VUCA (Volatile, Uncertain, Complex and Ambiguous) world is an opportunity, said Pawan Munjal, MD, Hero MotoCorp. He highlighted five basic principles, which he believed were the core of Hero MotoCorp, and will help any organisation take risks during the current slowdown and sail through VUCA.
Munjal mentioned that a clear vision about the distant future from the beginning is imperative. “A vision helps a company make right choices about strategies and investment. This has helped Hero become a brand. It has helped us take tough decisions,” he said.
Anticipate and embrace change
The next important principle Munjal talked about was that of embracing change. He shared the example of Hero where the company in the year 2000 entered the scooters category in the era of bikes, citing and anticipating a separate growing customer emerging for the product. The company, according to him, is today number two in the scooters category. He also highlighted the advertisements of the CD 100, the company’s vintage bike ads, which spoke the consumer’s voice over petrol issues: “Fill it, shut it, and forget it”.
Know your strengths
Munjal again took the example of his parting with Honda to highlight his third point. He insisted that the company should be aware of its strength. “Research and development, which was primarily Honda’s forte, had to be re-launched. We partnered with the design house. But we relied on our core network of distributors. We leveraged on our core strength,” he shared.
This was the fourth parameter Munjal highlighted. He emphasised the importance of diversification in today’s times and showed how his company lunched operational plants in different markets, citing the needs and therefore, decentralise operations. He stated that organisations ought to be agile to be sustainable in tough times.
Courage and self belief
The last point on Munjal’s list was that of self belief. He took the example of ‘Hum mein hain hero’ ad, wherein the company showcased that every individual is a hero in himself. He highlighted, in order to take tough decisions, companies should rely on their intuition and at the same time trust it.