Dream > Believe > Pursue AICH INDRANIL 1 HUMAN RESOURCE CHALLENGES AND OPPERTUNITIES FOR STARTUP &MSME ORGANISATIONS KOLKATA CHAPTER CHAPTER Thursday, December 18, 2014 1
Jul 16, 2015
Dream > Believe > PursueAICH
INDRANIL 1
HUMAN RESOURCE CHALLENGES AND OPPERTUNITIES FOR STARTUP &MSME ORGANISATIONS
KOLKATA CHAPTER CHAPTER
Thursday, December 18, 2014
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DREAM>BELIEVE>PURSUE
MODULES OF THE PRESENTATION
• Entrepreneurs – Definition , types, classification ,triggers and traits • Entrepreneurship – Human resource the key to success • Key challenges and possible measures of mitigation • Startups - The initial human resource team crucible for growth an overview
– Team formation ,co founding ,advisors and retention• Recruitment - innovation ,route to reach ,social media ,employee branding • Training and development in start ups .• Retention and attrition in start ups • Concluding remarks
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ENTREPRENUERSHIP INVERNACULAR
Entreprenuership in Hindi
(pr. \\udyog upakram\\)[Noun]
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ENTREPRENUERSHIP• Entrepreneurship is like raising children; it starts with amoment of enthusiasm, followed by decades of hardwork” -Howard Stevenson
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ENTREPRENUER- DEFINED
Entrepreneur Webster’s - someone who runs a business his or her ownfinancial riskAn entrepreneur is a person who undertakes the creation of an enterprise orbusiness that has the chance of profit (or success).Some qualities of an entrepreneur
-Partnerships
-Robust network
-Realistic view
-Passion!
-Clear strategy
-Technology
-Ethical Behavior
-Flexibility
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ENTREPRENEURSHIP –TRIGGERING EVENTS
DownsizingM&ARelocationSemiretired / retiredPassion for an IdeaEnvironmentDeregulation / regulationDisruptive Events
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Career Change
MY TRIGGERS
Atmano mokshartham jagad hitaya cha,"For one's own salvation, and for thewelfare of the world".
JOY OF GIVING !
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MY TRIGGERS
BYOB - BE YOUR OWN BOSS !
EMPLOYMENT GENERATION !
CHALLENGES -PERSONAL ,PROFESSIONAL ,SOCIETAL
TO BE REMEMBERED AS A FOUNDER OF AN INSTITUTION
ENTREPRENUER GENERATION
LEARNING LIFE, LIFE LONG LEARNING !
BECTEL MODEL -PUBLICATION ONTHE WAY!
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ENTREPRENEURSHIP
Business is not a dirty word!
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WHAT SOLUTIONS DO WE HAVE TODAY IN INDIA ?
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Government jobs - minimal ,reservations!
Private sector - Economy driven, Revenue driven ,Recession driven
Academic profession - Water , water every where not a drop to drink!
Political will to create jobs - Policy paralysis!
Skill development- Negligible !
Only 9% of Chartered accountants passouts were placed this year!
ENTREPRENUERSHIP IS THEANSWER !
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MY INFERENCES
• Know more be more !
• Knowledge is power !
• Net work!
• Go kiss the world !
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CLASSIFICATION OF ENTREPRENEURS
Innovative Entrepreneur - He is the one who introduces anew product or a new method of production or opens a newmarket or explore new source of supply of raw material or carryout a new type oforganization.- STEVE JOBS
Initiative / Adoptive Entrepreneur - are those whoinitiate the successful entrepreneur in technique innovated byothers. - NIRMA
Drone Entrepreneur - are those who will never allow anychange in their production or style of functioning-.HINDUSTANMOTORS
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CLASSIFICATION OF ENTREPRENEURS
FABIAN Entrepreneur - are always on caution. They neither introduce norchanges nor adopt new methods invented by others. They are lazy andfollow old customs, old method of production - Typewriter industry,pagers .
Another classification
1) Natural Entrepreneur
2) Motivated Entreprenuer
3) Created Entrepreneur
4) Forced Entrepreneur
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ENTEPRENUERSHIPCHARACTERISTICS AND TRAITS
• Ability to deal with a series of tough issues
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Ability to create solutions and work to perfect them
Can handle many tasks simultaneously
Resiliency in the face of set-backs
Willingness to work hard and not expect easy
solutions
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Possess well-developed problem solving skills
Ability to learn and acquire the necessary skills for
the tasks at hand
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ENTEPRENUERSHIPCHARACTERISTICS AND TRAITS
Being an entrepreneur requires specific characteristioften achieved through education, hard work, and planning.
