A case study on THE RISE OF THE NEW CORPORATE SUCCESS MANTRA NEED FOR SOFT SKILLS With a special

l reference to EUREKA FORBES LTD. Abstract The success of an individual in the corporate world depends on his Attitude, Knowledge and skills, that he has gained, over a period of time. Attitude has been developed through ones life, depending on his exposure to various culture, value systems, society, etc, while the knowledge and skills are developed through the rigorous training one has to undergo, during his tenure of education. Firstly, it is extremely important for us to understand the basic difference between soft skills and hard skills. Soft skills is a socio cultural term, that is related to an individuals EQ (Emotional Quotient), his communication skill and style, interpersonal skills, social graces, the various traits of his personality, personal habits and behavioural styles, language, social skills, etc. soft skills act as a complement to an individuals existing hard skills, which are the occupational requirements of a job and other professional activities. They are individual attributes of a person that enhances his job performance, level and degree of interactions, between him and his colleagues or customers and boost career prospects. It relates to a persons ability to interact effectively both with his internal customers (Employees and colleagues) as well as the external customers (customers, consumers, etc), both inside the office environment as well as outside it, whereas, hard skills are all about a skill set or a group of skill sets that are required to perform a particular task or a set of tasks. It is good to have a basic level of IQ, but in todays highly competitive world, it is the level of EQ that decides the persons contribution towards the growth of the organization. Since most of todays businesses have a face to face interaction with their customers, it is all the more important to impart soft skills among the employees to gain an unbeatable competitive advantage. These kinds of training will help the organizations to retain their customers in a big way and thus can yield a significant return on investment for the organization, since it costs the companies ten times more to acquire a new customer than to retain a profitable one. In some professions, like the legal service or hotel industry, soft skills are more important in the long run, than mere occupational skills. The professional success of a hotelier can be determined more on the basis of his soft skills rather than mere occupational skills. More and more companies, from various industries have understood this importance of soft skills and thus are making it a compulsory part of their training calendar and it is slowly but steadily becoming an important criterion for selecting the right candidate for the job.

About Eureka Forbes Ltd Relationships have made us reach out to customers in their homes, transforming the way they purify their drinking water and the air they breathe, clean their homes and secure their families so that they lead happier, healthier lives. We have already welcomed over eight million happy families into our family which has also encouraged us to provide opportunities for our people to realise their potential and dreams. Born as a joint venture between the Forbes Group and Electrolux of Sweden, today we are US$ 302 million multi-product, multi-channel organisation, part of the Shapoorji Pallonji Group and with a global footprint. Today, we rank amongst India's Most Admired Consumer Durable Companies and amongst the Best Employers in Asia and India. A case study at the prestigious Harvard Business School and one of the Most Admired Knowledge Enterprises in Asia and India, we have even been featured in the respected Forbes Asia Magazine. Pioneers & leaders in water and air purification systems, vacuum cleaners and security systems, we introduced direct selling in India. We are now one of the largest direct selling companies in the world, cited as a classic direct sales reference by marketing guru, Philip Kotler, in his famous textbook Marketing Management. With total employee strength exceeding 10,000 including an 8000 strong direct sales force, we have operations across 550 plus cities/towns in India. We have since added channels to enhance our reach and respond effectively to the expectations of our customers. Our consumer channel has over 15,000 dealers across 1800 + cities and towns in India to bring a better quality of life to customers who seek the means to safer, healthier lives. Our institutional channel strives to create safer, healthier work environments and enhance productivity and efficiency. We have a water projects division solely to provide large institutional and industrial customers with packaged as well as customized total water and waste water treatment solutions. Our railways division is partnering the Indian Ministry of Railways in its Clean Train Station project - a major initiative for improving train cleanliness through outsourcing and the very best agencies in this field - developing a pilot module to be subsequently replicated in other identified stations. To provide health and hygiene solutions to industrial and institutional customers, Eureka Forbes has formed two companies, Forbes Facility Services Ltd. and Forbes Concept Hospitality Ltd. which offer housekeeping, maintenance and food service solutions. Customers have benefited from increased productivity, higher morale, lesser absenteeism and better customization at their sites. Our latest addition has been a rural channel which is striving to bring safe, affordable drinking water to people at the bottom-of-the-pyramid as well as solution-based community water systems (customized), generating non-agrarian employment and creating rural entrepreneurs. One of the widest service networks in the country backs up our products. Over 5800 company trained technicians operating from over 1,100 service centres bring service to the doorstep, making 25,000 kitchen visits daily. It is estimated that 80% of our customers have a service centre within a 5 km. radius of their machines. These are supported by call centres, customer

