Art & Science of Management

Who needs CEOs?

2006-11-25T13:20:00.000+08:00

Wondering what am referring to? Nope…it’s not what you think! Its Chief Ethics Officer and not Chief Executive Officer. Does having a CE(thics)O really help companies to walk the talk when it comes to good governance & ethical practice? Hannah Clark of FORBES shares her view in this brilliant article titled “Chief Ethics Officers: Who Needs Them?” I love it when she says “Chief ethics and compliance officers have become trendy in recent years, but some experts fear they act mainly as window dressing” – so true isn’t it?

Karma Capitalism!

2006-11-08T19:58:00.000+08:00

I was thoroughly inspired by reading this BusinessWeek online article recently.

To cut the long story short, 3 Cs to Business Success as laid out by Swami Parthasarathy are Concentration, Consistency and Cooperation

An interesting and noteworthy statistic: About 10% of the professors at places such as Harvard Business School, Northwestern's Kellogg School of Business, and the University of Michigan's Ross School of Business are of Indian descent - a far higher percentage than other ethnic groups.

Prof.Vijay Govindarajan (VG) says that his work is inspired by the concept of karma, which holds that future lives are partly determined by current actions. "Karma is a principle of action. Innovation is about creating change, not reacting to change”.

Do read the article in full by clicking here. I hope you enjoy reading…

Jeff Skill(ing!)

2006-10-24T18:43:00.000+08:00

Wondering why I titled my post that way??? Well, because all said & done, JS (former CEO of Enron Corpn) was a highly skilled man – more for the wrong reasons than right…after all, he received his B.S. in applied science at Southern Methodist University (1975), where he was a member of Beta Theta Pi and decided to get into HBS to pursue his MBA, where he was once asked by the interviewer "Are you smart?" – to which he famously replied, "I'm f****g smart"…now you really know how smart this guy could get…I really wonder why such a f****g smart guy would need an Ivy league MBA education!

Well, after graduating in the top 5% of his class from Harvard, he set sail to join McKinsey & Company as a consultant (not too sure how smart he was back then at McKinsey) in the energy & chemical consulting practice and then began working with Enron (well, I guess McKinsey & Company could have put its client’s interest first in this case!) way back in ’87, helping the company create a forward market (its basically a OTC financial market in energy contracts for future delivery) in natural gas. Kenneth Lay was obviously impressed and hired JS to become the Chairman & CEO of Enron in ’91 (I guess he was turning out to be a very creative CEO trying to create off-balance-sheet transactions!)

Well, the last few years have not been that good for Mr. Skilling – he was indicted on 35 counts of fraud, insider trading, and other crimes related to the collapse of Enron and pleaded not guilty to all charges. The main reason for his arrest was his probable knowledge of the fraudulent (creative!) transactions within Enron. It’s astonishing to note that Mr.Skilling spent close to $40 million in preparation for the trial, at least $23 million of which going to his defense lawyers' retainer…no wonder as the old adage goes “UK is made of accountants and USA is made of lawyers”

On May 25, 2006 Mr. Skilling was found guilty on 19 counts of conspiracy, fraud, false statements and insider trading and yesterday, Mr. Skilling was sentenced to 24 years in prison and fined $45 million for his role in the collapse of Enron. He plans to appeal (skillfully, I suppose!). Good Luck with your skills Mr.Skilling!

Tough Choices by Carly Fiorina

2006-10-10T12:13:00.000+08:00

I recently read this FORTUNE article based on an interview by David Kirkpatrick with Carly Fiorina and was taken aback to read a few remarks that she had given on HP & its leadership…

Her remarks about…

The recent HP scandal - "Forget the legality. Let's go back to character, judgment, ethics, perspective. I think there is an impact on the Hewlett-Packard reputation, and I think it's very sad."

Her successor Mark Hurd - "I think to call the last 18 months a turnaround is frankly foolish. That's not to take anything away from what Mark has done... Certainly I agreed with his decision to continue to cut costs. It was what I was planning to do." She says that "clearly" HP is on the same course she charted when she was CEO.

HP - "Everybody at HP focused on incrementalism." "HP had become a bureaucracy." "We had 87 different product lines that never talked to each other. This was not a customer-focused business."

I am just puzzled with her comments on HP!

My questions are…Who created an incrementalistic approach / culture at HP? Who shaped the bureaucracy? Who created 87 different product lines with china-walls? Who or what was the reason for HP not being customer centric?

I BELIEVE THE ANSWER TO ALL THE ABOVE QUESTIONS IS LACK OF GOOD ‘LEADERSHIP’ AND ‘CORPORATE GOVERNANCE’... as I always say “Bottleneck is always at the top of the bottle” – Well, anyone cares to disagree?

"Numero Uno" Nooyi

2006-10-03T12:12:00.000+08:00

FORTUNE magazine releases its 2006 WOMEN POWER list i.e. 50 most powerful women in business (Ofcourse, it’s an annual ranking of only America’s leading businesswomen). The best thing is that Ms.Indra Nooyi (CEO of Pepsi w.e.f. Oct 01st) has already been ranked numero-uno!

Performance vs. Position

2006-09-20T10:51:00.000+08:00

This is really a wonderful joke that enlightens the difference between Performance and Position...

A priest dies and is waiting in line at the Pearly Gates. Ahead of him is a guy who's dressed in sunglasses, a loud shirt, leather jacket and jeans. Saint Peter addresses him, "Who are you, so that I may know whether or not to admit you into the Kingdom of Heaven?"

The guy replies, "I'm Joe Cohen, taxi driver, from New York."

Saint Peter consults his list. He smiles and says to the taxi driver, "Take this silken robe and golden staff and enter the Kingdom of Heaven."

Now it's the priest's turn. He stands erect and booms out, "I am the Right Reverend Joseph Snow, pastor of Saint Mary's for the last forty-three years."

Saint Peter consults his list. He says to the priest, "Take this cotton robe and wooden staff and enter the Kingdom of Heaven."

"Just a minute," says the priest. "That man was a taxi driver. Why does he get a silken robe and golden staff?" "Results," shrugged Saint Peter.

"While you preached, people slept. When he drove, people prayed."

Celebrate Work!?

2006-09-14T13:05:00.000+08:00

I recently read this FORTUNE article titled “Going down the talent drain” and I must say it was definitely interesting and thought provoking. I feel in today’s corporate world, many executives with exceptionally good qualifications who are highly talented & motivated, aggressive with relevant experience (at middle or senior levels) and who have a ‘never-say-die’ attitude tend (have the guts!) to try something new & innovative with small (or smaller) firms rather than end-up with a humongous large dinosaur-type (bureaucratic) organization that neither recognizes all of what is mentioned above nor creates an atmosphere (platform) for grooming & garnering young & hungry talent to manage the next-gen organization.

Instances of high-level career shifts (to small / smaller organizations) in the recent past is nothing new…its been happening for quite a while and many feel that money could be a major measuring rod for such career decisions. Well, in some cases “yes”. However, money is NOT everything when it comes to a few high-level exec shifts. If you look at FORBES TOP-500 pay rankings (2005), you would be amazed to know a few execs who are actually very famous (and have rocked the corporate world) and are indeed high-flying actually rank at the bottom of the charts…Steve Ballmer (Rank: 478), Jeff Bezos (Rank: 495), Steve Jobs (Rank: 496), Eric Schmidt (Rank: 494)…Need more names & numbers???

Now, do you think these execs don’t love their job or don’t want their job because they are ranked at the bottom of the compensation pyramid? The answer is “NO”. They love their job immensely (ofcourse, results speak!) because they ‘Celebrate WORK’ and enjoy every moment at work. The bottom-line is no matter where you are or what you do, just DO IT and ENJOY DOING IT!