Risk TakerBusinesses face risk. Entrepreneurs minimize risk through research,planning, and skill development.
PerceptiveEntrepreneurs view problems as opportunities and challenges.
CuriousEntrepreneurs like to know how things work. They take the time andinitiative to pursue the unknown.
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ENTEPRENUERSHIP CHARACTERISTICSAND TRAITS
Self-confidentEntrepreneurs believe in themselves. Their self-confidence takes care ofany doubts they may have.
FlexibleEntrepreneurs must be flexible in order to adapt to changing trends,markets, technologies, rules, and economic environments.
IndependentAn entrepreneur’s desire for control and the ability to make decisionsoften makes it difficult for them to work in a controlled environment.
DEFERRED GRATIFICATION !
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STARTUPS - HUMAN RESOURCES - THE UMBILICAL CORD
Key challenges and opportunities Core founding team - foundation, qualification as founders, building pillars , cofounding advisory help, Retention Recruitment - Innovation , Routes to reach, ROI of recruiters ,Employee branding , Use of social media.Training and development -Retention and attrition -
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TEAM BULDING - A FOUR PRONGED PROCESS
• Building a strong foundation • Creating the strong pillars to build the next floors• Building the first model floor• Then just replicating as long as you grow.
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KEY FACTOR /CHALLENGE – FOUNDING TEAM
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INITIAL HUMAN RESOURCE - THE CRUCIBLE OF FORMATION OF THE STARTUP ORGANISATION
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Why a strong foundation?For maintaining an effective team you have to concentrate on foundations required for them. You must build or repair the foundation first if you are seeking to build an effective team. Stronger the foundation, higher the building will go. This stage needs lots of digging, too much patience and unbounded perseverance.
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INITIAL HUMAN RESOURCE - THE CRUCIBLE OF FORMATION OF THE STARTUP ORGANISATION
Who qualifies to be a founder member?Identify the three core skills needed for your business and get them in the team as much as possible. The members should have shared goals and similar values. Don’t mix personal and professional relationships in your business because friends and relative don’t always make a good team.
Key traits to look for - from our experience Intellectual honesty Emotional energy Animal instinct - in the right sense of the word !
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INITIAL HUMAN RESOURCE - THE CRUCIBLE OF FORMATION OF THE STARTUP ORGANISATION
Who builds the pillar and the first floor?This is the next core team, may be next 5-6 key people. This may include more functional experts (marketing, HR, technology, sales etc depending on your business). Hire them for passion and skills. New businesses are much about ownership, hardship and passion as much as about skills. Hire for attitude with shared goals and values, and train for business.
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INITIAL HUMAN RESOURCE - THE CRUCIBLE OF FORMATION OF THE STARTUP ORGANISATION
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Who builds the floor?This is the growth stage where your business is working. You know what to sell, to whom you sell and where you want to go. Here skills are more important as you know what you are looking for. Passion, common goals and shared values are important too but to a lesser extent now
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INITIAL HUMAN RESOURCE - THE CRUCIBLE OF FORMATION OF THE STARTUP ORGANISATION - COFOUNDING OF THE TEAM
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How do I find co-founders?The key to find a co-founder is networking: network, network and network some more. Make an effective impression: talk about your business with passion. Apply your checklist to all prospective co-founders: core skills, shared values and common goals. Come clean on every discussion point as you spend more time with your co-founders than your better half.Be ready for divorce before marriage !EX COLLEAGUES CHAMPIONS WITH LOCATIONAL OBLIGATIONS RETIRED BUT NOT TIRED
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INITIAL HUMAN RESOURCE - THE CRUCIBLE OF FORMATION OF THE STARTUP ORGANISATION
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How do I deal with stock options?Ideally co-founders should own common stocks. It’s a good practice to have vesting for founders too, it keeps you accountable. The options should be decided based on your plans for next three years. You will always need more senior people than your plan says. The core team should be given healthy dose of options, nothing like ownership. 20% is always a good number to keep as options pool. Give options but only once you have explained the value.
