Take off that Gloves – It’s Time to Escalate to Resolve

 

“Don’t Have to Fight to be a Man”

 There is something haunting about the way Kenny Rogers sings ‘Coward of The County’. The concluding lines of the song depict the transformation of Tommy a confirmed pacifist to a fighter.

  “I promised you dad, not to do the things you’ve done

I walk away from trouble when I can

Now please don’t think I’m weak if I didn’t turn the other cheek

And Papa, I should hope you to understand

Sometimes you gotta fight when you are a man”

 There are times when one needs to pick up a fight and take it to conclusion.

 Life is Like That

 

"In that case, we are striking work" thunders an agitated union leader.

"We will declare a lock out", declares an equally agitated GM Administration

 

"You agree or not, we are getting married" declares a dissenting son.

“Don’t come back” shouts a distraught father

Different words. Different settings. Yet essentially the same situation! A conflict is in escalation! Is escalating conflict always a natural outcome of a deteriorating situation, a one-way street to destruction? Can it be the means to force resolutions?

Fermenting Conflicts

Situations don't ferment overnight into conflicts.

Differences in values, perceptions, expectations and aspirations, individually or collectively, tend to initiate disagreements and dissonance. Competition aggravates the difference. Communication becomes fettered and biased. Unresolved and festering differences germinate conflict.

The first symptom to manifest in conflict is absence of meaningful communication which turns collaborators into competitors, competitors into adversaries and adversaries into enemies. Gradually, those around the individuals are sucked in to the conflict vortex, coagulating the organisation into warring factions. Individuals and groups harden views, occupy self-inhibiting positions and render themselves unreconcilable. As conflict worsens, adversaries find increasingly aggressive means to inflict grievous injuries to the enemy. Eventually both individuals and organisations become dysfunctional.

Dysfunctionality

An unreasonable union leader egged on by the might of the significant ‘violent few’ and encouraged by the insignificant ‘silent many’, can hold organisations to ransom, bleed it financially and erode its strength. An insensitive administration could delay or deny its workers what is genuinely due to them, killing productivity and germinating unrest. A difference in opinion between two individuals could become turf war between verticals in an organisation, crippling it. Allowed to fester without intervention, conflicts can spell disaster.

The same is applicable to interpersonal relationships. Insensitivity to the other’s physiological, emotional or esteem needs can initiate dissonance and turn relationships abusive. If not adequately addressed, rot sets in. Unstemmed rot in relationships destroys it.

Losses

Conflicts essentially occur between parties which assume mutually exclusive stakes in issues making it existential contests, even when mutually beneficial outcomes exist. Beyond a point in conflict, losses incurred by oneself may not matter. Regardless of one’s own losses and sufferings, adversaries focus on planning more severe future inflictions, sliding into a mindless spiral that offers nothing more than succour in mutual decimation.

Conflicts, in the long run, have neither been beneficial to winners nor losers. Past the euphoria of victory, the lose-lose situation precipitated becomes evident. Monopolies seldom thrive long. The real resolution of conflict lies in finding win-win solutions and really convincing both of the win-win character of the chosen option.

It is only well intentioned, diligently planned and thoroughly executed interventions, often by a third party, which can contain conflicts and elicit resolutions. Easier said than done!

Stalemates

In a conflict situation, evenly matched or not, when either of the two wilfully remains oblivious to the needs or demands of the other, or out of fear of being branded loser refuses to yield, a stalemate could be the result. Stalemate could also be accentuated when one side assumes that it can weather the ‘no-go’ situation better than the adversary.

Weakness of the adversary, real or perceived, fuels the urge to continue with the stalemate. Lulled by the belief that losses suffered by the adversary are far greater than the insignificant losses being suffered by itself, the party perpetuating status quo, endeavours to keep conflict subcritical, hoping to coerce the bleeding adversary to abandon demands and come to terms with what is dictated.

Potentially detrimental to both and never a solution in itself, stalemate seldom mitigate problems. Stalemates warrant escalation of conflict as the means to elicit solution and stem losses.

Stalemate Dissolution 

Stalemates can be broken either by withdrawal or aggravation.

