extension of the tabletop. When this tabletop technology becomes universal, no one would ever need to carry a laptop or tablet. One would simply enter any other office and work from either conference room or guest room table tops.

Extending the logic further, walls can be made into display and input walls, especially in conference rooms. While real time, realistic video conferencing is already in vogue, computer walls can transport individuals across geographies.  People can deliver talks to large groups and groups can animatedly converse with each other; the key, of course, would be a step-jump in communication technologies. Devices should have the ability to simultaneously transmit and receive across a wide range of communication devices, from fiber optic to satellite networks. Finger scanning and visual biometric technologies would be an integral part of the new rebooted designs. Similar concepts can be extended to shop floor machines with walls and machine displays serving as real time communication, collaboration and monitoring devices. In a nutshell, the question is whether the flow of technology should be only to bring the power of a desktop into a small smart device for an individual or to simultaneously make the desktops exponentially powerful and interactive for teams and groups collectively.    

Relearning the basics

Computers have certain basic characteristics of operation that enable them accept, process, store, retrieve and transmit huge amounts of data and information; all of this has been a result of painstaking development of several brilliant scientists, engineers and technicians. It is believed that a human being is, likewise, blessed with a capability to process trillions of data. Yet, it appears that a typical human being is fast losing the capability to utilize his or her own inherent, intrinsic natural powers. The solution could be in terms of learning a few basics from the way a computer operates.

Memory

The first relates to the discipline of memory. A computer can operate only within its memory limits; so can the human being. The only difference is that the computer’s design limits are known while the individual’s are unknown. The whole purpose of education is to let the individual understand his or her own memory capabilities. Many times, the human being fails to understand or utilize his own brain power, and feels that new knowledge has to overwrite the old knowledge. Partitioning of human memory helps an individual cope with data deluge just as partitioning of disc memory helps a computer store and process data efficiently. It is important that an individual practices in his own natural way of partitioning his memory into multiple storage areas. Equally important is the need to develop one’s own equivalent of RAM, that part of the memory bank with which his programs can communicate instantly. The individual must also make his brain more efficient by utilizing the intrinsic memory rather than relying on external props.

Inputs

The second relates to the discipline of input. A computer can accept each and every input as long as it is provided by designed input mechanisms; it cannot differentiate data in terms of logic or correctness, and will process all data that is provided. As a result, the GIGO (garbage in-garbage out) phrase which came into parlance in the 1960s continues to be in vogue. That said, the computer can differentiate data and information based on pre-set rules. The human being likewise has both natural and acquired abilities to differentiate and discriminate between data based on education and experience gained over time. It behoves the individual to develop rules based on such lifelong education and experience, and apply them whenever he is faced with huge amount of data. A great case in point is an individual’s ability to process the huge amount of campaign data and information hurled at him from multiple sources during the election time, and take a rule based voting decision.

System

The third relates to the discipline of operating system.  The operating system is the core of the computer. It has all the programs built into it. The computer operates as per the operating system, no more and no less. Does the human being have an operating system, or the core programming that is standardized? The challenge and the opportunity is that each individual has his or her own unique operating system, based on multiple factors of genetics, family, education, experience, and intuition. Unlike the computer operating system, the human operating system is prone to creativity as well as rigidity at two extremes. The key for each individual’s superior performance lies in self-awareness that he or she operates as per an individualized operating system, and it lies entirely within him or her as to how he or she can reinforce and sharpen it.

Malware

The fourth relates to the discipline against malware. The greatest threat to orderly, safe and efficient operation of a computer is the malware. The major operating systems provide for security certification and inbuilt filters against malware. In addition, anti-virus providers provide anti-virus programs. The human mind is similarly susceptible to social and other malware. It is important that individuals recognize the need to develop core professional and personal principles to protect the human mind against the malware of irrational or non-integral behavior patterns that impinge on one every day. The sayings of philosophers, seers and spiritual gurus and the embedded knowledge of religious works provide strong filters against the invasions of malware on human mind.

Applications

The fifth relates to the benefit of applications. The phenomenon of applications getting developed for various devices reflects the need to customize the power of a computer to individual needs, making both access and analysis of information simple and effective. Likewise, every individual has the benefit of the knowledge and experience of his friends, peers and associates to provide additional pre-experiences and guidance to individuals’ own capabilities. The ability to leverage the stakeholders enables every individual to optimize his experience on one hand, and avoid the pitfalls of others on the other; at the minimum it avoids the time and cost of rediscovering what is already known to others. Applying others’ knowledge, experience and insights to one’s own approach enhances performance while making it error-proof.

Processing

The sixth, possibly the most important, is the power of the processor. The processor speed is the most important determinant of a computer’s overall performance. The ability and speed of the human brain to process information is similarly an important determinant of how one performs in the competitive world. Unfortunately, unlike the computer chip, the human cell deteriorates after a certain age. Medical research teaches that it pays for one to keep the body and mind fit, sharp and agile through a variety of exercises for the body and the mind. While a computer becomes obsolete with new technologies, the human mind has the ability to compensate any loss of performance that happens with age with gain of wisdom. As one ages, one can mellow with more grace and wisdom. Unlike a computer, a human being can be regenerative, and value-accretive with age.

