[Music] finally we’ve gathered technology
finally we’ve gathered technology
finally we’ve gathered technology working good afternoon everybody
working good afternoon everybody
working good afternoon everybody what I want to talk about is responsible
what I want to talk about is responsible
what I want to talk about is responsible business it’s good business I am a
business it’s good business I am a
business it’s good business I am a businessman as my introduction already
businessman as my introduction already
businessman as my introduction already said and I begin by first explaining
said and I begin by first explaining
said and I begin by first explaining what I mean by good business good
what I mean by good business good
what I mean by good business good business business is generally about the
business business is generally about the
business business is generally about the pursuit of profit and profits rise and
pursuit of profit and profits rise and
pursuit of profit and profits rise and either you can increase your sales or if
either you can increase your sales or if
either you can increase your sales or if you can reduce your busts and and if you
you can reduce your busts and and if you
you can reduce your busts and and if you can do both of them at the same time
can do both of them at the same time
can do both of them at the same time that’s even better but more important in
that’s even better but more important in
that’s even better but more important in profits to sustain be consistent here on
profits to sustain be consistent here on
profits to sustain be consistent here on your a month month decade on decade and
your a month month decade on decade and
your a month month decade on decade and if that is the kind of business somebody
if that is the kind of business somebody
if that is the kind of business somebody wants to run then it is very very
wants to run then it is very very
wants to run then it is very very helpful for that business in fact I
helpful for that business in fact I
helpful for that business in fact I would go as far as to say it is
would go as far as to say it is
would go as far as to say it is absolutely necessary for that business
absolutely necessary for that business
absolutely necessary for that business to be responsible but what do I mean by
to be responsible but what do I mean by
to be responsible but what do I mean by the word responsible well if you look at
the word responsible well if you look at
the word responsible well if you look at the Oxford English Dictionary you will
the Oxford English Dictionary you will
the Oxford English Dictionary you will find that responsible comes with four or
find that responsible comes with four or
find that responsible comes with four or five definitions for the most important
five definitions for the most important
five definitions for the most important one is which says being capable of
one is which says being capable of
one is which says being capable of fulfilling a responsibility or a trust
fulfilling a responsibility or a trust
fulfilling a responsibility or a trust that capability you have therefore you
that capability you have therefore you
that capability you have therefore you are responsible or if you have the
are responsible or if you have the
are responsible or if you have the authority or the control over delivering
authority or the control over delivering
authority or the control over delivering then obligation and the third definition
then obligation and the third definition
then obligation and the third definition that the OED gives is you are
that the OED gives is you are
that the OED gives is you are accountable you are answerable all those
accountable you are answerable all those
accountable you are answerable all those apply to a business ultimately whether
apply to a business ultimately whether
apply to a business ultimately whether it is small or big whether the business
it is small or big whether the business
it is small or big whether the business employs one person for a thousand people
employs one person for a thousand people
employs one person for a thousand people or a hundred thousand people a business
or a hundred thousand people a business
or a hundred thousand people a business behaves collectively as its people make
behaves collectively as its people make
behaves collectively as its people make it behave and when a business begins to
it behave and when a business begins to
it behave and when a business begins to believe it is responsible the collective
believe it is responsible the collective
believe it is responsible the collective behavior of the people within the
behavior of the people within the
behavior of the people within the business as well as the people that
business as well as the people that
business as well as the people that business contacts that behavior change
business contacts that behavior change
business contacts that behavior change tends to change and that is what makes
tends to change and that is what makes
tends to change and that is what makes that business responsible we talked
that business responsible we talked
that business responsible we talked about answerability and
about answerability and
about answerability and accountability well what and who and to
accountability well what and who and to
accountability well what and who and to whom is a business accountable when
whom is a business accountable when
whom is a business accountable when things go badly wrong if you have a pile
things go badly wrong if you have a pile
things go badly wrong if you have a pile of gas tragedy or if you have a