If withdrawal is ever an option, conflict should not be precipitated. Tactical withdrawals apart, withdrawal from conflict is defeat. Defeat comes with the ignominy of unconditional retraction, burden of consequences, known and unknown, loss of ground, face and cause. Worse, deprived of bargaining positions even in future negotiations, the burden of withdrawal haunts losers till eternity. Therefore, withdrawing, well into the conflict is nothing but defeat without redemption in sight. This must be adequate warning to parties intending to convert differences of opinion in to conflict.

Having failed to contain conflict and reached stalemate, escalation could be a catalyst to resolution

Escalation Design

Having precipitated a conflict locked in stalemate, one possible way out is to escalate and force settlement. Escalation doesn’t guarantee desired results. It could even hasten destruction. Bleeding slowly to death through stalemate is not enjoyable either.

Irrespective of the escalation strategy and means applied, it must discretely maintain lines of communication between adversaries, for all conflicts commence when communications break and cease when meaningful communications are reestablished.

The escalating party must clearly distinguish between existential non-negotiables and elastic negotiables. Well before commencing the escalation process, it must also clearly demarcate ‘no-tread’ areas from tradable ones and fix the extent to which concessions can be made. The risk of skilled negotiators seeing through notwithstanding, few negotiables could be dressed up as non-negotiables to provide manoeuvrability in negotiations and serve trade off during the ‘give – and- take’ phase. A clear visualisation of adversary’s likely response’ and ‘could emerge’ situations is a must before escalating the conflict. This would help retain the initiative and nudge the adversary into desired positions.

A ‘dissent amongst and within’ is the worst affliction while attempting escalation. For an adversary desperately attempting to drive wedge to create inroads, fissures, however concealed it could be, are easy discoveries, windfalls easily exploited.

Even while escalating inter-personal relationship conflicts, there is a need to clearly define and demarcate negotiables and non-negotiables. Identity of the self, self-esteem and recognition of personal space must be non-negotiables to start with.

Conflict Aftermath

Victory or defeat, adversaries invariably emerge scarred and scathed from conflict. The bitter aftertaste of conflict persists long. While it is best to avoid conflicts, it is easier said than done.

Once conflict has been joined, it is easier to resolve it at the initial stages than trying to find ways out after much water has flown. Lingering long, conflicts slip into menacingly slow, but grievously damaging stalemate. Living the status quo could be detrimental to the interests of both the parties and the environment. Therefore, all efforts must be made to solve the conflict, even if it means escalation.

 

 

Setback Success Stardom & An Innocuous Catapult

 Safety of Ports or Sea of Opportunities?

Ships, berthed at ports are safe. But aren't ships meant to be out there on the high seas, conquering waves and braving storms searching for treasures that lie seven seas and beyond?

Life is no different.

Caged in protective environments and living off what has been inherited is survival,  mere existence. Repeated setbacks and failures are integral to chasing dreams and fulfilling them. Triumphs over tribulations sweeten success to no end. Poise with which setbacks are handled and the determination to get back on the feet to persist with the fight set victors apart from the vanquished.

Setback and spring back! The innocuous catapult has a lot to teach.

Scenes Behind Success

The pellet and the target grab all the attention. The straining structure, stretched strings and soft seating are seldom seen. It is the pellet’s impact that is always discussed and not what got it there. Without untiring stems, instantaneously retracting elastic strings and a secure seating, the pellet could have never taken flight.  

It is the success and fame of an individual that we notice, admire and envy. Success pushes the sweat and blood, toil and torment into the shadows. Glitz and glory, covers wounds and scars.

What better an analogy than a catapult?

The Skelton 

Take a look at the catapult. The most striking aspect about this very rudimentary weapon is the skeletal construct consisting of a stem, the lower straight part branching out into two hands at the top. The stem and the two branches have to be strong enough individually and collectively to withstand pulls. Short stems are unstable compared to longer stems and may not generate enough throw. Long stems leverage launch better than short ones.

The branches symbolise the domain of our skill sets, competencies, aptitudes as well as physical, emotional, intellectual and spiritual assets. Though we may not be equally competent in all the assets we possess, each one has to be individually strong enough to withstand the demands made on it, internal synergies making the union better.

The main stem represents our values and belief systems, inherited and acquired. How deep-rooted the competencies are in value-belief systems, dictates how well an individual can weather struggles, stress and strain. Fickle minds, short stems, flip easy. Deep rooted value systems help leverage unbelievable inner capacities so strong it can weather even the most terrible of real-life storms.