Output

The seventh is the power of the output. The result of the efficiency of a computer is seen in the output. So much emphasis is placed on display of output to assure customization and elegance. The human communication, especially the response and feedback mechanisms determine the effectiveness of the human personality as an individual and as a leader. Output efficacy varies widely with circumstances. It can be succinct or elaborate; at times a harangue is required while at other times silence is golden. Just as a computer’s display is enhanced by the right choice of fonts, pixels, screen and background, a person’s processed communication output is embellished by a person’s right choice of thoughts, words, format and backdrop. 

Devices

The eighth is the significance of modularity. The computer is a core device. Its core power can be extended by a variety of read/write devices, flash and external memories and other devices including smart devices. Each helps add capacity, enhance portability and provide flexibility. Some of these help remove the clutter in the computer. Likewise, the human being is the centre and core of everything. To let one’s life get governed by the plethora devices is somewhat like missing the woods for the trees. The devices, including the computer, must be used to enhance and improve one’s life than allow it to be tied in eternal knots and tangles.     

Human technology

Technology helps better human development. Computer is one of the most brilliant and ubiquitous products of human technology. Its power and applicability is so vast that it also makes the human mind to lose its independence and self-reliance. Yet, the way a computer’s power is organized and managed with design, the computer’s creators, the human beings, can take a lesson or two from the computer for designing themselves better to live more effectively.

Posted by Dr CB Rao on April 13, 2014  

 

Differentiation versus De-commoditization: Strategies for Haves and Have-nots

Differentiation is seen as a value building, remunerative strategy in product and business development. Differentiation as a strategy evolves along with industry structure. When an industry is built around a first time pioneering monopoly product, differentiation is of academic interest as the product constitutes the entire industry. As new players with identical or similar products enter the industry, differentiation emerges as the differentiator amongst different firms. However, when competition reaches a saturation point, the feasibility of differentiation declines even as the importance for cost leadership climbs up. Popularly, when competition becomes intense and differentiation becomes difficult, a product is seen as a commodity product. As an axiom, differentiation tends to be inversely correlated with commoditization, and vice versa. Yet, firms with investible resources tend to pursue differentiation as a premium strategy even in commoditized industries.

Differentiation tends to be primarily on product technology. In certain cases, it can be in terms of branding, channel marketing and point of sale strategies. Technology-driven differentiation tends to be more robust and sustainable relative to other forms of differentiation. Firms can seek to be differentiated not only by offering highly unique products but also offering a diverse range of products. In many cases, single product differentiation becomes vulnerable and firms are forced to field a broad range of products to meet multiple consumer needs. There was a time when Maruti-Suzuki held almost 100 percent of the Indian car market with only one product, the 800cc car. Yet, its dependence on small cars coupled with entry of other global car manufacturers in India led Maruti-Suzuki cede 50 percent of its share to competition. Diversity for a firm leads to differentiation of sorts. Diversity does not, however, stop commoditization. Many analysts equate with commoditization with genericization, and vice versa. This, however, is not necessarily true.

Commodity

In strategic discourse, commoditization is a concept that is used rather extensively as a driver or outcome of competition. Compared to innovation, commoditization figures more prominently as an inevitable concomitant of a developing industry structure. Many analysts suggest that commoditization is a direct consequence of lack of competition on one hand and excess of competition on the other hand. It is now hypothesized that no industry, however technologically advanced it is, can escape commoditization. For example, unbridled competition in smart phones is making the high-technology products look like commodity products, freely available off-shelf; a proof that no product group can escape the specter of commoditization. However, commoditization is not just related to competition.  Understanding the theorem of commoditization in strategic parlance requires the understanding of the word itself. Common words often get layered with folklore especially in strategic discourse!

Simply put, commodity is a raw material or a product that can be bought and sold. Some analysts believe that materials that do not have differentiating characteristics are free commodities. Some others believe that even when no differentiation exists, the demand-supply equation determines if certain products are precious commodities. Some commodities like oil, gold and water, which are non-renewable natural resources in varying degrees, tend to be precious while some like grains and metals whose production can be stimulated tend to be more freely available commodities. Some believe that products and materials that are nature’s gift are commodities while products and materials that are worked by human design and manufacture are considered non-commodities. Even this approach does not work because a product of great human effort like steel is often considered a commodity. In a sense, there is no straight correlation, in any combination, between natural occurrence, human development, preciousness, differentiation that can define commoditization.   

