6 leadership lessons from the first men to reach the South Pole.

(Adapted from blog post originally posted on August 4, 2014)

I had the pleasure of visiting the beautiful city of Oslo and the Fram Museum, which houses arguably one of the world’s most important polar ships, the Fram.

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Roald Amundsen’s cabin in the Fram

The Fram ship was captained by Captain Roald Amundsen as he led the first men towards the South Pole during an era considered the Heroic Age of Antarctic Exploration. This was an era of intense rivalry and competition as men and nations were competing to be the first to achieve feats of exploration.

The rivalry between Roald Amundsen and Robert Falcon Scott are legendary as both men vied with one another to be the first to reach the South Pole.

Amundsen won and earned the distinction of being the first man to reach the South Pole. Scott who managed to reach the Pole later met with a tragic end and never made it back to his camp.

There are numerous accounts about their journeys and the historical reactions that followed both Amundsen and Scott’s achievements.

I want to highlight the six leadership lessons one can learn from Amundsen’s approach to his trip to the South Pole.

  1. Clarity of mission
  2. Clear and consistent leadership
  3. Attention to detail
  4. Constant preparation
  5. Avoid arm-chair expects (and get the right people into the team!)
  6. Luck – is what you make of it

 

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Flag used by Roald Amundsen

1. Clarity of mission

Amundsen was very clear that his primary objective was to be the first man to reach the South Pole. He expended his energy, his thoughts and his efforts to this one single endeavour.

On the other hand, Scott’s agenda was never very clear and he wanted to conduct scientific research, exploration and also reach the pole but nothing was clear defined. One example was when Scott and his team were returning from the Pole, defeated and already running low on supplies, he decided to stop at the top of the Beardmore glacier and deemed it fit to ‘geologise’ and subsequently add more than 15 kilograms of rock to their loads, which slowed them down further and precipitated the crew’s sad demise.

Amundsen was very clear about what his expedition’s objectives were and what his own ambition was and set out to dispassionately attain it.

A confused mission and vision will ultimately confuse your team and lead to misaligned goals and values which will scupper any business or programme.

 

2. Clear leadership

Scott was a product of his times and was extremely formal, conventional and hierarchical and this is what the English establishment demanded this of anyone who was leading an official British mission.

Amundsen on the other hand was an extremely competitive, relentless and focused individual who was also hugely innovative and was ruthlessly direct in his leadership.

As an example, most of Scott’s team (which was made up of sixty five men) was was picked by various external parties. Within that team included a Captain Oates with whom Scott clashed with on numerous ocassions. Oates was never silent about his conflict with Scott either which only served to undermine Scott further.

Amundsen on the other hand handpicked 19 men for his lean Fram expedition. In his team was a Hjalmar Johansen who was a noted explorer too. However, there was an incident where Amundsen made a mistake in setting off for a trek too early. This mistake almost cost the life of one of the men and Johansen publicly berated Amundsen in front of the other men. Amundsen dismissed Johansen from the expedition to preserve the unity and integrity of the team.

One may argue that Amundsen could have taken a different tact or approach. Ultimately, for an expedition into a great unknown, there has to be absolutely clarity and trust.

Constant undermining of leadership would have led to mistrust and confusion and in the end cost lives.

As the National Geographic  puts it very eloquently, “Amundsen was also a man of towering ambition, prey to the same dangerous dreams and impulses that drive all explorers to risk their lives in wild places. Amundsen’s greatness is not that he lacked such driving forces but that he mastered them.”

It is vital that whilst there is space for disagreements and diversity of thought within any team, once a decision has been taken, it has to be followed through by everyone and anyone seeking to undermine a decision after it has been taken has to be either counselled or removed from the business.

3. Attention to detail

The clarity of the big picture is important. For any project or mission to succeed, the attention to detail, regardless of how minute, is also crucial.

In the case of Amundsen, he had a laser-like focus on every aspect of the Fram expedition – from the food chosen to the mode of travel to the choice of clothing.

Amundsen knew that in order to travel the distances they were targeting, they had to be able to get around quicker than if they were to do so purely on foot. To this end, Amundsen spent considerable time perfecting their ski equipment and footwear. This was something Scott’s team did not do sufficiently and towards the later stages of Scott’s expedition, this proved to be fatal.

Amundsen also spent considerable time with the Inuits and adopted fur suits along with their windproof outfits. The Inuits also wore their clothing loosely to reduce sweating (which helps retain body heat and also prevent freezing of clothes).

Even the way the fuel cans were sealed played a big role in the Antarctic expeditions. Scott had used incorrect washers for the fuel cans which led to evaporation of the fuel – which is a critical component in turning ice to water for drinking. Amundsen had worked this out earlier and had ensured that the cans were sealed properly to prevent any loss of fuel.

Food was an important component in the expedition which Amundsen paid a great deal of attention to. Amundsen, following his time with the Innuits, understood that an exclusively meat diet consisting of penguin and fresh seal meat was vital to remaining healthy. Although this wasn’t understood scientifically then, fresh seal and penguin meat provided enough Vitamin C to prevent scurvy (an ailment that afflicted sailors in those days and which was fatal in the long run if not treated).

On the other hand, a number of historians have indicated that the lack of good nutrition was one of the many reasons for Scott’s failure. They also tended to overcook the penguin and seal meat  (to remove the ‘fishy’ taste) which destroyed the Vitamin C present in them. Amundsen’s indifference to palate meant that his expedition ensured that they ate very unappetising biscuits (made from oatmeal, yeast – with enough Vitamin B, beef fat and pounded dried beef!) and which provided them with essential roughage. Again, this is something the British expedition team chose to ignore.

As Geir Klover, director of the Fram Museum in Oslo, explains, “”Amundsen had a tremendous reputation. He was a meticulous planner, easily the best organised explorer of his generation.”

The attention to detail, especially for major campaigns, is absolutely critical in not only determining the success or failure of the campaign, but between life and death.

 

4. Constant preparation

During the winter months, Amundsen and his team spent the days optimising their equipment, their clothing, their logistics and working to improve their efficiency. It was an extremely focused team with a clear view of what needed to be done to achieve the task at hand.

Scott’s team spent the time engaged in a series of meetings, lectures, reviews, and reading. This led to missed opportunities for the team to review their practical and operational needs and performance.

A clear vision, decisive leadership and attention to detail are matters which determine how well a team is prepared for a mission.

The need for constant preparation is vital and whilst it is easy to slip into a routine of meetings, conferences and discussions, without preparing for the tasks at hand, it will be near impossible to do a great job.

 

5. Avoid arm-chair experts (and get the right people into the team!)

Amundsen had one of Norway’s skiing champions in his team (despite the fact he wasn’t an explore or mountaineer). He also ensured that he had canine experts and dog handlers to choose the best dogs for his journey.

Scott chose not to use dogs – which he thought was more noble. This was also counter to the prevailing view in Britain in those days that dogs were of dubious value as a means of Antarctic transport (which was subsequently proven to be false).

To further compound matters, Scott had also instructed a member of his team who knew nothing about horses to choose the ponies for the expedition. The ponies chosen were of poor quality, age and condition and which only served to hinder Scott’s expedition.

Amundsen also made it a point to engage with the right people and subject matter experts (such as Fridtjof Nansen – another famous Nordic explorer) as he formulated his journey towards the South Pole.

6. Luck – is what you make of it

Amundsen summed it up best when he said:

“I may say that this is the greatest factor—the way in which the expedition is equipped—the way in which every difficulty is foreseen, and precautions taken for meeting or avoiding it.

Victory awaits him who has everything in order — luck, people call it. Defeat is certain for him who has neglected to take the necessary precautions in time; this is called bad luck.”

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Where technology lost to tradition

Over the last few decades we have seen numerous examples where technology has usurped tradition, leading to plenty of hands wringing, worrying and eventually acceptance of technology’s dominance over the things that we previously thought were ‘the way things are done’ or tradition.

From going to a travel agency, or flagging for a taxi, or buying takeouts , we have now ditched habits and activities that were previously taken to be the de-facto way.

In the light of these changes (and some undoubtedly have had a huge benefit in people’s lives), it was interesting (and perhaps heartening) to read an example of how tradition managed to stand strong in the face of overwhelming technological progress and indeed even strike a blow and reign supreme!

This is the curious tale of the dabbawalas.  A recent Bloomberg Business article, Startups Haven’t Replaced India’s 19th Century Food Delivery Service (February 3, 2016), highlighted how over 400 technology/app driven businesses backed by over US$120 million of funding  have failed to dislodge a 120-year old, traditional food delivery enterprise. The aspiring new-age disruptors failed to make a dent whilst single-handedly decimating traditional black cab/taxi or travel industries.

Only a handful of 400 food-delivery-tech start-ups are still in business after having lost much of the VC funding and thousands of staff, despite spending millions on technology, promotion and advertising.

I thought it would be useful to take a closer look at the conditions that have led to the enduring success of these dabbawalas (from ‘dabba’ which means lunch box or tiffin carriers – the ubiquitous multi-layered carrier tins; and ‘wala’ which loosely means man or deliverer leading to ‘dabbawala’ – lunch box delivery man).

First some context and history to the humble dabbawala:mumbai-dabbawala

  • Starting from 1890, no rain nor flood nor natural disaster nor riot not terrorist strike nor weather has stopped the dabbawalas in fulfilling their duties.
  • The business model has remained exactly the same since the very first delivery: food prepared at home or community kitchens are delivered to students and workers in schools, offices, factories and depots in a lunch/tiffin carriers, and the empty containers are returned!
  • 5,000 dabbawalas now deliver about 175,000 to 200,000 meals a day (or over 50 million meals a year)
  • They have only ever gone on strike once in over a 120 years – and even then timed it on a public holiday – and in support of an anti-corruption campaign!
  • Each dabba or lunch box changes hands at least six times in transit before it reaches the final consumer – or 2.4 million transactions per day (200,000 deliveries X minimum 6 transits X 2 – to return the lunch/tiffin box back)
  • There are some claims that the dabbawalas lose only one tiffin box per 1.6 million deliveries (comfortably allowing them to be within the six-sigma standard of 3.4 defects per million transactions) – despite the absolute lack of technology or apps to support them. All that is used is a system of alphanumeric codes to identify the source and destination of each dabba.

