The performance appraisal specially becomes a huge challenge in case of matrix organizations where the responsibilities, managers and expectations keep on changing. Though the basic fundamentals of appraisal techniques like Straight Ranking, Critical Incident, MBO, 360 degree and Interview etc. all hold good, what becomes a challenge is the implementation. Once the appraisal technique is applied the process of fitting the appraisee in normal curve or straight ranking or any other performance measure is where the large amounts of subjectivity is introduced which largely depends upon the relationship between the appraisee and appraiser.

In a matrix organization there are two schools of thoughts on managing the appraisee-appraiser relationship

1-      Direct Relationship- This is where an Appraisee – Appraiser direct interact with each other for the work. Essentially the appraisee generally assigned to the project being led by the appraiser. The primary benefit in this model is that the direct oversight and experience of the work is considered in the performance evaluation. This model also directly links the performance appraisal and thus the rewards & recognition directly with the current line of work making the matrix stronger. On the other hand the model of direct relationship has some serious pitfalls; since in the case of matrix organizations where the direct relationship is transient there are often cases where the appraiser changes leading to change in work style, expectations and relationship. Also this change in appraiser brings in the subjectivity or self interests from the point of view of contribution to the current work instead of work done in the past.

2-      Indirect Relationship – This is where an Appraisee- Appraiser are not supposed to directly work with each other. The appraiser is an independent evaluator who has not worked with either of the people he is evaluating and relies on the feedback mechanism from the direct managers of the matrix regarding the appraisee. The primary benefit of this kind of method is that all the people being evaluated are placed on an equal footing thus penalizing or ignoring due to subjectivity and transition is rare in this kind of scenario. This ensures that all the evaluation is fair and projects a accurate picture of organizational performance. Also since the evaluator remains same over the period of time, this allows a uniform set of expectation and development direction. The major drawback of this model lies in the fact that there needs to be an excellent feedback mechanism and the structure is easily prone to pitfalls of power matrix in organization.

Though both of the techniques are relevant and come in with their own set of advantages, I particularly feel that the right solution lies in a system which is a mix of two. As the subjects of evaluation move up the hierarchy pyramid of the organization shifts to weaker matrix the evaluation style should be a direct relationship on the other hand when subject lie in the stronger matrix of the pyramid the evaluation method should be indirect relationship.

My reasons why I support this kind of structure are

• Consistency in the type of expectations and feedback can be used the performance evaluation to be mapped to the organizational objectives
• At the lower side of the pyramid the motivation is generated from the fact that employee has a voice in the system apart from his direct report
• Establish a personal connect in the lower side of the pyramid where the transitional nature of work lowers the emotional connect with the organization
• Since the personal dynamics of work place is not involved, the appraisal system at the ground level is seen fairer. On the other hand where the roles are not transitory in nature and personal rapport becomes a factor of performance the evaluation keeps a track of it.
• This kind of a structure is easier and faster to realign, while accommodating tactical and strategic changes in the organization direction and performance
• Closer and direct involvement with the current work at a higher level creating a stronger performance culture which gets driven down but doesn’t gets negated due to transitional nature of work.

So what do you think is the best method for a practical implementation of performance evaluation and appraisal in matrix organization?

I have always believed that sports are a perfect ground for displaying the leadership and a lot can be learned from the leaders and their actions in the field. The winning speech by MSD had some very valuable lessons for leadership. After listening to his speech my respect for him as a leader grew multi folds, given such an emotional moment and short time frame he effectively communicated his vision and journey. You can listen to his speech embedded below after which I present my five key lessons of leadership from the great captain.

1- Deliver- I think that is the most important aspect of a great leader. Before any leader can become great he needs to deliver the goals which were decided for him or by him. The results in present world are the most important parameter for a leader.

2- In Contingency Lead from Front- The way he decided to come at number four when two wickets of Sachin Tendulkar and Virendra Sehwag had fallen shows a very positive trait. The situation was a contingency situation and his decision to come higher in the order and lead things from the front is what gives a lot of confidence to the team mates who might already be under pressure or under fire due to the situations and constraints beyond their control.

