List of Contents

 Timelines : Slide 2

 Framework: Slide 3

 Current Understanding: Slide 4 to15

1
 List of Contents

 Project Background

 Stakeholder Analysis

 Evaluation Parameters

 Study Methodology

 Observations and Takeaways

 Program structure
 Teaching tools and methodologies
 Content evaluation
 Trainer effectiveness
 Training effectiveness
 Program scheduling
 Program impact

 Key Intervention Areas

 Annexure

2
 Contents

Page No.
From To

1 Project Background & Scope 3 6

2 Project Methodology 7 10
3 Psychometrics Market Landscape in India 11 17
4 Identification of Feasible Segments in India 18 36
Step 1 – Preliminary Short-listing
5 Identification of Feasible Segments in India - Step 2
Higher Education 18 49
Skills Training 50 61
Corporate Testing & Assessments 62 79
6 Annexure-1 80 96
Testing & Assessments Service Provider Landscape in India
7 Annexure-2 97 105
Profiles of Professional Associations
8 Annexure-3 106 116
Profiles of Vocational Training Companies
9 Annexure-4 117 129
Profiles of Prominent Entrance Examinations

33
 Table of Contents

Sl. No. Topic Page No.

A) Project Background 3
     
B) Project Methodology 5
     
C) Evaluation of Regulatory Framework  
a) Chhattisgarh 7 
b) Maharashtra 10
c) Karnataka  13
d) Orissa  18
e) Bihar  21
f) Gujarat 24
g) West Bengal  27
h) Madhya Pradesh  31
i) Uttar Pradesh  34
j) Rajasthan  37
k) Haryana  40
D) Comparison of existent regulatory framework across states 43 
     
     
  Annexure  
Potential target districts and towns*  
Maharashtra 48
Karnataka  51
West Bengal  54
Uttar Pradesh  57

  Recognition and affiliation procedures 60 

  Teacher Salaries - Sixth Pay Commission 61 

4 *Economic data of Madhya Pradesh and Gujarat not available in public domain
 Overall Project Plan and Timelines
Planning
 Meeting with the Lotus
team to understand
- the vision,
- high level plan,
- research
requirements
-Tentative timelines
 Time: 2 weeks
 Number of meetings: 2
Deliverable :
 Finalized timelines
 Research requirements
5
Secondary Research (phase 1) Secondary Research (phase 2) Final Presentation
Interim
Presentation
A detailed Business Plan
for 10 years, which
A possible roadmap for include:
Lotus to evolve into a
- Implementation plan
product company -The different functions
and how they would
evolve
- Study of different business Deliverables:
models in the industry (which - Research on, a step by step - PowerPoint presentation
have achieved scale) implementation plan
- 5 Indian companies
- 5International Time: 2 weeks
companies
- Study will be done using the
3S framework introduced in
the next slide
Time: 2 weeks
 3S Framework for Analysis

 Soul, Skeleton & Skin are key

Soul Skeleton Skin elements in every company and all
need to be complete for a company
to be successful in the long run
Strategy Finance Sales  All the 10 functions (shown in the
chart) should be aligned with each
other.
Leadership Operations Marketing  As Lotus evolves from a sales to a
product company, the combination
Business
and alignment of the 10 functions
Innovation HR will change.
Development
 For example in a service company
business development is more
Legal important than sales and marketing
 In a product company however the
order will be reversed (marketing will
become most important)
 The final output of this study will
show how the different functions will
have to change as Lotus evolves.

6
 Current Vision of Philosophy

Key Public Message Key Differentiators

Promoting Indian Arts, • Network of Indian
Crafts and Designs by : Collaborators
• Indian and International • International standards in
Soul
retail presence processes, quality and
• High quality products governance
• Embedding technology & Purpose To celebrate Indian • Experienced Team with
design, crafts and
Strategy facilitating better lifestyle extensive experience of
customer interaction Indian and International
Vision Platform of innovation and collaboration Design
in India
Leadership
Create and capture market of Indian localised products of the
Mission
highest quality, by collaborating with specialists.

Innovation • Setup: Prototyping and fabrication unit

• Product lines: To have three product
lines - luxury ,aspirational, affordable
and hip
Goals • Retail: To have physical and online
retail presence in key Indian cities
• Network: of craftsmen and specialists
• Monitor: Maintain attention to detail and
achieve 6 sigma quality levels
• Target Segment: Identify Conscious, Strategy
aware, responsible customers.
• Products: Products that serve the need
of such customers.

Values Qualities Operating Principles

• Integrity • Combine craft & tech • Attention to Detail
• Services • Collaboration & • Free flow of information
• Love Network • Multidisciplinary design
• Humility • Questioning Mind • Transparency

7
 Current Vision of Philosophy

Business Case Integrated Technology Platform

 Founded as a service company to

manage transactional HR processes.
 Evolved as technology driven
outsourcing company
 Growth coincided with global HR
technology wave
 PeopleStrong gradually invested in
integrated technology platform
 Technology platform will be the driver for
growth in the next few years
 Proven Service delivery capabilities and Financial Case
HR expertise will be the foundation
 Gross Margins of top HR SaaS companies tend to be in higher
 Value proposition for clients- robust
as compared to service companies (in range of 65% to 75%)
performance at low cost
 Well performing HRIS companies achieve 50% ROI on sales
 Focus will be on acquiring large clients
and 24 month payback on sales and marketing investments.
(as measured by employee strength).
 EBITDA margins of HRIS companies in the high teens to low
 Pre existing sales channel will give a
20% range.
competitive edge
 Improve in financial statements, due to a shift from service to
 May become acquisition target or
technology model is the key argument for funding.
partner for large global players

8
 Current Vision of Philosophy
 Human Resource outsourcing in India in the early 2000, was largely confined to consulting, training and
recruitment (strategic & managerial HR processes)
 Outsourcing of transactional segments was an uncontested market
 PeopleStrong is a pioneer in providing HR Solutions for managing transactional processes

A) Strategic
Strategy Processes

B) Managerial Training
Processes
Assessment

Recruitment

Payroll
C) Transactional
Compliances Processes

Administrative Support / HR Helpdesk

PeopleStrong started by offering services such as payroll and helpdesk, gradually moved up the
pyramid, now offers outsourcing services for managerial and strategic processes as well

*HCM – Human Capital Management

9
 Current Vision of Philosophy

 Over the years PeopleStrong added technology applications to support service offerings
 The next phase of growth for PeopleStrong to be fuelled by:
 offering all its technology modules through a single platform,
 offering of strategic solutions driven by analytics.

New Technology ALT – RECRUIT, ALT - ORGANIZE ALT - INFER

Offerings Assessments

Traditional Payroll & Benefits,

Recruitment Compliance,
Service Transition &
Process Helpdesk, Consulting
Offerings Outsourcing Recruitment Shared
Services

Service Capability is the Foundation for the Future

PeopleStrong is fortunately positioned well to ride a global technology wave in HR Services

(elaborated in the next two slides)

10
 Current Vision of Philosophy

 Twin primary drivers for evolution of HR Technology are:

- need to make technology useful and accessible to HR managers
- reduction in cost of transactional processes
 Over the decades different technologies (mainframe, client server) met these needs

-Simple and cost effective software

-Cloud (third party vendors site)
-Web based technology -Embedded analytics
-Simpler applications -Self Sufficient for HR Managers
-Client Server HRIS

-Mainframe HRIS -Windows interface

simplifies tech for HR
-No access to tech for HR

1980’S  1990’S 2000’S PRESENT

11
 Current Vision of Philosophy

 HR Software is at a cusp of a new wave, fuelled by data analytics and cloud computing
 It’s the fastest growing sub segment of the Human Resource Outsourcing segment
 Estimated to be a $14 billion market globally
 Market can grow 6 to 7 times in the next few years

Strategy Software as a Service

High Business
Value

Platform as a Service

Infrastructure
Low Business as a Service
Data Analytics HR Value

Analytics will enable HR managers to be Cloud Computing Offerings consiting of (SaaS,

more involved in strategic decision making PaaS and IaaS) will lower costs

12
 Current Vision of Philosophy

PeopleStrong is well positioned to serve the twin primary needs of Indian and International clients:

1
Cost Savings

a. Reduction in upfront expenditure

b. Less expensive shorter contracts
c. Minimal fee for upgrading hardware or software
a. Ease of scalability and deployment

2
Accessibility to
Technology for HR

a. Real-time talent management as the “core” functionality

b. Integration of HR systems into daily work
c. Eliminating the mess of on premise software
d. Self service as a key functionality
e. Analytics dashboards, what-if analysis and predictive modeling

13
 Current Vision of Philosophy

 HR departments traditionally organized in silos (.e.g. recruiting won’t interact with succession planning)
 Technology applications traditionally reflected those silos
 Stand alone applications getting collapsed into integrated Human Resource Information system
 Integrated platform has multiple applications across value chain

Integrated HRIS Platform

Workforce Performance Learning &

Recruitment Management Management Development

Advantages of an Integrated Platform:

1. An HR ecosystem, connecting the components that have evolved over a period of time

2. Value added HR Management by deriving information out of data

3. More cost savings for the clients.

14
 Current Vision of Philosophy

 Successful integration is the key to success of most technology platforms.

 Most technology players who start from one application are in the early stages of platform integration

Four stages of application integration:

1 2 3 4
Portal Data
User interface Interoperability
Integration Integration
integration

- Applications can exchange data

- Apps appear together using HR XML definitions
on one portal page
- Use of separate databases
- Single sign on
- Look different when - Applications work seamlessly
user clicks on them. - Applications look same
- They operate differently

PeopleStrong will move from third to fourth stage of platform integration in the next few quarters

15
 Current Vision of Philosophy

Truly Integrated Platform

Robust Performance at low Cost
Value Proven Service Delivery Capability
Proposition
HR & Technology Leaders in Team
Covering entire employee life cycle

Competitive Advantages:
 Pre existing sales channel will be a key competitive strength of PeopleStrong
 Ahead on the learning curve in an integrated technology platform, hard to imitate for a new entrant
 Cumulative experience of delivery and familiarity with HR Processes
 Significant improvement in the platform can be achieved by focusing on three key areas:

Improvement in Platform

1
Taking it to advanced
stage of Integration 2
Improving usability for
3
HR Managers
Improving Design &
Presentation

16
 Current Vision of Philosophy

 SaaS based integrated technology platform.