Next, let’s consider the business and employment model used by the dabbawalas:

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  • The monthly service charge for the delivery of the lunch boxes is between 400 to 1,200 rupees (or between US$6 to US$18 monthly).
  • The prices are not based on distance but on the customers’ ability to pay – deliveries from richer neighbourhoods means higher rates.
  • There are about 200 ‘managers’ who act as supervisors to teams of up to 25 dabbawalas – managing the total 5,000 dabbawalas
  • The dabbawalas age ranges from between 18 to 65 and are often poorly educated (often rarely receiving formal education beyond the age of 14 or 8th standard in Indian education terms)
  • The dabbawalas continue to be paid low wages – approximately 8000 rupees (or about US$120 monthly) but have achieved a very low attrition rate or labour turnover.
  • Each dabbawala receives the same income, irrespective of experience, age or number of customers serves.
  • Each dabbawala is not an employee, but is an entrepreneur and equal shareholder in the Dabbawallah Trust.
  • The dabbawalas employ a risk-mitigation system of a KYC (know your customer) principle to prevent the threats of contraband or bombs being delivered and implement a minimum monthly-subscription rule.

 

So how have these poorly educated, lowly paid individuals without any access to any computer or app to support their delivery system become an award-wining group of process champions?

  • The dabbawalas have been the paragons of social entrepreneurship – leading to social mobility through enterprise. They have provided employment opportunities for those who have needed it the most. The late Paul Goodman, Professor of Organisational Psychology at the Carnegie Mellon University, described it as thus: “They provide a different picture — a complicated system of working built around human ingenuity and supportive social arrangements that has long been absent from U.S. industry,” in his documentary on dabbawalas.

 

  • Uncompromising attitude to cutting out waste or preventing excesses – this has led to the dabbawalas rejecting a number of potentially lucrative marketing or sales opportunities because it was deemed that they will take up time and impact their core business of delivering on time every time.

 

  • Culture – there is an unwavering commitment to their cause.

The dabbawalas are of a view that their duty is akin to service to God. They are committed to the last man towards a single principle of delivering food on time to the right person.

As Manish Tripathi, a director of the Mumbai Dabbawalas states, “Our work revolves around a few beliefs – the most important ones of which are sticking to time and believing that work is worship. Annadan is mahadan (giving food is the greatest charity). We dabbawalas have a strong belief in god. But you don’t see god, do you? So, whom do you worship? People – after all, they are creations of god. You worship god by ensuring that people get to eat their food on time.”

Professor Stefan Thomke of Harvard Business School notes in his paper, “Culture, for example, often gets short shrift. Too few mangers seem to recognise that they should nurture their organisations as communities – not just because they care about employees but because doing so will maximise productive and creativity, and reduce risk.

 

  • Superior focus on organisational objectives and customer service

There is an absolute focus on unerring time management logistics and commitment to superior customer service through accuracy.

An interesting anecdote is when the dabbawalas were informed that Prince Charles wanted to meet with them, they allowed for the request on the condition that Prince Charles should be at Mumbai’s Churchgate station between 11.20 am and 11.40 am. The mere 20 minutes were given because “they could not take time off work” and only because that was the short period of the day when the dabbawalas had a rare moment of a break time!

Prince Charles Dabbawalas

(As an aside, it is also worth noting that of the three indians invited to Charles’ wedding – two were dabbawallahs (who presented gifts for Camilla (sari) and Charles (turban) – paid for by the dabbawallas pooling)

 

  • Effective leadership

The managers (each managing up to 25 dabbawalas) do not see themselves as leaders or supervisors. They are individuals who help to continuously improve the work-place practices and systems and empower their teams to make decisions within a clearly defined set of parameters. The individual dabbawalas make rapid decisions (modern managers may label this ‘agile’).

There are regular meetings once a month where decisions are made and issues identified and discussed. In the rare event of an error, an investigation is launched to ensure it doesn’t occur again and customers are refunded.

 

  • Adopting new practices to serve customer better

Whilst the delivery model has remained the same, the dabbawalas have introduced innovations such as delivery booking through SMS, online booking (through www.mydabbawala.com) and also introduced online customer services feedback. The customer-centric approach that has been instrumental to the success of the dabbawalas continues.

 

The secret to the dabbawalas is best described by Professor Thomke who says, “The dabbawalas have an overall system whose basic pillars – organisation, management, process and culture – are perfectly aligned and mutually reinforcing. In the corporate world, it’s uncommon for managers to strive for that kind of synergy.”

In this day and age, where the human touch is going out of fashion, the dabbawalas remain a source of inspiration and there is much to be learnt from them.

Branson dabbawalas

As Richard Branson (who spent a full day with the dabbawalas) said, “I will tell my employees: walk like a dabbawala.

Indeed!

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Going beyond networks and building communities

As someone who works for a leading global professional body dedicated to delivering public value to society on behalf of its members, I’ve been thinking about the notion of networks, what it means and whether the emphasis should be around going beyond the notion of mere networks and building communities with a strong sense of ownership by its constituent members supported by active engagement and dialogue.

Numerous businesses have built themselves formidable networks with their customer base but could be missing out on significant advantages in evolving those networks into communities.

Wenger, Trayer and De Laat, (2011) have provided clear definitions illustrating the differences between a network and a community:

“The network aspect refers to the set of relationships, personal interactions, and connections among participants who have personal reasons to connect. It is viewed as a set of nodes and links with affordances for learning, such as information flows, helpful linkages, joint problem solving, and knowledge creation.


“The community aspect refers to the development of a shared identity around a topic or set of challenges. It represents a collective intention – however tacit and distributed – to steward a domain of knowledge and to sustain learning about it.”

 

Distinguishing a network and a community

A network is inherently a passive set of relationships and connections (normally anonymous) between individuals, which is geared towards only information flows, and transactions across the connections. Networks tend to be primarily transactional in nature (mainly through the consumption of services and goods) with little by way of value creation.

Communities on the other hand lend themselves well to action and intervention by individuals who are connected around a shared identity, philosophy or collective intention. Communities tend to inspire a sense of camaraderie and collective action by the participants who belong to it.

 

What this means for businesses

Companies that successfully are able to develop and build on their networks and transform them into communities will be able to not only enjoy the scale afforded by networks but also improve the level of dialogue, engagement and sales which in turn improves the margins, leading to better business value.

Essentially:

Networks = High volume X Low margins (due to mainly transactional nature of mostly one way transactions)

Communities = High volume X Higher margins (due to improved dialogue, satisfaction which in turn leads to higher sales and possibly margins)

If we consider the largest companies in the world such as Amazon, they don’t merely seek to develop a large customer base who go to them to buy the products they seek. Instead they have invested significantly towards developing communities within their sales platforms, leading to improved two-way dialogue, and encouraging greater sales of a larger range of products.

Facebook has gone beyond simply creating networks and their initiatives such as “On this day” and “Friends’ Day” are all geared towards engaging their networks towards a more meaningful community, to imbue a sense of camaraderie and fellowship amongst their users. This is what will support the longevity of a social network like Facebook and ensure they avoid the mistakes made by the likes of MySpace and FriendsUnited, which did not seek to go beyond the creation of networks.

Superior organisations take the networks they have, understand the key propositions their networks seek, develop their messages further, engage them better, enhance the levels of dialogue across the participants of the network, and in the process form the basis of a community that will sustain the business towards long term value.

 

 

Make hay while the sun shines: Lessons for businesses in emerging markets from the world of farmers.

“The great cities rest upon our broad and fertile prairies. Burn down your cities and leave our farms, and your cities will spring up again as if by magic; but destroy our farms, and grass will grow in the streets of every city in the country.”

                                                                – William Jenning Bryan, Nebraska Congressman, 1896

 

Introduction

Very often, business leaders responsible for the growth and development of emerging markets units turn to the words and deeds of management gurus, industry leaders, governments, business titans and sometimes even politicians (!) to seek a way to best capitalise on the potential and to frame their actions in order to achieve success in their markets.

However, there is a segment of society that offers businesses an enormous amount of wisdom, knowledge and insight that leaders can benefit from – farmers. Now farmers are, for the most part, an unseen and unheard segment of society. We don’t hear much about them, we don’t see much of them and we don’t know much of how they go about conducting their business. The implications and impacts though which farmers have on society are profound. The food we eat, the clothes we wear and the security we seek for our sustenance come from farmers. Without them, society, as we know it, would not function.

Agriculture is a sector that contributes to roughly 3.8 percent of the world’s total GDP which equates to an industry that is worth over US$2.9 trillion at current prices. If farmers of the world united, they would represent the fifth largest country in the world in terms of total GDP!

Business leaders have an opportunity to use farming as the basis and blueprint for success. Over the last half decade of austerity and uncertainty, the one certain thing for most major organisations is that emerging markets represent more than just a passing phenomenon or a rising force – they are the main elements and pillars of sustained economic growth.

However it is important to note that these emerging markets (even amongst themselves) differ fundamentally from more mature markets. This means that the skill sets and capabilities that help emerging markets business leaders in not only establishing operations but to also flourish are unique. We may need to consider the lessons and experiences from farmers, given that the challenges and opportunities are similar. This is the context upon which the rest of this article is based on.