care representatives & mobile service vans. Caring for the needs of the customer has led us to a better understanding of the market and made us a true leader in customer care and we have been recognised for our exceptional responsiveness. Our flagship water purification brand, Aquaguard, is virtually synonymous with pure, safe drinking water and continues to be the undisputed leader in the category. Trusted by over 40 million people, it is one of the largest selling water purifiers in the world. Numerous Indian and international accolades have been conferred on it - Superbrand, Best Complete Water Solution Provider (UNESCO-Water Digest), Platinum Brand in Asia (Readers Digest) plus an endorsement by the Indian Medical Association. A one stop shop for water purification an expansive range of technologies and solutions that address every type of water quality and purification conditions, it continues to spearhead the evolution of the category. Indeed, as market leaders, we dont just focus on the top end of the market but have made water purifiers available for everyone. Our AquaSure range of water purifiers provides safe drinking water to homes even without electricity and running water. To cater to the needs of homes and offices and at different price points, we have water purifiers under the Forbes brand available on the retail shelf too. Euroclean vacuum cleaners, with over 3.5 million satisfied customers, is the undisputed leader in the category, having sold more than all the other brands combined. Its product range spans a wide range of technologies and solutions. Numerous Indian and international accolades have been conferred on it - Superbrand, Mera Brand - plus an endorsement from the Asthma and Allergy Resource Centre. It continues to expand and develop the category through the introduction of new technology products in line with the evolving needs of customers and their changing lifestyle. As the leader, we have brought products to retail shelves for customers who seek the means to a clean home there. And we have moved beyond the home with commercial and industrial products. We were the first to introduce the state-of-the-art Euroair Air Purifiers that ensures pollution free homes and today, we also market domestic electronic security systems under the brand Eurovigil. The company has a strong R&D and manufacturing base including a network of water labs across the country named Aquachek. Aquamall, a wholly owned subsidiary of EFL, has the distinction of having Indias first green water purifier plant. (with LEED India Gold certification), at Dehradun, which is the jewel in our network of factories. It can manufacture a million water purifiers of various specifications annually (it has the largest UV water purifier production capacity in the world), harness solar energy and harvest rainwater. In order to tap global opportunities, Eureka Forbes has tied up with another giant in the world of direct sales - Lux International, Switzerland - in a joint venture, Forbes Lux, which now has a footprint across several countries in Asia, Europe, Middle East and South America. For years together Eureka Forbes has become a name synonymous with selling but we pride ourselves in going beyond selling. It is our firm belief that unpolluted water & air is the

birthright of every Indian and with this vision we set up the Eureka Forbes Institute of Environment (EFIE). The institute promotes awareness about conservation & management of natural water & air resources. Our endeavours include Pollution Watch (a tie-up with a prominent national television channel to telecast air and water pollution levels in key cities monitored by the Institute), Euro Enviro Quiz (Indias only environment-centric quiz for school children in association with over 450 schools across India), Euro Ambassadors (enthusing school children to enkindle the environmental spark in their homes and neighbourhoods) and Rainwater Harvesting (enlightening people on how to harness this precious water source in tandem with local bodies, co-operative societies and governmental institutions resulting in over 600 million litres of rainwater being saved till date). Project Jal Amrut has augmented the water resources in drought prone areas through rainwater harvesting with the first projects being in Rural Maharashtra. The Euro School of Environment was set-up to formalize the education movement and give it a fillip. It began with a course on becoming eco-friendly citizens and has since enhanced its curriculum. Our continuous endeavour to create a sustainable environment led us to introduce renewable energy technologies as viable options to communities, providing sustainable energy to meet their energy needs. This is because around 95,000 villages in India dont have electricity and 18,000 of them unlikely to ever have access to the national grid due to their remote locations. Eurodiya harnesses solar energy to light the home and is an alternative to kerosene and electricity, saving fossil fuels. Due to its proximity to the equator, India receives an annual average of 4-7KWh per day for every square metre. This means that certain parts of the country receive more sunlight than what they can use in a year, making it an abundant source of power. However, the challenge was to make the technology relevant for locations where the exposure to sunlight is limited and the electricity is a far cry. It also had to be inexpensive and within the reach of the common man. Eurodiyas novel technology and model design allow storing solar energy for a longer duration thus making it the value for money. Our efforts got a fillip when Indias first solar bulbs with the in-built solar panels were launched. Our goal of providing safe drinking water to each and every individual was credited extra miles with the introduction of solar technology for running the water dispensing units. We will continue to work in the field of renewable energy and other such green technologies. We look forward to working with NGOs, CSRs and other business partners in this endeavour. Our most recent initiative in rural India has been striving to bring safe, affordable drinking water to people at the bottom-of-the-pyramid and solution-based customised community water systems, generating non-agrarian employment and creating rural entrepreneurs. Involvement of the community has been the key and all our projects have been designed to empower communities with local water committees overseeing construction and maintenance of the projects, thereby ensuring their sustainability over the long term. Every project has a health education component as people in the project areas lack a good understanding of sanitary practices. Appropriate technology solutions have helped tackle some dreaded water related diseases ignored for generations. There are more than 70 reverse osmosis and 40 ultra violet water treatment plants in 35 rural and four urban communities. A partnership with world Vision relies on providing water filter units during emergencies with over 10,680 units being distributed to flood affected areas in over six states. A manually-operated filtration unit for emergency use

