Make the Right Choice

Life insurance policies serve various objectives; they are flexible and can be mould as per ones need and convenience to suite multiple requirements; know when term plans work and when to look for savings linked plans

Someone rightly said choices are the hinges of destiny; and making a choice is not an easy task, especially when it amounts to selecting from the best available options. Mention life insurance and images of protection, savings, investment, and pension, besides tax savings conjure. Life insurance is a very important and flexible financial instrument which helps us protect the financial future of our dependents and at the same time save and invest for our own future needs. The first rule of life insurance is to definitely take a policy when one has financial dependents, and all types of life insurance policies provide for death cover.

The various types of life insurance policies available make policy selection to address protection needs alone or savings a daunting task. Moreover, there are policies that exist to address the different financial risks that one is exposed to in life during different stages in life. All this makes the case for one to have an insurance portfolio that addresses different needs at different times. For instance, a single person most often has no financial dependents and has little financial risks compared to a married man with children or a couple with financially dependent parents. Likewise someone in their 50s having taken care of their financial commitments will be looking forward to their life in retirement and little insurance cover.

There is a kind of life insurance policy that focuses only on covering financial risk, protecting one’s financial dependents in case of contingencies. Term insurance is low cost, high value insurance wherein one is insured only against the risk of death and facilitates one to be always adequately insured. Term plans are also useful when anyone takes on additional financial liabilities such as a loan to fund a house for a long period of time. In such circumstances, the term plan acts as a hedge against life’s uncertainties providing insurance cover equivalent to the loan amount and not impact the insured’s dependents were he to die during the loan repayment. Youngsters and those with high insurance needs should always look at term plans in their insurance portfolios. Whole life policies are another variant which provides an opportunity for risk cover through out ones life as well as help in building cash value as a legacy.

There are also insurance plans that address savings and growth by going beyond the death cover which aids the insured achieve their financial goals. Return-linked plans have a savings component besides protection, which is of great value to the policyholder in the long run. For example, return-linked policies are of immense help to achieve long-term financial goals such as the higher education needs of children which are 15-18 years away or building a retirement corpus which is 25-30 years away. In return-linked plans one makes periodic premium payments over several years which benefit from averaging, gain from the power of compounding and ride over various market cycles making them an ideal tool for long-term wealth creation. Such policies also offer choice of investments across equity and debt enabling the policyholder to match the savings plan that best meets his risk profile.

We live in an era of extreme unpredictability coupled with changing lifestyle owing to economic growth. Such development makes insurance needs dynamic and one should review and re-assess one’s insurance needs every time there is a significant change in lifestyle and finances. Doing so will ensure that one can maintain the same standard of living in the future and also ensure that dependents do not have to make any financial compromises in the future. It is in this context that the flexibility offered by insurance policies addresses the need for only risk cover as well as returns for every stage in life.

The ABC of Branding

To understand the importance of branding imagine the possible scenario of a shop shelf with similar looking or faceless packs. Cars on the road with no marquee or the names proudly displayed. People do use a particular category to make a statement i.e a flat tv is more preferable than a normal tv and a plasma tv is more premium than a flat tv. But a Sony makes a statement which is different than a Weston.
Turning a product in to a brand require incremental efforts. This incremental effort is worth the effort because it is the brand that adds significant value when it is well recognized and evokes positive associations in the minds of the consumer, besides of course commanding additional price premium.
A brand is inextricably woven into consumer's daily life and routine and that’s why it should be easy to comprehend and stand for something simple; one thing. But how does a brand develop this consistent, repeatable positive association with the consumer? What is it that prompts customers to buy different products from the same brand? It is because brands create values and associations which are much above the product category. The most common example of a brand that transcends categories is TATA. Is there any product or service that this brand cannot venture into?
The process of creating enduring brands can be as simple as ABC by including three simple principles in your brand strategy.

Make your brand AUTHENTIC:
The measure of a successful brand so often depends on whether it comes across as honest and genuine in the eyes of the consumer. Overloaded by sales pitches, consumers toady are gravitating toward brands that they sense are true and genuine.
In an increasingly glitzy world of spun messages and manipulated experiences -where nearly everything we encounter is created to drive consumption - elevating a brand above the fray requires genuine creativity and discipline.
Hunger for the authentic is all around us. You can see it in the way millions are drawn to mission-driven products like Khadi. Fab India ‘s success emantes from here.
Authenticity is becoming an increasingly important point of leverage for brands that recognise and moreover respect their stakeholders. To maintain its integrity, a brand must remain true to its values. And yet, to be relevant - or cool - a brand must be as dynamic as change itself. An authentic brand reconciles those two conflicting impulses, finding ways to be original within the context of its history. At a human level, Mother Theresa and Mahatma Gandhi are examples where authenticity, honesty and integrity merge.
But we know lots of brands can look authentic, and not be. Their identities are created to intentionally portray authenticity, while not being truthful at all. And then there are the brands where authenticity is at the core of their existence. Amul & TATA are two great examples as both brands command respect due to their heritage and history of authentic product delivery, yet always come across as contemporary by remaining relevant.