 Over 2,00,000 Employees of organizations across various industry verticals currently being served
 Developed keeping in mind the twin drivers of cost reduction and brining technology closer to HR
managers
People Strong Alt Platform

Workforce Performance Learning &

Recruitment Management
Management Development
Pin Code level search Onboarding Performance & Learning Management
Applicant tracking Employee database Succession Planning
Video Interviewing management
Collaboration Workforce administration
Assessments Leave
Social Recruiting Time & Attendance
Payroll & Reimbursements
Helpdesk

Analytics Applications
People Intelligence for Business What if Analysis
Effectiveness Predictive Modeling
Big Data Analytics Reports & Charts
Dashboard

17
 Current Vision of Philosophy

 India will remain the most important market for PeopleStrong in the next few years
 PeopleStrong will establish presence in Asia Pacific (APAC) in few years, followed by USA
 Europe and Africa may be evaluated at a later stage
 India is pretty much uncontested market, as far as the competition is concerned
 USA is the most competitive and evolved market, while APAC is 4 to 5 years behind USA

EUROPE
4
USA 3
INDIA
1

5
2 APAC

AFRICA

18
 Current Vision of Philosophy

 Annual spending on HR-related products and services estimated, at more than $1 trillion worldwide
 The global HRO market is valued at $42 billion as of 2013 and HR Technology market at $14 billion
 450 million people around the world could license and use corporate HR software, yet only 55-60 million
seats have been sold
 Thus the global market can grow approximately 7 to 8 times

USA
 HRO: $22 billion
 HR Technology: $8 billion
 APAC
116 million workforce
 1.2 million firms  HRO: $3 billion
 HR Software: $300 million
 3.5 million workforce

INDIA
 HRO: $3.5 billion
 HR Technology: $300 million
 467 million workforce
 37 million workforce in
organized sector (target)

19
 Current Vision of Philosophy

 There are four type of companies which are offering HR Outsourcing services
 Largest players are ERP companies, who want to offer HR suites to existing clients
 HR Outsourcing companies are shifting from services to technology (like PeopleStrong)
 Type 3 and 4, are responsible for industry churn and innovation; they ensure that large players never
have all the cutting edge applications and keep creating niches for themselves

HR Technology
Companies

1 2 3 4 Specialist
ERP HRO HRIS
Companies

- .e.g. Oracle, SAP - .e.g. ADP - e,g. Workday, - Jobvite, iCims,

- buying type 3 & 4 - writing integrated

- buying type 3 & 4 - focus on few key
companies to HRIS applications
companies to build applications
build platform fro start
platform
- also building apps
across value chain

20
 Current Vision of Philosophy

 Less formal HR department, with HR often a non-core function

 All HR-related decisions by owner, may rely on outside HR services firm (i.e.
Small Size (<
payroll vendor, PEO) for HR needs
50 employees)
 Buying process varied and less structured, often with conflicting internal forces
between primary purchaser and influencers.

 More formal HR department with HR generalist and mix of in-house and

outsourced solutions.
Midsize
Employers (51-  Greater level of delegation from senior management than with small employers
999 employees)  Structured, committee-based buying process, with a cohesive strategic
direction.

 Formal, hierarchical HR departments

Large Size
Employers  Specialists for primary HR functions such as compensation and benefits,
(1000+ recruitment, training and compliance
employees)  Can be highly decentralize purchases made at all levels

21
 Current Vision of Philosophy
 PeopleStrong will adopt a phased approach to enter every new market (APAC, USA etc).
 In phase 1, PeopleStrong will sell the workforce management capabilities (Alt-Organize, Payroll etc.)
 PeopleStrong will compete in these cluttered markets with the value proposition of robust performance at
low cost

Phase 1

People Strong Alt Platform

Workforce Performance Learning &

Recruitment Management
Management Development

Pin Code level search Applicant Onboarding Performance & Succession Learning Management
tracking Employee database management Planning
Video Interviewing Workforce administration
Collaboration Leave
Assessments Time & Attendance
Social Recruiting Payroll & Reimbursements
Helpdesk

Analytics Applications
People Intelligence for Business Effectiveness What if Analysis
Big Data Analytics Predictive Modeling
Dashboard Reports & Charts

22
 Current Vision of Philosophy
 In phase 2, PeopleStrong will upsell other products in its suite.
 The offerings in phase 2 will be priced at a relative premium.
 Analytics offerings are where PeopleStrong expects to make the maximum profit.

Phase 2

People Strong Alt Platform

Workforce Performance Learning &

Recruitment Management Management Development

Pin Code level search Applicant Onboarding Performance & Succession Learning Management
tracking Employee database management Planning
Video Interviewing Workforce administration
Collaboration Leave
Assessments Time & Attendance
Social Recruiting Payroll & Reimbursements
Helpdesk

Analytics Applications
People Intelligence for Business Effectiveness What if Analysis
Big Data Analytics Predictive Modeling
Dashboard Reports & Charts

23
 Current Vision of Philosophy

Ensuring that organizations are compliant, safe and have hired, on-boarded,
empanelled and/or partnered with bonafide candidates, employees, vendors, partners Quick Facts
and other affiliates
10 million+
checks
Risk Assessment Talent Solutions completed
2 million+
reports published

Screening
400+
current clients
BRIDGE: An indigenous, integrated and highly customizable
Technology
technology platform 10+
sectors

Processes Robust, ethical and scalable verification processes operating within a 7+

physically and virtually secure environment years

Highly entrepreneurial and largely unchanged management team with Recognized

People
years of relevant functional & operational experience as a leader in

background
AuthBridge also has three wholly owned Subsidiaries. See Appendix A for details.
Screening

24
 Current Vision of Philosophy

Vision

AuthBridge will be the ultimate choice of its customers, always.

Mission Guiding Principles

• To be among the top 3 screening service providers • Passion for surpassing goals
in the APAC-MENA markets by 2017
• Identifying & Empowering Talent
• To be among the top 3 Risk assessment service
providers in the Indian market by 2015
• Attention to detail in all aspects of the company

• To be a dominant player in the Talent Solutions

space in the Indian market by 2015
• Urgency in Execution

• To be recognized as Thought-Leaders in our • Solving problems creatively for continual

businesses with authoritative presence in key improvement
industry forums

25
 Current Vision of Philosophy
Strength
 Strong knowledge, processes and technology
 Scalable & customizable workflow to handle large
numbers and a range of verifications
simultaneously
 ISO 9001 and 27001 certified
 Strong management team with majority being part
of the company since inception
Threat
• Potential price driven customer acquisition
strategy adopted by some of our competitors
• Revenues heavily correlated with hiring numbers
and concurrent economic climate
• International players setting up shop in India and
leveraging global relationships
26
Weakness
• Negligible exposure to the international market
• Limited operational presence (single facility in
Gurgaon)
• Sales, marketing & technology spends need
further enhancements
• Limited experience in the B2C space
Opportunity
• No strong competitor other than First Advantage
for B2B Screening Services in India
• B2C market in India is opening up due to
enhanced awareness
• Leverage of technology & Web based processes
could multiply B2B & retail numbers; AuthBridge
uniquely positioned to benefit from the same
 Current Vision of Philosophy

Hiring Manager

Create Role
requirement

Source resumes
Recruitment

Schedule
from job portals, Screen
Team

candidates for
consultants and resumes to
face to face
employee shortlist
interviews
referrals

Conduct
Hiring Team

Screen the list again

multiple
and shortlist candidates
interviews and
to be called for Face to
make a
Face interviews
selection

27
 Current Vision of Philosophy

Investor Profile
• Mr. Varadarajan Srinivasan is currently the Executive
President (HR) at Tata Teleservices
• More than 23 years of experience in HR industry
• Prior leadership and HR roles with Quatrro, Spectramind and
American Express
• Active member of the NHRD Network
• PGDM from XLRI Jamshedpur

Investment & Exit Specifics

Initial • Invested INR 20L in PeopleStrong in May 2006
May 2006 Investment
• Partial exit after 7 years of investment
• Offloaded 30% of total investment in July, 2013
30%
Jul 2013 divested for Investment Returns
INR 75L
• 12.5 X return on investment
• 30% divestment fetching INR 75L
Remaining •
70% worth
Remaining 70% stake valued at INR 175L
Jul 2013
INR 175L

28
 Current Vision of Philosophy

 Human Capital Services market consists of technology and service solutions targeted at four major HR related
functions: recruitment, performance management, workforce management and learning & development.
 Value propositions can be categorized into those in which either the service component is dominant or the
propositions in which the technology component is dominant.

Workforce
Management Performance
Applications Management
Applications

Technology
Human Resource
Offerings Recruitment Information
(with service Applications Systems Learning &
component) Development

Service RPO,
Offerings Payroll & Benefits
Staffing, PEO, Outsourcing, ASO,
(with Recruitment Consulting
Compliance
technology Consulting Management
offerings)

29
 Current Vision of Philosophy

 HR technology market is filled with incredible innovations.

 There are companies which are developing multiple applications across the value chain and those which are
developing specialist technology applications.
 For example, Social Recruiting is a sub segment within itself, with many companies attempting to tap into
corporate and social networks (like LinkedIn and Facebook) to source candidates.

Workforce Performance Learning &

Recruitment Management
Management Development

Analytics Workforce Administration Performance Reviews Learning Solutions

Simulation & Predictive Analytics
Recruiter /CRM/ Analytics
Automated Process
Applicant tracking
Online employee referral Automated
Job Distribution Company tracking
systems
Social Recruiting
Screening and Assessments
Background check
Skills Assessment
Video Interview
Online Reference Check
Self service
interview scheduling
E-HR Portal
Document Imaging
Time & Attendance
Off boarding /Exit
Expense Reimbursement Workforce
Scheduling
Employee database Management
Payroll & Benefits Solutions
Automated Enrollment
Benefit Eligibility Verification
Fulfillment
Wellness Platform Claims &
Reconciliations
Sales Performance Management
Competency Management Virtual Classrooms
Career Planning Learning Management
Goals Systems Mobile Learning
Organization Goals Workflow Design
Peer feedback Business Process
Organization Charting Management
Succession Planning
Content Management
Employee Recognition Automated Development
Social rewards Social Collaboration
Merchandise rewards Certification Management
Compensation
Incentive Management
Stock option allocation

30
 Current Vision of Philosophy

 HR departments have been traditionally organized in silos (recruiting department for instance, would not
interact with succession planning department.
 Technology applications traditionally reflected those silos.
 Stand alone applications are getting collapsed into integrated Human Resource Information system
platforms. An integrated platform has multiple applications across value chain (an example shown below).