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INITIAL HUMAN RESOURCE - THE CRUCIBLE OF FORMATION OF THE STARTUP ORGANISATION
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How does Board of Advisors add value?It is an interesting approach to add skills to the team. Look for the key skills missing in the team; it could be networking, bouncing of ideas, reality check or anything else. Do good reference checks and look for relevant advisors.
- Retired domain specialists - Freelancers - Professionals on sabbatical - Chartered accountants and company secretaries
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INITIAL HUMAN RESOURCE - THE CRUCIBLE OF FORMATION OF THE STARTUP ORGANISATION
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Some must do’s as you growYou must personally meet and interview every person you want to hire till your first floor is complete. Keep in mind that first set of team members join because of you not for the business.Communicate, communicate and communicate some more, it is never enough. Try to answer all the tough questions yourself. Behave like a foundation and support everyone. In reality, great people organizations are in inverted pyramid style.The inverted pyramid is a metaphor for a reversal of traditional management practices. Employees who are closest to clients or production processes are placed at the top and managers at the bottom. The employee is empowered with greater decision-making authority and freedom of action. The manager becomes a facilitator spearheading a team effort. In theory, overall organizational performance becomes faster, more adaptable and more effective.
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Some don’ts as you growNever ever strive to fake values, it just doesn’t work. Don’t try and hide behind system and processes. Early stage companies need more personal touch than process for people. Your core message can be same but words need not be for different teams.
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CHALLENGES AND PITFALLS OF START UP FOUNDING TEAMS
Getting Lost amongst the new talent acquired and their capability Developing complacency Missing out on skill development due to high commitment to growth Deferred gratification - getting used to it! Big fish in a small pond to a big fish in a big pond transition !
Transform them to intrapreneurs !Give them opportunities to be a part of the industry through representation on the in various forums Role swapping and swapping of profile .
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STARTUP HUMAN RESOURCE RECRUITMENT – A PARADIGM SHIFT
STARTUPS NOW ARE IN THING IN CAMPUSES !
Flipkart.com hires171 IIT grads in day zero 2013 DECEMBER !
KEY FACTORS /CHALLENGE RECRUITMENT
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STARTUP HUMAN RESOURCE RECRUITMENT- - STRATEGY
• Innovation in recruitment • Routes to reach the right resource • Employee branding • ROI of recruiters • Use of social media .
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STARTUP HUMAN RESOURCE RECRUITMENT- - ROUTES TO REACH THE TALENT
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Employee referrals Most prevalent in MSME’s in India Internal job postings - Prevalent in slightly older startups Social networking on websites such as LinkedIn Job portals- domain specialistsCampus Recruitments- huge rush in India.Hiring through Placement ConsultantsHiring teams instead of an individualTargeting public-sector employees, ex-servicemenPartnering with educational and training institutesParticipation in Job fairsPre-placement offers (PPOs)
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STARTUP HUMAN RESOURCE RECRUITMENT- -INNOVATION IN RECRUITMENT
BRINGING IN EXTERNAL CONSULTANTS FOR HIRING PHYSICALLY CHALLENGED SKILLED PEOPLE .EX SERVICEMEN IN ENGINEERING AND ADMINISTRATION.INCLUSION OF EXTERNAL HR MANAGERS IN INTERVIEWS .
More stress on - innovativeness - conceptual understanding - more stress on mobility ,outlook and innovative outlook
towards work - matching of the core skills - multiskilling and multi disciplinary skills (engineering
plus management )
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STARTUP HUMAN RESOURCE RECRUITMENT- EMPLOYEE BRANDING
The entrepreneur is normally the brand who people look up to and join instead of the company Employees working in the start up can be good referrals Employees from campuses could be used to revisit the campus once again to talk about the company .Star performers can be showcased for culture and other growth stories of the organization .EVP - Employee value proposition and return on investment demarcated is clearly worked out .
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STARTUP HUMAN RESOURCE RECRUITMENT- ROI OF RECRUITERS
A very important indicator of the validity of the recruitment made .In Msme’s the is directly proportional to the turnover since backend and support services are important . A Ratio of 1:10 - compensation to gross revenue generated - normally MSME’S turnover is low . For manufacturing sector 1 : 20 ratio .Service sector – 1:5 ratio and manufacturing 1:10 ratio minimum benchmark .
