Category: CEO

Business Education, Career Management, CEO

Asking for a raise? Here’s how you may do it!

Asking for a raise is more than a conversation—it’s a process that requires preparation, confidence, and persistence. By following these steps, you’ll not only make a strong case for a salary increase but also position yourself as a proactive and valuable team member. Remember, even if the answer is no today, these strategies will keep you on track for success in the future.

So, start collecting salary data, identify where you are in the spectrum, and discuss with your mentor or a fiend—your next raise could be just a conversation away!

Step -1

Before you ask for a raise, it’s essential to know your worth in the job market. Research the average salary for your role, experience, and location using tools like Glassdoor, Payscale, or industry-specific reports. This data not only provides you with a realistic target but also strengthens your argument by grounding it in factual market trends.

  • Pro Tip: Adjust your expectation based on your qualifications, skills, and the cost of living in your region.

Step-2

Numbers speak louder than words. To justify your request, compile a list of your accomplishments, focusing on measurable outcomes. Did you boost revenue, save costs, improve efficiency, or lead a successful project? Highlight the direct impact you’ve had on the company’s success.

  • Example: Instead of saying, “I’ve done a great job managing projects,” say, “I managed three key projects this year that collectively saved the company $50,000 and improved client satisfaction by 20%.”

Step-3

Once your research and achievements are ready, plan how you’ll present your case. Structure your points to emphasize:

  • Your contributions.
  • How they align with the company’s goals.
  • Why your performance merits a raise.

Additionally, research your company’s financial health and timing. Avoid asking during budget cuts or downturns.

  • Pro Tip: Schedule a meeting in advance and let your manager know you want to discuss your growth and contributions.

Step-4

Confidence is key, and practicing your delivery helps you stay calm and composed. Rehearse what you’ll say with a friend, mentor, or even in front of a mirror. Anticipate possible objections and prepare responses.

  • Example Script:
    “Over the past year, I’ve achieved [specific accomplishments]. Given my contributions and current market trends, I’d like to discuss adjusting my salary to [$specific amount].”

Step-5

When asking for a raise, be assertive yet respectful. Avoid tentative phrases like “I think” or “maybe.” Instead, use confident language that conveys your value.

  • Weak: “I was hoping we could discuss a small raise if possible.”
  • Strong: “I’d like to discuss aligning my compensation with the value I bring to the team.”

Assertiveness demonstrates self-awareness and professionalism, increasing your chances of being taken seriously.

Step-6

Not all raise requests are approved immediately. Be prepared with alternative asks that still benefit you. These could include:

  • Additional vacation days.
  • Flexible work arrangements.
  • Professional development opportunities.

If your manager says no, ask for feedback on how to work toward a raise in the future and agree on a timeline to revisit the conversation.

Step-7

If a raise isn’t possible now, set the stage for future success. Collaborate with your manager to outline clear goals and metrics that will justify a raise down the line. Regularly update them on your progress to keep your contributions visible.

  • Pro Tip: Send a follow-up email after your discussion summarizing the feedback and agreed-upon steps.
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Business Education, Career Management, CEO

Be like SQ31!

Recently, a friend and his wife visited us from Coimbatore, a vibrant South Indian city celebrated for its post-summer drizzles, people with polite demeanor, renowned colleges, and thriving entrepreneurial culture. His wife, an accomplished obstetrician, is highly sought after for her exceptional skill and compassionate care for expecting mothers.

Curious about their travel plans, I casually asked her, “How are you heading back to India?”

“We’re flying Singapore Airlines,” she replied, “to avoid multiple transits.”

“Oh…SQ31?” I asked.

“Yes. You remember the flight number?” she said, pleasantly surprised.

“Yes, it lands at 6:30 PM in Singapore, just in time for me to meet friends for dinner,” I said with a smile, “SQ31 is my first choice too to visit Coimbatore.”

As the conversation shifted toward her profession, I couldn’t resist asking, “How many babies have you delivered so far?”

“About 10,000,” she replied, matter-of-factly.

“10,000? That’s incredible! How did you reach such a number?”

“I’ve been practicing for 25 years,” she said with a modest smile.

“And how many hysterectomies have you performed?” I asked.

“Not too many—around 6,000,” she answered calmly.

I was floored. “6,000 isn’t too many? No wonder so many mothers choose you!”

She simply smiled, her humility shining through.

