Press Coverage

J. Desai’s consulting business, Universal Consulting, targets small firm

By dreaming small, Jay Desai has chosen a contrarian route to counsel the kingdom of the entrepreneur. Their dream vehicle, Universal Consulting (Universal), provides management consultancy services to small enterprises with a turnover of less than Rs. 50 crore. And Universal is fast becoming a part of the very club that it services. In 1997-98, four years after it was incorporated, the start-up notched up an income of Rs 67 lakh. The small firm is the first to be affected, and the last to recover, from a recession. Firms like Universal help them cope with competition and recession.

FACT FILE
Names: Jay Desai
Ages: 34
Education: B.Sc.,
St Xavier's college, Mumbai, 1984;
Masters in Management,
Atkinson Graduate School of Management, Oregon (US), 1989

Experience: Consultant, Accenture (formerly Andersen Consulting),
Mumbai 1989-94; Chief Executive, Universal,1994
Initial Investment: Rs 5 lakh
Track Record: Income grew from Rs 8 lakh in 1994-95 to Rs 67 lakh in 1997-98
No. of employees: 16
Management Philosophy: Build an enduring institution through people
Hobbies:  Indian classical music

Ironically, Universal was born in the Mumbai office of Accenture in 1993, where Desai was working on a project for a small-scale garment exporting unit. With a turnover of less than Rs 5 crore, it was Accenture (Formerly Andersen Consulting) smallest client. Desai is methodical, structured, and good at people management. It took three years of studying molecular biology at Purdue University in the US for him to realise that he could "work better with people than with molecules." Desai had no hesitation in switching to management, which he completed from Atkinson Graduate School of Management, Oregon (US).

There is a large body of small- and medium-scale entrepreneurs in the Indian corporate sector who can- not afford the high fees charged by the large consultancy firms, but are eager to access outside help to improve their operations.

Desai put in his papers at Accenture in March, 1994.Says Desai, "I  wanted to build an institution that could, by providing business solutions to clients, give me a sense of accomplishment in the long haul." So, in April, 1994, with an initial investment of Rs 5 lakh mobilised from friends, Universal was in business. Armed with the management consultant’s tools of the trade – two new laptops and a proprietary model – they set about defining Universal’s agenda.

They were keen to capitalise on the limitations of large consultancy firms. For one, larger firms are expensive, and they usually do not get into solution implementation. Moreover, the hierarchies in large consultancies, coupled with their prediection lection for jargon, make small clients uncomfortable. Says Mukul Gupta, 34, associate director, KPMG-Peat Marwick (1997 income: $9 billion): "Small consultancy firms often have a greater ability to provide customised products and services tailored to the client’s specific local needs."

However, Universal had to differentiate itself in a highly-fragmented industry with thousands of one-man shrink shops. In the course of an informal survey, Desai realised that most of them did not have the support of an organisation. Moreover, they were manned by functional specialists who would take up any assignment that came their way. In short, few of them offered a range of services spanning the entire gamut of the company's operations. So, Universal decided to serve a full-course consultancy, from strategic planning to operations management, from designing organisational structures to setting up performance evaluation systems to devising infotech strategies.

Universal sought to work full-time at the client's site. It would also refrain from suggesting ideas where implementation was doubtful, and enlist a couple of the best employees of the client as part of the core team. Steadily, business flowed in. In 1995-96, the income income shot up to Rs 30 lakh from Rs 8 lakh the previous year. Universal is likely to close 1997-98 with a billing of Rs 67 lakh, and it expects to touch Rs 1 crore the next year, Says Desai: "what helped was that Universal went in for smaller clients where we could focus on general management services covering the entire gamut of their activities."

So, if Universal implemented groupware technology at the Rs 4 crore personnel Search Services, it also defined the business strategy of the Rs 1 crore Sampark Advertising, as well as set up a performance evaluation system at the Rs 8 crore Suzarila, a Mumbai based garment exporter. However, Universal's pitch to sell management consultancy as a concept was made tougher by the fact that many prospective clients were not aware of basic management concepts.

This often translated into a low-intensity battle against cynicism in the client’s company. As Universal’s business depended on referrals from existing clients, Desai had to usually sandpaper many of their more radical proposals.

For instance, in 1997, the Rs 1.50 crore Premium Power Software hired Universal for an organisational review. Explains Ananth Nayak, 39 director, Premium Power Software: "We were doing well as a software development firm but my partner and I were so caught up in routine that we had no time to step aside. Universal suggested that we go for the Strategic Business Unit concept to get a grip on business. Accordingly, we moved into new areas like electronic publishing. It helps."

Another instance: In 1995, Universal introduced a strategic planning system at the Rs 50crore KFA Corporation. Says Gautam P. Khandewal, 35, CEO, KFA Corporation: "They seamlessly merged into our company as if they were always a part of it. With a methodology highly-focused on implementation, Universal made a lasting difference to our company’s operations."

With 14 consultants in its 16 strong staff today, Universal is aware that man- power is the most important factor in the consultancy business. Universal’s strategy hire people for attitude, train them for skills. "We hire very carefully," explains Desai. "For example, every existing employee interviews a potential candidate. Even if one says no, we do not hire him." Moreover, as a policy, Universal does not seek qualified management graduates. "Most learning takes place on the job," says consultant Ryan Albuquerque, 26, a graduate in English, who joined Universal in 1995.

Universal's growth will be supply-led-and not demand-driven. For that to happen, a continuous learning environment is crucial for a firm that is as good as (the people) it gets.