Lessons from the sacking of a CEO

The week that passed by was abuzz with the news of the sacking (or so it was announced in the media) of Laxman Narasimhan, who was handpicked for the job by the former Chairman of the Board and Founder of Starbucks Coffee, Howard Schultz.

Laxman has been on the job for a less than 2 years, after he took over full time in Mar. ’23, followed by a 6-month’s immersion period of going through rigorous training across cafés in the US, Mexico, Japan and China, to understand the processes undertaken in the chain that runs over 33,000 outlets worldwide, almost 30% of them operating in the United States.

With not just one but several challenges to face, the ousted CEO was doing good, at least as it looked like supported by corporate PR. 

The Indian-origin professional had earlier worked at McKinsey & Co where he served for 19 years, followed by stints with FMCG powerhouses such as Pepsi and Reckitt, before joining Starbucks in Oct. ‘22. He went on a global tour to acclimatise himself with the way coffee (and other local beverages) are consumed. 

His pitstop in India was in early 2024, when he announced that TATA Starbucks, the JV company would operate over 1,000 cafés in India (from over 400 currently) by 2028.

On social media portals, especially on the professional platform Linkedin, Laxman was a popular figure, doling out various snippets of how his life revolved in the new role.

There were several issues the ousted CEO was working on – labour challenges being the most important one. Over 400 cafés in the US alone have been unionised. The Gen Z and Millennials were not preferring in-café dining as much. 

Digital-first customers as they are termed, ordering online and preferring takeaways were trends being witnessed over all in the Quick Service Restaurant Industry worldwide, especially in the US. The inconsistency of service experience, especially that of its mainstay, the hot coffee was being questioned by ardent consumers of the Starbucks, who have patronised the chain for several decades. 

In a recent video interview to Fortune magazine, when asked about "how does work-life balance look like for a Fortune 500 CEO", Laxman had said, “If there’s anything after 6pm, and I am in town, It’s got to be a pretty high bar to keep me away from the family”.

“Anybody who gets a minute of time after that, they better be sure that it’s important. Because if not, I’ll just wait for another day.”

The role of the CEO is something that every young management trainee, a first time job seeker, looks up to in their lifetime. No matter how small the company, the title of “CEO” is a mission accomplished for several millions worldwide. While many may say they do not chase titles, they do, they certainly do.

The life at the top and in the corner room is complicated, I must admit. 

I have seen in close quarters, the lives of atleast 4 such Executives in my own personal life. They need to look in to various issues pertaining to life – personal, professional, a public life that is useful for business networking and so on.

Yet, the life of an Executive at the top is a lonely journey at best. There are so many things that the Chief Executive cannot speak in public or can confide to anyone, not even with their spouse or close friends. 

There are diktats from the Board or the Management. And then, there are these smallest of things that impacts their popularity among those working for the company. 

As exciting it looks to be, it is one thing to get in to the chief executive socks. 

And to get beaten up by life every other day, yet putting up a brave smile and to keep moving on as though nothing much happened (nerves of steel) – and eventually, a sad, sudden exit such as being sacked (as the media announces), is the least one yearns for!

People, passion and processes

In a recent post on the social media platform X (formerly Twitter), a user from Bangalore posted her recent experience of being a female delivery partner for a day. She chose to work in the “gig economy” at one of India’s top 3 Q-commerce delivery apps, Blinkit.

She narrated the learnings of her day at this part time role in a long thread which gained a lot of attention from many users, including from Blinkit Founder Albinder Dhindsa.

She conceded why she did this trial, that it was just out of curiosity how Blinkit (and other Q-Commerce companies) could deliver orders within just 10 mins.

She highlighted abysmal working conditions at the dark store - a mini warehouse with just a fan, from where delivery partners pick up the stuff, technical flaws, and a few potential improvements in commercial queries such as insurance payouts, how to earn payments, etc.

I initially felt that this was a great PR exercise led by the brand in a surrogate manner for hiring new staff, however when I saw that she had mentioned poor working conditions, I realised that wasn’t the case. The user, who goes by the name Sneha had mentioned that the working conditions were quite poor, without a proper seating place or access to drinking water for the delivery staff.

She also narrated her ordeals getting stuck in the notorious traffic that the Garden city is known for or having to ride through narrow roads and that she apologised to customers for her delayed deliveries.

Sajal Gupta, CTO of Blinkit replied to her a day later that a few enhancements were done in the app, as well as improved working conditions at the dark stores such as putting up seating.

I was curious to note why would a young lady wish to go-the mile to understand a delivery process. When I looked up on Linkedin, I learned that her company is a SaaS platform in warehouse management operations. 

Hopstack, Austin, Texas based company has offices in the US as well as in Bangalore, serving over 25 clients with over 12 mn orders. The company’s key goals include precision in fulfilment coupled with realtime insights and seamless integration.

Now, why I am writing about this episode?

Because I would like to stand up and salute the passion that Ms. Sneha carried in her work. 

While it was her inquisitiveness on how delivery partners operate in a market like India, it was also a very fulfilling exercise to the lady on the professional front, as she could learn first hand what are the pain points that Q-commerce giants in India are currently facing and the associated pangs at the warehouse / dark stores.

Though there are just three top (surviving) players today in the Q-commerce market, such as Swiggy’s Instamart, Zomato’s Blinkit and Zepto, all serving around USD 1 Bn worth of deliveries annually, the space is hotting up with several others pivoting in this format. 