Fulcrum

A crucial part of the catapult is the joint where the two branches join the main stem. Structurally, it is the fulcrum that hosts three cantilevers straining against each other. In real life, it is the decision center, the human mind where excruciating dilemmas of “to be or not to be” are hosted, churned and handled. It dictates thresholds and tolerance, decides on strive or surrender, opts between flight and fight, choose between morality and convenience, and handles conflicts and convergence. This junction belongs to both the branches and the stem.

Deceptive Looks

The catapult, without the strings, is just a piece of dead wood. It is the elasticity of this flimsy looking pieces that allows the catapult to gather energy and garner momentum while being stretched. Under stress and strain, it actually plots to strike back the moment it can. Its ability to instantaneously spring back to normalcy gives it the power to throw far and impact the target. It also defines the limitations of the catapult. Under strain if it breaks, the catapult is nothing but firewood.

In real life, they define the limits to which an individual can stretch himself or herself. It defines the tolerance limits, the breaking points. It symbolises determination and persistency components of human efforts and together, our endurance. The instantaneous retraction is the ability to get back after each fall. Every throw may not reach or destroy the target. But with time each throw does.  Spurts of determination may not guarantee victory but persistence seldom goes unrewarded. Easily broken strings are nothing but burdens.

Cocoon or Cage?

The seating, innocuous at first sight, is as important as other components. Though it holds the pellet secure when pulled back, it doesn’t hinder the pellet’s flight forward. It actually facilitates the pellet’s release at the right time.

In real life it is our comfort zone. Whether it becomes an enabling nourishing cocoon that help us emerge victorious or a debilitating cage the safety of which we cling on depends on us. While cocooned we prepare ourselves to be launched to the target regardless of the uncertain flight. The decision to cage or cocoon oneself makes all the difference between success and failure. The willingness to abandon comfort zones and launch oneself into the vast expanse of uncertainty is a key factor in achieving success in life.

Search

Individual strength of each part of the catapult is important but its shoot efficiency comes from how well the parts converge and generate synergies. More than the excellence in one individual trait or few skills, what matters is the collective strength of skills and competencies and the ability to bring it to play when and where required. But for longevity of success and good of the society these have to be deep rooted in strong value systems.

Search. Look inwards. 

You may find the beautiful catapult ready to leverage your strengths and launch you into stardom. 

Pick up and launch. 

Want to hear about it

please watch

https://youtu.be/eKn5mWmMso0

Success - The How Explained with Orbital Theory

Orbitals -The Sub-atomic Domain

Progress is irrevocably linked to man’s restless mind, his relentless attempt to find verifiable logic to everything seen and unseen, experienced and even remotely experienceable, visualisable or hardly visualisable. It is this ‘search-continuum’ that has helped humankind imagine, postulate, define, explain, test and prove or disprove anything and everything.

The cathode-ray tube experiments of JJ Thomson in 1897 and discovery of electrons paved way for quantum leaps in research in the domain of subatomic particles. But it took many years of proving and disproving different hypotheses to explain behaviour of atoms in relation to its structure. Scientists, for now seem to agree on ‘energy-level’ based allocation of electrons to s, p d and f orbitals.

Interestingly, even behaviour of both successful and unsuccessful individuals, can be explained by an analogy of the ‘s, p d, f ‘architecture they operate from.

Orbital theory for success and failure?

Orbital Structure

In order to appreciate how the orbital structure enables success or failure, it is imperative to understand its structure and interlinkages.

https://youtu.be/h8HaicwXGJ4

Imagine a balloon filled with air. If it is held tight anywhere, the balloon becomes two inter connected lobes. Sliding the ‘hold’ up or down, allowing movement of air changes the size of the lobes. Imagine innumerable such ‘controllable’ twin lobed balloons bundled together in a tight pack. This collection of many lobes is f orbital, the workhorses that decide success or failure.

Depending upon requirements air needs to be pumped in or drained out of each lobe. d orbital is the, distribution network enabling linking of innumerable f lobes. To persist with the requisite pressure for ‘as long as required’, an intricate interconnected valve system is required. p orbital does that job. The entire system needs to be monitored and controlled. This requires an intricate sensory command and control mechanism connected to each lobe, the distribution network and each valve. The s orbital manages tis entire system.

