Things that my iPad will replace

Things that my ipad will replace (or I want it to replace) 1. Newspaper – the primary purpose of an ipad was reading(is what they say!). I started with TOI and NDTV app for ipad and was thrilled because they were good. This was till I realised that times have changed. I don’t want to read what TOi or NDTV want me to read. Iwant to build my own paper. So here comes Zite and Flipboard – where it is the news that I want, from mediums that I choose delivered to me. All that is left now is for me to discipline myself into reading it twice a day (and not refresh throughout) 2. Laptop – my office laptop. I haven’t picked it up for last two months. I don’t need it anymore. 3. Desktop – my home desktop – is not needed anymore. All my files are on cloud/ dropbox . 4. GPS in my car – with the  3G simcard installed – I have said good bye to the GPS in my car. My ipad does it and does it well. They are all talking about apple buying into few map companies – am eagerly waiting for news from developer conference in June. 5. Home entertainment system –I am going to install JBL airnote speakers soon at home and already have an ipad dock in my car. No need to invest in separate music systems. With apple TV – I will be able to stream all movies and music on my TV. The future of these speakers is when you can play different music from single itunes on your ipad in different rooms. 6. Book shelf– I have stopped buying physical books/ magazines. The very thought of having these on my ipad (though I prefer using kindle than ibook), and having them on cloud anytime that you want – is fantastic. Add to it the power of referring a dictionary, thesaurus and highlight or copy parts of book that you like. Icing on the cake is that this s at a discount compared to hardpaper editions in stores. I am not going back to crossword or landmark in near future. 7. Copier/ Scanner – with HDscan app – I had installed my plan to purchase a scanner/ copier for the house. I will be still investing in a printer that can print over wifi. The power of Optical Character recognition (OCR) helps in converting visiting cards to contacts and pages in word documents as an additional feature. 8. Gaming console – gone are the days when I used to aspire for psp handheld. With HD display – gaming has come a far way on an ipad. It is a matter of time when content/ game developers will follow and we will have the best of all EA games on an ipad. 9. Remote – no more remotes lying all over your house. You can control not only your TV, music system and camera’s installed in your house – but if required you can control curtains, alarms, locks, geyser and refrigerator. That is some power in your hands. 10. Alarm clock/ calculator/ calendar – those stupid alarm clocks in all my rooms, to see time and to wake up. Here it is all on my ipad, with information on weather, time in different cities and alarms synced to my calendar. Just waiting for SIRI update on ipad and it will be all new world. 11. Engagement for kids – from a drawing pad (without messy colours) to comics to mind games to interactive encyclopaedia – it is a fairly advanced teaching tool for my son than all the chaos that used to exist in my room as a child. 12. Camera – though this is slightly uncomfortable – I have still switched to taking pics and videos from my ipad (cant carry that massive SLR around). With iphoto and imovies – it is so rewarding to edit pics and showcase it to the world. My dream application will be built in projector and printer in my ipad. I am going to buy new HP air printer though which is close to having a printer "in" your iPad.

Being clever or kind ?

I was watching a you tube video - jeff bezos talking to graduating class of 2009. Very relevant thought he left with - we are all gifted, with intelligence. But we have to exercise the choice to be kind. When I look at it from organisational point of view - so many of us, in our over enthusiasm to prove our intelligence, make a choice not to be kind. It can be called politics, brownie points, #$$ licking - what is in a name. The fact remains that we try to draw a larger line mostly by erasing lines drawn by predecessor, colleague or bosses. I have made that mistake and have been at the receiving end too. But life teaches you - most of the people who are at the top, are the ones who made that choice to be always kind with their intelligence. Ones who never cared for individual mileage but for organisational benefit. I look forward to surround myself with more and more of such people.

Target Setting - for Store Managers

Targets for a typical store are like rains - they land from heaven and leave you wet (read sweat) all over !

In the absence of managers who are on top of their nos - area managers and operations manager use this as an excel sheet exercise to please their bosses at the start of the month (knowing that they will be able to come up with one reason or other by end of the month).

This is the start of mistrust and buffer at every level - and hence variable pay as a concept not being accepted in India.

Need of the hour is proactive store managers who can challenge this way of target setting.

An ideal store manager will set the targets in a simple three step manner :

Step I – Set Like for Like Growth objective
Look at the best of x% LFL (like for like) growth over last year same month and average of last three months.
(For eg - Last year Dec was 100 and company is targeting 15% LFL this year. On comparison of Sept to Nov achievement, LFL is at 18% - this automatically should give a confidence for 15% LFL achievement)

Once the broad no is agreed, move to step 2.