Event: CFO Rising Southeast Asia Conference

2006-09-06T12:48:00.000+08:00

Sriram speaks on how Asia’s finance leaders can foster and promote good ethical practice within their organizations at the CFO Rising Southeast Asia Conference on November 16, 2006 at The Oriental, Singapore.

Click here to know more about the program, speakers & registration details and do feel free to pour your thoughts / views / ideas / suggestions on this topic.

NRN Retires…?

2006-09-01T16:55:00.000+08:00

To me “retirement” is not the right word for a man like Mr. Narayana Murthy. The right word would be “rearranging priorities” like what Mr. Bill Gates said when he had charted himself a retirement plan to plot a future course of action in engaging himself with projects that have a social cause & contribution (like education, AIDS awareness, poverty eradication, helping the under-privileged etc…).

Little did Mr. Murthy realize then (about 25 years ago) that he would create a multi-billion dollar (Market Cap = US$23 bio and Annual revenues of US$ 2.15 bio) IT/Consulting enterprise called Infosys Technologies Limited from India (Bangalore to be precise) to show to the rest of the world the NEW “re-incarnated” FACE OF INDIA & INFOSYS – A company with vibrant thoughts, brilliant ideas, empowered execs, superb strategies, flawless execution and above all “customer-focus & relevance”. Kudos to Mr. NRN for having carved himself (and Infosys) a unique position (stature) that every aspiring entrepreneur would like to think of doing.

We all know that Mr. Murthy will continue to be associated with Infosys in an advisory role of a non-exec Chairman and Chief Mentor and am sure he will do a terrific job in his new advisory role (after all…he is the Chairman of the governing body of the Indian Institute of Information Technology, Bangalore and the Indian Institute of Management, Ahmedabad. He is a member of the Board of Overseers of the University of Pennsylvania's Wharton School, Cornell University Board of Trustees, Singapore Management University Board of Trustees, INSEAD's Board of Directors and the Asian Institute of Management's Board of Governors. He is also a member of the Advisory Boards and Councils of the Stanford Graduate School of Business, the Corporate Governance initiative at Harvard Business School, Yale University and the University of Tokyo’s President's Council and many more…)

PS: Do you wanna know what the noted Management Thinker & Thought Leader Mr. Tom Peters had to say about NRN? Click here.

In Search of Apple?!

2006-08-31T19:48:00.000+08:00

It’s indeed a BIG news (dunno whether it’s a signal of sorts!) for the corporate world (atleast the tech-world) to know Dr.Eric Schimdt’s appointment to the Board of Directors of Apple Computers Inc. Steve Jobs was quoted saying “Eric is obviously doing a terrific job as CEO of Google, and we look forward to his contributions as a member of Apple’s board of directors.”

It’s definitely true to learn that Dr. Eric Schmidt has definitely played a pivotal role in re-defining (re-positioning!) GOOGLE from where it was a few years ago to where it is now. It’s truly by any measure a landmark achievement for “Team Google” in the past few years though the challenge remains whether they are able to consistently achieve this (growth, innovation, idea-generation, revenue streams, lucrative business-models, cutting-edge technology, rich talent-scouting et al) in the years to come.

Am sure Schmidt’s appointment to the APPLE board is a blessing in disguise for APPLE Inc and knowing very well that he would immensely contribute (in terms of providing innovative solutions, strategic advice & insights, engaging in thought provoking conversations etc…) to the Board of Apple am a little bit skeptical about the things he would like to bring back (take-aways!) home. Well, only time can tell. Till then, GOOD LUCK to Mr. Schmidt & “Stay Hungry, Stay Foolish” for Steve!

Attn: Credit Card Holders!

2006-08-30T11:46:00.000+08:00

Abe and Esther are flying to Australia for a two-week vacation to celebrate their 40th anniversary. Suddenly, over the public address system, the Captain announces, "Ladies and Gentlemen, I am afraid I have some very bad news. Our engines have ceased functioning and we will attempt an emergency landing. Luckily, I see an uncharted island below us and we should be able to land on the beach. However, the odds are that we may never be rescued and will have to live on the island for the rest of our lives!"
Thanks to the skill of the flight crew, the plane lands safely on the island.

An hour later Abe turns to his wife and asks, "Esther, did we pay our $5,000 DBS pledge check yet?" "No, sweetheart," she responds.

Abe, still shaken from the crash landing, then asks, "Esther, did we pay our American Express card yet?" "Oh, no! I'm sorry. I forgot to send the check," she says. "

One last thing, Esther. Did you remember to send checks for the Visa and MasterCard this month?" he asks. "Oh, forgive me, Abie," begged Esther. "I didn't send that one, either."

Abe grabs her, hugs her and gives her the biggest kiss in 40 years. Esther pulls away and asks him, "So, why did you kiss me?" Abe answers, "They'll find us!"

Outsourcing at its best!

2006-08-21T13:46:00.000+08:00

This is a very nice joke that I recd this a.m. and thought I’d share this with everyone… Happy laughin’!

The Bad News

***Ferrari's F1 Team has fired its entire pit crew***

The announcement reads:

Ferrari has decided to take advantage of India’s high unemployment rate, and hire unemployed Indian youths from Dharavi (a Mumbai suburb slum). The decision to hire them was brought on by a recent documentary on how they were able to remove a set of wheels from a car parked in the street in less than 6 seconds without proper equipment. Ferrari's erstwhile crew took more than 8 seconds with the right equipment.

This was thought to be an excellent yet bold move by the Ferrari management, and, as most races are won & lost in the pits, Ferrari would have an advantage over every other team.

The Good News

However, Ferrari's expectations were exceeded, as during the crew's first practice session; not only were 'da boyz' from Bombay able to change the tyres in under 6 seconds, but within 12 seconds had re-sprayed the car, filed off the chassis number and sold the vehicle over to the Renault Team!!!

Two-tier Boards?

2006-08-20T08:50:00.000+08:00

Companies in most countries like the US, Great Britain & Japan have ‘unitary boards’, in other words, just one board of directors accountable to the shareholders and the CEO often holding the position of the Chairman of the Board. If you may observe, the origins of unitary board lie in the 17th century and early British Joint Stock companies such as the East India Company (the corporate outfit established in India for trading in various commodities worldwide). The need for a unitary board was never under-estimated (and never would be!) but with so many scandals that have recently proliferated in the near past, we begin to question the very purpose for having / incorporating a unitary board model in the present corporate setting.

Another approach to better corporate governance is to have a ‘two-tier’ board structure. Of course, this is not new to a few countries like France, Germany, Finland, Netherlands et al which already boasts of companies with two-tier boards (a supervisory board and a management board), the Management Board being responsible for oversight of management issues and is therefore led by the CEO and the Supervisory Board being responsible for general oversight of the company and of the Management Board.

Indeed, for a two-tier structure to be effective, there has to be a functional relationship between the management & supervisory boards, where the Chairman of the supervisory board plays a pivotal role in the overall governance and administration (effective functioning!) of the corporation and is responsible for ensuring that the two boards work well collectively and in the best interests of the shareholders for ensuring effective & ethical governance.

On a personal note, I wish more companies (and their shareholders’) should opt for a two-tier board structure as an effective governance mechanism as against the customary & conventional unitary board structure for the simple reason that the CEO is always held responsible & accountable to the supervisory board. Well, again…its just a wish!

Boards & Risk Management

2006-08-12T07:42:00.000+08:00

For a while now, people have been talking about Risk Management and the need for having an effective Risk Management System (RMS) in place within the organization that enables a corporate to mitigate (sometimes even predict / prevent!) various business risks. Risk Management Professionals (RMPs) presently are walking through a jagged path in identification of risk, evaluating risk, managing risks and controlling, reviewing & reporting on critical (risky!) issues that are of concern to the business entity. While all this is being done in organizations quite simply, do the Boards realize that they have a huge role to play in the process of Risk Management?

