My Journey As Consultant - 9

Overcoming Adverse Market Conditions

 There are times when unfavorable external conditions lead to setbacks.  I faced this during the recession that followed acceptance of the Mandal Commission report by the Government of India in 1990, which resulted in political and social turmoil and, in turn, to an adverse impact on business activities across the country. I was pushed back so strongly that I ran out of money and had to even think of selling my car to generate cash. My wife's  modest income was just enough to cover the house rent and a little of the basic monthly household expenses. In those trying times, I took decisions that not only helped me tide over the situation but set me up for rewarding growth once the economic turnaround took place and liberalisation ushered in a new era of economic growth. Here briefly is my journey in those rather difficult days. 

Business conditions in Hyderabad were no exception to the recessionary conditions that gripped the country and suddenly I found that many of my regular clients were facing financial problems and were unable to either pay me or commit to new assignments. During this period, my consulting cash flows came down dramatically and I had to dip into the savings created from my marketing agency business to run the day-to-day expenses of my home. 

In the process, I was open to the idea of doing any legitimate business activity that  could bring some cash into the kitty. Since I had a marketing background, most of the ideas that came my way involved helping businesses to get orders leading to some commission income, but in the depressed market environment that was proving impossible. 

Around this time, I came across an advertisement from Datamatics Direct that they were looking for Marketing Franchisees in major cities including Hyderabad. Datamatics Direct was a direct mail advertising service provider promoted by Datamatics Corporation, known for their pioneering computer services in the mainframe era and an established player as a Registrar for shares. They had appointed Dilip Thakore, the founding Editor of Business India and an author, as CEO and he was looking for individuals who were self-employed with good professional background for this role. He promptly responded to my application and met me in Hyderabad and decided to appoint me as their franchisee for Hyderabad and the rest of Andhra Pradesh. 

Datamatics started this business based on two considerations. They had a huge database of investors and, with their strong background in computerisation, could prepare mailing lists which could be used for targeted direct mail campaigns. At that time, the concept was totally new, and part of the franchisee’s role was to educate prospective clients, both marketing executives and ad agencies, on how to use this medium of direct mail advertising effectively. 

It was an exciting prospect. In marketing, there is a concept called loss leader. Certain products and services are deliberately marketed at a loss, to help sell other products which give profit. For me, marketing direct mail services was my loss leader. I realised early that, unlike Mumbai, Delhi and Chennai, Hyderabad was not known for large corporates spending much on advertising. The earnings from this business were consequently not large but it gave me the opportunity to interact with large corporate clients and ad agencies in Hyderabad. During these interactions I found that I could also promote my consultancy services as an add-on value, which would help me market my consulting business when the economy turned around. And this approach really worked, as I got introduced to many large corporates in Hyderabad who engaged me for their direct mail campaigns using Datamatics Address Lists and later became my clients for my consulting business when the economy was opened up after 1991. Some of them include Gati, Apollo Hospitals, ITW Signode, Hyderabad Batteries Group, etc., and I shall discuss the specific assignments from these companies in my future posts. But it is important to note that having worked with Datamatics gave me a reference point later when I saw opportunities for consulting while the  corporate segment was reeling under global competition. 

During this period, I also got some unusual assignments from some of the contacts I made while promoting direct mail advertising. One of my friends, who was running a cinema theatre in the heart of the city but had closed it down, wanted to offer part of the space available in that theatre complex to promote building materials as a permanent display centre. He engaged me to help identify the prospective building materials manufacturers across the country and persuade them to take space for display as per a display plan we had designed. While the idea was novel at that point of time and many companies showed interest in the idea, when it came to making firm commitments they did not come forward to walk the talk. After a few months of running around, we decided to drop the plans as we realised that the idea was probably ahead of its time.