Step II – verify sales equation
Look at the sales equation – (refer previous blog.)
Sales = walk-ins * Conversion * UPT * AUV * (1-disc)
Put your achievement for last year same month in this equation and see what parameters that you will want to change.
For eg last year equation was
100 = 200 *10%*1*5((1-0)
From last three months, we have seen that Avg unit value has already increased for this season by 10%. Also our UPT for last three months have been 1.2. If we use same walk-ins and conv, it will lead us to achievement of 132 (32% growth over last year with same walk-ins and conversion)

Step III - Look at category mix
Once the broad no and KPI that will deliver that no has been agreed, deep dive into stocks.
Look at category wise sales and stock mix for the same month last year. Compare this with stock mix projected at the start of the month this year.
This is the most important tool with a store manager to keep brand and head office teams on their toes and also to serve the customer correctly at his/ her store.
Do not accept targets if the stock mix is incorrect. If I was the store manager, I will not only stop at broad category mix, but will deep dive into sizes for top three categories.

I hope – we will see more intelligent, proactive and assertive store managers in future. It is critical for success in retail

If someone wants to discuss formats for these , you can feel free to write to me at purohitvikas@gmail.com

Great by Choice - Jim Collins

Just finished reading "Great by Choice" by Jim collins.
Very simple read -with loads of numerical data supporting three basic "fundas"

1. 20 mile approach - talks about how imp it is to focus on doing what you have decided to do on a daily basis. if you have decided to run 20 miles a day - data supports the guy who runs just 20 miles per day (whether he is tired and not fit, or feeling extra energetic and fit - he does not reduce or increase the distance) v/s a guy who runs 30 miles when he is feeling great and 10 miles when he is not in the mood.

The illustration of how southwest airlines opened 3 sectors every year - year after year - for three decades v/s United and continental who opened 10 in good times and 0 in recession.

There will be critics who will say that with favourable tailwinds - why not run 30 miles. But I am sold on the 20 mile concept with my current experience.

2. Fire Bullets and then cannonball - How imp it is to try with bullets to set your aim correct and then accumulate all gunpowder to go for final charge. the importance of low cost, low risk and low exposure (to org) of experiments - and then pick the winners with data and fund/ fuel/ support them.

3. Oxygen Canisters - The guy who worries about oxygen when he needs it, v/s one who worries about it from day one. The funda holds true for insurance, SIP, early savings in life as well as cash/ debt exposure for the company.

In current retail scenario - one needs the leadership that can motivate teams to march 20 miles - in good times and bad times - one who can keep firing bullets and evaluate results without bias and ego, and one who do not risk future of entire organisation over egoistic store openings or so called "gut calls"

Retail Mathematics : One basic equation

Over last six years, i have conducted over 1000 interviews for store managers and store teams. To my disappointment, 99.99% of the people have been found lacking on basic retail understanding. It looks like we are creating a set of machines who know just two numbers - targets and achievements.... and nothing beyond that.
Simple questions like - "if you have been given a task to increase sales for your store by 20% over last year, what will you look at" - meet with the standars answers like "i will ask company to spend more on marketing" or "i will ask buyers to buy correctly for my store" .
For benefit of all others, who will go through interviewers like me, here is the equation

Net Sales = (Walk-ins) * (conversion)* (Average Unit Value) * (Units per transaction) * (1-Discount %)

hence to increase net sales :
1. Work on walk-ins - and DO NOT depend on marketing to drive walk-ins. Calls from customer database, acquiring new databases, better service resulting in increased frequency of customer visit - is what a store manger is supposed to drive.
2. Conversions - Most neglected aspect and a non measurable one too in Indian scenario. have never trusted these figures till date (be it guard with click timer or automatic walk in counter). Every single customer walking out, is a loss of sale - present or future.
3. Average unit value - if i have a store in the most premium mall of India - why will i want to drive sales through my entry  price points? One should understand how better understanding of consumers can help suggesting and selling higher price point items - which will result in increased AUV
4. Units per transaction - basket size as it is sometimes called. a dogged determination to increase this beyond two is required in every store. Whenever we have announced incentives, we have seen increase in AUV by 20-30% which clearly shows how much sales one looses in every transaction if employees are not completely motivated.
5. Discount - i have seen trigger happy brand heads who have "promo" as the solution for all increase in sales. It does not work that way. Control on discounts during peak season as well as judicious discount during EOSS is critical to optimal sales and profits.
And see how all of these can be done by people in the stores and not a marketing manager or buyer sitting in some office.

Career in Retail - Why ?

Career in Retail - a tough rewarding choice!

I was at a Management Institute on Friday, talking to students why they should consider a career in retail in today's economy.