 

The wisdom of farmers

A book published in 1726 titled, ‘The Country Gentleman’s and Farmer’s Monthly Director,’ by Professor Bradley of Cambridge introduces the role of a farmer as follows: “I consider a Farmer as a Person whose Business depends more upon the Labour of the Brain than of the Hands.”

Almost a century later, Sir John Sinclair, founder of the Board of Agriculture highlighted that, “Agriculture, though in general capable of being reduce to simple principles, yet requires on the whole a greater variety of knowledge than any other art.”

The sentiments above remain true two centuries later. Farming and agriculture has been an outstanding, if not neglected, successful endeavour of human society. In the last century, it has succeeded in feeding an ever-increasing global population, a diverse range of produce and goods more efficiently and at lower prices. It can be argued that farmers have been an integral pillar supporting modern economic growth.

Agriculture is not an industry on the periphery of modern civilisation and the world of business. It is a fundamental element of human society from which businesses can gain significant insight and, if applied appropriately, will lead to success in emerging markets and beyond.

 

A common approach to investment

Established businesses looking to develop and sell their product and service offerings must fundamentally treat the way they consider investment in an emerging market or sector differently to their business as usual sectors. A number of organisations make the error of setting performance objectives and deliverables for an emerging market in the same way they would for an established business resulting in unwanted consequences of de-motivated managers on their emerging front lines.

My argument is that businesses looking to establish an emerging markets operation should consider their investment the same way a farmer approaches his investment in his agricultural practice.

To illustrate this further, let us consider an example of a multinational organisation that supplies professional consultancy services across a range of markets. In an instance such as this, we can expect the organisation to have very clear monthly or even weekly targets for their sales performance as they have an established business model, a recognised brand name and the people on the ground who have the experience and the networks to deliver performance to targets. They key factors of production are within control and output therefore is also more easily controlled. Therefore, makes sense to have monthly (or even weekly) targets, forecasts and delivery and indeed performance should be measured with the same frequency.

If the organisation decides to subsequently enter an emerging market where it has no established presence, a brand name that is not recognised and a team that is relatively new, they will need to alter the way they view performance and the way targets are set. Adopting a monthly or weekly target approach will prove to be unfeasible particularly as conditions in emerging markets are not always entirely stable. This is where businesses in emerging markets can consider the way of the farmers.

Farmers have a different system for targets and performance. Farmers do have seasonal targets and objectives but given that the nature of farming is such that it is impossible to predict all the various factors of production. Factors such as the weather and climate, the nature of seeds used, the crop yield, the animal production, amongst other things, can only be managed and not controlled.

A farmer has to deal with many uncertainties, for instance a cold weather snap will destroy ground crops, affect lambing, cause ewes to abort, which all affect the yield for the farmer.

A farmer also needs to deal with farming regulations, subsidies, and changes in government practices or policies (e.g. the structural changes that happened in the farming community upon the adoption of the Common Agricultural by the EU Commission). As Gary Libecap, Professor at the University of California explains, “Agriculture is the most regulated sectors of the American economy. The production and sale of almost all of its commodities are affected by some government policy through a complex mix of programmes.”

It is this enormous ability of farmers to navigate through uncertainties and their overall resilience to rapidly changing underlying conditions and factors that prove most instructive to leaders of emerging markets businesses.

An emerging markets business leader has to remain nimble and agile to the dynamic and sometimes unstable political and regulatory conditions in emerging markets. Even seemingly straight-forward tasks of setting up a legal entity in an emerging market may become a highly tenuous affair and an emerging market business leader has to retain the patience and the will to deliver through the bureaucratic obstacles. It is this patience and perseverance which successful farmers have  in abundance which allows for their ongoing success and growth.

A successful farmer and a successful leader of a business in emerging markets have more in common than we have assumed before.

 

Of growth and harvesting – the shared goals of farming and emerging markets

The objectives of both the farmer and an emerging market business leader are congruent in many respects. The average farmer is a skilled diplomat, a human resource leader, an effective delegator, a scientist, a chemist, a negotiator, a commercial leader, an innovative marketeer and sometimes even auctioneer. He has to possess exceptional skill and energy to carry out the above roles and tasks and ensure that his agricultural endeavour is a successful one.

An emerging market business leader is similar and has to be able to navigate through sometimes sensitive commercial negotiations in the face of vastly evolving regulatory changes and has to be able to engage both his teams as well as key stakeholders such as regulators, government leaders and suppliers in a diplomatic manner that allows him to achieve his business objectives.

Farmers have always been very adept in ensuring that they adopt relevant approaches to farming based on their location and underlying conditions. This is not a modern phenomenon but one that is as old as agriculture itself. For example, the indigenous Ifgugaos in the Philippines realised two thousand years ago that their mountainous and hilly terrain meant that crop cultivation was going to be challenging and sought to change the underlying condition and created what is now known as the Banaue Rice Terraces. These terraces were built with little tools and water was sourced from the forests which were above the terraces through a unique and ancient irrigation system.

To further illustrate this point, in the northern hemisphere, wheat must ripen in late spring or early summer to get as much sunshine as possible. To grow it, one has first to plough the ground, then sow, harrow (to get rid of the weeds), and eventually harvest. Any anticipation or delay of any of these operations entails losses, which can become serious. For example, ripe wheat, if not cut, would fall on the ground and soon become worthless. In Burkino Faso, land has to be ploughed within days of rain or the land becomes too hard to plough.

Similarly, an emerging markets business leader will need to be swift and decisive in their strategic and market implementation. There needs to be ample planning and analysis in advance of delivery and once a common approach has been agreed, timing becomes critical and execution must take place within defined times to attain the defined aims and ambitions. Delaying or vacillating over decisions will lead to missed opportunities and potentially allow for rivals to take the lead in a potentially lucrative segment.

Farmers also need to be able to think strategically for the future in anticipation of global and local circumstances. Strategic management and optimal operational delivery is a way of life for modern farmers. They have to be able to factor all information, both historic and projected, which allows them to make appropriate and relevant decisions that allow them a sustainable farming business. The farming sector, supported by high commodity prices, has demonstrated enduring resilience during the last economic crisis in 2008. World Bank data shows that in 2009, agricultural value added at world level rose by 4 percent which can be contrasted to a 5 percent fall in global sector-wide GDP. This resilience was more pronounced in emerging economies, where agricultural GDP rose by 8 percent.

Likewise, an emerging markets business leader needs to be able to clearly define and articulate their propositions to their markets and customer segments. They will need to prepare adequately for their specific targets and estimate accurately the required resourced needed to achieve their outputs. In this regard, they can learn from farmers whose entire seasonal output and sometimes even survival depends on their ability to estimate accurately the required resources to achieve a given output.

Emerging markets leaders also need to be assess and understand their market terrain and environment. They need to ‘work the ground’ and understand the local feedback, context and factors that will have significant impacts on their output. The most successful farmers continuously identify their strengths and weaknesses relative to their local as well as international competitors who may be able to offer the same output at a lower cost. An example of how this has been done includes potato farmers in Tasmania who undertook extensive research to understand how lower-cost potato imports from the Netherlands and Belgium are undercutting their business and took steps to address these challenges. Similarly, emerging markets business leaders will need to conduct sufficient levels of quantitative and qualitative market research to ensure that their businesses remain resilient against competition, both local and international, and also achieve their growth targets.

 

Resilience and leadership

Farmers face a range of challenges and issues. The challenges range from external environmental factors outside their control such as climate change. Global economic pressures, livestock disease and climatic changes are the types of issues which farmers have to navigate through.  For instance, there is a loss of arable land due to climate change amounting to as much as a fifth of all agricultural land in South America and Africa.

Events and challenges such as this affects crop yield which in turn affects farmers’ incomes and cause them to become highly volatile. These mean that farmers need to be careful in how they manage their finances and funds in order to ensure that they are able to meet expenses and also correctly anticipate demand. Farmers fundamentally need to navigate through uncertainty and steer their operations and farms through competing pressures and noise to keep producing in a way that meets challenges.

Risk management is a central pillar in terms of how farmers manage their business. They are now being required to produce more food and other agricultural products on less land, with less pesticide and fertilisers, with less water and also manage a lower carbon footprint. Part of the risk management process of farmers has been to understand what their underlying risks and challenges are and to subsequently develop and implement the technologies and practices that counter environmental and land degradation and climate change to maintain sustainable and viable farms.

Examples of this include mixed cropping that have led to better usage of nutrients in soils and more effective pest management systems. In Zambia, for instance, crop rotations have reduced water requirements by up to 30 percent. They also use a new strain of maize which produces a yield which is 500 percent higher than the average yield for the rest of Africa.

The underlying risks have also been managed through a series of other initiatives such as skills development training across a wide range of relevant topics and generation of non-farm income (such as agri-tourism). They also deal with it through diversification into renewable energy technologies and by developing markets for novel and alternative cropping.

Businesses investing in emerging markets also need to ensure there is a sufficient level of risk management and due diligence conducted prior to entry into new markets. They will need to ensure that they have diversified their risks through investment across a wide portfolio of markets. They also need to be able to react appropriately to emerging regulation and underlying economic conditions by reviewing their business operations and investment accordingly.

Farmers globally seek to create viable and resource-efficient farms and agribusinesses that are able to meet demand and yet remain resilient to fluctuations in the business cycle or other natural causes without recourse to significant public intervention.

Initiatives such as the establishment of grain stores in Africa and the creation of dairy hubs in India, Bangladesh and Pakistan are helping farmers to cut costs, create greater income and reduce price volatility.

A successful farmer is a leader who does not micro-manage staff or instruct them to do something they cannot or will not do. The most effective farmers are inspiring (particularly when they are undergoing moments of extreme uncertainty); strategic (by having a good view of the changing conditions and consumer patterns which impact their sales); energetic (to rouse their teams into action towards peak performance); and possess a clarity of vision which can effect great change.