3- Exposure for Juniors- As he said in his speech that Dhoni himself was coming down the order to ensure the new or younger players can play up the order relatively free of pressure while he would field the crunch and the pressure. Despite affecting his personal performance his priority was providing exposure to juniors.

4- Take Calculated Risks-He took the risks of choosing players like Sreesanth in the final who hadn’t played a single match in the tournament. The decision was a risky one and he was well aware of it as he stated in his speech but he still took the risk and accounted for if it might have gone wrong.

5- Communicate- As he spoke that the decision like him moving up the line up was not only discussed with his mentor but also the senior members of the team. The communication within the team makes for a very important trait and also plays a crucial part in the uniting the team which is true quality of the leader.

So these were my five leadership lessons from the Captain of the Indian Cricket Team, do you find any other lessons from him?

Firstly the Piracy industry in India brought an absolute change in the Music & Entertainment industry. Calling it a perfect example of marketing myopia would be stretching it too far but then it would be close. It is interesting to observe how this particular Piracy Industry had far fetched effects on the Pop Albums, Old Age Cinema and Music as a whole. On a direct competition Piracy industry almost ruined the music sellers (the companies selling tapes and CDs like Sony, Venus, Tips, T Series, HMV etc.), though the concept of MP3 is not Indian but the credit of taking it to the masses goes to Napster in US and the Piracy industry in India. I don’t think the authentic or original Music industry has been able to tap even the tip of the 1.1 billion individual market of India.

Coming to the indirect effects of the Piracy industry, pop music industry has almost gone out of bread & butter. The industry which was a rage in years 1997-2000, when almost everyone including Tom, Dick & Harry seem to have released a pop album. The fact that the pop music industry depended on the sales of the CDs and tapes for their revenue and profits, it took a minuscule amount of time for the Pirates to release the albums on the pirated CD along with 100 other songs. So the erstwhile Pop Albums have lost their way and you don’t see too many of them too often these days, interestingly the killing of pop albums also generated a new genre of entertainment in India, The Reality Shows. It would be unfair to say that the concept was born at this time, Sa Re Ga Ma & Meri Awaz Suno are old singing based reality shows. But the decline of pop music industry brought a huge wave of talent to the television reality show and today almost every channel national or regional has a singing, dancing based reality show.

Now coming to the other quality of the Piracy industry which I find admirable; and also relates to my area of expertise supply Chain. If you would check most of the pirated discs available in India the source would be tagged as a website. What amazes me about this industry is the agility in the entire supply chain; the moment a major movie’s music gets released the next day or the day after you would be able to buy the MP3 for that movie from the street side vendor.

I admit that I have not been able to have a direct visit or first experience of this supply chain. But from the information available about the market, the creation of a CD/DVD has to be a central activity with may be regional hubs, as the high speed recording instruments are the most expensive and bottleneck parts of the supply chain. Imagine what all activities would have happened during this time.

Procurement of the blank CDs and Polyurethane covers (I believe they would be keeping a stock inventory)

Planning what titles to be a part of what compilations (this when they don’t have any official control or information on release dates)

Printing of Labels which would display all the movies which are the part of the compilation

Actual Burning of the CDs.

Packaging the labels, burnt CDs into the Zip Lock Polyurethane bags.

Distributing the CDs throughout the chain, to the last link of the retail vendor which sells it to the customer on the street.

Almost all of this activity generally happens in a little span of time after the music release, and I have never seen a blackout when asked for a new song’s MP3, it is easily available and at all points of time. To add the flavor, this whole operation is supposedly under cover with utmost secrecy.

If you look at the coverage of the distribution network, I really think these pirated CD folks are close to HLL and P&G of the world. One can travel to the length and breadth of the country and the pirated discs of all kinds are available by the highway sides, in the small towns and villages. Interestingly this efficient and robust distribution system is officially unorganized. There are no ERPs & IT for the good’s tracking, no high flying MRP & demand planning systems for forecasting. The disruptions like police raids etc are far more frequent and far more disruptive as what a normal manufacturing or distribution firm would face. The efficiency of the entire value chain despite the odds against it is simply commendable.

