The Supreme Court has limited power when it comes to punishing erring Ministers. In the event of a damage done through a malafide or otherwise ministerial action, the best Supreme Court can come up with is a stricture 'the concerned minister did not APPLY HIS MIND while taking the decision'. Though the current day ministers do not care a fig for such strictures, this is considered to be a severe indictment as it denotes unprofessionalism.
In 1997, I changed the location of my NIIT Training Institute to a more spacious building nearby with a large courtyard. The previous building barely had space to park one car. This one had a compound with lot of mango, neem trees, enough space to have a garden, an open air canteen, and parking space for nearly 10-15 cars. Being a great believer of keeping the premises spotless, I had to grapple with the problem as to how to keep the courtyard clean of falling leaves. This called for someone to sweep the huge courtyard everyday. The maid in my house, Mary, used to do the cleaning at the Institute. She was a wisp of a girl, illeterate and it was cruel to ask her to do this backbreaking job of cleaning the courtyard. For a month I was fretting and fuming, tried 3 other labourers, who came, had one look at the size of the courtyard and vanished. I was prepared to pay even Rs 500 (a princely sum those days). I had also requested my energetic, educated team to find me a solution but to no avail.
Mary normally goes to the Institute in the morning, finishes her cleaning job and comes to my house by 8 am. One day, I was having coffee reading the morning paper when I overheard her telling in the Kitchen that ' there is solution to Sirs problem. why dont we ask Lakshmiamma to do this job?'.
Now who is Lakshmiamma? She was a cantenkorous old woman who comes everyday to clean our toilets at the Institute. Half the time she was drunk but I had a soft corner for her as I had always felt that she was doing a job which no human being should be doing. Normally no one talks to her as she used filthy language and didn't give a damn come what may, but I always made it a point to speak a few kind words everytime I met her and she in turn had lot of respect for me.
I questioned Mary as to why she thought that Lakshmiamma was suitable to do this job. She said "Sir, her main job is to clean the streets and her beat starts from one kilometer before our Institute. She cleans the street using a peculiar kind of broom which has a fan like broom attached to a long stick that facilitates her to clean the streets without bending her back. I have been watching her come to our place, place this broom on the wall, get inside and clean the toilets and then continue with her work. For her, who cleans 4 kms of road everyday, this job of cleaning the courtyard with her special broom is childs play. And more important, you dont have to pay her Rs 500. All you have to do is pay her Rs 100 (Mary in fact didn't know the difference between Rs 500 and Rs 100. All she knew was that 500 was a much bigger sum than 100)"
I was stunned at her application of mind and the simplicity of the solution to a problem that has been begging for a solution for a month. I called up the Institute, asked Lakshmiamma to wait, put on a shirt, went there and asked her whether she can do this. She gladly agreed and told me that I can give her whatever I like as compensation.
The problem was solved because Mary got involved without me ever asking her, took ownership of the problem and strived hard to find a solution for the betterment of the Organization of which she was a part of. This is what is meant by Application of the Mind and a very very essential quality for any aspiring managers.
Whenever you are confronted with a problem or even otherwise, give it all you can, get involved and try to come up with innovative solutions. In short, Apply your Mind.
Thursday, 31 January 2008
Wednesday, 30 January 2008
A Classic Case of Moral Dilemma
A group of children were playing near two railway tracks, one still in use while the other abandoned. Only one child played on the disused track, the rest on the operational track.
One train is coming, and you are just beside the 'track interchange'. You can make the train change its course towards the abandoned track and save most of the kids. However, that would also mean the lone child playing by the disused track would be sacrificed. Or would you rather let the train go its way?
Please post your decision with justifications in the comments section................
One train is coming, and you are just beside the 'track interchange'. You can make the train change its course towards the abandoned track and save most of the kids. However, that would also mean the lone child playing by the disused track would be sacrificed. Or would you rather let the train go its way?
Please post your decision with justifications in the comments section................
Tuesday, 29 January 2008
Need for a theory of inspiration
It has been presumed for many years that satisfying lower order needs of workers - adequate food, clothing and shelter, etc. are key factors in motivation. However, it is a common experience that the dissatisfaction of the Clerical employee and of a Top Manager is identical, though their scales and composition vary. It should be true that once the lower-order needs are more than satisfied, the Top Manager should have little problem in optimising his contribution to the organisation and society. But more often than not, it does not happen like that. On the contrary, a lowly paid schoolteacher, or a self-employed artisan, may well demonstrate higher levels of self-actualisation despite poorer satisfaction of their lower-order needs. How can this be explained?
'Self-transcendence' propounded in the Bhagawat Gita tries to address this dichotomy. Self-transcendence involves renouncing egoism, putting others before oneself, emphasising team work, dignity, co-operation, harmony and trust and, indeed potentially sacrificing lower needs for higher goals, the opposite of what was propounded by Abraham Maslow.
“Work must be done with detachment.” It is the ego that spoils work and the ego is the centrepiece of most theories of motivation. What we need is not merely a theory of motivation but a theory of inspiration.
Gurudev Rabindranath Tagore says that working for love is freedom in action. A concept which is described as “disinterested work"in the Gita where Sri Krishna says, “He who shares the wealth generated only after serving the people, through work done as a sacrifice for them, is freed from all sins. On the contrary those who earn wealth only for themselves, eat sins that lead to frustration and failure.”
Disinterested work finds expression in devotion, surrender and equipoise. The former two are psychological while the third is determination to keep the mind free of the materialistic pulls of daily experiences. Detached involvement in work is the key to mental equanimity. This attitude leads to a stage where the worker begins to feel the presence of the ultimate intelligence guiding the embodied individual intelligence. Such de-personified intelligence is best suited for those who sincerely believe in the supremacy of organisational goals as compared to narrow personal success and achievement - courtesy various sources on Bhagawat Gita
'Self-transcendence' propounded in the Bhagawat Gita tries to address this dichotomy. Self-transcendence involves renouncing egoism, putting others before oneself, emphasising team work, dignity, co-operation, harmony and trust and, indeed potentially sacrificing lower needs for higher goals, the opposite of what was propounded by Abraham Maslow.
“Work must be done with detachment.” It is the ego that spoils work and the ego is the centrepiece of most theories of motivation. What we need is not merely a theory of motivation but a theory of inspiration.
Gurudev Rabindranath Tagore says that working for love is freedom in action. A concept which is described as “disinterested work"in the Gita where Sri Krishna says, “He who shares the wealth generated only after serving the people, through work done as a sacrifice for them, is freed from all sins. On the contrary those who earn wealth only for themselves, eat sins that lead to frustration and failure.”
Disinterested work finds expression in devotion, surrender and equipoise. The former two are psychological while the third is determination to keep the mind free of the materialistic pulls of daily experiences. Detached involvement in work is the key to mental equanimity. This attitude leads to a stage where the worker begins to feel the presence of the ultimate intelligence guiding the embodied individual intelligence. Such de-personified intelligence is best suited for those who sincerely believe in the supremacy of organisational goals as compared to narrow personal success and achievement - courtesy various sources on Bhagawat Gita
Monday, 28 January 2008
Define your role
I was with a Saudi Businessman who had come on an official visit the other day. While we were waiting for a meeting to start, he turned and asked me "Rajan, what is the nature of your work?". When I replied that I was a Consultant and an Analyst and my work called on me to write analytical reports that supports decision making, he quipped "You know you are blessed. Through your words and thought, you can influence the thinking of the decision makers".
I had never looked at my job from that angle. I suddenly remembered the famous article by Theodore Levitt in Harvard Business Review titled "Marketing Myopia" in which he calls for organizations to define the business they are in (you can read the landmark article here http://www.carreirasolo.org/archives/arquivos/MarketingMyopia.pdf).
Extending that philosophy, all of us need to clearly define our role at the workplace. My job is not consulting but I am into the business of influencing people to make the right decisions. It suddenly widens the scope. I have another role on the side - that of a teacher. Somehow, I have always been clear of my role here. It was not merely transferring knowledge, but rather be a friend, philosopher and guide to my students.
Why don't you try and define your role and see what you can come up with? I am sure, it will be quite interesting
I had never looked at my job from that angle. I suddenly remembered the famous article by Theodore Levitt in Harvard Business Review titled "Marketing Myopia" in which he calls for organizations to define the business they are in (you can read the landmark article here http://www.carreirasolo.org/archives/arquivos/MarketingMyopia.pdf).
Extending that philosophy, all of us need to clearly define our role at the workplace. My job is not consulting but I am into the business of influencing people to make the right decisions. It suddenly widens the scope. I have another role on the side - that of a teacher. Somehow, I have always been clear of my role here. It was not merely transferring knowledge, but rather be a friend, philosopher and guide to my students.
Why don't you try and define your role and see what you can come up with? I am sure, it will be quite interesting
Sunday, 27 January 2008
There are many correct ways to answer a test question
An amazing approach to a routine question!
R.L. Loeffelbein, a physics teacher at Washington University in St. Louis was about to give a student a zero for the student's answer to an examination problem. The student claimed he should receive a perfect score, if the system were not so set up against the student. Instructor and student agreed to submit to an impartial arbiter, Dr. Alexander Calandra, who tells the story.
The examination problem was: "Show how it is possible to determine the height of a tall building with the aid of a barometer."
The student's answer was, "Take the barometer to the top of the building, attach a long rope to it, and lower the barometer to the ground. Then, bring it back up, measuring the length of the rope and barometer. The lengths of the two together is the height of the building."
I, as arbiter, pointed out that the student really had a strong case for full credit since he had answered the problem completely and correctly. On the other hand, of course, full credit would contribute to a high grade for the student in his physics course, and a high grade is supposed to certify that the student knows some physics, a fact that his answer had not confirmed. So it was suggested that the student have another try at answering the problem.
He was given six minutes to answer it, with the warning this time that the answer should indicate some knowledge of physics. At the end of five minutes, he had not written anything. Asked if he wished to give up, he said no, that he had several answers and he was just trying to think which would be the best.
In the next minute he dashed off this answer. "Take the barometer to the top of the building. Lean over the edge of the roof, drop the barometer, timing its fall with a stopwatch. Then, using the formula S=½at2, calculate the height of the building.
At this point, I asked my colleague if he gave up and he conceded. The student got nearly full credit.
Recalling that the student had said he had other answers, I asked him what they were.
"Well," he said, "you could take the barometer out on a sunny day and measure the height of the barometer, the length of its shadow, and length of the building's shadow, then use simple proportion to determine the height of the building. And there is a very basic measurement method you might like. You take the barometer and begin to walk up the stairs. As you climb, you mark off lengths of the barometer along the wall. You then count the number of marks to get the height of the building in barometer units.
"Of course, if you want a more sophisticated method, you can tie the barometer to the end of a string, swing it as a pendulum, and determine the value of 'g.' The height of the building can, in principle, be calculated from this.
"And," he concluded, "if you don't limit me to physics solutions, you can take the barometer to the basement and knock on the superintendent's door. When he answers, you say, 'Mr. Superintendent, I have here a fine barometer. If you will tell me the height of this building, I will give you this barometer.''
Finally, he admitted that he even knew the correct textbook answer -- measuring the air pressure at the bottom and top of the building and applying the appropriate formula (p=p0e-ay) illustrating that pressure reduces as height increases -- but that he was so fed up with college instructors trying to teach him how to think instead of showing the structure of the subject matter, that he had decided to rebel.
For my part, I seriously considered changing my grade to unequivocal full credit.
R.L. Loeffelbein, a physics teacher at Washington University in St. Louis was about to give a student a zero for the student's answer to an examination problem. The student claimed he should receive a perfect score, if the system were not so set up against the student. Instructor and student agreed to submit to an impartial arbiter, Dr. Alexander Calandra, who tells the story.
The examination problem was: "Show how it is possible to determine the height of a tall building with the aid of a barometer."
The student's answer was, "Take the barometer to the top of the building, attach a long rope to it, and lower the barometer to the ground. Then, bring it back up, measuring the length of the rope and barometer. The lengths of the two together is the height of the building."