The four orbitals are intricately and intimately interlinked, in a mutually nourishing or degrading embrace, functional efficiency of each linked directly to the other three.

Modus Operandi

Every aspect of human thought has a contra part. Fear and courage, apprehension and aspiration, despair and hope, suspicion and trust are few such pairs out of innumerable such possibilities. 

If fear dominates courage, the fear-courage lobe, actions of the individual are likely to be manifestations of fear. If the negative lobes are minimised, the corresponding positive lobes become predominant. Absence of negatives can make humans reckless and cruel. Nature, by default, configures negatives marginally dominant over positives making us cautious and improving chances of survival. This natural bias can be reprogrammed through deliberate self-affirmations over a period of time.

Fuelling Strategies

f orbital is the primary ingredient to scripting both success and failure. It senses opportunities and threats and transforms them into varied stimuli triggering appropriate responses. At rudimentary levels f orbital controls reflexes. But evolved, it fuels aspirations, feed dreams, create attitudes and dictate behavioural strengths and weaknesses.

Fear is a natural stimulus that can freeze physical and mental responses, but it also stimulates fight and flight responses. Uncontrolled fear has disastrous consequences, but if managed well, fear fuels strategies to confront, contain, control and conquer obstacles. Choices, the ‘f’ orbital residents, dictate operational strategies. Choice is the key.

Choice of fortitude over fear, faith over fatalism, resolve over vacillation, 

hope of success over fear of failure’ scripts success. Deeply intertwined with other orbitals, the f orbital nourishes or destroys depending upon how it is charged, recharged and conditioned. That is why, it is important to create enriching and reinforcing environment to ensure success.

This orbital also concerns with the skills, competence and expertise. In an environment of intense competition, being skilled and competent may not suffice. It may call for mastering the art of adaptation and skills in application of acquired competencies. f orbital facilitates it. Favourably developed f orbitals like the bigger balloon lobes help enlarge and extend the envelope of relevance and reverence.

Rooted in the conscious mind, f orbital is the foundation for success because all options consciously generated reside in this orbital.

Determination Strategies

Life is neither a sprint nor a collection of sprints. It is an endless gruelling marathon, a test bed of determination, unique to each individual. Success in life is not about a single victory or a series of short-term gains but about meticulously planned and unflinchingly executed long-term strategies. This is what determination is all about. Determination dictates intense commitment. d orbital defines the determination quotient of an individual. 

This network orbital can be primed to pump and make positive lobes dominant, minimise negativities and help overcome obstacles.

Resolve influences choices and therefore outcomes. It is most evident in the most trying of circumstances. d orbital determination helps, easily overcome short term losses and restrict impact of grievous setbacks. and helps accept and overcome setbacks better. Over time, determination becomes characteristic of the individual, permanently modifying choices made consciously. d orbital activities are dictated by the quality of the preconscious – conscious exchanges.

Persistence Strategies

Persistence is the ability to stay on course despite turbulences and obstacles. Determination spurts don’t define persistence. it is a trait. Persistence impacts determination through longevity of commitment regardless of setbacks and ensures momentum. An individual’s persistence quotient is defined by his /her p orbital architecture.

Like the valve system on the distribution network connected to the lobes, p orbital maintains the thrust, for as long as required preventing fatigue, loss of interest and sense of defeat in case of setbacks. Configured in tandem and continually communicating amongst themselves at the subconscious levels, f, d and p orbitals have significant influence on each other. In sync, they enrich one another and positively influence outcomes, but in dissonance, become malignant cumulatively eroding success probabilities.

The pre-conscious mind, waiting room for the conscious to call from, is the predominant master of this orbital. Drawing from the subconscious, p orbital continuously upgrades the quality of its asset holding helping the individual become persistent. If powerful assets can be drawn up fast from the subconscious, persistence thrives, determination blooms and success become routine.

Sustenance Strategies

Competencies, f orbital ingredients, aided by ‘commitment-intensity’, of d orbital kept alive by ‘commitment-longevity’ of p orbital become reflexes and help overcome challenges and savour success. But to convert isolated events of success into recurring events and transform it into winning as a habit, needs synergies within. The s orbital, like the sensor control system facilitates this process.