of gas tragedy or if you have a
of gas tragedy or if you have a Kingfisher Airlines laughs then
Kingfisher Airlines laughs then
Kingfisher Airlines laughs then governments tends to step in and hold
governments tends to step in and hold
governments tends to step in and hold the business accountable but what
the business accountable but what
the business accountable but what happens in the norm day-to-day of a
happens in the norm day-to-day of a
happens in the norm day-to-day of a business who is holding the business to
business who is holding the business to
business who is holding the business to account well the short answer is all the
account well the short answer is all the
account well the short answer is all the stakeholders all the people that the
stakeholders all the people that the
stakeholders all the people that the business that have an interest in the
business that have an interest in the
business that have an interest in the business or the business has an interest
business or the business has an interest
business or the business has an interest in and the usual is two stakeholders is
in and the usual is two stakeholders is
in and the usual is two stakeholders is customers employees suppliers banks
customers employees suppliers banks
customers employees suppliers banks government community environment
government community environment
government community environment shareholders but if you think about it
shareholders but if you think about it
shareholders but if you think about it on a day-to-day basis these people are
on a day-to-day basis these people are
on a day-to-day basis these people are not holding the business to account the
not holding the business to account the
not holding the business to account the business must hold itself to account and
business must hold itself to account and
business must hold itself to account and be accountable and responsible for these
be accountable and responsible for these
be accountable and responsible for these various shareholders for these various
various shareholders for these various
various shareholders for these various stakeholders and if it does that you get
stakeholders and if it does that you get
stakeholders and if it does that you get good business now let me drive this
good business now let me drive this
good business now let me drive this point home by a few examples the
point home by a few examples the
point home by a few examples the simplest way for a business to continue
simplest way for a business to continue
simplest way for a business to continue its sales and reduce its costs is to
its sales and reduce its costs is to
its sales and reduce its costs is to have the same customer coming back to it
have the same customer coming back to it
have the same customer coming back to it day in day out there is a famous panwa
day in day out there is a famous panwa
day in day out there is a famous panwa Lionel a punchy fan wallah those from
Lionel a punchy fan wallah those from
Lionel a punchy fan wallah those from vapor will probably know he is a
vapor will probably know he is a
vapor will probably know he is a landmark he has existed in that same
landmark he has existed in that same
landmark he has existed in that same area since I was a schoolboy and he’s a
area since I was a schoolboy and he’s a
area since I was a schoolboy and he’s a business that has endured for 50 years
business that has endured for 50 years
business that has endured for 50 years if you go to him after 10 years he would
if you go to him after 10 years he would
if you go to him after 10 years he would recognize you and he knows what fun you
recognize you and he knows what fun you
recognize you and he knows what fun you like he has a spate of customers who
like he has a spate of customers who
like he has a spate of customers who will only go to him for
will only go to him for
will only go to him for he’s not out there advertising his
he’s not out there advertising his
he’s not out there advertising his business he has no advertising across he
business he has no advertising across he
business he has no advertising across he has no central marketing US customers
has no central marketing US customers
has no central marketing US customers keep coming back to him purely because a
keep coming back to him purely because a
keep coming back to him purely because a of the quality of pond he produces and B
of the quality of pond he produces and B
of the quality of pond he produces and B of that smiling customer service which
of that smiling customer service which
of that smiling customer service which he and now his progeny I guess and been
he and now his progeny I guess and been
he and now his progeny I guess and been delivering for the last 55 years if you
delivering for the last 55 years if you
delivering for the last 55 years if you can keep customers coming back that’s
can keep customers coming back that’s
can keep customers coming back that’s the cheapest thing for a business and
the cheapest thing for a business and
the cheapest thing for a business and that is probably why once Econoline
that is probably why once Econoline
that is probably why once Econoline givers there is a famous internet
givers there is a famous internet
givers there is a famous internet company it started in the 90s it is a
company it started in the 90s it is a
company it started in the 90s it is a very successful company today it
very successful company today it
very successful company today it survived the 2003 2002 dot-com crash it
survived the 2003 2002 dot-com crash it
survived the 2003 2002 dot-com crash it has a peculiar way of bringing customers
