Is your company dependent on Innovation? Grow the right Culture First! The rest will take care of itself!

There is a reason, Mark Zuckerberg sits right next to the Summer Intern from University of Waterloo (True Story – Daughter of an Indian friend of mine!). No separate office, no glass windows to look out of!

Sergei Brin and Larry Page are worried sick of “Not Enough Innovation” out of Google!

They all focus on building the right culture for their people so that they can out-innovate their best competitors in the world!

Netflix, Google, Facebook all encourage and even require their employees to engage about 25% of their time in some pet technical project of their own. Some of these turned out to be big money makers, many failed!

Their philosophy is that if you have not failed enough number of times, you are not trying hard enough!

It all goes back to the company culture you build from Day 1! I have done it a number of times putting together engineering groups in multiple companies in Silicon Valley and I have done the same thing in India! If anything it works even better in India, if it is any consolation! Employees loved it and so very highly motivated, especially if they came from other companies in India!

Do you view yourself as the Captain of the ship who just makes very high level decisions and leave your first officers and people who report to them alone to do their jobs? Do you trust them from Day 1 to make the right technical decisions, stepping in only to guide them if they are straying too much from your mission?

Many of us come from a technical background and as engineers, our first instinct is to jump in and make the right decisions for our employees. Wrong!

In other words, do you treat that employee who just joined you straight from college as an adult, expect a lot from them, make sure that they have the hardware and software tools and leave them alone to do their jobs?

High expectations does something magical! The same employee comes in on their own on saturdays and sundays to try out something they have been thinking about. It stops being work for them and becomes something they take ownership for!

Do you praise them in meetings for even minor accomplishments but correct things they do wrong in private?

Do you tell them everyday that you are depending upon them to contribute great ideas to the company, give them time to try them out?

Then you have the right culture for innovation!

However, there are other things that go into this culture working correctly! You need to spend a lot of time hiring ONLY the right people! Make no mistake – Silicon Valley, India or Timbuktu, only 5- 10% of any population are really really good and suitable for innnovative companies. Do you look through 100 resumes and filter out that 5 to 10%? The wrong people can make your innovation train go off the rails, right from the beginning!

You are saying – I am this small company in Chennai – I am competing for talent with Infosys, Wipro and others. How do I get that 5 to 10% cream of the crop.

Guess what? I have done that! Spread your search to Tier 2, Tier 3, Tier4 colleges. Go to Bangalore, Delhi and Mumbai to hire. Simple science, really! If you are trying to hire the 5 – 10% of the best in a population, to increase your chances, you go to more populations. I hired two people from Delhi to come, work in Chennai. Did wonders for my employees. They learned how to help, interact with someone from another language, culture.

There is another reason how diversity helps your innovation. Men and Women think about the same problem differently. Punjabis think differently than South Indians. Assamese and Bengalis are different in thinking than Mumbaikars! All these differences are your real assets. Walk into facebook and Google, you will see employees that represent the United Nations. There is a reason to that madness! Innovation comes from thinking differently and people who solve the same problem in many different ways are your real assets, your keys to innovation!

If you encourage them, give them the broad direction, tools and step away to let them do their jobs, fail often but try different things nevertheless. Works in Silicon Valley, New York, Washington. Works even better in India, if you try it without skipping any of the ingredients.

You never realize how much the Indian work culture has borrowed all the wrong things from our British masters before us. Separate dining rooms for different levels of executives, the “Yes. Sir. No Sir” culture. This kind of thinking is more harmful to your goals than you think!

It can be changed. It all starts with a few companies that start doing it. I am sure there are many companies in India that already do it actively today and are seeing the results.

Culture is often pooh-poohed as something touchy-feely stuff and not suitable for a goal oriented, task oriented company. It is everything in a startup, especially one that wants to Innovate!

Introducing #alpha: Showcase For Your Product Or Startup At The #NAMA Conference

We’re pleased to announce #alpha, a product and startup showcase at our flagship conference #NAMA, being held on October 10th 2012, at The Westin in Gurgaon.

While #NAMA is largely going to be about in depth conversations about the digital industry in India and the road ahead, in a 20 minute Q&A format (and 10 minutes for an audience Q&A), we also want some fresh (and great) products and fresh business ideasto be showcased.

Why #alpha

With #alpha, we want to achieve two things – try and dispel the notion that India is not a market with great products or one for innovation, and that innovation happens only in startups.

It needs to be unique, fresh and interesting – the alpha product or alpha startup (and alpha as in top-of-the-gene-pool, not half-done-readying-for-beta). Brownie points if you choose #alpha as the platform to announce/launch your product or announce you business.