Make your brand promise B ELIEVABLE:
The goal of any brand positioning exercise is to develop a unique, compelling and believable brand promise.
Believable brand positioning is based on compelling truths or pillars. The most respected brands are those that live their values and not just promote them.
Hyperbole has a legitimate place in the world of advertising but not all hyperbolism fares equally well. How often have we seen superlative claims that exaggerate to a point of absurdity - World’s most comfortable shoe brand used by 9 out of 10 film stars, etc. You are left wondering at the audacity and bravado of the claim. So even if the product is genuinely good, you tend to write it off as the claim is impossible to believe and relate to. So to make the brand believable, it is important that the story the brand tells through its action always aligns with the story it tells through its communication.
Financial brands have been viewed with suspicion due to the economic environment; however Max New York Life hasn’t had any believability issues. This is not because it has done anything unique, but because of the way it has behaved, functioned and interacted with it’s customers.

Drive CREATIVITY in Brands:
Everyone talks about creativity and its crucial role in enabling brands to grow and achieve success. But how can we make it happen? The trick is to make your brand interesting and exciting by doing little things all the time.
In the world of creativity, consumers control the dialogue; not the brand. This understanding simply implies that influencing consumers requires a new way of thinking. We need to get inside the consumer’s mind, understand their lives and identify the moments they will connect with various brands’ messages. Take Apple, for example. Apple simply motivates us to creativity. The company has attempted, since its inception days when it was Apple Computer, to foster a strong brand identity that’s associated with an image of creativity and now not only do consumers consider Apple creative, but the subliminal display of an Apple logo is enough to motivate them to be more creative.
Creativity creates attention for the brand. Attention is influenced by an element of surprise. It forges deeper connection and newer perspectives. When Richard Branson gets on an elephant, he understands that the media does not get too many interesting opportunities like this. In a more subtle manner, he has creatively attracted attention and excitement to add to the brand quotient of Virgin Atlantic.
A creative approach can provide an added reason to buy on top of an incentive. Most importantly, effective creativity persuades with increased conviction. It helps you get a breakthrough insight and creates a BIG IDEA.

Power Women

Q. As a woman boss, what has been your learning curve vis-a-vis managing a team?
A. I believe any leadership position comes with its own set of challenges that are not just restricted to gender. As a leader it is important to listen to your team and have a democratic approach, to believe on your instinct and leverage your gut feel. You need to trust and respect your team for them to reciprocate the same. I have learned to be more collaborative and to nurture relationships within and outside the company by understanding the person’s requirements and proactively providing solutions.

Q. Do you believe that you really need to work harder than your team in order to remain ahead and lead successfully?
A. Yes. But this is not just because I am a woman. Leading by example is the best form of motivation. I want my team and employees to work hard and explore their abilities to the utmost extent. I need to be a role model for them to do the same, showing them the way so that I can build a trustful and loyal relationship with them.

Q. Do you give enough leeway to your team members so that they can weave in their personal responsibilities into their professional lives (holidays, flexi-hours, perks, medical facilities)?
A. I believe in driving personal ownership in the team. I am myself a mother, a wife as well as a consummate professional and understand the importance of family. In addition, I also understand that for any organization to be successful it is essential for the employees to feel cared for. Therefore, I try o give ample space to my team and trust them to balance both their personal and professional life with great aplomb.

Q. What do you feel are the important qualifications that you need to have in the profession?
A. To look at the overall strategic picture and think long-term
B. Being a Team player, stand by with your team and trust them to do their jobs.

Q. Being the marketing director of one of India's most sought-after insurance company, what are the landmark developments and achievements that you have been able to bring on board at Max New York Life Insurance?
I joined Max New York Life Insurance in 2007. In these five years the growth in the life insurance market has been manifold. Under my leadership MNYL has become synonymous with child life insurance. We have adopted a 360-degree marketing approach to drive the brand campaign through product launches.
We have used extensive customer insights and launched the igenius initiative. Igenius is an unique parent-child program that promotes all-round child development. This initiative is now in its second year and has already 1 lak members on Facebook.
Apart from that, products such as Max New York Life Shiksha Plus II and Max New York Life College Plan were launched to provide resources for all round development for children under all uncertain circumstances.
Today, MNYL’s brand awareness score is on an all time high of 98% as of March 2011 as compared to 89% in March 2010 placing the brand at No. 4 rank amongst all private players. This was a result of creative TV Commercials, efficient media planning, public relations initiatives which focused on key industry issues and the launch of an innovative consumer engagement platform - igenius.

