Deals On The Greens

The Business Of Golfing

Anindita Chattopadhyay looks at how golf has metamorphosed from being just a game to a business tool for Indian executives

Mr Khanna (name changed), a noted industrialist, casts a glance at his watch sipping a glass of fresh juice. He is waiting for his playing partners to arrive somewhat anxiously. Today's game with a certain chief minister has been pre-fixed by one of his regular partners at Khanna's request. Being a weekday there's not much crowd. As the minister arrives, the foursome straightway head to tee off. As they walk from fairway to bunker to sand trap, the discussion moves from swings to golf courses, Tiger Woods to Tag Heuer, finally veering to business. "I am planning to set up a telecom project in your state, Mr Minister," says Khanna. "That sounds interesting. How much do you plan to bring in," comes the reply. "We plan to invest around Rs 200 crore. The foreign partner is ready to bring in another Rs 150-Rs 170 crore," Khanna proffers. Out of the nine holes as they walk into the refreshment area, the minister is all ears. Rs 400 crore investment walking in uninvited doesn't happen everyday. The minister agrees to pull the strings. Asks certain hard-nut-to-crack secretary to meet Khanna and get things moving. "We will also look after your interests, sir. Just mention the amount," Khanna smiles. Yes, the deal has been struck. A much-relieved Khanna passes on the glass of champagne to his benefactor.

All this may sound fictional, but it is a fact. Ask any golfer and he will fill you with such stories. It's true that golfers do not exactly sign contracts on the ninth hole or close deals on the greens, but they do exchange business ideas and establish personal relationships there. Many use golf outings to scout for potential business. As Donald Trump in an interview said, "I'm not a cell-phone guy, but, yes, I do business on the course." An attitudinal study by Hyatt Hotels & Resorts titled ‘Golf and the Business Executive’ reveals these facts:

• Ninety-three per cent of the respondents agreed that golfing with a business associate is a good way to establish a closer relationship.
• Eighty per cent said they find golfing a good way to make new business contacts.
• Thirty-five per cent agreed that some of their biggest business deals were made on the golf course.

In fact, it won't be wrong to say golf and business go hand in hand like honeymoon and champagne, strawberry and cream, celebrity and paparazzi. It has been the preferred sport of corporate America for more than a century. Corporate honchos always had a special fascination for the sport. According to John Rockfeller's biographer, golf was his life. Today, Scott McNealy, CEO of Sun Microsystems or Bill Gates of Microsoft are equally smitten by the golf bug. And now, India is witnessing an upsurge in golfing activities. It is not that golfing was not there in India earlier. After all, the 175-year old Royal Calcutta Golf Club is the oldest golf club outside England. However, the game was mainly the domain of retired army officers, top industrialists and bureaucrats. The average age of golfers was above 50. But things are changing. The last few years have seen corporate executives taking to the game in a big way. Boardroom biggies like Shell chairman, Vikram Mehta; Pepsi CEO, Rajeev Bakshi; Adidas India MD, Tarun Kunzru; Jindal Steel CEO, Rattan Jindal are now common faces at most golf events. "As the decision maker in the corporate world is getting younger, golf, too, is getting younger by the day," says Karun Budhraja, DGM marketing and communication, Amadeus - the sponsor of the TAAI Golf Tournament.

The influx of MNCs bringing with them a whiff of western lifestyle has fueled the interest. The elite image of the sport has been incentive enough for powerbrokers and decision makers to lap it up. And the lifestyle sponsors are doing the necessary fanning. The rich and successful now eat, sleep and drink cricket, but play golf. The fat cats all done up in Gucci glasses, signature Tag Heuer watches (you can buy Tiger Woods watch when you can't buy his swing), hi-style Nike shoes, go putting, carrying their lifestyle on the sleeves. Well, even our Kapil paaji now wields the club. "We have seen an increase of 25 per cent in our subscription in the last couple of years. In major cities, especially in the National Capital Territory (NCT) region, there has been an increase in middle level management taking up golf," says Anil Dev of Golfline magazine. No wonder, the NCT region has seen quite a few private and public courses coming up in the last five years such as Jaypee Greens in Greater Noida, DLF Golf Course in Gurgaon, Qutub Golf Course in Lado Sarai. Delhi Development Authority is coming up with a golf course in Bhalswa lake by the end of this year and the Ghaziabad Development Authority will add one by 2006. Dev's view finds support from Nawabzada Omer Bin Jung, managing director, Prestige Leisure Resorts, Bangalore, who says, “The trend is growing in Bangalore too and I feel the growth has been huge with the corporate aura spreading in the city at a fast pace.”

What is it that attracts corporates to golf? Everybody cannot play tennis or squash because you will have to be physically fit. And that goes in golf's favour. "It is a leisurely game where you need not be an athlete. Just be proficient in negotiating shots, while the long walk gives you enough exercise and time to socialise," reasons Rajji Rai, MD, Swift Travels. Shekhar Dasgupta, MD, Oracle explains the attraction simply, "It is the nature of the game. Here you are challenging your own ability and it is very satisfying once you win the challenge. Further, you develop a kind of camaraderie on the golf course. The long hours spent together on the greens actually bring people closer as you get to know a person in a different environment."

