Microfinance in Northern/Eastern India

A lot is being said about microfinance in Andhra Pradesh, Tamil Nadu or Gujarat. What many dont know is the slow but steady rise in micro financing in the states like Bihar, Jharkhand, MP or West Bengal.
Recently SKS, one of the biggest microfinance companies in India and now featured in a Forbes list, opened shop in Bihar. Already companies like Basix, Share and Nidan has been getting its market share. Smaller start-up companies are coming in with the help of giants like Unitus or the Dell Foundation or the Bellweather Foundation to hold their hands.
Cashpor Microcredit operating in Bihar and UP has recently crossed the 100,000 client mark. These are some of the poorest regions in India. This is a tiny number as compared to states such as Andhra Pradesh, but it is a significant start nevertheless. Bandhan and Arohan are smaller setups working in various districts in West Bengal.

What does it mean for us.

Whereas larger microfinance companies have been using the services of executive search firms for some time, only recently have the start-ups and smaller firms realised the need to get top talent in their top management. Microfinance organizations are not always not-for-profit firms and hence selling and recovering becomes integral to their bottomline. What is required then is aggressive selling of loans on the one hand and also humanitarian forms of recovering the loans without pressure but with efficiency. Founders are understanding the need of getting corporate hotshots, with experience in private banks or even from diverse backgrounds like FMCG selling to lead the business from the front.
A perfect match would be a combination of the above skills with the passion for development work. And whereas that is not to difficult to find, one has got to know where to look.
Sammaan Foundation is a non profit company started by two graduates from IIM-A and IIT-K. It provides funds to rickshaw pullers and even redesigns rickshaws to suit the pullers and passengers better. The difference brains make to the project is this- besides funds from leading funding agencies these two have deviced other revenue generation shemes, advertisements on rickshaws, mineral water bottles and newspapers to passengers etc, while working towards a sustainable livelihood for the pullers.
Therefore, young brains are always available to lead companies to a bright future. More and more microfinance agencies are realising that. And they are ready to pay the price to get them on board.

Indians in the TIME 100

The 2008 Time 100 list has, surprise surprise, Sonia Gandhi, Mr Tata of the Nano, Indra Pepsi Nooyi. Well, Ms Gandhi was not born Indian, and Ms Nooyi was but grazes greener pastures. That leaves Ratan Tata, the only 'true' Indian on the list. Well, there is the Dalai Lama too, and one can vehemently argue that he is as much Indian as you and I, after all, we all root for a free Tibet too.
BTW, Hu Jintao, also makes the list. Thank God they put the Dalai Lama before him, even though the list is not ranked.

"Say you'll stay..."

...Goes a song from the Cranberries.

Technology boom, open markets, vibrant job-scene... this is what the world has to offer the average college grad today. Consider this- in the next 5 years the old bastion will have retired. More than 55% of the country will be below 25. Companies across the globe will be flooded by new blood. 20-25 year olds... the 1990-s born.
Already expectations of the new recruit are sky high. They would have seen their grand parents and parents in a particular job set-up- one company, one job, slow growth, painful trudging up the hierarchy, slow salary raise through ones career. Not for them, this scenario. Economic optimism and a growing job market means they will not stay put for less salary or advancement in career. They are not afraid to jump and more often than not, they are not the worse off for it.
"It's a very different generation," says S. Gopalakrishnan, chief executive of Indian tech giant Infosys Technologies "They want immediate rewards."
The challenge, hence, is to find the balance... a way in which to utilise their energy while giving a realistic viewpoint to their expectations; address both their desires and frustrations.
Given the large population on youngsters in the job market, what India will do today, the world will learn tomorrow.
"India is going to be a lab for lessons that we'll apply to other countries," says Lyndon Rego, manager of innovation at the Center for Creative Leadership in Greensboro, N.C., which develops leadership training programs in emerging markets.
And the experimentation is already under way in companies like Infosys, IBM, Mindtree and the like, which have all revamped their training and orientation programs for the young recruits below 30.
In the graduating batch of 2007 IIMs, a large percentage has already shifted jobs, some even twice. In one year. With this years financial slump, the trend might slow down a little. However, the 2008 batch of B-schools and engineering colleges have just finished their placements. In a few months we will know what they will decide to do, and who will finally be able to make them stay.

