Richard Branson: Two Gems

The typical commute in Mumbai is harsh, to say the least. And, listening to insightful podcasts is a great way to make the most of your drive time.

One such talk I really enjoyed was a conversation with Richard Branson, founder of the international conglomerate the Virgin Group. Stephen J. Dubner of Freakonomics fame, spoke with Branson as a part of the series: “The Secret Life of a C.E.O.

While the entire series – including this episode – is worth its weight in gold, here are two takeaways that really made me stop and take notice.

1. When asked if he is actually the CEO of any of his companies, Branson had this to say:

… I’ve delegated pretty well all the C.E.O. roles. And I actually believe that people should delegate early on in their businesses, so they can start thinking about the bigger picture.

 

If I’m ever giving a talk to a group of young businesspeople, I will tell them, you know, go and take a week out to find somebody as good or better than yourself. Put yourself out of business, and let them get on and run your business day to day, and then you can start dealing with the bigger issues, and you can take the company forward into bigger areas, and you can — maybe if you’re an entrepreneur, you can start your second business or your third business.

 

And so I think too many young entrepreneurs want to cling on to everything, and they’re not good delegators.

I can’t tell you the number of people I know – personally – who need to hear this and truly internalize it. An “entrepreneur” and a “CEO” are two distinctly different mindsets. Some folks may be able to traverse the two worlds – fleetingly. But doing both simultaneously, and over a sustained period of time, is nearly impossible. The sooner an entrepreneur makes peace with that fact, the sooner he/she will be on the path to growth and success.

2. When asked about his famed approach to motivating people via employee-friendly policies across the Virgin group of companies, Branson replied:

… Let’s just look at this business of forcing people to come to an office.

 

First of all, you’ve got maybe an hour or an hour and a half of travel time in the morning, another hour and a half of travel time in the evening. And, you know, when you’re at the office, it’s important that you say hello to everybody and that you’re friendly with everybody, so you use up another hour or two, you know, socializing with people. Then, because you’re not at home, you need to communicate with your family. So you spend another bit of time communicating with your family. And so the day carries on and you might get a couple hours of work done.

 

If you’re at home, you know, you wake up. You can spend a bit of time with your family. And be a proper father, which is perhaps the most important — or mother — most important things that we can do in our life. But you can also find the time to get whatever your job is done, because you’ve got another four or five hours free to do it. And you know, we’ve never been let down by people that we’ve given that trust to.

Think about that. How many CEOs or business leaders do we know who are sensitive to the realities of day to day Life, the way the average employee perceives them? And, how many organizations can we speak about that actually “trust” their people to this degree? Work-from-home is just one dimension of this thinking; Branson also talks about a ‘prisoner program’ that Virgin runs to employ current and ex prisoners across roles, including in Security!

In my view, there has never been a better time to access the world’s riches. Insights are all around us, and conversations with folks who have done it all, are just a few clicks away. Some of us will make the most of it and learn from these experiences, while some of us will spend our time watching cute cat videos.

Change Is The Only Constant

The idea of ThinkShop was born way back in 1999, when I first started a web-design studio called UncommonWisdom to work on Internet-based Communication Design. My boutique consulting firm was way ahead of its time, but we were able to deliver some interesting work in the digital space, including digital strategy, website design and UX for enterprise-grade applications.

In its second avatar, ThinkShop began life in 2013, helping its clientele bridge the gap between Idea and Execution, until the end of 2017.

As an independent consultant at the helm of ThinkShop, I was fortunate to work with some of the leading players in Financial Services, Insurance and Education, on projects that included developing Customer Engagement strategy and Marketing Communication frameworks, User Experience Design across multiple platforms, and architecture for a 100,000+ page web presence.

With the beginning of 2018, I have decided to take up an assignment that, once again, offers me the opportunity to apply my skills to problems of scale. With it, I commence a new chapter in my professional life, as ‘Group Head – Customer Experience’ at the Edelweiss Group – one of India’s leading Financial Services conglomerates.

A big Thank You for all the support you’ve shown to ThinkShop and me.

Startup India: Taking Stock

Last month, Mint did a feature on Hits and Misses in the Indian Startup universe. It was a great opportunity to take stock of reality, since most of what we read about in the mainstream media is a function of “survivorship bias”. Here are some interesting statistics from that story…

  • The E-commerce sector alone has raised over $11 billion over the past decade – roughly 75% of the funds that have been raised by Indian start-ups during that period
  • Of the $11 billion, Flipkart Internet Pvt. Ltd has raised more than $4.5 billion, and is now India’s most valuable Internet company at $11.6 billion
  • The top five most-funded start-ups in E-commerce to have shut down had raised $51.1 million in total, which doesn’t include the distress sales of companies such as Letsbuy and SherSingh
  • $3.1 billion (including debt) was raised by Digital Payment startups, making Paytm – now valued at $7 billion – India’s second-most valuable Internet company
  • Of the 192 companies founded in the Cab Hailing category since 2007, 76 have shut shop; Ola is currently valued at $3.5 billion
  • Nearly 310 start-ups in Healthcare, of 2,678 founded since 2007, have shut shop; Practo, 1MG, Portea are the top startups in this segment
  • As many as 2,460 ventures in the Edu-tech / Education space incorporated since 2007; about 224 have shut down
  • Of the 2,420 start-ups founded in Hyperlocal (home services+food tech+delivery) since 2007, 780 have shut shop
  • As many as 514 ventures tried group buying model one way or the other, but at least 221 shut shop

Think about those statistics for a moment; There are plenty of lessons to learn from. Here are some of my personal takeaways…

  1. A healthy dose of funding was available to those who ventured out and attempted to create an organization of value
  2. The best known in each segment typically finds it a bit easier to gain preferred access to investors, markets and customers, simply by virtue of their size and brand salience
  3. Path-breaking, innovative ideas executed well are not the only recipe for success; Addressing a customer gap with great execution at a profitable price point can work wonders too!
  4. Despite significant resources at their disposal, and addressing a real customer need, countless startups did not survive the past decade

For some of you dreaming of launching a startup, posts like these may signify doom and gloom. For others, it will probably provide the inspiration to soldier through.

The fact is, not every venture is meant to succeed and not every startup will fail. “There is nothing in a caterpillar that tells you it’s going to be a butterfly“, said R. Buckminster Fuller. For me, the biggest lesson buried in these statistics is that building a successful organization takes decades, not years. There is simply no shortcut to it.