I, as arbiter, pointed out that the student really had a strong case for full credit since he had answered the problem completely and correctly. On the other hand, of course, full credit would contribute to a high grade for the student in his physics course, and a high grade is supposed to certify that the student knows some physics, a fact that his answer had not confirmed. So it was suggested that the student have another try at answering the problem.
He was given six minutes to answer it, with the warning this time that the answer should indicate some knowledge of physics. At the end of five minutes, he had not written anything. Asked if he wished to give up, he said no, that he had several answers and he was just trying to think which would be the best.
In the next minute he dashed off this answer. "Take the barometer to the top of the building. Lean over the edge of the roof, drop the barometer, timing its fall with a stopwatch. Then, using the formula S=½at2, calculate the height of the building.
At this point, I asked my colleague if he gave up and he conceded. The student got nearly full credit.
Recalling that the student had said he had other answers, I asked him what they were.
"Well," he said, "you could take the barometer out on a sunny day and measure the height of the barometer, the length of its shadow, and length of the building's shadow, then use simple proportion to determine the height of the building. And there is a very basic measurement method you might like. You take the barometer and begin to walk up the stairs. As you climb, you mark off lengths of the barometer along the wall. You then count the number of marks to get the height of the building in barometer units.
"Of course, if you want a more sophisticated method, you can tie the barometer to the end of a string, swing it as a pendulum, and determine the value of 'g.' The height of the building can, in principle, be calculated from this.
"And," he concluded, "if you don't limit me to physics solutions, you can take the barometer to the basement and knock on the superintendent's door. When he answers, you say, 'Mr. Superintendent, I have here a fine barometer. If you will tell me the height of this building, I will give you this barometer.''
Finally, he admitted that he even knew the correct textbook answer -- measuring the air pressure at the bottom and top of the building and applying the appropriate formula (p=p0e-ay) illustrating that pressure reduces as height increases -- but that he was so fed up with college instructors trying to teach him how to think instead of showing the structure of the subject matter, that he had decided to rebel.
For my part, I seriously considered changing my grade to unequivocal full credit.
How I wish I get students like these to teach.
Saturday, 26 January 2008
Payattu or Kurikkalyanam
One of my earliest memories is the popular, melodious malayalam film songs blaring through a loudspeaker in Vadakara in late 1960's - Songs played on well used Record Players using a primitive amplifier system. It meant that another 'Payattu' was being organized.
'Payattu' ('Kuri kalyanam' as it is called in some other parts) was a feature in northern Kerala those days. It, to my mind, represented all that was good about the society. A society that came to the help of a needy person in a small rural setting.
The system works like this. A person required some money to construct a house, or to marry off his daughter or for his sons education or to finance the expansion of his small business. Those days bank loans were not easy to get, there were no institutional support mechanisms in place. All the person had to do is intimate orally that he is holding a 'payattu' on a particular day. In a small rural society, word of mouth takes care of the marketing. On the day of 'payattu', the person will put up a small pandal (shamiana) and 3-4 tables and chairs. The music system and the limited decoration will ensure publicity for the event. People will walk in on their own accord and will be offered LMPT (short form for a plate of Laddu, Mixture, Pazham(banana) and Tea). They sit and chitchat for awhile with the sponsor of the 'payattu' and others. When they leave, they will donate whatever they can to the organizer, who is in need of money. It could be Rs 5 or Rs 10 or Rs 50 or even Re 1 ( remember that Rs 50 was a fortune those days. 8 gms of gold cost Rs 36. By that account, Rs 50 then was equal to nearly Rs 10,000 of today). The details of the money given including the name of the person is noted down in a note book. Since everyone gives, the organizer gets a substantial amount ranging from Rs 500 - Rs 2000.
The beauty of this social phenomenon is that this is not a loan in the strictest sense. It is only a timely help by the society. The organizer repays this over a very long period whenever one of the members who contributed organizes a 'payattu' or when there is a marriage or death. This eases the burden of repayment.
Like many good things, this wonderful social practice has gone into the oblivion. Such a tragedy. There is much to be learned from the rural society of India. Sometimes I do wonder whether education and increased earning capability has really resulted in any progress when measured in terms of shared value systems and human empathy!!
'Payattu' ('Kuri kalyanam' as it is called in some other parts) was a feature in northern Kerala those days. It, to my mind, represented all that was good about the society. A society that came to the help of a needy person in a small rural setting.
The system works like this. A person required some money to construct a house, or to marry off his daughter or for his sons education or to finance the expansion of his small business. Those days bank loans were not easy to get, there were no institutional support mechanisms in place. All the person had to do is intimate orally that he is holding a 'payattu' on a particular day. In a small rural society, word of mouth takes care of the marketing. On the day of 'payattu', the person will put up a small pandal (shamiana) and 3-4 tables and chairs. The music system and the limited decoration will ensure publicity for the event. People will walk in on their own accord and will be offered LMPT (short form for a plate of Laddu, Mixture, Pazham(banana) and Tea). They sit and chitchat for awhile with the sponsor of the 'payattu' and others. When they leave, they will donate whatever they can to the organizer, who is in need of money. It could be Rs 5 or Rs 10 or Rs 50 or even Re 1 ( remember that Rs 50 was a fortune those days. 8 gms of gold cost Rs 36. By that account, Rs 50 then was equal to nearly Rs 10,000 of today). The details of the money given including the name of the person is noted down in a note book. Since everyone gives, the organizer gets a substantial amount ranging from Rs 500 - Rs 2000.
The beauty of this social phenomenon is that this is not a loan in the strictest sense. It is only a timely help by the society. The organizer repays this over a very long period whenever one of the members who contributed organizes a 'payattu' or when there is a marriage or death. This eases the burden of repayment.
Like many good things, this wonderful social practice has gone into the oblivion. Such a tragedy. There is much to be learned from the rural society of India. Sometimes I do wonder whether education and increased earning capability has really resulted in any progress when measured in terms of shared value systems and human empathy!!
Friday, 25 January 2008
Republic Day Message
On the eve of Republic Day, when he was asked to compose a message for the people, former President Prof. APJ Abdul Kalam, responded promptly,
Dear friends, let me share with you a seven-point resolve on the occasion of ensuing Republic Day 2008:
Dear friends, let me share with you a seven-point resolve on the occasion of ensuing Republic Day 2008:
- Wherever I am, a thought will always come to my mind -- 'What can I give?'
- Whatever the mission I will do, my motto will be - to work with integrity and succeed with integrity. I will always remember that 'my winged days, be not spent in vain'
- I realise I have to set a great goal that will lead me to think high, work and realise the goal
- My greatest friends will be great human beings, great teachers and great books
- I will firmly believe that no problem can defeat me; I will become the captain of the problem, defeat the problem and succeed.
- My National Flag flies in my heart and I will bring glory to my nation. - courtesy www.rediff.com
Since the great man echoes my sentiments, I limit myself to reproducing his message.
Wednesday, 23 January 2008
Broken Pot
There is a beautiful story titled 'A Broken Pot'
A water bearer had two large pots, each hung on an end of a pole which he carried across his neck. One of the pots had a crack in it, and while the other pot was perfect and always delivered a full portion of water at the end of the long walk from the stream to the masters house, the cracked pot arrived only half full.
For a full two years this went on daily, with the bearer delivering only one and a half pots full of water in his masters house. Of course, the perfect pot was proud of its accomplishments, perfect to the end for which it was made. But the poor cracked pot was ashamed of its own imperfection, and miserable that it was able to accomplish only half of what it had been made to do. After two years of what it perceived to be a bitter failure, it spoke to the water bearer one day by the stream.
"I am ashamed of myself, and I want to apologize to you."
"Why?" asked the bearer. "What are you ashamed of?"
"I have been able, for these past two years, to deliver only half my load because this crack in my side causes water to leak out all the way back to your masters house. Because of my flaws, you have to do all of this work, and you don't get full value from your efforts." the pot said.
The water bearer felt sorry for the old cracked pot, and in his compassion he said, "As we return to the masters house, I want you to notice the beautiful flowers along the path."
Indeed, as they went up the hill, the old cracked pot took notice of the sun warming the beautiful wild flowers on the side of the path, and this cheered it some. But at the end of the trail, it still felt bad because it had leaked out half its load, and so again the Pot apologized to the bearer for its failure.
The bearer said to the pot, "Did you notice that there were flowers only on your side of your path, but not on the other pots side? That's because I have always known about your flaw, and I took advantage of it. I planted flower seeds on your side of the path, and every day while we walk back from the stream, you've watered them. For two years I have been able to pick these beautiful flowers to decorate my masters table. Without you being just the way you are, he would not have this beauty to grace his house."
Each of us has our own unique flaws. We're all cracked pots. But if we will allow it, the God will use our flaws to grace his table. In Gods great economy, nothing goes to waste. Don't be afraid of your flaws. Acknowledge them, and you too can be the cause of beauty. Know that in our weakness your strength is made perfect.
A water bearer had two large pots, each hung on an end of a pole which he carried across his neck. One of the pots had a crack in it, and while the other pot was perfect and always delivered a full portion of water at the end of the long walk from the stream to the masters house, the cracked pot arrived only half full.
For a full two years this went on daily, with the bearer delivering only one and a half pots full of water in his masters house. Of course, the perfect pot was proud of its accomplishments, perfect to the end for which it was made. But the poor cracked pot was ashamed of its own imperfection, and miserable that it was able to accomplish only half of what it had been made to do. After two years of what it perceived to be a bitter failure, it spoke to the water bearer one day by the stream.
"I am ashamed of myself, and I want to apologize to you."
"Why?" asked the bearer. "What are you ashamed of?"
"I have been able, for these past two years, to deliver only half my load because this crack in my side causes water to leak out all the way back to your masters house. Because of my flaws, you have to do all of this work, and you don't get full value from your efforts." the pot said.
The water bearer felt sorry for the old cracked pot, and in his compassion he said, "As we return to the masters house, I want you to notice the beautiful flowers along the path."
Indeed, as they went up the hill, the old cracked pot took notice of the sun warming the beautiful wild flowers on the side of the path, and this cheered it some. But at the end of the trail, it still felt bad because it had leaked out half its load, and so again the Pot apologized to the bearer for its failure.
The bearer said to the pot, "Did you notice that there were flowers only on your side of your path, but not on the other pots side? That's because I have always known about your flaw, and I took advantage of it. I planted flower seeds on your side of the path, and every day while we walk back from the stream, you've watered them. For two years I have been able to pick these beautiful flowers to decorate my masters table. Without you being just the way you are, he would not have this beauty to grace his house."
Each of us has our own unique flaws. We're all cracked pots. But if we will allow it, the God will use our flaws to grace his table. In Gods great economy, nothing goes to waste. Don't be afraid of your flaws. Acknowledge them, and you too can be the cause of beauty. Know that in our weakness your strength is made perfect.
Invest long term
The bloodbath at the Stock Markets yesterday would have made many of you investors vary of trading in Stocks. The trick in making profits in the Stock Market lies in following some sound principles rather than speculating. Speculations might yield you phenomenal returns once in a while, but in the long run it all evens out. Prudent long range planning in equity investments will yield you a return in the range of 20-25% and that should be your aim.
There are some basic principles on investing in the Stock Market. Stock investments should be looked at in the same way as buying a business. The stock investor is really buying a tiny share or partnership and should apply the same principles that they would in buying a business. Always buy companies that are managed well. The company should be soundly managed. The Company should be prudent in using its retained earnings. Contrary to what many think, those companies that stick to what they know are always a sounder investment proposition than the ones who diversify mindlessly.
A good company is one that has demonstrated its earning capacity over a period of time. This can be assessed through its revenue growth, net profits, capital expenditure and growth in brand equity. The company should also have shown consistently higher returns on equity and capital.
Not many do this, but an investor needs to evaluate the equity-debt structure of the company he proposes to invest. Higher debt should serve as a warning signal. Look for a equity:debt ratio of 1:2.5.