Likewise, a successful emerging markets business leader should have the ability to delegate effectively and provide enough support to their people and inspire confidence. They should also cultivate and nurture their teams towards peak performance and give them a sense of ownership and achievement. It is also vital that emerging markets business leaders ensure their teams have sufficient levels of training and development so that they are constantly building on their capabilities and can support business and corporate objectives even better.

Farmers also remain a source of emotional vitality in their communities and countries. Their critical importance to the well-being of their nations and their role in a profoundly rebalanced world mean that they provide the vigorous inspiration required for growth and development. Their leadership and resilience has led to the innovation, creativity and has the potential to inspire the social cohesion required in a world marked increasingly by differences.

 

Innovation as a key essence to success

Thomas Malthus predicted in the 18th century that there would come a time in the late 20th century where the world population would exceed food supply leading to widespread impoverishment and famine. This has not come to pass and indeed over the last fifty years, agricultural production has tripled and farmers have ensured that the world, for the most part, remains fed and clothed. This has happened due to the constant innovation in farming. Smallholder farmers (who account for almost half of the emerging world’s labour force) have overseen a rise in agricultural productivity.

Farming innovation can be broadly grouped into four categories: biological innovations (new strains of plants and animals); practices of cultivation; technical and technological innovation (including machinery, fertilisers and the increasing use of technology).

The ‘Green Revolution’ which saw India experiment with new varieties of rice and wheat in the 1960s helped to ensure that India averted the pains of starvation. Increasingly, new strains of rice and wheat that can withstand flooding and salinity are being developed that will ensure that the poor agricultural lands are converted to fertile plains.

Increasingly, innovative agricultural practices are also improving farmers’ yields and performance.  An example of this is the way fertilisers are spread to crops. Traditionally, rural farmers applied fertilisers by spreading them by hand.

However more rural farmers are now applying a practice widely known as ‘Fertiliser Deep Placement’ (FDP) which works by using a specialised fertiliser called a briquette about four inches underground which releases nitrogen gradually.

This prevents less nitrogen to be lost through run off. FDP is now being used widely by farmers across Burkino Faso and Nigeria and has helped increase their yields by almost a fifth of total production.

Modern technological innovation is also being adopted by farmers and extended globally. VetAfrica is a mobile app which now allows for farmers to diagnose livestock illness and to apply appropriate remedies and drugs to treat diseases. In India, farmers now have access to various instructional support by the government’s agricultural agencies that provide both online and offline information to rural farmers and their communities.

This spirit of innovation will also place emerging markets leaders in good stead. Businesses that invest significantly in research and development and ensure their people are empowered to experiment and deliver innovative solutions will be better placed to create scalable and transferrable innovations that can support the wider business.

Farmers have remained at the forefront of innovation and have also been very enthusiastic adopters of new technology and solutions. This is despite the fact that agricultural innovation generally entails a high level of risk and many of them yield little or no financial reward to the inventor.

In an era of rising energy costs and greenhouse gas emissions, some researchers are questioning whether conventional agriculture’s reliance on chemical fertilisers is sustainable, and point to its negative effects: pesticide residues, soil erosion and reduced biodiversity. Switching to organic and resource-conserving methods of farming can improve smallholder crop yields, food security and income, a review study by the International Journal of Agricultural Sustainability has found.

Likewise businesses that enter emerging markets should also consider their overall business practices and consider how the implementation of socially responsible practices can help reduce their overall costs and improve their bottom line in the markets they are operating in.

Farmers have also identified increasing demand from a more affluent customer base and have responded to it by shifting towards organic production and cultivation. The amount of land in organic production across Europe has grown by about five million hectares over the past decade, according to the European Union, and has grown by 13 percent annually over the last decade. A similar phenomenon is also observed in the United States of America according to a survey conducted by the US Department of Agriculture (USDA). The number of USDA certified organic farms has quadrupled since 1990 and the area dedicated to organic farming has increased from 1 million acres of land in 1990 to over 4.1 million acres currently. Organic farming is also becoming increasingly popular across South Asia (particularly India) as farmers tap into the increased demand and are evolving their farming practices accordingly.

Similarly, there is significant scope for emerging markets business leaders to learn from the habits of the farmers. The approach to farmers in testing and innovating to arrive at the optimal farming solution (the way they test to see which crop rotations work best given the soil and land conditions for instance) will also help business leaders in emerging markets to test out product launches and to test it in a given market prior to a full-scale rollout. This allows them to obtain a clearer insight into consumer behaviours and the general market sentiment for their product which will allow them to make the necessary improvements or changes required before they invest in a full rollout. This experimentative approach to new markets will become increasingly important particularly as organisations become more risk averse and seek a higher level of returns on investment but within a defined risk framework.

 

Building a force for good and planting the seeds of hope

Farmers and agriculture are vital to the overall betterment of society as well. The Consultative Group on International Agricultural (CGIAR) certainly believe so and feel that agriculture will help nations meet the emerging UN Sustainable Development Goals (SDGs) – the successor to the UN Millennium Development Goals.

Despite the well publicised challenges and adversity faced by farmers and the struggle they undergo on a daily basis, their resilience and their hopeful outlook provides food for further though and reflection for emerging markets business leaders. This is a spiritual dimension that must be noted.

Likewise, an emerging market business leader has to remain cognisant of their responsibilities within the societies they operate. If they are representatives of larger multinational organisations, the general public will expect them to implement world class practices and behaviour. They will also be required to adapt to the culture-specific scenarios presented to them and act in an appropriate manner.

It is vital that emerging markets business leaders look beyond profitability and financial remuneration. They need to ensure that their organisations are acting in the public interest and whilst creating value for their businesses are also creating positive externalities and value for the communities in which they operate in. It is this that sets the framework for a fruitful and sustainable growth and development of both businesses and societies. This addresses both the social and economic dimensions of sustainability.

The final dimension of sustainability is that of environmental sustainability. It is well known that the natural world that agriculture relies on is exhaustible and the relationship with nature and the environment has been a distinctive and intractable feature of farmers.  This is true from the fertile padi fields of Java to the ranging prairies of the Midwest.

Emerging markets business leaders need to give sufficient consideration to environmental sustainability. This not only ensures that they are contributing in a positive manner to the society but also acts as an important license to operate across a number of countries.

In conclusion, farmers can be a powerful source of inspiration and guidance to business leaders in any market. A farmer needs to tend to his flock with loving care and the successful farmer is one who takes an active interest in the welfare of his farmhands, who cultivates and nurtures his crop and animals with passion and tenderness. A successful farmer also flows with the changes to the external environment and navigates them successfully. A farmer also continues new ideas (be it the type of seeds used, the type of farming, consider the impacts of automation and technology on his farms, the use of data to understand the changing crop yields, risk mitigation, etc) and constantly innovates. A successful farmer also has to negotiate effectively with other farmers, with government, with regulators. He has to manage finances effectively and think of new financing to make it through the lean times. All of these skills and qualities are also what contribute to effective and successful business leadership.

 

 

“The prosperity of other industries is not the basis of prosperity in agriculture, but the prosperity of agriculture is the basis of prosperity in other industries…Immense manufacturing plants and great transportation companies are dependent on agriculture for business and prosperity. Great standing armies and formidable navies may protect the farmer in common with other people of a nation but their support comes from the tillers of the soil.”

                                                    

                                                                     – Nahum J Bacheldar, 1908 (Leader of National Grange)

 

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Leadership and management lessons from the first men to reach the South Pole

As I was watching Eight Below on HBO this afternoon (great film by the way), I started reading up on the first men who went to the ends of the world and was thoroughly impressed with the feats of the men who sacrificed life, limb, wealth, friendships, family and sanity in an era that was also considered the Heroic Age of Antarctic Exploration.

As I started reading more about the various principal characters involved, I became particularly intrigued by two individuals, Roald Amundsen and Robert Falcon Scott. Both these men vied with each other for the title of being the first person to reach the South Pole. Amundsen ended up with the honour of being the first to get to the South Pole. Scott got there later but met with a tragic end and never returned back to his camp after reaching the Pole.

There are numerous accounts about their journeys and the historical reactions and developments about both Amundsen’s and Scott’s achievements. However, I want to touch on some of my own observations on what businesses and leaders can learn from Amundsen’s trip to the South Pole:

1. Clarity of mission
2. Clear leadership
3. Attention to detail
4. Constant preparation
5. Always find subject matter experts (and avoid arm-chair experts!)
6. Luck – is what you make of it

 

Amundsen-Early-Exploration

1. Clarity of mission

Amundsen was very clear that his primary objective was to be the first man to reach the South Pole. He expended his energy, his thoughts and his efforts to this one single endeavour.

On the other hand, Scott’s agenda was never very clear and he wanted to conduct scientific research, exploration and also reach the pole but nothing was clear defined. One example was when Scott and his team were returning from the Pole, defeated and already running low on supplies, he decided to stop at the top of the Beardmore glacier and deemed it fit to ‘geologise’ and subsequently add more than 15 kilograms of rock to their loads, which slowed them down further and precipitated the crew’s sad demise.

Amundsen was very clear about what his expedition’s objectives were and what his own ambition was and set out to dispassionately attain it.

 

2. Clear leadership

Scott was a product of his times and was extremely formal, conventional and hierarchical and this is what the English establishment demanded this of anyone who was leading an official British mission.

Amundsen on the other hand was an extremely competitive, relentless and focused individual who was also hugely innovative and was ruthlessly direct in his leadership.

As an example, most of Scott’s team (which was made up of sixty five men) was was picked by various external parties. Within that team included a Captain Oates with whom Scott clashed with on numerous ocassions. Oates was never silent about his conflict with Scott either which only served to undermine Scott further.