Concedes Vishal Chandapurkar, general manager - marketing, Albine Ventures, Bangalore, "Probably more than any other sport, the game of golf requires self-discipline, determination, patience, calculation, resoluteness and networking ability - qualities that help to build character, personal strength and widen business horizons. I have had a couple of occasions wherein I learnt the tact to be implemented on closing a deal through my interactions with business veterans in between shots. You tend to learn a lot with those interactions particularly because it is a slow game and chatting often revolves around business, other than family or casual talks. I know of people who do the basic groundwork for a business setup or a tie-up, on the course. You hit, you walk, you putt and your business flourishes - that is golfing."

Power Ties

Corporate executives have realized that no other sport helps in developing lasting professional relationships like golf does. "It is all about bonding," says Major DN Dass, an avid golfer and organizer of corporate golf tournaments. "If you are sizing up an 18-foot putt and your partner is trying to negotiate an unplayable lie, you become comrades in pursuit of a common goal. Later, when it's time to discuss business, you have developed a closer bonding." Dass speaks from experience. In this age of globalisation, when knowledge of a country's culture, understanding of the local market and overcoming the language barrier become crucial factors in transacting a business deal, he has seen golf breaking all barriers making understanding easier. "Two golfers will hit off immediately. I once went to Japan for business development as an employee of TCI. Our local representative in Tokyo took me to meet the owner of a large travel company, a rich man with many business interests. The plush office looked like a golfer's den complete with memorabilia, pictures and a small putting patch. During our introduction, the local rep mentioned that I play golf. The first question the gentleman asked was ‘What's your handicap?’ And after that for 20 minutes it was only golf. At last when we talked shop it was like friends discussing business," says he.

Deepak Culas, corporate sales, Hutch, Bangalore agrees, "Once a golfer, always a golfer. In my previous company, we had bagged a deal using the sport as a tool when we got a client who was an avid golfer. We invited him to the greens and converted a business deal involving fashion shipments. And after that we became friends. Such is the nature of the sport."

Even hardcore business competitors off the track would play together without any hint of rivalry. CEOs of competitor companies may be strategising inside closed doors to outsmart the other in grabbing the market share, but they count strokes and points as buddies on the greens. "The Japanese and Korean expats are a close-knit group. I have always seen them playing and socialising amongst themselves at Delhi Golf Club," says Dass.

It is this differentiating factor - the scope to network and build relationship - which is boosting the game's popularity. Which other sporting activity can give you more than four hours to share thoughts, assess your playing partner and even click deals in a soothing, serene relaxed environment? When networking is the rule of the business-game, it is little wonder that corporate heavyweights drool over the game. Golf resorts are becoming venues for anything from entertaining important clients, launching new products or services, rewarding top achievers, to hosting annual staff parties and organising team-building exercises. If there is a conference where people have come from across the country or region, companies usually organise a day-long golf event the day before. It helps in breaking the ice as informal interaction and networking takes place. "Oracle along with Sun and Cisco had organised a talk by Sumantra Ghosal. The event was preceded by a golf event to give the organisers and their peers a chance to network," says Dasgupta.

Earlier only liquor and tobacco companies stepped in as sponsors for surrogate advertising. You could count golfing events on your finger tips like the Wills Golf, Charminar Challenge, Royal Challenge and a few others. Today, more and more companies are coming forward as sponsors to get associated with the elite lifestyle image for their brand building. Even hotels like Hyatt Regency and airlines like Malaysian are pitching in as co sponsors. Budhraja explains the phenomenon, "Being associated with golf gives a brand value. Amadeus, which is a leader in its own field, wanted to be associated with a game that is played by leaders. Further, it has a top-of-the-mind recall value. Whenever the clients will talk of the game they will mention Amadeus. Something like ‘At the Amadeus Golf I hit two birdies’. But most importantly, since golf is an expensive game the audience is the senior management. So, you utilise the event to network and rebuild relationships." Certainly, high profile FMCG and technology companies are seeing more value in organising golfing tournaments for clients - which would culminate in a gala entertainment evening with dinner, floor shows and prize distribution - because there is ample time to build or renew relationships and discuss key matters that can benefit both the company and its business partners. Often a professional golfer who has an endorsement contract with a major corporation is invited to spend time with the company's executives, its customers or a celebrity gathering - playing a hole with every foursome, offering tips on swing, speaking at dinner, signing autographs and clicking photographs. According to Dass, who has organised such events for tourism boards, airlines and FMCG companies, the number of tournaments on a course have gone up from three a year to a dozen or so per year.

Dreams Unlimited

Naturally, the middle-level eager beavers, dreaming of living life CEO-size, are getting sucked in. After all, golf gives a chance to rub shoulders with the high and mighty. Who knows, what doors would open. A chancy fourball can get that kick up the social ladder. "Yes things happen that way. I know a middle level executive who often tagged along with friends to Delhi Golf Club. In fact, he learnt the game to network and move up. He hit off with an MNC boss who was much impressed by his smooth talk. Now, he has a plump post in a Japanese MNC," said a corporate executive on conditions of anonymity. But when one is playing golf in a business setting or with ulterior motives one had better be thorough with the etiquette and be careful how he acts. Another key to success is engaging your playing partners but avoiding the hard sell. Rai, an experienced business golfer, explains the trick of the trade. "The key is to make your partners feel comfortable and make the game enjoyable. They should long to have another game with you soon. One should just focus on the personal side and try to know the person's preferences. Then you can utilise the friendship and talk shop later," he says. Next time you have to seal a deal, forget a champagne lunch or a ball room dinner. Dump your three-piece and settle for the shorts and tees. If you still have not picked up the club, hurry. There are ample golf courses offering pay and play option. Just take lessons and get going.

(Within puts from Vyas Sivanand, Banglore and Laxmi Subramanian, Chennai)