The Turnbull Report provides guidelines to directors on the review of risks and internal controls. An important point to remember is that although the report refers to internal controls & internal control systems, it does not restrict the meaning of controls to financial controls. The report calls for implementation of a risk management system that encompasses business risks, operational risks, financial risks, strategic risks and procedural risks. It would be informative to note that during a survey conducted by LSE & an international law firm on regulatory risk about who managed regulatory risks in their organization, one-third of the respondents said that Board of Directors, about one-third said Managing Director (MD) & the balance of about a third said Risk Management Dept, Internal Audit Dept etc. Personally, I feel the MD cannot singularly do much without the assistance or guidance of the Board of Directors, Risk Management Committee / Internal Audit / Compliance Dept.

Therefore, Boards need to assume responsibility for not just their activities but also for any inactivity in the nature of corporate governance, risk management & compliance (or the lack of it!).

Corporate Humor?!

2006-08-08T15:55:00.000+08:00

New Job interview

Reaching the end of a job interview, the Human Resources Person asked the young Engineer fresh out of MIT, "And what starting salary were you looking for?"
The Engineer said, "In the neighborhood of $75,000 a year, depending on the benefit's package."
The HR Person said, "Well, what would you say to a package of 5-weeks vacation, 14 paid holidays, full medical and dental, company matching retirement fund to 50% of salary, and a company car leased every 2 years, say, a red Corvette?"
The Engineer sat up straight and said, "Wow!!! Are you kidding?"
And the HR Person said, "Certainly, ...but you started it."

Communication catastrophe

Spotted in a toilet of an office: TOILET OUT OF ORDER. PLEASE USE FLOOR BELOW

In an office: WOULD THE PERSON WHO TOOK THE STEP LADDER YESTERDAY PLEASE BRING IT BACK OR FURTHER STEPS WILL BE TAKEN

In an office: AFTER TEA BREAK STAFF SHOULD EMPTY THE TEAPOT AND STAND UPSIDE DOWN ON THE DRAINING BOARD

Seen at a notice board: FOR ANYONE WHO HAS CHILDREN AND DOESN'T KNOW IT, THERE IS A DAY CARE CENTRE ON THE FIRST FLOOR

On a repair shop door: WE CAN REPAIR ANYTHING. (PLEASE KNOCK HARD ON THE DOOR - THE BELL DOESN'T WORK)

Outside a shop selling secondhand items: WE EXCHANGE ANYTHING - BICYCLES, WASHING MACHINES, ETC. WHY NOT BRING YOUR WIFE ALONG AND GET A WONDERFUL BARGAIN?

CFOs get back to strategy?

2006-08-07T23:07:00.000+08:00

I recently read a survey of FTSE500 companies commissioned by Cartesis (a business performance software specialist) which mentioned that nearly 45% of CFOs see strategic planning as their top-priority now, while approx 52% believe that it will become their main concern in the next 3 years or so. I was shocked to note that a mere 10% (even lesser) said that complying with relevant regulations was a top-priority! Holy smokes! Are CFOs turning complacent or too tired of box-ticking??? Anyway, from the survey, I can understand that there is a clear shift in priorities for today’s CFO when compared to previous years (when compliance was cool!)…looks like not any longer. It was also interesting to note that ‘part of the strategic focus is being directed at the efficient operation of the finance function’ – in Allen Blewitt’s (ACCA CEO) own words.

Well, to me, I feel that todays' CFOs would need to have a much more broader and deeper understanding of business environment encompassing a wide range of issues and concerns prevalant in todays’ hyper-competitive corporate scenario. A mere bean-counting approach to problem-solving wouldn’t suffice.

Kotler in Chennai!

2006-08-02T12:34:00.000+08:00

Did u know that marketing maharishi Prof. Philip Kotler of Kellogg Graduate School of Management – Northwestern University recently visited Chennai – Courtsey Great Lakes Institute of Management, Chennai the brainchild of Prof. Bala V.Balachandran.

I did not attend the speaking event but am told (from close quarters & various press reports) that the lecture was one-of-a-kind (a unique experience) in a lifetime (for chennaites!) and focused on marketing in the 21st century wherein Dr. Kotler lectured on new ideas, tools, techniques & practices that companies would need to successfully operate in this hyper-competitive & dynamic business environment. Gr8 show! Chennai Rocks!!!

Did you know that...?

2006-07-29T12:49:00.000+08:00

Project Manager is a person who thinks nine women can deliver a baby in one month.

Developer is a person who thinks it will take 18 months to deliver a baby.

Onsite Coordinator is one who thinks single woman can deliver nine babies in one month.

Client is the one who doesn't know why he wants a baby.

Marketing Manager is a person who thinks he can deliver a baby even if no man and woman are available.

Resource Optimization Team thinks they don't need a man or woman; they'll produce a child with zero resources.

Documentation Team thinks they don't care whether the child is delivered, they'll just document nine months.

Quality Auditor is the person who is never happy with the PROCESS to produce a baby.

and finally???...

Tester is a person who always tells his wife that this is not the right baby!!!

Learning competence

2006-07-22T12:13:00.000+08:00

Did u know that learning involves competence and it’s important for us to realize where we stand in the Learning Competence Curve (LCC). Firstly, let me explain briefly as to what it means by LCC. Basically, there are FOUR states / stages (in order of progression) of learning which one could relate oneself to:

1. Unconscious Incompetence – This, being the first stage where an individual (typically a learner) is in a state of unconscious incompetence, which means that he is not even aware of the existence or relevance of a particular skill / process / knowledge. I guess all of us reside in this state (for a while) when we get on to learn something afresh / new.

2. Conscious Incompetence – The second stage where a learner is aware of a particular skill / knowledge and also consciously admits that he is not a MASTER at it. The learner dwells in this stage for a while to gain mastery and progresses gradually to the next phase to gain conscious competence.

3. Conscious Competence – Is the third stage where the learner is able to perform his tasks at a desirable level (though far away from being a MASTER) and knows that he is competent and is on the verge of attaining mastery, which is the fourth and final stage in the LCC.

4. Unconscious Competence – This being the ultimate & definitive stage in a learner’s life (listen…I am not saying there is no continuous learning) which sets stage for the learner to attain supreme mastery & competence in his chosen area. This is a state where everyone would like to permanently reside albeit it’s extremely difficult to attain such a level and all the more daunting to maintain / sustain!

How do we realize where we stand? SIMPLE! You have to ask yourself the question “How good (or great!) I am at a particular task and do I know I am good (or otherwise) at a task?” I am sure you know the answer now!

"Learning is the ultimate competitive advantage" Amen!

JW and the new business?

2006-07-15T11:29:00.000+08:00

Did u happen to read a recently published FORTUNE article on ‘The new business rules’ and the possible contradictions with Jack Welch’s managerial philosophy? Well, here’s what a few high-profile execs had to say:

When people write about how our stock is up, they give us way too much credit for what we did this year. It's what we did three and five years ago that moved the stock. – John Chambers of CISCO on pleasing shareholders

I took $400 million and put it back into advertising, people and marketing innovation. That was fundamental. – Neville Isdel of Coke on courage and sustainability

The problem is that it's notoriously difficult to predict the size of a given market. – Art Levinson of Genentech on the importance of being number one

The real power isn't in scale, it's in alignment. And that's really hard for big companies to achieve. – Anne Mulcahy of Xerox on size and power

And…did u know what JW had to say…?