Commoditized shakeout

Commoditization is a resultant of a number of factors: abundant natural availability, ready usability, shared characteristics, surfeit of capacity, basal need fulfillment and so on. Any product, even if reflecting the highest level of human ingenuity, can become commoditized with time. Any commodity could also turn precious and differentiated if it ceases to be naturally available, gold for example. A commodity could become differentiated if it can be worked on to imbue special characteristics, diamonds that are cut uniquely for example. If a commodity like oil can be developed to reduce friction and reduce pollutants it becomes differentiated. When first introduced, a mutual fund instrument could have been very special but today it is completely undifferentiated and commoditized. The same with a special lending instrument like housing finance. It was made differentiated with a specially established institution, Housing Development Finance Corporation but with all the banks treating housing finance as a key component of their lending portfolio the instrument has become commoditized.

Commoditization is a concomitant of two principal factors: easy availability of materials and easy availability of technologies. Together, they determine the height of entry barriers to an industry. When faced with this, the first response of the firms and industry is to drive down the entry barriers even more, almost to a level of a shakeout in the industry. Emerging markets such as India are particularly prone to the phenomenon of commoditized shakeouts. Several industries, as diverse as motor pumps, lubricating oils, airlines, television channels, home foods and bulk drugs, to quote a few are witness to the commoditized shakeout phenomenon. The strategy adopted by most firms, when faced with commoditization, is to seek cost leadership to avoid being the victims of shakeout. This strategy has clear a floor level of cost-price below which it cannot be pursued, except at the risk of self-annihilation. The ideal strategy to address this is to have differentiated products all across the firms but it is easier said than done. As mentioned earlier, only a few firms which possess high technology and resources can hope to pursue differentiation in the face of commoditization (the “Haves”). If differentiation is for the Haves, the Have-nots need a relevant strategy; this blog post proposes de-commoditization as a novel strategy for the Have-nots.   

Differentiation for the Haves

Differentiation is not a mere function of financial resources. It requires visionary ideation and smart strategizing. Technology that continually fulfills higher levels of needs helps in differentiation. Basic human needs of communication and socialization are continuously expressed through different levels of technology, from the early telegraphy to modern day satellite communication. Socialization has kept pace with communication technologies but have essentially utilized the communication portals and cloud infrastructure. Future technologies could be extensions of human intellectual and physical activities. Socialization can take the reverse route to induct robots as part of everyday life. These kinds of differentiation requires two types of Haves, having technological innovation as the first core competency and customer outreach as the second core competency.

The possession of these core competencies enables firms to continuously innovate new products that fulfill the human needs in completely different manners. Those who utilize the core competencies to undertake only incremental innovations cannot achieve true differentiation; on the other hand, they deliver small incremental improvements through high levels of technology, leading to adverse cost-value relationships. Those firms which have true technological and market competencies are truly firms of destiny for industry evolution. While the pioneers qualify almost naturally for the differentiator role (for example, Cadbury’s in milk chocolates, Danone in dairy products, Kellogg’s in breakfast cereals), time to time new differentiators emerge (for example, Nestle with KitKat). The Haves should rightfully concentrate utilizing their core competencies to setting newer product trajectories. Given that this requires huge investments, the Have-nots would need a different approach.

De-commoditization for the Have-nots

De-commoditization at one level is responsible business management. It avoids trivializing a product through self-destructing strategies. Launch of a new product at a huge price premium but immediately offering buybacks and cash-back discounts trivializes technologies and products. The first step towards commoditization is an almost unintended consequence of volume-driven marketing or cost reductions. The right strategy of de-commoditization is to hold, and if possible even reinforce, product specifications all through introduction and growth phases of the product life cycle, even in the face of new competition. The second step in de-commoditization is to avoid frivolous market segmentation. While offering products at different value points is inescapable, mindless jumbling up of specifications for driving up product proliferation adds to commoditization. The right strategy of de-commoditization is to keep the product lineup simple and meaningful.

The next challenge of de-commoditization arises when the inevitability of commoditization happens. De-commoditization can happen in one of three ways. The first is by building value adding features in a commoditized product (for example, extending a yogurt product in two directions of low-fat range and high-energy range). The second is modifying a product to deliver two principal functions in place of one principal function (for example, making a gaming device like Kinetic that helps gaming as well as exercising). The third is retro-designing a product to rediscover the roots (for example, bringing smart watch technologies to conventional Swiss watches). De-commoditization requires a disciplined Kaizen mindset that upholds a product’s value in the eyes and heart of the consumer always. It will not require the mega investments that the Haves splurge on differentiation drivers but will certainly need a keen eye for detail and a penchant for simplicity and functionality in a mindset of quality.

Posted by Dr CB Rao on April 6, 2014                            

       

MAYA as Reality: The Embedded Magic of the Indian Traditional Knowledge

Everyone finds India to be enigmatic. The country has hoary history, rich culture, vibrant energy and penchant for progress. Yet, the country has huge contradictions such as sparks of plenty amidst swathes of poverty, genuine order in chaotic disorder, and quest for growth amidst bouts of stagnation, to name a few. India is today as industrial as agricultural. India is as materialistic as spiritual. India is as reverential as iconoclastic. India is as independent as conformist. India loves huge cars but puts up with narrow roads. India is full of resources, human and other factor, but lacks the will to utilize them productively. India as unified as diverse. Indians are global but for one Nadella in Microsoft, possibly there are scores in TCS or Infosys. India is awe inspiring for its religious, spiritual and yogic gurus. India is surprising also for its craving for all things that are Western and materialistic. India has a singular desire for progress but loses focus ever so often.  Are these contradictions real or imaginary?