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STARTUP HUMAN RESOURCE RECRUITMENT- USE OF SOCIAL MEDIA
6.1 billion people have access to Facebook .Twitter ,linkedin and other social media .Below 25 years of age social media is a powerful tool to associate .Every startup should have a webpage and a page in Facebook.Need to have a presence in social media both employees and employers
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KEY FACTORS /CHALLENGE –TRAINING AND DEVELOPMENT
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STARTUP HUMAN RESOURCE - TRAINING AND DEVELOPMENT
Training and development not a need a necessity .Structured training ,unstructured training and on the job training. Career development programs – From day one Using government help in training and development .Training and development as a retention tool for startups .
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STARTUP HUMAN RESOURCE TRAINING AND DEVELOPMENT -A NECESSITY
In startups there are huge skill gap including the entrepreneur.Skills gaps in domain and non domain areasSoft skills a huge area of improvement Gaps affect the turnover of the company since team is small.In house training by entrepreneur and his core team Ten man days per six months time would be an ideal investment in training Measurement of effectiveness to be measured on work and effectiveness on training .
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STARTUP HUMAN RESOURCE TRAINING AND DEVELOPMENT -TRAINING PROGRAMMES
Structured training programmes are costly needs to be used alike aftershave . A proper identification process of training needs identification is required .Unstructured training programs - impromptu training most commonly practiced in MSME ‘sOn job training programme – most effective in MSME sector but needs to be measured and mentored .
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STARTUP HUMAN RESOURCE TRAINING AND DEVELOPMENT -CAREER DEVELOPMENT PROGRAMS
Human resources career development plan – MBTI Tests ,EQ Test Brain mapping , 360 Feedback uncommon but needed .Career development plan at least for next three years a broad outlook of career path . Expectation to achievement measurement
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STARTUP HUMAN RESOURCE TRAINING AND DEVELOPMENT -GOVERNMENT HELP
ITI SUPPORT PROGRAMME BOARD OF PRACTICAL TRAINING PROGRAM CII INDUSTRY ACEDEMIA PARTNERSHIP INITIATIVES – SKILL GURUKULESI HOLIDAY FOR EMPLOYERS FOR THREE YEARS PAN IIT INITIATIVES
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STARTUP HUMAN RESOURCE TRAINING AND DEVELOPMENT -A RETENTION TOOL
Startups a great place for learning Flipkart punchline - PPT – Come build the company !Multi skilling an advantage to employees of startups – a natural offering of MSME’s High rate of learning in a short span of time !High rate of growth with the growth of the organization !
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KEY FACTORS /CHALLENGE-RETENTION AND ATTRITION
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STARTUP HUMAN RESOURCE - RETENTION AND ATTRITION
Average attrition rate in startups in India 8 –47 percent!- TMI GROUP Survey in December 2013 Major causes - Lack of employment branding !
- Lack of career development - Succession planning of employees!- Lack of personal touch ! 25% percent of entrepreneurs
time to be invested in people
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STARTUP HUMAN RESOURCE - RETENTION AND ATTRITION-EMPLOYMENT BRANDING
Startups organization branding- great place to work Startups employee branding - great place to grow
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STARTUP HUMAN RESOURCE - RETENTION AND ATTRITION –LACK OF CAREER DEVELOPMENT
Launch of career development programmesMBTI ,360 degree , Leadership strengths assessment Peer feedback Career development programmes for each employee from day one atleast three year growth plan .
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STARTUP HUMAN RESOURCE - RETENTION AND ATTRITION-SUCCESSION PLANNING
Job rotation a very important aspect to derisk the business If you want peace be ready for war Three tier fall back plan in case of attrition Ex employees club/informal get togethers’ a great help!
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STARTUP HUMAN RESOURCE - RETENTION AND ATTRITION –PERSONAL TOUCH
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STARTUP HUMAN RESOURCE - RETENTION AND ATTRITION - PERSONAL TOUCH
DREAM>BELIEVE>PURSUE 2
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Oskar Schindler: I could have got more out. I could have got more. I don't know. If I'd just... I could have got more.Itzhak Stern: Oskar, there are eleven hundred people who are alive because of you. Look at them.Oskar Schindler: If I'd made more money... I threw away so much money. You have no idea. If I'd just...Itzhak Stern: There will be generations because of what you did.Oskar Schindler: I didn't do enough!Itzhak Stern: You did so much.[Schindler looks at his car]Oskar Schindler: This car. Goeth would have bought this car. Why did I keep the car? Ten people right there. Ten people. Ten more people.[removing Nazi pin from lapel]Oskar Schindler: This pin. Two people. This is gold. Two more people. He would have given me two for it, at least one. One more person. A person, Stern. For this.[sobbing]Oskar Schindler: I could have gotten one more person... and I didn't! And I... I didn't!
