Joys of being
the India RGM
India RGM — why is it important to discuss
India Regional General Manager is an aspirational end goal for most working professionals in India. Consciously or subconsciously, leading a (part of) MNC resides in our psyche. As teen-hood weans off and allures of exploring space, flying jets, and representing India wither away, making corporate honchos is one of the ambitions that stays pervasive. Hiding in plain sight, it is an important career destination.
This blog is a tribute to ‘India RGM’ tribe — inspired in equal amounts by my first-hand experience of working alongside Uber India leadership and by equally inspiring stories from RGMs across MNCs in India. For it is only fair, that I present a hitherto un-mentioned account of the trials and tribulations awaiting the hot-seat. I hope this note acts as a catalyst for all future and worthy aspirants in their quests.
We live in sensitive and sensational times, hence caveat emptor:
- Blog is an attempt to celebrate incumbents and inform aspirants. Construing anything else will be your sole imagination :)
- All information (here) is publicly available and verifiable
- Anecdotes may resemble Uber, but in no way are an indictment of the company or its business practices
India and India RGM — A brief (corporate) history:
Let us begin with MNCs and their love for India. India continues to be an enigma for most corporate boardrooms. One one hand, it offers a thriving market — Billion+ consumers, booming economy, deepening smartphone penetration, cheap+fast internet and burgeoning talent. On the flip, age-old pandemics persist. Mistrust aka corruption, bureaucracy, economic inequity and inadequate infrastructure continue to hold global CEOs in a constant tailspin. Simply put, emotions oscillate between fear of missing out or coming in too early. Very few get India right, at least the first time!
Amidst the din, how do you know what is global’s true stand on India? Trick is to observe the CEOs' actions and not their words. For example, take Tim Cook seriously when he does this and not when he says this. #SkinInTheGame
Global CEOs patch their conundrum, through a carefully anointed position called India RGM. If India's role in global portfolio is unclear, it is natural that the role of India RGM is also in constant flux. For he is not only a custodian of our chaotic present but also the harbinger for future largesse.
There exist 5 hard problems that make this role uniquely difficult. Let us unpack them individually:
A. Market
India is a hard market. This is how Investopedia defines market:
“A market is a place where two parties can gather to facilitate the exchange of goods and services. The parties involved are usually buyers and sellers. The market may be physical like a retail outlet, where people meet face-to-face, or virtual like an online market, where there is no direct physical contact between buyers and sellers.”
By above definition, creating a basic market in India itself is a challenge. India is effectively three countries residing within one. Sajith Pai (Blume Ventures) imagines it well here, my guestimates are slightly different (table below). Bottom line remains same. Do not believe me?
Stand atop any high-rise (e.g. Antilia balcony) you would see the three sections in unison (Peddar Road, YMCA, and Nagpada)
Creating scale in India is difficult — predominantly owing to a small top of the pyramid. India has just 15mn households (HH) in high-income bracket vs 50mn for US. Global trade means cost of core raw materials i.e. fuel, chemicals, construction material, metals remain the same for US or India. Thus large up-front costs, with shallow paying propensity, makes subsidies inevitable. Minimum viable scale takes longer to reach forcing most MNCs to operate in deep red for years at stretch. Red is not a preferred colour in boardrooms. It requires extreme conviction to continue pushing against an unsure board, especially when viability and visibility both are uncertain. Champion RGMs are forever championing India.
Take away #1: Unwavering conviction on India is hallmark for all great RGMs. Anything lesser, it is futile to even start.
B. Product/ Market Fit
If Indian market is hard, PMF is harder. MNCs (especially western) fall prey to “airdropping” their proven models in India. Works like a charm for first 10mn users but quickly loses steam as deeper penetration is mandated. Getting PMF in India is non-trivial and definitely not inane shipping of “Made in US” products to Indian hinterland.
Why non-trivial? Refer to above table, for 90% Indian HHs discretionary spending is still out of scope. Savings rate is high, Indian middle class is premised on frugality and prides on saving for the future. India still values money over time. Adam Smith’s work on division of labour is yet to take full shape beyond first 20mn households. For them time is aplenty while money is scarce. Trading money for time is actually a societal and personal sin. My father, till date feels Uber is a luxury; INR 150 Uber ride over a hitch-hiked INR 15 bus ride is blasphemy to him.
