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Rajiv Bajaj: Being original to succeed
Profile: Managing Director, Bajaj Auto
Age: 45
Why He Won: For spearheading Bajaj Auto's strategic shift from scooters to motorcycles. And for forging an entry into large markets in China and Africa.
I've often pondered over a critical question: Why do 90-95 per cent of all new products fail? This is a very fundamental issue because if the failure rate is so high, it clearly means there is something wrong with the tools with which we operate. For instance, would you go to a cardiac surgeon who has a reputation of 90 per cent failure? For me, there's only one conclusion: Our management tool kit is outdated.
For us, this wasn't just an academic discussion though. In 2008, we were in all kinds of trouble. We had a string of failures, with the XCD, Caliber and Wind. Yet on the face of it, we had done almost everything right. We did all the R&D right. We had done all the manufacturing right. Our costs were under control. We had at least one version of marketing right. We backed the products with big ad spends, a large dealer network, and a good service and parts policy. So, what was really the issue?
A Mix of Left and RightDon't Confuse Cause and Result
I always tell my people that we live in two worlds; the world of cause and the other of result. The problem is we confuse the two. Take, for instance, our most famous campaign: Hamara Bajaj. Now the reality is Hamara Bajaj is not the cause of our success even in those days. It's the result of it. It's because we became so big, dominant and popular that that emotion found some echo. If we had started with Hamara Bajaj, it wouldn't have had any credibility.
So, how do you tell the difference? I've usually found that the result lies in the material world, while the cause is usually found in the immaterial world. So, if you produce good profits, it's a result where you can count the money. The cause of that is the strategy, which is no more than a thought. It is immaterial. That's no different from what we do on the shop floor. So, if there is defective material, it could be because the tool has worn out. So, why did the tool wear out? It could be because it was not replaced. It wasn't replaced because the guy who should have done it wasn't adequately trained.
Source:
Rajiv Bajaj: Being original to succeed - Forbes India News - IBNLive
Profile: Managing Director, Bajaj Auto
Age: 45
Why He Won: For spearheading Bajaj Auto's strategic shift from scooters to motorcycles. And for forging an entry into large markets in China and Africa.
I've often pondered over a critical question: Why do 90-95 per cent of all new products fail? This is a very fundamental issue because if the failure rate is so high, it clearly means there is something wrong with the tools with which we operate. For instance, would you go to a cardiac surgeon who has a reputation of 90 per cent failure? For me, there's only one conclusion: Our management tool kit is outdated.
A Mix of Left and RightDon't Confuse Cause and Result
I always tell my people that we live in two worlds; the world of cause and the other of result. The problem is we confuse the two. Take, for instance, our most famous campaign: Hamara Bajaj. Now the reality is Hamara Bajaj is not the cause of our success even in those days. It's the result of it. It's because we became so big, dominant and popular that that emotion found some echo. If we had started with Hamara Bajaj, it wouldn't have had any credibility.
So, how do you tell the difference? I've usually found that the result lies in the material world, while the cause is usually found in the immaterial world. So, if you produce good profits, it's a result where you can count the money. The cause of that is the strategy, which is no more than a thought. It is immaterial. That's no different from what we do on the shop floor. So, if there is defective material, it could be because the tool has worn out. So, why did the tool wear out? It could be because it was not replaced. It wasn't replaced because the guy who should have done it wasn't adequately trained.
Source:
Rajiv Bajaj: Being original to succeed - Forbes India News - IBNLive
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