The cost of investment should be reasonable with a margin of safety. These are both subjective in nature and depends on the attitude of individual investors on risk-return trade-off. Price/Earnings ratio, Earnings per share and Book Value will serve as a guideline in this regard.
This may sound a bit tedious. But never invest in a company whose business you don't know. Put in some effort to understand the business. You wouldn't buy a business that you are totally ignorant off, will you? Then why should you invest in a business that is complex and you have no clue about?
Finally, plan for a longer term. Do not expect outstanding returns in the shorter term. Slow and steady wins the race. Prepare yourself mentally for the long haul.
There are some basic principles on investing in the Stock Market. Stock investments should be looked at in the same way as buying a business. The stock investor is really buying a tiny share or partnership and should apply the same principles that they would in buying a business. Always buy companies that are managed well. The company should be soundly managed. The Company should be prudent in using its retained earnings. Contrary to what many think, those companies that stick to what they know are always a sounder investment proposition than the ones who diversify mindlessly.
A good company is one that has demonstrated its earning capacity over a period of time. This can be assessed through its revenue growth, net profits, capital expenditure and growth in brand equity. The company should also have shown consistently higher returns on equity and capital.
Not many do this, but an investor needs to evaluate the equity-debt structure of the company he proposes to invest. Higher debt should serve as a warning signal. Look for a equity:debt ratio of 1:2.5.
The cost of investment should be reasonable with a margin of safety. These are both subjective in nature and depends on the attitude of individual investors on risk-return trade-off. Price/Earnings ratio, Earnings per share and Book Value will serve as a guideline in this regard.
This may sound a bit tedious. But never invest in a company whose business you don't know. Put in some effort to understand the business. You wouldn't buy a business that you are totally ignorant off, will you? Then why should you invest in a business that is complex and you have no clue about?
Finally, plan for a longer term. Do not expect outstanding returns in the shorter term. Slow and steady wins the race. Prepare yourself mentally for the long haul.
Tuesday, 22 January 2008
Namaste
Indians greet each other with Namaste. The two palms are placed together in front of the chest and the head bows whilst saying the word Namaste. This greeting is for all – people younger than us, of our own age, those older than friends, even strangers and us.
There are five forms of formal traditional greeting enjoined in the shaastras of which Namaskaram is one. This is understood as prostration but it actually refers to paying homage as we do today when we greet each other with a Namaste. Namaste could be just a casual or formal greeting, a cultural convention or an act of worship. However there is much more to it than meets the eye.
In Sanskrit,
'namah + te = Namaste'.
It means - I bow to you - my greetings, salutations or prostration to you. Namaha can also be literally interpreted as "na ma" (not mine). It has a spiritual significance of negating or reducing one's ego in the presence of another. The real meeting between people is the meeting of their minds. When we greet another, we do so with Namaste, which means, "may our minds meet," indicated by the folded palms placed before the chest. The bowing down of the head is a gracious form of extending friendship in love and humility.
The spiritual meaning is even deeper. The life force, the divinity, the Self or the Lord in me is the same in all. Recognizing this oneness with the meeting of the palms, we salute with head bowed the Divinity in the person we meet. That is why sometimes, we close our eyes as we do Namaste to a revered person or the Lord - as if to look within. When we know this significance, our greeting does not remain just a superficial gesture or word but paves the way for a deeper communion with another in an atmosphere of love and respect- Adapted from an article by Swami Chinmayananda
There are five forms of formal traditional greeting enjoined in the shaastras of which Namaskaram is one. This is understood as prostration but it actually refers to paying homage as we do today when we greet each other with a Namaste. Namaste could be just a casual or formal greeting, a cultural convention or an act of worship. However there is much more to it than meets the eye.
In Sanskrit,
'namah + te = Namaste'.
It means - I bow to you - my greetings, salutations or prostration to you. Namaha can also be literally interpreted as "na ma" (not mine). It has a spiritual significance of negating or reducing one's ego in the presence of another. The real meeting between people is the meeting of their minds. When we greet another, we do so with Namaste, which means, "may our minds meet," indicated by the folded palms placed before the chest. The bowing down of the head is a gracious form of extending friendship in love and humility.
The spiritual meaning is even deeper. The life force, the divinity, the Self or the Lord in me is the same in all. Recognizing this oneness with the meeting of the palms, we salute with head bowed the Divinity in the person we meet. That is why sometimes, we close our eyes as we do Namaste to a revered person or the Lord - as if to look within. When we know this significance, our greeting does not remain just a superficial gesture or word but paves the way for a deeper communion with another in an atmosphere of love and respect- Adapted from an article by Swami Chinmayananda
Monday, 21 January 2008
The Toyota Way
Toyota is as much a state of mind as it is a car company
“Respect for Humanity” is at the foundation of the Toyota Way, also known as the Toyota Production System (TPS), which is now studied globally by students of Business Administration.
“Respect for Humanity” is at the foundation of the Toyota Way, also known as the Toyota Production System (TPS), which is now studied globally by students of Business Administration.
The company, world number one Automobile Manufacturer, has adhered to the core principle of contributing to society through the practice of manufacturing high-quality products and services. Its business practices, based on this core principle, created values, beliefs and business methods that over the years have become a source of competitive advantage. These are known collectively as the Toyota Way. The 14 Toyota Way Principles are;
Base your management decisions on a long-term philosophy, even at the expense of short-term financial gains. Have a philosophical sense of purpose and mission that supersedes any short-term decision-making. Work, grow, and align the whole organisation toward a common purpose that is bigger than making money.
The Right Process will produce the Right Results. Don’t hide problems within the organisation, but create continuous process flow to bring them to the surface.
Avoid overproduction by following the principle of just-in-time — namely, customers should get what they want, when they want it, and in the amount they want.
Eliminate waste of human and material resources. Also, strive to cut back to zero the amount of time that any work project is sitting idle or waiting for someone to work on it.
Build a culture of stopping to fix problems, to get quality right the first time.
Standardised tasks are the foundation for continuous improvement and employee empowerment. Capture the accumulated learning about a process by institutionalising today’s best practices and allow employees to improve the standard through creative self-expression.
Use visual and manual control so that no problems are hidden.
Use technology to support people, not to replace people. Reject or modify technologies that conflict with your work culture. Nevertheless, encourage your people to consider new technologies when looking into new approaches to work.
Develop such leaders in your organisation who thoroughly understand the work, live the philosophy, and teach it to others. Do not view the leader’s job as simply accomplishing tasks. Leaders must be role models of the company’s philosophy and way of doing business.
Develop exceptional people and teams who follow your company’s philosophy. Make an ongoing effort to teach individuals to work together as teams toward common goals.
Have respect for your business partners and suppliers and treat them as an extension of your business.
Continuously solving root problems improves organisational learning. Even high-level managers should go and see things for themselves, so that they will have more than a superficial understanding of the situation.
Make decisions slowly by consensus, thoroughly considering all options; but implement decisions rapidly.
Become a learning organisation through relentless reflection (hansei) and continuous improvement (kaizen). Protect the organisation’s knowledge and cultural base by developing stable personnel, careful promotion, and well thought-out succession systems.
Some of these principles are specific to Japanese Culture and many not be replicable. But quite a few are Universal in nature, especially the ones I have highlighted in bold. I like the bit about 'Use technology to support people, not to replace people'. Most organizations fail to understand this concept. Nothing but nothing can replace human enterprise and intelligence - Adapted from 'The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer', by Jeffrey Liker. The highlighting is mine
Sunday, 20 January 2008
Yayati Syndrome
Mental Strength is very critical for success. A strong mind has to maintain a level of calmness,should be positive,should have the ability to regain poise if the equilibrium is disturbed or have the ability to maintain equanimity in the midst of all the external vagaries of work and social existence. Internal constancy and peace are the pre-requisites for a healthy stress-free mind.
Let us see what stands in the way of a person acquiring mental strength;
Greed - for power, position, prestige and money.
Envy - regarding others' achievements, success, rewards.
Egotism - about one's own accomplishments.
Suspicion, anger and frustration.
Anguish through comparisons.
Enhanced competition, speed and a phenomenal rate of change define today’s business. The reaction time for a manager is very less and the pressure to produce results is immense. This leads to a Manager adopting short cuts to achieve success at the risk of compromising his value system. He might resort to opt for immoral means like tax evasion, illegitimate financial holdings, being “economical with the truth”, deliberate oversight in the audit, and window dressing of financials and so on.
This is the “yayati syndrome”. Mahabharata has a story about a king by the name of Yayati who, in order to revel in the endless enjoyment of flesh exchanged his old age with the youth of his obliging youngest son for thousand years. However, he found the pursuit of sensual enjoyments ultimately unsatisfying and came back to his son pleading him to take back his youth. This “yayati syndrome” shows the conflict between externally directed acquisitions (extrinsic motivation) and inner value and conscience (intrinsic motivation.).
And there in lies the answer to the question of whether one should adopt a strategy of ‘Win at all costs’. Strengthen your minds, uphold the business ethics-(compiled from various sources)
Let us see what stands in the way of a person acquiring mental strength;
Greed - for power, position, prestige and money.
Envy - regarding others' achievements, success, rewards.
Egotism - about one's own accomplishments.
Suspicion, anger and frustration.
Anguish through comparisons.
Enhanced competition, speed and a phenomenal rate of change define today’s business. The reaction time for a manager is very less and the pressure to produce results is immense. This leads to a Manager adopting short cuts to achieve success at the risk of compromising his value system. He might resort to opt for immoral means like tax evasion, illegitimate financial holdings, being “economical with the truth”, deliberate oversight in the audit, and window dressing of financials and so on.
This is the “yayati syndrome”. Mahabharata has a story about a king by the name of Yayati who, in order to revel in the endless enjoyment of flesh exchanged his old age with the youth of his obliging youngest son for thousand years. However, he found the pursuit of sensual enjoyments ultimately unsatisfying and came back to his son pleading him to take back his youth. This “yayati syndrome” shows the conflict between externally directed acquisitions (extrinsic motivation) and inner value and conscience (intrinsic motivation.).
And there in lies the answer to the question of whether one should adopt a strategy of ‘Win at all costs’. Strengthen your minds, uphold the business ethics-(compiled from various sources)
Saturday, 19 January 2008
Outsourcing
One of my main grouses about Management is a lack of really innovative ideas that leads to a paradigm shift in thinking. Whenever a concept becomes a Fad like Six Sigma, Activity Based Costing etc and is being talked about as the next great thing to happen to Management, I have a sense of Deja Vu about it.
Let us the take the Systems concept in Management which made an entrance in 1970's , died a natural death and resurfaced again in the new millennium. If you go back to the beginning of the last century and do a critical analysis of the Scientific Management theory of F W Taylor, you will notice an eerie similarity.
The latest is the concept of 'Out sourcing'. Simply put, this means using external organizations/individuals to handle certain aspects of your organizations activities where either you don't have core competence or you don't want to develop core competence as the work could be routine and mundane.
In olden days, there existed a system of Wet Nurses. These were ladies, normally from the lower strata of the society, who breast fed babies belonging to rich families. This was necessitated either because the child's mother had medical problems or died in child birth or was plain lazy to breast feed her child. In management parlance, I would call this 'out sourcing'.
In Kerala, by early 1960's, when the land reforms were put in place, the land holdings became smaller and as such many of the landlords (Janmi) found it not very profitable to cultivate the land on their own. The fact that their next generation was not keen on an agrarian vocation as compared to a Government Job also contributed to this. The land was anyway being cultivated by the landlords employees (Kudiyan). The landlord stuck a deal with him whereby the Kudiyan will cultivate the land in return for an annual fee by way of paddy or money. Outsourcing or leasing or franchising. You may categorize this practice under any of these.