“Will you ever retire?” I asked, curious about her future plans.

“As long as I’m productive, I won’t,” she replied, embodying the spirit of a consummate professional.

At that moment, her career path struck me as remarkably similar to SQ31’s steady flight path. Who would have thought I’d take a career lesson from a nonstop flight from SFO to SIN?

SQ31 spends about an hour climbing to its cruising altitude, maintains that level over the Pacific for 16 hours, and then descends into Singapore. Her career mirrored this pattern, steadily climbing during her training and sustaining a high, impactful level of productivity – consistent, disciplined, and reliable.

This flight path offers an invaluable lesson. If we work relentlessly during the early years to reach our Peak Productivity (PP), and sustain that level through discipline and effort over decades, long-term success becomes attainable.

But how do we emulate SQ31? First, you must deeply desire it—it must become a priority. Discipline and focus are essential. Successful people reach PP by committing fully to their goals. And just like SQ31 doesn’t simply coast at cruising altitude, burning fuel to stay steady, we too must continually learn and update our skills to maintain our peak.

Be like SQ31—consistent, enduring, and built for the long haul.

by admin
Business Education, Career Management, CEO, Entrepreneurship, Private Equity

Did Chegg get egged by AI?

“Video killed the radio star,” sang the Buggles in 1979. Fast forward to 2024, the British group formed in 1977 is still performing. Here’s a request for their next hit: how about “ChatGPT Killed Chegg”? After all, bassist Tom Horn foresaw this future, once predicting, “We had this idea that at some future point there’d be a record label that didn’t really have any artists—just a computer in the basement.” His prediction, it seems, was eerily accurate.

Chegg, once a dominant force in EdTech, revolutionized learning by offering affordable textbook rentals and subscription-based academic tools. Valued at over $12 billion during its peak, the company thrived during the pandemic, serving millions of students as remote learning surged. Yet, within just a few years, Chegg’s value plummeted by over 99%. The cause? The rapid rise of artificial intelligence.

Disruption by AI

The emergence of tools like OpenAI’s ChatGPT fundamentally changed how students sought academic help. Unlike Chegg’s subscription services, AI platforms offered instant, free solutions. By 2023, Chegg acknowledged losing subscribers, and by 2024, over half a million users had abandoned the platform. Although Chegg launched CheggMate, an AI-powered tool, it failed to compete with the widespread popularity of free alternatives.

Financial Struggles

Chegg’s financial performance deteriorated rapidly. In the third quarter of 2024, it reported a $212.6 million net loss and laid off 21% of its workforce. The company’s heavy reliance on a subscription-based model and slow adaptation to AI technologies left it vulnerable in a market transformed by innovation.

Lessons Learned

Chegg’s fall is a cautionary tale for businesses in tech-driven industries. It underscores the importance of anticipating disruption, diversifying revenue streams, and embracing innovation. Companies must stay agile and adapt quickly to new technologies or risk irrelevance.

The Path Forward

For Chegg to recover, it must focus on unique offerings, strategic partnerships, and rebuilding trust. Its future depends on its ability to innovate and redefine its role in education.

The story of Chegg is a stark reminder: in the age of rapid technological change, staying ahead isn’t optional—it’s essential.

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Business Education, Career Management, CEO, Entrepreneurship

Why do some CEOs hesitate to be entrepreneurial?

In a recent session in my CEO-2035 class, a student asked this question. Here’s how I answered it:

CEOs of established firms often hesitate to be entrepreneurial for several reasons:

  1. Risk Aversion: Established firms typically have significant resources, reputations, and shareholder expectations to consider. Entrepreneurial activities often involve high levels of uncertainty and risk, which could jeopardize the firm’s stability and profitability.
  2. Focus on Short-Term Performance: Publicly traded companies are often under pressure to deliver consistent, short-term results to satisfy shareholders and analysts. Entrepreneurial ventures can take time to generate returns, potentially affecting quarterly earnings and stock prices.
  3. Organizational Inertia: Large, established firms often have deeply ingrained processes, cultures, and structures that can be resistant to change. This inertia makes it difficult to pivot or take on new, innovative ventures that require flexibility and adaptability.
  4. Resource Allocation: Established firms often prioritize the allocation of resources to proven, profitable areas of their business. Investing in new, untested ideas may be seen as diverting resources away from these core areas, potentially diluting focus and performance.
  5. Complex Decision-Making Processes: In large organizations, decision-making tends to involve multiple layers of management and bureaucracy. This can slow down the ability to act quickly on new opportunities, which is often necessary in entrepreneurial ventures.
  6. Fear of Cannibalization: For companies with established product lines or services, there may be a fear that new, entrepreneurial products could cannibalize existing offerings, leading to internal competition and reduced profitability.
  7. Regulatory and Compliance Concerns: Established firms are often heavily regulated, and entrepreneurial ventures may involve navigating complex legal and regulatory environments. The potential for regulatory challenges can deter CEOs from pursuing innovative, but potentially risky, opportunities.
  8. Leadership Style and Experience: Many CEOs of established firms have built their careers on managing large organizations rather than on entrepreneurship. Their leadership style may be more suited to optimizing existing operations rather than fostering new, disruptive ideas.