I have to give Steve Jobs and Apple all kinds of credit. What he's done is remarkable; when you think of starting the Mac, getting thrown out, coming back, rebuilding that, and then starting a whole new product category. A remarkable job.

Corp Gov, Business Ethics & CFO

2006-07-08T10:57:00.000+08:00

Recently, I was interviewed by CFO-Asia magazine for a research report recently published on Corporate Governance, Business Ethics & the CFO. This report sheds light on various issues concerning corporate governance and explores the growing awareness among Asian companies of the business benefits of strong governance and ethics.

It presents the findings of a survey of more than 160 CFOs and senior finance executives from mainland China, Hong Kong SAR, Malaysia and Singapore. The questionnaire-based research has been supplemented with in-depth case study interviews with executives at six companies (including myself representing Mulitex Limited - refer page 16 and other sections of the report) spanning a range of industries, corporate structures and locations.

Feel free to download the report (by clicking on the above link) and pour your thoughts / views...

India Risk Assessment

2006-07-03T08:09:00.000+08:00

I recently read a coface report on country risks and this is what it has to say about India…

Strengths
1. Very substantial market potential with a rapidly developing middle class.
2. Definite competitive advantage in sectors like computers, outsourcing, steel, pharma & textiles
3. Dynamic local companies with international scope
4. Manageable foreign debt and ample foreign currency reserves
5. Progressive and continuous economic liberalization since ‘91
6. Start on consolidation of public sector finances and banking sector

Weakness
1. Very unevenly distributed growth that could provoke severe social discontent.
2. Troubling situation of public sector finances, with public debt unsustainable in the long-term
3. Poor financial intermediation, deficiencies in infrastructure and business / legal environment.
4. Despite progress, Kashmir issue is still an element of uncertainty.

Risk assessment
Short-term : A3 (adverse political or economic circumstances may lead to a worsening payment record that is already lower than the previous categories, although the probability of a payment default is still low)

Medium-term : Quite low risk

Sounds VERY promising...right? Let's hope India has a bright future in terms of political & economic performance.

Lessons learnt from Meg Whitman

2006-06-28T19:30:00.000+08:00

I recently heard a 52 minute online speech of Meg Whitman (eBay) at Stanford GSB on May 23, 2006 and this is what Ms. Whitman had to say…truly inspiring!

1. If you have to go global, go soon & go fassssst!

2. eBay thought normal ordinary people to do business in an auction format.

3. PayPal becoming the wallet of eBay & its vision of being the world’s online payment standard! Skype’s acquisition – WOW!

4. Common theme across eBay – “Expanding their vision, Expanding their market & Expanding their opportunity

5. There is more of e-commerce that takes place today OFF eBay than ON eBay.

6. Lessons learnt:
a) USER EXPERIENCE IS EVERYTHING (it all begins & ends with the quality of user experience. Period.)
b) Art of Strategy = Art of Exclusion i.e. what NOT TO do rather than what TO DO!
c) Anticipate change ALWAYS. The price of INACTION is far greater than the cost of a mistake. Inaction is sometimes a STRATEGY!
d) Mistakes are OK. Just fix them FAST.
e) Build a gr8 team and be fun to work with.
f) NEVER compromise your integrity.
g) Always stay FOCUSED. Pick right people for the right job & have the right strategy & Execute the strategy
h) Have a lessons learnt NOTEBOOK and jot down ALL / MOST IMPORTANT lessons you have learnt (anywhere, anyplace, anytime). Read them.

7. Challenge for eBay – How do you grow BIG and yet stay SMALL?!

To conclude, Ms.Whitman shared her personal philosophy, to quote the legendary A.G.Lafley – “Know thyself. Be thyself”. She said that "The ability to pretend like someone else is not sustainable."

Leadership Creed

2006-06-27T15:50:00.000+08:00

1. An uncanny ability to pick people - a.k.a. talent scouting / hiring
2. Intelligent, competent & confident (NOT complacent!)
3. Democratic, caring & compassionate
4. Futuristic thinking – predicting the future business outlook / trends etc…
5. Unparalleled mission, vision & action (execution)
6. Think Global – Act Local attitude
7. Dispense enthusiasm, motivation / morale
8. Be a team-player (Player!)
9. Be fair & considerate
10. Demonstrate ethical behavior & act with highest of integrity
11. Self-controlled
12. Innovative & take calculated risks
13. Balanced yet Outgoing
14. Subtle yet Distinct
15. Strong yet Gentle

Brilliant Answer!

2006-06-23T11:46:00.000+08:00

One fine day, a mechanic was removing the cylinder heads from the motor of a car when he spotted the famous heart surgeon in his shop, who was standing off to the side, waiting for the service manager to come to take a look at his car.

The mechanic shouted across the garage,” Hello Doctor! Please come over here for a minute." The famous surgeon, a bit surprised, walked over to the mechanic.

The mechanic straightened up, wiped his hands on a rag and asked argumentatively, "So doctor, look at this. I also open hearts, take valves out, grind 'em, put in new parts, and when I finish this will work as a new one.

So how come you get the big money, when you and me is doing basically the same work? The doctor leaned over and whispered to the mechanic…"Try to do it when the engine is running".

What does BLUE OCEAN STRATEGY mean?

2006-06-22T10:00:00.000+08:00

Well, I recently read an article written by W.Chan Kim and Renee Mauborgne in the Harvard Business Review (Oct’2004 issue) which mentions that rather than competing within the existing industry (which is over-crowded) or stealing customers from rivals, an organization can develop an uncontested market space that makes the competition irrelevant. WOW! Radical Thinking!?

The authors say that competition is indeed very important but by merely focusing on competition & competitive advantage, leading authorities, experts, scholars, consultants have ignored TWO major points:-

1) To find and develop BLUE OCEANS and;
2) To exploit and protect BLUE OCEANS

They conclude by mentioning that in blue oceans, demand is created rather than fought over and there is ample opportunity for growth that is both lucrative & rapid. Interesting indeed...

Football (kick-off!) Quotes!

2006-06-07T09:46:00.000+08:00

We all know that the 2006 FIFA World Cup is around the corner (starting June 09, 2006) and since the football fever has caught up like crazy, I thought it would be apt for me to post a few out-of-the-ordinary ‘kick-off quotes’ on football…here goes the list…

1. I don’t know much about football. I know what a goal is, which is surely the main thing about football. – Victoria Beckham

2. Five days shalt thou labour, as the Bible says. The seventh day is the Lord thy God’s. The sixth day is for football. – Anthony Burgess (English Novelist)

3. A penalty is a cowardly way to score – Pele

4. Winning doesn’t really matter as long as you win – Vinnie Jones (British footballer turned actor)

5. Sometimes in football, you have to score goals – Thierry Henry, French footballer

6. The rules of soccer are very simple. If it moves, kick it, If it doesn’t move, kick it until it does. – Phil Woosnam (former US soccer coach)

7. If god had wanted man to play soccer, he wouldn’t have given us arms – Mike Dikta, American football coach

8. Soccer is a game for 22 people that run around, play the ball, and one referee who makes a slew of mistakes, and in the end Germany always wins. – Gary Lineker, former English national footballer.

Did you know that football also denotes a briefcase that holds the nuclear codes available to the President of the United States? Oops…did someone kick the briefcase to crack the code?

Do you wanna Ask.com?

2006-06-05T14:41:00.000+08:00

Did you know that there is a search site called Ask.com which has been evolving for quite a while and one never knows when things EVOLVE completely in the IT space (or do they..?). Research suggest that the activity most performed in the internet is SEARCH and it’s surfacing by leaps & bounds! Thanx to the young tech-turks at leading universities world over trying to come out with newer user-friendly robust search applications (search engines).