Another engagement was to do head-hunting for the newly-formed agri products division of ITC Agro which had plans to go into the seeds business in a big way. I was introduced to this group by the local head of a national ad agency which was handling their account. ITC engaged me to go to the heartland of the seeds business, at that time based out of Aurangabad and Jalna, identify professionals working in the many seeds manufacturing and marketing companies there, and get them a list of of such professionals who were open to the idea of working for a multinational company, without naming ITC. This was a real challenge; I had to concoct a story about a Dutch multinational who was interested in setting up shop in India to get some of these executives interested in a change in their career so that I could finally give ITC a list. 

Another assignment was organising an exhibition for the Hyderabad Automobile and Components Dealers Association. This body was doing it for the first time and they needed someone who could guide them. I was introduced to their president and secretary who, after discussions with me, decided to engage me for this assignment. The concept of organising exhibitions and fairs was popular in big cities like Mumbai and Chennai but for Hyderabad this was new at that time. Even for me, this was a totally new experience but, having worked earlier on the building materials display centre concept, I had established some contacts with people who could supply materials and set up stalls for such exhibitions, and the association itself took the responsibility of getting their members to participate in taking stall space for the two-day fair. A nice learning experience!

I also got an assignment from Coromandel Fertilisers to conduct a market survey for a new combination of fertilisers they were planning to launch in Andhra Pradesh, and a marketing audit for Dyanora Lamps based out of Chennai which had launched incandescent bulbs and tube lights in the southern market but was making no headway in a highly competitive business.

As one can see, I was willing to do any kind of assignment to earn some money during this tough period and that kept my body and soul together, with some support from my wife who could contribute from her earnings to meet the family budget. During this period, as mentioned before, my computer associate was becoming restless and decided to move to the USA and I realised that I would have to manage without a good associate in that area of expertise which was growing in importance. However, with time, I did manage to find others who had the necessary background to back me up when needed in this area.

In the next  post, I shall narrate the story of my transformation from Jack-of-all-trades to a specialised service provider in organisational change management post 1992. For that to fall into place, I will discuss two major assignments I did around 1992 which paved the way for this.

My Journey as Consultant - 8

 Interesting Experiences from Providing Consultancy as a Service

I feel immense satisfaction when I look back at a rewarding and successful career in management consulting. As an independent consultant, I sometimes had to juggle time between projects and, at other times, wait expectantly for the next project to come my way. A notable feature was the wide range of interesting projects I got from diverse industries. These projects brought out the best of my training in holistic and systemic thinking that was inculcated in me at IIM Bangalore. I was also able to leverage my networking skills that kept me in touch with a wide circle of professionals from IIT and IIM who gave me valuable insights into industries and technologies that I was new to. What gave me the greatest satisfaction, however,  was the level of value addition I brought into major projects that won the respect and approval of all stakeholders of the project. Here’s a look at some of the projects that I rate high on the satisfaction scale in the early years and my approach to these demanding but absorbing assignments. 

   

Once I became an independent consultant, it became imperative that I had to singly work on getting new assignments even while executing a contract that was in hand. When one is busy working on an assignment, there is no time to look for a new one, and when an assignment gets over it takes some time before getting a new one. Sometimes, more than one assignment used to land up at the same time and it required juggling time between both so as to meet the time deadlines, without compromising on quality. Hence I had to engage an assistant to help me with my assignment and most often I had to choose from fresh graduates from a local management school or  engineering college who were taking up the job offered by me as a learning experience before moving on. I therefore had to be prepared all the time for managing alone. I always managed that, but felt the need for an additional associate to increase bandwidth while helping to grow the business.  

The first lesson in marketing I learnt here was “never say no, I can't  do it”. Therefore I always said I would do any assignment offered to me, and started working on each engagement with an open mind to understand the basic issues and use my training and experience to come up with ideas to deal with the issues. Quite often, I also approached some knowledgeable people from the same industry to get insights before adopting their inputs to my assignments. As I mentioned earlier, I had meticulously kept in touch with my network of contacts from IIT and IIM, along with friends across the country, and these came in useful in many of these assignments. Hence, throughout my consulting career, I had the good fortune to  work across many industries and sectors and sizes of organisations, both Indian and multinational. 