Indian literature and culture have a Sanskrit word called ‘maya’, meaning illusion. The Vedas have several references to the word maya, one of which refers to power. The question, not unnaturally, is whether the Indian hypothesis of economic growth and global dominance is an enigmatic maya, an illusion, or a powerful reality, another shade of maya? As certain Indian products and processes get the flack in certain markets, the question arises as to whether the global product conquests of Indian firms constitute illusory transience or sustainable reality.  As rapid-growth Indian startups as well as highflying corporate firms suddenly stutter and stop, the question arises as to whether the great Indian entrepreneurship is illusorily strong or conspiratorially buffeted by adverse winds.  As with the essence of maya as a concept, there is no realistic description or quantification of maya. The debate of contradictions can continue endless but this blog post has a different take on maya as the core of a uniquely Indian enigma, MAYA.    

MAYA, the four dimensional concept     

There are four parts of the Indian tradition that have not been evident in any other civilization, from so many centuries ago and in a deeply scientific manner. These are Mythology, Ayurveda, Yoga and Astrology, making for an acronym MAYA. What connects these four heritage domains of India is a great and powerful thread of logical emotion, respect for the Divine, holistic understanding of human body and mind, and discovery and application of science in an age in which people had nothing to help in analysis and computation except the mind and fingers. As more and more scientific concepts get validated, reflecting the knowledge embedded in MAYA, it is clear that the Indian forefathers imagined and analyzed several centuries ago what modern science is now focusing on. Probably, a bit of this is true of other oriental civilizations but the Asian civilization does have a strong shade of the exquisite Indian MAYA.

MAYA for the modern Indian is a tradition, deeply ingrained in the psyche despite all his or her external trappings. MAYA, as a framework, ought to govern the emotional and physical health of an Indian as an integrated paradigm. What is equally important, however, is the logical and scientific fervor, and also possibly years of research, that has gone into establishing these four domains of knowledge. Envisioning, strategizing, perfection, accuracy, attention and discipline, and several other virtuous aspects that are required to be a part of modern day thinking, and critically viewed as missing in the current Indian way to an extent, had all been integral parts of the MAYA framework. Even more importantly, these have been carried through generations and across centuries without any modern means of communication such as printed paper! Clearly, there was far more competence in the Indian ethos than is apparent today. A deeper look at each of the MAYA components reveals that.

Mythology

Every religion and nation has its mythology. But no nation or religion has the mythological diversity as the Hindu religious mythology has. Mahabharatam (scripted by Maharshi Veda Vyasa, in and around 1600 BC, in fact believed to be dictated to Lord Ganesh), Ramayanam (written by Maharshi Valmiki, in and around 200 BC) and Bhagavatham (also by Maharshi Veda Vyasa) are three of the great epics (oe Puranams), and so are several other mini-epics of diverse Indian cultures. They are more than epic stories of divinity, statecraft or governance; they are principles of human and family dynamics in all dimensions, including the emergence of evil, nurturing of good, and the triumph of the good over evil. Purely from a scientific viewpoint,  one must also admire the great imagination that brought in, several centuries ago, the concepts of darting arrows (villu and ambu), flying chariots (pushpaka vimanam), and virtual reality (maya sabha), which are the scientific discoveries of the very recent generations. As we go contemporaneous, the society must start abhorring the evil and accepting the good so that the modern society can be built and developed more on togetherness and collaboration rather than on craftiness and jealousies. Every Indian must wonder if the ancient society could visualize such dramatic scientific apparatus, with nothing except the power of mind, why the modern Indian cannot visualize new products with all the knowledge and tools now available!

Ayurveda

Ayurveda is the ancient Indian science of natural healing. It understands the body through its natural phases and cures it through the natural plants and herbs. Several compounds developed or now understood by modern medicine have been of integral use as the traditional Indian herbs and spices. While a few like turmeric and cinnamon may have captured greater fancy, every herb and spice used in the Indian cooking has had a curative or wellness property. More importantly, the combination of such natural food ingredients with an ayurvedic way of dealing with the body toxins makes ayurveda a holistic science. Equally relevant are the various Indian food styles which have certain certain scientific rationale, in terms of the recipes and sequences. Unfortunately, while so much research goes into the Greek mediterranean diet or  the Japanese Okinawa diet, practically no research gets done on the various types of Indian diet and their impact on human health. In fact, without understanding the subtle nuances of the Indian dietary systems, there is a tendency to blame them uni-dimensionally. It is time that Indian institutes and laboratories start understanding the Indian dietary systems and ingredients. Just as another example, something as traditional as Ugadi Pachadi (a special offering prepared on the occasion of the Telugu New Year) has significant scientific logic! Charaka (in and around 300 BC) wrote the ayurvedic medical treatise Charaka Samhita while Sushruta (in and around 600 BC) wrote the ayurvedic surgical treatise and Vagbhata (in and around 600 BC) wrote Ashtanga Hridayam and Ashtanga Sangraha.

