Another in the #DavidsVsCovid Series. Great to learn from Aditya every single time I have met him in the last. Though today was the deepest set of learnings across all the last times.
Moderated by Karthik Reddy & in attendance, a lot of us on his invite list. Excerpts re what I found most relevant/ super useful:
What is that one big objective that you are chasing?
With Indigo: Scale of Market, Southwest example
The drive towards larger goal + thought process around ‘Why’ – should be translated to every single employee over the years
Low cost has nothing to do with low quality
Stupid Q: what customers want?
Right Q: what customers need & what are they willing to pay for?
TALK ABOUT WHAT THE CUSTOMERS “REALLY WANT”
^^ this example weaves in beautifully with how we @leverageedu rebranded our entire narrative to focus on the “goal” – fit us: crossing the line / what’s next in higher ed for the student / simply “getting in” to the University
(a) those who are able to focus on their core competency,
(b) solving a fundamental need of the market,
(c) be able to come at an affordable price range / reinvent their cost structure
.. are the ones who are going to be successful
Competitive Advantages Vs Structural Advantages
^ problem with competitive advantages is that it’s a rat race – and even if you win, you are just the fastest rat. A more competent management team can beat you out.
Ve Structural Advantages are those that a competitor can watch but not copy or not copy straight away – aka “what the hell just happened to us”
(Eg Indigo buying those planes ✈ in 2005)
⭐ WHAT IS THE MOAT?
^ build Structural Advantages
👆🏼deep bets when you have fundamental beliefs
The best companies take time: to be young and enthusiastic, not young and impatient
Q: Whether we need to scale, when we need to scale up, & why we need to scale up? << should be chasing the fundamentals of the business — what is that scaling doing for you: (a) reducing cost structures, or (b) building a moat, (c) creating operational efficiencies ..
👆🏼imp: need to know when to run that sprint within a marathon
Important to have periods in business where there has to be deep focus on building consumer insights.
2014 Story: About taking airplane deliveries not all at once, but staggering it in batches of 10-12 every year. < this was important not to conserve capital / cash, but “focus on building internal processes / improvements / giving that experience to the team” + “focus on external conversions – with the authorities + GMR, to get ready for that scale” —- and only then did they move towards the big scale of doing one plane/week // 60 planes a month etc.
♟Business with most shock will trigger the fastest
♟Anything with discretionary spending will take more time to recover
>> Govt will play a larger role post this / and not in a bad sense; government will think more about how to prevent the next crisis
>> Countries will move towards brig more self reliant / – which will create opportunities for domestic companies given the consumption scale in India.
⭐ Businesses with high variable cost need to be mindful of it — imp to play with it in the present to make it work for you long-term.
Culture is set top down. Burden on leadership. Need to set the right examples always.
👆🏼story about dress culture > why are operational folks in full make up, tied up – but corporate employees in top neck; why are trays and planes supposed to be clean but employees’ desks, whiteboards and chairs against walls taking off the plaster, not?
👆🏼founder / CEO’s ‘culture responsibility’ to expect things only that they DO themselves — building systems and processes that celebrate acceptable behaviour ⭐
✈ recognising and rewarding acceptable behaviour
🌟 Extremely Important – know who is the best at what, and that independence + respect, for who is the best in that area, needs to be built within a management team