What Mr Raghuram Rajan Cant Do

RBI Governor cant manage inflation. It is a myth we all are living with. Even present Governor's sustained efforts are not yielding the results. This also proves solution lies somewhere else. 

Role of Mr. Raghuram Rajan is to convey to the Govt that bottlenecks in the economy is the real problem for inflation , resultant erosion of rupee value , lower GDP and Current Account Deficit (CAD). 

Hoping that RBI and its governor can do wonders with mere monetary policy is nothing but day dreaming and in-actin at all other levels. 

In any company , CFO can create value upto an extent but even CFO can't do anything unless there is a efficient production system  , product innovation at regular intervals, flawless logistics , sufficient profit margin which enables future investments without much of the unsustainable debt. If these aspects are managed by the CEO and the management , CFO can add some value by capital structuring , lower debt cost (this again depends on performance of the company not entirely in the hands of CFO ) , raising money from various sources , budgeting & allocation etc.   However CFO cant act as a driver.

We are expecting RBI to drive our economy ,  manage inflation , manage rupee value and control CAD !!! All these are interlinked and only way to break the same is quick decisions , transparency and progressive policies at all level of the Govt. We need action on war footing but we are hardly taking any action, forget right action. 

Indecisiveness and lack of imagination in Govt cant be substituted by ably qualified and young RBI Governor. 

IN DEMAND - Script & Crisp Writers

5 days test match to 1 day match to 20:20 this is how game of cricket has evolved during last 30 years.  People cant wait for 5 days to know the result. Rules of the game have remained more or less same but wait for the outcome has reduced from 5 days to 3 hours. 

Attention deficit , impatient & speedy society needs new forms of everything.  

From magazine articles to blog to micro blog (twitter). Whatever is to be conveyed is to be conveyed in short & with speed.

Print to TV to Social Media , modes of communication has changed. People are changing their platforms to know what they want to know. 

From Commodity to goods to services to experiences.  Yes now customer needs and pays premium for experiences.  Needs and way of receiving the same has changed. Commodity providers are many , experience creators are in scanty.   

All communicators i.e. enterprises are the largest class of communicators to their customers and potential customers , must learn to know how the new society behaves , communicates and consume things.  

Movies are creating experiences and spend millions of dollars in communicating the same. 

Script writers ( writing business plans that delight and wow customers )  , directors of experience creation ( executing  wow !! script ) & Crisp communicators ( smart ,quick & innovative ) and are in demand in the new economy. 

Are you selling Burger or Vadapav ?

Burger Vs Vadapav. What is the difference? 

Burger will cost you US $ 1 (Rs.55/-) while Vada Pav will cost less than 5th of US$ 1 (Rs.10/-). 

Burger is a Brand an Vapa Pav a commodity. 

Burger become a brand as it was presented in air conditioned outlet with a happening ambiance , hygienic condition & quality , unlimited time outlet allows you to sit. Perhaps cost-wise Burger may be costing few rupees more , taste-wise Vadapav may scores over Burger.   

In short both offers more or less same quantum of food and taste but price difference is 5 times. This 4 times difference people are paying is for experience not for food.  

Same is applicable to Starbucks Coffee vs Coffee at South Indian Hotels. Price difference is perhaps 10 times. Cost of Coffee itself may be 2 to 3 times more. They are charging 7 times more money for experience. This is called branded experience. 

Many a times professionally person with technically sound knowledge can’t command salary which a person with all round personality can.  

This DIFFERENCE in PRICING use to superior experience which people would LOVE to pay is critical. Critical for every business.  

In B2B or B2C all kind of businesses experience creators can command premium in pricing. You may be manufacturing best of Vadapav but even though you can’t command Burger pricing. You have to convert your Vadapav into BRANDED experience which is more than just meeting the need but meeting the need with ease and delight added.

Even small effort in this journey of customer experience creation will start fetching you better pricing and customer loyalty which all businesses are dying to achieve.     

Time for reality check and finding opportunity to add EXPERIENCES in your business offerings. 

Are you making Balance Sheet for Self Use ?

Deep Pocket , Ignorance or Business Operations/ (realised) Profitability is keeping you happy in times of economic distress  ? 

Entrepreneurs with deep pocket is surviving thinking that this shall go and we will come out winners , many hand to mouth competitors will die. 

Ignorant Entrepreneurs have no cue what is happening and whether they are in financial trouble. As long as their cash flow is ticking they think they're are safe. 

& the last one is rare class of entrepreneurs thriving and flourishing on true business operation and profitability. They are able to produce, sale and recover their money. 

Economic conditions across business segment is stressed. Banks are finding it difficult to support but they are forced to do it. They are forced to do CDR.  Its time for every business to go for reality check. Its time to make real P & L A/C & Balance Sheet for SELF USE. (Usually its made for shareholders , lenders & tax authorities  and invariably its misleading). 

Making sense out of own financials is the most sensible thing for every entrepreneurs in today's time.

By Design or by Default, Everything is an EXPERIENCE

Everything that happens to customer when they are dealing with any of the touch points of your business its an experience. 

Challenge is to make these experiences memorable and delightful without losing sight of the CORE value proposition. 

Starbucks offer scintillating customer experience but not at the cost of taste of the coffee. However only coffee taste can not create delight and memorability of customer experience. 

Therefore it is the responsibility as well as need of every enterprise to add more delight to the touch points. Customer is going to experience every bit of experience , now if you make it designers its becomes WOW!!! and adds to your competitive advantage or else it will remain one of the many such experiences enterprises offer.  