Yoga

Yoga probably is the most universally popular components of the Indian tradition. It has two important dimensions. Yoga as the Hindu philosophy teaches one how to control one’s body and mind in the belief that one can become united with the spirit of the universe through that. It also represents a system of scientific exercises for one’s body and for controlling one’s breathing, to become more relaxed and fitter, synergistically. While it is so well appreciated and accepted, its adoption by the educated class, let alone the common man, in India has been extremely wanting. People seeking fitness are open to running on tread mills for hours but are unwilling to spend a few minutes on the all-curative yoga. Integration of yoga in the curriculum of students from the primary school stage, integrating yoga in physical therapy courses, offering specialized yoga courses leading to diplomas, making yoga studios part of all fitness centres, and developing community yoga centres could be a holistic strategy to make yoga an integral part of everyone’s daily life. Maharshi Patanjali (in and around 400 BC) probably wrote the greatest of the Yogic texts.

Astrology

Nothing demonstrates the ancient Hindu knowledge and competencies in mathematics, physics and natural phenomena more than the Hindu astrology. Astrology plays an integral part of every devout Hindu’s life, from birth to death, and for individual activities or family matters. It is based on the premise that the positioning and movement of heavenly bodies, including the grahas (or planets) have significant impact on the lives and living. While a part of the scientific community fails to accept astrology, especially the predictive astrology, the population as a whole has total or subtle beliefs in the Hindu astrology. More than the outcomes, and the rituals, the exact science used by the Hindu sages (Sages Agastya and Bhrigu, in and around 2500 BC) and the Hindu mathematicians and astronomers (Arya Bhatta and Varaha Mihira, in and around 500 and 550 AD, respectively) in developing the Hindu astrology without any scientific and technical aids whatsoever is truly amazing. While being respectful and reverential to astrology as a spiritual science and religious branch, it is equally important to recognize the power of the human mind to undertake complex calculations and develop sophisticated theorems all by itself. The spirit and science of astrology would continue to strengthen the scientific way.

MAYA: less of illusion, more of power

We started off with the semantics of maya as being reflective of two most important concepts of several concepts relating to the word in the Hindu tradition. The review of the four components of Mythology, Ayurveda, Yoga and Astrology, as above, suggests these four together as MAYA represent a deeply embedded nature-driven and scientifically sharp holistic approach to human living. Even as Indians must learn modern curricula and contemporary skill-sets to be relevant in a global scenario, the traditional knowledge base and application practice of MAYA must continue to be promoted and revived with greater understanding from the Indian society and the Indian governments. This blog post could touch upon only a few of the ancient Indian works, several scores remain to be mentioned in various Indian languages. Institutes dedicated to traditional Indian studies could revive this process. Eventually, India will need more than one Nalanda University to support the process. Each State would need an Institute for bringing the best of the embedded traditional Indian knowledge into the bodies and minds of the Indian society, for greater good and sharper focus towards growth and equity.   

Posted by Dr CB Rao on March 30, 2014     

(Note: Any mistakes or approximations in the mentions, in this blog post, of the periods of the great Indian sages, writers and experts of the previous centuries may kindly be excused)   

From Product Life Cycle to Process Life Cycle: The Need for a Paradigm Shift in Managerial Thinking

Amongst several managerial concepts, the concept of Product Life Cycle has been one of the most enduring concepts. The concept is based on the fact that every product goes through four distinct phases of introduction, growth, maturity and decline in its life. A product’s life journey is depicted by a curve which is plotted on the two axes of time (X-axis) and sales volume/value (Y-axis). The nature of the product life cycle curve varies based on the nature of the product, the firm and the industry. While the level of innovation in a product determines the extent of introduction and growth phases, the level of competitiveness and competition determines the onset and extent of maturity and decline phases. All firms would like to shorten but spike up the introduction phase, enhance and extend the growth phase, delay and sustain the maturity phase and preferably avoid, and if unavoidable supplement the decline phase with a new product life cycle.

Ideally, product life cycles occur in waves. As one product moves into the latter half of its growth phase, the agile and innovative firm would seek to bring a new product (complementary or substitute) into the introduction phase. An overlapping wave structure of product life cycles moving with time ensures that a firm retains market dominance, with a portfolio of products. Firms which are market-savvy and technology driven are in a continuous quest for product life cycle optimization, including extending product life cycle through product improvements in the maturity phase of the life cycle. There tend to be cases, of course, when it would be either infeasible or unviable to stay with an outdated product beyond a particular time point and below a particular sales volume/value. Firms are so focused on developing, improving and replacing products that they miss another important aspect of all human and organizational endeavor, which the author of this blog post would call the Process Life Cycle.