Amundsen on the other hand handpicked 19 men for his lean Fram expedition. In his team was a Hjalmar Johansen who was a noted explorer too. However, there was an incident where Amundsen made a mistake in setting off for a trek too early. This mistake almost cost the life of one of the men and Johansen publicly berated Amundsen in front of the other men. Amundsen dismissed Johansen from the expedition to preserve the unity and integrity of the team.

One may argue that Amundsen could have taken a different tact or approach. Ultimately, for an expedition into a great unknown, there has to be absolutely clarity and trust. Constant undermining of leadership would have led to mistrust and confusion and in the end cost lives.

As the National Geographic  puts it very eloquently, “Amundsen was also a man of towering ambition, prey to the same dangerous dreams and impulses that drive all explorers to risk their lives in wild places. Amundsen’s greatness is not that he lacked such driving forces but that he mastered them.”

 

3. Attention to detail

The clarity of the big picture is important. For any project or mission to succeed, the attention to detail, regardless of how minute, is also crucial.

In the case of Amundsen, he had a laser-like focus on every aspect of the Fram expedition – from the food chosen to the mode of travel to the choice of clothing.

Amundsen knew that in order to travel the distances they were targeting, they had to be able to get around quicker than if they were to do so purely on foot. To this end, Amundsen spent considerable time perfecting their ski equipment and footwear. This was something Scott’s team did not do sufficiently and towards the later stages of Scott’s expedition, this proved to be fatal.

Amundsen also spent considerable time with the Inuits and adopted fur suits along with their windproof outfits. The Inuits also wore their clothing loosely to reduce sweating (which helps retain body heat and also prevent freezing of clothes).

Even the way the fuel cans were sealed played a big role in the Antarctic expeditions. Scott had used incorrect washers for the fuel cans which led to evaporation of the fuel – which is a critical component in turning ice to water for drinking. Amundsen had worked this out earlier and had ensured that the cans were sealed properly to prevent any loss of fuel.

Food was an important component in the expedition which Amundsen paid a great deal of attention to. Amundsen, following his time with the Innuits, understood that an exclusively meat diet consisting of penguin and fresh seal meat was vital to remaining healthy. Although this wasn’t understood scientifically then, fresh seal and penguin meat provided enough Vitamin C to prevent scurvy (an ailment that afflicted sailors in those days and which was fatal in the long run if not treated).

On the other hand, a number of historians have indicated that the lack of good nutrition was one of the many reasons for Scott’s failure. They also tended to overcook the penguin and seal meat  (to remove the ‘fishy’ taste) which destroyed the Vitamin C present in them. Amundsen’s indifference to palate meant that his expedition ensured that they ate very unappetising biscuits (made from oatmeal, yeast – with enough Vitamin B, beef fat and pounded dried beef!) and which provided them with essential roughage. Again, this is something the British expedition team chose to ignore.

As Geir Klover, director of the Fram Museum in Oslo, explains, “”Amundsen had a tremendous reputation. He was a meticulous planner, easily the best organised explorer of his generation.”

The attention to detail, especially for major campaigns, is absolutely critical in not only determining the success or failure of the campaign, but between life and death.

 

 

4. Constant preparation

During the winter months, Amundsen and his team spent the days optimising their equipment, their clothing, their logistics and working to improve their efficiency. It was an extremely focused team with a clear view of what needed to be done to achieve the task at hand.

Scott’s team spent the time engaged in a series of meetings, lectures and reading. This led to missed opportunities for the team to review their practical and operational needs and performance.

A clear vision, decisive leadership and attention to detail are matters which determine how well a team is prepared for a mission.

 

5. Always find subject matter experts (and avoid arm-chair experts!)

Amundsen had one of Norway’s skiing champions in his team (despite the fact he wasn’t an explore or mountaineer). He also ensured that he had canine experts and dog handlers to choose the best dogs for his journey. (Scott chose not to use dogs – which he thought was more noble). This was also counter to the prevailing view in Britain in those days that dogs were of dubious value as a means of Antarctic transport (which was subsequently proven to be false).

On the other hand, Scott had instructed a member of his team who knew nothing about horses to choose the ponies for the expedition. The ponies chosen were of poor quality, age and condition and which only served to hinder Scott’s expedition.

 

6. Luck – is what you make of it

Amundsen summed it up best when he said:

“I may say that this is the greatest factor—the way in which the expedition is equipped—the way in which every difficulty is foreseen, and precautions taken for meeting or avoiding it. Victory awaits him who has everything in order — luck, people call it. Defeat is certain for him who has neglected to take the necessary precautions in time; this is called bad luck.”

 

Tsubotei – the greatest Mongol general

Tsubotei – the greatest Mongol general

Following my recent trip to the beautiful steppes of Mongolia where I had the opportunity to experience the warmth of the people and the beauty of the land, I felt moved to write about Tsubotei, a legendary Mongol general leading the armies of Genghis Khan (who was first known to all as Temujin) but who is not as familiar outside of Asia.

I must also state from the outset that the most comprehensive account of Tsubotei’s life (and indeed the basis of most of the rest of this article) comes from Richard A. Gabriel’s excellent book, “Genghis Khan’s greatest general – Subotai the Valiant”.  (Link to Amazon). I must also highlight, the Secret History of the Mongols, as another great source of information on Mongol history (which R. Gabriel draws from significantly as well).

 

“I’ll be like a rat and gather up others I’ll be like a black crow and gather great flocks. Like the felt blanket the covers the horse, I’ll gather up soldiers to cover you. Like the felt blanket that guards the tent from the wind, I’ll assemble great armies to shelter your tent.”

Tsubotei’s oath to Temujin (Genghis Khan) as a boy

A brief introduction to the man
Humble beginnings
Early promise of military genius and development
The conquest of China and Korea
Unfolding events in Central Asia, Russia and Europe
The end of a fearsome era

A brief introduction to the man

Tsubotei Baghatur (Tsubotei the Valiant) was one of Genghis Khan’s greatest generals. He, along with Khalid ibn Waleed a Muslim general of the 7th century, is considered to be one of the finest, most astute strategists known in ancient military history.

This is a man who was called one of Genghis Khan’s four dogs of war (the others were Jelme, Jebe and Kublai). He was Genghis’ Orloock (or eagle) who defended the Great Khan’s lands and struck fear into the hearts of enemies.

He started off as a mere attendant of Genghis Khan’s tents and rose to become one of Mongolia’s most brilliant generals with a flair for the genius and remarkable. Tsubotei, along with Jebe, became the first equivalents of modern day Field Marshals in Genghis’ new military structure.

He lived till seventy three and when he died, both his Chinese and Muslim enemies erected monuments in his honour. In his lifetime, he conquered thirty two nations and won sixty five battles. He was also responsible for the conquest of lands to the east and west of Mongolia – from China and Korea to Persia to Russia and Hungary.

Tsubotei’s conquest of Hungary decimated every major army between Mongolia and the threshold of modern-day Western Europe. It is often said that history makes monumental shifts on the slender wisps of fate. In this instance, it was the death of the Great Khan (Ogedai – the third son of Genghis and his successor), which saved Western Europe from a Mongolian conquest. At the time of Ogedai’s death, Tsubotei’s armies controlled everything from the Baltic Sea to the Danube River.

They had overcome European armies five times the Mongol army’s size. As Tsubotei’s army was conducting a reconnaissance of Vienna (and as the populace of the rest of Europe trembled in fear), Tsubotei received word that the Great Khan had died. Mongolian custom had it that all Mongolian royal princes had to return for the election of the new Khan. As Tsubotei’s army had three royal princes, he had little choice but to return to the Mongolian capital.

The history of the world as we know it now could have been altered remarkably had Tsubotei continued heading West.

However Tsubotei’s legacy continues in much of modern military operations and theory. A focus on speed, manoeuvre, surprise, concealment, rear guard battle, concentration of firepower and the doctrine of deep battle were ingrained into Tsubotei’s armies and they have continued into modern day military application. Tsubotei was also unique amongst his Mongolian peers in that he preferred to observe the battles from a vantage point and strategising rather than charging at the head of the army and lose the opportunity to watch the flow and ebb of battle and to strike at pivotal moments.

Humble beginnings

As R. Gabriel writes, one of the most interesting paradoxes of military history is that one of the greatest Mongol generals ever was, strictly speaking, not actually ethnically a Mongol. The term Mongol came about after Genghis Khan unified the various tribes of Mongolia, from the Kerits, to the Merkits, the Naimans and the Tartars.

Tsubotei was technically, an Uriangkhai. They were a forest tribe whom the chroniclers of ancient history referred to as the Reindeer people who lived near the western edge of the Lake Baikal. They were a very different people to the Mongols of the steppe. They were neither nomadic nor pastoral and were hunters, fisherman and traders who lived in permanent log huts. They also maintained domesticated herds of reindeer (or reem as they called it).

Tsubotei was the son of a blacksmith called Jachigudai and whose mother died in childbirth. He was also the younger brother of Jelme (another great Mongol general who was offered when he was still a boy to Genghis’ father, Yeseguei, to serve Genghis when he grew up).

Tsubotei was supposed to have taken over his father’s trade, however, the allure of the Mongol steppe proved too strong for him and he left the comfort of his Uriangkhai people and went on to join the army of Temujin at the age of fourteen. It is also critical to bear in mind that it is very likely that Tsubotei would not have ridden horses till this point at a time when Mongol children would have mastered the age of riding by the ages of six onwards. Tsubotei also would not have had the experience of eating uncooked food, or riding on horses for long distances and surviving on the blood and milk of mares as longer distances were covered. These are all skills Tsubotei would have learnt from scratch at the age of fourteen (in an era where boys joined the army from the age of thirteen onwards) which makes Tsubotei’s progress even more remarkable.