I recently read a FORTUNE article on Ask.com where Jim Lanzone, Ask.com's CEO effortlessly explains “What really differentiates us is our focus on search. Other companies are partnering with content companies and launching wi-fi networks. But we're not building a rocket ship. We're building a better car. It's not what people will want in five years. It's what they want now”. Is there a message to the world at large? Well, let’s wait and see what the forces of free market have to offer?

Customers Failing?

2006-05-27T12:23:00.000+08:00

Recently, I read an article titled “How to Prevent Your Customers From Failing” on Sloan Management Review (SMR) that talks about customers often being caught up in the design or delivery of services, and in this respect, functioning as co-producers of the service and sometimes resulting in failing to perform their roles effectively. The authors cite research indicating that customers cause about nearly one-third of all service problems (remember we say CUSTOMER IS KING!!??).

To study the issue of customer failure and its prevention, the authors conducted interviews with managers and customers in a variety of industries about experiences of customer failure, developed case studies related to the topic and conducted secondary research to identify examples of best practices in customer-failure prevention. From their research, the authors conclude that recovering from instances of customer failure is difficult, in part because the customer and the company may have different views of the causes of the problem. As a result, companies should focus on preventing customer failures (obviously, PREVENTION IS BETTER THAN CURE!)

The authors have devised an effective three-step approach:
1) To collect diagnostic data about where customer failures occur.
2) To analyze the root causes of cases of customer failure — whether the root causes are issues of technology, people, processes or the design of the physical environment that customers encounter.
3) To establish preventive solutions, such as process redesign.

In conclusion, the authors cite a number of examples of companies that try to prevent customer failures. Nice read for all those who say 'Customer is King!'.

An Indian salesman...

2006-05-24T13:42:00.000+08:00

One fine day, a manager of a large American MNC asks his Indian salesman: "Do you have any sales experience?" The Indian guy says: "Sir, I was a salesman back home in India."

Well, the boss liked the Indian chappie and so gave him the job. "You start tomorrow.. I'll come down after we shut shop and see how you did."

His first day on the job was a lil’ rough but he got through it. After the store was locked up, the boss came down. "How much did you sell today?"

Indian boy says: "Sir, Just ONE sale."

The boss says: "Just one? No! No! No! You see here our sales people average 20 or 30 sales a day." If you want to keep this job, you'd better be doing better than just one sale. By the way, how much was the sale for?" Indian boy says: " $101 237.64"

Boss says: "$101,237.64? What the hell did you sell?"

Indian boy says:

"Sir, First I sell him small fishhook. Then I sell him medium fishhook. Then I sell him large fishhook. Then I sold him new fishing rod and some fishing gear.

Then I ask him where he's going fishing and he said down on the coast, so I told him he'll be needing a boat, so we went down to the boating department and I sell him twin engine Chris Craft.

Then he said he didn't think his Honda Civic would pull it, so I took him down to our automotive department and sell him that 4X4 Blazer.

I then ask him where he'll be staying, and since he had no accommodation, I took him to camping department and sell him one of those new igloo 6 sleeper camper tents.

Then the guy said, while we're at it, I should throw in about $100worth of groceries and two cases of beer.

The boss said: "You're not serious? A guy came in here to buy a fishhook and you sold him a boat, a 4X4 truck and a tent?"

Indian boy says: "No Sirji, actually he came in to buy Anacin for his headache, and I said: Well, fishing is the best way to relax your mind!!!”

Words of Wisdom

2006-05-16T14:35:00.000+08:00

This is a TRUE STORY...

Long after the crowd had left and the cameras had moved, a lone runner entered the stadium to complete the 26-mile-long marathon in the 1968 Mexico City Olympics. Injured earlier in the race during a fall, he stumbled along, more than an hour after the others had finished. Hurling himself to the finish line, John Stephen Akhwari of Tanzania finished dead last. But before you judge him as a loser, take careful heed of the words he uttered when asked why he did not quit earlier when he had been injured:

'My country did not send me 7,000 miles to start the race. They sent me 7,000 miles to finish it.'

A lawyer's kindness...

2006-05-15T17:12:00.000+08:00

One afternoon, a wealthy lawyer was riding in the back of his limousine when he saw two men eating grass by the road-side.

He ordered his driver to stop, and he got out to investigate."Why are you eating grass?" he asked one man.

"We don't have any money for food," the poor man replied.

"Oh, well, you can come with me to my house," instructed the lawyer.

"But, sir, I have a wife and two children with me!"

"Bring them along!" replied the lawyer. He turned to the other man and said: "You come with us, too.""But I have a wife and six children," the second man answered.

"Bring them as well" replied the lawyer.

They all climbed into the car, which was no easy task, even for a car as large as the limousine. Once underway, one of the poor fellows says:"Sir you are too kind. Thank you for taking all of us with you."

The lawyer replied: "Glad to do it. You'll love my place; the grass is almost a foot tall."

Effort is Everything!

2006-05-15T17:09:00.000+08:00

Ever heard the story of the giant ship engine that failed? The ship's owners tried one expert after another, but none of them could figure but how to fix the engine. Then they brought in an old man who had been fixing ships since he was a youngster. He carried a large bag of tools with him, and when he arrived, he immediately went to work. He inspected the engine very carefully, top to bottom.

Two of the ship's owners were there, watching this man, hoping he would know what to do. After looking things over, the old man reached into his bag and pulled out a small hammer. He gently tapped something. Instantly, the engine lurched into life. He carefully put his hammer away. The engine was fixed! A week later, the owners received a bill from the old man for ten thousand dollars.

"What?!" the owners exclaimed. "He hardly did anything!"

So they wrote the old man a note saying, "Please send us an itemized bill."

The man sent a bill that read:
Tapping with a hammer ........................ $ 2.00
Knowing where to tap ............................ $ 9998.00

Effort is important, but knowing where to make an effort in your life makes all the difference.

P&G and A.G

2006-04-21T20:00:00.000+08:00

I recently read an interesting article on the Economist.com about P&G’s (you could say A.G.Lafley’s or A.G’s) growth in the past years and the turbulent times he had gone through to make the company what it is today (Good to Great!?). It’s interesting to note that A.G. is actually beleaguered about P&G’s growth in the recent years (well…growing in turbulent times is indeed great!?) following many acquisitions in the past worth billions of $$$$$$ and getting excessively commoditized.

Well, here is a list of few things that I thought would be of major concern to ‘A.G’ (ofcourse…this list is based on the article published)

a) Too many acquisitions in the past – post acquisition synergy – people issues – cultural issues et al
b) Average age of employees is 38 & 40% joined through some acquisition!!!
c) Very few women on board to drive the strategy (women-centric markets / products!)
d) Top-Tier staff turnover on a rise – no worries for A.G as long as the remaining ‘senior officers’ know what they are doin’.
e) Commoditized business – more of a bane than boon?
f) Consumerism & related challenges

Do you think that the road ahead for retailers is a fairly straight & neat road to commodity-hell???

Ten Books that...

2006-04-20T20:00:00.000+08:00

If you have recently visited Tom Peters' website, you would notice a post on "Twelve Books That Changed the World". This post got me started to think on my feet and come up with a similar list and here I present below my roll of "Ten Books That Changed My View Of the World"

1. IN SEARCH OF EXCELLENCE – TOM PETERS & BOB WATERMAN

2. WINNING – JACK WELCH

3. PEPSI TO APPLE – JOHN SCULLEY

4. WORLD IS FLAT – TOM FRIEDMAN

5. RE-IMAGINE – TOM PETERS

6. MY YEARS WITH GENERAL MOTORS – ALFRED P.SLOAN

7. BUSINESS AT THE SPEED OF THOUGHT – BILL GATES

8. AUTOBIOGRAPHY – LEE IAACOCA

9. STRAIGHT FROM THE GUT – JACK WELCH

10. LEADING THE REVOLUTION – GARY HAMEL

Do you have anything to add to the above???