Integrated HRIS Platform

Workforce Performance Learning &

Recruitment Management
Management Development

Analytics Workforce Administration Performance Reviews Learning Solutions

Simulation & Predictive Analytics
Recruiter /CRM/ Analytics
Automated Process
Applicant tracking
Online employee referral Automated
Job Distribution Company tracking
systems
Social Recruiting
Screening and Assessments
Background check
Skills Assessment
Video Interview
Online Reference Check
Self service
interview scheduling
E-HR Portal
Document Imaging
Time & Attendance
Off boarding /Exit
Expense Reimbursement Workforce
Scheduling
Employee database Management
Payroll & Benefits Solutions
Automated Enrollment
Benefit Eligibility Verification
Fulfillment
Wellness Platform Claims &
Reconciliations
Sales Performance Management
Competency Management Virtual Classrooms
Career Planning Learning Management
Goals Systems Mobile Learning
Organization Goals Workflow Design
Peer feedback Business Process
Organization Charting Management
Succession Planning
Content Management
Employee Recognition Automated Development
Social rewards Social Collaboration
Merchandise rewards Certification Management
Compensation
Incentive Management
Stock option allocation

31
 Current Vision of Philosophy

 Clients get an HR ecosystem, connecting the components that have evolved over a period of time
 Enables value added HR Management by deriving information out of data.
 Results in more savings for the clients.

Two Key Approaches to Platform Integration:

1
 Many companies start from recruitment and avoid learning.
 Recruitment is where most of the innovation is happening.

Workforce Performance Learning &

Recruitment Management Management Development

2
 Many companies start from learning and avoid recruitment
 Learning applications are larger and more complicated.

32
 Current Vision of Philosophy
 Cost savings due to cloud solutions:
 Reduction in upfront expenditure
 Avoidance of expensive long term contracts
 No fee for upgrading hardware or software
 Easier to switch vendors
 Ease of scalability and deployment
Cost Savings for HR Services Buyer
33
 Unified HCM, global deployment, and delivery
models, which enable real-time talent
management as the “core” functionality.
 The ability to access Cloud solutions from
anywhere on virtually any company-approved
device (mobile, tablets etc).
 integration of HR systems into daily work.
 Eliminating the mess of on premise software.
 Introduction of self service as part of core
functionality
 Analytics dashboards, what-if analysis and
predictive modeling is enabling HR managers
to use technology in making strategic
decisions.
Bringing technology closer to HR Managers
 Current Vision of Philosophy

 The HR Fund will look to invest in niche technology companies and be present across the value chain of
Human Services Technology.
 PeopleStrong has an integrated platform with technology applications targeted at all four HR functions.

Niche
Technology Suite
Technologies

Media Vehicle
Workforce for marketing the
Management Performance companies
Applications Management
Applications
Technology
Offerings
Human Resource
Recruitment Information
Applications Systems Learning &
Development

India HR Market Size USD 1.8 Bn – 2 Bn

34
 Current Vision of Philosophy

 It will take a new company few years to create a truly integrated HRIS platform.
 PeopleStrong started the technology development at the right time, thus an integrated platform is a key
competitive advantage for the company.
 A pre-existing sales channel and network of relationships with HR decision makers is also a key competitive
advantage for PeopleStrong, as many technology companies companies with great products struggle due to
lack of good sales team.

 Relatively advanced stage of integration

Integrated HRIS
Platform  Own technologies across the value chain

 Challenge for a new entrant or US company

Existing sales channel
and network  A US company may partner with PeopleStrong for
the sales channel
 Cumulative experience about HR processes
Integration of HR and
Technology  Service center to support technology delivery

 Tapping into the engineering talent to develop world

Robust performance at class analytics suite
low cost
 Tapping into the design talent to develop user
friendly technology interface

35
 Current Vision of Philosophy
 The HR Fund believe that the fundamentals of sound investing are same across all capital allocation decisions,
weather it is stock market investing, corporate budgeting, real estate investing or venture capital decision making.
 The HR Fund invests in people driven by a calling, who have the mindset of scaling a business, who have a
scalable business model, where the odds of success are increased by support of the HR Fund ecosystem ( a
philosophy not very different from growth investing in publically listed companies).
 Leadership assessment, decision making checklist and process readiness analysis are the three pillars of our
investment framework (leadership assessment being the most important pillar).
 Once we make an investment in a company, we assume the role of business partners and can help the leadership
develop other functions.

Leadership
Assessment

Process
Checklist Readiness
Analysis

36
 Current Vision of Philosophy

1 2 3
Preliminary Analysis Detailed Analysis Closing Steps

Signing of
NDA*

- Starts once the business - Starts once the NDA is - Negotiation on valuation
plan is received. signed by both parties and stake
- Only for companies - Only for those companies
- In parallel third party
operating in HR Fund who sign pass preliminary
focus areas analysis assessment is conducted
for the following:
Methodology is the analysis Methodology is the analysis - background check of
of company based on the of company based on the leadership team
decision making checklist and decision making checklist, - psychometric assessment
leadership assessment process readiness questions (Hogan) of the leadership
framework by analyzing: and leadership assessment team
framework by analyzing: - financial and legal due
- company’s website,
- submission of process diligence
- business plan submitted,
- telephonic conversations, readiness questionnaire,
- interviews with leadership
- one or two meetings
team on the site,
- leadership workshops,

37
 Current Vision of Philosophy

1 2 3
Preliminary Analysis Detailed Analysis Closing Steps

Leadership
Assessment

Process
Checklist Readiness
Analysis

 Throughout the process the three pillars of investment framework remain the focus.

 However the understanding of all three (leadership assessment, checklist parameters, process readiness
analysis) increases continuously as we go along.

 By giving ourselves the time to deliberate on the parameters, we are minimizing the odds of cognitive
errors and impulsive decision making.

38
 Current Vision of Philosophy

 The fundraising till this stage was focused on HR leaders.

 The next round of fundraising will target other three profiles (keeping strategic institutional investors for the
last round).
 The fund raising aims to build a global social network of industry leaders.

Fundraising Footprint

London

New York
San Francisco NCR
Mumbai Hong Kong
Bangalore
Singapore

39
 Current Vision of Philosophy

• Arvind N. Agarwal
• Dr. Santrupt Mishra
Anchor
Anchor Round 1
• N.S. Rajan
Investors
Investors Investors
• Venky Mysore
• Pratik Kumar

Pankaj
Pankaj Bansal
Bansal Varun
Varun Talwar
Talwar
Venky
Venky Mysore
Mysore Sumer
Sumer Datta
Datta Devyani
Devyani V.
V.
(Director
(Director && (CEO
(CEO &&
(Director)
(Director) (Director)
(Director) (Director)
(Director)
Promoter)
Promoter) Founder)
Founder)

Outsourced In-House

Premnath
Premnath Rai
Rai && Arun
Arun K.K. Garg
Garg && Amaresh
Amaresh
Utkarsh
Utkarsh Joshi
Joshi Internal
Internal Support
Support
Associates
Associates Associates
Associates Gautam
Gautam
(Principal)
(Principal) Group
Group
(Legal)
(Legal) (Fin.
(Fin. Council)
Council) (Analyst)
(Analyst)

• Legal Advisory • Financial • Investment • Business • Admin

• Legal Advisory Strategy Analysis • IT
Documentation • Accounting • Fund • Sales &
• Due Diligence • Payroll Operations & Operations
• Due Diligence Processes Support

40
 Current Vision of Philosophy

May ‘12 US – Strategic

Partners
UK – Strategic Partners Jan ‘12

May ‘11 Acquisition of Summit HR

Frontline Business
Private Equity
Jan ‘11
Investment

Signed 1st Jan ‘10 Best Co. to Work- Survey 2010

Comprehensive RPO Oct ‘09
Deal
Publication of 1st
May ‘09 Indian Attrition Report
Signed Million dollar HR
Mar ‘09
Shared Services contract

Expanded Footprints in South East Asia

July ‘08 via Strategic Alliance
Rated among Emerging
July 08’
RPO leader

July ’08 Series B‘ funding

Rated as 5 Best Start-ups
by Baring Apr ‘07

1st Major Client Acquisition

Apr 06

41
 Current Vision of Philosophy

Human Resources Business Function Potential Investment Opportunities

 Staffing & Executive Search
 Recruitment & e-recruitment
 Assessment and Verification
 Payroll
Payroll & Recruitment  HR Software Solutions
benefits & Staffing  Time & Attendance Solutions
 Outplacement Services
 HR Consulting
 HR Outsourcing (HRO)
 Recruitment Process Outsourcing (RPO)
Performance Employee  Professional Employer Organizations (PEO)
HR Relations
Management

Why Invest?
Training &  Increasingly outsourced business function
Compliance
Management  Strong and stable growth sector
 Highly scalable and high margin businesses
 High Returns on Invested Capital
 Mature US market shows achievable growth.
Indian industry still in nascent stage

42
 Current Vision of Philosophy

Business
Business plans
plans of
of companies
companies looking
looking for
for
Investment Proposals investment
investment –– Consisting
Consisting ofof plans
plans of
of companies
companies
All Companies approached,
approached, asas well
well as
as submitted
submitted plans
plans

All
All business
business plans
plans filtered
filtered on
on the
the basis
basis of
of
Investment Criteria investment
investment criteria
criteria and
and investment
investment committee
committee
Filtered Companies recommendations
recommendations

Companies
Companies short
short listed
listed further
further after
after Financial,
Financial,
Due Diligence Operational
Operational and
and Strategic
Strategic due
due diligence
diligence
Shortlisted Companies

Negotiating
Negotiating investment
investment terms
terms with
with shortlisted
shortlisted
Negotiations companies
companies to come up with a final list
to come up with a final list of
of potential
potential
Potential Investee Companies investee
investee companies
companies

Investment Finalizing
Finalizing and
and executing
executing investment,
investment, followed
followed by
by
Investee Investee Investee monitoring,
monitoring, evaluation, growth and exit
evaluation, growth and exit
Company 1 Company 2 Company 3

43
 Current Vision of Philosophy

The Fund Source:

 CXOs from major corporations in from
India/Singapore/Middle East/

 USA Strategic Institutional investors

 Private Holding company
 Corporate Governance and Reporting
Structures
The HR Fund
Pvt. Ltd.  Dedicated Investment Management Team
 Focused Investment Program

PeopleStrong Potential
PeopleMatters
(Gurgaon) Companies
(Gurgaon)
(being
HRO/RPO HR Media evaluated for
/Payroll /Research investments)