This also demonstrates Tsubotei’s tenacious and determined spirit. He knew his limitations and knew that his experience in Mongol warfare was non-existent at the start.

Tsubotei was initially given the role of Temujin’s keeper of the tent door where he learnt the skills of a Mongol warrior such as riding of horses and shooting bows whilst riding at full pelt along with basic Mongol military manoeuvres.

As a boy, Tsubotei pledged an oath to his master, Genghis Khan: “I’ll be like a rat and gather up others I’ll be like a black crow and gather great flocks. Like the felt blanket the covers the horse, I’ll gather up soldiers to cover you. Like the felt blanket that guards the tent from the wind, I’ll assemble great armies to shelter your tent.”

Whilst others compared themselves to bears and wolves, Tsubotei had no illusions about his lack of military knowledge but only served to seek Genghis any way he can and went as far as to compare himself to a rat or crow in his eagerness to serve his master.

 

Early promise of military genius and development

As Genghis Khan’s doorkeeper, Tsubotei would have been privy to the machinations to the Mongol planning and war councils. This was a fantastic military education at the feet of the Mongol generals of the time as Genghis Khan sought to consolidate and united the different tribes under one banner.

As a result, Tsubotei would have learned to think beyond individual units and tactics and think about how the various tactical operations fit under a wider strategic campaign towards a singular vision. As R. Gabriel writes, “Most new acquire this ability (the ability to conceptualise war plans and implement them on a grand scale), something that may explain why warfare has, over the long centuries of its practice, produced only a few truly great generals.”

Tsubotei’s first taste in leading a battalion was during Genghis’ campaign against the Merkits. He volunteered to lead an attack which led to a Mongol victory. Although a junior officer, he was considered to be a hugely valuable strategic asset by Genghis.

Whilst others offered their technical and physical abilities to their Khan, Tsubotei offered something more crucial – a mind that was strategic and brimming with military genius.

R. Gabriel further writes that although Tsubotei was known for his detailed planning and attention to intelligence report, Tsubotei at his core possessed the soul of a gambler, which Napoleon remarked, was the most important trait of a great general. “These traits of character, when joined with a first-rate intellect, made Tsubotei an extraordinarily innovative and imaginative commander,” explains R. Gabriel.

In the early periods of Temujin military expeditions to unite the different Mongol tribes, there was a point in 1203 where Temujin’s army was almost destroyed at the Battle of the Red Willows. Only a few of Temujin’s officers remained with him on the day, when the lake Baljuna was dry and the soldiers and officers of Temujin were dying of thirst.

Tsubotei was one of a handful of Temujin’s few loyal officers at the Baljuna lake when he and his army were almost wiped out by his one-time blood brother and then sworn enemy Jamuga and swore his oath to Temujin and remained true to the oath he made as a young boy to Temujin.                          

Temujin soon rebuilt his forces and continued to march towards his vision of unification of the Mongol tribes under one banner. As he battled the tribe of Naiman, which was the one last remaining tribe still resisting Temujin, Jamuga (who was previously Temujin’s anda or blood brother but had turned against him subsequently) is reported in the Secret History of the Mongols to have described Temujin’s generals as follows: “These are the Four Dogs of my anda Temujin. They feed on human flesh and are tethered with an iron chain. They have foreheads of brass, their jaws are like scissors, their tongues like piercing awls, their heads are iron, their whipping tails, and swords. They feed on dew. Running, they hide on the back of the wind. In the day of battle, they devour enemy flesh. Behold, they are now unleashed, and they slobber at the mouth with glee. These four dogs of war are Jebe, and Kublai, Jelme and Tsubotei.”

Subsequently, Genghis appointed Tsubotei and Jebe as the first orloocks of the new Mongol military structure. From that point one, there was never a major military campaign that was undertaken by Genghis or his successor, Ogedai, in which Tsubotei did not contribute to.

The ability to spot talent and character is one of the key traits and pillars leading to Genghis’ genius and accomplishments. Genghis was also not concerned with the ethnicity and background of his key generals. Of his Four Dogs, none were of the Borjigin Mongols which Genghis belonged to. Jelme and Tsubotei were both Uriangkhais, Khubilai was of another tribe, and Jebe was a Tayichigud. In later times, there were even Muslims and Chinese who held important positions in the Mongol army.

Tsubotei had the military genius, the discipline and the brilliance to lead the Mongol army to victories. As R. Gabriel explains, “Courage and warrior spirit were qualities not in short supply among steppe warriors. Competent field commanders were easily available, but an officer who could plan and coordinate large-scale military operations across thousands of miles was a rarity.” Therein lay the principal reasons for Tsubotei’s ascendency in the Mongol army.

The conquest of China and Korea.

Chinese chroniclers write of the brilliance of Tsubotei in planning numerous battles against the Chin states. Tsubotei was instrumental in the Mongol war against the Chin Empire and led the assault on the Great Wall. Following the major victories in Shaanxi, Tsubotei and his men rode across Manchuria to subdue the Mongol enemies there.

Tsubotei soon arrived at the outskirts of Pyongyang, the capital then and the Korean kingdom submitted peacefully. A few decades later, Korea was incorporated into the Mongol empire as a tribute state.

Following Genghis’ death and the succession of Ogedai, there were those who insisted that there was no need for further Mongol conquests. However, Tsubotei, one of the original orloocks, argued that the Chin empire was still intact and capable of resisting the Mongol kingdom and that there were still lands in the west belong to Russian and European princes all awaiting conquest. Tsubotei belonged to an old school of Mongol warriors for whom governing empires meant little. For him, only the conquering of nations mattered. The old Mongol belief was the between the mother Earth and Tengi (the Sky father), life was only about struggle – about riding, roaming and conquering.

Tsubotei convinced Ogedai Khan that time was right to continue with the conquests and Ogedai was convinced by the Mongol army’s greatest general.

Tsubotei’s genius, cunning and adaptable nature soon led to a total and complete victory by the Mongol army over the Chin empire. It is also said that Tsubotei initially wanted to destroy every single aspect of the Chin Empire and turn the plains into fine horse breeding country. Thankfully, Ogedai’s trust Chinese advisors pointed out that it was in nobody’s interests to pursue such a scorched earth policy and Ogedai spared the Chin Empire from a very terminal fate.

Unfolding events in Central Asia, Russia and Europe

Genghis, upon his return to Mongolia, in 1217, decided that he wanted to pacify the Kara Khitai, a mostly Turkic populated region. At the time the Kara Khitai was being ruled by Kuchlug (a Naiman Mongol who fled to Kara Khitai when Genghis undertook campaigns against his father. Kuchlug also instituted a campaign of forced conversion for a mostly Muslim population living in the Kara Khitai. Strangely enough, Kuchlug had an alliance with the Muslim Shah of Khwarizm.

Genghis despatched Jebe and Tsubotei to kill or capture Kuchlug who posed threats to his dominion over the lands. Jebe’s troops were the central flank leading into the Kara Khitai region whilst Tsubotei provided the support on the flanks and to ensure that Kuchlug’s ally, the Shah of Khwarizm did not threaten the main body of Jebe’s troops.

As Jebe proceeded through Kara Khitai, he proclaimed that all Muslims would have the freedom of religion and that none of the holy places would be harmed. Jebe opened up mosques and no plundering or atrocities were committed by his army. They eventually captured Kuchlug and executed him and exerted their influence over the Kira Khatai region as well.

In 1218, Genghis decided to send a trade caravan, comprising mostly of Muslim Mongols to Khwarizm to establish trading relations with the Khwarizm and Muslim empire. The governor of Otrar then set in motion a series of events that had impacts that reverberated across the Muslim and Western world. In a moment of lunacy, he decided to execute every single member of the Mongolian trade delegation. One of the camel drivers escaped and managed to inform Genghis what had happened.

Genghis decided that perhaps the Shah was unaware of his governor’s actions and decided to send another delegation to explain to the shah that he wanted the death of the governor who had trespassed diplomatic protocol. It is at this point that the Shah killed even more Muslim members of the Mongolian delegation and shaved the beards of the Mongols. Genghis took this latest outrage very personally and declared war against Mohammad Shah, the leader of the empire of Khwarizm.

As R. Gabriel writes, “The actions of an obscure government official set in motion a chain of events that changed the world. Until this incident, there was no evidence that Genghis Khan was dissatisfied with the borders of the great empire he had established for the Mongols. Now, the events of Otrar forced him to move against the Shah, with the result that all of Persia eventually came under Mongol rule. This, in turn, led to Tsubotei’s reconnaissance into the Russian steppes, which provided intelligence for the Mongol attach and occupation of Russian, an occupation that lasted for three centuries! And the success of the Russian campaign led inevitably to Tsubotei’s assault against Eastern Europe. No one foresaw it at the time, but the murder of the Mongol caravan at Otrar changed the entire history of Central Asia, Russia, and the West.”

As Tsubotei, Jebe and Jochi (Genghis’ eldest son) pursued the Shah, Tsubotei was presented with a warrant marked with the red seal of the Great Khan in which he promised that all those who did not resist were to be spared. Anyone who resisted was to be eliminated. Genghis was a man of his word, so much so that his own son-in-law, Toguchar was asked to stand down and transfer his troops to Tsubotei when he defied the Khan’s orders and sacked a town that had already surrendered.

Tsubotei pursued the Shah until the Shah crossed the Caspian Sea and found refuge in a small island but died in poverty and despair. Thus ended the mighty kingdom of Shah Mohammed II which was then captured piecemeal by the Mongols (and sometimes in horrific and tragic ways).