There were two distinct phases in this: the early years between 1983 to 1992, and the later years between 1993 to 2009. I will share some insights from a few interesting assignments between 1987 to 1990 before the Mandal Commission report acceptance put a brake, forcing me to change my approach from 1992. I then had to reinvent myself to be relevant in the post-liberalisation period, which I will share in later posts.

Elico Private Limited: I mentioned Mr DVS Raju, founder and Managing Director of this company, in my previous posts. I was helping Elico to diversify to manufacture personal computers, mainly IBM PC clones. In those days, government policy was to encourage local manufacturers to produce these PCs using imported semi-assembled kits; later, they were to  import only critical components, and combine these with locally available components in a policy framework called Phased Manufacturing Programme. This project required some technical expertise about PCs which I arranged through my classmates from IITB based out of Bombay and Pune who were offering technical services in the field of electronics, and Elico created the necessary infrastructure based on my project report and got the government approval for making PCs in 1987. Unfortunately for Elico, by that time, the market prices for PCs crashed across India due to many small and large players creating surplus capacity. 

Around this time, Computer Maintenance Corporation (CMC), a public sector undertaking, was looking for a local manufacturer to produce some products they had designed and developed for telecom industry applications, and supply them in large numbers within a stipulated period. They had identified Elico as a possible vendor, along with a few others, and invited Elico to make techno-commercial offers. Since I was actively involved with  Elico at that time, Mr Raju asked me to handle this whole project. This required me to prepare an offer document based on the tender floated by CMC, negotiate the final order, procure all the components from across the world, get them assembled and tested as per the drawings and specifications provided by CMC using the facility created for making the PCs, and get the CMC inspection team to approve the finished product before taking delivery and getting the payments. I was indirectly playing the role of a General Manager while having a consulting contract and was, ofcourse, supported by my lone employee, who had an electronics engineering background, and the Works Manager of Elico. This was a one-of-a-kind assignment. 

During the course of this engagement, I had kept the CMC fully informed of the status of progress in our efforts to deliver on time and finally ended up delivering all the units ordered 1 month ahead of time, without any quality acceptance issue. CMC was so pleased that they gave additional orders for the same items, while inviting Elico to produce another product in the same category but with a different design. By this time, I had trained the Elico employees how to handle such business on their own without my physical presence, and I decided to move on.

Udayam: Udayam was a leading Telugu Newspaper launched by the famous Telugu film producer and director, Dasari Narayana Rao. It was a big hit as a new newspaper launched with more than 1 lakh readers right from the start, and was considered a big threat to dominant Telugu newspaper Eenadu at that time. Four years after its launch, however, it was having severe financial problems and was struggling with working capital shortage. A consortium of financial institutions and banks led by Andhra Bank had funded this project based on the reputation of the promoter as a successful film producer and also with some strong political backing. After one of our presentations to the financial institutions on another project, we got a call from Andhra Bank and AP State Financial Corporation asking us to help them conduct a diagnostic study of the Udayam newspaper, since they were not able to understand the underlying issues leading to cash losses despite the newspaper circulation increasing steadily and the advertising revenues showing healthy growth, though the number of debtors in the books was also growing. So the terms of reference were very comprehensive and  literally asked us to investigate if there was any diversion of funds. 

When I met the officials of both the banks and the Udayam newspaper in the introduction meeting, I realised that this was going to be a very complex engagement requiring going into many aspects of newspaper and magazine publication and the business models which dictated the survival of such units. I asked for 60 days’ time and a large fee to cover our costs and, if needed, outstation travel costs to be borne by the client. They agreed to all our terms but insisted that the report should be available within 60 days, as they had to take some major decisions regarding continued support to the newspaper group. 

Whenever I have undertaken any diagnostic study, I have initially spent time talking to the key operating personnel about how the business is done and the issues they are facing in the day-to-day operations. Then I have gone through their financials for the past years, upto five years if needed, to see the evolution of the financial problems as available from the P&L and Balance Sheet. While in many businesses there will be some margin over variable costs, to my surprise the sale cover price of the newspaper and the magazines did not cover even the cost of the paper on which they were printed. During discussions with both internal executives and other industry veterans whom I had spoken with, using my contacts, I also realised that this industry runs on advertising revenues to cover all costs and generate profits in the long run. However, in the initial years, the promoters need deep pockets to  invest in increasing circulation, which in turn only increases the operating losses, before the advertising revenues start pouring in based on circulation figures and other demographic data of the reach. 