The s orbital is the strategizing domain and works extensively from the subconscious. Thus, it is important to address the subconscious assets to strengthen this orbital. Besides good memories, old emotional or physical traumas, failures, losses, pain, apprehensions fear and such debilitating attributes are stored in the subconscious. Although rooted amidst very potent inhibitors of the subconscious fortunately s orbital can be trained to operate without being adversely affected. Positive self-assertions precisely do that. Inputs from the s orbital permeates into every other orbital activity and decides their qualitative output.

The Bond

The four orbitals are irrevocably intertwined and feed and feed off each other. The ability to learn from past failures, block out negative thoughts and belief that success is possible is the first requirement. It will lead to persistence in determined efforts and success for sure. Having drawn up blueprint for progress, if an individual deliberately addresses the orbital architecture and internalises the requisite attributes, success is forgone conclusion, winning a habit and happiness a companion.

 

 

Hierarchy Upheavals

 Que sera - sera

2012 Dec 28. The conglomerate gets a new chairman, young but experienced, handpicked and groomed to replace a living legend who took the group to unimaginable heights. It was after a two-year long search and selection process that the successor was decided up on. The choice was hailed and celebrated. On 24^th Oct 2016, in less than two years after the assumption of appointment by the individual, the Board of Directors ‘overwhelmingly’ declared that it lost confidence in the chairman and resolved to remove him from the post.

What went wrong?

The Inevitable

Time and change are inseparable companions. With time, change is inevitable. Applicable to anything known, the universal diktat holds good for organisations too. If change is evolutionary and planned, all departments of an organisation play assigned roles in the process of change. But, good, bad or ugly, unexpected changes do happen. Precipitated by situations, succession in organisations, could become abrupt events. Though, it could be sudden and one of its kind for the afflicted, abrupt or forced changes are not rare at all.

Exits

Sudden demise of a CEO or the head of a vertical can jolt an organisation's operations, albeit temporarily. Such situations, unfortunate and abrupt, are normally addressed by the hierarchical structure. Though unexpected, it doesn’t prima facia pose serious organisational challenges. However, there could be exits that could be more challenging. Early symptoms and indications notwithstanding, exit of a CEO or one of the key players from an organisation could pose serious challenges. Impact of such an exit is aggravated if few individuals collectively leave for new grazing grounds. Worse, if it is the adversary they are headed to.

‘Good riddance of bad rubbish’ apart, such situations could easily become existential crisis for organisations. Although robust systems would have given adequate warning of impending flights, credit must be given to the ability of such individuals to surreptitiously plot their move. Organisations invariably insulate themselves from such potential grief through well-crafted and legally enforceable ‘terms of engagement’ buying enough time to limit damages and find alternatives.

Removals

There could also be situations which dictate removal of individuals from positions of authority, for the good of the organisation. Notwithstanding reasons and methods adopted, stake holders may resolve to oust the individual. Such a removal is often accompanied by a purge, removing from positions of authority those individuals, whose continuance in hierarchy is considered detrimental to the interest of the organisation. This could be a tough decision with serious consequences. Yet, tough decisions are required at times.

The Chain

Organisational hierarchy defines roles and vests authority commensurate with each designation and appoints individuals. It then expects them to direct or propagate and implement directions in furtherance of organisational aims. This process, flows top down and is completed with feedback flowing bottom upwards.

Personal preferences, performance or bias driven, is bound to occur wherever transactions happen between humans for a period of time. It leads to varying levels of compatibility and trust. Depending on the level of mutual trust attained, the professional and personal relationship makes working easier, allowing informality to creep in. Extended along the chain of communication or functional flow, this informal channel becomes the real neural network of the organisation evolving into a formidable chain of authority.

This informal network is often more efficient and responsive than the official channel because of the trust amongst its members. However, if informal networks render official channels redundant organisational structure’s decay is said to be complete.

Henchmen

There could be superiors who deliberately create and forge informal networks within the organisation. Using remuneration, recognition and career mobility as baits, they easily find many down the chain, mostly afflicted with incompetency but eager to climb, willing to do their bidding. These individuals become trusted eyes and ears of the boss eventually prying and preying on the organisation as henchmen. While most of them can be easily recognised and visible, few keep their roles under wraps. These individuals represent the boss’s sphere of influence and through their actions enlarge the envelope of his/her authority. When a purge is mandated the entire neural network need to be surgically removed.