Do you think the highly sophisticated distribution & manufacturing systems have a thing or two to learn from this Piracy Industry, especially from a process perspective?

Disclaimer: I do not support any kind of Piracy, this post is written with an objective to identify the positives and best practices followed in a business which is not legal by nature.

Firstly we need to understand the constituents of what kind of careers are available in ERP Industry. The ERP space provides 3 basic streams of careers Technical, Functional and Administrative. Now the three seem to be mutually exclusive but they are not. Generally the expectation of the employer and the clients are the person would be an expert in one of the fields while an exposure to the rest of the two.

So when you are aspiring for a Functional ERP role one should never let go his hands of the technical side of ERP. However, coming back to what a person, with no background in ERP, can do to make a career in ERP. The basic concept of ERP is being a transactional system which automate the transactional processes in an organization.

There are various business processes that need to be studied like Order to Invoice, Procure to Pay, Forecast to Produce, Accounting & Taxation all these processes vary from industry to industry, country to country, company to company and and even sometimes a unit to unit in the same company. So what you need to do is understand the basic concepts behind these processes, the laws or guidelines governing them.
For example if you are setting up the processes for any unit in Uttaranchal India as of now for selling your produce in India your excise tax would be waived off because of the tax holiday, while anywhere else where this tax holiday is not declared the same tax would apply.

So one needs to understand and research the information on what are the business processes and the key differentiators between different entities. This knowledge would come from the basic textbooks on particular subjects like Accounts, Supply Chain Management etc. Also an information or research on the particular process are of interests, there are lot of journals and papers one can read, some of which I read on SCM are Supply Chain Brain & Supply Chain Digest and papers published by Gartner, AMR Research etc.

Also we can pick up the documentation of either SAP or Oracle or any other ERP which we have an inclination for and read the specific documentation based on the area of interests. The fact is that it is very difficult, almost impossible to understand the user guides and documentation without ever having looked at the actual software screens. But I would still advice the aspirants to go over the documentation as this would help them understand the capabilities of the ERP systems. The truth is the ERP systems have become so vast and encompassing that knowing how to do everything is an impossible task, what works in the industry better is the consultants knowing what is possible to achieve and what is not. There is always time to delve in how to achieve what is possible while you are actually implementing a solution.

Apart from all this there are training institutes some of which are really good, but personally I have never been a part of anyone of them. From my experience in the industry the certifications from the ERP Vendors themselves i.e. Oracle University Certifications, SAP Certifications hold a good value while seeking employment but then they come at an expensive price tag for an individual. I personally do not trust the small shop training institutes. Also I have came across some people having a demo version of the ERP software installed on personal machines which can be used for learning purposes and hands on by individuals themselves, but then again I am not sure on the legality of the same.

And at the end one of the most important things to kick start a career in ERP, it is good to start with one of the consulting/services firms instead of end users of ERP, this provides you a cross industry experience with multiple set of processes which is very important for solution designs in future. Also Prefer the ones which have a larger practice in ERP which would help you work with people who are already good at ERP and learn from them at work and a training program in place.

Recently the pioneer of the Coffee Concepts in India, The Café Coffee Day chain of stores is receiving a lot of fire on social media on one of their policy on what music should be played in the café. People of a linguistic segment are roping that the café should play the music in their languages in the café operating in their linguistic areas. This issue being particularly sensitive one given the kind of politicizing happens within the country over the language. Before I share my views upon the issue, I would like to mention some of my close encounters regarding this issue from the other side.

I am a regular customer at the café I frequent, and am a steady source of the revenue for the folks there. My bonds with my café have always been strong, right from the store manager & the stewards love me for I understand the business and the ordeal they have to go during a day at work.