has a peculiar way of bringing customers
has a peculiar way of bringing customers to the center stage every meeting room
to the center stage every meeting room
to the center stage every meeting room in that company’s offices has an empty
in that company’s offices has an empty
in that company’s offices has an empty chair and every meeting has that empty
chair and every meeting has that empty
chair and every meeting has that empty chair and that chair represents the
chair and that chair represents the
chair and that chair represents the customer all managers whoever it is
customer all managers whoever it is
customer all managers whoever it is who’s joining that meeting always
who’s joining that meeting always
who’s joining that meeting always remember the customer sitting here when
remember the customer sitting here when
remember the customer sitting here when I be saying this in the presence of the
I be saying this in the presence of the
I be saying this in the presence of the customer no I would I said as if the
customer no I would I said as if the
customer no I would I said as if the customers here and that changes behavior
customers here and that changes behavior
customers here and that changes behavior within the company to bring keep
within the company to bring keep
within the company to bring keep bringing customers back and for an
bringing customers back and for an
bringing customers back and for an Internet company to endure for something
Internet company to endure for something
Internet company to endure for something like 20 odd years through these
like 20 odd years through these
like 20 odd years through these companies has endured it’s only because
companies has endured it’s only because
companies has endured it’s only because of that and they are profitable I know
of that and they are profitable I know
of that and they are profitable I know of a company which number of Japanese
of a company which number of Japanese
of a company which number of Japanese companies fall in this category who say
companies fall in this category who say
companies fall in this category who say whatever we produce doesn’t have any
whatever we produce doesn’t have any
whatever we produce doesn’t have any defects zero defects is a way of life
defects zero defects is a way of life
defects zero defects is a way of life many people think producing zero defects
many people think producing zero defects
many people think producing zero defects is actually a very expensive thing to do
is actually a very expensive thing to do
is actually a very expensive thing to do it costs money to build quality into
it costs money to build quality into
it costs money to build quality into your products the reality is if the
your products the reality is if the
your products the reality is if the pursuit for zero defect actually reduces
pursuit for zero defect actually reduces
pursuit for zero defect actually reduces your costs first and foremost your
your costs first and foremost your
your costs first and foremost your customer is happy second he gets no
customer is happy second he gets no
customer is happy second he gets no rejections or defects and therefore his
rejections or defects and therefore his
rejections or defects and therefore his costs come down and when his cost come
costs come down and when his cost come
costs come down and when his cost come down he continues to buy from you there
down he continues to buy from you there
down he continues to buy from you there was increased sales but most important
was increased sales but most important
was increased sales but most important your own custom down your custom down
your own custom down your custom down
your own custom down your custom down because you are producing less defects
because you are producing less defects
because you are producing less defects yourself your supplies are producing
yourself your supplies are producing
yourself your supplies are producing less defects yourself and overall it
less defects yourself and overall it
less defects yourself and overall it becomes good business therefore taking
becomes good business therefore taking
becomes good business therefore taking responsibility for customers in a
responsibility for customers in a
responsibility for customers in a variety of ways I’ve given you three
variety of ways I’ve given you three
variety of ways I’ve given you three examples here is good business let’s
examples here is good business let’s
examples here is good business let’s look at another stakeholder employees
look at another stakeholder employees
look at another stakeholder employees how many company annual reports have
how many company annual reports have
how many company annual reports have read which use the words our employees
read which use the words our employees
read which use the words our employees are our most important asset assets need
are our most important asset assets need
are our most important asset assets need attention and care but in many companies
attention and care but in many companies
attention and care but in many companies the managing directors Mercedes car gets
the managing directors Mercedes car gets
the managing directors Mercedes car gets more attention than employees do with
more attention than employees do with
more attention than employees do with employees there is an illegal contract
employees there is an illegal contract
employees there is an illegal contract and there is an emotional contract and
and there is an emotional contract and
and there is an emotional contract and if you are serious about being