Flipkart has recently launched “Minutes” service, and market is abuzz that Ola (Cabs) is coming back to the delivery business.

Nothing better than to learn first hand at the job role. This professional took that effort, much to the chagrin of her mother as she narrated in another tweet.

Over the years, I have seen so many disinterested staff members who do not move from their coveted seats at workplace and wish to see the world from the little lenses of their eyes. 

First hand knowledge – and it is different across industries – is so vital for professional growth.

Ask any CEO who is leading a large FMCG company today anywhere in the world and these women and gentlemen would have walked the streets, travelled in despatch vehicles and stood beside the shopkeepers to understand how people shop during their formative years.

In my own experience when I used to work for Foodworld Supermarkets around the turn of the millennium, I would stand and observe how home makers, housewives kids and men would shop at India’s first organised grocery retail chain. This was my daily routine from 6pm – 9pm.

When I set-up and ran India’s first airport retail business at Bangalore International Airport in 2008, it was a delight to watch how air passengers would shop, across various categories. There are nights when I have turned up around midnight to witness the shopping patterns of international passengers who were departing from, or arriving in to India.  

However, I have also had the misfortune of working with several co-workers ranging from those with 20+ years’ experience, all the way to freshers and new comers, who prefer the digital route for learning ground realities. 

The result, is that many of them end up suggesting incorrect decisions to the Management, which lead to their, as well as the company’s downfall. 

Ms. Sneha, took the plunge to experiment a gig job, largely known to be a male bastion, all for the love of learning more about the industry she works for. Kudos to her again, her passion and perseverance for taking this initiative.

Thank you, HR

It was a surprise to see Zoho Corp, take up front pages of leading newspapers today (20 May) to celebrate International HR Day. Seemingly, they have created quite a buzz. 

People from all quarters have been wishing their HR Heads and HR Managers and teams through social media and offline. 

Of all the days kept aside for such celebration, I think this one takes the cake (quite literally) since every employee, no matter how senior or junior the person is, always rests back on someone in the HR Team.

From getting travel bills cleared quickly or getting leaves approved, employees always ensure they build a strong camaraderie with the key persons in the HR Team. 

Mentoring (by those in the HR Team) to the others on the Organisation is not a privilege for most of us. 

There are some incredible managers and heads in the HR Team who offer a lot of advisory, guidance and remain a cushion for many in the office. 

And then there are those in HR, especially in the leadership team, who profess something to the employees at large but behave quite the opposite to their own team members! Apathy, I say.

Very few HR leaders whom I have interacted with all through my career have been a guiding light to me. I take this opportunity to celebrate some of them for their affection on me in this post.

Circa 2001, I was almost in tears when I rushed to the Head Office of RPG Retail at the Spencers Plaza in Chennai. 

I was the only Management Trainee who was posted 2,500 kms away from my home – to Kolkata, after I completed my 3-week orientation program. 

I confessed to Ms. Latha Nambisan, GM – HR at the time, that the farthest I had travelled in my life until then was to Madurai or Kumbakonam for family events and to Mumbai just 4 times since I was born, as my maternal grandparents resided there. 

And, that why was I being given this “Punishment posting”? 

She smiled at me, made me relax and asserted that it was in my best interest for me to go that far and I was the most suitable among the 40+ trainees who had joined after our MBA. 

I took her word and left home for the first time alone with 2 suitcases and 2 carton boxes – one had my Sony Music system and the other had two speakers! I was part of the progress at the then largest music store of Asia - Music World, Park Street, spread over 6,000 sq ft. 

We sold plastic cassettes and CDs worth Rs. 60 lakhs a month. That December, the store touched its all time high of Rs. 92 lakhs in revenues. Back then, over 70% of revenues came from cassettes priced Rs. 28/-. 

The next 365 days were the most memorable in my entire career till date. 

Not a single day went without me learning a thing or two, with no family members or relatives around me. A couple of years ago, I happened to meet Latha at an event where we both were guests and I thanked her on the stage for shaping my career. 

The next HR Leader who transformed my career was Tuhin Biswas, who saw potential in me to create and lead the retail transformation at Bangalore International Airport, the country’s first greenfield, private airport which was inaugurated in 2008. 

His continued encouragement to me was an added bonus. 

My first international travel had a Swiss Visa stamped on my passport and it was because of this gentleman, who pushed my case to the Management for a Knowledge tour that I would undertake to 3 countries – Switzerland, Germany and the UAE. 

During my tenure at BIAL, I would then travel to 10 countries (airports) worldwide to speak about Indian Aviation and Travel Retail, as well as to learn best practices. 

Every other HR Head or a member of the HR Team that I have interacted all through my 2.5 decades of professional life have indeed left some positive impact or the other on me. 

Thanks to Zoho, today many decided to celebrate International HR Day! 

Last but not the least, I have also had the privilege of interacting with several HR consultants from small boutique firms all the way up to top ones. 

One name I should mention here is Ganesh Kumar, Founder of Intigra HR, who pushed my boundaries to deliver what was beyond me when I was leading “Levista Coffee” during the most turbulent Covid-19 period. 

As I would say, we must celebrate the undaunting efforts of the HR Team every day, rather and not just restrict to one day! Thank you, HR.