To understand India best, it is most efficient to learn from people who know India best. Who better than our PM Shri. Narendra Modi. He summed nation’s spirit aptly in his 2016 meeting with our then (and beloved) CEO Travis (below):
“Indian consumer is sophisticated and the hardest to win. You need to deliver the highest quality at lowest price. This is the only way to Indian hearts and wallets”
“Value for Money” is the common trait that binds all winning Indian MNCs. Maruti Suzuki, Xiaomi, JCB, OnePlus, recently now Miniso and Decathlon are a few examples that I can see from standing in my balcony.
For each winner, there are at least a dozen also-rans. And behind every also-ran, is an Indian RGM who could not run hard enough. Most companies reject India for shallow demand pool. Great RGMs know — India is not demand constrained, she is supply constrained at the right price point.
Take away #2: Great RGMs do not take product<>market fit as a given. Instead, they define PMF for India by being glued to the ground and continually iterative.
C. Team/ Market Fit
Matrix organizations are widely celebrated. MNCs love thy matrix organizations, it is their invention after all. All cross-functional teams reporting to HQ. Functions get depth in execution and global leverage. Even I fell in love with the matrix construct back in school.
Unfortunately, they fail miserably for India. I say this with utmost humility having worked through it over last many months at Uber. Where lies the trouble?
For tech MNCs in India, PMF is not a given. Rate of iteration is the single biggest determinant for how well the company will do. Rate of iteration, in turn, is sharp decisions and swift execution. For MNC RGMs, reporting is often dotted and not direct. Heads for marketing, support, legal, policy, communication, tax, business development, finance, even facilities often do not directly report to him. Last thing she needs is 10 pocket vetos (on her regional leadership) for each new bet. Even worse, RGMs more often than not reports to APAC and not the global CEO further weakening her manoeuvrability. What she needs are strong allies and speed; definitely not democratic consultation. Matrix organizations are opposite of speed. Premised on British imperialism they are designed for ease of control and command. At a time, when India is undergoing rapid economic metamorphosis the last thing you need is clinginess to age-old hysteria.
An astute RGM understands the balancing act between corporate ethos and the need for hard, swift decisions. She understands people, she understands ambitions, she understands ego, she understands the gossip vineries. She emerges as their natural leader through tact, wisdom and empathy.
Take away #3: Indian RGM is a stateswoman par excellence. She communicates often, communicates in advance but communicates decisively. She is the uniter-in-chief.
D. Indian Entrepreneur
Entrepreneurs form the backbone for capitalism. In India, entrepreneurs also have an additional responsibility for nation-building. From JRD Tata to Vijay Shekhar Sharma, entrepreneurs have always stepped in when government efforts fell inadequate. My last 4 years in tech (Uber + UrbanClap) have further fortified that belief; tech will plug India’s structural inadequacies.
With so much riding, the existing Indian entrepreneur is an insatiable beast — with ability to summon insurmountable willpower and inordinate following. The entire world is waking up to the quality of Indian leaders and their leadership style. Gone are days when Indian enterprise caved in or ran to government’s shelter in face of MNC onslaught. Like Kohli’s India, today’s founder does not back-off from a fight. Heck, he pro-actively seeks one.
Why should he not? Historical MNC moats are receding:
- Access to capital — large $ balance sheets, an erstwhile deterrent no longer holds true. 30+ Indian companies hit “unicorn” status in last 5 years. They are now outgunning their global counterparts. Simple yet powerful example: Shohoz, a distant 3rd in Dhaka’s ride-hailing game raised $15mn in fresh funding. $15mn for just Dhaka by the distant challenger. Let that sink in.
- Access to tech/ talent — Great Indian brain drain is stalling, if not reversing (yet). The American dream is losing its sheen. Unless tech involves flying taxis or automated kitchens it is worthwhile to have it built out of Bangalore than Bay area. Not convinced, look at how Swiggy+Zomato are leading the world on product thinking.
- Hustle/ Rate of iteration — Indian challengers to famed tech behemoths (Oyo, Ola, Swiggy, Zomato, Flipkart, Freshdesk, Hotstar) now lead the charge on emerging market innovations. What they are building will not only help in India but will also be portable for all emerging geographies.