I noticed something in my hometown recently. Lot of people from Palghat migrated to Mumbai in early 1950s and 1960s in search of a job. They struggled there, made their money, bought a house then for Rs 50000. Now, they are all retired and not keen to continue living in Mumbai because they long for their roots. It makes financial sense too. They sold of their house which they purchased long ago for nearly Rs 80-90 lakhs, gave a portion of it to their children and purchased a house for Rs 15 lakhs in my hometown. They still have about Rs 30 lakhs in Bank that is sufficient for them to lead a comfortable life. The problem is that both are quite old, it is difficult to get servants in my home town. Now comes the interesting part. Palghat is full of agraharams and there were many cooks who used to take job orders for marriages and other functions. These guys have become quite enterprising and most have gone up the corporate ladder by starting Catering Companies. Palghat is flooded with Catering Companies. Apart from cooking for feasts, these entrepreneurs have hit upon a novel idea. They have identified a target market in these Mumbai returned old people and have offered them home delivered quality food thrice a day including the plantain leaf that will be used in lieu of plates. And on auspicious days, these old people even get a portion of the feast as anyway these companies prepare them. The cost is Rs 2000 - Rs 2500 per month per person. The cost of food for a family of two works out to Rs 5000. Cute isn't it? It is a win-win situation. The elderly people had their worries regarding cooking, cleaning vessels etc taken care of and the Catering companies, most of whom have about 100-200 customers get a steady income that takes care of their overheads. Come to think of it, can't we call this outsourcing?
Let us the take the Systems concept in Management which made an entrance in 1970's , died a natural death and resurfaced again in the new millennium. If you go back to the beginning of the last century and do a critical analysis of the Scientific Management theory of F W Taylor, you will notice an eerie similarity.
The latest is the concept of 'Out sourcing'. Simply put, this means using external organizations/individuals to handle certain aspects of your organizations activities where either you don't have core competence or you don't want to develop core competence as the work could be routine and mundane.
In olden days, there existed a system of Wet Nurses. These were ladies, normally from the lower strata of the society, who breast fed babies belonging to rich families. This was necessitated either because the child's mother had medical problems or died in child birth or was plain lazy to breast feed her child. In management parlance, I would call this 'out sourcing'.
In Kerala, by early 1960's, when the land reforms were put in place, the land holdings became smaller and as such many of the landlords (Janmi) found it not very profitable to cultivate the land on their own. The fact that their next generation was not keen on an agrarian vocation as compared to a Government Job also contributed to this. The land was anyway being cultivated by the landlords employees (Kudiyan). The landlord stuck a deal with him whereby the Kudiyan will cultivate the land in return for an annual fee by way of paddy or money. Outsourcing or leasing or franchising. You may categorize this practice under any of these.
I noticed something in my hometown recently. Lot of people from Palghat migrated to Mumbai in early 1950s and 1960s in search of a job. They struggled there, made their money, bought a house then for Rs 50000. Now, they are all retired and not keen to continue living in Mumbai because they long for their roots. It makes financial sense too. They sold of their house which they purchased long ago for nearly Rs 80-90 lakhs, gave a portion of it to their children and purchased a house for Rs 15 lakhs in my hometown. They still have about Rs 30 lakhs in Bank that is sufficient for them to lead a comfortable life. The problem is that both are quite old, it is difficult to get servants in my home town. Now comes the interesting part. Palghat is full of agraharams and there were many cooks who used to take job orders for marriages and other functions. These guys have become quite enterprising and most have gone up the corporate ladder by starting Catering Companies. Palghat is flooded with Catering Companies. Apart from cooking for feasts, these entrepreneurs have hit upon a novel idea. They have identified a target market in these Mumbai returned old people and have offered them home delivered quality food thrice a day including the plantain leaf that will be used in lieu of plates. And on auspicious days, these old people even get a portion of the feast as anyway these companies prepare them. The cost is Rs 2000 - Rs 2500 per month per person. The cost of food for a family of two works out to Rs 5000. Cute isn't it? It is a win-win situation. The elderly people had their worries regarding cooking, cleaning vessels etc taken care of and the Catering companies, most of whom have about 100-200 customers get a steady income that takes care of their overheads. Come to think of it, can't we call this outsourcing?
Friday, 18 January 2008
Of Gifts and then more Gifts
When you go visiting a new born baby, ensure to check up whether the baby has an elder sister or brother and do not forget to buy a gift for the older child. The older child is very sensitive and will already be upset that he or she is not the centre of attention any more. A thoughtful gift (even a chocolate box will do) to this child is quite appropriate. It is alright even if you do not buy any gift for the new born, as the baby is not in a position to understand and appreciate gifts. And the parents won't mind in the least.
In the same situation, it will be a nice gesture if you can buy a small gift for the mother of the baby. Here is someone who has gone through 10 months of pregnancy and the travails of a childbirth. She definitely deserves appreciation.
When you go to the Airport or Railway station to see off someone, buy a couple of magazines for him/her to read. A bottle of water will also be quite welcome.
Contrary to what many think, fruits may not be the right choice when you visit a sick person. Most of the doctors insist on a strict diet and hence your gift of a basket of fruits may be of no use. Boredome is the salient feature in any hospital stay. Couple of nice audio cassettes/ CD or a not too heavy book or again magazines will do.
Should you be giving chocolates to the children of the house when you go visiting a friend or relative? Most parents complain about children over indulging in chocolates and may frown on them being provided with a box of candy. A box of cookies, biscuits or some good educational toy may be thought of.
Whatever be the occasion, the gift should be chosen carefully keeping the person to whom it is given in mind, his/her likes and dislikes. Also, the gift should have your personal touch and should refect your unique personality. A gift is and has to be a very personal thing. Please do not commodotize it.
In the same situation, it will be a nice gesture if you can buy a small gift for the mother of the baby. Here is someone who has gone through 10 months of pregnancy and the travails of a childbirth. She definitely deserves appreciation.
When you go to the Airport or Railway station to see off someone, buy a couple of magazines for him/her to read. A bottle of water will also be quite welcome.
Contrary to what many think, fruits may not be the right choice when you visit a sick person. Most of the doctors insist on a strict diet and hence your gift of a basket of fruits may be of no use. Boredome is the salient feature in any hospital stay. Couple of nice audio cassettes/ CD or a not too heavy book or again magazines will do.
Should you be giving chocolates to the children of the house when you go visiting a friend or relative? Most parents complain about children over indulging in chocolates and may frown on them being provided with a box of candy. A box of cookies, biscuits or some good educational toy may be thought of.
Whatever be the occasion, the gift should be chosen carefully keeping the person to whom it is given in mind, his/her likes and dislikes. Also, the gift should have your personal touch and should refect your unique personality. A gift is and has to be a very personal thing. Please do not commodotize it.
Thursday, 17 January 2008
Do your duty without expecting anything in return
'Karmanye Vadhikarasthe
Ma Bhaleshu Kadhachana'
This verse from Bhagavat Gita embodies the difference between Indian Management Philosophy and Western Management Philosophy.
Gita calls for you to do your duty without looking at the returns from it (fruits of your labour). It exhorts you to raise yourself to the lever of 'Self Actualization' (remember Abraham Maslow's hierarchy of needs?). One has to “detach” from the fruits or results of actions performed in the course of one's duty. The philosophy has to be“working for the sake of work, generating excellence for its own sake.”
If we are always calculating the date of promotion or the rate of commission before putting in our efforts, then such work is not detached. It is not “generating excellence for its own sake” but working only for the extrinsic reward that may (or may not) result.
Working only with an eye to the anticipated benefits, means that the quality of performance of the current job or duty suffers - through mental agitation of anxiety for the future. In fact, the way the world works means that events do not always respond positively to our calculations and hence expected fruits may not always be forthcoming. Gita tells us not to mortgage the present commitment to an uncertain future.
Some people might argue that not seeking the business result of work and actions, makes one unaccountable. In fact, the Bhagavad Gita is full of advice on the theory of cause and effect, making the doer responsible for the consequences of his deeds. While advising detachment from the avarice of selfish gains in discharging one's accepted duty, the Gita does not absolve anybody of the consequences arising from discharge of his or her responsibilities.
Thus the best means of effective performance management is the work itself. Attaining this state of mind (called “nishkama karma”) is the right attitude to work because it prevents the ego, the mind, from dissipation of attention through speculation on future gains or losses.
(compiled from various sources)
Wednesday, 16 January 2008
Building beautiful monuments
There is a lovely story that depicts one's approach to work,
Three stone-cutters were engaged in the construction of a temple. Someone asked them what they were doing. The response of the three workers to this innocent-looking question is illuminating.
'I am a poor man. I have to maintain my family. I am making a living here,' said the first stone-cutter with a dejected face.
'Well, I work because I want to be known as the best stone-cutter in the country,' said the second one with a sense of pride.
'Oh, I want to build the most beautiful temple in the country,' said the third one with a visionary gleam.
Look at the difference in perspective.
The Bhagavat Gita exhorts us to develop the visionary perspective. We should have a larger vision and our work should be aimed at the common good.
Most of the people I have met (especially in the Middle East) are like the first worker. They tend to look at everything from a monetary angle. What do I get if I do this job or if I help a particular person? I am not saying this is wrong. But then you cannot except others to have a different approach when it is something pertaining to you.
The other day, a business associate of mine asked me 'Rajan, you are totally involved in this project with me. But we have not even discussed the terms and conditions for your consultancy service. Tell me, what makes you do this with so much passion'
My reply, ' What you wanted me to do is something perhaps only a handful of people can do in Kuwait and I am one of them. For me, it is art for the sake of art. I love doing it, because I have the skill sets to do it, and it has to be done'
He is a very perceptive man and am sure he understood.
Am I right? Only posterity will be able to tell you that. But I am at peace with myself and I am developing a unique personality style, like the worker who is building a beautiful temple. For me money is a means to achieve an end, not an end by itself.
I have to live with myself first and cannot go against the 'beat' (thalam) of my life.
I want to build wonderful monuments, great pieces of work that lasts beyond me.
Three stone-cutters were engaged in the construction of a temple. Someone asked them what they were doing. The response of the three workers to this innocent-looking question is illuminating.
'I am a poor man. I have to maintain my family. I am making a living here,' said the first stone-cutter with a dejected face.
'Well, I work because I want to be known as the best stone-cutter in the country,' said the second one with a sense of pride.
'Oh, I want to build the most beautiful temple in the country,' said the third one with a visionary gleam.
Look at the difference in perspective.
The Bhagavat Gita exhorts us to develop the visionary perspective. We should have a larger vision and our work should be aimed at the common good.
Most of the people I have met (especially in the Middle East) are like the first worker. They tend to look at everything from a monetary angle. What do I get if I do this job or if I help a particular person? I am not saying this is wrong. But then you cannot except others to have a different approach when it is something pertaining to you.
The other day, a business associate of mine asked me 'Rajan, you are totally involved in this project with me. But we have not even discussed the terms and conditions for your consultancy service. Tell me, what makes you do this with so much passion'
My reply, ' What you wanted me to do is something perhaps only a handful of people can do in Kuwait and I am one of them. For me, it is art for the sake of art. I love doing it, because I have the skill sets to do it, and it has to be done'
He is a very perceptive man and am sure he understood.
Am I right? Only posterity will be able to tell you that. But I am at peace with myself and I am developing a unique personality style, like the worker who is building a beautiful temple. For me money is a means to achieve an end, not an end by itself.
I have to live with myself first and cannot go against the 'beat' (thalam) of my life.
I want to build wonderful monuments, great pieces of work that lasts beyond me.
Tuesday, 15 January 2008
Why don't you ASK?
A child asks thousands of questions. Why is the sky blue? Why do ants move in a line? Can I go to moon? Why are we celebrating Pongal? Where does rice come from? Why am I not there in yours and mother's wedding photos ? Won't my baby brother who is in the womb suffocate? What is time?.............the list is endless. But that is how the child learns.