Following this though, there was still a huge issue which Genghis grappled with. There was concern that the Western armies (in Arab or European lands) may raise an army to fight the Mongol army. In the East, there was intelligence that Jalal al-Din, the faithful and able son of the Shah was raising an army to avenge the loss of the Shah’s dominion. The only commander who had any knowledge of the Western front was Tsubotei and he received very clear instructions when he was camped on the Caspian to return to Samarkand, Uzbekistan where Genghis was waiting. Tsubotei, a man who lived to serve his Khan, left the Caspian and undertook a 2,000 kilometre journey in just over seven days.

Here Tsubotei assured Genghis that given the terrain and conditions, it was unlikely that any army from the West will link up with Jalal al-Din’s army in the East. He also further proposed to Genghis that he and his men be permitted to ride on further West where there was a land with “narrow-faced men with light hair and blue eyes.”

R. Gabriel describes the subsequent events as follows, “In the late autumn of 1220, Tsubotei and his troop of Mongol cavalry men began what was to become the most remarkable cavalry raid in military history.”

Tsubotei undertook this very difficult campaign armed with the tenacity of his men along with the deep intelligence gathered by his staff officers who included Chinese scholars as well as Muslim scholars. They helped him compile the maps of Hungary, Poland, Silesia and Bohemia. A majority of this information was provided through interactions with Venetian traders whom Tsubotei’s men had come in contact with.

The Venetian traders had signed a secret treaty with the Mongols that they would send me back detailed reports and intelligence from the countries they visited. In exchange, the Mongols promised to destroy all other trading stations in the lands they rode on leaving the Venetians with a monopoly.

The Russians fearing the threats posed by the Mongols joined forces and converged upon Tsubotei. He was surrounded on all sides by various Russian troops and their allies. Tsubotei tried to use diplomacy to break off possible military engagements. In an interesting anecdote, Tsubotei sent an ambassador to the Prince of Kiev trying to convince the Prince that his intentions were not on conquering Russian fiefdoms.

However the Prince of Kiev executed the ambassador. In response, Tsubotei surprised the Prince of Kiev with another ambassador, this time carrying a formal declaration of war. Mongol military etiquette required that, whenever possible, a declaration of war be issued before the commencement of hostilities.

To avoid being entrapped by the Russian armies, Tsubotei and Jebe continued to move east, away from Russia. They left a rear guard platoon to report on enemy movements and to also delay the Russians as they advanced upon the Mongols. For over a week, the Russians pursued Tsubotei and Jebe after overcoming the rearguard Mongol troops.

Finally Tsubotei camped near the Kalka River, a terrain he had been over before. He decided that he would launch his counter attack of the Russian troops here. Tsubotei lit huge Mongol fire pots that created plenty of smoke that disoriented the advancing Russian troops and the Mongol light cavalry rode forward and backward in the path of the Russian troops concentrating their arrow fire to a deadly effect. The net result of this was that a Mongol army of 18,000 overcame a Russian alliance far larger and killed over 40,000 Russian troops along with six princes and seventy nobles.

Soon thereafter, the Mongols overcame the Prince of Kiev (who was suffocated in a box – as Mongol tradition forbade the shedding of royal blood except in battle).

Tsubotei then joined Jochi’s troops and defeated the Volga Bulgars. Thereafter, Tsubotei and Jebe headed back to the Mongol capital to meet with their Great Khan. Jebe passed away and never made it. Tsubotei also left behind a sophisticated intelligence network that allowed for the gathering of information and insight that was instrumental when Tsubotei headed back West. Tsubotei’s initial venture out into the West was with a very small army and was a cavalry raid. The next time he returned, he would do in a large force.

In 1227, Ogedai had taken over Genghis as the Great Khan following Genghis’ passing. At this point, the Mongol empire was engaged in four separate engagements: one against the Chinese empire; second against Korea to suppress a widespread revolt that had broken out in the Korean peninsula; the third against kingdoms around the Caucasus and Persia; and the fourth into Russia and then Central Europe.

Tsubotei was placed in charge of the fourth engagement towards the West. Tsubotei’s key idea was to conquer Russian piecemeal so that they did not have enough time to form mighty coalitions. Another key strategy was to attack them in winter when the Russians and European armies were ill-equipped to conduct battle.

In a short four years, Tsubotei had managed to capture almost all of Russia. He then turned his sights towards Eastern Europe. At this time, Europe remained a deeply feudal society with internecine warfare and campaigns against one another. Tsubotei decided to invade Hungary but simultaneously sent a force under Kaidu Khan, grandson of Ogedai to strike at Poland, Bohemia and Silesia and distract Tsubotei’s main aims of an attack against Hungary.

The Mongols destroyed all opposition to their plans of conquest at the battle of Liegnitz in 1241 where the Silesians were routed. Following this, the Grand Master of the Templars wrote to King Louis IX of France that there was no army of significance between France and a powerful Mongol army that aimed straight for the heart of Western Europe.

“The Mongol army was truly the most organised and combat efficient army that the world had seen in almost a thousand years,” writes R. Gabriel.

Whilst Kaidu Khan was destroying the armies of Poland and Silesia, Tsubotei was waging war against Hungary. Tsubotei broke the spine of the Hungarian army led by the Hungarian king, Bela decisively at the Battle of the Sajo River. Again, Tsubotei used his cunning to create openings and gaps that lured the Hungarian troops into the space which he then closed up with his archers and infantry troops. Over two days, the Mongol war machine killed between 50,000 and 70,000 Hungarian soldiers including the entire royal army of Hungary.

As Tsubotei’s troops encircled Vienna and poised to strike into the rest of Western Europe, the Mongol army heard the news that Ogedai Khan wad dead and they had to return to the Mongol capital. As the powerful Mongol machinery made its way back to the capital, they disappeared, never again returning to Europe.

 

The end of a fearsome era

R. Gabriel writes that when the Franciscan monk Giovanni di Plano Carpini visited the Mongol court, he reported that Tsubotei was alive and in his early seventies. He was the most famous and admired of all Mongol general.

It was rumoured that Tsubotei had removed his badges of rank and lived in his ger (a Mongolian tent) tending his herds and watching his grandchildren grow.

The Mongols referred to Tsubotei as the Unfailing. Carpini described him as a soldier without weakness. The Muslims described him as “silent, insatiable, and remorseless.”

The Russians thought of his as “extremely disciplined.”

The Chinese held Tsubotei in very high esteem as a great warrior upon his death, bestowed upon him the title of King of Hunan because he had captured the province. They also called him, “the faithful and steady.”

When Tsubotei died, Muslim chroniclers noted that he “had conquered thirty two nations and won sixty-five pitched battles.”

In the end, Tsubotei became a man whom even his enemies respected for his military genius, brilliance in planning and strategy. Tsubotei Baghatur or Tsubotei the Valiant truly was amongst the greatest generals in military history.

Twenty things I learnt from Coca-Cola

After having read “Inside Coca-Cola: A CEO’s life story of building the world’s most popular brand” by Neville Isdell  (Amazon link), Coca-Cola’s 12th CEO and Chairman,- I wanted to share twenty things I learnt about Coca-Cola which may be useful to you. Coke has always been a fascinating entity which has transcended cultural, political and religious ideologies. An example of this was when Tom Mattia decided to track a case of Coke in Kenya from start to finish. The last transaction in the entire cycle was a goat! As Mattia explains “They traded a baby goat for a case of Coke.”

#1 – Jack Welch turned down the CEO post at Coca Cola

Jack Welch – business titan who raised General Electric’s market capital from US$14 to US$410 in a span of two decades, was offered the top job at CEO. Welch gave it serious thought for three days before declining it. Neville Isdell, long-term Coca Cola man, was offered the job, he accepted, and the rest as they say was history!

#2 – How Coca-Cola’s secret formula is distributed around the world. 

Coca-Cola manufactures the secret formula in a few locations around the world. Even then-CEO, Neville Isdell, did not know the recipe! The formula is then mixed with other ingredients to form a concentrate which is then processed into syrup form and delivered to bottling plants and restaurants around the world.

#3 – Coke’s relationship with independent bottlers and its evolution

In the past, Coca-Cola used to make the bulk of its profit from concentrate sales to independent bottlers. However, in recent times, Coca-Cola purchased a significant proportion of the bottlers and as a result now own 90% of the bottling operations in the United States and Canada.

In the mid-80s, Isdell undertook a campaign to consolidate the 116 bottlers into one single bottler. The idea was that this will improve cost efficiency, more streamlined operational delivery and chart a clearer course towards growth. However, political differences reared their ugly heads and they were unable to do so (mainly as a result of wealthy independent bottlers refusing to give up control) and instead, the bottlers were consolidated to 30 bottlers. However, Isdell revisited this issue when he became CEO and now Germany operates under a single bottler.

Coca-Cola now has significant interests in primary bottlers in the Coca-Cola system, which it calls “anchor bottlers” around the world.

#4 – The terrible condition of South Africa during the apartheid era

An example of the atrocious conditions under apartheid South Africa. During apartheid, black and mixed-race South Africans were able to leave their townships to work in other parts of Johannesburg but had to be back by curfew at nightfall and had to carry a pass. Blacks were also only allowed to drink one alcoholic beverage under apartheid laws. This was the condition under which people were living in during the rule of apartheid.

#5 – Coke’s success in the Philippines 

In 1981, Pepsi had a 2 to 1 lead in the Philippines (Pepsi was outselling Coke 4-1 in some parts of the country, including Manila at the time), the 10th largest soft-drink market in the world. (The Philippines had a per capital annual soft drink consumption of 134 bottles per year, compared to 39 for Thailand and 10 for Indonesia. India’s was only 3!).

Interestingly enough, Mindanao (despite being torn apart as a result of two insurgencies – one religious and the other communist) was the strongest market for Coke in the market.