has been developed. Owned and run by women self-help groups, they generate revenue by charging for potable water provided to the community. The company has been a friend to society including providing safe drinking water to the earthquake and cyclone victims as well as setting up parks for senior citizens where they can relax and recreate. Indeed, relationships spur us to dream of a happy, healthy pollution free world that is built on trust and lasting relationships with our customers. We believe that our bonds will help us grow faster and care for many more families, building relationships that last a lifetime. A true friend for life. Need for soft skills: The functions at Eureka Forbes are completely customer centric and driven by the demands of their customers. There are two main areas , the sales department and the service department. Success of the organization depends on a proper, well coordinated effort between these two pillars of the company. As per Mr. A.V. Suresh There are two different channels in this industry, one is direct sales and the other is retail. Sales and service are the two kinds of key jobs available in this industry. In direct sales there is always an immense need for good salesmen with the right attitude and aptitude to do direct selling. Also, in direct sales, the growth is based on the number of people you have. Its people multiplied by productivity v/s. sales. The need for people is an ongoing requirement in this industry. But, today, getting the right people is the challenge. Direct sales may be an interesting and high paying job, but it is also a tough one as a person needs to be prepared to take rejection from customers. Secondly, the salesperson should be prepared to work hard and earn more. At Eureka Forbes we provide opportunities to people across the spectrum graduates, post graduates, and MBAs. We prefer taking graduates, but we also consider undergraduates if they have the fire in the belly to perform. We, then, train them accordingly.

Skills needed in the workforce

FRIENDS FOR LIFE says it all. Eureka Forbes believes in the phrase that a relationship does not end after a sale. It starts after the sale. Throughout the years EFL had been able to maintain an excellent rapport with the customers as it is of utmost importance for the success of the organization. Maintaining a strong and healthy relationship with the customers require great

interpersonal skills among the staffs, good communication skills and a great set of socially acceptable behaviours. Consumer durables industry will keep growing, thus, it will have a continuous requirement for people. The growth rate can vary from year to year, but, the need for good people will always be there. Today, in international retail markets there is a need for people who have a good personality, can build good relationships, and maintain a pleasant approach towards selling. Nowadays, products are sold through the relationship that we build in a small interaction we have with people. The moment of truth is about five minutes and in this time you need to impress the person to buy the product. Contrary to direct sales, there is a trend on more people getting into retail, but with good qualities in terms of personality, communication and selling skills. In direct sales, as I said, we look for aptitude and attitude, which means an individual, should have a sales driven personality. He/she should be able to communicate well, be aggressive in selling, know how to go about it, and should have the drive to achieve. We also look for trustworthiness in people with integrity since they are going into customer homes and we do not have direct contact with them. We also ensure that the person concerned has good references, too, Mr. A.V.Suresh added.

Specialized skills required in this industry

The electronic field is witnessing a lot of changes in the recent times. With the advent of smart phones, people come to know about different types of products and models, especially of their competitors, and their QR codes. The smart phone technology can read these QR codes and then the customers can directly visit the websites to know the details of other products in a zippy. So, it is of extreme importance for the sales representatives to have detailed knowledge about the competitors, in terms of their products as well as the standard and quality of the services they provide. They should possess the knowledge of availability of resources for tracking, be familiar with handling gadgets, and need to have in depth product knowledge as today there are 10 different models to choose from. These three skills are critical for salesmen to learn, EUROCHAMPS The backbone of Eureka Forbes Limited It's ten o'clock on Sunday morning in Mumbai, and Suresh Goklaney is embarking on a round of sales calls for the Indian company Eureka Forbes. Wearing the signature red ties of its salespeople, Goklaney and two colleagues brave the monsoon rain to trek up six flights of stairs in a building on Malabar Hill, the city's upmarket residential area. Lugging a 13-pound water purifier, they knock on each apartment door until they finally get invited inside.