There are two instances, during 2006-07 Barista had a tie up with the World Space radio and had mandated that only the songs from a particular station in World Space can be played in their stores. In reality the station was really bad and since it was a corporate mandate they had to play the songs, so we had to ask them to reduce the volume to as low as possible.

Another instance, A premium coffee chain (would not like to name it, as I don’t want the staff to get into the trouble) outlet in Pune, used to oblige the regular customers by playing their songs towards the end of the day based on whatever music we had. I actually used to carry my CDs and Ipod to connect to the café music while I had coffee. One day similarly another customer came in and he was not happy about the music being played in the café and wanted a change. The café guys immediately changed the music.

So coming back to the problem being faced by the CCD folks, we need to get back to why there is music in the café stores and the kind of music should be played is actually a marketing decision on demographics & target audience.



Image Source: Google Images

Dealing into the question what purposes does the music serves in a café, I would list the following-

1- Creating a lively & positive ambience in the store
2- Creating ample amount of noise so that the conversations remain private
3- When the footfalls are low the café should not appear dead and eerie

Now coming to the second part of the question, what kind of demographics & target audience these café cater to-

1- Majority of Café business comes from the Young Urban Professionals group. Who often use
2- Another hot segment adding footfalls is the Student groups who need a place to hang-out
3- The third segment being the regional demographic in and around the store area.

Now if we look the above first 2 categories are migratory in nature, change cities, jobs and often constitute of a crowd that in common language is often addressed as the Cosmo crowd. Profiling of these audiences on a regional & linguistic basis would be a bad strategy because they are always in flux and the structure and constituents continuously keep on changing.

So what a coffee store can aim at is creating a standard profiling based on what might be the most common and inclusive tastes of the audience from food to the music and try and create a uniform ambience across the stores. Once a customer gets habitual with the store and the brand, the best strategy for a chain like CCD would be to leverage the customer base & loyalty by providing a uniform experience to the customer across stores. Which is why what CCD is doing right now is correct.

Now to look at the effects of the region based profiling; which is being demanded of the CCD folks by their very own customer. Assume a scenario, similar to my second example above, two customers in the store insisting the music to be of their type. Now the ground level operational staff would be in a soup, even if the sharpest of guys are operating on the ground level, they just might end up offending one of the customers and might lose them. It is a strategic decision not to entertain or cater to a particular customer set but then the operational staff cannot be trusted to make those choices.

Also looking at an additional aspect of the problem this might also be something similar to the example which I mentioned above. The issue might be of a dislike of the music of a particular kind and for some reasons is appearing as a political and a linguistic side of it. This can be a great opportunity for the CCD folks to look back at their market research and open up a survey amongst their target audience visiting their café and the others to identify if there is a serious gap in the kind of music they are playing and the kind of music is being expected by the customers. And then enforce the standardized music all across the stores. In case the issue turns more political, then a valid option for them might be to ditch all the languages and go for universal constants like Music or English to maintain and address their needs.

Currently Price of Crude Oil is – USD 73 / Barrel

1 Oil Barrel = 158.9873L

Assuming the Going rate of USD – 46.79

1L of Oil when converted to Indian Price should be – INR 21.48392 /L

Now even If I assume a 100% of markup for transport, refining and distribution the oil should not be more than INR 43/L

Unfortunately I pay around INR 58.09/L so approximately 270% of the cost of the oil.

That too when the Oil marketing companies and refineries for the most part have been PSUs and been operating out of the tax payers aid. I would seriously like to know why as a consumer I should be taxed so high for the petrol which is a primary commodity for my commute?

No wonder I support the Bandh

However, the focus of the coffee chains has been to extend reach and presence by opening the new stores at very fast pace, especially by Café Coffee Day & Barista primarily grew in this fashion. This has been a replica of what exactly was the growth mode by Starbucks in North America, with more than 30,000 stores opened in the growth frenzy the market didn’t seem to flourish as much as per expectations. We all the know the woes of Starbucks from then and it’s decision to close the non profitable stores.