if you are serious about being
if you are serious about being responsible to your employees of the
responsible to your employees of the
responsible to your employees of the business you ignore that emotional
business you ignore that emotional
business you ignore that emotional contract at your peril some of you will
contract at your peril some of you will
contract at your peril some of you will remember newspaper reports of about a
remember newspaper reports of about a
remember newspaper reports of about a year two years ago when an IT business
year two years ago when an IT business
year two years ago when an IT business issued pink slips retrenchment notices
issued pink slips retrenchment notices
issued pink slips retrenchment notices to a large number of its staff on an SMS
to a large number of its staff on an SMS
to a large number of its staff on an SMS which was probably a low-cost way of
which was probably a low-cost way of
which was probably a low-cost way of sacking employees if you’re in a hurry
sacking employees if you’re in a hurry
sacking employees if you’re in a hurry that’s the way you would do it but they
that’s the way you would do it but they
that’s the way you would do it but they completely forgot that a large part of
completely forgot that a large part of
completely forgot that a large part of the same people colleagues are the same
the same people colleagues are the same
the same people colleagues are the same people would continue to work for them
people would continue to work for them
people would continue to work for them think of the broken emotional contract
think of the broken emotional contract
think of the broken emotional contract for the people who remained in the
for the people who remained in the
for the people who remained in the company would they really be putting
company would they really be putting
company would they really be putting their best in or would they be voting
their best in or would they be voting
their best in or would they be voting with their feet and saying this is how
with their feet and saying this is how
with their feet and saying this is how my company treated my colleagues maybe
my company treated my colleagues maybe
my company treated my colleagues maybe I’m next so I may as well go find
I’m next so I may as well go find
I’m next so I may as well go find another job had this company been
another job had this company been
another job had this company been responsible to its employees it wouldn’t
responsible to its employees it wouldn’t
responsible to its employees it wouldn’t have behaved like that and it would have
have behaved like that and it would have
have behaved like that and it would have had a motivated workforce which for an
had a motivated workforce which for an
had a motivated workforce which for an IT business is very very important
IT business is very very important
IT business is very very important ultimately I tease about people a great
ultimately I tease about people a great
ultimately I tease about people a great way to engage even workers is what is
way to engage even workers is what is
way to engage even workers is what is known as the quality circles movement we
known as the quality circles movement we
known as the quality circles movement we have a lot of experience with quality
have a lot of experience with quality
have a lot of experience with quality circles and workers
circles and workers
circles and workers when they’re solving the problem on a
when they’re solving the problem on a
when they’re solving the problem on a day to day basis they learn a lot and
day to day basis they learn a lot and
day to day basis they learn a lot and they care for what they learn they
they care for what they learn they
they care for what they learn they become better individuals a lot of that
become better individuals a lot of that
become better individuals a lot of that learning ends up in their forms and in
learning ends up in their forms and in
learning ends up in their forms and in terms of problem-solving methodologies
terms of problem-solving methodologies
terms of problem-solving methodologies and things like that and that is a very
and things like that and that is a very
and things like that and that is a very positive way to nurture this employee
positive way to nurture this employee
positive way to nurture this employee asset so the right moves taking
asset so the right moves taking
asset so the right moves taking responsibility for the people for their
responsibility for the people for their
responsibility for the people for their growth for their development for their
growth for their development for their
growth for their development for their learning and keeping in mind they’re
learning and keeping in mind they’re
learning and keeping in mind they’re human beings and there is an emotional
human beings and there is an emotional
human beings and there is an emotional contract is good business
coming to partners and banks these days
coming to partners and banks these days we’ve heard so many cases where big
we’ve heard so many cases where big
we’ve heard so many cases where big businesses borrowed mega bucks and is
businesses borrowed mega bucks and is
businesses borrowed mega bucks and is unable to repay the banks and the banks
unable to repay the banks and the banks
unable to repay the banks and the banks are suffering from the so called non
are suffering from the so called non
are suffering from the so called non performing assets I read a few days ago
performing assets I read a few days ago
performing assets I read a few days ago a statement of one large group which has