Product-process nexus

When the word “process” is mentioned in technical or administrative discussions, the intended, implied and absorbed reference tends to be on typical operational or organizational process, be it functional or administrative. Processes do get improved, but often with newer equipment; to mention two examples, machining of components is improved with newer, high tolerance machining centers while analysis of a food ingredient is improved with newer, more sophisticated analytical equipment. As new products get developed, often requirement arises for new materials and new processes; to mention two examples again, radiation therapy is improved with newer, high precision diagnosis of malignant tumors while the pharmaceutical product is rendered more efficacious with a new delivery system. The process-product nexus is often in terms of improved development, manufacture or delivery of the product.

The less visible product-process nexus is in terms of how a product forms a part of a larger process network. There are four aspects to this in terms of changes to products and processes. The first is that products change but processes do not; an example is one of computer replacing a typewriter but the office documentation processes remaining unchanged. The second is that products do not change but the processes change; an example is one of computer remaining the same but paper transmission moving from facsimile to scanned electronic transmission. The third is that neither products nor processes change; examples are some of the basic needs such as writing instruments and writing. The fourth is that both products and processes change; an example is one of land phone becoming a smart phone and it becoming a medical companion and communicator. This phenomenon of both product and process clearly is the most important combination for continued progress. It is important to note that like products, processes also must have life cycles of their own to drive totalistic progress.    

Process life cycle

Like products, processes also should be deemed to have a concept of life cycle. It is, however, not one of introduction, growth, maturity and decline as is the case of product life cycle. The stages of process life cycle are improvement, optimization, stabilization and substitution. Every process intrinsically cries out for improvement. Some improvements are driven by learning efficiencies while some are driven by new products. A housewife improves the cooking process by experience on one hand, and use of modern kitchen gadgets on the other hand, for example. An improved process leads to optimization. Optimization involves continuous experimentation to arrive at the optimum combination of products and learning efficiencies to ensure the best possible quality, consistency and stability in the processes. A skilled housewife knows, for example, which products and processes are best suited for particular recipes.

Stabilization is that phase which lets an optimized process remain in a state of control. The way a restaurant works to deliver a standardized menu, day after day, is an example of a stable process. Substitution represents a phase where dramatic changes take place transforming the very essence of the process. The first time a pressure cooker entered the kitchen, the microwave changed the way of cooking or an automated food making equipment line entered the restaurant space represented a substitutive process, in each case. Each of the four phases of process life cycle has certain unique characteristics in terms of change management. In the improvement phase, users are typically experimental, in the optimization phase analytical, in the stabilization phase contended and in the substitution phase impatient. It is important for firms to be cognizant of the market expectations as they seek to understand and define process life cycles.

Life cycle synergy

The interplay between product and process life cycles is a critical factor in sustainable development. In an ideal scenario, there must be a one-to-one correspondence between the four phases of product life cycle (which are necessarily sequential) and the four phases of process life cycle (which are not necessarily sequential). Achieving this consonance is a great challenge because while the product life cycle can be responded to by the firm with product development actions, process life cycle typically has to contend with several internal and external factors. To illustrate the opportunity and challenge of internal consonance, let us take the example of a green-field automobile project that is to be established. It is easy to adopt the most advanced manufacturing equipment and utility services to turn out the most advanced cars but this exercise tends to be largely a matter of comparison and choice from among the available equipment. However, the adoption of the right phase of process life cycle of automobile operations, in terms of improvement and optimization, requires a different thinking in terms of layouts, utilization of space and people practices. Such an effort would, however, be well worth the effort.  The above is an example of an operational process leveraging the new products of equipment industry to deliver greater value through people and practices.

To illustrate the opportunity and challenge of external consonance, within the same industry, let us take the example of a driverless car as a new product. For even a nominal introduction phase, the customer segments, at the minimum, have to be prepared to be experimental and seeking improvements. If the customers are in stabilized phase, it is unlikely that the driverless car would receive the required reception. On the other hand, if urban traffic systems become chaotic with bumper to bumper, unsafe driving conditions and inordinately long travel times, the transportation process life cycle would be in the substitution phase, welcoming a driverless car. Understanding and driving change in the life processes tends to be a key success factor in the evolution of well matched product life cycles. Product evolution racing ahead or trailing behind process life cycle could lead to dissonance. Reverting to another example, could there be an automated kitchen gain acceptance with the homemaker by itself? Would a completely automated homemaking product be a better solution for the homemaker? Quite unlikely, without the homemaker being driven to completely reconfigure as to how she would prepare ingredients, cook recipes, and store the cooked food in the first case, and how she would ensure a safe, efficient automated networked home from remote location even while at work or on travel . A high level of readiness in substitution phase of the homemaking process life cycle would be required for new automated home solutions.