Excellent Equation!?

2006-04-20T13:33:00.000+08:00

I recently read this quote on the web and was captivated by it. Here it goes… “Ability is what you're capable of doing. Motivation determines what you do. Attitude determines how well you do it.” – WOW!

Now may I derive a equation from the above quote...

ABILITY + MOTIVATION + ATTITUDE = EXCELLENCE

Google's dating game!

2006-04-13T19:07:00.000+08:00

I recently read a FORBES article that has talks about Google's plans for its search-savvy users. We all use GOOGLE to find any (and supposedly every) information on the web BUT now the company hopes that its users would use GOOGLE to remind them of lunch appointments, hot dates etc…using a calendar website it is launching today. This sounds absolutely awesome to me! I love the way GOOGLE is trying to position itself as a ‘one-stop-shop’ for all services. Well, its time for Yahoo & Microsoft to react (respond!)?

Turning trash into cash

2006-04-13T11:56:00.000+08:00

I recently read an interesting article (news-item) posted in The Columbia B-School (Eugene M. Lang Center for Entrepreneurship) website. The concept is surprisingly simple: encourage recycling by paying homeowners to turn in their newspapers, plastic bottles, cans & other recyclable materials.

This is really cool! These are definitely WOW! Projects (in TP’s words). Could this model be replicated worldwide? Would it be possible to obtain funding for such programs / projects in India or other developing economies? Could banks, financial institutions & VCs egg on business plans for such WOW! Projects – that would dramatically change the world and thereby make it a better place to stay?

Well, I do not have the answers to the above but firmly believe (and proven research suggests) that the following are the major impacts of recycling on the global environment: -

a) Use of recycled materials shrinks the consumption of world’s natural resources.
b) Recycling waste avoids the over-use of landfill refuse sites, which in turn trims down the level of potential pollution or contamination.
c) Manufacturing costs could be reduced as a result of energy savings to the extent of 5% approx.

You may also note that effective recycling / re-using has long-lasting impact on corporates: -

a) It projects a ‘green’ or ‘eco-friendly’ institution (responsible corporate citizen!) thereby contributing to a greener & healthier environment.
b) Greener image enhances the company’s goodwill & reputation therefore these companies are more sought after in the financial markets & hence attract better investment opportunities.
c) Commands a share price premium – ‘green investments’
d) There would be (in a few countries, it’s already mandatory) a statutory business requirement in major developing economies to adopt processes such as waste recycling etc…
e) Many service companies (everybody is in service!) have entered the ‘recycling market’ to offer value-added, cost efficient & timely service.

Kudos to such WOW! Projects that create an ever-lasting impression. Great going.

Seven surprises!

2006-04-11T17:22:00.000+08:00

Have you ever read the Oct-2004 HBR article titled ‘Seven surprises for new CEO’ by Michael Porter, Jay Lorsch and Nitin Nohria? If you haven’t, let me tell you…you are missing something very important & fundamental on today’s CEO Leadership principles.

The article deals with CEO complacency that may crop-up when at work thinking that its all about high-level strategy setting, decision making, making things happen etc…However, that being the case, as a CEO, you have much more to do on your agenda and you need to do things with caution & care. Porter at al have discovered that nothing – not even running a large business within the company – fully prepares a person to be the CEO. WOW! Whadda way to go! He lists seven surprises that are most common for new CEOs: -

1. You can’t run the company – The sheer volume & magnitude of external demands take many CEOs by surprise.
2. Giving orders is very costly – No proposal should reach the CEO for final approval unless he can ratify it with enthusiasm.
3. Its hard to know what is really going on – Information overload causes chaos and with scale & size, it tends to get messier!
4. You are always sending a message – Everything a CEO utters is magnified, amplified, scrutinized and interpreted (sometimes mis-interpreted too!)
5. You are not the boss – Boss…Do you see the Board of Directors above you?
6. Pleasing shareholders is not the goal – CEOs shouldn’t get too myopic with short-term numbers / stock-prices...instead should focus on long-term value creation.
7. You are still only human – You are not SUPERHUMAN!

Therefore, the lesson from the above article for new CEOs is one must learn to manage & lead the organization from an organizational context rather than focusing on daily operations (nitty-gritty or nook & cranny stuff!) and always remember that there are multifarious limitations in getting things done even though others might treat you like omnipotent. So true, isn’t it?

Contingency Theory – Myth or reality?

2006-04-10T20:14:00.000+08:00

We all know what contingency theory (at least in theory!) actually means – THERE IS NO ONE BEST WAY OF ORGANIZING / LEADING A CORPORATION. Agreed. This is absolute common-sense (You don’t need to be a rocket-scientist to know this!).

Ofcourse, when things are dynamic YOU DO NOT NEED a static managerial / leadership style to manage things. You need to have / instill a dynamic leadership / managerial style to handle such pulsating moments inorder to take your organization through the next BIG GROWTH PATH (do I actually sound like a B-School professor?)…but why is it that many leaders (CEOs, CFOs, SVPs, VPs, SBU Heads et al) are extremely comfortable (sometimes even restful!) with their *present* leadership style or the way they manage things and why do they not want to change (for the better, ofcourse!)?

I guess the answer is very simple – LIMITED LEADERSHIP – which means leaders are too comfortable with their existing style (a.k.a. leadership philosophy) and are petrified to change / accept change. Period.

Well, I ask all you noble-beings one question…If you are scared stiff to accept change, why the heck are you a leader? I guess you have been made a leader by chance than by choice!

Contingency theory is NOT any cookie-cutter solution to leadership. It’s NOT a one-size-fits-all answer to all problems BUT it can help: -

1) Identify constraints under the present leadership style
2) Chart ways & means of managing / countering those constraints (infact, in some occasions, convert constraints to your favor!)
3) Organizations to evolve new (better!) leadership styles inorder to manage contingent / non-linear situations (you can’t have linear solutions to solve non-linear problems!)
4) Design organizational systems / sub-systems to handle crisis / contingency
5) Getting things done differently…remember…Great men don’t do different things; they do things differently!

So now, the choice is yours. You as a leader should be prepared and willing to lead by example in a non-linear (dynamic) way during non-linear times (I am reminded of a famous quote that goes like…”bottleneck is always at the top of the bottle”) and be open / acceptable to change (EMBRACE CHANGE!) thereby ensuring that contingency theory no longer remains a myth BUT reality.

Prof. VG's Blog

2006-04-08T11:43:00.000+08:00

Vijay Govindarajan, known as VG, is the Earl C. Daum 1924 Professor of International Business at the Tuck School and founding director of Tuck's Center for Global Leadership. He is also the faculty co-director for Global Leadership 2020, Tuck's executive education program that focuses on global management and is taught on three continents. Prof. VG's area of expertise is strategy, with particular emphasis on strategic innovation, industry transformation, and global strategy and organization.

Do take time to visit his blog...indeed interesting & inspiring!

Brainstorming!

2006-04-07T14:00:00.000+08:00

It’s definitely not a new word and neither is it a jargon any longer in the corporate world but I believe we should start looking at this word from a whole new dimension – that’s important!

Brainstorming to me is an informal free-wheeling creative group activity.

Informal – Being prim & proper or being too formal / ceremonial curbs your creativity and that’s why it is imperative to be informal. You CAN think better and out-of-the-box INFORMALLY and come-up with BETTER and INGENIOUS solutions!

