Intellectual property: handle with care

Published on Wednesday, Mar 28, 2007

APPLIED thought and creativity are the true assets in today's information age marketplace. Ideas and knowledge have proved to be the forerunners of company profitability apart from physical assets.
However, information regarding inventions, trade secrets, business plans, designs, sales strategies, pricing information, client lists and contacts' information has to be invested in the workforce to be worthwhile. Such information is called Intellectual Property (IP) The term implies that the subject matter is the product of the mind or the intellect. IP rights are legally protected just as any other form of property. This ensures that employees do not intentionally or unintentionally reveal confidential information to competitors or carry it to a new job. Invaluable information could be lost in the blink of an eye or a click of a mouse.
As a result of such incidents, the company incurs heavy financial losses, in fact, according to a risk management company, IP theft costs U.S. companies about $300 billion annually. Loss of the exclusive knowledge edge can spell inevitable doom as James Chandler, President of the National Intellectual Property Law Institute, corroborates, `If a company loses its intellectual assets, it could die'.
Hanging on to intellectual assets
Intellectual assets are always at risk because rivals would love to lay their hands on a company's manufacturing processes, systems or contract details. Employees with access can easily pass them on for a price. The company may not even know what is going on till a competitor beats it to the market with an innovation which they recall was their original idea. The onus is on the companies to comprehensively safeguard their proprietary material from abuse and misuse.
Cover your back - No company can ask its employees to leave the trade secrets and know-how (acquired on the job) behind like other equipment. Nor, can it wipe their memories clean. Nevertheless, it can frame an Intellectual Property Rights policy in the form of restrictive covenants. Non-disclosure and non-compete agreements with employees will restrict breach of confidential data and enable restrictions on working for the competition for a specified period. The conditions though have to be reasonable for the contract to be enforceable. Yet only a few countries have stringent laws safeguarding intellectual property.
Prevention is better than cure - Hiring managers should carefully screen candidates to ensure that the new employees are not infiltrators or have the potential to carelessly reveal information. Disgruntled employees could maliciously retaliate by purloining trade secrets. Employers should endeavour to keep employees satisfied and challenged and employ a Chief Security Officer (CSO) to accurately identify, mark and safeguard critical details.
On their guard - Training and educating employees about the importance of confidentiality will help them visualise their role in the onerous task. Managers should periodically interact with employees so they understand the criticality of their work and make them responsible. Else, strategic details may seem inconsequential to them.
Black holes - Rival companies use spies, scamsters, bugs, bribes, thievery and even hire competitive intelligence firms to sneakily glean critical information from competitors. They may disguise as an interested client or a research student, place pretext calls or even eavesdrop on conversations causing employees to naively reveal ostensibly innocuous details. Therefore, employees should protect their laptops, curb sensitive business talk in public places and restrict research descriptions. HR executives should check salespersons' talks and staff blog postings to prevent pilfering or even accidental leakage.
For your eyes only - A competitive intelligence expert says, "More damage is done by a company's lax security than by thieves". Securely isolating data with physical locks or digital passwords and firewalls can reduce the risk significantly. Installing software tools can also help keep track of documents thereby preventing potential misappropriation. Also, companies should not allow unrestricted access to the classified records but restrict access to select executives. A `confidential' legal warning on sensitive information is thus an imperative.
Plug the leak - It is indeed difficult to identify, track and restore loss of trade secrets. Nevertheless, once a revelation is detected, the company should act fast to control the damage and invoke disciplinary measures and initiate legal action immediately.
All said and done, managers should safeguard confidential information with their life. After all, companies can afford to lose buildings or employees but not intellectual property.

PAYAL CHANANIA

What do executives really think of MBAs?

Published on Wednesday, Jan 30, 2008

There is a mad rush to acquire that hallowed MBA degree. Students sign up with lascivious dreams of eight-figure salaries, corner offices, fast track promotions and professional prestige. But is the qualification all it is touted to be?
Is having a MBA in your pocket the ultimate passport to success?
While companies continue to bank on MBAs, top-tier executives have started questioning the real efficacy behind the prodigious hoopla.
The jaded view within the executive ranks is that such qualification holders are actually a panacea for business problems.
The unprecedented monopoly has been short-lived, as even recruiters no longer consider MBA as the ultimate degree.
In direct contrast to the earlier pampering of MBAs with absurd salaries and wacky perks, these high-maintenance candidates are actually being expressly avoided by some.

A paradigm shift
Its high time we evaluate whether MBAs actually add value to a company, and if so, how much.
The resounding accusation is that all MBAs do not make good managers, great leaders or even effective entrepreneurs.
It is just a glorified business degree that does not address the real needs of today’s fast-changing business environment.
Concerns over the practicality of management training arise since the largely theory-oriented curriculum misses out on functional aspects like people skills or even sales. Experience cannot match learning from a book, and greenhorn MBAs lack the perspective on how businesses are really run, let alone how to effectively lead, motivate or manage people.
As one consultant surmises, “unfortunately, business schools pretend that any student with a MBA should be a great manager right out the gate, regardless of real-world experience!”.Added to this, is the issue of having to constantly pander to the egos of most MBA-holders who feel they are a cut above the rest and look down on their non-degreed peers.
Deeming that the MBA will propel their career into overdrive and take them to the top of the ladder directly, such people are also loath to getting their hands dirty with grinding experience.