User psychology, process cycle

The common view is that product drives process or that users get enamored by products. For example, had not high end photography been brought to simple cameras and smart phones would photography have come to the hands of common people or more importantly would social networking with photo walls and video clips have been possible? The superficial view thus is that product drives the process or consumer choice. The truth, however, is that the innovative product designer imagines the new process and designs the product for such new process. Very often, the designer, and the firm in the overall, will need to create an ecosystem of materials, equipment, accessories and applications, in fact a total process ecosystem, to make the idea work. Once this is done, it becomes the responsibility of the marketer to enable the users discover the benefits of the new product-process ecosystem. Not many firms understand, however, understand how the product and process life cycles are intertwined in terms of the user psychology.

The user psychology has four components of exploration, experience, choice and acquisition. From a manufacturing process that is validated in the shop floor to a home asset acquisition that gets completed in the realty market, the four components of user psychology drive the process life cycle. While single window is an oft repeated concept, very few firms shape the process life cycles around the user psychology. The success of today’s mighty global technology firms such as Google (as the global search engine) as well as the new homegrown startups such as redBus (as the bus ticket provider in India) is based on leveraging the process life cycle concepts with the right awareness of user psychology. The difference between successful firms and not so successful ones as well as between successful societies and not so successful societies is anchored on how well they understand the importance of process life cycle (as compared to just a product life cycle) and imagine and shape successive waves of new process life cycles. While all this may appear to be serious essay stuff, the simple message for firms, both startup and grown up, is to perceptively imagine a new process life cycle that satisfies the user psychology on an ongoing basis – product successes would follow almost as a corollary!

Posted by Dr CB Rao on March 23, 2014

Dispassionate Analysis and Passionate Execution: The Winning Combination for Optimal Outcomes

Business and administrative organizations are constantly focused on positive outcomes. The outcomes vary across organizations but there exist some common threads. Business organizations look for growth with profitability. Administrative organizations look for development with equity. Executives delivering business activities and officers taking administrative actions depend on certain visions, strategies, plans, policies, systems and processes (collectively, the Organizational Processes) to achieve results. Many times, however, despite considerable academic and practical knowledge, executives are often at a loss to understand why all the Organizational Processes, or simply the Processes, do not deliver the intended outcomes. In fact, it is the differential performance on the Processes that determines why some organizations tend to be more competitive and successful than others.

In parallel to this, there is an oft held belief that if passion is injected into the Processes, the outcomes would be efficient and effective. This is, however, only partially true. In an organizational context, passion is a strong feeling of belief for, and enthusiasm on, something, mostly an outcome. People with passion are easily differentiated from those who lack passion. People with passion lead others while people without passion merely manage, at best. Passion, however, is not an all-inclusive mantra. Competency constitutes the basic platform for performance while passion provides the additional thrust. Even so, competency and passion, even if together, do not still explain the differential performance in firms possessing similar competency-passion profiles. The reason, probably, lies in passion itself. As we have seen, passion has a strong emotional component of belief and faith. In human endeavor, there exist some activities that are moved by faith and belief but there are quite a few others where passion is not required, and could even be counterproductive.

Passion with balance

Human traits are multifaceted. At the core of one’s performance lies competency. Competency is acquired over the years as a result of aptitude; an innate and natural preference to acquire certain specific types of knowledge and skills, and operate in certain specific domains. When passion is built on both aptitude and competency it becomes a tremendously positive force driving positive performance. If there is a lack of such alignment, for example passion without aptitude and competency or vice versa, the performance outcomes would be poorer. Passion to be a leader works but it would be even better if the leader has genuine aptitude for, and competency in, his or her field of performance. Similarly, high aptitude and competency may not be effectively translated into the full potential of performance without passion. Ability to introspect where one’s aptitude, competency and passion lie is an important component of one’s leadership journey.

In leadership journey, no leader can usually be successful unless he or she is truly passionate. At the same time, all passionate leaders need not necessarily be successful. The reason lies in the characteristic of passion itself, which is the determination to pursue an activity or execute a project till the desired outcome is achieved, and the willingness to undergo any personal or professional sacrifice in this pursuit. A mindless pursuit of passion can lead to an emotional overinvestment in causes that have outlived, much to the detriment of business. Passion requires the balance of logic and perspective to ensure that the business or administrative purpose is not lost sight of. If these filters are not applied in passionate pursuits, the changed reality may be lost sight of, or more dangerously reality itself may be viewed in a distorted manner.  Healthy passion for one’s business or administration brings clarity of purpose and focus, and leads to sustainable growth.  To understand how balance in passion could work, we have to dwell on the two core processes of the typical human mind: analysis and execution, which form the core pillars of all business and administrative action.