These factors contribute to a more cautious approach, making CEOs of established firms less likely to engage in entrepreneurial activities compared to those leading smaller, more agile companies.

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Business Education, CEO, Personal Finance

How is this a positive for Tesla stock?

CNBC reported “Revenue declined from $23.33 billion a year earlier and from $25.17 billion in the fourth quarter. Net income dropped 55% to $1.13 billion, or 34 cents a share, from $2.51 billion, or 73 cents a share, a year ago.

The drop in sales was even steeper than the company’s last decline in 2020, which was due to disrupted production during the Covid-19 pandemic. Tesla’s automotive revenue declined 13% year over year to $17.38 billion in the first three months of 2024.

Capital expenditures rose to $2.77 billion, up 34% from a year earlier.

Free cash flow turned negative in the quarter, with the company reporting a deficit of $2.53 billion. A year ago, Tesla reported free cash flow of $441 million, a number that reached $2.06 billion in the fourth quarter.”

Despite such numbers, Tesla shares jumped 11% after Musk reported that he is planning to manufacture affordable models in 2025. Does this mean that the market is looking at the future rather than the past? Click the URL below to read the article in CNBC. Ram Subramaniam

https://www.cnbc.com/2024/04/23/tesla-tsla-earnings-q1-2024-.html

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Career Management, CEO

Envisioning the role of a CEO in 2035…

Envisioning the role of a CEO in 2035 requires understanding the trajectory of current trends in technology, societal expectations, global economics, and environmental concerns. The landscape of leadership is transforming, suggesting that CEOs will need to navigate a world vastly different from today’s. Here’s how the job of a CEO might look in 2035:

Mastery of Technology and Innovation

By 2035, technology will be even more deeply woven into the fabric of business. CEOs will need to be adept at leveraging emerging technologies such as artificial intelligence (AI), machine learning, blockchain, and quantum computing. Understanding how these technologies can be applied to enhance business operations, product offerings, and customer experiences will be crucial. The successful CEO will be one who can anticipate technological disruptions and position their company to benefit from them rather than be sidelined.

Champion of Sustainability and Social Responsibility

The increasing urgency of climate change and social inequality will make sustainability and social responsibility core components of every company’s strategy. CEOs will be expected to lead their companies in a way that not only generates profit but also contributes positively to the planet and society. This could involve initiatives to reduce carbon footprints, ethical supply chain management, and efforts to address social issues through business practices. Transparent reporting on environmental, social, and governance (ESG) criteria will likely be the norm, and CEOs will be at the forefront of these initiatives.

Architect of Agile and Resilient Organizations

The pace of change will only accelerate, making agility and resilience key attributes of successful organizations. CEOs in 2035 will need to foster a culture of innovation, where experimentation is encouraged and failure is seen as a stepping stone to success. Building teams that can quickly adapt to changing circumstances, pivot strategies when needed, and remain resilient in the face of challenges will be a critical responsibility of future CEOs.

Builder of Diverse and Inclusive Workplaces

Diversity and inclusion will be even more critical in 2035, as companies recognize the value of diverse perspectives in driving innovation and understanding global markets. CEOs will need to go beyond superficial measures to create genuinely inclusive cultures where everyone feels valued and empowered. This includes ensuring diversity at all levels of the organization, from the boardroom to entry-level positions, and actively working to eliminate bias and discrimination.

