How To Derive 65% Of Your Revenue Outside Your Home Country

Posted on : 30-11-2009 | By : admin | In : Business Opportunities, Global

India-based Tata Group chairman, 71-year-old Ratan Tata (pictured), has pushed to expand internationally. In an interview with a WSJ reporter Paul Beckett, he talks about the value of recent acquisitions his firm has made, succession plans for when he retires and how Indian companies can manage their image in the United States.

First, though, a couple of highlights.

When asked about two specific acquisitions:

Tata: If we assume that the global meltdown is a phenomenon that will be over in the near term, I think we will look back and say that these are very strategic and worthwhile acquisitions.

What has he done well?

Tata: One company standout is Tata Motors. It was particularly badly hit with its acquisition of Jaguar Land Rover, which was in trouble because of the collapse of the auto industry abroad. Tata Motors was able to extinguish its borrowing of $3 billion through this difficult period, and most people don’t realize the magnitude of that task. This was executed very quietly and very successfully. It was achieved by raising new capital and it was achieved by liquidating some of the assets. And it was done by increasing margins by doing away with some loose practices.

How are you conducting the search for your successor?

Tata: … I would hope, would have integrity and our value systems in the forefront and hopefully would carry on the path that we have tried to set for the company’s growth.

Interrupt: Amazingly, 65 percent of Tata’s revenues come from overseas.

How have you seen the relationship between India and the U.S. developing both on a government-to-government and business-to-business level?

Tata: … We should not be aggressive and alien to the kind of pain that is happening [in the U.S.]. And we should find ways to be complementary to the needs of U.S. companies and not in fact be a pain to them. I believe we still have the cost advantage which we can use to the benefit of U.S. companies without in fact taking jobs away from them. If we can overcome the difficult period that the U.S. is undergoing, I think we can emerge as a very strong business ally of the U.S.

Read the entire interview here.

How I Hire Programmers

Posted on : 29-11-2009 | By : admin | In : Politics

There are three questions you have when you’re hiring a programmer (or anyone, for that matter): Are they smart? Can they get stuff done? Can you work with them? Someone who’s smart but doesn’t get stuff done should be your friend, not your employee. You can talk your problems over with them while they procrastinate on their actual job. Someone who gets stuff done but isn’t smart is inefficient: non-smart people get stuff done by doing it the hard way and working with them is slow and frustrating. Someone you can’t work with, you can’t work with.

The traditional programmer hiring process consists of: a) reading a resume, b) asking some hard questions on the phone, and c) giving them a programming problem in person. I think this is a terrible system for hiring people. You learn very little from a resume and people get real nervous when you ask them tough questions in an interview. Programming isn’t typically a job done under pressure, so seeing how people perform when nervous is pretty useless. And the interview questions usually asked seem chosen just to be cruel. I think I’m a pretty good programmer, but I’ve never passed one of these interviews and I doubt I ever could.

So when I hire people, I just try to answer the three questions. To find out if they can get stuff done, I just ask what they’ve done. If someone can actually get stuff done they should have done so by now. It’s hard to be a good programmer without some previous experience and these days anyone can get some experience by starting or contributing to a free software project. So I just request a code sample and a demo and see whether it looks good. You learn an enormous amount really quickly, because you’re not watching them answer a contrived interview question, you’re seeing their actual production code. Is it concise? clear? elegant? usable? Is it something you’d want in your product?

To find out whether someone’s smart, I just have a casual conversation with them. I do everything I can to take off any pressure off: I meet at a cafe, I make it clear it’s not an interview, I do my best to be casual and friendly. Under no circumstances do I ask them any standard “interview questions” — I just chat with them like I would with someone I met at a party. (If you ask people at parties to name their greatest strengths and weaknesses or to estimate the number of piano tuners in Chicago, you’ve got bigger problems.) I think it’s pretty easy to tell whether someone’s smart in casual conversation. I constantly make judgments about whether people I meet are smart, just like I constantly make judgments about whether people I see are attractive.