Dialogues from Schindler’s list – Schindler dialogue before going into hiding at the falls of Nazi’s
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CONCLUDING REMARKS
Spent 25 % of your time on people Accountability and delegation of power to core team Change should be the only thing constant Strong fall back and emergency manpower plan with strong vigil Training and development Personal touch .
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DREAMS CAN NEVER BECOME A REALITY WITHOUT HARD
WORK.
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WE VALUE EVERYTHING UNDER THE SUN 10/14/2013 44
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AICH APPRAISERSAUCTIONERS AND VALUERSWe value every thing under the sun
EMPANELMENTS
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AICH APPRAISERSAUCTIONERS AND VALUERSWe value every thing under the sun
•EMPANELMENTS
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•200% Year on year Growthbothbottomline and topline
•Strong credit rating•Qualtrics Rated top 3 in India in Valuation
Services•Finalist forAIMA -Dr J.S Juneja Award for
Innovation and creativity for MSMEenterprises for 2012 -2013 and ICICI -
CNBC India Emerging India Awards 2013
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• KATAICH INFRACORE ENGINEERING PVT. LTD.•Started with Changling construction machinery distribution and Nawa
crushers•Year on year growth 200%
•Revenue of ½ million USD in 2011-2012•Shantui heavy machinery dealership
•Spare parts supplier company•Started as the flagship company and diversified
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AICH MINING RESOURCES PVT. LTD.Opencast & Underground Mining of ferrous & non ferrous metal & non
metal mines concept to commisioning projects
•Opencast & Underground Equipment Selection, installation
•Concept to commissioning Technical Consulting & Mining Consulting
•Coal Washers Consulting
•CHF Concept to Concept to commissioning projects
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•
AICH MINING RESOURCES PVT. LTD.Opencast & Underground Mining of ferrous & non ferrous metal & non
metal mines concept to commisioning projects
•Opencast & Underground Equipment Selection, installation
•Concept to commissioning Technical Consulting & Mining Consulting
•Coal Washers Consulting
•CHF Concept to Concept to commissioning projects
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A BREIF PROFILE OF INDRANILAICH F ABOUT INDRANIL AICH
Chequered career of 19+ years in the industry out of which 14 yearsin multinationals of repute
Worked in Titagarh Wagons Ltd GoIndustry - Dovebid (FormerlyHenry Butcher) ,UT Limited (JV between Usha Group and
Telehoist of U.K.) Ingersoll Rand India Ltd,TIL (Tractors IndiaLimited) -Jayashree Textiles, Indian Rayon Group -Rishra.
Award winning Production engineer with MBA from IIFT kolkata .
Publications and teaching assignments in several institutions ofrepute .
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A BRIEF ABOUT INDRANIL AICH
PROFESSIONAL MEMBERSHIPSInternational Memberships
Honorary Life member of Royal Institute of Chartered Surveyors (RICS),London.
Life member American Society of Mechnical Engineers USALife member of the Mining ,geological and metallurgical Society of India .Life Member of Operational Society of India, Quality Circle Forum of India,
Systems Dynamics Society of IndiaLife Member of Institution of Engineers (Membership No.M-132302-9) and
Chartered Engineer from Institution of Engineers (AM 092132-5).Approved valuer (Registration No.18328) Category - Production & Industrial
Engineering and Fellow and Life Member of Institution of Valuers.Member of Indian Council of Arbitration, New Delhi an organization of FICCI
and Ministry of Commerce.Member of Practicing Valuers Association of India
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A BRIEF ABOUT INDRANIL AICH
A BRIEF ABOUT INDRANIL AICHINDUSTRY CHAMBER MEMBERSHIPSMember of Confederation of India Industry Eastern RegionMember of MSME National council CIIMember of West bengal state councilMember of the economic affairs ,taxation and finance subcommitteeMember of the Safety subcommitteeMember of the MSME subcommittee
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You can reach me @
[email protected]@outlook.comMobile +919831088204/+919038088204
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QUESTIONS AND ANSWERS SESSION
10/14/2013DREAM>BELIEVE>PURSUE 2
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