There was another aspect of types of advertising revenues that accrue. All casual advertisers had to pay the charges in full as advance to book advertising space, while large regular advertisers who went through advertising agencies got credit facility, with the ad agency guaranteeing payment, if they were the accredited agency. 

In the case of Udayam, they had a third kind of advertiser who booked full page ads directly with the newspaper, when they needed. They were all film producers known to Mr. Dasari Narayana Rao and if the film was successful they paid the money immediately; if the film failed, however, that payment would never come. In the course of understanding this, I had to visit various cities and meet  these film producers who all promised to pay their debts once their next film succeeded. 

Udayam was really faced with a double whammy. Its increased circulation was increasing its operating losses and its bad debts in the books were only making matters worse. So I asked for and got a meeting scheduled with Dasari Narayana Rao and questioned him on his understanding of the economics of running this business. During the meeting he said honestly that he never understood this business like he did the film business, but felt that running a successful newspaper would give him better political leverage. 

After I gave him my analysis of the issues faced by him, he asked me what he should do and I advised him that he should sell out before he lost even more. On the 60th day, I  submitted my report and, in the meeting with the consortium that followed after they read the report, they asked the same question: should they continue supporting the current management? I told them clearly that they should look for a new investor with deep pockets who could fund this venture without borrowing from the banks. After a year, a large liquor group bought over the Udayam newspaper along with all the other publications and, after struggling to keep it running for a few years, closed it down.

Digiana Television: Shortly after I finished the Udayam study, Canara Bank, which was one of the consortium banks, approached us for conducting a stock audit of  Digiana Television, which was already closed and was under Central Bureau of Investigation (CBI) scrutiny for fraud. Thinking it was a small assignment, we quoted a modest fee and started work. Soon I noticed that we had to do a lot of work in sorting out the stocks in the stores, since the promoters had deliberately mixed up all the stocks to confuse the banks. This process required more work to be done and I kept pointing out to the bank officials that we had not provided for this work in our fees and they should get it done from the promoter before we could complete the work. The lower level officials kept assuring us that they would recommend additional payments once the work was done, since they would then have a clearer picture of the extra work done by us, and asked us to complete the audit. In the meanwhile, the CBI officials called us and said that, since there was a criminal investigation going on, we should do a thorough job so that our report could be produced as evidence in the Court for proving the fraud. In good faith, we completed the work, which took a much longer time than we had planned for, and gave our report showing the difference between our assessment and the stock statement issued by the promoter. 

Shortly after that, both the bank and CBI officials called me and suggested that our names would be given to the Court to act as receivers in the bank's recovery proceedings. I politely rejected their suggestions, saying this was not our expertise, but asked them what happened to our request for additional payments. They asked me to meet the Regional Manager, saying only he could take the decision. Typical of a public sector bank, the Regional Manager said that, once a contract had been given, the bank could not give any additional payments for whatever reasons after the work was completed. After a few months, there was a news report about a fire in the godowns of Digiana Television where we had done the stock audit, and the report said the cause of the fire was a short circuit. And, after a few more months, the bank manager approached us again saying they needed additional help in dealing with the same company based on our stock audit. This time I told him politely that we were very busy and asked him to find another consultant.

The above three cases are illustrative of the kind of exciting work of various kinds one gets to do as a consultant, and ended up widening my knowledge and horizons and confidence to take more challenges in the future. However, by the middle of 1990, all this excitement came to an abrupt halt due to the worsening Indian economy and the Mandal Commission report reactions across the country. 

In the next post, I shall narrate how I waded through these tough times.

