Key Trends For 2009 by Azim Premji

I am not much of a soothsayer. Given the recent turmoil in business, where the world turned on its head within a matter of a few months, I would like to share a few of the themes that will emerge as I look at 2009.

Customer-centricity: With increased competition for a smaller pie, the customer will demand standards to be raised in terms of quality, cycle time and value expectation. Deliver or disappear, will be the new slogan.

What does that mean for the services organization? I would say that everyone will have to make a quantum leap in each of these areas because they will be moving targets. Creating strategies for them is one thing, but delivering them on the ground is another. Only those organisations that have got their execution engines right will deliver.

Prioritization of resources: Customers will prioritize resources that will make them more competitive or at least help them salvage profitability in the short run. For service organisations, it means that they should focus on high growth markets or growth segments. Simplify business portfolios to areas of strengths. Companies should differentiate and be able to answer what value they bring to the table.

Consolidation: Customers that relied on multiple-vendors will possibly concentrate them into two or three. Most likely, they will be large vendors, provided they are able to stitch together a solution based on all their diverse strengths in a coherent solution for the customer.

Increased focus on measurements: In an environment where competition grows stiffer, every function in the organization will be measured on its contribution to the strategic goals of the business. Measurements will become crisper optimistic; and more focused.

Expect more: Successful providers will have high expectations from their people. In a people driven business, people playa critical role in business. People also account for a high percentage of the costs. It is important to set standards from the top for higher expectations. We must simplify and make the organization lean. We must also build a significant degree of non-linearity.

Importance of corporate social responsibility (CSR): CSR will become an important parameter for an organization to discharge its responsibility. Customers, employees and vendors will want to be associated with an organization that is environmentally and socially more responsible.

Finally train, train and train: This is a great time to build people capability. We must ensure 'that we train the right people in the right areas that impact business. We must get maximum return on investment. Similarly, building for future capability is important. We cannot sacrifice the future for the present. The future will always arrive.

In the end, I would only like to say this.

The year ahead will be tough, to say the least. It is important not to get too optimistic or pessimistic.

I remember the story of a ship that was lost in the high seas. On board the ship, along with the other passengers, were an optimist and a pessimist. The pessimist was the first to get up every morning and say, "Today, we will sink." The optimist would get up a few hours later and say, "Today, we will reach the shores." This went on for a few weeks. Neither the ship sank, nor did they reach the shores. Finally, the passengers got tired of the pessimist who disturbed their sleep with bad news. So, they threw him overboard. Then the optimist continued with his good news. Since the ship did not reach the shores, they were disappointed every evening. So, they threw the optimist overboard as well.

There are two lessons here.

First, it is better to be realistic than optimistic or pessimistic

Second, remember, the optimist was the second to be thrown out.

Realistic optimism will be the key theme for successful organisations next year.

The author is Chairman of Wipro Limited

12 JANUARY 2009 BUSINESS WORLD