Visionary Leader and Ethical Steward

The CEO of 2035 will need to be a visionary, capable of looking beyond short-term gains to see the bigger picture of how their company fits into a rapidly changing world. Ethical leadership will be paramount, as stakeholders increasingly hold companies to high standards of integrity and transparency. CEOs will need to navigate complex ethical dilemmas, making decisions that balance the interests of various stakeholders while adhering to core values.

Conclusion

In summary, the CEO of 2035 will be much more than a business leader. They will be technology-savvy innovators, champions of sustainability and social responsibility, architects of agile and resilient organizations, builders of diverse and inclusive workplaces, and visionary leaders who operate with the highest ethical standards. The CEOs who can rise to these challenges will be well-positioned to lead their companies into a prosperous and sustainable future. Ram Subramaniam.

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Business Education, Career Management, CEO

Details of the ‘CEO-2035’ course

Course Title: Leadership for the Future: Grooming Business Students into Future CEOs

Course Description: This course is designed for business students who aspire to become future CEOs. The course focuses on developing leadership skills, strategic thinking, and a comprehensive understanding of the various aspects of business management required to acquire the CEO role and excel in it. Students will learn through a combination of lectures, case studies, discussions, group projects, and guest lectures from experienced CEOs and industry experts.

Course Objectives:

  1. Develop Leadership Skills: Students will learn essential leadership skills, including effective communication, decision-making, negotiation, and conflict resolution, to effectively lead teams and organizations.
  2. Foster Strategic Thinking: Students will learn how to think critically and strategically, analyze complex business situations, and make informed decisions to drive the long-term success of the organization.
  3. Understand Business Functions: Students will gain a comprehensive understanding of various business functions, including finance, marketing, operations, human resources, and corporate strategy, to develop a holistic approach to business management.
  4. Learn Corporate Governance: Students will learn about the principles of corporate governance, ethical decision-making, and responsible leadership, emphasizing the importance of ethical and socially responsible practices in the modern business landscape.
  5. Develop Global Perspective: Students will gain an understanding of the global business environment, including international markets, geopolitical risks, cultural differences, and emerging trends, to prepare them for leading in a globalized world.
  6. Enhance Communication and Interpersonal Skills: Students will develop effective communication and interpersonal skills, including public speaking, presentation, networking, and relationship-building, critical for success as a CEO.
  7. Learn from Industry Experts: Students will have the opportunity to learn from experienced CEOs and industry experts through guest lectures, case studies, and real-world examples, providing practical insights into the challenges and opportunities of leading organizations.
  8. Capstone Project: Students will apply the knowledge and skills gained throughout the course to develop a strategic business plan, which will serve as a capstone project, allowing them to integrate and demonstrate their learning in a practical business context.

Course Outline:

  1. Introduction to CEO Role
  2. Strategic Thinking and Decision-Making
  3. Business Functions and Holistic Management
  4. Corporate Governance and Ethics
  5. Global Business and Emerging Trends
  6. Communication and Interpersonal Skills for CEOs
  7. Leading High-Performing Teams
  8. Change Management and Innovation
  9. CEO as a Visionary and Transformational Leader
  10. Guest Lectures and Case Studies from CEOs
  11. Capstone Project: Developing a Strategic Business Plan

Assessment Methods:

  1. Class participation in discussions and group activities
  2. Case study analysis and presentations
  3. Individual and group projects
  4. Written assignments
  5. Guest lecture reflections
  6. Capstone project presentation and report

By the end of this course, students will have developed the knowledge, skills, and mindset required to excel in the role of a CEO, and be prepared to take on leadership positions in the business world with confidence and competence.

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Business Education, Career Management, CEO

Remermber my warning about SPAC? What are SPAC’s responsibilities in IPO?

Trevor Milton, the founder of Nikola, a EV manufacturer lied “nearly about all aspects of the business” acording to the U.S. Attorney’s Office in Manhattan. Did the SPAC that took Nikola public drop the ball and cause this debacle? Would the traditional vetting process have eliminated this quagmire? Prosecutors say, “To make it appear the truck prototype was driving, it was towed to the top of a hill and then rolled down to the bottom.” Click the images below and read on….


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CEO, Fintech, Options Trading, Private Equity

Can options trading influence valuation? Looks so, just as we discussed in PE class

Remember our discussion on how call and put volumes are used by some investors to measure sentiments? Investors who buy ‘out-of-the-money’ call options anticipate the underlying stock price to spike. Recenly Softbank bought $4B worth call options on its holdings AMZN and MSFT. Many investor interpret this move as a buy signal on these equities and this may have led to spike in prices. This ends up escalating the valuation of these companies even though the underlying business models don’t justify these levels of valuation. Click on the image below to read an interesting article on this topic.


