Management Actions and Long Term Actions

Few years back, I had a chance to interact with the management of three major telecom companies who have consistently delivered superior shareholder (stakeholder) return over the last two decade. I took time-out to look for an answer to question “How they kept creating value over the years?”
Here is the list of management actions / decisions (in random order) noticed by me as part of creating superior value to their stakeholders over the last two decade or so. I hope it is not too long…
- Build good domestic base (go for acquisitions if required).
- Leverage on sectoral development. Build on goodwill network as well as government connections (Go for advanced technologies being promoted by government and use them to capitalize on business opportunities)
- Incrementally build regional base and then international.
- Target high growth markets (Look for markets getting deregulated as a good opportunity for sales and business).
- Joint venture to get technology and enter / understand new markets.
- Scale (organic and acquisitions) post experience.
- Start with exports then focused pursuit of international opportunities (marketing effort tied to growth)
- Technological development - Bet on key new technologies. Invest in R&D (value add , no need if available cheaply from third party supplier)
- Enhanced customer recognition of the brand name (associate it what consumer desire)
- Try to gain leadership in the targeted market segment. Build on reputation.
- Regular business rationalization (divest if required, consolidate and eliminate excess capacity, streamline product line)
- Include new products with future significant growth in the business portfolio (management will always have an explanation)
- Clear segregation of business units. List spun off business to realize latent value
- Use flexibility in raising capital (holding company and operating company level). Bring down cost of capital as low as possible
- Prudent cost management
- Create a strong team work among top management. Keep alive the entrepreneurial spirit
- Top guy to hold and control the top 25 managers and let similar scheme go down the ladder incrementally
- Good MIS is necessary for operational and financial control. Put process in place as early as possible
- Corporate communications is critical for keeping the investor / public interest
- Buy / opt out the competition if threat. Play on core strength and differentiate.

Indian Summer, IPL and Elections

Mumbai is facing the sweltering heat (the mercury is running bit high this time) and successfully bore the euphoria of general elections. On top of that IPLs is keeping the people at home.

Excercised the voting right after ten years (was overseas on the last occasion - how about extending the easy options for NRIs holding Indian Passport) .

The name finding the voter list was quite a mess though after that the vote exercise subsequently was breeze. (the computerization is there then it has to be used and delivery handed to private company (who do the good job keeping the view the bills that are delivered to me always on time) .

Hats off to people who walk miles to vote and election officer who are on duty whole day even at the most remote locations (may be next time the elections shall be in late Jan or Feb.).

Voter turnout on my booth was good though saw (while driving through) less crowd at posh areas of the city (47% good but not good enough to catch up with approx. 57% in AP/Kanataka). On personal level Impressed by the work by youth (Jago re), local NGO (Rotary), celebrity, journalists and leaders (on TV) though the wave factor was missing to increase the voter turnout.

IPL is a good time filler but find it shameful (even if SA is doing a good job hosting and local junta supporting it) that India teams are fighting it out on foreign land. Better not make it another karry packer serious. Anyway, will soon pick up my favorite team among the two contenders and watch them till semi/finals. I wish the same exposure/importance is given to Olympics

Anyway, learning the energy saving tips to keep my electricity bill in control (while my AC runs full blast).