It's an industrious sight, but even more so when you consider that Goklaney, 58, is the company's managing director. A longtime Indian brand manager, Goklaney goes on monthly sales calls in order to stay connected to the company's 5,300-person sales force. He has good reason for doing so. At Eureka Forbes, the salesman is king. Within Eureka Forbes' tight culture salespeople (about 60 are women) are known as "Eurochamps." The frontline sales force averages age 26, and many are from poor families. New hires undergo three weeks of training, including sections on grooming, product demonstration and closing a sale. After six months or minimum sales of 60 units salespeople are given motorcycles to use for sales calls. Their salary is 60% commission based, with top talent earning up to 24,000 rupees (US $550)per month. Sales overhead may explain the company's modest 7.3% before-tax margin, which Pallonji evidently accepts. Salespeople are made to feel like superstars. A statue of a salesman greets visitors in the company's Bangalore headquarters. Meetings begin with a singing of the "Euranthem," which sounds like a theme song to a television sitcom and includes lyrics such as "We work so hard. We're always on our Aquaguard. Filtering all our worries away as we make our sure and steady way." Every morning employees receive a text message on their cell phone with an inspirational message, quotation or sales talking point. Goklaney says that Eureka Forbes welcomes the influx of global players. The company is already working with two foreign companies to innovate in water purifiers. Whether people end up buying Aquaguard from a giant store or a door-to-door salesman, Goklaney's crew will stay close. After each sale a Eureka Forbes plumber installs the water purifier. Service technicians conduct periodic maintenance. Customers can get their water tested at 15 "Aquacheck" water labs throughout the country. "Our strongest point is to make and grow relationships, he says, "and that is not a replaceable commodity." Through these Eurochamps the company is maintaining healthy and strong relationships with millions of customer across the country. According to some experts from the company, interpersonal skills, along with values, beliefs and attitude, etiquettes, social behavioural skills, etc are some of the most important characteristics and traits, that each Eurochamp possess. They have been trained by professionals, right from Day 1, on various aspects of soft skills and life skills. These training programs are given extreme importance as they feel that relationship building is the key to create a sustainable competitive advantage in the market, especially in todays world of extreme competition.

BETTERING THE BEST - OUTCOME OF EMPHASIZING ON SOFTSKILLS

A classic example of an employee-centric organization which strongly believes in recognizing outstanding performance is Eureka Forbes. Ranked #43 in the Great Place to Work Institutes Study, the company has been a potent nursery for growing people and developing leaders since its inception, making it one of the best employers in Asia and India. From the outset, every employee is called Eurochamp and consistently engaged and motivated through the four pillars of its unique people development strategy - Earning, Learning, Pride and Fun. Designed to enable its people to realize their potential and aspirations, it makes them invaluable partners in progress for they become the drivers of its strategy, forging lasting bonds with customers as friends for life. The only limit to employees earnings is in their minds as it is their performance which determines their earning. Learning has been institutionalized through the Eureka Forbes Academy of Learning and the sharing of knowledge facilitated through Euroshare, its KM platform. The companys innovative practices in the area of Recognition & Rewards such as the Circle of Champions have become benchmark best practices in the industry. Eureka Forbes has even given its people a voice in the running of the organization through a novel body called EuroSenate. This comprises of Eurochamp representatives elected by Eurochamps from each SBU to share their views in the management of the company. To know more about how Eureka Forbes motivates and develops its people, People Matters talks to Suresh Goklaney, Executive Vice Chairman. You just taught 700 students from Harvard your companys sales management strategies. How are these strategies unique to your company and ensure that your sales employees get due recognition and rewards in their jobs? Suresh Goklaney: The Harvard case study primarily concentrated on a unique tool that we have institutionalized at Eureka Forbes called Bettering the Best. This is a diagnostic tool that captures moments of truth (customer touch points) and, in the process, helps our Eurochamps better their productivity and overall performance across diverse facets. It assists out leaders in identifying latent potential for development as well as enables them to understand the strengths and areas for improvement of their people. Compensation for our sales force is squarely linked to performance with fixed and variable components for all levels (the fixed to variable ratio varies for each level). Performance is regularly monitored through our Performance Review and Development Plan (PRDP), which is applicable for all levels of Eurochamps. This unique tool tracks performance not just on sales numbers but on various competencies and developmental milestones as well. We publish attractive bulletins every month that give regular recognition to the top achievers in sales till date. This generates a lot of excitement as sales people vie with each other to find a