Reality check
The days when having a MBA earned you envious glances are long gone. Well, the fact of the matter is that the qualification was never meant to be a magic wand that can transform anybody and everybody into a superlative manager.
The over-hype in itself has placed profligate value on the degree as the answer to all management evils, which in turn propagates it as a sort of ‘silver spoon’ that entitles MBAs to a deified worship!Therefore, it is not the MBA degree that is falling short but people’s expectations from it.
A MBA purely provides the basic, yet essential building blocks of knowledge, skills and understanding on diverse business concepts like managerial economics, financial accounting, analytical thinking, strategic decision making, competitive strategy and entrepreneurial development.
This solid foundation of underlying theories, terminologies and best practices learnt in the classroom can deliver results when interpreted with critical thinking and developed into appropriate strategies in actual business settings.
Therefore, it is what you get out of the degree that counts – interpersonal skills, creativity, communication, team work, headship, core strategic thinking – and this is what makes great leaders.

Repositioning the concept
Management per se is too complex a subject. People should not enter the programme just fantasising about the fat paycheques and unmatched success, but have a sense of purpose and sound management potential. As Linda Trevino, herself a professor of management observes, “MBA is often seen as a ticket to more lucrative employment, so perhaps getting the degree is more important to them than the knowledge gained along the way”. An interest in the business function coupled with the willingness to acquire hands-on training alone can shape the learning and help you fathom the real drivers and language of business. Then again, MBA training from a top business school is not the only way to become a strong leader or manage an organisation successfully. The educational venue does arm you with a valuable tool kit, but similar skills can be acquired through on-the-job experience gained in a good work environment. Yet, we cannot decry the fact that the qualification does hold potential. So, instead of needlessly hitting out at MBA students and burdening them with lofty expectations, employers should concentrate on appropriately focussing and channelising a MBA’s enthusiastic, smart and savvy business demeanour. Give them time to learn the ropes and develop the right perspective essential for success.
Then again, companies should look inwards to their own effectual recruitment programmes and exercise due diligence in hiring decisions. After all, simply graduating from a management school never made anyone a good manager.

PAYAL CHANANIA

Notice period – make your exit smooth

Published on Wednesday, Jan 30, 2008

You have just tendered in your resignation and have a brand new job in your pocket. You may be moving for higher pay, career growth, challenging opportunities, better work environment, because you simply hate the boss or other reasons best known to you.
Floating on cloud nine, your balloon is suddenly punctured as you realise you still have to get through the terrifying notice period. Some people do strike pay dirt and the employer asks them to leave shortly after they hand in their resignation. But, not everyone is so lucky and most of us have to tide through the mandatory notice period of four or eight weeks.
A decidedly hard time is staring you in the face as coworkers sympathies change for a soon-to-be-former employee.
Office pettiness comes out in full force; everyone from bosses and colleagues to subordinates turn unreasonable and disagreeable overnight. Having to tell your resignation story again and again is actually the least of your troubles as the surrounding envy, scorn and resentment has you jumping through hoops all the time.
Lame-duck employee syndrome sets in and you become the outsider, no longer considered a part of the team.
In fact, sly remarks are aimed to make you feel guilty for ‘jumping ship’. Then, nasty rumours reach your ears that you haven’t quit of your own accord, but are being forced out or fired. Not to mention the company’s suspicious scrutiny suspecting you of sabotage or even espionage.
Your dreams of a teary-eyed farewell die prematurely as you end up feeling powerless and miserable in the ‘never-ending’ notice period. The stage is set for a bumpy ride that can completely sour your happiness.
But, its up to you to make the best of the situation before an emotional limbo sets in. Here are a few tips on the same:

First things first
Do not burn your bridges by storming out of the door in a fit of exasperation. Not only will this spoil your references, but you never know when the manager/colleague may cross your path again.
Check your company policy and employment contract for the specified notice period, which may range from a week to a month or even more. Grin and bear it
Square up to the challenge ahead with a positive and professional approach. Be proactive and do not give in to the pettiness by losing your cool and reacting in kind.
The smouldering issue can easily snowball and jeopardise your new job too. For one, it provides your boss with an excellent excuse to give you a bad reference!
So, give others a wide berth and try to stick out the period with your reputation and integrity intact. Maintain a low profile without criticising the company/work/boss or boasting about your new job. If someone asks why you are leaving, make generic statements such as, ‘It’s a career move’ or ‘it’s an opportunity I just cannot pass up’.
Shield yourself from confrontations; others may only be trying to goad you into retaliating. Brace yourself to maintain your composure in the face of emotional outbursts and psychological attacks. But, do not let anyone exploit you either, boss included.

Tie up loose ends
Concentrate on turning in quality work as usual. Do not cut yourself slack by compromising on the work just because, ‘I am leaving anyway.’
Try to minimise the disruption your departure may cause by wrapping up unfinished projects and clearing the way for the new incumbent. Also, offer to assist in finding your replacement, breaking him in and handing over the reins properly.

Walk on eggshells
The management may make a last ditch-attempt to bail out the situation by making a counteroffer in the exit interview.
It’s considered best to graciously decline the flattering offer and remain noncommittal when they probe into your real reasons for leaving. Diplomatically express your sincere appreciation and say you enjoyed working there without going overboard with excessive regret.
Keep in mind that the notice period is an excellent opportunity to nurture relationships. You can even give thank-you cards or send emails wishing everyone well.
All said and done, do the best you can to make a smooth transition and leave on a good note. Having an excited eye on the horizon will help you to tide over the situation.
People quit all the time and the company will survive without you. Remember if you got to go, you got to go!

PAYAL CHANANIA