“Rags, you know the kids these days. They are anyway all over the place without contributing anything in depth. A management training programme is just an excuse for them to have a paid vacation!” That was Nishanth’s first reaction on hearing Raghav Misra’s idea of inducting a batch of management trainees into Falcon Motors Ltd.

Raghav recollected the conversation word for word, because he was quite taken aback at what Nishanth Chitre, Executive VP – Sales & Marketing, had said.

He had broached the topic with Nishanth first because, as head of sales and marketing for Falcon Motors, Nishanth had the potential to absorb a large number of fresh MBA graduates into his team. Moreover, Nishanth and Raghav went back a long way, to the time they had themselves joined Falcon as management trainees in 1988. Even though Raghav had pipped his batchmate to become the CEO in 2011, they had had no problems in working with each other, and Nishanth accepted Raghav’s overall leadership of the company.

In fact, there were others in Falcon’s top leadership team who were from the same batch (or earlier batches) of Falcon’s earlier management trainee programmes (Table 1). Having worked together for many years, the top team is quite close-knit and cohesive, which helped the company come out of bad patches during the late-1990s and mid-2000s.

Since 2010, Falcon’s products have been lapped up by the market (Table 2). Being more economical than a Harley-Davidson or a Triumph, and with a 60-year-old heritage of ‘Made by India, for the World’ motorcycles, Falcon has positioned itself in a sweet spot to take advantage of the projected boom in the leisure and lifestyle sector over the next few years.

It was to prepare Falcon for the coming years that Raghav had thought of resurrecting Falcon’s management trainee programme. Having seen the benefits of the programme, Raghav was keen to see a bunch of smart, young managers working together to secure Falcon’s legacy — maybe one of them would even go on to become the CEO later.

“Things have changed from our time, Rags,” said Vanchi Nathan, Executive VP, HRD, when Raghav talked to him a day after his conversation with Nishanth. “I have also been trying to get a framework for the MT Programme in place; the challenge is not only about how we can hire them, but about how we prepare the people inside Falcon as well. We haven’t hired any fresh MBAs for the past 8-10 years, so our managers have forgotten what that variety is like. My plan is to have at least 30 fresh MBAs start the programme,” he continued.

“You think so?” said Raghav. “Maybe we should not bring in such a large group, if we are not sure of managing the programme well. I was thinking of about 10 people in 2013. If it works well, we can expand the programme next year.”

Vanchi responded: “I think that, as a small-scale experiment, the MT programme will not get the attention it deserves from the company. We should go big bang and have a sizeable number come in. That will also get the buzz going on the campuses.”

“I guess you have a point there. I’m glad you’ve also been thinking about it. Why don’t you present your plan at next week’s FELC?”asked Raghav.

August 2012. A week later “Love it. Management types. Get them to understand design. I’m on.” Shekar, Executive VP, R&D, was his usual terse self after Vanchi’s presentation to the FELC (Falcon’s Executive Leadership Council). Vanchi had outlined the MT programme, with its two-months-in-each-function (design, operations, SCM, finance, HR and sales) rotation, calibrated learning structure and graduated compensation plans. The other FELC members were also in agreement. Vanchi had prepared the ground by having informal discussions with each of them before the meeting. Many of their concerns had been addressed and the FELC was excited about this initiative.

FELC Meeting, April 2013 “How can you deny my boys a decent hike this year? They have slogged their backsides off and they are not going to be happy with an 8 per cent increase in compensation,” Venkat, Executive VP, Operations, was on the warpath. “We are planning to bring in greenhorn kids at fancy salaries; salaries that our managers have reached after working for 8-10 years. I will have a revolt on my hands when they learn what the MTs are going to be paid!”

“Venkat, that’s true for all our people. They should realise that if they want those kinds of salaries, they will have to work at a different level,” said Bilal. “I think that one good recruit will be able to replace three of the current ‘managers’ within a year’s time. Those managers should be ready to take on more challenges, or they will be history.”

“We can’t have such comparisons — the MTs we have hired are top-notch. If the 26 who have accepted the offer all join us in June, Falcon will be a transformed company,” added Pankaj, Executive VP, Finance, closing the discussion.

FELC Meeting, July 2013 “Gentlemen, the signs are not encouraging. Although all the 26 MTs joined us last month, we have lost four of them already. Vanchi and I had a feedback session with the rest of them the day before yesterday and here is the gist of what we heard,” said Raghav, as Vanchi brought up a slide on screen (see Info-box).

“These are all good guys. They are asking very basic questions — actually a couple of my managers are now changing processes because of their questions. But many others are feeling threatened because they are not able to give convincing answers,” Venkat was genuinely admiring of the effect the MTs had had.

Nishanth was also appreciative. “They have lit a few fires with our dealers and at the service outlets. My boys have had to raise the bar with their partners. These are good problems to have, but I only wish these chaps were more tactful when they ask questions. It almost sounds like they are ready for a fight!”

“But overall not good. For them, for us. We must recover. Vanchi, tell us what to do.” Sekhar put the feelings of all the FELC members in a nutshell.

What should Vanchi tell them?

What actions would you recommend Vanchi Nathan should take to ensure that the remaining 22 management trainees complete the programme? (Click here for feedback from management trainees ) Should he train the managers of Falcon on how to handle the high-potential, high-achievement-oriented trainees? Or, should he counsel the latter to be more tactful? Are there any other actions he should consider? Write in your recommendations to  blcasestudies@thehindu.co.in  in not more than 700 words.

Submission Guidelines

1. Please mail your analysis (maximum 700 words) in a word file and send your individual high-resolution photo as a separate attachment to blcasestudies@thehindu.co.in

2. The subject line should be ‘Falcon_Case_ParticipantName1_ParticipantName2’_B-schoolName . No .zip or .rar files please.

3. Last date to submit your analysis is March 1, 2014; 23:59.

4. Winners will receive gift vouchers from Hidesign.

5. Each participating team should not include more than two members.

(R. Shantaram, an alumnus of XLRI, is a co-founder of Kelsa Solutions, a strategic HR consulting firm that helps organisations transform its people potential into results.)

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