Q. Do companies with women in the leadership position perform better?
An organization does not function as a social structure. A man in a leadership position has to prove himself equally as a woman. He too has to deliver. In my opinion, companies perform better when they have a clear-sighted, visionary, democratic and nurturing leader. Gender really does not matter.

Q. How do developing nations perceive women entrepreneurs/leaders?
We had Mrs Indira Gandhi as India’s Prime Minister, even when our country was termed as a ‘third-world country’. Even Sri Lanka had a woman President long before any Western country had a woman leader. So even though the West thinks that women have better opportunities, I do not completely agree to it.
However, the countries have had very less women working in the corporate arena. And they are letting go of old stereotypes. Now companies are working out strategies not only to incorporate women employees in the work force but into the boardroom as well. Other strategies include flexible working arrangements and child care policies. But there is still a lot that needs to be done.
But developing countries should not only look at the top order in the ladder. Affirmative actions in areas of women harassments in workplace should be one of the major agendas in these countries.

Q. The glass ceiling: Does it still exist?
Yes, it does but it is gradually developing cracks. The real issue is societal. Until society catches up with the advances that have taken place within companies, women have to contend with discrimination. This only increases our determination and as more and more women take up leadership positions, they would help pave way for the younger generation and the ceiling would be broken automatically.

Q. Are women CEOs/CMOs better managers? Does gender define leadership skills? As I have commented earlier, gender does not define good leadership skills. It might make a difference in terms of leadership styles.
Having said that, I do think there are some skills that a women leader brings to the table, such as:-
1. Emotional connect – Women are generally better in understanding and connecting with the softer aspects of professionalism. We read faces and undertones better where men miss the subtlety.
2. We are more collaborative in our approach which makes us great team players.
3. Our ability to balance work and personal life makes sure that we do not go overboard with anything.
4. Women are more intuitive and hence pre-empt a lot of issues.

Q. What is your leadership style? What are the factors that attribute to your success?
A. I have no particular style of functioning. I believe, that a good leader creates followers but a great leader is instrumental in creating more leaders. We need to hand over the baton of our learnings to our team members so that they can be shaped into future leaders.

Q. What are the values which influence the leadership process?
A. The values of personal integrity, hard work, perseverance, and discipline are universal and always influence the leadership process.

Q. What are the challenges associated with leading effectively in a highly competitive market?
A. Well more than challenges, I personally would like to call them learnings. Every player is present because they are good, so we need to be creative, innovative and constantly striving to do our best and stand out from the clutter.

Q. How do you deal with success and failure? Which one teaches you the most?
A. Failure is unavoidable for anyone. But I treat it as a stepping stone to success. And when I am successful – I am humbled. It makes me more determined.

Q.What are her views on:1. Passion and Commitment to work (includes hard work put in, the right spirit when facing hurdles, persistence)
A. Are absolutely necessary for a successful professional. These values make a great leader stand out among the good ones.
2. Target setting
A. Every new challenge needs specific targets whether long-term or short. Well defined goals lead to well managed outputs.
3. Vision and leadership
A. Leadership vision should substantiate change in the organization. One needs to pursue their goal with passion and commitment and inspire your colleagues and customers as well.
4. Multi-tasking
A. In the present times it is as essential as breathing. This is one of the traits which all women usually possess as they are always multitasking between their professional and personal life.
5. Conflict management (this would include issues of circumventing biases, dealing with opposition to getting promoted, lack of co-operation from colleagues you supersede).
A. Conflicts are inevitable. It is best to deal with them as soon as they crop up. I believe in trusting my team and people so that they can come to me with their troubles and we can achieve proper resolution in an open and transparent manner.

Business Today coverage on BT Most Powerful Women - The Other 25

Anisha Motwani, Director and Chief Marketing Officer, Max New York Life InsuranceAnisha Motwani was responsible for several memorable and effective advertising campaigns in her 19-year career. She has worked with agencies such as Leo Burnett, Mudra Communications and McCann Erickson.Bala Deshpande, Senior MD, New Enterprise AssociatesIn 2008, Bala Deshpande left ICICI Venture to join New Enterprise Associates, or NEA, a US-based venture capital fund. A Masters in Economics and an MBA, she has worked with FMCG companies such as Bestfoods and Cadburys. NEA, which had raised a $2.5-billion global fund in January 2010, plans to allocate 15 per cent of it to investments in India.