I don’t deny that Indian markets appetite for the coffee stores, is huge and the market still has a lot of untapped potential in the tier 2 cities and also the metros. However, there is one aspect of the business that has been neglected by almost all the coffee chains, that is customer retention, brand loyalty and customer association.

Almost none of the coffee chains have a proper India website (except for Café Coffee Day and Barista (which recently created the site)) and loyalty programs in place. I remember the old tagline which was used to marked on the interiors of the Barista I used to frequent “It’s easier to change one’s religion than changing one’s café.” And I quite agree to this part that changing your coffee and acquiring the taste for a new coffee is not very easy. But in the end coffee is a commodity item and most of the café customers are not brew sensitive in India might make it redundant in the loyalty context.

The fact that the café chains acting in middle income group segments and above and it also entertains a huge amount of customers which are mobile, travelers and the so called young urban professionals. It produces all the more case for them to strengthen your ties with a customer, go a step and reward him for his loyalty with your brand. With technology moving towards mobile applications and GPS based applications it’s a strong case for them to put use to it and develop sites and application which would ensure the customers would know where is their nearest favorite café where they can spend some time and have coffee.

With the pace the new entrants are coming into this market and increasing competition, that one cup of coffee that your loyal customer had at your competitors’ might cost you the customer in longer term. All this just because he didn’t knew that you had a store operating right there in the next lane.

My views about this particular idea can be addressed as bullet points.

• The placement of the banner is brilliant. The office is at the main road while going to the major IT Park in Bangalore, and there is always a slow traffic around the office gate hence it directly positioned for eye-catching of the target audience. I mean you can’t get better in addressing a specific audience through a mass media like it.
• It communicates two things, One the age of recession is over, the outlook of the company towards new deals is positive as it is looking for growth. Secondly that the hiring in this particular company has started.
• The idea is innovative and cost effective, I mean the only cost incurred would be in creating the banner which should not be more than USD 20. Far more cheaper than any newspaper advertisement, hiring agency or staffic organization.
• The only drawback regarding the idea is the contact point. The contact point is going inside the company and meeting the HR, which by all means would not work until the person in unemployed. Specially when the job description, level, and skill of hiring are not defined. It would have been a better of strategy to punch in an email id to send in a resume. I believe that relatively far more number of people will find e-mailing more comfortable and the HR department also gets to consider the kind and level of people it wants to engage with for further discussions.

Everything said and done I still love the simple yet effective way of reaching out to potential employees. And also the idea that the dark days of recession are fading away. So what do you think about this new age hiring announcements, would you walk-in?

Always make sure that you have read the exit policy of your company. If it is not available publicly with other policies, contact the HR to obtain a copy. Refer to colleagues who have already left, beg borrow, steal but make sure you know the fine prints of the policy.




Always ask for the designation in job hierarchy and payment hierarchy from the lowest to the top level. Designations and their associated roles and responsibility vary with organization. So the designation which sounds so fancy to you might not even as satisfying as your current role in reality.




Insist for a printed offer letter with complete offer details and associated policies instead of plain emails stating the compensation break-up, designation and joining date.




Always inquire about the probation period and the relevant norms about the probation period categorically with HR.




If you need to relocate, the relocation expense and the policy should be confirmed before acceptance of the offer letter.




Never react to an offer immediately, always take some time to think and then react. If you like or dislike an offer conveying the sentiments on the face or on the call is a bad idea. Always ask for a day to respond so the decision is rational instead of impulsive.




Start the knowledge transfer procedure and if required creation of knowledge transfer documents to ensure this does not becomes a bottleneck for the release.




Always go through the PF, Gratuity and SA related procedures in your previous organization before leaving and identify the same in the new organization post joining. Ensure requisites for the tax declarations while filing returns are all available or scheduled in order.




Make sure you carry the copy of salary slips, offer letters, PF statements, promotion, compensation and bonus letters with the relieving letters while leaving your current organization.




Always create a backup of important mails (personal/professional) which do not compromise your confidentiality agreement with your current employer either in print or in soft copies.