Fall Guys

There will be individuals, who by their assigned roles, are mandated to work closely with one or more individuals of the coterie. Professionally competent and upright, they normally confine their interaction strictly to professional matters and manage to maintain cordial working relationships. Their competence and organisational loyalty aside, they stand the risk of being viewed with suspicion, by the members of the coterie, their opponents and even the management on whose behalf they function. In the eventuality of a purge, they could easily become fall guys or just counted as collateral damage, paying a price for professionalism.

Fallout

As the situation of uncertainty develops and engulfs the organisation, its operations tend to get paralysed. Decisions taken seem irrational and implementation tardy. Mutual trust gives way to widespread suspicion. Formal chain of communication painstakingly built up over years, crumble under the burden of distrust. This is the worst time for an organisation to find itself in. As adversities mount, competitors will gain ground. If a riposte is not mounted quick enough, the organisation can suffer injuries that will need a long time to heal and recover from.

Convalescence

The purge demands a recoup to replace those who were eased out. The inflow would bring, in its wake, an individual or individuals who either suddenly find themselves rise in hierarchy within or are hired from outside.  Both conditions present fresh challenges to the organisation.

Whilst conditions were chaotic enough to warrant a purge, the post purge reconstitution is no less chaotic, further compounding the level of uncertainty. Roles and responsibilities might have to be redefined and chain of authority redrawn. If the new paradigm is dictated solely by the experiences that precipitated the purge, there is every chance it could be flawed. It could easily embody an element of vendetta. This could be counter-productive in the long run.

 Recovery

The process of recovery must commence with investigation to determine the causes which led to the chaos. It eventually must lead to identifying, adopting and applying measures to take the organisation forward. It is best for an outside agency to be entrusted with the task.

The new framework must predominantly focus on establishing primacy of formal chains of communication and operational controls. Besides restoring trust, remedies when implemented must restore normalcy at the earliest possible. This would reassure and motivate the rank and file.

Storm Riders 

Ships are safest in the port but are meant to ride the storm at sea. The crew is best when the ships, having ridden the storm safely berths at the port of call, only to sail out soon. Crisis and growth are inevitably inseparable. Despite all that can be done, crises do strike. It is smart to prevent and avoid crisis. The real test of organisational strength however, is in how successfully crises are handled.

 

BUILDING BRAND FOR BETTER RETURNS

 Difference in Brand Construct

After a day-long drive, I checked in to a hotel beside Lake Rotorua, New Zealand. Staff on duty seemed happy, committed, behaved as if they owned the place and impressed me with impeccable their conduct. The experience was different from all other hotels I had ever checked in. 

Back home, I wanted to buy an equipment for my house. Influenced by advertisements and impressed by the proprietor’s publicised and principled stand on various socio-political issues, I decided on a brand. Machines, irrespective of make, do fail but services promised should not. Repeated calls to the service centre went unattended. It required persistence and contacts to get my work done!

Dr APR is a medical specialist in whom, my trust has grown each day over a decade. I refer my friends and seek long distance pro bono consultancy for many.

Three different brands and three different brand images. Hype and hoopla around brand promotion aside, brand image is all about how it connects and stays on with the consumer.

Responses

The hotel, on a faraway continent, responded to my review[1]. I refer the hotel to travellers and receive helpful votes on my page.

The response from the manufacturer located a few kilometres away from where I stay, was just a system generated acknowledgement to my mail. They neither returned my calls nor followed up on mail. In fact, many have expressed similar experiences. I strongly advice those whom I know against having anything to do with the unresponsive brand that is destined to wither away.

The doctor unassumingly continues serving humanity. I continue to refer the doctor and pester him for advice for any one whom I think needs help. Those referred refer others!

Spurred by my experiences, I end up unknowingly reinforcing multiple brand images, either favourably or unfavourably.

Promised Experience

Though defined as intangible, brand is an identity that promises a tangible experience. More favourable the experienceable and consistently closer to the promise, better perceived and accepted becomes the brand. Mega launches, opulent promotions, celebrity endorsements, and audacious allocations gather eyeballs till the glitz last. Image, loyalty and value of brands are made of greater stuff. It rests on something abstract seemingly promised by the brand. Invariably, it is the prevalent perception amongst the masses.

