Sunday, 28 February 2016

BAAN Culture - A Thriving Legacy

A company culture is often mentioned as an outcome of its business success .  The greater  the success  in terms of revenues and profits the higher is the tendency to  elevate its company culture.  Can the company culture survive the scrutiny of business success?  Can it outlive the original organisation and still exist in the minds and hearts of the people it nurtured.  Can it be carried to other organisations and still be talked about with pride? Can it make an impact on an individual outside work? Can it rally around and self-organise itself into a network?  

It does at times and that is when you feel like penning a testimonial, here is mine.

Picture this!  A small town in Netherlands having a software company with about 300 employees doing all its business locally.  One can imagine its founder thinking about expansion and seeking talent and innovation primarily in Europe or   in North America, surely not India and that too in the mid 80’s. Not many people had India on their map back then for software development. Yet the founder of Baan Company Mr Jan Baan thought differently, visited India in 1986 and could clearly sense its potential in software development.  

Quick to act, a short time later he deputed his dynamic VP of Business Development (Mr Kees Westerhuis) to visit India and forge partnerships for software development with emerging outsourcing firms. I am talking of 1987.  A new chapter began then in India’s young history of software outsourcing, this time not written by a big firm with lots of cash but a small yet visionary company from Netherlands called Baan, led by its founder and CEO Mr Jan Baan.  What others waited for to see clearly he could sense and wanted to seek and nurture.

My stars were perhaps in the right place. I got the opportunity along with a few colleagues to work in this initial phase of East meeting West for   software product development. This was when I got to meet many of my Dutch colleagues and also make many trips to Netherlands.  I got to experience the cultural amalgamation at close quarters.  Remember India was still not famous for its software industry back then and   only a few   Western companies were active in India. The challenge was even more as India had still not opened up its   economy. Risks were high, challenges many.

Working closely with Indian outsourcing firms the Dutch company began to see more strategic possibilities in India and took the plunge to set up its own subsidiary in 1989 in Mumbai.  

Making it work in terms of delivery was big challenge for all of us but I could feel the persevering   and stewardship leadership from the top to make it happen.   There was a strong belief in the long term potential of Indian software engineers.  This was   backed with the investments required to make people on both sides understand what it takes to overcome barriers of language, culture and expectations.  The wisdom of patience and acceptance of cultural differences was emphasised in tough times.    This laid the strong foundation for a deep understanding between India and Netherlands in the organisation and was led from the front by the CEO  Mr Jan Baan and supported more than ably by his trusted colleagues on both sides.

A deeper understanding of people and culture led to an increase in the scope and scale of the Indian subsidiary in Mumbai.  We set up a CoE and were able to provide top notch ERP consultants to serve the increasing demands of our global partners and customers   .  Soon we set up core product development and support functions in Mumbai.  Early 90’s we were one of the few companies which   could use its Indian subsidiary not as a cost centre but more as a strategic force multiplier for its global business. 

Working closely with my Dutch colleagues, was a unique experience. I noticed their deep passion for technology and products. They went deep into their respective areas and always talked about generic problems and solutions.  There was an important focus on modelling and architecture. Instead of bespoke solutions we had products that were able to meet diverse needs.  Releasing products to the market was a   critical process where we had to get so many things right and this was a great learning for all of us in India. Dutch colleagues who barely spoke English were open to share knowledge and coach their Indian counterparts, some of them often carrying their Dutch to English dictionaries with them.  This phase was crucial for there was a big gap then in understanding how to develop and implement   technology based products. Our Indian colleagues stepped up to this challenge and soon they took ownership of   several products.  The strategic intent of this venture was now being achieved in the early 90’s.

Our ERP products became very popular globally. Growth led to more demands on scaling the India operations. By mid-90’s we needed a new location to expand. The pioneering and risk taking culture of the company stood out once again when we decided on Hyderabad as our growth location. This was unusual at that time, for Bangalore was the obvious choice for many.  This was a bold decision. One that was taken because of a deep understanding of India. Taken by the senior leadership team of the company who travelled frequently to India and some who even relocated here for longer durations.  India by then was not anymore only a land of elephants and snake charmers and was seen as an emerging economy with its vast pool of talent and enterprise.

The government of Andhra Pradesh recognised this bold decision of the Baan Company and not only extended their full support but also based their marketing efforts on the famous words of Mr Jan Baan i.e. “I have bet my future on Hyderabad”.   We got off to a good start in 1995. Soon we had over 800 developers developing, maintaining and support old and new products, we had a global institute for training partners and employees on a massive scale.  We soon became one of the most sought after employers in this region and were able to attract a lot of talent to the company.  This was the original vision which now became a reality.

To support   this growth we needed larger office facilities.  A brief chat between me and my boss (Marcel Verhoeve - VP R&D) in Netherlands led to some very efficient straight through communication and soon this was discussed   with the EVP of R&D (Mr Laurens v.d Tang) and CEO. I did not expect such a quick response and was even more surprised to find that the CEO and the President were flying down to Hyderabad to discuss and decide.  The decision was quickly taken in late 1997 to have a campus in Hyderabad with significant investments.  This then was one of the largest private company investments in the city.   The speed of decision making really galvanised us in India to make it happen and the trust and support we received in the process of setting up the campus was perhaps the main reason we could do so quickly. By late 1999 the first phase of the campus called Vanenburg IT Park, was ready and occupied.  The management style here was   delegation and decentralisation.


Soon the Vanenburg IT Park in Hyderabad became one of the well-known landmarks in the Hyderabad IT industry.  When I look back at this, it was a great combined effort from our senior management in Netherlands and the India team, one that needed apart from competence a lot of understanding, trust, risk taking and vision.  Subsequently a lot of companies followed suit and we were the reference check for many of them.

Business subsequently hit turbulence. This was again a true test of the character and commitment of the company towards people. Downsizing happened in the most humane way and the process set us apart. The company helped the employees who were let go find jobs with other partners and in the process created a stronger bond with them. Many of them subsequently applied and joined back, remembering how they were treated during the process. Baan as a company was sold and another avatar of this culture was formed. Initially called Vanenburg this was later renamed to Cordys   headed by its founder and CEO Mr Jan Baan. A new business started and true to its product pedigree Cordys once again gained global attention as one of the leading BPMS and PAAS product vendor. It was another example of how a good company culture can create good products.

A lot more can be said about this journey, but when I put it all together  it was a great combination of  talented people in technology and product development working as one team,  envisioning  the future  , designing  innovative products and above all  forging  a bridge of deep trust and understanding  across the company . A lot could be achieved due to this, and a sum of these experiences at work can be termed as our company culture.

These experiences have changed me and made me look at people, business and products in a different way.  It has made me realise that it is the process that matters, success or failure is incidental.   I have learnt the importance of being able to spend time with people and try to understand them better. It’s important to create a culture of being open and transparent, one of integrity, innovation and initiative.  Good products will follow, the ones created by our team are still being used by several thousand companies worldwide and ex-colleagues with fond memories scattered all over the globe that still stay in touch.   The network is still strong and reflects the shared values in each of us. This is the legacy of the culture that was built and I can say this culture has survived the organisation that created it.

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