How much have we heard about the "Kolkata work culture". For generations it is a well known fact that Bengali-s are a lazy lot, dreaming away their days and singing and chatting away evenings, till its time to sleep. In Kolkata only though. Take a Bengali out of Bengal and he is a different animal. He not only works his backside off, and parties through the night, but also is the first to call his country cousin's bluff, first to criticise the above mentioned work culture, the first to point out that "they" all take siestas and jump for joy on bandh days.

We have a whole separate set of vocab for our gabbing. The "babu", with all its negative connotations is a quintessential Bengali term from the time when Writers Building first came into existence.

Have you heard of "rowak culture"? That is when a group of people sit on a 'rowak', that is any level ground where you can sit, and "give adda", (a word now in the Oxford dictionary, all hail) or while away time by talking. And how they talk. Any typical 'rowak' conversation could start with Bhajji's insult and end with Sarkozi's declining support in France and maybe touch Anjelina's pregnancy somewhere in between!

But Bongs, they are a-changing. The latest news is that "rowak adda-bajs" are joining the list of the endangered. Can it be that Bengali-s are finally trying to get some work done? Could well be. Leave Dalhousie's laid back lumbering afternoons and head towards the swanky buildings of Salt Lake Sector 5. The only locality in Calcutta spared the onslaught of Bandhs (another word recently introduced to the Oxford dictionary). That's the IT hub in the city, trying hard to look and feel Bangalorean. Glass walls reflect well dressed young men and women rushing about for a quick bite, a far cry from loose trousers and 'half-shirts' of the Government employee.

Real and retail estate is on the rise once again. Malls like South City are creating a whole new place for kids to spend their time. The Bengali has finally learnt to dress for a night out. Night clubs are usually full, restaurants have one hour waiting periods, marks and spencer lingerie is selling like hot cakes. And we are working for it. Finally there is an outcry against another bandh. People are out on the streets, almost defiant, inspite of lathi weilding goonda types (party workers, no less). We want the world to know we are not like that. We want that message out- "look ma, no holiday".

We are trying to stop talking and start walking. And if that happens in the heart of Bongland... watch out world.

A press release on Spearhead Intersearch, the Indian arm of Intersearch Worldwide

INTERSEARCH WORLDWIDE STRENGTHENS ITS PRESENCE IN INDIA

InterSearch Worldwide, one of the largest executive search networks globally, announces its expansion to India.

The newest member of InterSearch is Spearhead, a leading executive search firm incorporated in 1997 with a team of 20 seasoned search professionals based across four major cities - New Delhi, Bangalore, Kolkata and Mumbai. In addition to several of the largest Indian corporations, Spearhead has been retained to fill senior leadership positions in India for a client roster including organizations as diverse as the Bill & Melinda Gates Foundation, the World Bank, Honda, Nike, Mars Inc., Merrill Lynch, Bata India, Tupperware, Alcon Labs, Givaudan, Accretive, Vertex India, Emptoris, MWG, CIFF, Siemens and many others.

"We are privileged to be a part of InterSearch Worldwide, a top ranked global network. The values and qualities that InterSearch stands for are very important to us. In a growing and rapidly developing economy such as India, where corporate / business opportunities abound and the war for talent is raging, it is imperative that we bring genuine value and higher standards for our clients, through global capabilities in a local setting. Our partnership with InterSearch gives us this strength and enhanced capabilities to widen our service offering. This is already evident through the amazing response received from a key barometer – our clients! They’ve given a huge thumbs up to the news of Spearhead joining InterSearch and they are excited about the new business possibilities they can explore, without having to worry about finding leadership talent in India or globally," commented Jyorden T. Misra, Managing Director of Spearhead InterSearch India.