Free-wheeling – Again, being unrestrictive helps you to think ‘outside the box’ – Get the message? Sometimes it’s good to be hands-off than hands-on (ofcourse, not always!)

Creative – Imaginative, Original, Ingenious, Innovative, Productive, Resourceful and Inspired…Do I need to say more?

Group activity – Yes…YOU ARE NOT ALONE and YOU SHOULDN’T BE ALONE because you CANNOT brainstorm if you are alone. It has to be a TEAM activity and together thrash out (discuss/ brainstorm) topics of concern / interest. The whole point is about TEAMWORKING and COLLABORATIVE THINKING inorder to synergize your thought process and thereby coming up with better / smarter /implemental / action-oriented SOLUTIONS.

Team members should be encouraged to ‘THINK ALOUD’ and come up with as many ideas as possible and should also be upbeat on building upon others’ ideas inorder to successfully BRAINSTORM.

How many of you actually BRAINSTORM at your workplace and HOW OFTEN DO YOU DO IT?

Quotes from TP's presentation

2006-04-04T11:29:00.000+08:00

I was somehow inspired by these quotes (set out below) from a recent powerpoint presentation by Tom Peters. Hope you are as inspired as I am...simply WOW!

The Customer is GOD and the MARKET decides everything -

Source: Banner, Hua Xin Dress Co, Ltd., Rongcheng Industry Zone

Leaders don’t just make products and make decisions. Leaders make meaning - John Seely Brown

It is necessary for the President to be the nation’s … No. 1 actor. - FDR

If things seem under control, you’re just not going fast enough. - Mario Andretti

We eat change for breakfast! - Harry Quadracci, QuadGraphics

A man without a smiling face must not open a shop. —Chinese Proverb*

*Courtesy Tom Morris, The Art of Achievement

HBS launches IRC

2006-04-04T11:22:00.000+08:00

Harvard Business School (HBS) marked the official inauguration of its India Research Center (IRC) with a faculty research symposium in Mumbai attended by a stellar audience of alumni, businesspeople, and others with an interest in India and South Asia. The IRC is the fifth research center of HBS, the other four being based in Hong Kong, Tokyo, Paris and Buenos Aires. The IRC office is located in Mahindra Towers and this is what Mr.Lawrence Summers had to say - "The IRC will disseminate important ideas that will create leaders and affect people’s lives. It aims to make a great contribution to India at this crucial time in its history."

Way to go HBS...To me, I personally feel...this is just the begining...The best is yet to come!

Back 2 Basics (B2B) ?

2006-04-01T12:08:00.000+08:00

In a recent Mc.Kinsey Quarterly issue, the firm has set-out 10 trends (macro-economic) to watch out in 2006 as set out below:-

1. Centers of economic activity will shift profoundly, not just globally, but also regionally
2. Public-sector activities will balloon, making productivity gains essential
3. The consumer landscape will change and expand significantly
4. Technological connectivity will transform the way people live and interact
5. The battlefield for talent will shift
6. The role and behavior of big business will come under increasingly sharp scrutiny
7. Demand for natural resources will grow, as will the strain on the environment
8. New global industry structures are emerging
9. Management will go from art to science
10. Ubiquitous access to information is changing the economics of knowledge

Trend # 9 sounds familiar - From Management as an Art to Scientific Management???

Well, that goes out to say that F.W.Taylor was by far the most influential person of the time and someone who has had an impact (and continues to…) on management service practice as well as on management thought till date. As we all know, Taylor solemnized the principles of scientific management, and the fact-finding (cause & effect) approach that he put forward was largely adopted as a proxy for what had been the old rule of thumb. So, is someone re-inventing the wheel or is it back to basics???

India, a superpower?

2006-04-01T09:54:00.000+08:00

I recently read an article in Rediff.com in an Interview with Clyde Prestowitz, president of the think tank Economic Strategy Institute and one of America's top foreign trade experts where he clearly explains the economic outlook for India in the near / distant future and why he thinks India would emerge as the next super power in 45 years. In his own words he says "It is going to be India's century. India is going to be the biggest economy in the world. It is going to be the biggest superpower of the 21st century." WOW! Wish it happens for REAL!

Getting organized!

2006-03-29T14:31:00.000+08:00

I recently read a FORTUNE article - "Is a messy office hazardous to your career?" by Anne Fisher wherein she eloquently suggests tips for having / maintaining a tidy work-desk / cubicle. She also says “Your office is a reflection of your capabilities” - SO DAMN TRUE! Well said Anne!

Its’ time to get organized folks…sooner the better…sadly, you CANNOT outsource this process to India / China / Philippines – YOU HAVE TO DO THIS!

Lean Management!

2006-03-27T19:11:00.000+08:00

For those of you who don’t know what Lean Management is about, here’s what it means – Lean Management is the effectiveness & efficiency of an enterprise in delivering value to its customers. In short, delivering customer value without waste. The term ‘Lean Management’ is borrowed from Toyota’s production system (lean production) and is applied to the modern day organization. There have also been books on ‘Lean thinking’ and ‘Lean solutions’ written by a few authors. Lean management (as suggested by a few authors) focuses on:-

a) Managing the scope – focus on products where benchmarking shows high costs for relatively little value
b) Understanding the customer – establish a value-definition
c) Process Ownership - assign clear process ownership for the value stream that produces the product / service.
d) Measurement – establish clear & frequent measurement of processes’ effectiveness & efficiency.
e) KAIZEN – build a culture of continuous improvement.

Well for those of you who are familiar with Six-Sigma…does it sound similar to define-measure-analyze-improve-control???

Intelligence??!

2006-03-21T13:52:00.000+08:00

A boy worked in the produce section of the supermarket. A man came in and asked to buy half a head of lettuce. The boy told him they only sold whole heads of lettuce, but the man was persistent.

The boy said he'd go ask his manager what to do. The boy walked into the back room and said, "There's some jerk out there who wants to buy only half a head of lettuce." As he finished saying this he turned around to find the man standing right behind him, so he added, "And this gentleman wants to buy the other half."

The manager okayed the deal. Later the manager said to the boy, "You almost got yourself in a lot of trouble earlier, but I must say I was impressed with the wayyou got yourself out of it. You think on your feet, and we like that around here.

Where are you from, son?"The boy replied, "Minnesota, sir."

"Oh really? Why did you leave Minnesota?" asked the manager.

The boy replied, "They're all just prostitutes and hockey players up there."

"My wife is from Minnesota," the manager said.

The boy replied, "Really!? What team did she play for?"

Lies, Damn lies & Statistics!

2006-03-21T13:47:00.000+08:00

Three statisticians go out hunting together. After a while they spot a solitary rabbit. The first statistician takes aim and overshoots. The second aims and undershoots. The third shouts out "We got him!"

Now, you know why they say "Lies, Damn lies & Statistics"???

Inside Insurance!

2006-03-21T13:45:00.000+08:00

Here goes a nice joke that I recently read...

Three guys are fishing in the Caribbean. One guy says, "I had a terrible fire; lost everything. Now the insurance company is paying for everything and that's why I'm here."

The second guy says, "I had a terrible explosion; lost everything. Now the insurance company is paying for everything and that's why I'm here."

The third guy says, "What a coincidence. I had a terrible flood; lost everything. Now the insurance company is paying for everything and that's why I'm here."

The other guys turn to him in confusion and ask, "Flood? How do you start a flood?"

Coool 1-liners...

2006-03-14T13:04:00.000+08:00

Here is a list of one-liners (akin to Dilbert’s) that I find to be cooool…dunno its author – definitely NOT ME!

> Rome did not create a great empire by having meetings; they did it by killing all those who opposed them.