Though individual perception may vary, there is a commonly held belief associated with each brand. It could be as subjectively vague as quality – price combination or as objective as warranty services or as intangible as societal relevance or trust worthiness. It is this uniquely individual expectation that aggregates to what the population believes is the brand promise. It is the ability of a brand to meet individual and collective expectation which decides its reach. It is at this point brand loyalty is sown.

Seeding Loyalty

Enticing pricing schemes loaded with freebies can bait reach and generate initial volumes. It seldom seeds loyalty nor reaps retention. Advertisements and celebrity endorsements ensure brand visibility that can help move it, once off the shelf. However, real growth of a brand happens not by the first sale but through repeated buys by the same customer. Ability of the brand to repeatedly satiate customer’s expectations seeds brand loyalty. Consumer then accepts, adopts and owns the brand. Such brand loyalty dictates brand life expectancy.

Brand’s growth is driven by its performance aided by tentacles of the brand. A knowledgeable salesman at the counter representing the brand, a friendly service engineer on a house call, a helpful call centre executive taking a feedback or recording a complaint are tentacles of the brand, which nourishes and enriches its image. The combination, of performance and support systems, seeks and seeds loyalty, makes it addictive and ensures brand success.  

Brand, after all, is nothing more than a collection of pleasant or unpleasant memories about a product or service. Brand equity essentially is the outcome of brand loyalty.

Brand Equity

Equity is synonymous with ownership. A brand, whose ownership is confined only to its creators, promoters and on those who are stuck with it, is doomed. A brand must have the inherent wherewithal to influence and entice so as to spread, grow and thrive. The ability of a brand to meet and go beyond expectations, is what fuels its growth. It is this characteristic of the brand that enhances its equity. Brand equity is built on performance, reliability and durability. Brand equity is essentially the outcome of brand image and its societal reach. It is bound to suffer if those, dealing with it, act deviant.

Brand Image

A good brand embodies the core values integral to the parent organisation. Brand image is the reflection of organisational culture. Size notwithstanding, great brand images come from organisations with impeccable core values. Fly-by-night operators or get-rich-quick promoters resorting to sell-and-scoot techniques can never offer great brands.

While brand identity is a time-consuming creation, brand image is the considered affirmation or rejection of the identity marketed. The brand would eventually find its own niche in the market. That is why some carefully crafted, aggressively marketed, celebrity endorsed brands enjoy hoisted reputation only to suffer equity erosion.

Its when employees and employers alike internalise core values the brand represents, can they effectively promote the brand. Better the internalisation, integration and implementation, lesser the need to labour on marketing strategies and sculpting brand identity. That is why selection and induction of individual into organisations assumes importance.

Brand Value

In the market place everything finally has to be translated into numbers. Brands are no exception. Different agencies use different parameters and methods of evaluation to calculate brand value. Irrespective of the method used to assign objective value to a subjective aspect, two elements that immensely impact brand value are reach and loyalty, which in turn is dependent on consistency in performance. Both these aspects theoretically or statically calculatable, effectively dictate the movement of the brand, turnover of the company and therefore the profit margins. In turn, brand value impacts the price of equity shares. Thus, it becomes a key consideration in acquisitions and justifiably demands appropriate compensation.

ROI

Brand represents cumulative aggregation of all investments made in a specific product, service or endeavour and investments must yield returns.  Marketing strategies certainly increase visibility, recall and market penetration. However, the real yield comes from the inherent strength of the brand and the image it has created for itself rather than the identity projected. Better the image, higher the returns.

A lingering Thought

Isn’t every individual a living brand? Isn’t time for us to evaluate our own ‘brand net worth’ at least once?

 

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[1] Trip advisor and Google

MARKET CAPITALISATION : LESSONS FOR LIFE

 Market Value

Market capitalisation is the total value of the company’s outstanding shares. While ‘face value’ is the value at which the share was originally floated, share value, is perception and supply-demand driven. Trust and expectations of the shareholders dictate perceived worth. Better the perception, more demand against finite availability which increases price and market cap. Often detached from fundamentals and sometimes devoid of rationale, share market has its own dynamics. Prices could fluctuate for no valid reasons. Experts explain it away as ‘sentiments”.