My Journey As Consultant - 7

A Major Crisis and the Decision to Go Alone

 Four years into my consultancy career, in end-1986, I took the hard decision to leave the private limited company I had formed with two associates and set off on my own. I had no money in my bank since all the billings had been done in the name of the company, and I was only drawing a nominal salary which did not give any room for savings. To take care of my immediate cash needs, I borrowed some money from my brother in Chennai and landed back in Hyderabad with hope in my heart and confidence in myself to tide over this situation. 

It is tempting to form a partnership with fellow consultants as it increases reach and offers higher potential for securing contracts, besides drawing upon varied skill sets. But partnerships work well only when all partners pull their weight equally in growing the business. Many other subtle success factors also come into play. I would always urge caution before you enter into a business partnership. 

Between  September 1983 and end-1986, our billing was growing annually at more than 100 percent a year. Our turnover grew from ₹35,000 for the period September 1983 to March 1984; the next year, we ended with close to ₹1.86 lakhs; the third year we ended with ₹4 lakhs, and by March 1986 we had touched ₹8 lakhs. These numbers were very high in relation to the earning potential in those times of a salaried job.  But  year after year, we were not making any profit on our operations and posting an operating loss. This led to our inability to increase our own salaries as directors and I was noticing that our overheads of operations had grown proportionately. The most disturbing fact, however, was that all the billings during this period came from only Hyderabad, where I was active, and Bangalore where our Bangalore associate was active. Chennai was consistently drawing a blank year after year.

Another fact was that I was getting work from local clients who were already in business and looking for help in solving their problems, whereas in Bangalore the associate was focusing only on getting market surveys and project reports type of work for new units or expansion and/or diversification of existing businesses. There was therefore no convergence of business activities between the three cities and each one was running like an independent operation. 

When it came to Chennai, we found that our associate was not bringing in any business to our company. And his overhead costs, including his salary, were totally funded by Hyderabad and Bangalore operations. Initially, we attributed this to starting troubles, since Chennai was a different kind of market. However, when this continued, my Bangalore associate and I started questioning this at our quarterly board meetings, but we never got any satisfactory answers. At the same time, we noticed that our associate was simultaneously involved in trying to do other businesses locally which were unrelated to the management consulting work of our company. 

Eventually, the first shot was fired by the Bangalore associate in a board meeting that we held in the first quarter of 1986-87 at Bangalore, instead of Chennai where we normally used to hold such meetings earlier. Even before this meeting, in private conversation with me, the Bangalore associate had begun to question the relevance of the Chennai operations, along with the competence of the Chennai associate to be part of our business. 

I realised that this situation could not go on for long and decided to join the issue at this board meeting. Both of us gave an ultimatum to the Chennai associate that if we did not see any progress in getting new business in Chennai and he did not contribute to meet  the overhead of Chennai from local operations, we would have no alternative but to part ways. He made some vague promises and I realised that nothing much would come from there. The Bangalore associate also felt the same and conveyed this privately to me. We agreed to  wait for the next board meeting before making any change.

We had our next board meeting in the beginning of November 1986 and, as expected, Chennai had nothing to show while both Hyderabad and Bangalore showed increased business over the previous year’s levels. In a heated board meeting, I took the decision to quit the company as director right away, while, for some personal reasons, the Bangalore associate waited for another quarter before doing so.

So this was the point where I was forced to borrow some money from my brother and return to Hyderabad to start afresh.

However, the positive factor was that all the clients of the company in Hyderabad were essentially my own clients and I felt that they would be open to the idea of transferring the existing assignments from the company to me personally. I immediately called up each client where I had an active engagement going on and told them about the development. All of them agreed to transfer the assignments and make direct payments to me. For this purpose, I created a new proprietary firm in the name of Shika Management Services, where the name Shika was coined from the first few letters of names of my daughter, Shilpa, and my son, Karthik. I started billing my existing clients in this firm's name and, within a month, started getting healthy cash flows in my business account which made me financially comfortable. Needless to say, these amounts were several-fold higher than the meagre salary I was drawing. I had one employee working for the company in Hyderabad who also decided to come along with me since he realised that without me in the Hyderabad office he would not get paid, as all the clients had moved to my firm. In a short time, I was also able to pay back the money I had borrowed from my brother and move on.