Equity Investment Equity Investment

44
 Current Vision of Philosophy

4
Phase

Phase
3 Exit
a te
2 o r & Evalu
Phase Mo n it
Invest  Plan for investment
Phase 1 Id entify &
realization
Setup  Leverage
Management Team  Analyze exit options
 Identify potential
expertise to achieve with maximum gain
investee businesses
 Complete appointment efficiencies, setup realization including
based on investment
of board of Directors corporate governance bringing in new
criteria
and Advisors to the and achieve scale investors, promoter
Executive Management  Analyze and perform buyback and Initial
 Monitor investments
Team due diligence on Public Offering
with periodic reports
potential targets  Realize gain and
 Invite investors to invest and strategic
via road shows and  Negotiate terms and evaluations and partially/completely
meetings conditions of interventions exit investment
investment
 Raise capital from  Annually evaluate
Indian and International  Invest investments to
investors determine NAV

T0 T0 + 6 mnths T0 + 18 mnths T0 + 48 mnths T0 + 60 mnths

45
 Current Vision of Philosophy

Overall
Overall India
India Market
Market Size:
Size: USD
USD 1.8bn
1.8bn –– USD
USD 2bn
2bn11

PEO
PEO HR
HR Software
Software HR
HR Consulting
Consulting Primary Focus
Training
Training Executive
Executive Search
Search
Secondary Focus
Staffing-General
Staffing-General Staffing-Online
Staffing-Online

HRO
HRO Payroll
Payroll

RPO
RPO Staffing
Staffing -- Temp
Temp
Benefit
Benefit Consulting
Consulting

Health
Health Benefits
Benefits

Relocation
Relocation

Screening
Screening

INTRODUCTION GROWTH MATURITY DECLINE

1
Peoplematters – 15th March 2011

46
 Current Vision of Philosophy

The HR People Round 1 US Market Investment Deloitte

Fund Matters Investment Expansion Framework Audited
Founding Investment Commenced Initiated enhanced Organization

Jan 2012 May 2012 Dec 2012 May 2013 Jul 2013 Oct 2013

• Founded; • People • Round 1 • Governance/ • Website • Deloitte

• Anchor Matters Investors Operational revamped Audited
Investors Investment come on Processes with a CMS Organization
come on for INR 4Cr board; streamlined backend • Bill Kutik
board • 30% equity • Investor • Annual • Investment comes on
• Launch stake footprint Operating Framework board for HR
Event obtained expands Plan finalized enhanced Tech Asia
Organized • Investment to include • US market and made • Investor Meet
in Mumbai event in Singapore expansion more robust Organized in
Mumbai initiated Mumbai
Deal flow: More than 90 potential
investment proposals looked at

47
 Current Vision of Philosophy
Strong Market Performance
 Strong business growth with a higher than
40% increase in topline over the last Financial
Year. Estimated to have the strongest order
book in the industry.
 Sizeable investment from HDFC accompanied
by a follow-on investment from Lumis. Post
money valuation at INR 100Cr
Growth & Expansion
 Total employee size is more than 350 at
present
 New office opened in Bangalore; Along with
this PeopleStrong has offices in Delhi/NCR,
Mumbai and Hyderabad
 Successfully initiated APAC expansion with
P&G Malaysia
48
Key Technology Platform & Repositioning
 Addition of PeopleStrong ‘Alt’ – HR
Technology and analytics platform makes
PeopleStrong a first mover in the space
 Repositioning itself as an integrated
technology solutions company. Engineering
revenue shift from only services to technology
plus services
Clients & Partnerships
 Signed RPO/HRSS contract with Mahindra &
Mahindra; one of the largest in the industry
 Signed first pure play technology deal with
Maersk for Human Capital Management
 Key Clients added include Barclays, IBM,
ABMC, NEC, ADP, LGF Sysmac, Xcelserve,
Mahindra AFS, Teva, Lite Bite Foods
 Current Vision of Philosophy

Revenues (INR Cr) Number of Clients

CAGR 68% 21 CAGR 36% 71

54
14.6
37
9.2 28
21
2.8 4.2

FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13

Headcount
Number of Employees 370 377 370 370
334 335

334
306
205 220
181
150 164 164
161
72 92 Revenue (lakhs)

FY09 FY10 FY11 FY12 FY13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13

49
 Current Vision of Philosophy

Projected Revenues (INR Cr) FY14E FY15E F16E

320
19
120
75 60
19 40 18 23 30
11

5
3 3

FY12 FY13 FY14E FY15E FY16E

FY14E FY16E
Print Online Events Print Online Events
Marketing Services Special Initiatives Marketing Services Special Initiatives

17% 15%
1%
3%
47% 11%
18% 58%
15%
13%

50
 Current Vision of Philosophy

As we have grown in scope and scale, we have also

Business
enhanced our investment framework to make it more
robust and comprehensive (See Appendix A for Ideas
complete framework)
Stage 1
 The HR Fund’s investment framework is spread
out over a 360 degree analysis of the idea, the
team and the current and future business plans

 We use a combination of checklists and due Stage 2

diligence processes to avoid cognitive errors which
are often detrimental to investment success

 The HR Fund’s investment framework is spread Stage 3

out over the following stages:
­ Stage 1: Investment Focus
­ Stage 2: Preliminary Analysis
­ Stage 3: 3S Analysis
­ Stage 4: Closing Steps Stage 4

 Ideas not meeting criteria are rejected at each

stage and investments happen only when ideas
pass all stages
Investments

51
 Current Vision of Philosophy

Founding  The HR Fund activities so far can be broken up

Event into 4 distinct groups:
­ Founding Event
­ Deal Flow Activities
Deal Flow Internal Fundraising ­ Internal Processes & Activities
Activities Processes & Activities ­ Fundraising Activities
Activities  While the founding event was the initial step, the
other activities have run parallel to each other

 Founded in Jan 2012, The HR Fund was (and still remains) India’s first and only VC fund dedicated to the
HR industry. Our value proposition was further strengthened when 5 industry leaders came together to
back us. The event saw attendance from the entire HR network and provided us with the perfect launch.
 The remaining slides detail the following The HR Fund activities since the founding event …

 Deal Flow Activities

­ Involves analyzing potential investment opportunities
­ Consists of business & idea analysis via internal research and entrepreneur interaction
 Internal Processes & Activities
­ Involves team building & setting up internal processes
­ Consists of recruitment & operations, governance, compliance processes
 Fundraising Activities
­ Involves raising capital for further investments and business growth
­ Consists of potential investor interaction across India, Singapore & USA

52
 Current Vision of Philosophy

 Once the business idea passes Stage 1, The HR

Fund commences Stage 2 – Preliminary analysis
Stage 1: Investment Focus
 This stage consists of analysis along the following
parameters:
 Team Analysis – The founder(s) & Stage 2: Preliminary Analysis
management team is analyzed on skillset,
orientation and lifecycle status Team Idea Business
 Idea Analysis – Idea is assessed on the
parameters of scalability, intellectual Founding and Core Business Business
property & first movers advantage
Management Idea Maturity
 Business Maturity – The business maturity is
Team analysis Analysis analysis
analyzed based on its current growth stage
and clients
 Services/Products & Delivery Models – The Services/Products & Delivery
business is further analyzed on the Models
services/products on offer along with various
delivery models on offer
Qualitative Analysis
 Conducted using an internal preliminary analysis
checklist (See next slide)

 Based on desktop research coupled with company Stage 3: 3S Analysis

submitted business plans and other available
market intelligence

53
 Current Vision of Philosophy

Total: 100% Entire Deal Flow across  More than 90 business ideas
(94) 18 months  5 potential opportunities per month

 19 did not respond when asked for

Ignored: No response after initial further details.
20% interest
 Cold after one email exchange/call

 64 ideas were filtered:

Filtered: Filtered at Stage 1 and ­ 32 were too early stage
69% 2 of Inv. Framework
­ 32 failed some other parameter

 11 ideas analyzed in detail. Out of

Accepted: Passed Stages 1 and 2 the 11:
11% of Inv. Framework

­ 4 were rejected after multiple

meetings and due deliberations as
Analyzed: In Process: Includes the ideas did not pass the 3S
5% 6% businesses stage. There were concerns about
where we had scalability & future growth
Rejected: extensive prospects – and one business
Includes entrepreneur withdrew
4%
recent interaction & ­ 1 idea (PeopleMatters) was
opportunitie Leadership and invested in
Invested: s plus Business Idea  6% (6) of the pipeline is under
1% [PM] Authbridge Analysis process

54
 Current Vision of Philosophy

 Post Stage 3, The HR Fund discusses its findings

with the investment committee, which comprises
of members of the executive team and some Stage 3: Soul, Skeleton & Skin Analysis
investors

 The HR Fund arranges for a one-on-one Stage 4: Closing Steps

management team and investment committee
interaction. If required, The HR Fund can further
use the cumulative knowledge and network of its
pool of investors to further assess these Financial &
investment opportunities
Investor
Legal Due
Interaction
Diligence
 After a go-ahead/in principle investment approval
from the investment committee, The HR fund
commissions financial and legal due diligence.
This process is outsourced to specialists Valuation
Term Sheet
& Stake
& Contract
Negotiatio
 In parallel, negotiation on valuation and stake Finalization
n
negotiation is commenced

 Post negotiation, a Term sheet is issued and the

contract specifics are finalized
Invest
 Post the same and in absence of any red flags –
finally, the investment is made

55
 Current Vision of Philosophy

PeopleStrong:
 Assisted in PeopleStrong’s APAC push via introductory meetings with business
leaders in Singapore
 Assisted in PeopleStrong’s technology and US market push via introductory
Investee Company
Support meetings with business leaders in USA (at HR technology conference)
 Strategic support for PeopleStrong’s expansion plans via research and
consulting support to PeopleStrong’s Executive Management Team
PeopleMatters:
 Engaged with PeopleMatters’ to define their 3-year strategic plan along with
streamlining of their reporting processes

Strategic Research:
 Have deepened industry knowledge (while researching investee companies)
 In the process of developing sector focused notes and looking to publish a
technology white paper soon
Marketing and Sales:
Others
 As a fundraising/marketing collateral:
­ Designed, Printed and Circulated The HR Fund Brochure & FAQs
­ Researched, created and circulated the Investment Returns case study
 Website revamped with an adaptive design and content management system.
Website control being transitioned in-house gradually
 Designed the HR Fund newsletter as an entrepreneur engagement tool. To be
launched shortly