While i will get into different options within retail in a separate blog, am trying to put together top 3 reasons why one should get into retail :

Reason No 1 - " there are no set rules still " - If you are one of the dreamers, who believes in old fashioned "create a dent in the universe theory" - this is the field. With hardly any work done on processes and management capabilities in Inian retail - the field needs people who hate to work with SOP's from day one in their job. No wonder, that people who deliver grow really fast. it took me 8 years to head a company, one of my friends became head of operations for one international brand in 5 years time.

Reason No 2 - "Young, fun and learning industry" - In one of my earlier jobs, i have stayed at a plant where average age was 50, and trust me - it was helll of a month for me. This industry is young, this industry enjoys college kind of culture at work - loves to see people making mistakes and learning from them.

Reason No 3 - "There is money - enough and more" - Yes, i have seen salary jump from Rs 2 lacs per annum to 28 lacs per annum for the friend of mine mentioned in point no 1. I have seen jump of 60 times for another friend who started her career with selling on shop floor. I have myself seen 15 times salary jump in these 9 years of my career.

In a nutshell - Learn, Earn and Fun - summarise three reasons to be part of this wonderful industry!!

Looking out for people who dream to create that famous dent in the universe.

Vikas

Retail Profitability - What is the answer ?

For the first five years of my career- the holy grail in retail was psfpd (per sq ft per day sales). All the numbers, buying plans, profitability projections, rental decisions - centred around what the psfpd projections were. The fact that India was shining (as they wanted to believe us) has something to do with this optimism (get the topline, profits will follow)
My next five years have seen shift to the level of obsession - towards Full price Sell Through and gross Margin % as the indicators of retail performance. Again - the recession, failure of many a retail ventures, and the perception that it is impossible to make money in retail has fuelled 180 degree shift.

In the last six months - working with arious teams- I have come to realise that age old "Rupee gross margin per sq ft" - is the term that will offer way ahead to people looking at profitability in retail.
While rupee gross margin per sq ft has always been the focus for bog box retailers, EBO's never looked at this as the concept to follow. No wonder there were missed opportunities on higher sales (trying to chase better gross margin %, or there were unprofitable ventures even after achieving stupendous psfpd's)

I am working on a matrix that can correlate the three. if the Disclosure policy of my organisation allows me to upload the results, should be able to do it in a months time.

Chase Perfection, not Success

These words have been cast in stone - when Aamir Khan used this line in his movie three idiots.
I started my career - chasing misplaced career Goals like - "To be a VP by the age of 35" . Very soon i gave up that aspiration and decided to be the "best retail experience designer in India, running a profitable retail company"

My first job exposed me to corporate world (no wonder still hold that group in high esteem). It was a job that was about branded wholesale business. Gave my heart, soul and everything to learn the fundamentals for five years. My batchmates, had changed 3 jobs by then and were at 2-3 times my CTC package.
My second job was my first step in the business of branded retail (which is very different from wholesale). Two years of hard work, doing things with passion, experimenting without any fear of failure, mastering the art of planning and operations - i proved to be a good student. Did not work for grades (promotions) but invested two years to learn retail.
My third job - helped me grow from a functional expert to a business head. Here i was, learning things about business plans, P&L statements, legal documents, Lease agreements - things that i always thought i will never be able to do. All credit to my CEO for pushing me into doing all of that. He was the one who was never satisfied with 95% application. He just wanted nothing less than excellence (it is another fact that even 115% did not satisfy him ever). Never bothered about people with much lower IQ at better or similar positions or salary.
And here i am in my fouth job - with the responsibility of handling multiple businesses. I have got this break so early in my career - only because of the way my learning happend in the first three assignments. Am going to give my heart, sould and everything - just like my first job - again - to make this a perfect organisation that i have always dreamt of.
The fact that my package is twice that of my B school batchmates - helps me to confidently state that chasing perfection is more profitable than chasing success !!!

Harbingers of change - where are they?

I was at a reputed management school recently for a reorientation program with Year 2 students. Nothing has changed there. the campus, classes, staff and unfortunately the way students are being groomed for the corporate world.
And I don't blame the management running the institute for this. I did not see the hunger in the students to change the system. the hunger to go out and be the catalysts, harbingers and implementers of the change. And when I compare this with another B school that i have been interacting with - i can't miss the comparison with the iconic ad - "we are no 2, we try harder"
The corporate life enactment of this same attitude can be seen when management trainees join the organisation. Within a year they are tamed by personalities or politics. instead of changing the things for the better, 80% of them change themselves for better positions. It never takes them far, but rare is the common sense to be far sighted.