On hearing about my quitting the previous company and starting on my own, two parallel developments took place  which improved my financial freedom. Mr GVS Murthy, who had been aware of what was coming and was trying his best to prevent us from splitting, realised that the decision I had taken was inevitable and came up with a proposal. He had several contacts in the AP state government circles and, since he had worked in AP Scooters as marketing head, they were  suggesting to him to start a consultancy-cum-marketing organisation to help small businesses. 

Since he was busy with his other work, he suggested that I join his business as an independent associate on a revenue-sharing arrangement where I would get 85% of the billing and he would retain 15% to cover the cost of maintaining his office. He also arranged to fund the operational costs upfront, and have these adjusted against the revenues every year to arrive at the sharing formula. He also offered to use his contacts to get new business which I could execute. 

True to his word, very soon he took me around and arranged for promotion of our business idea among the government and financial institutions who gave us quite a few interesting assignments with substantial billings. While I was maintaining my identity as Shika Management Services, the customers he got were billed in his firm's name and I realised that, though this arrangement was financially rewarding, I was not comfortable with losing my identity with my clients. In the long run, it would work against my self-interest. I therefore told him that, while I appreciated his good intentions and timely help, I would like to focus on promoting my firm directly and decided to part ways from that arrangement. He too felt that, since this business was not his primary focus, it was in my best interest to go ahead as I planned and continued  to be my guru and mentor.

I also realised during this time that the revenue generation from small businesses was not adequate to build a good capital base for the future. I was wondering if I could take up marketing, in Hyderabad, the products of firms located in other cities as a marketing associate when another friend approached me with an interesting proposal.

He was working for a large company selling high-end machine tools imported from Western Europe to large public sector projects coming up in Hyderabad. Since he had the necessary contacts, he had been approached by a few companies offering other capital equipment to the same clients and they were looking for a marketing associate to be appointed to do liaison and market intelligence work for them on a commission basis. He suggested that he could get the agency arrangements worked out where I would be the main partner directly working with the company and the clients, and he would be available in the background, with his wife as a partner to share the  gains from the business with me equally. 

So I promoted another firm called Shika Marketing Services as a partnership firm and signed up our first agency contract with this company. Very soon, large tenders were floated by very large public sector companies setting up new  projects and expanding existing capacities, where my principal’s offer was found to be technically and financially competitive. We bagged a good number of contracts between 1987 and 1994 and I generated good income for myself parallelly from this business while consulting was going on at its own pace. I used to tell every one that consulting was my bread and butter while marketing was my cream. 

At the same time, however, I noticed that I commanded more respect as a management consultant than as the owner of a marketing agency. This was always bugging me till 1994 when suddenly the Indian economy was undergoing major transformation and I started getting work from large corporates with high-yield consulting assignments. At the same time, the new projects business for capital equipment dried up in Hyderabad and  I decided to wind up Shika Marketing Services and concentrated full-time on my consulting business through Shika Management Services which grew in leaps and bounds from 1994 till 2009 when I decided to hang up my boots.

In the next post I shall share some cases of interesting work done between 1987 to 1990 when as mentioned before the Mandal commission report acceptance almost destroyed my consulting practice and I had to survive on the money made and saved from the marketing services business till reforms announced in 1992 turned the tide in favour of consulting again. But this also required that I had to learn new concepts and understand continuously the developments in Information technology to be relevant as a management consultant.

My Journey As Consultant -6

 Launch of Personal Computers and My Tryst with Information Technology

Ten years into my consulting career, I realised the benefit of building an associate network of professionals with an array of skill-sets which expanded my reach and business portfolio many fold. The IT Industry was on the threshold of path-breaking changes and many small and medium enterprises saw the benefit of introducing IT solutions for greater understanding of their businesses and the marketplaces they served. My tryst with Information Technology gave me the ability to offer business process management tools and demonstrate tangible results to my clients.  

