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LESSONS FROM A LEGENDARY MANAGER AND MANAGEMENT GURU - C.K.
PRAHALAD
SUMMARY:
The major lessons that could be learnt from CK Prahalad are a. Vision b. Entrepreneurial thinking c. Leadership qualities d. Strategic thinking e. Lateral thinking f. Crisis management g. Social responsibility BIRTH AND ORIGIN OF CK PRAHALAD: Prahalad, the ninth of 11 children, grew up in Coimbatore and finished his schooling and college in Chennai. Prahalad was born in Coimbatore (Tamil Nadu) in 1941. His father was a Tamil scholar and judge in Madras (now Chennai). At 19, he had finished his BSc degree in physics from Loyola College, Chennai, part of the University of Madras, and joined Union Carbide, where he worked for four years. Four years later he did postgraduate work in management at the Indian Institute of Management Ahmedabad. At Harvard Business School, Prahalad wrote a doctoral thesis on multinational management in two and a half years, graduating with a DBA degree in 1975.[8]^ After graduating from Harvard, Prahalad returned to the Indian Institute of Management Ahmedabad to serve as professor before returning to US again in 1977. He returned to the United States in 1977, with an appointment to the University of Michigan's Ross School of Business Administration. He eventually became a tenured full professor, earning the university's highest distinction, Distinguished University Professor, in
EDUCATIONAL BACKGOUND: He Was a graduate of the Indian School of Management (MBA), as well as a DBA from the Harvard Business School. EXPERIENCE:. He worked at Union Carbide and displayed his skills in bridging unions and management teams, and then joined the newly formed IIM Ahmedabad. He worked for Indian Pistons, and subsequently discovered the joy of teaching at IIT Madras and the All India Management Association.
Prahalad was co-founder and became CEO of Praja Inc. ("Praja" from a Sanskrit word "Praja" which means "citizen" or "common people"). The company had goals of providing unrestricted access to information for people at the "bottom of the pyramid" and providing a test bed for various management ideas. It eventually laid off a third of its workforce, and was sold to TIBCO. In 2004 Prahalad co-founded management consultancy The Next Practice, to support companies in implementing the strategies outlined in The Fortune at the Bottom of the Pyramid , which continued in operation as of 2015.[11]^ At the time of his death he was on the board of TiE, The Indus Entrepreneurs. Prahalad was a member of the Blue Ribbon Commission of the United Nations on Private Sector and Development. He relocated to the University of Michigan, with plans of devoting himself to management, education and consulting CHARACTERISTICS OF CK PRAHALAD He was deeply moved by the poverty he saw around him, a fact which he communicated to his own children later in life; Prahalad would often think of where he would want to be 20 years ahead, and then ‘fold the future in’ to present-day activities. He inculcated the spirit of excellence and national pride in his children as well, and his family members and colleagues fondly recall his dedication to work and his ability to talk to everyone -- including junior faculty, janitors and taxi drivers. Prahalad was a dedicated teacher, and would prepare material afresh each semester and do all the student grading himself. He would consistently win best teacher awards, and even unregistered students would sit in on his classes. Prahalad was regarded as a ‘creative contrarian,’ urging people to tap the bright ideas emerging from the customers businesses were meant to serve. His profound influence is deeply acknowledged by his outstanding students, such as Rama Bijapurkar, marketing guru and author of ‘A Never-Before World’ Prahalad was able to make big-picture connections and drill down to their impact on organisational strategy and values. He was a futurist who also believed in making a difference to the world today, starting with the basics of observing, talking and writing. CONTRIBUTION TO INDUSTRY: Prahalad helped turn around the electronics giant Philips, and also highlighted the work of Indian companies like ITC, Hindustan Lever and Aravind Eye Hospital. He deeply influenced a sizable number of global and Indian entrepreneurs, business leaders and senior executives from 1980 to 2010, a period of dramatic political, technological, economic and social change around the world. “CK got business leaders to think in a broader scope, got them to think long term, got them to think in a global context. This is a huge contribution,” says Ram Charan, author of ‘Global Tilt’
MAJOR CONTRIBUTION TO MANAGEMENT EDUCATION AND BUSINESSES:
A. BOTTOM OF THE PYRAMID:
The bottom of the pyramid, bottom of the wealth pyramid or the bottom of the income pyramid is the largest, but poorest socio-economic group. In global terms, this is the 2.7 billion people who live on less than $2.50 a day. Examples of BoP business Microcredit Market-specific products One of many examples of products that are designed with needs of the very poor in mind is that of a shampoo that works best with cold water and is sold in small packets to reduce barriers of upfront costs for the poor. Such a product is marketed by Hindustan Unilever. Innovatio Venture capital Brand Business and community partnership B. CORE COMPETENCIES are related to a firm's product portfolio via core products. Prahalad and Hamel (1990) defined core competences as the engines for development of core products
CONTRIBUTIONSBOTTOMOFPYRAMI
D
DOMINANTLOGICCOCREATIONCORECOMPETENCY
and services. Competencies are the roots of which the corporation grows, like a tree whose fruit are end products.[6] C. CO-CREATION , in the context of a business, refers to a product or service design process in which input from consumers plays a central role from beginning to end. Used more weakly, the term can also refer to any way in which a business allows consumers to submit ideas, designs or content. D. DOMINANT LOGIC relates to the main means a company uses to make a profit. In essence, it is an interpretation of how a company has succeeded. It describes the cultural norms and beliefs that the company espouses. Honors and awards He was the first recipient of the Lal Bahadur Shastri Award for contributions to Management and Public Administration presented by the President of India in 1999. In 1994, he was presented the Maurice Holland Award from the Industrial Research Institute for an article published in Research-Technology Management titled "The Role of Core Competencies in the Corporation In 2009, he was awarded Pravasi Bharatiya Samman. In 2009, he was named Padma Bhushan 'third in the hierarchy of civilian awards' by the Government of India. In 2009, he was named the world's most influential business thinker on the Thinkers50.com list.[15] In 2009, he was awarded the Herbert Simon Award by the Rajk László College for Advanced Studies (Corvinus University of Budapest). In 2010, he was posthumously awarded the Viipuri International Prize in Strategic (Technology) Management and Business Economics by Lappeenranta University of Technology. In 2011, the Southern Regional Headquarters of Confederation of Indian Industry (CII) was named as Prof C K Prahalad Center In 2018, he was named the world's most influential business thinker on the Thinkers50.com list. 10 famous quotes by C. K. Prahalad
- “The essence of strategy lies in creating tomorrow’s competitive advantages faster than competitors can mimic the ones you possess today.”
- “Executives are constrained not by resources, but by their imagination.”
- “Never accept silence as agreement because you’ll regret it later.”
- “Strategy is about stretching limited resources to fit ambitious aspirations.”
- “Under certain circumstances, it offers new, unexpected, or long overlooked value.”
- “There’s a heightened awareness o fthe need to be, and to be seen as, a good corporate citizen.”
- A resource-based theory of the firm: Knowledge versus opportunism. Organization science, 7(5), 477-501.
- Competing in the new economy: Managing out of bounds. Strategic management journal, 237-242.
- Weak signals versus strong paradigms. Journal of Marketing Research, 32(3), iii.
- Competing for the future. Harvard Business School Press.
- Strategy as a field of study: Why search for a new paradigm? Strategic management journal, 15(S2), 5-16.
- Corporate governance or corporate value added?: Rethinking the primacy of shareholder value..
- The Role of Core Competencies in the Corporation. Research-Technology Management, Vol. 36, No. 6 (November–December 1993), pp. 40-47.
- Strategy as stretch and leverage. Harvard business review, 71(2), 75-84.
- Corporate imagination and expeditionary marketing. Harvard business review, 69(4), 81-
- Managing DMNCs: A search for a new paradigm. Strategic Management Journal, 12(S1), 145-164.
- The Core Competence of the Corporation, Harvard Business Review.
- Globalization: The intellectual and managerial challenges. Human Resource Management, 29(1), 27-37.
- Strategic Intent. Harvard Business Review, May-June, 63-76.
- Collaborate with your competitors and win. Harvard business review, 67(1), 133-139.
- The Multinational Mission: Balancing Local Demands and Global Vision.
- The dominant logic: a new linkage between diversity and performance, Strategic Management Journal.
- Do you really have a global strategy?. Harvard Business Review. July-August, 139-148.
- Developing strategic capability: An agenda for top management. Human resource management, 22(3), 237-254.
- Managing strategic responsibility in the MNC. Strategic Management Journal, 4(4), 341-
- An approach to strategic control in MNCs. Sloan Management Review, 22(4), 5.
- How MNCs cope with host-government intervention. Harvard Bus. Rev.;(United States), 58(2).
- The strategic process in a multinational corporation.
- Strategic choices in diversified MNCs. Matrix Organization & Project Management, 73.
REFERENCES:
Van Vliet, V. (2011). C. K. Prahalad. Retrieved [insert date] from ToolsHero: https://www.toolshero.com/toolsheroes/c-k-prahalad/ https://yourstory.com/2015/05/mind-futurist-c-k-prahalad https://en.wikipedia.org/wiki/C._K._Prahalad
