Ulaganath Madan

Ulaganath Madan was born in Madras on 1 January 1937. His father was at that time
technical adviser to the South Indian Coconut Crushers' Association and later retired as
secretary of the body.

Ulaganath spent his early years at the Madras Christian Mission School and was an
outstanding student up to the time he left for Delhi. A temporary setback in scholastic
brilliance ensued. His father sent him to a public school in the UP terrai region for his last
two years. Ulaganath stood second in India in the Senior Cambridge examination
conducted in December 1953.

He stood first in Bombay University in 1958 and was awarded the degree of B.A. (Hons.) in
Economics. He represented Wilson College in football and played for the University Cricket
XI. He was also secretary of the College Debating Society.

Being the only child of his parents he was dependent on his father's advice in a choice of
career. Madan (Sr.) was very keen that his son joined a reputed foreign company and
instructed his son to apply to several of them. Ulaganath would have preferred to continue
his studies. His flair in debating and his consummate skill behind the rostrum led him to
believe that he would succeed very well in the legal profession.

Deferring to his father's wishes, he decided to follow up his applications to various

companies and left for Calcutta, where he could stay with his maternal uncle. Shortly after
arriving in Calcutta in July 1958, his attempts proved successful. He was offered a
management trainee position by a leading conglomerate whose activities varied between
manufacture and sale of heavy engineering equipment and management of tea estates,
auction house, and export of tea. This company also imported and sold to Indian customers
a range of machine tools. He was asked to join the area specialized in the import and sale of
machine tools. Within a week Ulaganath was frustrated. He did not have the competence to
understand the intricacies of machines.

He complained to the divisional head and asked to be transferred to some other area of the
business. Mr. Malcolm Smith was not sympathetic. He told Ulaganath that he himself had
grown up in the business with roughly the same background and this cribbing was a poor
start from any young man. "Get your head down and get cracking. We do not want
moaners around." Ulaganath spoke to his uncle that night. The uncle promised to see
whether he could find another company more suited to Ulaganath's talents.

Some days later Ulaganath was told by his uncle, "I met old Charles Brickworth at the club
last night and told him that I had a very promising nephew who was looking for a break in
a sales career. Go and see Charles. He is the sales manager of Imperial Glory Engineering
Works Ltd. He'll do something for you."

Ulaganath met Charles a week later. Charles liked him very much. He told him, "If left to
me I'd give you the job straightaway. But we have the bloody head office to reckon with. I'll
send your bio-data to Simpson. He'll collect some 10 to 15 youngsters like you and ask you
some nonsence, then four or five chaps will ask you all sorts of baloney for half an hour and
then give you a bloody letter of appointment, I could jolly well give it to you now."
Written by Professor C.D. Menon. This case was made possible by the cooperation of a company
which likes to remain anonymous.
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Ulaganath went through the process of selection and emerged as one of the two lads
recruited as management trainee. Ulaganath was asked to report to the Calcutta sales office
of the company and to Simpson. His terms of appointment were that he would be a
management trainee for three years at the end of which on successful completion he would
be absorbed as a junior covenanted manager. The first year he would receive a salary of Rs
300, Rs 375 in the second year and Rs 480 in the third year. These salaries were one of the
highest offered by any company for management trainees. On being covenanted Ulaganath
would receive a monthly salary of Rs 625 and a car would be provided for his official and
private use. Progress in the company depended purely on merit.

Imperial Glory manufactured and sold a wide range of consumer and industrial
semi-durables and was in the process of diversifying into the manufacture and sales of
toilet preparations. Shortly after Ulaganath joined the company, Charles was appointed
General Sales Manager of the new division. He called up Ulaganath who was on an
induction tour of the factory and asked him to see him. "Ulagan, I'm the new General Sales
Manager of the Toilet Preparations Division. You come along with me. I've cleared it with
the bloody Head Office. No need to go around those bloody factories any more. Let's get
down to some hard selling."