Pepsi chose to ignore Mindanao which remained Coke’s biggest profit centre in the Philippines and coupled with upgrades at Coke plants in the country, terrific motivational techniques for sales teams (including sales rallies with good music, good food, beer and theatre during weekends), and an increased attention to customers’ needs, Coke ended up leading 2 to 1 over Pepsi in the Philippines.

 #6 – Importance of cultural fit in an organisation (and how Coke dealt with expats in emerging markets)

Another example is how you provide incentives to workforce in the Philippines. Isdell thought that giving the staff a product worth $400 was better than giving them cash of $200 (since they can get the product at cost due to their bulk purchasing power) but that in the Philippines a salesman would rather keep the $200 as ‘play money’ as opposed to the tradition whereby he will give his salary to his wife who will then in turn give him an allowance!

It is vital for any global organisation to understand the culture of the country in which it is operating in. For instance in the Philippines, you need to understand the concept of ‘utang na loob’ or the role of obligation – where you return a favour done to you at some point in the future; or ‘pakikisama’ or the idea of getting along and avoiding confrontation when meeting someone for the first time no matter how divergent your initial views and opinions.

Isdell also made it a point to ensure that expats and locals were truly blended as one team as opposed to Pepsi’s cardinal sin of allowing for expats to live a completely separate life to the locals. This led to a disconnect between the expat management and the society they were supposed to serve and led to alienation all around.

#7 – A unique way of undertaking competitive analysis

Isdell was keen to ensure that Coca-Cola’s senior management looked at their business through the lens of their competitors. In Manila, he took the upper management team to a strategy session in a room decorated with Pepsi posters, where they lived and drank Pepsi and spent a whole day trying to understand and detect the weaknesses of the Coca-Cola system and develop a strategy to retain leadership over Pepsi. It allowed an open and honest space for people to be frank about Coca-Cola’s flaws and strengths and in the process come up with relevant strategies to outdo the competition.

#8 – How Pepsi and Coke undertook bottle stealing!

Back in the 80s, both companies were stealing each other’s bottles in an attempt to drain the competitor’s assets by forcing them to purchase more glass. They had fields of their opponent’s glasses stacked! Isdell put a stop to this ‘poaching’ of bottles and soon Pepsi followed suit too. It just goes to show how competition without a ‘moral’ strand can lead to insanity!

#9 – Importance of rallying the troops/team towards a defined objective

Philippines was a clear example of how if one is unable to motivate the sales team in an organisation, then success is unlikely to come by. Leadership, an unwavering commitment to defined aims and a personal connection with key stakeholders is what leads to success in difficult markets.

Rally the troops and the men and women who work for you and win the war.

#10 – The fiasco that was New Coke!

Coca-Cola came up with a new, sweeter formula called New Coke in 1985 which provoked a furious consumer backlash! Coca-Cola pretended that all was well and kept attempting to push New Coke onto consumers who hated it and wanted no part of it. The lesson here is – don’t push to customers what they hate and always test rigorously and above all, listen to your customers! Failing to do so only leads to painful mistakes like New Coke!

#11 – The value of a good lieutenant and the importance of succession planning.

It is always important to ensure that you have a good understudy or support manager who you groom to take over your reins when the time is right. In Isdell’s case, it was a young regional manager by the name of Mukhtar Kent who took over Isdell’s position when he retired. Kent was instrumental in Coca-Cola’s success across Eastern Europe during the Communist era.

The importance of also having a sound succession plan cannot be understated. The retirement of Goizueta and Keough as CEOs of Coca-Cola after many years of sterling leadership led to a vacuum of effective guidance and direction and the company languished in corporate purgatory for a number of years. In 1999, Coke also laid off over five thousand people (and this in a company where mass layoffs were unheard of and a job almost always meant a job for life) which damaged the organisations’s momentum and morale.

An outgoing CEO’s performance must be strongly hinged to the outcomes and successes of an incoming CEO.

#12 – Never shy away from conflict that is necessary

“a business leader should never be frightened by conflict, and should always find a good, honest solution that is pragmatic, not bullheaded.” – Neville Isdell

#13 – How Coke dealt in Soviet Union – and delivered capitalism in the Communist block (and the economy anomaly that was ‘counter-trade’)

Due to foreign currency restrictions and the prohibitions in bringing currency out of the USSR, a system allowing for foreign companies to operate emerged. This system was known as the ‘counter trade’. What this meant is that Coke will ship concentrate to the USSR and in exchange will receive Soviet-made goods that Coke will then need to sell elsewhere (like in the UK) to obtain hard currency. So for instance, Coke used to sell concentrate, and get Soviet Lada cars which they sold in the UK. Pepsi used to sell their concentrate and in exchange get Stolichnaya vodka!

Coke also invested in Romania even before a foreign investment law had been written and leased land from a Church in Poland because there was no concept of private ownership of land! The ambiguities of operating in emerging markets! Coke even had to help Russia create a land registry on behalf of the privatisation committee in Moscow just so they could own land to manage a bottling factory. Isdell acknowledges that time, effort and resources to do basic business transactions in a number of countries was huge but this was offset by the equally huge opportunity.

One of Coca-Cola’s greatest achievements was to provide an example as to how a successful company works in previously Communist nations and to allow them to learn best practices from them.

#14 – A fantastic example of cultural diversity.

When Coke ended up leasing land from a church in Poland, they were required to attend mass at the historic St Brigid’s Church. When it was time to collect the church offerings, money was first collected from Donald Keough, CEO Coca Cola, an American Catholic, and then Neville Isdell, an Irish Protestant, and then Georg Fleischer,  a German Lutheran, and then Andrew David (a Coke bottler) who was Greek Orthodox, and then on to Mukhtar Kent (future Coke CEO), a Muslim, before finally passing it to Danny Moskovitz (who worked at Coke) and who was Jewish.

What better example of diversity than this!

#15 – Coca-Cola and India – and how they chose not to sponsor Sachin Tendulkar and allowed him to go to Pepsi instead!

Coca-Cola left India because the Indian government at the time demanded that secret formula be revealed to them. Coke walked away from the second most populous country in the world over an important matter of principle and this is an important lesson: always stick to your principles!

However, after Coke came back to India, an individual based in Atlanta decided to block Coke’s local Indian staff’s (Jay Raja) efforts to sign of Sachin Tendulkar saying that it would be a waste of money! Pepsi signed Tenduklar instead!

Another lesson here is – always listen to your local man on the ground.

#16 – Always plan for growth.

Isdell gathered 150 of Coke’s top executives and embarked on the “Manifesto for Growth.”

The manifesto has five core principles around: People; Portfolio; Partners; Planet and Profit. It provided an honest assessment as to where Coke was as a company and where it needed to go. The manifesto allowed for a framework as to who Coke was a company, provided them with a clarity of vision and tactics.

This clarity in direction is critical when you seek to revive an organisation that sometimes loses its way. Go back to basics, find out what made you great, think about what will make you great and work on the differences.

#17 – Corporate loyalty 

In 2004, the Securities and Exchange Commission (SEC) in the US launched an investigation into the practice of channel stuffing (where you artificially push up concentrate sales to bottlers to boost corporate earnings in a quarter). The SEC was targeting the CFO, Gary Fayard, and though Fayard’s lawyers were confident they could win the case, they also highlighted it could take five years. Fayard offered to resign as CFO. Isdell refused the resignation and said, “Gary, you’re innocent and we are going to fight this with you.”

Loyalty tends to be, for the most part, reciprocal. Show loyalty to your team and they will show loyalty to you.

In the end, the SEC investigations were resolved; Coca-Cola’s accounting disclosures were found to be accurate (though the SEC did find that the company failed to disclose the impact of channel stuffing on future earnings and made misleading statements in a public filing) and the CFO was not sanctioned and remains the CFO to this day.

#18 – The perils of arrogance

A quote from Mukhtar Kent: “Coca-Cola in the late 1990s had lost its way. We became arrogant. We lost touch with the details of what makes this business works well. Neville (Isdell) and I were able to bring back the belief that Coca-Cola is great and that we can grow again. When you believe that, when you have a growth model, no one quibbles over trying to split something that is shrinking.”

#19 – Connected Capitalism

The idea that business, government and non-profits should work in a three-way effort to build a better world, towards a cleaner planet, with viable solutions to poverty and disease.

An interesting tale to be shared. When Martin Luther King (MLK) was awarded the Nobel Peace Prize in 1964, a celebratory dinner was planned for him in Atlanta. However, a significant number of the business community had plans to snub MLK. It took the persuasion of Robert Woodruff, ex CEO and Chairman of Coca-Cola to ‘persuade’ the senior members of the business community to attend. This resulted in more than 1000 of the business and civil society leaders of Atlanta attending the dinner where MLK delivered one of his most famous quotes: “If the people of good will of the white South fail to act now, history will have to record that the greatest tragedy of this period of social transition was not the vitriolic words and the violent actions of the bad people but the appalling silence of and indifference of the good people.”

It will also be important to note that through the tripartite relationship between business, nonprofits and governments, each party brings different strengths to the table. Business brings efficiency and profit. An example of how this worked was when CARE, the international relief organisation worked with UPS. UPS used to donate only cash to CARE previously but in 2007, UPS and CARE decided to examine how else they can work closely together and they realised that UPS could improve CARE’s logistics operations and help improve the efficiency and supply chain management and in the process, CARE benefited from the expertise which UPS could share and UPS managed to provide support to CARE in a much more meaningful manner. Both organisations benefited through this significant partnership.

Businesses must learn to operate sustainably in order to last. Profits lead to progress, not just for the company but the wider society in which it operates.

#20 – “In the complex economy of the future, business interest and society’s interests will become more closely aligned. Capitalism will have to be connected or it will not survive.”

 

If you enjoyed this, I would strong suggest you get this book and also Donald Keough’s excellent book, The Ten Commandments for Business Failure.