56
 Current Vision of Philosophy

Phase 1: Founding Phase 2: Round 1 Phase 3: Expansion

 Anchor investors came
together at the founding
stage to seed The HR Fund
 Initial fundraising focus was
on India with further focus
Mumbai, Delhi/NCR
 Round 1 fundraising started  Based on the success in the
from June 2012 Singapore market, we are
 Investment started flowing in now in the process of
from December 2012 replicating the same market
onwards entry strategy for US
 Via referrals from our Indian  As of date, most of our
fundraising, we successfully investors are from the HR
expanded our scope to community.
Singapore (perhaps we  Going forward we will be
should have explored expanding the target
Singapore earlier) segment to include CXOs
and non-Indians as well

Quantitative Data

 Our current database consists of more than 450 senior HR professionals, both in India and abroad
 Till date we have had detailed interactions with more than 110 potential investors globally
 We have had more than 35 detailed meetings in 7 trips across Mumbai, Delhi/NCR and Bangalore
 Globally, we have had more than 80 meetings in 10 international trips across Singapore, US and Dubai
(with 60 in Singapore)

57
 Current Vision of Philosophy

Database Creation

 Sourced mainly from LinkedIn, professional network, referrals

1
 Profile selection based on Location, Function, Industry & Alma Mater
 Information collated into city/region specific lists

Classification
2  Profiles are classified into : 1. Must meet; 2. Could meet, 3. Not to meet
 Classification based on profile, network, domain knowledge, affiliations etc

Email/LinkedIn/Phone Connect
3  Profiles classified as ‘Must Meet’ are contacted via LinkedIn ‘InMails’ / Direct
Emails and/or calls

Meeting
 Set up 2-3 weeks before travel
4
 Focus: Overview and potential collaboration opportunities; lasts 30-60 minutes

Follow up Updates
 Post meetings, profiles are assigned from a predefined status list (see Appendix C)
5
 Interested profiles are sent regular updates (Reports, Press Releases, Case study etc.)
 Follow-up emails/calls/meetings are scheduled as per requirement

Closure
6
 Financials and Terms of Payment Discussed
 Investment received, Shares allocated

58
 Current Vision of Philosophy

 Even though our deal flow has been robust, we have been able to close out only one investment so far

 We came close to another investment but the deal did not go through and AuthBridge has been delayed

 To widen the net and increase our investment speed, we have identified 2 potential courses of action:

Option 2: Relax the revenue filter in the investment criteria

1 Investment Focus
to look at early stage companies
Rationale:
 As the Deal Flow analysis shows, around 1/3 rd of the opportunities
are “Early stage” in nature

2 Preliminary Checklist  These opportunities get filtered out because our investment criteria
only looks at opportunities with revenues upwards of INR 2Cr

Pros
 Many of these opportunities
3 3S Analysis are young HR Technology
companies which are our
primary area of interest
Cons
 Being younger companies
there would be higher
amount of handholding and
bandwidth involved

 High return potential in line  Could have longer holding

with high growth rates periods than more mature
4 Negotiation & Investment companies

 Would be closer to angel

investing than VC funding

59
 Current Vision of Philosophy

Rationale:
 Need representation from HR, Technology, and Finance
 With everyone’s busy schedule board members sometimes get overloaded
 Will help share time effectively

Board Formation Details:

 The new investors from Technology domain will be asked to join the board
 We can rotate board membership among the investors – based on interest
and availability
 As of now there is no specific rotation process that we follow

Current Board

Finance Technology HR

- Varun Talwar
- Venky Mysore
- Devyani Vaishampayan
- Sumer Datta
- Pankaj Bansal

60
 Current Vision of Philosophy

Skill development

Vocational Training Finishing Schools Teacher Training

Non-formal

Process Automation / IT / Technology

ICT in schools School Mgmt. Systems ERPs

Learning (teaching) tools

eLearning
Multimedia in schools Educational CD ROMs
Regulations

Tutoring Test Prep

Classroom Online content & assessments Live remote tutors Engg. Medical MBA UPSC Intl (GRE/GMAT/ SAT)

Pre
school
Formal

K12 Higher Education

Other professional
Primary Secondary Higher Sec. Govt. Private IB APS* Engg. Medical Business ASC** courses

2 yrs ~ 30 yrs
Student Age

* APS: Affordable Private Schools

** ASC: Arts, Science & Commerce
61
 Castle Business Overview

 Founded in 1987, Castle is a privately held company headquartered in Morrisville, NC, USA.
Business
Overview  Castle is a full service Psychometrics firm specializing in the creation of custom training and certification
programs.
 Worldwide network of test administration facilities
 500+ sites throughout North America
 2250+ sites throughout the remainder of the world
 Clients of Castle include:
 Trade and professional associations
 Multinational Corporations
 Government Agencies
 Educational Institutions

Offering
Segments

Psychometric Test Test & Training Training Accreditation

Consulting Development Delivery Development Consulting

62
62
 K – 12 Schools in India – An Overview
Key Information

 40% of children attend 7% of India’s schools (private schools).

 At least 15,000 schools charge more than ₹ 1,250 per month fees.

K 12 Education Stack

Education Levels Stakeholders/ownership Education Boards

Primary (Kindergarten to V) Government State Boards

Middle (V to VIII) Private Central Board of Secondary Education
Secondary (IX & X) Private - aided International General Certificate of Secondary
Senior Secondary (XI & XII) Education
Council for the Indian School Certification Examination
International Baccalaureate

School Desirability:
Enrolments per school
No. of Enrolments (in million)
129

Public Schools 1,199

90

Private Schools

136
75,000 950,000
Public Schools Private Schools
No. of Schools (in ‘000)

63
* CLSA Report – Indian Education Sector
 Introduction and opportunity – Market outlook
India’s Travel and Tourism Industry
• In 2010, India’s T&T industry generated INR 5,533 bn (USD 118 bn) of economic activity, according to the World Travel & Tourism Council
(WTTC). This includes INR 1,970 bn (USD 42 bn), equivalent to 3.1% of total GDP, as the direct industry contribution.

• Personal T&T contributes to 55% of the total T&T industry.

India’s T&T industry (2010)

3%
8%
2010 740

Personal travel & tourism

Business travel
90% Government expenditures 24%
Capital investments 55%
Visitor exports
2005 390 Other exports

1% 9%

Number of domestic travelers (million)

High occupancy rates Owing to the increasing demand across many categories / locations, the World Travel &
occupancy rates (ORs) are expected to firm up to 65% and further to 70% in FY11E Tourism Council
and FY12E, respectively. (WTTC) expects travel
Greater number • With increasing purchasing power, rising job opportunities and comfortable and tourism (T&T)
domestic travelers GDP/saving ratio, more and more Indians are taking holidays.. demand in India to
• Another positive trend is the increasing average length of stay of domestic grow at 8.2% annually
and international tourists. till 2019.
Increased length of
stay

64 Source: HVS Report 2011 (Hotels in India – Opportunity and Trends

 Overview of Testing & Assessments (T&A) Market in India

 Testing & assessments firms in India can be categorized by the market segments they address. Including firms which do not have
Psychometrics as a competence, the market can be categorized as follows:

Market Segments

BFSI Healthcare Skills Training Corporate

 Teacher training  Entrance Examination  Vocational (government)  Pre Hire Assessments

 Students  Test Preparation  Vocational (private)  Post Hire Assessments
Assessments  Internal Assessments  Professional  Internal Training
 Online Tutoring  Employability Organizations
assessments

 Testing & assessments customer segments in India are new and emerging. With the exception of Test Preparation for Higher
Education, companies operating within all other segments have been into business only last 10-15 years.

 There is a high variance in scale and profitability amongst players across segments and most service providers are focused only on
specific target markets. There is no service provider will skills to target all segments.

65
65
 Opportunity by market segment

Leisure Segment Business Segment

Demand Supply Demand Supply

Budget High Low High Low

Medium Range High Low High Low

Luxury Medium Low Medium Low

Compounded growth of occupancy rates over Compounded growth of average rates over
last 15 years last 15 years

0.70% 8.60%
• Three and four star hotels have the
0.30% 7.00% maximum growth rates in occupancy
6.30%
5.80% rates.
5 star deluxe 5 star 4 star 3 star
• The rates for medium range hotels
-0.50% have shown maximum growth in the
last 15 years

-1.30% 5 star deluxe 5 star 4 star 3 star

66
 Our Understanding of Castle Offerings

Based on our interaction with Castle senior management and secondary research, we have categorized Castle offerings as follows:

1. Psychometric design of training

Psychometric
Consulting 2. Recruiting Subject Matter expertise
3. Psychometric evaluation of examination
4. Psychometric evaluation of training

5. Psychometric test design

Test
6. Item writer training and Item development
Development
7. Exam assembly and passing score determination
8. Content Validation - editorial and psychometric review
9. Proctor training
10. Design of study guides, student certificates

11. Test delivery via paper-n-pencil and computers (offline or internet)

Test & Training
12. Advanced network of proctored test facility
Delivery
13. Software, web and server support for test and training delivery
14. Candidate Services - eligibility, verification and recertification
15. Computerized item banking and examination production certification

16. Workforce development products

Training
Development 17. Authoring custom courseware
18. Initial assessment of workforce - using psychometrics
19. Pre and post training assessments
20. Monitoring and feedback of training  

21. Accreditation Consulting

Accreditation
Consulting

67
67
 Embanet Compass
 Established in 1996, Embanet Compass Knowledge group has been offering online courses for students across
the US

 One of the pioneers in the field of online education in the US, the firm has been partnering with not-for-profit US
universities, in delivering degree programs to students

 Courses across the spectrum are being offered by Embanet Compass, including degree programs in management,
law, pharmacy, law, teacher education etc.

Partner University 1 Embanet Compass Students across the nation

 Program planning and design

Partner University 2  Course Development Support

 Faculty Training

 Learning Management System

 Online bookstore

Partner University n  Funding

 Faculty support  Collaborative online portal

 Provision of content  Student management

68
 KGK Knowledge City, Jaipur

Jaipur

s
km
25

Location Features

 35 acres of land
 Lies on the Jaipur Ajmer Road, approx 35 kms and 45 minutes drive away from the Jaipur City Centre
 Situated close to the upcoming Mahindra World City and upcoming townships like Omaxe City
 Close to 30 firms belonging to IT/ ITES, Engineering and Auto Ancillary and Handicrafts sectors expected to set shop in the
Mahindra SEZ
69
 Enhanced Reach* and Revenues – A Strong Value Proposition

(A) PurpleLeap’s Distribution Network

State Number of Colleges

Andhra Pradesh 30
Tamil Nadu 40
Punjab/ Haryana 10
Orissa 5
Karnataka 5
Others (Rajasthan/ UP/ Kerala) 10

(B) Corporate Relationships: 70

(C) Proposed Business Plan:

March 2011 March 2012

Colleges: 60 Colleges: 200

Corporate Corporate Relationships:
Relationships: 150 250

*The representation in the map is meant to showcase only the reach and presence in the respective states and not the location of the colleges.