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CEO, Private Equity

Negative oil prices? Anticipate Loan Calling and …….Name Calling!

Something bizarre happened on April 20th! Yes, some oil futures contracts went negative and it has never happened.
What does a negative oil price mean? Drillers have extracted oil from the ground and they are out of storage capacity. So they would pay wholesale buyers money to take the oil off their hands. Imagine that! We discussed negative interest rates in the class and I explained that it’s like charging you storage/safe-keeping for your money. This is a similar scenario. This can lead to another problem. In our PE and CEO 2030 classes we discussed how when the underlying price of the collateralized assets crash may lead lenders ‘calling the loans’. The Loan Calling is an industry jargon that describes a demand by the lender for loan repayment even though it’s not due. Those companies that used their oil in the ground as a collateral may be receiving Loan Calls since the collateral has lost value due to crash in oil prices. Click the following article and send me your views to my Stanford email ID.

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CEO, Entrepreneurship, Private Equity

Remember our discussion on Hostile Takeovers in the PE, CEO classes and on how countries are vulnerable?

The heading in one of my slides was ‘How to take over a country peacefully?’. My answer was ‘by taking over the vital companies in that country’. I hope you remember that discussion in the PE/CEO 2030 class. The COVID situation may make scuh scenarios a reality. India is addressing this issue. Please read on. As usual send your views to my Stanford email ID.

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CEO, Entrepreneurship

Remember our discussion on how important timing is for funding? Here is an invaluable example.

In our Entrepreneurship class, we discussed how long one can wait to obtain funding and the factors influencing the timing. In the following piece, a founder is discussing how his decision not to prioritize funding cost him heavily. Please read the part about what to and what not to outsource especially. Click on the image below. As usual please send your comments to my Stanford email ID.

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Career Management, CEO

Make hay when it rains! Companies that save cash for a rainy day can. Warren Buffett’s Berkshire Hathaway has the cash.

Remember in the CEO-2030 class I discussed how companies that save cash for a rainy day can make go bargain hunting? I also discussed why ‘resource allocation and deployment’ must be taught as an elective. Here is an example of how cash comes handy. Click on the URL below.

Warren Buffett’s Berkshire Hathaway has the cash to buy Tesla, Starbucks, or McDonald’s after the coronavirus sell-off

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Career Management, CEO, Private Equity

M & A galore in the horizon? PE funds have been hoarding cash and waiting for this moment!

Private Equity firms have more than 1$ Trillion in cash! This could be the beginning of a once in a lifetime investment opportunity for those in waiting. Remember the discussion in the CEO-2030 class how the 2007 financial crisis opened up opportunities for acquistions and thus a spike in demand for new CEOs? CNBC had an intetresting article on this topic. Please click the image below. Should companies take PE’s money or not? Do they even have an option? What if the PE firms go hostile? I’m interested in what you have to say on this.

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CEO, Private Equity

Our discussion on share buyback in the CEO-2030 and PE classes – Timely articles in Bloomberg and CNN

These articles in Bloomberg and CNN discuss how the airlines in the US spent their free cash flow to buy back their shares. It raises so many points we discussed in the class. But, did the money really disappear? Where did all the money go? CNN reports “The Big Four Airlines, according to Baldwin’s office, spent $42.5 billion on buybacks between 2014 and 2019. That nearly matches $50 billion the industry is now asking for”. What a coicidence! I Would like to hear from those who disagreed with me. Click on the images below.

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CEO

Silicon Valley Investors Call Summit to Disrupt IPO Business – Bloomberg

Wall street’s stronghold on IPO market is being questioned finally! I have been writing for years about how Wall street’s monopoly is not good for both the listing companies and investors. Looks like Wework’s IPO fiasco is waking up VC firms to consider alternatives.

“Powerful figures are gathering 2,500 miles from Wall Street to redesign one of its oldest and most lucrative businesses — but few from the industry will have a seat at the table. Attendees plan to discuss alternative strategies including direct listings, which replace financial underwriters with cutting-edge computer code.”

Read the Bloomberg article below.

Silicon Valley Investors Call Summit to Disrupt IPO Business

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