Analysis and execution 

We have defined Organizational Processes as being visions, strategies, plans, policies, systems and processes. Of these, the first three require, and support, the faculty of analysis in a significant manner. The last three require, and enable, the faculty of execution. Analysis is the faculty of understanding the nature and structure of anything. Analysis involves the ability to grapple with multiple data points and develop patterns that aid decision making. Analysis is not only about quantitative parts of business or administration. Analysis also is relevant for intrapersonal and interpersonal aspects, including feelings and relationships. While conceptualization, the faculty of forming an idea or a construct, is an important faculty, it is the analytical faculty that develops rational pathways to achieve business or administrative objectives. Analysis is one of the critical faculties that continuously occur in human mind, even as all other faculties from conceptualization to execution keep working. Probably, only the level of analysis would vary across people; but some analysis is integral to every human being.

Execution is a faculty that enables people undertake a task in a structured and skilled manner. While analysis leads one to arrive at what could be appropriate decisions considering available inputs, execution enables implementation of the decisions. Vision without strategy, strategy without plan and plan without execution would remain as pipedreams. The way to outcomes is through execution. Execution requires all of the Processes that are mentioned herein. The better formed they are, the better would be the execution. Successful companies take their time in putting the Processes in place prior to execution. Probably the best model to describe this is the way a construction project gets done, from architectural vision through construction strategy to engineering plan that are executed as per construction policies, systems and processes. In construction projects it is understood that unless all the six elements of the Processes are in place, construction cannot be flagged off, except at the project’s or people’s peril. Unfortunately, the same does not seem to be the case in respect of ordinary business and administration projects.  

Dispassionate analysis   

Contrary to popular perception that analysis and execution are sequential, they are in fact integral to each other. Analysis would be unfocused if the desired outcomes and execution capabilities are not kept in perspective. Execution could lead to wrong results if contemporaneous realities are not taken into account. Analysis requires dispassion and execution requires passion, and both analysis and execution require each other. It is easy to get biased while undertaking analysis; bias that gets influenced by one’s own past successes and failures or others’ current successes or failures. As an example, if an airliner is passionate about being a leader in the Indian airlines industry, despite the inherent loss-making and consolidation, such an airliner, despite its losses, could still place multi-billion orders for new aircraft! If one is dispassionate about ensuring profitable growth in a bleeding industry, the same low-cost airliner would apportion just a minute fraction of the multi-billion capital investment to several on-ground and in-sky investments to improve user experience and win customer loyalty on considerations other than crash fares.

In perpetually evolving industries with fast changing technologies, yesterday’s execution passion could be today’s outcome liability while being dispassionately analytical could be an asset. Being dispassionate means a state that is not influenced by emotion and an ability to take a calm and impartial view of things. Nokia’s decision to embrace Android operating system (for low and mid range phones) despite its rejection earlier in favor of Windows (which continues all across the smart phone range) is an example of being dispassionate about the past, and objective about new decisions. Microsoft’s reported decision to license its Windows OS for free for select emerging markets is yet another example of dispassionate analysis. While some may dismiss such decisions as mere opportunistic plays or practical exigencies, the truth remains that such decisions have strategic import and cannot be taken without dispassionate analysis. Dispassionate analysis enables leaders in some cases steer clear of emotional overinvestment in strategy and execution that could have lost their utility, and in other cases compensate for the underinvestment in opportunities that emerge from time to time unanticipated.

Passionate execution

Execution gains immensely from the Processes being in place in an organization. Passionate execution overcomes the limitations in the Processes. The high performance of entrepreneurial startups is driven by passionate execution. So is the completion, against odds, of complex construction and infrastructure projects. The successful execution of Delhi Metro Rail is attributed to the passion of its Chief, E Sreedharan.  The successful development of India’s first indigenous car by Tata Motors is attributed to the shared passion of Ratan Tata, its Chairman, and V Sumatran, its Chief Designer.  Yet, successful execution, however passionate, also requires continuous dispassionate analysis. Nothing illustrates this requirement more than the surgeon undertaking a surgery. Prior to commencing a surgery, the surgeon would have all the Processes laid out, and assimilated but when he or she opens up the abdomen or the chest in the conventional way or peeps inside the skull with robotic assistance, he or she could face a completely unexpected situation. Successful surgery under such a circumstance requires not only passion to save the patient but also dispassionate analysis that balances a new reality with the pre-formulated hypothesis.  

Leadership journey would be truly rewarding for organizations and their leaders when their passion for execution is balanced by dispassion in analysis, and their relentless focus on execution is accompanied by a continuous update with analysis. Professionally, analysts and executors could be different specialists but in leadership they are one and the same. If leadership is one of managing paradoxes, the most challenging paradox is one of reconciling passion and dispassion in one’s own leadership personality. This does not come easy; requires a high degree of reflection and introspection on one hand and a healthy respect for value of alternatives and the value of time on the other. Certain leaders are able to manage the paradox by having leaders around them who have dominant streaks of these attributes, and collaboratively manage them for effectiveness. Whether a leader achieves such balance of passion and dispassion singularly or through the leadership team could be a matter of choice but to ensure an appreciation, across the organization, of the winning combination of passionate execution and dispassionate analysis for optimal outcomes is mandatory to ensure sustainable growth and profitability of business organizations as well as development with equity of social organizations.

Posted by Dr CB Rao on March 16, 2014