As we grow older, we become progressively reluctant to ask questions. I have always felt it has more to do with our Educational system which discourages out of the box thinking by focusing on discipline. An inquisitive child is considered to be nuisance and put down by the teachers with a heavy hand. As the child grows up, there is a reinforcement that it doesn't pay to be inquisitive. When teachers make fun of you, friends mock you and parents dismiss your questions, your curiosity dies a natural death. Parents are equally guilty. They do not create an atmosphere in the house where the child can ask legitimate questions. Most of the time it is dismissed with a curt "You are not old enough to understand this" or "It is like that. It is the tradition and you cannot question it" type of answers. Is there any wonder that the child grows up accepting things blindly and losing his ability to question or think out of the box.
The denouement comes at the work place. It is an exact replica of the school. Initiatives are frowned upon, questioning the conventional wisdom considered to be taboo and again no satisfactory clarifications are given to genuine doubts of the employee. Added to this is the ego of the employee. His desire not to show others that he does not know a particular subject, lest others consider it a weakness. Over a period of time, not asking questions becomes a habit. The end result? The person stops learning and that results him or her not improving as an individual.
I notice this a lot when I teach my MBA students. All of them are in the age group of 25-45 and employed. Hardly anyone raises a doubt or ask a pertinent question. This leads to an absence of debate, suppression of one's ideas, a healthy discussion and sharing of differing viewpoints.
It is said 'Ignorance is bliss' but I cannot accept that statement. One needs to grow continuously as a person. You learn throughout life till you die. Even death is a learning process. And the best way to learn is to ASK people who possess the knowledge. It is the cheapest and the best way of acquiring wisdom.
Shed your Ego, do not be discouraged by people who put you down when you clarify doubts, go ahead and keep on Asking. It will broaden your thinking and a whole new world will be open to you.
As we grow older, we become progressively reluctant to ask questions. I have always felt it has more to do with our Educational system which discourages out of the box thinking by focusing on discipline. An inquisitive child is considered to be nuisance and put down by the teachers with a heavy hand. As the child grows up, there is a reinforcement that it doesn't pay to be inquisitive. When teachers make fun of you, friends mock you and parents dismiss your questions, your curiosity dies a natural death. Parents are equally guilty. They do not create an atmosphere in the house where the child can ask legitimate questions. Most of the time it is dismissed with a curt "You are not old enough to understand this" or "It is like that. It is the tradition and you cannot question it" type of answers. Is there any wonder that the child grows up accepting things blindly and losing his ability to question or think out of the box.
The denouement comes at the work place. It is an exact replica of the school. Initiatives are frowned upon, questioning the conventional wisdom considered to be taboo and again no satisfactory clarifications are given to genuine doubts of the employee. Added to this is the ego of the employee. His desire not to show others that he does not know a particular subject, lest others consider it a weakness. Over a period of time, not asking questions becomes a habit. The end result? The person stops learning and that results him or her not improving as an individual.
I notice this a lot when I teach my MBA students. All of them are in the age group of 25-45 and employed. Hardly anyone raises a doubt or ask a pertinent question. This leads to an absence of debate, suppression of one's ideas, a healthy discussion and sharing of differing viewpoints.
It is said 'Ignorance is bliss' but I cannot accept that statement. One needs to grow continuously as a person. You learn throughout life till you die. Even death is a learning process. And the best way to learn is to ASK people who possess the knowledge. It is the cheapest and the best way of acquiring wisdom.
Shed your Ego, do not be discouraged by people who put you down when you clarify doubts, go ahead and keep on Asking. It will broaden your thinking and a whole new world will be open to you.
Monday, 14 January 2008
Have You Done Anything Over and Above the Call of Your Duty
I had a decent spell of 5 years with one of the leading Public Sector undertakings in India - Hindustan Petroleum Corporation Ltd. HPCL, even in early 1990's, had a superb Appraisal system in place. At the beginning of the year, the employee has to fill in HP-HRD-I. This is an exercise in setting your own goals and targets in quantitative terms. The goals were divided on a quarterly basis, discussed with the immediate Supervisor resulting in an amicable (at times stormy discussion) agreement between the two and a signing off.
At the end of each quarter, the employee has to provide his performance against each target and suggest action plans to overcome any shortfalls. Again this is reviewed by the Supervisor. Finally at the end of the year, employee does a self assessment. The Supervisor, based on the employees Self Appraisal and his own assessment prepares a document called HP-HRD II, which is comprehensive covering all the aspects of the subordinates job, both hard skills and soft skills. He, then, gives a rating on a scale of 1 to 4, with 1 being the highest and 4 the lowest. These two documents are then sent to the Supervisors Manager for review and approval to ensure that no employee is victimised by his Supervisor.
As a Sales Officer, handling Retail, LPG and Industrial Products in Coimbatore Sales Area, I was selling more than 100 odd products and had targets for each and every one of them. Add to this inspection targets, new outlet commissioning, budgetary compliance, tankage augmentation, up gradation of Retail Outlets, Subsidies given to dealers etc etc.........the list of specific quantifiable targets was endless.
At the end of the year, even if I have met all my targets (which is a near impossibility), I will still be not given an outstanding rating of 1. The reason - in HPCL meeting targets are what you are supposed to do and that which is a part of your job. You are entitled to get an Outstanding Rating of 1 only if YOU HAVE DONE SOMETHING OVER AND ABOVE THE CALL OF DUTY.
This is a superb concept that fosters innovative and out of the box thinking. One year, me and a colleague of mine, adopted a tribal village in Attappadi under an obscure scheme of HPCL and did lot of developmental work. Another year, I was instrumental in identifying, negotiating with 45 land dwellers and the district administration to acquire land for our proposed new storage point and replicated the same next year with respect to an LPG plant in the neighbouring State. At the end of the year, I felt a sense of accomplishment, was happy that I showed leadership and initiative. This went a long way in making me a leader. Looking back, I am thankful for HPCL in more ways than one as my stint with them gave me tremendous self confidence needed to become an enterpreneur and a top notch professional.
This is the time in Kuwait and elsewhere when appraisals are prepared. When you step in for the appraisal discussion, think back and identify the times when you had done something over and above the call of duty. If you have not done anything, tough luck friend. You are not going to go ahead. All you can do is to plan ahead for 2008, take up a challenge outside your normal responsibilities and invest in it to make it a success.
Do Something / Anything over and above the Call of your Duty
At the end of each quarter, the employee has to provide his performance against each target and suggest action plans to overcome any shortfalls. Again this is reviewed by the Supervisor. Finally at the end of the year, employee does a self assessment. The Supervisor, based on the employees Self Appraisal and his own assessment prepares a document called HP-HRD II, which is comprehensive covering all the aspects of the subordinates job, both hard skills and soft skills. He, then, gives a rating on a scale of 1 to 4, with 1 being the highest and 4 the lowest. These two documents are then sent to the Supervisors Manager for review and approval to ensure that no employee is victimised by his Supervisor.
As a Sales Officer, handling Retail, LPG and Industrial Products in Coimbatore Sales Area, I was selling more than 100 odd products and had targets for each and every one of them. Add to this inspection targets, new outlet commissioning, budgetary compliance, tankage augmentation, up gradation of Retail Outlets, Subsidies given to dealers etc etc.........the list of specific quantifiable targets was endless.
At the end of the year, even if I have met all my targets (which is a near impossibility), I will still be not given an outstanding rating of 1. The reason - in HPCL meeting targets are what you are supposed to do and that which is a part of your job. You are entitled to get an Outstanding Rating of 1 only if YOU HAVE DONE SOMETHING OVER AND ABOVE THE CALL OF DUTY.
This is a superb concept that fosters innovative and out of the box thinking. One year, me and a colleague of mine, adopted a tribal village in Attappadi under an obscure scheme of HPCL and did lot of developmental work. Another year, I was instrumental in identifying, negotiating with 45 land dwellers and the district administration to acquire land for our proposed new storage point and replicated the same next year with respect to an LPG plant in the neighbouring State. At the end of the year, I felt a sense of accomplishment, was happy that I showed leadership and initiative. This went a long way in making me a leader. Looking back, I am thankful for HPCL in more ways than one as my stint with them gave me tremendous self confidence needed to become an enterpreneur and a top notch professional.
This is the time in Kuwait and elsewhere when appraisals are prepared. When you step in for the appraisal discussion, think back and identify the times when you had done something over and above the call of duty. If you have not done anything, tough luck friend. You are not going to go ahead. All you can do is to plan ahead for 2008, take up a challenge outside your normal responsibilities and invest in it to make it a success.
Do Something / Anything over and above the Call of your Duty
Sunday, 13 January 2008
Did You drink that 2 litres of Milk?
A hot afternoon in a remote village in rural India. The period was 1950's. Indian Prime Minister Jawaharlal Nehru was travelling in a rickety jeep with hardly any escort, when the Jeep screeched to a halt as the driver applied his brakes in order to avoid hitting a person who was crossing the road unmindful of the danger.
Nehru looked up to see an old old man carrying a small brass container in one hand and a stick on the other crossing the road and looking at the jeep in bewilderment. Nehru, jumped out of the jeep, took a few quick steps, put his hand around the octogenarian and guided him across the road to safety. The old man screwed his eyes, looked at the smiling, humane face of Nehru and thanked him profusely. He thanked Nehru , but didn't recognise him.
On being queried who he was, Nehru humbly replied that he was the Prime Minster of India.
The old mans eyes lit up and he asked " Are you really Jawahar?".
When Nehru replied in the affirmative, the old man thrust the small container he had with him and told "Drink this".
Nehru was taken aback. The container contained at least 2 litres of cows milk and he was just coming from a sumptuous lunch. "Sir, I don't think I can drink this milk as I have just had my lunch"
The old man was disgusted, "Are you really Jawahar, the Prime Minister of India and who got India its freedom? How can a guy who cannot drink even 2 litres of milk, administer my India?"
Nehru understood immediately. Taking the container, he drank the 2 litres of milk in one gulp. The old man was pleased and gave a big toothless grin. Nehru politely took leave of him, got into the jeep and drove away.
I have always fondly remembered this story whenever I see our political leaders surrounded by security people and totally out of touch with the common man. They live in ivory towers and this lack of empathy is one of the reasons for the continued mess our country is in. Nehru's accessibility to the layman, his identifying with them and their comfort with him makes him stand apart. I do disagree with many of Nehru's policies and personal opinions. But he was a leader with charisma and very humane. They don't make leaders like Nehru these days. What we have is a bunch of self serving nincompoops and criminals. It is said that we get the leaders we deserve. But even we don't deserve our current bunch of political masters.
The story has some management angles. The Manager should be empathetic and in touch with the ground reality. He need to be empathetic and use what he can to gain the confidence of even the inconsequential. He need to demonstrate his leadership qualities in every single occassion, however irrelevant it may seem to him.
Also, more often that not, we baulk at taking additional work (the 2 litres of milk) citing that we are up to our neck with our current tasks and hence miss an opportunity to stretch ourselves and prove a point to others. There is always that little bit extra inside all of us to do something special.
Ask yourself everyday, "Did I drink that 2 litres of milk?"
Nehru looked up to see an old old man carrying a small brass container in one hand and a stick on the other crossing the road and looking at the jeep in bewilderment. Nehru, jumped out of the jeep, took a few quick steps, put his hand around the octogenarian and guided him across the road to safety. The old man screwed his eyes, looked at the smiling, humane face of Nehru and thanked him profusely. He thanked Nehru , but didn't recognise him.
On being queried who he was, Nehru humbly replied that he was the Prime Minster of India.
The old mans eyes lit up and he asked " Are you really Jawahar?".
When Nehru replied in the affirmative, the old man thrust the small container he had with him and told "Drink this".
Nehru was taken aback. The container contained at least 2 litres of cows milk and he was just coming from a sumptuous lunch. "Sir, I don't think I can drink this milk as I have just had my lunch"
The old man was disgusted, "Are you really Jawahar, the Prime Minister of India and who got India its freedom? How can a guy who cannot drink even 2 litres of milk, administer my India?"
Nehru understood immediately. Taking the container, he drank the 2 litres of milk in one gulp. The old man was pleased and gave a big toothless grin. Nehru politely took leave of him, got into the jeep and drove away.
