ACTE Asia Pacific

Interview with Rama Bijapurkar

Rama Bijapurkar is an independent director on several of India’s leading corporations’ boards including Infosys Technologies. As India’s leading thought leader on business she is also an accomplished author of several books. Rama will speak about, Keeping Strategic Focus in Constrained Markets, at the ACTE 2008 Asia-Pacific Education Conference on Wednesday 20 August in Singapore. Rama shared some of her thoughts with Kenneth Phua, ACTE Regional Director Asia-Pacific, in a recent interview.

KP: What signs suggests that a strategy is disconnected from the realities of a market?

RB: A good tell tale sign is when the business plan numbers are done with the entire GDP of the market and the entire population in mind; while the strategy is done in such a way such that it applies only to the tip or top of the iceberg of the country i.e. appropriate only to serve 5 – 10% of the population (because it is transplanted from a far more affluent market). The expected results don’t come, local management is forever locked in “explanatory combat” with head or regional offices, and CEOs heads’ begin to roll at an alarming rate, leading to more strategy ‘flip-flops’.

KP: Some business practices are recommended as global standards. To what extent do you agree or disagree with this statement in the context of India’s (or this region's) business environment?

RB: I think it is very important for companies to understand and appreciate the difference between religion and ritual. Business practices are rituals meant to express the religion. It must be adapted to local environments and local competition already existing and local incomes. Further a “global” best practice begs the question of what global actually is. Is it the emerging world, this Asian region, BRIC economies which will contribute to future global growth both economically and demographically? Is it the region where the bulk of the young in the world resides? Or is it the historical large GDP countries of America and Europe? My mantra is leverage global competencies to develop local businesses.

KP: What new rules of engagement should negotiating parties consider adopting in an era characterised by shorter and more dynamic economic cycles?

RB: Build multiple engines of growth – a hedged portfolio of businesses and / or target markets; have clear navigational principles and be flexible about your end destination of where you want your business to get to (it may not exist or be a good idea as time goes by); innovate new models for a new world; don’t be wedded to the rituals of the past but be very devoted to your religion i.e what you want to achieve for people in the market you serve and how and why you will make money doing so.

KP: Should suppliers operating in a market with hyper demand; and with no immediate access to additional supply, raise prices until the absolute threshold of pain has been reached?

RB: It will work in the short term but may create so much brand hostility that the minute someone else comes in and decides not to play that game; your customers may shift overnight. But it is a good idea to make up your mind on what your margin – value philosophy is and signal it to the market.