a statement of one large group which has
a statement of one large group which has had to sell a very substantial part of
had to sell a very substantial part of
had to sell a very substantial part of its business empire to repay some of
its business empire to repay some of
its business empire to repay some of these debts and the managing director
these debts and the managing director
these debts and the managing director statement was well we borrowed this
statement was well we borrowed this
statement was well we borrowed this money in 2005 and 2008 and everybody was
money in 2005 and 2008 and everybody was
money in 2005 and 2008 and everybody was chasing throats and things happened and
chasing throats and things happened and
chasing throats and things happened and our loans went bad we couldn’t repay
our loans went bad we couldn’t repay
our loans went bad we couldn’t repay them well there you go you started with
them well there you go you started with
them well there you go you started with the business which was doing well it is
the business which was doing well it is
the business which was doing well it is not as profitable anymore it is bad
not as profitable anymore it is bad
not as profitable anymore it is bad business in order to just survive in and
business in order to just survive in and
business in order to just survive in and have to sell a part of its own Empire
have to sell a part of its own Empire
have to sell a part of its own Empire and the managing director says well I
and the managing director says well I
and the managing director says well I just followed the trend you know why
just followed the trend you know why
just followed the trend you know why blame me the assets my if I couldn’t
blame me the assets my if I couldn’t
blame me the assets my if I couldn’t repay the loans I don’t think that is
repay the loans I don’t think that is
repay the loans I don’t think that is responsible behavior a responsible
responsible behavior a responsible
responsible behavior a responsible business before it borrows things long
business before it borrows things long
business before it borrows things long and hard in good times and in bad will I
and hard in good times and in bad will I
and hard in good times and in bad will I be able to repay this loan and if they
be able to repay this loan and if they
be able to repay this loan and if they can only then will they borrow
can only then will they borrow
can only then will they borrow so being responsible that business has
so being responsible that business has
so being responsible that business has lost a lot of money and will continue to
lost a lot of money and will continue to
lost a lot of money and will continue to do so if it continues to behave
do so if it continues to behave
do so if it continues to behave such irresponsible ways and lastly let
such irresponsible ways and lastly let
such irresponsible ways and lastly let me give you a couple examples are being
me give you a couple examples are being
me give you a couple examples are being responsible to the community and to the
responsible to the community and to the
responsible to the community and to the environment supermarkets in the UK over
environment supermarkets in the UK over
environment supermarkets in the UK over the last ten years have driven a serious
the last ten years have driven a serious
the last ten years have driven a serious reduction in the quantity of waste that
reduction in the quantity of waste that
reduction in the quantity of waste that they throw away and that waste mostly
they throw away and that waste mostly
they throw away and that waste mostly comes from packaging so they work very
comes from packaging so they work very
comes from packaging so they work very hard to reduce packaging waste well what
hard to reduce packaging waste well what
hard to reduce packaging waste well what did they find
did they find
did they find you know eliminate plastic make the
you know eliminate plastic make the
you know eliminate plastic make the packaging recyclable reduce the
packaging recyclable reduce the
packaging recyclable reduce the kilograms of packaging per kilo of
kilograms of packaging per kilo of
kilograms of packaging per kilo of product so what they found was anything
product so what they found was anything
product so what they found was anything or reducing waste but at the same time
or reducing waste but at the same time
or reducing waste but at the same time that costs were coming down so when your
that costs were coming down so when your
that costs were coming down so when your costs come down it is good business I
was in conversation with a the managing
was in conversation with a the managing director for a leading IT company and
director for a leading IT company and
director for a leading IT company and this IT company for the last 12 years or
this IT company for the last 12 years or
this IT company for the last 12 years or so has been running a community
so has been running a community
so has been running a community volunteering program employees go out
volunteering program employees go out
volunteering program employees go out and perform voluntary service either
and perform voluntary service either
and perform voluntary service either teach in a slum school or go clean some
teach in a slum school or go clean some
teach in a slum school or go clean some streets or work with handicapped people
streets or work with handicapped people
streets or work with handicapped people or blind people whatever it is that they
or blind people whatever it is that they