Ulaganath spent the next three years organizing dealer networks in Calcutta city and made
remarkable strides in the introduction and sale of shaving requirements. Solely responsible
for the sales of the product range, he had made a successful dent into the entranched
market of the more established manufacturers. His sale of safety razors, shaving cream,
shaving soaps had crossed Rs 5 lakh per annum and was 10 per cent of the Calcutta market.
He had earned the reputation of being an ace salesman.

Charles in recommeding him for his covenant reported that Ulaganath was "the best
salesman the company has." The aura of "ace salesman" had been acquired by Ulaganath
and was recognized by all concerned in the company.

James Coekburn, the new Personnel Manager, spoke to Charles in June 1962. "Charles, we
are wasting Ulaganath in your setup. Jim is screaming in Madras. He's got nobody
worthwhile selling our electric fans and motors in the South. The business is going to the
dogs. I think Ulaganath's the chap for the job." Charles agreed to release him provided he
could promise Ulaganath that at the end of six months he would be made Assistant Sales
Manager of the Madras Sales Area. "Sure, Charles, the boy's a winner. Might make some of
the senior boys worried, but we must encourage talent. Go ahead and tell him that subject
to satisfactory performance he's on the way to middle management in a year's time."

Fortune smiled on Ulaganath. The only competitor packed up business and went into
liquidation. He exploited the old contacts he had in Madras and South India. His father
moved in with him and helped him in meeting the senior management of companies that
bought the range of products. Ulaganath knew all the dependable stockists throughout the
area, and before long had put the division on a sound footing. Profits on sales had
quadrupled.

He was shown the report on performance that proceeded his appointment as Assistant
Sales Manager in April 1963:

"Extremely knowledgeable and very capable of directing his division's

activities clearly and intelligently. Highly dependable and self confident and
proved beyond doubt that he has capacity to take on greater management
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responsibilities. Despite the problems and difficulties experienced this year,

performed very well and closely and effectively coordinated the work of his
division and factory and improved on sales target set for him. An
outstanding performance."

"Ulaganath is intelligent, resourceful, honest, and has tremendous

drive....has established himself with major customers. Very
mature....distinctly above average performance."

His report for 1965 mentioned:

"Ulaganath has established himself as a leader.... He brooks no delay in

himself and therefore in others..... A jolly good chap to work with. His
juniors are slowly realizing that a rough exterior hides a good heart. He has
won the respect and confidence of all customers. With adequate assistance,
he should prove a competent sales manager."

The year 1966 saw rapid Indianization and most Englishmen returned to the parent
company. There was a reorganization of the business, and some parts of the company were
sold off to Indian interests. Product divisionalization was discarded and the company's
activities divided into six zones. Zonal offices were set up. The Zonal Sales Office would sell
all the company's products. Manufacturing activities within the zones were brought under
the command of production managers. Ulaganath was promoted and transferred to Delhi
as the sales manager. He reported to the general sales manager who in turn reported to the
chief executive.

Anshuman Balesar was appointed Production Manager, North. He had been the factory
engineer of the Calcutta factory and a young man in his late twenties. He was born and
brought up in London and had qualified from the prestigious Imperial College. He had a
cultured accent, fine manners, and a way with the Europeans. Most of his colleagues,
Ulaganath in particular, resented him on the ground that he was a favourite with the
erstwhile British managers.

There were several problems which cropped up between Ulaganath and Balesar. Their
usual conversations which ended up in near fisticuffs followed the pattern:

U: "What do you think you are? Why are you not producing 16" fans required by the
public sector customers? You are merrily manufacturing 48" fans that are having
dull sales. Are you just producing what you like or are you an instrument that I use
to cater to the markets and market demand?"

B: "Come on, you have only to book orders. I've to make them economically, ensure
that my cost centre is functioning efficiently. And your customers do not pay on
time. Do you know the heavy financing charges we've got to bear--some of your
customers pay about 6 months after delivery. I am planning my output according to
what my commercial manager tells me is most economical."

