• Inspiration

Menaka Doshi (MD): If we rewind to the year 1999 or 2000, Anand Mahindra wanted to unlock value in Mahindra & Mahindra. Over the last decade that saw you having created a federal structure successfully, is Mahindra Rise the next big challenge? Also, when one creates a federal structure, one needs to find a sense of ownership that keeps the disparate parts of that structure together or links it to the mothership. There are identity issues and a lot of friction involved in the process. Do you see this coming up as one of the key challenges to be faced?
Anand Mahindra (AM): Essentially yes. That is exactly the idea. An empowered federation is a group of companies that are independently listed and have independent boards that are accountable to those boards. My job when I head a federation is to bring the value to these truly empowered and independent companies. I am constantly obsessed with ways to add value. There is a way of adding values by adding value through values, core purpose, sense of urgency and commitment. All this is uncommon which comes when you belong to a larger community. So, my goal is to shape that community and its purpose.
MD: We are curious about the timing of Mahindra Rise. The initial work on this started way back in 2007. The unleashing of this campaign comes at a time when trust deficit is at its peak across the world, especially in the developing world, and is increasing in India. People are suspicious about big businesses. Don’t you think this campaign could backfire at a time when people look at big businesses and say that they will do anything to prove their credentials and make suckers out of us?
AM: There is no risk of backfiring. However, we run the risk of the campaign falling flat and not having any impact at all. This is why we are working hard on it. The biggest thing that has got us going is our conviction. I have said in my message to all the members of Mahindra Group that we are trying to convert ourselves into a brand.

MD: When you talk to investors and consumers, do you sense a lurking suspicion about big business in the country right now?
AM: Definitely yes.

MD: Do you think that an evolution in corporate philosophy manifesting itself through a tagline and a brand campaign will go well? Are people willing to receive positive communication from big businesses? Would they still not be suspicious and say that they do not trust you as you are trying to look better than what you actually are?
AM: I have been in touch with the zeitgeist through Twitter or Facebook. It is a valid medium to get a flavor of what people think. There is an absolute cry for a change among people as they want to believe in somebody. That is raising the stakes. We are taking a risk of disappointing people and not walking the talk.

MD: My question focuses more on the timing of bringing about this change. What if you had brought this before people some six months before the 2G saga which is going on at present? Or six months after it getting over, assuming that public memory is short and people must have forgotten the worst. Do you think that the acceptance or rejection of the campaign would have been different based on the timing of Mahindra Rise?
AM: (That’s) Intriguing. I do not know if it would have been different. We were determined to do this program anyway. This program, internal work and campaign preparation have been in progress for more than
a year now.

MD: How do you measure the success of what you are trying to communicate? What will you, as an individual, choose to measure this with over the course of the next three to five years?
AM: About four-five years ago, I articulated a metric to check our customer centricity, which was equally a fuzzy concept. We used the well known Mathematical Programming System to convert it to a customer as promoter score (CAPS). I announced that if I was on a desert island and had the choice of getting only one metric, it would be the CAP score. If you have a high percentage of customers recommending you, your business will flourish sooner or later. Rajeev, our human resources Head, announced an employee as promoter score (EPS), which is a very specific metric.

We’ve been doing this for four years in the group measuring customer as promoter score. It is easily measurable and follows a very simple survey. The anonymous survey that asks employees whether they will recommend somebody else to join Mahindra. The question is the trend line. So, that is a hard metric. As our human resources head Rajeev said, we are going to get in these brand pillars of accepting lower limits and translating on ways to stretch your budget. That’s how we measure whether people are accepting our limits or playing safe. We’ve been measuring the index of innovation and driving positive change as qualitative. We’ve got a very hard-nosed set of metrics to be used.

MD: What does 10 X mean? Investors may be keen to know if this is some sort of minimum guaranteed bump up in the way the company has performed over the course of the years.
AM: Ten X is a state of mind. It could be 10 times revenues, 10 times profit, 10 times market share or even 10 times proven in quality. It is has to be taken according to what you want to set as your goal.

MD: Tomorrow if I buy a Scorpio or I join Mahindra & Mahindra as an employee, what will be the change in my life because of ‘Rise’ in your brand?
AM: A very strong brand manifesto has been created on this, which will be translated down to everybody. If you are a salesman for Scorpio or any other Mahindra vehicle, you and your team will be measured on this brand pillar. In Mahindra Rise, no limits would be accepted. One has to apply alternative thinking and innovative ways in getting the consumer understand the benefits of our vehicle. Passion has to be involved, essentially. Rise would also mean to judge whether the employees are driving a positive change. The motto would be to improve the quality of life for an individual buyer as well as commercial buyer. The entire number of people throughout M&M should keep repeating the motto of the company in every single thing they do. Once this happens, there will be an impact.

©Entrepreneur October 2011

Tags:
Anand Mahindra, business, Mahindra and Mahindra, MD, Menaka Doshi, Rise, Vice Chairman