Each red dot ( ) represents two colleges. Each green dot ( ) represents one college.
70
 Knowledge City Feasibility: Project Scope and Current Status
Deliverable A Deliverable B

Partner Business
Planning Field Research Profiling Planning
Research
Analysis

 Meeting with the Project K12 School Secondary and primary A detailed Business Plan for 5
Sponsors to understand: research to create a list of years, which include:
- the vision, Stakeholder Interview Format Total potential partners for K12 - Investment schedule;
- high level plan, and higher education - Projected income statements
Schools Qualitative Interviews 4
- investment plan, and
- Board affiliation,
Parents Qualitative Interviews 3 cash flows
- legal construct, - Implementation plan
- governance model Pre Schools Qualitative Interviews 2 - infrastructure plan
- legal construct
 Plan field research: - governance model
- Research guides, Higher Education Institute
- Questionnaires, and
- Communication Stakeholder Interview Format Total

Colleges Qualitative Interviews 4

Qualitative Interviews,
Students (college) Focussed Group 36
Discussions

Coaching Institutes Qualitative Interviews 4

Deliverable A: Deliverable B (Post presentation of research

findings and potential partner profiles)
Report in *.ppt format containing the following
 Analysis of the market research  Detailed business plan for five years
 Potential Partner Profiles  *.xls format

71
 Assessment Study – Methodology

Field Research – Assessment

Secondary
Planning Interviews and Report
Research
Session Observations Preparation
Research
 Meeting with the project Studying the following Analysis  Detailed documentation of
sponsors to understand: documents: assessment conducted on the
- Program Objectives basis of various parameters,
- Processes Involved  Courseware evolved through study of
- Roles, responsibilities - Facilitators Manual dashboards, collateral (and
- Handouts/ Worksheets other documents), interviews
 Activity Plan and session observations.
 Plan field research:  Pre Post Test Scores
- Research Guides  Operational dashboards No. Stakeholder* Format Completed
- Questionnaires  Collateral Qualitative
- Observation Sheets 1 Program Coordinators 3
Interviews
- Communication Qualitative
2 Trainers 11
Interviews
School Coordinators/ Qualitative
3 6
Principal Interviews

Eight sessions were observed by the Eduvisors team in the

following schools:

 Yadavindra Public School, Chandigarh – 3

 Mount St. Mary’s School, Delhi - 3
 Bloom Public School - 2

* While the program sponsor, ICICI is an important stakeholder, interviews could not be scheduled with the
72 ICICI representatives due to their unavailability.
 Project Methodology

Phase 1 Phase 2
Preparatory Work Review by the Review & revise
& Castle team Document the
Primary Research Business Plan
Secondary Research Package & present
(current status)

Due (1 Week)
Secondary research followed by interviews with stakeholder segments
(primary research) was conducted to document the following:
Interviews were conducted across the following
stakeholders:
Industry analysis:
Stakeholder segments No. of Interviews
 Testing & Assessments (T&A) market and players in India
 Market for Psychometrics K12 2
Teacher training
Feasibility for Castle: Students Assessments
Online Tutoring
 Fitment of various market segments with Castle offerings and capabilities
 Short-listing of sub-segments based on identified criteria Higher Education 3
Entrance Examination
 Detailed analyses of short-listed sub-segments
Test Preparation
Internal Assessments
Castle’s India Strategy
Employability assessments
 Partner profiles Skills Training 2
Vocational (government)
Vocational (private)
Professional Organizations
Corporate 9
Vocational (government)
Vocational (private)
Professional Organizations

73
73
 Methodology for Identifying Feasible Market Segment

K 12 Higher Education Skills Training Corporate

 Teacher training  Entrance Examination  Vocational (government)  Pre Hire Assessments

 Students  Test Preparation  Vocational (private)  Post Hire Assessments
Assessments  Internal Assessments  Professional  Internal Training
 Online Tutoring  Employability Organizations
assessments

 The sub-segments identified above were evaluated through a 2 step process based on the following identified criteria for feasibility
 Preliminary analysis to shortlist feasible segments, followed by a detailed analysis of each segment

Step 1
1 Synergies with Castle Offerings
i Existence of training, testing and assessments in the sub segment
ii Possible role of Psychometrics in the segment

Step 2
iii Current offerings of players in India 2 Profitablity
iv Overlap in Castle offerings & assesments/training value chain i Pricing power
v Market of existing private players ii Competitor analysis
iii Economies of scale and scope
3 Need for Castle Offerings iv Margins and volumes
i Similarity with existing Castle client segments
ii Need for Psychometrics 4 Feasibility of finding Potential Indian Partners
iii Acceptance of Psychometrics by Client segments i Ownership and mindset of players
iv Need for more credible processes ii Existing partnership models
iii Competency gaps amongst Indian Players
5 Regulations and other constraints
i Regulatory constraints in pricing, partnerships
ii Restrictions on size of companies that can bid for projects

74
74
 Project Methodology

Phase 1 Strategy & Planning Phase 2 Implementation

Review by the
K12 Techno
Partnership / Deal:
Preparatory Work & Secondary Research team  Origination and Support
 Transaction Management
(1 week)

(4 weeks) (3-6 months)

Plan Research Presentation

Research
Analysis

Meeting with the K12 Techno
Services management team,
to understand
- the vision
- business/ operating model
- key decision making criterion
 Primary/ Secondary research to Document the following
understand the existent regulatory (project deliverables):
framework in each of the states through
- A report with the detailed
 Study of relevant acts and bye-laws
analysis of existent rules and
 Interviews with District Education
regulations for 11 States and
Officers/ State Board officials
analysis of local demographics
 Secondary research to understand the for each shortlisted State
following: (*.pdf format)
- School going population
- Potential towns/ cities
- Purchasing power

75
 The Young Stars Program – Stakeholders and their responsibilities
Project Sponsor Implementation Partner Beneficiary

ICICI IL & FS ETS Schools

 Content Development  Session Scheduling

 Program Design
 Master Training
Program
Division of  Trainer Certification
Responsibilities
 Training of Trainers  Infrastructure
(ToT)  Arrangement of
 Approaching Schools classes/ students/
 Class room delivery sessions
 Monitoring trainers
 Stock Management

 Marketing Team (National)  Coordinators (Master  Principal/ School

Trainers) Coordinator
 Regional Team
Stakeholders  Trainers (Delivery)  Students
(Primary)
 Program Designers/ Content
Developers

76
 The Young Stars Program – Evaluation Parameters
Project Sponsor Implementation Partner ABC

ICICI IL & FS ETS Schools

Program Evaluation Parameters

 Content Development  Session Scheduling
  Program Design
Program Structure  Scheduling
 Master Training
 Content Program  Class room learning
Division of 
 ContentTrainer
class fitCertification  Student Response
Responsibilities
 Activities/ Worksheets  Pre and post test scores
  Training
Effectiveness of content in imparting of Trainers  Infrastructure
financial literacy (ToT)  Training Effectiveness
 Arrangement of
 Approaching Schools  Effectivenessclasses/
of ToT program
students/
 Trainer Effectiveness  Class room delivery sessions
 Classroom Delivery  Monitoring trainers
 Subject matter knowledge Stock Management

 MarketingClass
TeamOrganization
(National) Skills
 Coordinators (Master  Principal/ School
 Communication Skills Trainers) Coordinator
 Regional Team
 Trainers (Delivery)  Students
Stakeholders
(Primary)  Program Designers/ Content
Developers

77
 Process – Curriculum and teacher training programs
School
Graduation Skill Requirements Processes Input Learner Abilities

Independent Schools School Chains

90% 82%
Curriculum/ Content Development 80% Teacher training programs
120% 70%
60%
100% 95% 50%
38%
87% 40% 31%
30% 23%
80%
20%
9% 8% 4%
10% 4%
60% 0%

40%

20%
9%
1% 4% 4%
0%
Not available Developed inhouse Partnership

• Independent schools rely on other training bodies for the

development of teachers, while school chains are able to
• School chains are able to invest more in development of
invest in development of in-house teacher training
curriculum, whether in-House or through a partnership.
capabilities.
• The difference is not very high between independent schools
• In both cases though, teacher training and evaluation is not
and school chains as far as
a continuous process focused on the individual teachers, but
are off and on activities, mostly without much evaluation.

78
 Curriculum Development: Overview (3/3)
Curriculum Development Cycle

Feedback Loop at different levels

1 - The research conducted of the top
Subject Matter Expert
collegiate schools of the UK and US
showed that more than 80%.
2

Story Board Writer

- This would give us an effective
Cu
rric
u 3 channel to communicate the
lum
De expertise to the students even with
v elo Graphical Designer
p me the support of a mediocre teacher
n tP
ro c 4
es
s Flo
w Quality Assessment

 Subject Matter Expert (Individual/Team), the specialist in the field will structure the content mapped to the syllabus of the CBSE Board.
 Story Board Writers, on the basis of the structure provided by the Expert will develop the content. The content will be designed in the form of
modules consisting of the per class coverage of the topic(s).
 Graphical Designer, as per the course flow developed by the Experts and Writers will design the necessary animations, audio or any other
pedagogical tools that will augment the class room learning of the topic.
 Quality Assessment Team, a panel of experts will review the output by the above three and provide feedback and recommendations if
required.

79
 Madhya Pradesh Private University Act: Procedure

Procedure for establishing the university

Establishment of
Application Evaluation Letter of Intent Compliance
the university

State government issues a letter of If the state government is satisfied by

intent, if it is satisfied with the report the verification report, university is
submitted by the regulatory commission established by notification in the official
gazette.