Sentiments and fluctuations apart, the factors that determine market cap are ‘number of outstanding shares’ and individual ‘share value’. Companies could also own shares other than outstanding shares.  These are called treasury shares Treasury shares could be those which the company reserved for itself or bought back or even those which remained unsubscribed. As long as they remain treasury shares, these neither influence market cap nor fetch any rights.

Human Worth

Each human being carries both outstanding and treasury shares. Competencies and attitude endowed to us at birth constitute our face value. What we do with it and how well we nourish it dictates our share value. The number of people to whom we become relevant and the manner of our relevance determines our market cap. The more we keep our skills for ourselves increases our treasury shares. How much others want of us defines the supply - demand dynamics. The sum total of our individual life depends on what we willingly shared with and how many. The more relevant we are to the society the more intrinsically valuable we become. Higher our market cap, higher our life’s net-worth.

But there is a difference!

The Difference

Business entities hope to continue in perpetuity, theoretically giving themselves a never-ending time continuum whereas we are up against a receding time line.  Conditioned to be unaware of how distant we are from the terminus, we grow oblivious to the obvious. We ignore the truth of our incremental progress to the end though a review of how long we have traversed could be an easy estimate of how close we are to the finish line. An honest evaluation could trigger conversion of the uselessly-held treasury shares into high yielding outstanding ones.

Value Addition

Irrespective of the company to which the share belongs, it’s the probability of ROI that draws investors to a share. The fundamentals, the management, the proposed market segment etc are significant in estimating the expected ROI. It essentially defines the strength of a share. Each individual, likewise is also endowed with a unique set of qualities. Much like increasing share value by increasing assets, perpetual efforts to upgrade competencies enhance our net worth.

Yet, intellectual accomplishments of an individual remain end states of mindful pursuits, bank balances result of considered choices or self-inflicted denials and health genetic gift or outcome of a random probability of encountering pathogens not potent enough. Health, wealth and power accrue sense of achievement that one son gets accustomed to. All these only enhance face value and not share value.

To yield returns we have to be subscribed by others else we remain overvalued treasury shares. It is to increase the probability of being subscribed, that we are innately made abundant in the ability to love and filled with craving to be loved.

Transformation from face value into share value can happen only by deploying one’s capabilities for the good of the society. In deploying our skills for others, we extend our area of influence, essentially increasing the share base and thereby our societal value. Better the asset deployed, more coverage and easier approachability, higher becomes the relevance and demand, resulting in exponential rise in value.

Compounding Returns

Investors choose shares with much care. The Creator isn’t any different. We are unique shares in which creator has invested. Unlike commercial shares, Creator has made us autonomous shares empowered to decide how much should be our treasury component and how much outstanding. The decision becomes urgent in light of receding time lines.

Experts recommend staying invested long enough to compound and reap returns for outperforming ones will eventually more than compensate the bad ones. In our own life too, we need to stay invested long enough to reap returns on relationships, trust and compassion.

Bulls Will Run Again

The market has its bulls and bears, life its ups and downs, persistence the key to profitability.

The fickle hearted quits at the sight of a bear, missing out opportunities. Wizards, survive bear hugs playing dead and exploit bear runs through diversification and consolidations. They enlarge their gains in bull runs through clever disposals.

Life too has its bulls and bears to content with. Life's bull run must be exploited to reach out to others and increase capitalization while bear hugs must encourage perseverance to remain invested in the value systems that we have built up over time, for much like the market, bulls will run again.

Investment Advice

Entering or refraining from the share market is a deliberate choice. But, by the accident of birth, we are invested in. We have the option to ‘exist’ as treasury shares with the face value endowed to us at birth or live invested as outstanding shares enhancing value through competency building and sharing.

The young may postpone the deliberation on the pretext of toiling to live while the not so young avoid it citing inadequate time for investment to mature. There is nothing more for detached from truth. Not attempting to diversify interests, increase one’s competencies and reaching out to others is nothing but condemning oneself to an existence awaiting death.

If we can pride ourselves in our choice of shares, can the creator be denied his wisdom?

 It’s all Within

There is something interesting about human mind. Invisible yet visibly influential, silent yet its diktats loud, shapeless yet shapes the very existence of its host, mind is powerful enough to determine the very path man.[1]

Time lines are not ours to reckon with but our commitment is. It’s time to look forward, pick up threads and set ourselves to increasing our market cap.

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[1] Discovering the Mahatma within, jacobshorizon.blogspot.com