- Soothing music in the dentist's room can help patient in forgetting her pain

- Serving beverages to visitor's guests in hospital can add huge richness in experience

- Child Specialist Pediatrician set up small kids zone in her dispensary will make         
  it memorable for child patient for life

- Gynecologist offers Parenting Seminar coupon to would be parents can do wonders in 
  customer experience

- One of the CAs was offering car washing services for the clients visiting him

Every small and large businesses and professional firms can think of better and superior ways to add  that EXTRA bit to make the interaction and experience truly memorable.  

By default or by design CUSTOMERs are experiencing. Left to chance it can be miserable and when designed purposefully it can become delightful. Choice is yours. 

Why even SMALL businesses MUST Embrace Customer Experience ?

When we audit customer experience we can fairly make out what will be the operative financial performance of the entity (non operative issues like high debt & mindless advertising  may still work adversely in spite of great customer experience recent example is Kingfisher Airlines) .  

Yes operative financial performance is directly linked to what your customers feel about your customer experience creation capability. 

Companies may go out of the way & spend more to offer superior customer experience but that will not impact operative performance adversely as it will result in word of mouth publicity , more referral business and customer loyalty. 

Manufacturing companies spent millions for efficiency and lean manufacturing but it wont give them competitive advantage unless they are offering superior customer experience. Lean & Six Sigma  projects surround their efforts around what customer wants. Speed delivery via lean approach or defect free products via six sigma approach all are adding to customer experience. Any projects not keeping customer at the center wont yield desired financial performance as things not touching customers wont make them loyal and it even wont give competitive advantage to businesses.  

Focus on customer experience when designing lean , six sigma  and even your next Ad campaign. Financial (operative) results are linked directly to customer experience creation capability of the organisation. 

Smaller businesses struggle for customer as well as profit. Focusing on bettering customer experience , small business entrepreneurs can gain both - profit and customers.  

Experienced can offer the Experience

One of the ways to create culture of superior customer experience is to let your employees experience superior customer experience themselves. You have to change the mindset and self experience is the best teacher. 

When you receive superior service you will be inclined to offer one in your role to your customers. No amount of training can teach and change the mindset what true real life experience can do to a person. 

When you receive respect you would like to give one. What you receive is what you can give. Therefore in order the change the employee mindset which is the biggest challenge, expose them to superior customer experiences.  

Unfortunately most companies neither offer superior employee experience to their employees nor expose them to superior customer experience elsewhere and yet expect employee to offer superior customer experience to their customers !!

Experience is the best teacher & that applies here to. Expose your employees to superior customer experience in some other industry /companies , make them delightful customer experienced to enable them to offer better experience to your customers.  

Incomplete Business Plans & Executions

Yes, How many business plans are discussing about the kind of experience they wish to create for their customers ?  

Business plans contain information on whole world of product differentiation and sales strategy ,  financial ratios and revenue models , market segmentation and team but I have not any seen business plan explaining in details about customer experience and kind of culture team wants to built. 

I read a comment in response to my earlier blog post , " don't spoil customers by offering finest experience. " But I would say some companies are spoiling their talent in order to retain them.  Once habituated to vibrant culture and decent pay , employees find themselves misfit and uncomfortable with other not so great culture. This is the way to retain them from moving away. 

Likewise spoil your customers to retain them. Give them unprecedented and unmatched experience and you get their lifetime loyalty. This requires thinking and creation of culture. This is a huge competitive advantage and MUST find its way into the business plans. 

Design and define customer experience in your business plan and that will set the ball rolling for the culture it will entail. 

KISS is really powerful !!

Simplicity & Ease will push your business. One of the important things in designing customer experience is EASE. Ease of doing business can do wonders. 

Flipkart has achieved that EASE, ATM machines offer EASE. The other day we were at Cream Center and guests waiting management was flawless. It was in order and quick communication was flowing from the people inside about tables available to the person managing waiting guests. 

In many of the on/offline businesses customers have no clue when and whether things will happen as expected. Communication and business processes are not explicit.  They are confusing. People managing are not adding any human angle and just follow what is told to them.  The entire experience becomes confusing , irritating and mechanical. 

Multiple option at coffee shops , insurance products , mobile plans are highly confusing and lack ease and simplicity.  Product design , buying process , usage, communication & marketing all level deserves simplicity. 

When you are out to create better customer experience keep EASE factor in mind  , as it will add to delight and memorability. Customers have many complexity to attend to in their life, therefore EASE & Simplicity is at premium. 

KISS - Keep it Simple Stupid , is really powerful. 

SIGH of an Entrepreneur

You started your enterprise to serve your customers with your skill and passion. However in the process you need to manage people, policies, processes , acquisition, various regulatory compliance and many other things apart from serving customers.  Managing the management of business is Herculean task. It is this task which is the major culprit in diluting and shifting focus from customer experience.

Yesterday I was with one senior doctor managing her own clinic. With deep sigh she uttered " I am tired. Managing patients is fine but its the other things about practice that is too tiring. " I think most entrepreneurs in their entrepreneurial journey must be going through this SIGH.

It is important for entrepreneur to remain deeply focused on customers and delegate all peripheral activities of " Management " to others. It is the customers and only serving customers is the objective of the business and who are going to pay for the business to survive  All other money are debt and at cost. Customers money is adding to the networth. 

Before you lose sight of customers while managing MANAGEMENT part, its time to wake up and get a grip of what you always wanted to do - SERVING the CUSTOMERS and in the process making them RAVING FANS of your business.