InterSearch is the 4th largest search firm worldwide for 2007 by number of offices, according to the annual survey conducted by search-consult magazine.

Also-

InterSearch Worldwide: EMEA Business Development Meeting & Belgian HR Awards
Executive search consultants from InterSearch offices in 16 European countries attended a regional business development meeting hosted in Ghent by Schelstraete & Desmedt, the Belgian InterSearch partner, on January 24 and 25.
The meeting was scheduled to coincide with the 8th Annual Human Resources Awards organized by Schelstraete & Desmedt, an event designed to reward the best graduate thesis in the field of Human Resource Management and Organisational Development, thereby building a bridge between the academic and business world.
Ms J. Gysels of the University of Ghent won this year's HR award with her thesis on "The Relationship Between Job Search Objectives and Job Search Behaviour".
In line with the subject of the selected thesis, the main topic of the event was talent acquisition. Key note speaker of the event was Astrid De Lathauwer, Chief HR Officer of Belgium's largest telecom operator Belgacom, who gave attendees a unique perspective on "The War for Talent in 2008: Is It Really Happening?"
“It was very interesting to listen to innovative ideas on how to motivate managers to make the right recruiting decisions with a long-term view, keeping in mind concerns about changing demographics” commented Heinz-Dieter Hestermann, Board Director of InterSearch Worldwide.

Media contact:
Carla Calvo ( +39 335 7429756 calvo.c@intersearch.it)
Harris Karaolides (+30 210 7294 720 info@symvoli-intersearch.gr)

Barefoot Banking

Seven Indian micro-finance companies have made it to the top 50 in the Forbes list. A World Bank study found that in rural households in Andhra Pradesh and Uttar Pradesh, 59% lack access to deposit account and 78% lack access to credit. There are 360 million "poor" households, both rural and urban, as the potential customer base for micro finance institutions to reach.

Still much of the microfinance action is happening in South India, mainly Andhra Pradesh and Tamil Nadu. But just in the last five or so years micro finance has moved from the periphery of the financial sector to the forefront. As Forbes puts it "even philanthropy aimed at alleviating poverty can be profitable".

In India, in Andhra Pradesh the three MF institutions, Share, SKS and Spandana, has extended from servicing about 1 lakh families to more than 15 lakh families today. Almost all major financial organizations, ICICI, Citi Group, HDFC, SIDBI, Grameen Group, have a share in the pie.

Empowerment of the poor seems to have become the buzz word globally. One just has to wait and see where this leads to in another 10 years time. The transformation of this nation depends on the power being passed on to the farmer, the small entrepreneur, 'the butcher, the baker, the candlestick maker'.

When Mr. Gubin’s wife is Mrs. Gubina

Here is a nice article I came across. Old one though. But makes for good reading.

It’s important to learn the nuances of business etiquette in the country you are visiting.

A young vice-president of a large Indian engineering firm went on his first business trip to China last month and had, quite thoughtfully, taken small gifts for his hosts based in Shanghai. His experience shows why it’s important to learn the business etiquette in the country you are visiting. For, it varies widely from country to country and not knowing the nuances of business etiquette can cause a major embarrassment.

At his first meeting, the executive offered a nicely gift wrapper present to his Chinese counterpart. The HR manager in his company had told him that the Chinese love token presents. To his surprise, the Chinese gentleman smilingly declined to accept the gift. Thinking that he was just being polite, the Indian executive offered the gift again, but rather sheepishly put it back in his bag as the Chinese declined it for the second time. He obviously didn’t want to offend the sentiment of his host. But little did he know that it is part of the business etiquette in China to refuse gifts three times before accepting them. The presenter of the gift was supposed to graciously request him to accept it thrice.

Thus, it’s advisable to know the culture of a place before you offer business gifts. For example, giving cutlery as a gift to your business partner in Argentina will be symbolically interpreted that the giver has decided to end a relationship.

