Anurag Jain's Blog on Bangalore Events, Travel, IIM Bangalore, IIM, IIMB, Management

Friday, March 18, 2005

Posted 8:42 AM by Anurag

Management Talent

As the placement season goes on around the b-schools, I wonder about the dream jobs students have in mind. Usually, the choices are: To be an I-Banker, a Strategy Consultant, an IT Consultant, A hardcore (read FMCG) marketeer, and so on. So far so good. Now, let's look at the firms that come calling. All the companies that come for campus placements at b-schools are doing booming business, and hence they need more management grads to grow the business to even greater heights. Fair enough. But, wait a minute. What about the companies that are not doing well? Companies that are either almost dead, or on the verge of getting there? In nutshell, firms that are the poor corporate cousins. Consider a few once-great corporate names:
# BPL. # Mafatlal. # Bombay Dyeing. # Modi Group. # Videocon. # Any other supposedly corporate basket case you can think of.

To make the point clearer, these are examples of firms that MBA grads wouldn't touch with a bargepole. Isn't that ironic though? Don't you think that the firm A which is not doing all that well, needs more management talent than firm B which is doing soaring business? Then why don't some management grads consider opportunities with these firms as a challenge? Whatever happened to "When the going gets tough, the tough get going"?

Well, you are right, there are reasons. 1) Bleeding firms obviously don't come to campus placements. But does that stop students to approach these firms? 2) Also, if you think companies-in-red can't pay well, think again. Mind you, I am not talking about charity or social work here. Still, more than money, this is about challenge, and about proving your management skills. 3) Third valid objection could be that the firms in red most probably already have management talent. True. Probably all these and other companies in question have their share of MBAs, including from top management schools. But, hey, young blood and fresh perspective can only help.

Another point of view could be that Strategy Consulting (think McK, BCG) firms exist for this very purpose: for providing management talent to turn around in-the-red firms. Two points here: a) But, at what cost? Management Talent on contract is much more expensive than In-house management talent. And still, the consulting firm doesn't fully understand the intricacies of your business. b) Usually, consulting firms have more of a validation value than the content value: Outsider's opinion is more agreeable than insiders'. So with this consulting perspective, MBA grads have a choice: a) Join a consulting firm and consult sick firms, or b) join a sick firm itself. Which option is more rewarding in the short-term? Which option is more rewarding in the long-term? Take a guess!

But hey, with all the euphoria and dreams around placements, this all sounds like recommending a healthy man to go to the hospital! Never mind. These are just some random thoughts, not incarcerating anyone, and certainly not prescribing anything. Just wondering aloud.. My bad.

In a not-exactly-related theme, I came across a really neat statement about opting neither of above options, i.e. Entrepreneurship, in the latest (21 March, 2005) BusinessWorld India article: "But what about those who fool themselves into believing that getting placed at X company is their dream? And not just a job which pays enough to keep them from ever dreaming? "

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