I have always fondly remembered this story whenever I see our political leaders surrounded by security people and totally out of touch with the common man. They live in ivory towers and this lack of empathy is one of the reasons for the continued mess our country is in. Nehru's accessibility to the layman, his identifying with them and their comfort with him makes him stand apart. I do disagree with many of Nehru's policies and personal opinions. But he was a leader with charisma and very humane. They don't make leaders like Nehru these days. What we have is a bunch of self serving nincompoops and criminals. It is said that we get the leaders we deserve. But even we don't deserve our current bunch of political masters.
The story has some management angles. The Manager should be empathetic and in touch with the ground reality. He need to be empathetic and use what he can to gain the confidence of even the inconsequential. He need to demonstrate his leadership qualities in every single occassion, however irrelevant it may seem to him.
Also, more often that not, we baulk at taking additional work (the 2 litres of milk) citing that we are up to our neck with our current tasks and hence miss an opportunity to stretch ourselves and prove a point to others. There is always that little bit extra inside all of us to do something special.
Ask yourself everyday, "Did I drink that 2 litres of milk?"
Friday, 11 January 2008
Create More Winners in Your Organization
We have come across many organization that have instituted 'Best Employee' or 'Best Sales Person' awards . These awards are normally given during the Annual Day Celebrations, where the Award Winning Employee is invited to go on stage, a citation is read and the award given by the CEO.
The wisdom behind this is, the Award will serve as an inspiration for other employees to emulate in the succeeding years.
Ummm.......in concept this looks alright. Till we look at the flip side. Most organizations, who have instituted this award, have more than 100 employees, if not hundreds. For the sake of argument, let us stick to 100. When, on an Annual Day, you single out one best employee amongst the 100, you assume you are creating one winner. But in effect, you are creating 99 losers. And you don't want that to happen.
A better way is to institute a series of awards based on various aspects of a job and give it away to a lot of people. For example, apart from the Best Employee, you can have Best Salesperson, Best Secretary, Best Driver, Most Punctual Employee, Employee who had the Best Attendance record, Best Communicator, Most Co-operative Employee, Most Organized Employee, Employee with the Most Initiative, Most Improved Employee, Employee with the Best Safety Record, Best New Comer...................the list can be endless. All it requires is a bit of creativity.
You might say this devalues the Award. It does not. What it does is, it creates, say, 25 winners than one winner.
Is it not worth it? Will it not boost the morale of the Staff? Will it not have an impact on the Organizational Culture?
Just think about this if you are the head of an Organization or even the Head of a Department.
The wisdom behind this is, the Award will serve as an inspiration for other employees to emulate in the succeeding years.
Ummm.......in concept this looks alright. Till we look at the flip side. Most organizations, who have instituted this award, have more than 100 employees, if not hundreds. For the sake of argument, let us stick to 100. When, on an Annual Day, you single out one best employee amongst the 100, you assume you are creating one winner. But in effect, you are creating 99 losers. And you don't want that to happen.
A better way is to institute a series of awards based on various aspects of a job and give it away to a lot of people. For example, apart from the Best Employee, you can have Best Salesperson, Best Secretary, Best Driver, Most Punctual Employee, Employee who had the Best Attendance record, Best Communicator, Most Co-operative Employee, Most Organized Employee, Employee with the Most Initiative, Most Improved Employee, Employee with the Best Safety Record, Best New Comer...................the list can be endless. All it requires is a bit of creativity.
You might say this devalues the Award. It does not. What it does is, it creates, say, 25 winners than one winner.
Is it not worth it? Will it not boost the morale of the Staff? Will it not have an impact on the Organizational Culture?
Just think about this if you are the head of an Organization or even the Head of a Department.
Wednesday, 9 January 2008
Do you want a bed by the window?
During a visit to the mental asylum, a visitor asked the Director what the criterion was which defined whether or not a patient should be institutionalized.
"Well," said the Director, "we fill up a bathtub, then we offer a teaspoon, a teacup and a bucket to the patient and ask him or her to empty the bathtub."
"Oh, I understand," said the visitor. "A normal person would use the bucket because it's bigger than the spoon or the teacup."
..................................................................................................................................
...................................................................................................................................
"No." said the Director, "A normal person would pull the plug, and by the way, what is your preference? A bed near the window or in the middle of the room?".
The above was a gem I read in the Web sometime back
"Well," said the Director, "we fill up a bathtub, then we offer a teaspoon, a teacup and a bucket to the patient and ask him or her to empty the bathtub."
"Oh, I understand," said the visitor. "A normal person would use the bucket because it's bigger than the spoon or the teacup."
..................................................................................................................................
...................................................................................................................................
"No." said the Director, "A normal person would pull the plug, and by the way, what is your preference? A bed near the window or in the middle of the room?".
The above was a gem I read in the Web sometime back
Pride goes before a Fall
Ever had the experience of looking like an absolute idiot?
I quit a lucrative job with Hindustan Petroleum Corporation and became a franchisee of NIIT in Thanjavur, Tamil Nadu. The year was 1994. Thanjavur was an extended village those days, albeit a District Headquarters. Though my mother tongue was tamil (if you can call Palghat Tamil that), my command over the language was quite poor as I was more fluent in Malayalam (having brought up in Kerala) and English.
As an entrepreneur, though I had an Academic Counsellor ( the name is a misnomer, the job was purely that of a salesperson), I used to do a fair bit of Counselling myself (hey! it was my own business after all) when prospective students came to join NIIT or to enquire about the courses we offered (for those who don't know, NIIT is an IT Training Major).
One day a boy who was doing his under graduation walked in at 6.30 pm to enquire about the course. I switched on my charm and gave him a sales pitch about the virtues of Computers, its future, job prospects, blah blah blah in English for nearly 45 minutes. The boy sat in front of me nodding his head and apparently taking in whatever I was dishing out. I laid down one USP after another, one benefit after another. Finally, I ran out of steam and asked him whether he would like to enrol. He said yes and went on to join the 3 year GNIIT programme. Over the period of next 15 days the boy, Ramkumar, brought 7 or 8 of his friends to enrol.
As time passed by Ramkumar, who was one of my better students was identified as a prospective employee was recruited as a Machine Room Coordinator and went on to serve me loyally and professionally.
While training the Academic Counsellors and my other staff, I used to brag about how effective my Counselling or Marketing skills were by pointing out the example of impressing Ramkumar when he came for enquiry which resulted in us getting 9 students.
One day in late 1997, I was bragging for the umpteenth time, turned to Ramkumar and asked him pompously " Ramkumar, tell these new staff all the benefits I explained when you came to join and how it assisted you in making a decision".
Ramkumar looked at me sadly and said (by then he has acquired sufficient seniority to tell the truth) " Sir, to tell the truth, I did not understand a single word you said for 45 minutes when I came to enrol"
Flabbergasted, I asked "But why?"
"Sir, you see, in 1994, I did not know English at all having done my schooling in Tamil Medium"
"But, then why and how did you enrol", I spluttered
"Sir, I joined because it was NIIT. I had heard about it and always wanted to study in NIIT"
All this in front of my current staff and the new staff. I have read in Ramayana that Seetha invoked her mother Earth to break open where she was standing and take her down. That was precisely how I felt then. Hoped I will be swallowed by the Earth. For I was never embarrassed as much in my life before and felt like an absolute cuckoo.
I learned an important lesson in Communication that day. Understand your recipient, his limitations and above all for god's sake never assume anything.
I quit a lucrative job with Hindustan Petroleum Corporation and became a franchisee of NIIT in Thanjavur, Tamil Nadu. The year was 1994. Thanjavur was an extended village those days, albeit a District Headquarters. Though my mother tongue was tamil (if you can call Palghat Tamil that), my command over the language was quite poor as I was more fluent in Malayalam (having brought up in Kerala) and English.
As an entrepreneur, though I had an Academic Counsellor ( the name is a misnomer, the job was purely that of a salesperson), I used to do a fair bit of Counselling myself (hey! it was my own business after all) when prospective students came to join NIIT or to enquire about the courses we offered (for those who don't know, NIIT is an IT Training Major).
One day a boy who was doing his under graduation walked in at 6.30 pm to enquire about the course. I switched on my charm and gave him a sales pitch about the virtues of Computers, its future, job prospects, blah blah blah in English for nearly 45 minutes. The boy sat in front of me nodding his head and apparently taking in whatever I was dishing out. I laid down one USP after another, one benefit after another. Finally, I ran out of steam and asked him whether he would like to enrol. He said yes and went on to join the 3 year GNIIT programme. Over the period of next 15 days the boy, Ramkumar, brought 7 or 8 of his friends to enrol.
As time passed by Ramkumar, who was one of my better students was identified as a prospective employee was recruited as a Machine Room Coordinator and went on to serve me loyally and professionally.
While training the Academic Counsellors and my other staff, I used to brag about how effective my Counselling or Marketing skills were by pointing out the example of impressing Ramkumar when he came for enquiry which resulted in us getting 9 students.
One day in late 1997, I was bragging for the umpteenth time, turned to Ramkumar and asked him pompously " Ramkumar, tell these new staff all the benefits I explained when you came to join and how it assisted you in making a decision".
Ramkumar looked at me sadly and said (by then he has acquired sufficient seniority to tell the truth) " Sir, to tell the truth, I did not understand a single word you said for 45 minutes when I came to enrol"
Flabbergasted, I asked "But why?"
"Sir, you see, in 1994, I did not know English at all having done my schooling in Tamil Medium"
"But, then why and how did you enrol", I spluttered
"Sir, I joined because it was NIIT. I had heard about it and always wanted to study in NIIT"
All this in front of my current staff and the new staff. I have read in Ramayana that Seetha invoked her mother Earth to break open where she was standing and take her down. That was precisely how I felt then. Hoped I will be swallowed by the Earth. For I was never embarrassed as much in my life before and felt like an absolute cuckoo.
I learned an important lesson in Communication that day. Understand your recipient, his limitations and above all for god's sake never assume anything.
Tuesday, 8 January 2008
Man or Machine?
"Bill Gates, who built his fortune equipping the personal computer, predicts that the keyboard and mouse will soon become relics.
Gates said the "first digital decade", centred on the keyboard and the mouse, was over. "The second digital decade will be more focused on connecting people," he said, predicting it would also feature progress in training machines to react as people do, with "natural user interfaces" responsive to speech and touch.
The founder of Microsoft Corp spelt out a vision of a “digital decade” of telephones, televisions and cars that respond to voice and touch. “This is the area that people underestimate the most,” he said. Gates predicted that high-definition video “will be everywhere” from TV to wall projections to screens built into desks. Users will be able to roam in 3-D through virtual worlds when they shop or interact online with friends. Devices will connect seamlessly so that data is transferred automatically from computer to mobile phone, for instance. “When you take a photo, it will show up where you want it to show up,” he said. "
Amongst all these technological revolution, are we forgetting the good old Human Being, his aspirations, feelings? I wonder!!
Gates said the "first digital decade", centred on the keyboard and the mouse, was over. "The second digital decade will be more focused on connecting people," he said, predicting it would also feature progress in training machines to react as people do, with "natural user interfaces" responsive to speech and touch.
The founder of Microsoft Corp spelt out a vision of a “digital decade” of telephones, televisions and cars that respond to voice and touch. “This is the area that people underestimate the most,” he said. Gates predicted that high-definition video “will be everywhere” from TV to wall projections to screens built into desks. Users will be able to roam in 3-D through virtual worlds when they shop or interact online with friends. Devices will connect seamlessly so that data is transferred automatically from computer to mobile phone, for instance. “When you take a photo, it will show up where you want it to show up,” he said. "
Amongst all these technological revolution, are we forgetting the good old Human Being, his aspirations, feelings? I wonder!!
Monday, 7 January 2008
Do we have enough lamp posts to hang the corrupt?
The tragedy of India is not that it does not have sufficient funds to eradicate poverty. There are schemes and schemes for the poor with allocations running to thousands of crores. Every successive Government has come out with more schemes for the poor keeping an eye on the vote bank. However, the delivery mechanism is so poor, implementation tardy and leakages very high that only 15 paise of every rupee spent by the Government actually reaches the intended recipient. What happens to the balance? Well I don't have to elaborate.