U: "Don't try to confuse me with all your commercial mumbo-jumbo. You do what the
market wants. Business will not wait for all that sophisticated production planning
you do. Why are you not stocking the bought-out blades in sufficient quantities?"

B: "Since our suppliers are very prompt we can afford to wait to get components as
and when we require them. I say, why don't you go to that course the Staff College
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is organizing. You'll understand how business is run better if you do something on

those lines. Have a chat with the head of the personnel division."

In 1968, Ulaganath was sent to a management development programme run by one of the
institutes of management. The head of Personnel Division was told by Ulaganath that the
course was excellent and he had gained a lot. Y.K. Sharma, a nephew of the head of
personnel division, had also attended the course. Meeting his uncle three months after the
course, he said: "Your chap Ulaganath had been at the course with me. He's a jolly good fel-
low. Must have a very high entertainment allowance. He feted us all and how? He had a
group with him everyday at the bar from 8 p.m. till the bar closed. He made a lot of friends.
One of the chaps who attended the course with us saw him in Delhi and Ulaganath has sold
Rs 20 lakh worth of goods to him. Damn good salesman, Ulaganath."

Ulaganath's next report read:

"His job is to increase sales, keep customers happy, fight competition and
ensure a satisfactory growth rate--he did this admirably during the year... All
like him because he is intrinsically good at heart and it is because of his
anxiety to get things moving and done there are those occasional
outbursts--similar to what a commander in the battlefield would do to his
troops behind with the enemy in front!"

In 1970, the company faced with interminable squabbles from manufacturing and sales
units decided that there was need for a reorganization. Ulaganath was appointed sales and
commerical manager in Bombay. He would report to the resident director (west). The
factory had a factory manager, also reporting to the resident director. The positions of
general sales manager and general production manager were abolished.

Sales of all company products grew rapidly. The resident director complained to the chief
executive: "Ulaganath is a very good salesman, but I've to spend half the day sorting out
problems between him and the factory manager. He has no commercial insight, as a matter
of fact, some of his inventory piling up decisions and pricing are suspect. Though turnover
is increasing the return on capital employed is diminishing. I wonder whether we should
revert to having commercial department reporting to the factory manager?"

The resident director writing Ulaganath's report for 1972 said:

"As a sales manager he has performed above average but his contribution in
the commercial area has been below the average I'd have expected from him.
His organizing and planning skills leave much to be desired. He delegates
responsibility but is very demanding and pushes his subordinates whenever
required."

In 1973, Balesar who was the factory manager, Calcutta, was appointed resident director,
Bombay. Ulaganath was most upset. He rang up the chief executive and asked for a
meeting with him. He flew to Calcutta and told the chief executive: "I find it difficult to
understand how you can appoint that whippers snapper Balesar as my boss. I'm older,
have longer years of service. My contribution is fantastic. I've increased sales at a rate of 25
per cent per year at least wherever I've worked. Balesar interferes with my commercial
function. He is only interested in increasing profits, has no feel for what the customer
wants. He'll ruin the market and spoil the relations I've built over the years. Please transfer
me to Calcutta, I do not want to carry his can when the market collapses."
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Ulaganath was transferred to Calcutta in early 1974. The Resident Director, Calcutta,
reporting on his performance, said:
"Has made significant contribution in the selling side of his responsibilities.
His personal integrity and loyalty to the company is beyond question.... He
is more a doer than planner and thinker. I have had to intervene on several
occasions to derive any meaningful results from our business plan. He is not
capable of coordinating the sales function and factory production planning. I
do not see him growing any further."
Ulaganath seeing this report on him asked to see the chief executive. "How can I continue in
the company?" he moaned. "I'm neglected. Everybody criticizes me. See the amount of sales
I'm getting. The chaps who work for me have so much respect for me. They know I stand
for no shirking. Everybody works very hard. We keep the factory on their toes. That the
factory manager and his boys don't like. Why is everybody so critical of me when I'm
giving them all the sales they need to keep us humming?"