place in the coveted achievers clubs - Club 100, the companys most prestigious Champions Club which recognizes the top 100 sales people, rewarding them with a holiday-cum-recognition at exotic locales like Dubai, Macau & Hong Kong as well as the Silver Circle Club, which honors the best among the best in sales and where about 1,000 top sales people get personally felicitated with great fanfare by the Top Management. Five time (consecutive) qualifiers at the Silver Circle Club are honored as Living Legends of the company and earn a week-long trip to South-East Asia. 10 time (consecutive) qualifiers are celebrated as Pioneer Living Legends and rewarded with a trip to Europe. Over the years, these strategies have helped in building and driving the performance culture that Eureka Forbes is known for. Your company gives rewards and recognition to the sales employees right from their 1st sale up to the 500th sale. How do these help in motivating the employees to perform better with each passing sale? Suresh Goklaney: At Eureka Forbes, we strongly believe that if money was the sole motivator for working with us, we wouldnt have retained some of our best people. We are firm believers in the saying Success is directly proportional to the love of what you do. When an employee achieves something extra from others, he needs a pat on the back, an appreciation that lets everyone know that he has done a remarkable job. This is the philosophy at Eureka Forbes that makes our Eurochamps go beyond their roles and raise the bar of performance. The recognition certificates on landmark sales serve this very purpose. They also serve as stepping stones that spur the sales people to cross the next landmark. In fact, each passing sale motivates them to perform better. The Circle of Champions has been specifically created to provide Eurochamps with a continuous platform to pursue higher and higher levels of excellence. It has had a considerable impact on employee retention. On confirmation, a Eurochamp enters the blue level of the Circle and, as her / his performance accelerates, journeys up to the other levels (bronze to silver to gold), earning greater recognition and rewards at each level. Special unique identification has been designed for each level along with training and learning opportunities to enhance performance and growth. The Circle of Champions helps Eurochamps put their careers on the fast track and lets them bring their aspirations and dreams to fruition. Recognition and celebrations are often done in a way such that not only the Eurochamps but their respective families get recognized too. This simple objective makes Eureka Forbes a large family of successful and happy individuals.

Eureka Forbes believes in the overall development of its employees and helps the employees in designing their career path. Ranjan Kumar Ganguly Ranjan Kumar Ganguly joined Eureka Forbes in March 1981. Ganguly Da, as he is fondly called, has the distinction of being the first employee of Eureka Forbes. Starting as an Accountant at the time of the companys inception, he rose steadily up the corporate ladder, ultimately heading Direct Sales for the Eastern Region in 1994. At that time, this region was contributing 7% to the national kitty. Under his able leadership, it grew by leaps and bounds to become the fastest growing region with a contribution of 20% to the national business in 2010. In the interim, the company underwent a major organizational restructuring in 2000-01 and Ganguly Da took over the operations of all business channels and support functions of the region as the overall Region Head. In January 2007, Ganguly Da was given additional charge of overseeing the Direct Sales operations in the Northern and Central regions as well. The year 2009 saw him taking on the responsibility of Service Operations for all business verticals. Customer Service, as a business line, needs deep insight and understanding, along with a commitment to value-driven leadership and a high people focus. With the relentless focus that is so typical of him, he has ensured that all these aspects have been firmly entrenched in the Customer Service & CRM functioning, taking EFL to even greater heights. The host of accolades that the Eastern region has earned over the years bears ample testament to his leadership qualities - Best Region for Accounts four times, Best Region for Service for the last eight years, and the highly coveted Managing Directors Award for overall business excellence four times in a row! This region is also the first in the company to earn an ISO certification for service operations in Kolkata and Bhubaneswar. Ganguly Das core belief has always been a team with a unified focus can achieve wonders. And over the years, this belief has been vindicated several times over. He has been instrumental in developing several leaders of high calibre who are now in senior leadership positions in the company. Today, Ranjan K. Ganguly is part of the Core Leadership Team as Senior Vice President, Customer Service and a critical player in strategic business initiatives such as the implementation of SAP across the country. About the Author: Prof. Rajarshi Chakraborty is the Assistant professor of PEP at IFIM Business School, Bangalore and has over 10 years of experience in training corporate & students on soft skills. He can be reached at raj.c@ifimbschool.com