Successful Indian RGMs match the Indian entrepreneur on energy and not exuberance. While entrepreneurship is premised on making the iron hot by striking it, CEOs like seasoned blacksmiths know how to make it count with a single strike. They are supremely aware, understand their strengths and work well under constraints.
Take-away #4: Successful RGMs operate like Zen masters. They do not get excited by short-term wins and are non-yielding when tide turns. Calm, measured and meticulous — they provide the immovable objects to the indefatigable spirit of the entrepreneur.
5. Global HQ
By now, I hope you can imagine the RGM is exhausted. If figuring the market, marking his PMF, building consensus within his A-team and fighting the Indian entrepreneur was not enough; she needs a hefty reserve of willpower to surmount the biggest beast. Also, called global HQ. Global HQ means different things for different companies — for manufacturing it is R&D, brand for FMCG and for tech, it is ‘Product’. In short, this team (set of teams) represent global bottleneck. Something that needs to factored in before every major decision. For tech companies, we shall focus on Product.
Product prioritization is premised (rightly so) on a simple heuristic known as “impact” vs “effort”. India unfailing falls in the least favourable quadrant. We offer low revenue contributions (<10% global revenue) but demand high degree(s) of customizations. Product managers are genomically coded to downrank these requests. A recent strain they have developed is called Data Science (aka AI, ML). I pride myself on being a math person myself and have a special equation to help explain Data Science for Indian context.
If !CS then DS=BS
English translation: Devoid of common sense (CS), data science (DS) is bull shit (BS). Let me out my most unfavourable view: Data is not a moat. It is definitely foolhardy to assume you will win in India on math. Applying data tools in absence of Indian context is much like a toon terrorist firing a heat-seeking missile on his own canopy. Tragic yet comic. I know this is hard to digest. Let me give examples.
a. Airbnb: For all their pricing magic, continue to remain irrelevant in India. Unlike Europe, Airbnb is unable to convert discovery to bookings.
b. Netflix: We all love Netflix. Their recommendation engines are the stuff of legend. Yet Netflix remains largely unaffordable to most Indian consumers. Yet, we all use it. How? Because we believe sharing is caring.
c. UberEats: Uber revolutionized “on-demand” transportation. We all fell in love with the car moving towards us. It took an insane amount of engineering and data heft to ensure the car stayed true to the track. This magic (among others) is not portable for food. Selection, reliability, and restaurant partnerships are fundamentally different skills that UberEats in India (and globally) is learning the hard way.
I remember my previous boss telling me,
In games of life, where you play is (statistically) 4x more important than how you play.
The Indian RGM always has the bigger picture in mind and doesn’t get muddled in HQ pandemonium. She not only knows where to play but also knows how to get HQ to play along. She knows that all fires need not be doused. Certain fires should be allowed to burn, after all, fire is the truest test for organization steel.
Take-away #5: The ultimate India RGM knows the paradigm “think global, act local” is not applicable to India anymore. She not only endorses “thinking local, and acting global” but also knows how to make global act.
The conclusion
I have to concede, I am prone to India bias and am known to delusions of India’s grandeur. I advise you to factor this irrationality into your consumption process.
But truth said India is home to nearly 1 in 5 human on the world. Expecting cookie-cutter plans to work is erroneous. Yes, we do not bring big $’s to global cap table (yet), does not imply $’s should be the only yardstick to evaluate India’s worth. Next decade would witness unprecedented disruptions in the shaping of Indian ‘market’. Fast forward another step, winning India would be portable across all emerging markets.
India is an idea whose time has come. Winning India will not be easy. Your RGM is your best bet. Aspirations of 1.3bn Indian will not be held captive by global bureaucracies unwilling to wake up and take note. India is a legacy willing to be written, helpful to pause and re-think the role you want your India captain to play.
To all great Indian leaders — current and past, my sincerest salutations.
Sachin
p.s. Author's note:
Reading without reflecting is like eating without digesting.
Like any good Indian shop, here my placard: If you came this far, may I engage you further on a moment of reflection? Please share 'the' one thing that you agree or disagree with strongly — I await with great keenness.