Also, in many European nations, an even number of flowers fewer than a dozen is appropriate only for funerals. And don’t give chrysanthemums or red roses as gifts in many of these countries. While the former is given only at funerals, the latter will be interpreted as trying to be romantic. An Indian business manager who gave roses to his prospective business partner in Italy was initially thought by his guest to be gay!

The gay V-P did not have to pay for his mistake heavily as his trip was more fact finding in nature. But talk to many of today’s global managers and you will find examples galore of things going horribly wrong due to the lack of knowledge of the business etiquette of the country they wer4e visiting.

The V-P gives several examples of the dos and don’ts of business etiquette in China. For example, do not give clocks or anything in white, blue or black to any Chinese business host, as they are associated with death in that country. Imagine an Indian manager (a Hindu particularly) getting a leather bag from a foreigner who proudly proclaims that it is made from cow hide.

Attending a dinner without knowing the business etiquette of the country you are visiting can also be hazardous. While in most European nations, a business guest is expected to eat all of the food given to them as a compliment to the quality of the cooking, don’t do the same if you are in China. For, your Chinese guest will assume you did not have enough food and are still hungry.

While on the topic of business dinners, if you are in Moscow, don’t ever leave an empty bottle on the table. It’s considered to be very poor manners. As soon as you finish the bottle, move it to the floor so that it is off the table.

There is a lot to learn even on maintaining eye contact with your business partners. In Ireland, for example, it is considered politer to maintain eye contact as not doing so will imply you are not interested or ignoring the other person. But it is exactly the opposite when you are in Japan. In Tokyo, the lesser the eye contact, the better off you are. The Japanese view direct eye contact as an affront and prefer only an occasional glance.

If you are on a business trip to Japan, you should receive even a business card with both hands (taking it with one hand is considered insulting) and bow subtly. And read the card with great interest. The short point is simply taking the card and putting it in your pocket is considered rude.

It is also advisable to brush up your knowledge on naming conventions. For example, many surnames change based on gender after marriage. In Russia, for example, Mr. Gubin’s wife would be called Mrs. Gubina. Referring to her as Mrs. Gubin is considered to be a serious faux pas.

Examples like this would make you think that it’s better to stay back in India where Mr. Pradhan’s wife would be just Ms. Pradhan and not Mrs. Pradhana. But since that’s hardly an option if you want your career graph to rise rapidly, rush to the next business etiquette training course.

shyamal.majumdar@bsmail.in

Business Standard 13.12.2007

India's newest exports- leaders

India was once upon a time the hunting ground for cheap labour, hoards of whom alighted on distant shores in search of a better lifestyle for themselves and their children. Now in the news are, one after another, global leaders of Indian origin- in business or otherwise.

Citi group announced last week its new global CEO. Vikram Pandit, a Maharashtrian, left India at the age of 16 to join Columbia University. An engineer, he completed his Ph.d in Finance. Earlier he was COO of Morgan Stanley. He now heads what is a predominant Indian presence in the Citi hierarchy.

In 2006 Indra Nooyi was named CEO of Pepsico. She is a grad from IIMC and worked in India for several years before she left for Yale and a hot shot career.

Here is an article which sums up whats been happening in the global leadership scene with Indians in some time now.

Basdeo Panday, a second generation Indian was Prime Minister of Trinidad and Tobago for 6 years till he was succeeded in 2001, and has remained leader of parliament for decades now. Mahendra Pal Chaudhary, was prime minister of Fiji but for a short one year before he was ousted in a coup.

The front runner in the US presidential elections Hillary Clinton's aide and right hand woman, Huma Abedin, has been in the news for some time now, lately for the wrong reasons. Read more about it here.

Fareed Zakaria is now the editor in chief of Newsweek International and one of the spokespersons India can count on. Of course Shashi Tharoor is another.

And nothing new to be said of the late Kalpana Chawla and Suneeta Willaims, or of the Manoj Shyamalan-s and the Vikram Seth-s.

Indians rock, or what!!!

A great beginning

Welcome all to our company blog. Its time we Spearhead Intersearchers became true netizens and along with our Orkutting and Facebooking, took time to blog some!!! Hoping we all share this space.