UPA Government launched the Rs 12,000 crores National Rural Employment Guarantee Scheme couple of years back. Under this, households in 200 of the poorest districts in the country are promised, by law, to a maximum of 100 days employment at wages not below Rs 60 per day. The government has been bragging its success through advertisements titled "building a Republic of Work.
Like most of its predecessors, this scheme is a spectacular failure. Barely 3.2 per cent of the registered households could avail of 100 days of employment in one year — between February 2006 and March 2007. And the average employment provided under the scheme was just 18 days.
This are not my facts but this startling revelation comes after a six-month performance audit conducted in the field under the aegis of the Comptroller & Auditor General of the NREGS in 513 Gram Panchayats spread across 68 randomly selected districts from 26 states. The report highlights a slew of instances from all states of alleged corruption, inefficiency, diversion and misutilisation of funds and unreliable figures.
The audit has identified the key reasons behind the mismanagement: deficient financial management and tracking system, “inadequate” and “delayed” planning of the works, absence of authenticated books for records, workers being paid wages lower than the minimum wage rate. Lack of “adequate administrative and technical manpower” at the local level is also marked as one of the main deficiencies affecting the implementation of the programme.
The most horrifying part is that Government, instead of improving the delivery mechanism and ensuring 100% compliance, has already added an additional 130 districts last year and has ambitious plans in the election year to extend this Scheme across the country.
The allocation for this scheme comes from our hard earned money - what we pay as taxes. Why should we subsidise corruption?
And amongst all these, the poor languish, shivering in the cold wave that is blowing across North India and not knowing where the next meal is coming from.
We need to hang the people on lamp posts who deny the money that is meant for the poorest of poor. But then as someone said, we don't have enough lamp posts in the country to implement this plan of mass hanging.
UPA Government launched the Rs 12,000 crores National Rural Employment Guarantee Scheme couple of years back. Under this, households in 200 of the poorest districts in the country are promised, by law, to a maximum of 100 days employment at wages not below Rs 60 per day. The government has been bragging its success through advertisements titled "building a Republic of Work.
Like most of its predecessors, this scheme is a spectacular failure. Barely 3.2 per cent of the registered households could avail of 100 days of employment in one year — between February 2006 and March 2007. And the average employment provided under the scheme was just 18 days.
This are not my facts but this startling revelation comes after a six-month performance audit conducted in the field under the aegis of the Comptroller & Auditor General of the NREGS in 513 Gram Panchayats spread across 68 randomly selected districts from 26 states. The report highlights a slew of instances from all states of alleged corruption, inefficiency, diversion and misutilisation of funds and unreliable figures.
The audit has identified the key reasons behind the mismanagement: deficient financial management and tracking system, “inadequate” and “delayed” planning of the works, absence of authenticated books for records, workers being paid wages lower than the minimum wage rate. Lack of “adequate administrative and technical manpower” at the local level is also marked as one of the main deficiencies affecting the implementation of the programme.
The most horrifying part is that Government, instead of improving the delivery mechanism and ensuring 100% compliance, has already added an additional 130 districts last year and has ambitious plans in the election year to extend this Scheme across the country.
The allocation for this scheme comes from our hard earned money - what we pay as taxes. Why should we subsidise corruption?
And amongst all these, the poor languish, shivering in the cold wave that is blowing across North India and not knowing where the next meal is coming from.
We need to hang the people on lamp posts who deny the money that is meant for the poorest of poor. But then as someone said, we don't have enough lamp posts in the country to implement this plan of mass hanging.
Saturday, 5 January 2008
Of leaves and cowdung
My readers might ask why I am reverting to the past to find examples of instances that describes a management concept. The more I look at things in a detached, philosophical way, the more I am amazed at how our ancestors were actually practicing most of the concepts that we talk about today and it is almost as if we are reinventing the wheel.
A stray remark by a student of mine acted as a trigger to this post. He works for the Petrochemical Industry and was concerned that one of their products, the ubiquitous black garbage bag, might be banned through a Governmental legislation in Kuwait. The reason being it bio non degradable.
In an era where grave concerns exist about global warming, environmental pollution and general lowering of quality of air we breath or the water we drink, I could not but look back at my childhood and smile at the wisdom of my forefathers who were more in sync with the environment.
My grandparents used plantain leaves while eating or used a small spoon made of Jack fruit tree leaves to drink porridge. Both readily available in the backyard. All you needed was a small knife to cut the leaves and exactly 10 seconds to manufacture the spoon. They were also easy to dispose as they were thrown under a coconut tree and the bio degradable leaves served as a manure for the trees.
When we were travelling, grandmother will first dry the leaves and pack the curd rice, lemon rice or tamarind rice in the leaf and tie it with thread made out of plantain stem. Not for her the plastic bags or even the cumbersome tiffin boxes. The dry leaves ensured the freshness of the food and it was easy to dispose off the used leaves, which were, well you know, bio degradable and Eco friendly.
One of the enduring memories of my school and college days were the numerous train journeys I made to Delhi where my brother was working. On the third morning, the train will chug into Agra Station. Icy winds will be blowing and then you have the welcome sight of the tea wallah of Agra who will serve hot tea on a 'kulhar' - an earthen tumbler. The predecessor of the use and throw plastic cup but with one advantage - kulhar is extremely Eco friendly and very much bio degradable.
Talking of Kulhar one is reminded of the taste of the water stored in an earthen pot and the small earthen lamps used to be lit in dozens during Karthigai festival. I have always marvelled at the artistic skills of the potter whose hands used to create earthen items of various shapes and sizes from clay. He lived in poverty but never compromised on his craftsmanship. How about the weaver, who was instrumental in creating hand loom cloth made of cotton? Cotton hand loom clothes are most comfortable to wear and are extremely Eco friendly unlike their polyester sibling.
Grandfather always had at least 3 cows. Apart from giving fresh milk, the cow dung was used for various purposes - creating an quick artificial flooring to manure for the vegetable garden.
I can go on and on. People those days were living in harmony with the nature and took sufficient care to ensure they did not disturb the balance of nature. But as we 'progressed', we have mindlessly destroyed all the good practices one by one and are standing on the verge of a crisis of international proportions. Environmental pollution due to plastic bags, Styrofoam cups, obsolete computer motherboards, printer cartridges, industrial waste and other bio non degradable materials has become a genie that has been uncorked. No one knows how to put the genie back in the bottle. Turning the clock back by a few years could help perhaps. Where oh Where have the wisdom of the forefathers gone?
A stray remark by a student of mine acted as a trigger to this post. He works for the Petrochemical Industry and was concerned that one of their products, the ubiquitous black garbage bag, might be banned through a Governmental legislation in Kuwait. The reason being it bio non degradable.
In an era where grave concerns exist about global warming, environmental pollution and general lowering of quality of air we breath or the water we drink, I could not but look back at my childhood and smile at the wisdom of my forefathers who were more in sync with the environment.
My grandparents used plantain leaves while eating or used a small spoon made of Jack fruit tree leaves to drink porridge. Both readily available in the backyard. All you needed was a small knife to cut the leaves and exactly 10 seconds to manufacture the spoon. They were also easy to dispose as they were thrown under a coconut tree and the bio degradable leaves served as a manure for the trees.
When we were travelling, grandmother will first dry the leaves and pack the curd rice, lemon rice or tamarind rice in the leaf and tie it with thread made out of plantain stem. Not for her the plastic bags or even the cumbersome tiffin boxes. The dry leaves ensured the freshness of the food and it was easy to dispose off the used leaves, which were, well you know, bio degradable and Eco friendly.
One of the enduring memories of my school and college days were the numerous train journeys I made to Delhi where my brother was working. On the third morning, the train will chug into Agra Station. Icy winds will be blowing and then you have the welcome sight of the tea wallah of Agra who will serve hot tea on a 'kulhar' - an earthen tumbler. The predecessor of the use and throw plastic cup but with one advantage - kulhar is extremely Eco friendly and very much bio degradable.
Talking of Kulhar one is reminded of the taste of the water stored in an earthen pot and the small earthen lamps used to be lit in dozens during Karthigai festival. I have always marvelled at the artistic skills of the potter whose hands used to create earthen items of various shapes and sizes from clay. He lived in poverty but never compromised on his craftsmanship. How about the weaver, who was instrumental in creating hand loom cloth made of cotton? Cotton hand loom clothes are most comfortable to wear and are extremely Eco friendly unlike their polyester sibling.
Grandfather always had at least 3 cows. Apart from giving fresh milk, the cow dung was used for various purposes - creating an quick artificial flooring to manure for the vegetable garden.
I can go on and on. People those days were living in harmony with the nature and took sufficient care to ensure they did not disturb the balance of nature. But as we 'progressed', we have mindlessly destroyed all the good practices one by one and are standing on the verge of a crisis of international proportions. Environmental pollution due to plastic bags, Styrofoam cups, obsolete computer motherboards, printer cartridges, industrial waste and other bio non degradable materials has become a genie that has been uncorked. No one knows how to put the genie back in the bottle. Turning the clock back by a few years could help perhaps. Where oh Where have the wisdom of the forefathers gone?
Thursday, 3 January 2008
Commodity to Branding - Is it beneficial?
Till mid 1980's, the process of grocery purchase for the house was different. Father, on consultation with the mother, will say out aloud the items and quantity to be purchased and it was my duty to write it down as a list dutifully. The list was then taken to the regular grocery shop and left with him. It takes an hour for him to pack the items we required and keep it ready. Remember, in those days, everything was a commodity and the grocer has to physically weigh the quantity required, then pack it in a newspaper as a bundle (recycling of used paper, very Eco friendly) and tie it with a string. We had to give him some vessels for him to measure out the quantity of oil which came to him in bulk quantity packed in tins. The bread was purchased fresh from the bakery and was packed in paper in front of our eyes. No one even worried about adulteration (though it was prevalent) or quality. But if you buy from a reputed grocery shop, you were assured of the quality. Branding was unheard of. The rice went by the generic name of Ponni boiled, Ponni raw, Matta boiled etc.
First sign that things were changing came in mid 1980's. The salt was sold as a commodity and cost about Rs 0.25 per kg. Tata came out with their iodized salt and advertised heavily. My father, who was always a sucker for any advertised products (he was a marketing man's dream), was on of the early adopters. I, who was just out of MBA, argued vehemently against paying 10 times for an item as common as common salt, for the cost of 1kg of Tata iodised salt was Rs 2.50. By any stretch of imagination or marketing logic, the product should have failed as there was no value addition, other than being iodized whereby preventing Goitre (not that people had a ghost of a chance of getting it), that justified a 10 fold increase. But, Tata being Tata, got away with it. To me, that was the beginning of popularising branding in grocery products. Till then, the branding was aimed at wholesalers and retailers but never towards the end users.
In two decades, the market has undergone a sea change. Today, we hardly see a commodity being sold. The layouts of the grocery shops have changed. Every single item is packaged and branded. The last bastion fell when the Rice, which was always sold as a commodity, started to be branded. I visited a rice merchant during my last visit to my native place and was surprised to see that he did not have a single unbranded rice in his shop, and he has been in existence for 50 years. I saw different brands, in different package sizes and in different colours. Same is true of oil, bread, jagiri, pappad, sugar, salt, pulses. Milk which was a commodity (remember the milkman who came in a cycle or better still the lady who came with a herd of buffaloes and milked in front of your eyes in Hyderabad?) had long since become a brand with the introduction of packet milk.
On looking around, the only things that remains a commodity are Vegetables, Fruits, Coconut and jasmine flower. Even drinking water is branded. How long will these remain a commodity?
This is not a trip down the memory lane. My point is that we need to evaluate whether this change has resulted in a positive fallout for the customer. Are we assured of the quality? I do not frankly think so. Adulteration is still prevalent. Many argue that there is a consistency in quality. That may be true. But in olden days, when we were buying from the same shop, we were assured of the same consistency. Maybe there is an advantage that we can buy the same brand in most parts of the world. However, one need to understand that packaging and branding has pushed the prices up considerably. Are we getting the value for the additional money paid?