The applicant after receiving the

 Application is evaluated by the
letter of intent will be required to
regulatory commission established by
comply with all conditions within 1-3
the state government and a report is
years and submit a compliance
submitted
report

 To be submitted by the sponsoring body to Madhya Pradesh Private University

Regulatory Commission
 Application must be accompanied by a detailed project report
 Sponsoring body can be any of the following:
 Society registered under Madhya Pradesh Society’s Registrykaran Adhiniyam
 Public Trust
 Company registered under section 25 of the Companies Act, 1956

* The State Government may extend the term of letter of intent for the further period of one year if such request is made by the
Sponsoring Body and the State Government is satisfied in respect of the reasons given by the Sponsoring Body for the
extension of the letter of intent.
80
 Feasibility Study: Scope

The study evaluates the feasibility of partnerships at two levels, Institution and Programs, and following is the scope:

Institution Level
1
1. Indian and Foreign University Partnerships
 Current models Program Level
2
 Pending legislation (Foreign Educational Institutions Bill)
1. Regulations
2. Establishing a Private University - State Legislations 2. Demand
 Student
Based on various parameters like size, scale, demand etc, 14 large states  Employers
have been considered in the study: 3. Supply
1. Karnataka  Institutions
8. Punjab
2. Andhra Pradesh 9. Rajasthan 4. Price points (fee)
3. Haryana 10. Tamil Nadu 5. Compensation levels
4. Uttar Pradesh 11. West Bengal
5. Maharashtra 12. Madhya Pradesh
6. Gujarat 13. Kerala
7. Delhi Based on our assessment on the following two criteria, 28 Programs* have
14. Chhattisgarh
been identified for further study:
 ‘Supply’ of available program providers vs. ‘demand’ of seats by
students
 ‘Supply’ of trained graduates vs. ‘demand’ by employers

* Listed on a following slide

81
81
 Testing & Assessments - Market (sub) Segments*

Higher
K 12 Skills Training Corporate
Education

Professional Pre-hire
Schools HE Entrance
Organizations Assessments

Teacher Training Entrance Exams Vocational Entry level

(Government)
Student Assessments Test Preparation Mid Mgmt. level
Vocational
(Private)
Senior Mgmt. level
Augmented Public Private Partnership
HE Studies
Learning
Post-hire
Subsidiary Assessments
Training Delivery Internal Assessments

Training for Employability

Training Company Internal Trg. &
Teacher Training
Development
(eLearning)

* The break down is meant to demonstrate the relevant sub segment within the domain. The structure does not cover all sub segments but only those
concerned with testing and assessments
82
82
 Step-1 Short-listing Criteria

Higher
K 12 Skills Training Corporate
Education

Step 1 Professional Pre-hire

Schools HE Entrance
1 Synergies with Castle Offerings Organizations Assessments
i Existence of training, testing and assessments in the sub segment
ii Possible
Teacher role of Psychometrics Entrance
Training in the segment
Exams Vocational Entry level
(Government)
Step 2
 Student
iiiBased
Assessments
on above
Current 2 criteria,
offerings of players
Test Preparation
theinsub-segments
India identified for further analysis are presented in the next page.
2Vocational
Profitablity Mid Mgmt. level
iv Overlap in Castle offerings & assesments/training value chain i (Private)
Pricing power
v Market of existing private players ii Competitor analysis Senior Mgmt. level
Augmented iii Economies of scale
Public Private Partnership and scope
HE Studies
3 Learning
Need for Castle Offerings iv Margins and volumes
i Similarity with existing Castle client segments Post-hire
Subsidiary Assessments
Training
ii Need Delivery
for Psychometrics Internal Assessments 4 Feasibility of finding Potential Indian Partners
iii Acceptance of Psychometrics by Client segments i Ownership and mindset of players
iv Need for more credible processes Training for Employability
Training Company
ii Existing partnership models Internal Trg. &
Teacher Training
Development
iii Competency gaps amongst Indian Players
(eLearning)
5 Regulations and other constraints
i Regulatory constraints in pricing, partnerships
ii Restrictions on size of companies that can bid for projects

83
83
 Step 1: Short-listing of Market Segments

Higher
K 12 Skills Training Corporate
Education

 Professional
 Pre-hire
Schools HE Entrance
Organizations Assessments

 Teacher Training  Entrance Exams  Vocational 

Entry level
(Government)
Student Assessments Test Preparation   Mid Mgmt. level
Vocational
(Private)

Senior Mgmt. level
Augmented  Public Private Partnership
HE Studies
Learning

 Subsidiary Post-hire
Training Delivery Internal Assessments Assessments

 Teacher Training  Training for Employability  Training Company  Internal Trg. &
Development
(eLearning)

84
84
 T&A needs in K12 – Feasibility for Castle

Higher
K 12 Skills Training Corporate
Education

 Professional
 Pre-hire
Schools HE Entrance
Organizations Assessments

 Teacher Training  Entrance Exams  Vocational 

Entry level
(Government)
Student Assessments Test Preparation   Mid Mgmt. level
Vocational
(Private)

Senior Mgmt. level
Augmented  Public Private Partnership
HE Studies
Learning

 Subsidiary Post-hire
Training Delivery Internal Assessments Assessments

 Teacher Training  Training for Employability  Training Company  Internal Trg. &
Development
(eLearning)

85
85
 Types of Endowment Funds

An endowment fund, thus is a collection of various individual funds (thousands in case of a full fledged endowment), the purpose of each
fund being decided by the donor. The individual funds, typically belong to one of the following classes:

1. Term Endowment: A fund of money, the return on investment of which is to be utilized for a particular period of time (decided mutually
between the donor and the institute), for a specific purpose. Once the term expires, the institute is free to use the principal as it sees
fit.

2. Quasi Endowment: A fund, from which the institute may take either the annual return or some portion of the principal for use as and
when the need arises.

3. Unrestricted Endowment: A gift, where the donor gives the institute the freedom and flexibility to use the ROI for whichever purpose
the college desires to focus on.

4. Restricted Endowment: A fund, which is ring fenced for a particular purpose, as defined by the donor.

Majority of the donations (three-fourth or more) made towards the large endowment funds (like The Yale Endowment) are restricted gifts
which is bestowed by the donor for a particular purpose.

Infrastructure
Research Programs

Restricted Endowments
Scholarships
Professorships
Fellowships
Lectureships

86
 Economic Impact of an EduCity on the local geography (State)

Social-economic Impact:

 An EduCity of approx. 75,000 students generates direct employment for approx. 3,500 full and
part-time faculty & staff.
 8,500 direct jobs
 Every single employment in the EduCity generates additional 1.4 jobs in the state’s economy,
leading to approx. 8,500 direct jobs in the state.
 20,000 youth ready to be
 Approx. 25,000 students graduating every year get employed at an approx. Rs 2 lakhs per employed within the
annum incremental salary. state, every year
 With as assumption that 70% of the youth are employed within the State and induced
employment of additional 0.2
 Rural Areas adjoining to the Education City will prosper Socially and Economically. It will create
employment opportunities for the local population.

Financial Impact in the State

 NSDP Contribution:
 NSDP contribution through: ~ Rs 750-900 crores
 Employment generated, and
 Direct and Indirect expenditure of the EduCity
 Tax revenue:
 Long-term tax revenues to the State ~ Rs 10,000 crs in 50 yrs

Forex contribution to the State

 Education City will offer quality education of international standard so as to attract students from
across the globe and earn foreign exchange for the State. Education of high standard will attract
 Forex Contribution:
students from Indian Diaspora, neighbouring countries and adjoining regions like Southeast Asia, ~ $20-25M / year
West Asia, Sri Lanka, Burma, Bangladesh, Nepal, and Pakistan etc.
 Attract investments in supportive infrastructure & services.

87
 Business Incubator at XLRI - BIX
Why a Business Incubator at XLRI?

 In India, there are less than 100 incubators as compared to 1400 incubators in United States of America, 800 in China and 400 in Korea

 Building an entrepreneurship conducive environment necessitates initiatives from educational centers of excellence in the country to take
the lead and guide business ideas from being ideas to revenue generating businesses

 To create job opportunities (quantified)

 To generate quantified revenues for companies associated (incubated or supported by) with BIX
BIX – Key  To help nurture the latent entrepreneurial spirit and to create and support high growth entrepreneurs
Objectives
 To provide critical support to start-ups and early stage ventures in the form of physical infrastructure, mentorship,
business network, funding and learning tools and materials

 To design and implement the incubation program

 To design and implement the mentorship program to complement the incubation program

BIX – Key  To find alliances and partners for the business incubator to run in a self sustained manner
Tasks
 To form and maintain an efficient system of governance consisting of an advisory board and management team

 To perform financial modeling, budgeting and fund deployment activities as scheduled

88
 Indian collegiate school offerings
School
Graduation Skill Requirements
American collegiate
schools
Very prominent. Common
technology driven classes
IT enabled and usage of products like
environment Kindles and IPads in
classes. Full internet
connectivity in the schools.
One or two libraries with an
Library
average of 75000 volumes
89
Processes
Indian collegiate schools
Very few schools conduct
technology driven classes
using interactive white
boards etc. No mention of
full internet connectivity in
the school.
One or two libraries with an
average of 11500 volumes
Input Learner Abilities
Only 1 of 8 ICS surveyed have started fusing
technology and teaching in classes and have
also adopted latest technologies as their mode
of teaching.
The ICS have good library facilities but are not
exceptional when compared to non-collegiate
schools in India.
 K12 Education in Jaipur – Market Landscape …. Contd.

Spectrum of Schools – Jaipur Segment focus of proposed School

CBSE CBSE CBSE CIE, IB ICSE

 ICSE schools have not been successful in Jaipur

 Neighborhood schools  No new school is targeting the ICSE curriculum
 Target middle class and lower middle class families  Reason could be the traditional presence of CBSE
 In many cases, these schools do not have classes from 1 – 12. based schools in Jaipur
Instead, in each locality there will be few schools for Classes 1 –
5 or 1 – 8, with one or two schools with Classes 1 – 12  New wave of schools
 Typical Fee Range: Upto Rs 18,000  Typically target upper middle class families and
 Eg: SV Public School
above
 Infrastructure, marketing, teacher quality, practical
learning – key differentiators
 Branded Schools  Targeting business class families and service class
 Typically middle class families and above send their children to families, with individuals in senior management
such schools positions
 These schools have been established years ago, with the  Typical fee range: Rs 60,000 and above
youngest of them being about 25 years old  Eg: Step by Step International School, Winfinity
 High brand value International School
 Typical fee range: Rs 35,000 – Rs 60,000
 Children of bureaucrats and business families typically prefer
such schools  National Brands/ Brands successful outside Jaipur
 Vidyashram the choice of school for academically oriented  Typically target middle class families and above
parents and attracts educated service class families  Have successfully run schools outside Jaipur and
 Eg: Vidyashram, Maharani Gayathri Devi Public School, SMS are now targeting the potential in Jaipur
Vidyalaya  Typical fee range: Rs 60,000 and above
 Eg: DPS Jaipur, GD Goenka Public School, Podar
World School