So whether you’re a startup or a large company, if you’ve build a great product that you think will wow #NAMA attendees and MediaNama readers, we’ll give you the opportunity to showcase the product. If you’re a startup with a fresh and interesting business idea and and you want to announce your launch, we’ll give you the platform.

You can fill out the form for #alpha at http://nama.cc/alphaform.

The last date for submission is 19th of September 2012.

Please be as detailed as possible and sincere about what are the features of the product. We’ll need to see the product (see a demo, see screenshots) and speak with you before taking a decision on featuring the product at #alpha. If you’re selected – and the decision is very subjective – we will need to be involved to curate your short talk as well.

Do we really need a Product Manager?

Instead of a consultant’s usual response to things “it depends”, I will choose to give an enthusiastic affirmative – Absolutely YES! But before I give you my reasons for it, let me first give a context for this term Product Manager (PM).

For any product business that is trying to turn an idea into a successful enterprise the management team channels their energy essentially into two macro functions – building stuff and selling stuff. If engineering is primarily tasked with building and sales is tasked with selling somebody has to be focused for everything in between – that’s where the Product management role comes in!

Here are 5 basic reasons on why companies need somebody playing the role of product management

1. Bringing the Market Context into the Company
Successful companies build products that actually solve real problems. Somebody needs to identify the market problems through rigorous market research, qualify and quantify them and validate the proposed solution to ensure it indeed solves their problem and can be feasibly delivered to the customer. Product Managers ensure that we build products that ultimately people want to buy, they are the messengers of the market and represent the voice of the customer and prospects in all strategic decision making inside the company

2. Productizing Innovation
Engineering has come up with the most brilliant innovation – now how do you “productize” it? What segments of the market would this appeal to and would customers actually pay for it? What is the competitive landscape for the product and what alternatives available to that segment of the market? How should this be priced and packaged to turn it into a profitable business? What should be the primary route to market for such solutions? As you can see there is a lot more that happens between building and selling and somebody needs to be responsible for productizing innovation

3. Customer Research vs. Market Research
Companies, especially early stage, often fall into the trap of concluding what market needs by just talking to a few prospects/customers (usually friends!). The trap becomes even vicious when you find yourself doing custom work for each of those initial customers. If the business model is to focus on generating huge revenues from a few customers this model might work but for companies who want to be market driven, you want a champion that focuses on broader market research by talking to several customers and identifying a trend by normalizing one offs (even though they represent to be a very attractive customer opportunity)

4. Pricing, Packaging for Profitability
If the ultimate goal for the venture is to become profitable, this is probably one of the most important exercise that typically is owned by the Product Manager. While there are several methodologies to price a product and package it with others in the portfolio, they all revolve around a strong understanding of the buyer and user personas in the target market segment. Leavings this up to the builders (engineering) could be dangerous as they will be the experts on the cost side but not the value to the customers and leaving it up to the sellers (sales) to decide this is even more so dangerous as they would more focused on revenue and not profits! In the IT services sector where commoditization is in fashion, finding the next valued added feature/service in the packaged offering is even more so critical to continue to grow and differentiate the offering

5. Communicating values over features
Product managers are the defacto product experts which make them the perfect candidates for developing the positioning strategy for the product that sales and marketing can use to communicate values over features. Organizations typically have invested into marketing and communication functions like brand building, PR/AR (Press/Analyst Relationships) etc. to help sales but few in India actually have a more formal marketing department with dedicated Product Marketing Managers (PMM) to help with sales/SE training, generating leads, customer retention and acquisition, thought leadership activities, launch plans etc. Essentially helping the sales team to effectively sell with the right message that resonates with the customer becomes a function of the product management role in those scenarios.

Some companies have distributed these functions with different roles like VP Engineering, CTO, VP Sales, VP Marketing etc. and often the CEO is the PM of the company. Not only are there inherent risks in such fragmented execution, this model doesn’t really scale in the long run.

Different names for the same end game

Due to the versatility and the nature of the role for a Product Manager, different organizations globally have called this role differently. Titles like product manager (PM), program manager (PrM), product line manager (PLM), product marketing manager (PMM), Technical Product Manager (TPM), business analyst. Also due to the strategic nature of the role coupled with a lot of decision making, the Product Manager role is often found to be residing in different organizations – reporting into engineering, sales, marketing and often directly into the CEO.

Product management function in India is still in its infancy. Lot of MNCs have started hiring product managers in India to improve operational efficiency by tightly aligning a PM who decides on “what to build” with the engineering team actually building it. Lot of services companies and startups might not have a dedicated Product Manager but the role is split between different members of the management team.

I wonder that, as India Inc gets ready to build more products for the global markets and as global companies get ready to see India more than an engineering center, do we need more Product managers in the industry than what we have today?

We would love to hear from you so do respond with your ideas and quires in the comments below.

Original Post can be accessed at Adaptive Marketing