And of course, my old grouse remains. Advent of supermarkets have ensured that we do additional work of picking, carrying and billing which was done earlier by the sales boy. This cost needs to be incorporated. And, finally, there was a personal relationship between the grocer and our family. We used to get good tips on products, their quality and price. There was a transfer of knowledge. All these are gone forever.
Do I have regrets? Maybe. But life moves on and I am not one to carry baggage from the past. Still it pays to critically evaluate the benefits of change
First sign that things were changing came in mid 1980's. The salt was sold as a commodity and cost about Rs 0.25 per kg. Tata came out with their iodized salt and advertised heavily. My father, who was always a sucker for any advertised products (he was a marketing man's dream), was on of the early adopters. I, who was just out of MBA, argued vehemently against paying 10 times for an item as common as common salt, for the cost of 1kg of Tata iodised salt was Rs 2.50. By any stretch of imagination or marketing logic, the product should have failed as there was no value addition, other than being iodized whereby preventing Goitre (not that people had a ghost of a chance of getting it), that justified a 10 fold increase. But, Tata being Tata, got away with it. To me, that was the beginning of popularising branding in grocery products. Till then, the branding was aimed at wholesalers and retailers but never towards the end users.
In two decades, the market has undergone a sea change. Today, we hardly see a commodity being sold. The layouts of the grocery shops have changed. Every single item is packaged and branded. The last bastion fell when the Rice, which was always sold as a commodity, started to be branded. I visited a rice merchant during my last visit to my native place and was surprised to see that he did not have a single unbranded rice in his shop, and he has been in existence for 50 years. I saw different brands, in different package sizes and in different colours. Same is true of oil, bread, jagiri, pappad, sugar, salt, pulses. Milk which was a commodity (remember the milkman who came in a cycle or better still the lady who came with a herd of buffaloes and milked in front of your eyes in Hyderabad?) had long since become a brand with the introduction of packet milk.
On looking around, the only things that remains a commodity are Vegetables, Fruits, Coconut and jasmine flower. Even drinking water is branded. How long will these remain a commodity?
This is not a trip down the memory lane. My point is that we need to evaluate whether this change has resulted in a positive fallout for the customer. Are we assured of the quality? I do not frankly think so. Adulteration is still prevalent. Many argue that there is a consistency in quality. That may be true. But in olden days, when we were buying from the same shop, we were assured of the same consistency. Maybe there is an advantage that we can buy the same brand in most parts of the world. However, one need to understand that packaging and branding has pushed the prices up considerably. Are we getting the value for the additional money paid?
And of course, my old grouse remains. Advent of supermarkets have ensured that we do additional work of picking, carrying and billing which was done earlier by the sales boy. This cost needs to be incorporated. And, finally, there was a personal relationship between the grocer and our family. We used to get good tips on products, their quality and price. There was a transfer of knowledge. All these are gone forever.
Do I have regrets? Maybe. But life moves on and I am not one to carry baggage from the past. Still it pays to critically evaluate the benefits of change
Wednesday, 2 January 2008
Crystal Ball gazing 2008
Beginning of an year is ideal for crystal ball gazing. Let me make some predictions.
The political comatose situation in the Centre is likely to continue. Though the Gujarat results have ensured that the chances of a General Election in 2008 is almost zero. Congress party will try to retain power by making any compromise and the CPI(M) who can pull down the Government is wary of doing so in view of the shaky ground they find themselves in currently in West Bengal and Kerala, only place where they have a presence. Other coalition partners are totally against a General Election. Congress will hope against hope to perform better in the Assembly elections due in BJP ruled states Madhya Pradesh and Rajastan to give them some momentum leading to General Election in early 2009. Dr.Manmohan Singh is a good man. But good men don't make great leaders. I would any day prefer a scoundrel who is a good leader and administrator to a spineless good man. He should have quit long ago if he had any decency left rather than allowing himself to be ridiculed by his party and every other coalition partners. I don't think even the cleaning staff in his office shows any respect for him. All the while, the power behind the throne, Sonia Gandhi, hides behind a barricade refusing to give press or TV interviews but wielding enormous Authority without any Accountability. BJP is in disarray and despite the victory in Gujarat and HP, they have failed totally as a responsible opposition party. We might however see a realignment of forces leading to the General election at local and national levels. The strength and number of alliance partners will decide who will rule India for the next five years. Not a pleasant scenario politically. Cry my beloved country!
Economically, this is not going to be great. With the government refusing to take hard steps, the drift that started a year back is likely to continue. With the world poised for a recession, the impact will be felt on Indian economy. We may not get the high 9% GDP Growth rate. Appreciating rupee, near stagnant growth in Agriculture, drop in Industrial production, continued subsidies and downtrend in exports will ensure that we end up with a 7% Growth. With inflation likely to be in the range of 5-6% (forget what the government claims, the ground reality is that we have 5% inflation, if not more), the Real GDP growth rate is likely to be 1-2% which is worrisome. We can expect more social sector spending, more sops and in all likelihood another Pay Commission award to government employees. The last will fuel inflation. As will high energy prices. Government has been refusing to take hard decisions on the pricing of the petroleum products, but this cant be put off forever. Higher fuel prices is will increase inflationary pressures. Rupee is expected to maintain its position and is likely to be in the bandwidth of Rs 38 - 41 during the year. Real Estate prices will remain stagnant and stock markets might stabilize at 18000-21000 as all the above factors will make investors cautious. Gold will rule roost and may even appreciate by 10% mainly as a result of weak dollar. Good time to invest in yellow metal. Decisions of SEZs likely to be put off but there could be some spurt in infrastructure projects so that the Government can show some visible progress.
Internal security will continue to be a cause for worry as the Government has virtually slept through the past 4 years hardly putting any concrete systems in place to counter terrorism. Borders will continue to be sensitive with Pakistan on a transition phase, Bangladesh unstable, Nepal shaky, China a nuisance and Srilanka on a razor edge. Again as a nation, we are paying the price for being meek with our neighbours. With certain type of people, only might talks not diplomacy.
Energy front will continue to suffer from the lack of foresight of the successive governments. Nuclear deal is all but dead, with both Indian and US governments more than happy to pass on the buck to the next governments. We are not likely to meet the targets for Power generation capacity enhancement in 2008. This will adversely affect our growth in the long run. We need energy security and the crying need of the hour is some out of the box thinking.
Not much success can be expected on the sports front. 2008 is an Olympics year. The drama of a large contingent going to Beijing and returning empty handed is likely to be repeated. Cricket team does not evoke much confident and we will have to be happy with an occasional victory for Sania Mirza, who is never going to crack the top 10. Only saving grace could be the Chess Players and it is time someone recognized Vishy Anand and gave him a Bharat Ratna. The guy is the most underrated sportsperson in India and the only one who has brought laurels to the country consistently.
Environmental degradation, crowded cities, breaking down of civic infrastructure, continued poverty of the rural people, more industries, burgeoning middle class, growing consumption economy, status quo in eduction - all these are likely to continue.
It is a small miracle how we progress inspite of the system, but we do.
Mera Bharat Mahan!
The political comatose situation in the Centre is likely to continue. Though the Gujarat results have ensured that the chances of a General Election in 2008 is almost zero. Congress party will try to retain power by making any compromise and the CPI(M) who can pull down the Government is wary of doing so in view of the shaky ground they find themselves in currently in West Bengal and Kerala, only place where they have a presence. Other coalition partners are totally against a General Election. Congress will hope against hope to perform better in the Assembly elections due in BJP ruled states Madhya Pradesh and Rajastan to give them some momentum leading to General Election in early 2009. Dr.Manmohan Singh is a good man. But good men don't make great leaders. I would any day prefer a scoundrel who is a good leader and administrator to a spineless good man. He should have quit long ago if he had any decency left rather than allowing himself to be ridiculed by his party and every other coalition partners. I don't think even the cleaning staff in his office shows any respect for him. All the while, the power behind the throne, Sonia Gandhi, hides behind a barricade refusing to give press or TV interviews but wielding enormous Authority without any Accountability. BJP is in disarray and despite the victory in Gujarat and HP, they have failed totally as a responsible opposition party. We might however see a realignment of forces leading to the General election at local and national levels. The strength and number of alliance partners will decide who will rule India for the next five years. Not a pleasant scenario politically. Cry my beloved country!
Economically, this is not going to be great. With the government refusing to take hard steps, the drift that started a year back is likely to continue. With the world poised for a recession, the impact will be felt on Indian economy. We may not get the high 9% GDP Growth rate. Appreciating rupee, near stagnant growth in Agriculture, drop in Industrial production, continued subsidies and downtrend in exports will ensure that we end up with a 7% Growth. With inflation likely to be in the range of 5-6% (forget what the government claims, the ground reality is that we have 5% inflation, if not more), the Real GDP growth rate is likely to be 1-2% which is worrisome. We can expect more social sector spending, more sops and in all likelihood another Pay Commission award to government employees. The last will fuel inflation. As will high energy prices. Government has been refusing to take hard decisions on the pricing of the petroleum products, but this cant be put off forever. Higher fuel prices is will increase inflationary pressures. Rupee is expected to maintain its position and is likely to be in the bandwidth of Rs 38 - 41 during the year. Real Estate prices will remain stagnant and stock markets might stabilize at 18000-21000 as all the above factors will make investors cautious. Gold will rule roost and may even appreciate by 10% mainly as a result of weak dollar. Good time to invest in yellow metal. Decisions of SEZs likely to be put off but there could be some spurt in infrastructure projects so that the Government can show some visible progress.
Internal security will continue to be a cause for worry as the Government has virtually slept through the past 4 years hardly putting any concrete systems in place to counter terrorism. Borders will continue to be sensitive with Pakistan on a transition phase, Bangladesh unstable, Nepal shaky, China a nuisance and Srilanka on a razor edge. Again as a nation, we are paying the price for being meek with our neighbours. With certain type of people, only might talks not diplomacy.
Energy front will continue to suffer from the lack of foresight of the successive governments. Nuclear deal is all but dead, with both Indian and US governments more than happy to pass on the buck to the next governments. We are not likely to meet the targets for Power generation capacity enhancement in 2008. This will adversely affect our growth in the long run. We need energy security and the crying need of the hour is some out of the box thinking.
Not much success can be expected on the sports front. 2008 is an Olympics year. The drama of a large contingent going to Beijing and returning empty handed is likely to be repeated. Cricket team does not evoke much confident and we will have to be happy with an occasional victory for Sania Mirza, who is never going to crack the top 10. Only saving grace could be the Chess Players and it is time someone recognized Vishy Anand and gave him a Bharat Ratna. The guy is the most underrated sportsperson in India and the only one who has brought laurels to the country consistently.
Environmental degradation, crowded cities, breaking down of civic infrastructure, continued poverty of the rural people, more industries, burgeoning middle class, growing consumption economy, status quo in eduction - all these are likely to continue.
It is a small miracle how we progress inspite of the system, but we do.
Mera Bharat Mahan!
Tuesday, 1 January 2008
Asathoma Sath Gamaya
"ASATHOMA SATH GAMAYA
THAMASOMA JYOTHIR GAMAYA
MRUTHYORMA AMRUTHAM GAMAYA
OHM! SANTHI SANTHI SANTHI"
This prayer invokes the God to take us from,
Untruth to Truth
Darkness (ignorance) to Light (knowledge)
Death to Immortality
And let there be Peace, Peace, Peace!
Here is wishing for Peace in the New Year
THAMASOMA JYOTHIR GAMAYA
MRUTHYORMA AMRUTHAM GAMAYA
OHM! SANTHI SANTHI SANTHI"
This prayer invokes the God to take us from,
Untruth to Truth
Darkness (ignorance) to Light (knowledge)
Death to Immortality
And let there be Peace, Peace, Peace!
Here is wishing for Peace in the New Year
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