The chief executive told Ulaganath: "When you came to see me last year you were upset
with my having appointed Balesar to the board. Balesar is not making the sales strides you
have, but his return on capital-employed is increasing more rapidly and is now the highest
in the company. If you had continued in Bombay you'd have shared the glory."
Ulaganath went into a tantrum, "So even you are questioning my commercial judgment?
Balesar was lucky. He cashed in on the inflation. Do you think I do not know what is sound
commercial judgment? One of my instructors at the course I went to said that there was no
one he'd seen with such deep insight into commercial and environmental matters. The
trouble is that none of you pay sufficient attention to the customer. He is supreme. He is
your God. Only he can give you the profits you want. Why don't you recognize that? And
is there anyone in the company who can deal with them like I do? They eat out of my hand.
Understand that." He blazed out of the office.
Three weeks later the Chief Executive received a letter from Ulaganath:

Dear Sir:

After a fortnight's soul and heart searching I've come to the sad conclusion
that I can no longer serve you in the manner you wish me to. I have decided
to accept an offer of Marketing Director of a small pharmaceutical company
in Bangalore. Please accept my resignation effective 15th August. I leave with
a very heavy heart. I grew with this company and participated in its growth.
I learnt my trade here.

Yours sincerely,
Sd/-

The Chief Executive looked at the letter and rang up the head of personnel division. "Shree,
Ulagan has put in his papers. Can I have recommendation on what to do? Okay, I will wait
for a week. You are right, have a word with the resident directors."
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The head of personnel division gave the following recommendation:

Head of Personnel Division 12th July, 1974

To: Chief Executive

Ref: Ulagan's Resignation

I have gone through Ulagan's record with us and discussed with the
Resident Directors under whom he has worked over the last few years. From
these I conclude that Ulagan shows a progressive deterioration in
effectiveness as the years go by.* Throughout he has remained an excellent
salesman, abrasive in his internal relationships, a hard and difficult
taskmaster who was impatient with his subordinates.

The expertise he has gained over the years is very valuable to the company.
My own assessment is that he will leave unless we can assure him that he
will be the next Resident Director. From all accounts he is not competent to
make it. His attitudes are such that any suggestion that he attend a T-Group
laboratory will be misunderstood by him.

Recommend that his resignation is accepted.

Sd/-

The chief executive wondered how such a brilliant salesman was today in this plight. He
mused, "Did we go wrong somewhere? Could Ulagan have done something en route to
avoid this predicament?"
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Annexure

1962: A forceful and pleasant personality...moral fibre very strong and always stands by the
courage of his convictions.... He has matured considerably in his approach towards his
juniors and is taking their training and development in hand.... Quite capable of taking quick
decisions.... A strong extrovert.

1963: In the last two years Ulagan has made all-round progress. He has developed into a strong
and effective member of the management staff. Has displayed a good measure of initia-
tive...intelligent and highly analytical.

1966: He did not panic under adverse conditions. Systematically reviewed the market and
reorganized his operations...involved praiseworthy effort on his part...his skills in written
communication could improve considerably.

1970: Ulagan came with the reputation of being a tough and determined sales manager. He drives
himself and his men.... By nature he is inclined to do too much himself....it must be said in his
defence that Ulagan belongs to a group of managers who form the backborne of the
company as distinct from the effervescent few who act as catalysts to the rest.

The chief executive reviewing the report of this senior manager commented:

"Not enough evidence yet that he is on top of his job both in sales and commercial. His office
administration, organization and management and the direction he gives to sales force will
need to be closely watched."

1973: Balesar had this to say on him: “...showed considerable initiative, determination, drive. Can
and should do better planning and organizing his work...he is emotional and tends to be
somewhat impatient with subordinates, peers and in his interactions with anyone other than
the customer.”