The advent of computers in the Indian market started with mainframe computers even before I finished my IIT course in 1973, and we were exposed to these as part of our course in Computers. I was  quite fascinated and interested in the possibilities that could open up by the use of computers but did not enjoy programming very much. By the time I finished my MBA from IIM Bangalore in 1976, mini-computers were the rage in the market, and this expanded the user market to mid-size companies. However, this still needed computer-trained specialists to program and maintain them. 

In 1983, IBM launched the PC XT  and shortly after its launch many Indian small businessmen bought the PCs, paying upwards of ₹1 lakh apiece; however, they were mostly used by their secretaries as a substitute for typewriters.

In 1984, during the heyday of the mini-computer, I met Antony Xavier, a self-taught computer software guy. He was a postgraduate in Economics, but had a good understanding  of business and financial accounting. He had just joined a cable manufacturing company where I was conducting a diagnostic study of the unit on behalf of a bank. The owners wanted him to help them start a computer services business and were waiting for some mini-computers to arrive. The company deputed Antony to assist me for my study and to provide all the information that I required. He noticed that I was manually doing some tabulations of the financial data given for the last five years and offered to speed up the analysis, using computers that had arrived by then. Thus started a great relationship with him and his team and  together we were able to offer computer-related services to many small businesses where they already possessed a PC XT or were willing to hire the facility provided by Antony and his team for their use. 

Officially, he became my computer associate  and  his services became part of our consulting work where use of computers became an important tool in running many small businesses. 

Soon Antony decided to leave the company he had helped set up, and started his own outfit with a PC XT facility and developed a Financial Accounting package specifically designed for small business application, which became a big hit  in the Hyderabad market. At one point he had more than 250 regular customers who were using this software aptly named FACTS (short for Financial Accounting Software). Many of these customers were those I had identified during the course of my business development efforts and on many occasions my consulting work led to implementing FACT as a first step to introducing the benefit of using PCs to these small businesses. 

By this time, many locally-assembled PCs were available in the Indian market. Prices of new PCs also dropped to make them affordable, and banks were  generous in funding. In many cases, we were able to get the clients to extend the use of PCs for their material accounting system and, using floppy diskettes, we were able to move the data between two computers running the material accounting and accounting packages. During this period I also started noticing that the use of manpower required to run the operations started reducing, which was a big boon since getting well-trained people to work for these small businesses was always an issue. Later, when I moved to work with large corporates, I could use this  experience effectively while implementing Process Reengineering projects.

Once Antony became part of my associate network, we started collaborating to give composite solutions to many clients and all data analysis  part  of my work was done by his team based on the framework I had given to them; this speeded up our work as it also helped many clients get a better information system established. 

We had a good run for this model between 1984 and 1992. Around 1991, the Government of India accepted the Mandal Commission report and this started a great deal of social unrest across the country. We found that many of our small business clients started losing business in Hyderabad and were not able to pay our service charges. The uncertainty  lasted for so long that Antony realised that, with his talent, he could do better if he migrated to the USA. In 1992 he got a good offer from a USA-based firm near New York City and decided to wind up his business and move on. And I lost the support of a very good associate. 

But soon after he had left India I also realised that there was not much future in focusing on small business clients and I started looking for medium to large clients who could afford my services when the economy opened up. During this period  most of my work also involved helping clients adopt information technology creatively using concepts like Business Process Reengineering, Lean Management and Theory of Constraints and I had to work with new IT specialists who were very happy to piggyback on my consulting work to implement IT solutions. Between 1992 and 2009, when I finally decided to hang up my consulting boots, was also the period the IT industry itself was evolving rapidly with new technologies, and the advent of the internet completely transformed the business environment globally. India was no exception to this trend and this provided more opportunities for me  to work with IT specialists to offer innovative solutions.

Well, I don’t want to move fast into my journey before narrating the progressive changes that were forced upon me in the intervening period, starting with my decision to move away from being a private limited company director to an Independent Freelance Consultant. And subsequently building an associate network that came together to work on specific assignments based on a client's business context and created a business model which sustained the relationships with associates in a mutually beneficial and fair manner while giving value to clients.