To be or not to be

The more i think - the more i realise that life is what we make out of it. We have that amazing ability to choose - choose to be or not to be in any circumstance.
We can decide that we want to be there and excel in everything that comes our way after that. Or we can choose to move on. But - what we end up doing is staying there - and keep thinking of how good life would have been if we were not here, but somewhere else (and 98% of the times we are not aware of what that some thing else will be). and we do this because this gives us the liberty to be mediocre at work - justifying it with the sense that we deserve better things in life and are not made for what we are doing.
Such a pity - the amount of potential that goes waste.

10 things that I want to do in life

Ten things that i want to do in life

1. Master a musical instrument
2. Learn dancing (at least shed the inhibition)
3. Advanced MBA from an international B School
4. Work with P&G and Mc kinsey
5. Work as a career trainer with students
6. Master the art of cooking cakes and muffins
7. Work towards building a retirement home in Udaipur
8. Have my own website and blog
9. Six pack abs (have already bet Rs 25000/- on that)
10. Start a pet related business

I have not mentioned some personal goals as they are too personal to be put on public domain. But when I compare this list of mine with the one that I had while I was in college - there is a sense of satisfaction. The college list was full of things like the car I want to own, the designation i want to reach, the salary that I should get by the time I am 30 - it was all the things that they teach us not to run after in the last semester at IIM Bangalore :)
I will relook at the list every five years -will be a good snapshot of my evolution as an individual.

Relay race v/s Sprint - mindset change!!

In the 7 years of my career - I have reported to 6 managers . While the relationship with the first three was fantastic (still continue to be in touch with them) - it was a complete disaster with the fourth and the fifth one. Determined not to make it a hat-trick, have been able to work the relationship with the current manager really well.
But when i look back and reflect on what went wrong - the first reaction is that those two were not worth it. On deeper introspection, it strikes me where I had gone wrong.
I was in a student mode - behaving as a trainee with the first three managers. Constantly voicing my concerns, but going ahead with their judgement - realising that they have been through things before. No wonder we had a great relationship - where they valued my contribution and helped me fast track my career.
This went on for 3 years, and when I was asked to report to the fourth manager - the problems started.
Recognition at work resulted in confidence that I am good at it. Coupled with ambition to grow "very" fast, it gave way to cynicism for the way the fourth manager worked. Cynicism gave way to lack of respect for authority and experience - which started affecting the relationship.
Eager to move on in life - i switched jobs. Landed with a manager who was sharp, intelligent and had lots to teach me. But he believed in micro management, did not believe in anything called HR practises (the function did not exist in that organisation) and started getting insecure with more and more no of people looking up to me. And i started making it more obvious in every gathering. It gave me a sort of kick that people think i am better than my CEO. Things started getting uncomfortable and i decided to move on - in search of that perfect job and company.
I think I have learnt from the mistakes - realised that managers are human too - they will make mistakes, they will be insecure - but at the end of the day they will have so much to add to you . It is up to you to make it a relay where you help each other win - or treat it like a sprint where you think you are competing with them.
Both my managers (fourth and fifth) still keep me alive in their conversations (by mentioning not so sweet things about me). So here I am - reflecting on how I would have behaved if life offered me a chance to redo things. Unfortunately, i have still not become so magnanimous to go and talk to them, offer an apology for the mistakes on my part. So i am trying hard to make the present work - and believe in the power of a relay race over a sprint.

Do we need destinations or is it the journey that matters!!

So it has been a long hiatus - and a lot has changed in this year and half.
New job, new city, new family member (my son aahaan), new friends and a totally different perspective to life - post recession.
The frustrations of mid-life crisis (career wise) have started knocking at the door. Confused about where i am in life - in the absence of any other parameter - have started checking out where are my batch mates from B school. I have figured out, while everyone has reached a AVP, associate stage - very few have gone ahead and done what they wanted to do in life (Karan Bajaj has authored a book and Gaurav Mishra has started doing what he is best at - giving gyaan :) There are others who have tuned entrepreneurs and some who have made lots of money but are still not happy.
Typical of a B school pass out - am finding solace for my dissonance with rg (relative grading)
Have started asking a fundamental question to myself -
"Do we all need destinations or we can cherish the journey as life"
(as a travel enthusiast, i have mostly enjoyed the journey more than the destination.)
Have decided to keep this blog dedicated to mostly my experiences - from B school to management trainee to AVP Retail - things that i regret and things that i celebrate - as a memoir that i will want to sit and read again and again when i hang my boots, and as a "what not to do guide" for young graduates from B schools.

Taare Zameen Par

Just returned home after watching this movie - Taare Zameen Par".
Everyone was crying while walking out of the theatre- there were faces with regret written all over them- how will they face their kids and faces with resolve - that they will not do the same to their kids .
Yes - I cried. Being an eternal optimist - I promised to myself - that we will give a very different life to our baby - we will not breed a race horse.