This is just an indicative list based on my personal experience; feel free to add more tips in the comment section.

Briefly summarizing the happenings, Tiger Woods is the most successful golfer in the history and one is the highest paid professional athlete through winnings and endorsements.

Highlights of his professional golfing career are something that would make anybody proud, when they were all blemished by the reports of his numerous (last count I read somewhere was 11) extra-marital affairs. And now Tiger Woods is on a break from his professional Golfing career to salvage his strained marriage.

Coming back to the business side of it, Tiger Woods was endorsing premium brands like Gillette, Accenture, and Nike. After the infidelity fiasco broke loose, Gillette and Accenture have cut off Tiger Woods from their sponsorships and advertising. However, Nike has gone the other way, deciding to support Tiger Woods.

The reason to fire Tiger was very obvious and the unethical side of Tiger actually doesn’t put up a good show for any brand he endorses, but then why is it that Nike chose to stand differently from the rest. What I see through is a deeply thought out strategy and a long term vision and understanding of the business.

To share my understanding of the situation, I would say the Accenture has actually gone and disowned the once loved Brand Ambassador which makes a lot of sense for them.

One because they have enough ghosts from the times of Arthur Andresen to haunt their branding strategy and add to it the woes of the one-time parent organization getting involved with Enron saga.

Secondly, in their line of business ethics and values are of critical importance and can be deal breaking if they have chance of being compromised. So when the kind of breach occurs at any level it was the smartest thing to be done by the Accenture people to get the tiger out as quickly they got in.

Though asking all their employees not wear the Tiger branded merchandise was a step to ridiculous or too far but for them it’s a time to retrospect and judge was it a good strategy to be so hand in glove with the brand ambassador that his actions might put the brand at risk?

However, Nike is a different ball game all together. The bread and butter of Nike is and has been sports, one thing that Nike can’t live without but an Accenture can is endorsements by the sportsman.

Given the fact that an average endorsements career for a sportsman has a limited time at its peak, and generally the trend is companies like Nike thrive on identifying great sporting talent earlier in their career offering them a long term contract with a high value in present.

This is based on hedging on the fact that they would have got an economical deal when the player makes it big with a fan following. In cases like this a sportsman starting to taste success prefer the companies who would have an emotional side and would see you through thick and thin, who would stay with you on the lean side of career, troubles, and injuries.

With Tiger, Nike has projected the image that it does stands by, when the player is alienated by his own fans, brands he endorsed, even his family it was Nike which stood by him. I am sure this is a positive thing done by Nike appealing and targeting the emotional intelligence of the sportsmen.

Secondly the product line of Nike, is a lot more independent of the moral side of the endorser. I mean as a customer mindset, I don’t attribute Tiger’s infidelity and flings to Nike Shoes or Golf Clubs. I am not sure I would not be attributed as a womanizer because I use a Nike product. A reason for this is because of the strong synergies and overlap with the Nike products and Tiger Woods, the golfer is very high. However, contrary to that Accenture was focusing more on the Tiger as a person when it was using the branding as a strategy.

Also a point which would have been considered by Nike would be the offline branding which would remain existent, and would be difficult to dissociate from.

For example, almost all the advertisements of Accenture Tiger have been displaying the Nike Logo with apparels and Nike cannot stop him from wearing them and appearing in Public. So for Nike it is impossible to dissociate themselves from Tiger. Also, with so much outrage and media attention around Tiger going off the professional golf, it is expected media would lap up with similar attention and outrage when he comes back and given the situations currently at that point Nike would be the only hotshot brand he would be endorsing. So Nike might hold all campaigns around tiger and cash it out at the opportune moment.

So, actually I would say this has been a judicious and a calculated risk taken by Nike to keep Tiger on Board, play their branding cautiously amidst sportsmen and if possible cash-out with the return of tigers in a futures brand value.  On a very lighter note, as people shared on twitter, Tiger perfectly lives up to “Just Do It” branding for Nike.

This post was featured in the Trak.in the India Business Blog here