But if I had to write down what it is that makes someone seem smart, I’d emphasize three things. First, do they know stuff? Ask them what they’ve been thinking about and probe them about it. Do they seem to understand it in detail? Can they explain it clearly? (Clear explanations are a sign of genuine understanding.) Do they know stuff about the subject that you don’t?

Second, are they curious? Do they reciprocate by asking questions about you? Are they genuinely interested or just being polite? Do they ask follow-up questions about what you’re saying? Do their questions that make you think?

Third, do they learn? At some point in the conversation, you’ll probably be explaining something to them. Do they actually understand it or do they just nod and smile? There are people who know stuff about some small area but aren’t curious about others. And there are people who are curious but don’t learn, they ask lots of questions but don’t really listen. You want someone who does all three.

Finally, I figure out whether I can work with someone just by hanging out with them for a bit. Many brilliant people can seem delightful in a one-hour conversation, but their eccentricities become grating after a couple hours. So after you’re done chatting, invite them along for a meal with the rest of the team or a game at the office. Again, keep things as casual as possible. The point is just to see whether they get on your nerves.

If all that looks good and I’m ready to hire someone, there’s a final sanity check to make sure I haven’t been fooled somehow: I ask them to do part of the job. Usually this means picking some fairly separable piece we need and asking them to write it. (If you really insist on seeing someone working under pressure, give them a deadline.) If necessary, you can offer to pay them for the work, but I find most programmers don’t mind being given a small task like this as long as they can open source the work when they’re done. This test doesn’t work on its own, but if someone’s passed the first three parts, it should be enough to prove they didn’t trick you, they can actually do the work.

(I’ve known some people who say “OK, well why don’t we try hiring you for a month and see how it goes.” This doesn’t seem to work. If you can’t make up your mind after a small project you also can’t make it up after a month and you end up hiring people who aren’t good enough. Better to just say no and err on the side of getting better people.)

I’m fairly happy with this method. When I’ve skipped parts, I’ve ended up with bad hires who eventually had to be let go. But when I’ve followed it, I’ve ended up with people I like so much so that I actually feel bad I don’t get to work with them anymore. I’m amazed that so many companies use such silly hiring methods instead.

America-style Agribusiness In Africa?

Posted on : 29-11-2009 | By : admin | In : Business Opportunities, Global

Are American companies boosting poor economies by swooping up farmland or is there some other hidden agenda going on?

Read more at “Land Rush in Africa” and weigh in with your comments.

Innovation Matters According to Members of the World Entrepreneurship Forum

Posted on : 27-11-2009 | By : admin | In : Business Opportunities, Global

In follow up to the World Entrepreneurship Forum, Business Reporter Laura Noonan, from The Irish Independent, provides her perspective on the Forum.

Read the article here.

About the World Entrepreneurship Forum

Founded at the initiative of EMLYON Business School and KPMG, the World Entrepreneurship Forum benefits from the high patronage of Nicolas Sarkozy, President of the French Republic. It is the first worldwide think tank dedicated to entrepreneurs, creators of wealth and social justice. It gathers annually more than 100 members of over 40 different nationalities.

For more information: www.world-entrepreneurship-forum.com.

Full disclosure: Laurel Delaney (quoted in article) is a member of the World Entrepreneurship Forum.

Pictured: Patrick Molle, President, EMLYON Business School

Photo credit: Pierto, Sipa Press

Happy Thanksgiving From The Global Small Business Blog

Posted on : 27-11-2009 | By : admin | In : Business Opportunities, Global

Thank you for your readership and comments. Without you, this blog would not be possible.

Have a great Thanksgiving (United States).

The origins of Thanksgiving can be found here. The famous Macy’s Thanksgiving Day Parade is here. And if you ran out of ideas on what to cook, go here!

Enjoy.