90
 Partnership Models
School Management Services Rental Model

 Local partner to invest in land,

 Local partner to invest in land,
infrastructure and capital funding
infrastructure and capital funding
 Fixed fee paid to the firm by the local
partner

Local Partner Firm Local Partner Firm

 Responsible for both pre operation and post  Firm responsible for pre operation and post
operation services operation services
 Rental paid to the local partner

Franchise Model Joint Venture

 Local partner to invest in land,
infrastructure and capital funding
 Local partner to manage post operation  Local partner to invest in land/
aspect of the school infrastructure
 Fee paid to the firm: Royalty + % of revenue

Local Partner Firm

Local Partner Firm

 Firm responsible for pre operation and post

operation services
 Responsible for only pre operation services  Fee paid to local partner: Percentage of
revenue

91
 Partnership Models – Viable for KGK Infrastructure
School Management Services Rental Model
 Local partner to invest in land,
 
infrastructure and capital funding
Fixed fee paid to the firm by the local
 Local partner to invest in
infrastructure and capital funding
land,

partner

Local Partner Firm Local Partner Firm

 Responsible for both pre operation and post  Firm responsible for pre operation and post
operation services operation services
 Rental paid to the local partner

Franchise Model Joint Venture

 Local partner to invest in land,


infrastructure and capital funding
Local partner to manage post operation
aspect of the school
  Local partner to invest in land/
infrastructure
 Fee paid to the firm: Royalty + % of revenue

Local Partner Firm

Local Partner Firm

 Firm responsible for pre operation and post

operation services
 Responsible for only pre operation services  Fee paid to local partner: Percentage of
revenue

92
 Endowment Funds Abroad: Structure and Governance Model

University/ college endowment funds have either a single tiered governance model, where the endowment fund team acts independently with
the top management of the institute being a part of the Board, or a two tiered structure where the fund team activities is overseen by an
investment committee which is further governed by the statutes of laid down by the Board of Governors of the institute.

Two Tiered
The university has its representation in the
Single Tiered Board/ Investment Committee through an
elected nominee, who could be the Vice
Board of Governors Investment Committee
(Institute)
Chancellor, Vice President (Finance and
Administration), University President or the Vice
President, past Deans of the University etc.

CEO

Functional Team 1

Functional Team 2

Functional Team 3

93
 Endowment Funds in India: Structure and Governance Model

Institution Endowment Fund (Trust, Society or a Sec 25 Co.)

Board of Governors

Alumni, or
Board Institute Director

Director

CEO
Deans

Associate Deans
Fund Raising Team

Chairperson Fund Investment Team

Functional Heads Fund Disbursement Team

Accounting/ Admin

94
 Endowment Fund: Legal Constructs

Not for profit Endowment Funds can be a:

Trust Society Section 25 Company

Legislation State “Public Trust Acts” “Societies Registration Act, 1860” “Indian Companies Act, 1956”

Authority Charity Commissioner Registrar of Societies Registrar of Companies

Number of A minimum of 2 individuals A minimum of 7 individuals A minimum of 3 individuals

founding members

Board of Trustees Governing body or management Governing body or management

Management committee committee

Mode of Appointment Election by members of the general Election by members of the general
Succession body body

95
 BIX – Structure and Governance Model
XLRI
Section 25
BIX
Company
Board of Governors

(Alumni, Institute
Board Director)

Director

CEO
Deans

Management
Associate Deans

Research
Chairperson

Accounting
Functional Heads

Administration

Representation of the Section 25 Company in the

Board of Governors via CEO and Chairman

96
 Manpower Solutions: Key Impact

 Manpower solutions will have an impact on the quality of classroom teaching. The trainer pool available to the school chains (trainer
pool will consist of school teachers and test preparation trainers) will be better than stand alone schools.

CSMS blended
delivery

Classroom Multimedia
Trainer Pool
Learning Solutions Training Content

Test School Curriculum Class

School
Preparation Teachers and text Activity
Teachers
Trainers Manual books Material

 Manpower solutions will manage the demand of teachers across schools.

 The centralized hiring of leading test preparation trainers will ensure that the quality of test preparation at schools is at par
with the training offered in the few cities of India which have emerged as hubs for test preparation.

 The teacher training offered by manpower solutions (in partnership with content delivery team) will be driven by the school
teachers manual, to ensure that a standard process is in place for classroom delivery.

97
 Legal Construct

Private players in the formal education space are using a two-level structure to circumvent the ‘not-for-profit’ diktat. The company creates a
Trust or a Society (a not-for-profit body) that runs the educational institute at one level. It further creates a subsidiary that supplies land, services
and infrastructure to the Trust in lieu of rental/ fees. In this way, the entity manages to unlock the ‘surplus’. However, it is recommended that the
trust and the managing company is not run by the same management and common directors and that the transactions are done at an arm’s
length (the transactions have to be done at a fair market value, as if the two parties were unrelated).

In this way, the entity (company) manages

Company Tier 3 to unlock the ‘surplus’ and distribute it as
dividends or use it to fund other ventures.

It further creates a subsidiary that

Subsidiary Subsidiary Subsidiary
(Infra) (Manage) (H/W Suppliers) Tier 2 supplies land, services and infrastructure
to the trust in lieu of rental/ fees.

Management fees
Equipment and
Lease rentals
hardware fees
ABC Trust
(Non profit body generating
a ‘reasonable surplus’)
Tier 1 The company creates a trust that runs the
educational institute at one level.
(not for profit)

Teacher Salaries
Tuition Fees

98
 Indian HEI and Foreign University Partnership Construct

 As demonstrated below, the partnership construct treats a foreign university as a service provider to the Indian (private) university
 The commercial terms of the engagement can be a mix of fixed or annual fee for the services provided by the foreign university. Certain
engagements are also known to have a component of share of revenues from the Indian university.

Indian Higher Education Institution (HEI) Foreign University

Company

Subsidiary Subsidiary Subsidiary Foreign

(Infra) (Manage) (H/W Suppliers) University

Management fees Services as per

Equipment and the Partnership
Lease rentals
hardware fees agreement
ABC Trust  Service Specific Fee
 Royalty for the Brand
(Non profit body generating  Revenue Share
a ‘reasonable surplus’)

Teacher Salaries
Tuition Fees

99
 Psychometric Landscape in India

Most common Psychometric tools used, primarily in

corporate India, are

 Thomas profiling 6 years +

 16PF SHL
 Firo B Thomas
 Predictive Index 2-5 years DDI
 DISC
 MBTI
 Work-based simulation PAC, Meta- I,
STG, Skill
 Technical tests
0-2 years Profiler,
 Behavioural tests MeritTrac &
 Aptitude: verbal reasoning, mathematics, problem- others
solving,
general knowledge
 IQ tests
 Personality and Preference Inventory-Normative (PAPI) 0 2 6 10 14 18 +22
 SHL Competency Tool The horizontal axis indicate the dollar price of assessment , and vertical axis
indicate the experience of workers in years, for which the assessment is used.
 Hay Groups Psychometric tool

 Psychometric assessments are most frequently used for selection and recruitment, followed by learning and development and are mostly
used for entry level job positions
 For hiring, use of personality tests such as Myers Briggs Type Indicator (MBTI) and Preference Inventory-Normative (PAPI) is
predominant. Many companies use new, relatively unknown tests which are often developed in house.

100
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 Proposed Delivery Partnership
Proposed Delivery Model: Domain specific certification programs designed by Indian School of Business, with PurpleLeap as the technology and
operational partner

Tier II-III B-Schools

Provides delivery Intermediary (provides the delivery platform) Student benefits:
infrastructure viz.
 High quality education
 Domain Specific Course  Providing Technology Platform (VSAT studios,  Certification with the
Design Industry
Online Portal brand of a top B school
ready
 Faculty  Handling enrollment and acquisition of students attached
students
 CareerCenters and industry access
 Performance evaluation  Platform to showcase
of students ability to the industry

(Delivery Organization) (Customers)

Program Delivery Platform

The platform utilizes a hybrid model which uses the following for program delivery
 VSAT Technology
 VSAT enabled multi media classrooms capable of 2-way video conferencing
 One to many model for dissemination of course
 Online Portal
 Equipped with collaborative learning tools
 Platform for submission of assignments, assessments and for providing feedback.
 In-person Interaction
 Via the PurpleLeap coordinator present at the Tier II-III colleges (as part of the Career Centers)
 Via trainer visits to the college

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 State Focus – Chhattisgarh
Land and Infrastructure

 Land and building to be owned by the society/ trust. In case, the society/ trust does not have ownership of the land, then
arrangements have to be made for the acquisition of the land.

Minimum Land Play Area

Criterion
Requirement  Urban Areas:
Urban Areas 1 acre  Facilities for indoor games to be provided
 In case of no facilities for outdoor games within the school premises,
Non Urban Areas 2 acres sports facilities for at least two games (hockey, football, badminton,
Student strength>1,500 3 acres volleyball) to be provided in the nearby vicinity of the school

 Non Urban Areas:

 Facilities for at least two outdoor games (hockey, football, badminton,
Classes Built up area volleyball) to be provided within the school premises.
Classes VI - X 2,000 sq ft.
Classes VI - XII 2,600 sq ft. Library
 Excluding text books, at least 3 books to be provided per student in urban
Classes I - XII 4,000 sq ft.
areas and at least 1 book to be provided per student in non urban areas

Criterion Area per student Laboratories

 For classes from IX - XII, separate laboratories for physics, chemistry and life
Cities 8 sq ft.
sciences to be provided
Towns 6 sq ft.
Rural Areas 4 sq ft. Other Requirements
 Separate rooms to be provided for the principal office, staff office, faculty,
library and laboratory.
 Maximum of only 45 students to be housed in one classroom

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10
 Admission Process

Parent arrives at the Initial conversation Collection of Presentation to the

Tour of the School
reception with the parent Information parent

Answering of parent Interaction with Briefing about Handing over of

queries Principal admission prospectus and form

Schedule child
Follow up call
principal interaction

Follow up call
If the parent has purchased the school prospectus,
Step 1: The AO will call the parent on his/ her mobile number/landline number, and will remind the parent of the dates for submission of
the application form.
If the parent has not purchased the school prospectus,
Step 1: The AO will call the parent and enquire about whether a decision has been taken. If the decision is in the positive, the AO will
invite the parent to the school and ensure that sale of the admission kit is made.
 If the parent is positive, the AO is to schedule a meeting of the child and the parent with the school Principal.
 If the parent’s decision is in the negative, the AO will enquire about the reasons for the same, and thank the parent for the time he/ she
invested in the school.

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 Thanks !

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