or blind people whatever it is that they choose to do the company allows
choose to do the company allows
choose to do the company allows employees to participate in this
employees to participate in this
employees to participate in this voluntary activity over the last 12
voluntary activity over the last 12
voluntary activity over the last 12 years
years
years he said the percentage of people
he said the percentage of people
he said the percentage of people volunteering has gone up from something
volunteering has gone up from something
volunteering has gone up from something like 5 to something like 45% more and
like 5 to something like 45% more and
like 5 to something like 45% more and more people are volunteering from within
more people are volunteering from within
more people are volunteering from within his company now one of the big issues
his company now one of the big issues
his company now one of the big issues with IT companies is attrition staff
with IT companies is attrition staff
with IT companies is attrition staff join them staff leave them and every
join them staff leave them and every
join them staff leave them and every time somebody leaves
time somebody leaves
time somebody leaves you’ve got the extra costs of hiring a
you’ve got the extra costs of hiring a
you’ve got the extra costs of hiring a replacement training them bringing them
replacement training them bringing them
replacement training them bringing them up to speed and so on so attrition is a
up to speed and so on so attrition is a
up to speed and so on so attrition is a big cost to the IT industry and what he
big cost to the IT industry and what he
big cost to the IT industry and what he said was two interesting things one he
said was two interesting things one he
said was two interesting things one he said my attrition rates are half those
said my attrition rates are half those
said my attrition rates are half those of the industry so in the industry at
of the industry so in the industry at
of the industry so in the industry at that time the IT industry at that time
that time the IT industry at that time
that time the IT industry at that time was something of the order of 18 to 20
was something of the order of 18 to 20
was something of the order of 18 to 20 percent per year and he was something
percent per year and he was something
percent per year and he was something like 9 or 10 percent but
like 9 or 10 percent but
like 9 or 10 percent but that amongst the people who volunteer my
that amongst the people who volunteer my
that amongst the people who volunteer my attrition rates of 4% so here was a
attrition rates of 4% so here was a
attrition rates of 4% so here was a company which was doing community
company which was doing community
company which was doing community service this is before the CSR Act came
service this is before the CSR Act came
service this is before the CSR Act came in allowing its employees time they were
in allowing its employees time they were
in allowing its employees time they were working volunteering on company time
working volunteering on company time
working volunteering on company time allowing it its employees at the time
allowing it its employees at the time
allowing it its employees at the time but it was reaping big-time business
but it was reaping big-time business
but it was reaping big-time business benefits so being responsible for the
benefits so being responsible for the
benefits so being responsible for the community was good business for this IT
community was good business for this IT
community was good business for this IT company so but this is all about big
company so but this is all about big
company so but this is all about big business what about us you and I we may
business what about us you and I we may
business what about us you and I we may or may not be in a business remember or
or may not be in a business remember or
or may not be in a business remember or may not be running a business women just
may not be running a business women just
may not be running a business women just be employees we may be self-employed how
be employees we may be self-employed how
be employees we may be self-employed how does this good business thing extend to
does this good business thing extend to
does this good business thing extend to all of us well think of this share
all of us well think of this share
all of us well think of this share stakeholders as an individual my
stakeholders as an individual my
stakeholders as an individual my stakeholders could be my family my
stakeholders could be my family my
stakeholders could be my family my parents my wife my children my friends
parents my wife my children my friends
parents my wife my children my friends my community my environment and can I
my community my environment and can I
my community my environment and can I think of how my behavior can impact that
think of how my behavior can impact that
think of how my behavior can impact that stakeholder or individually or collect
stakeholder or individually or collect
stakeholder or individually or collect and if I can then I may as well become
and if I can then I may as well become
and if I can then I may as well become responsible for that stakeholder and in
responsible for that stakeholder and in
responsible for that stakeholder and in the context of the individual I would
the context of the individual I would
the context of the individual I would say being responsible is a good life
say being responsible is a good life
say being responsible is a good life thank you
”
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