> If you can stay calm, while all around you is chaos...then you probably haven't completely understood the seriousness of the situation.

> Doing a job RIGHT the first time gets the job done. Doing the job WRONG fourteen times gives you job security.

> Eagles may soar, but weasels don't get sucked into jet engines.

> Artificial Intelligence is no match for Natural Stupidity.

> A person who smiles in the face of adversity...probably has a scapegoat.

> Plagiarism saves time.

> If at first you don't succeed, try management.

> Never put off until tomorrow what you can avoid altogether.

> TEAMWORK...means never having to take all the blame yourself.

> The beatings will continue until morale improves.

> Never underestimate the power of very stupid people in large groups.

> We waste time, so you don't have to.

> Hang in there, retirement is only thirty years away!

> Go the extra mile. It makes your boss look like an incompetent slacker.

> A snooze button is a poor substitute for no alarm clock at all.

> When the going gets tough, the tough take a coffee break.

> INDECISION is the key to FLEXIBILITY.

> Succeed in spite of management.

> Aim Low, Reach Your Goals, Avoid Disappointment.

> There's nothing permanent except CHANGE!!!

Top-10 Customer quotes…

2006-03-11T10:27:00.000+08:00

Here are my favorite quotes on customer / customer satisfaction...

1. Your most unhappy customers are your greatest source of learning – Bill Gates

2. If you do build a great experience, customers tell each other about that. Word of mouth is very powerful – Jeff Bezos

3. Make your product easier to buy than your competition, or you will find your customers buying from them, not you – Mark Cuban

4. Statistics suggest that when customers complain, business owners and managers ought to get excited about it. The complaining customer represents a huge opportunity for more business – Zig Ziglar

5. In our way of working, we attach a great deal of importance to humility and honesty; with respect for human values, we promise to serve our customers with integrity – Azim Premji

6. If you have a good relationship with your customer, the business process flows that much more smoothly. – Richard Pratt

7. If you work just for money, you'll never make it, but if you love what you're doing and you always put the customer first, success will be yours – Ray Kroc

8. Coming together is a beginning. Keeping together is progress.Working together is success – Henry Ford

9. The single most important thing to remember about any enterprise is that there are no results inside its walls. The result of a business is a satisfied customer – Peter F. Drucker

10. You’ll never have a product or price advantage again. They can be easily duplicated, but a strong customer service culture can’t be copied – Jerry Fritz

Recruiting the right person???

2006-03-07T13:02:00.000+08:00

Put about 100 bricks in no particular order in a closed room with an openwindow. Then send 2 or 3 candidates in the room and close the door. Leave them alone and come back after 6 hours and then analyze the situation.

If they are counting the bricks - Have them in your ACCOUNTS department.

If they are recounting them - Have them in your AUDIT dept.

If they have messed up the whole place with the bricks - Have them in your ENGINEERING dept.

If they are arranging the bricks in some strange order - Have them in PLANNING.

If they are throwing the bricks at each other - Have them in OPERATIONS.

If they are sleeping - Have them in RECEPTION.

If they have broken the bricks into pieces - Have them in IT.

If they are sitting idle - Have them in HUMAN RESOURCES
If they say they have tried different combinations, yet not a brick has been moved - Have them in SALES.

If they have already left for the day - Have them in MARKETING.

If they are staring out of the window - Have them on STRATEGIC PLANNING team.

And then last but not least.

If they are talking to each other and not a single brick has been moved - Congratulate them and take them on to your Company Board!!!

Constructive Criticism!

2006-03-06T18:34:00.000+08:00

Actually, a topic on criticism was posted by Steve Yastrow in Tom Peters’ blog today. It actually induced me to write something I have been longing to write for a while and maybe the time had come jus today! Steve had mentioned that “Some criticism is given incorrectly. Some criticism is taken incorrectly. We spend a lot of time worrying about the way criticism is given but we can learn much more from how we take it” to which my comments were…

I believe in **CONSTRUCTIVE CRITICISM**

Constructive criticism is GOOD! Usually the goal in constructive criticism is to critique an individual so they will benefit or improve. The question remains, how do we give constructive criticism without appearing to be phony or couching the constructive criticism to a point where the person does not take it seriously?
1. Constructive criticism has to be genuine. A person giving this criticism has to genuinely feel it is important to give it.
2. Be open & have the candor to say things the way it is to be said / meant to be said.
3. The person receiving the criticism must have some level of understanding of your role, and understand that you truly want them to improve.
4. Take a team approach. By doing this, you have created a collegiate type atmosphere. Both individuals are on the same level. Now you can set the stage to critique, not criticize, and then begin to construct a foundation for improvement.
5. Do not be harsh – Don’t pelt stones sitting inside a glass house!
Actually, constructive criticism takes time & practice but can be done well to see visible & quantifiable improvements in the person being criticized. Well, do you guys beg to differ?

Executives make more money?

2006-03-01T17:15:00.000+08:00

This one is really cool…

Engineers and Scientists will never make as much money as business executives will. Now, for the first time we have a rigid Mathematical proof that explains why this is in fact true.

Postulate 1: Knowledge is power.
Postulate 2: Time is money.

As every Engineer knows, Work / Time = Power
Since Knowledge = Power, and Time = Money, we have Work / Money = Knowledge
Solving for Money, we get: Work / Knowledge = Money Thus, as Knowledge approaches zero, money approaches infinity, regardless of the amount of work done.

Conclusion: The less you know, the more you make!

If you pay peanuts...

2006-03-01T12:15:00.000+08:00

Recently I was having a conversation with one of my colleagues about a HR problem that we encountered in our office and pat came the reply “If you pay peanuts, you will get monkeys & not managers!”. Somehow, I was captivated by that statement and could feel the bells ringing in my ears (loud & clear!) for a while. Now, I believe this is something every corporate must address…how does one ensure whether he / she is being rightly (adequately) paid?

An employers’ (maybe not all but most of em’) POV – I call it the 1:2:3 ratio – Recruit 1 person; Pay 2 person’s salary; Extract 3 person’s work. – fair enough??? Don’t ask me….you think for yourself….maybe it is! An employee’s (maybe all of em’) POV – Crib! Crib! Crib! For MORE!!!

How do we bridge the gap? Is it possible for an employer to satisfy an employee at all levels and based on as many parameters as possible? If yes, will the employee ultimately stand satisfied? Tough question huh??

In today’s corporate world, many companies would wanna have a “career deal” for their employees trying to make it a “win-win” situation for both the employer & employee. Companies do any / all the following (many of you may have thought of a lot more!) : -
a) Compensation at par with the market
b) Fringe benefits customized to meet the employee’s need
c) Day care centers for children (especially for working moms)
d) Subsidized (or sometimes free) canteen (thrice a day!)
e) Free coupons (for various things)
f) Medical Insurance (generally every employee lands up being over insured…after all its not cash compensation!)
g) Travel passes / coupons
h) Family outings / evenings (subsidized / free)
i) Subscriptions
j) Lucky draws & prizes during annual dinner / luncheons

Are these really motivating employees and helping them living with reality or does it boil down to the basic statement - If you pay peanuts, you will get monkeys & not managers…I believe, sometimes you do get managers for peanuts!

Emerson's best...

2006-02-24T19:33:00.000+08:00

Here are a few of my favorite Emerson's quotes...Truly inspiring!

1) Self-trust is the first secret of success.

2) To be simple is to be great.

3) He has not learned the first lesson of life who does not every day surmount a fear.

4) A man is what he thinks about all day long.

5) Where there is no vision, people perish.

6) God offers to every mind its choice between truth and repose. Take which you please - you can never have both.

7) We aim above the mark to hit the mark.

8) Do not be too timid and squeamish...All life is an experiment. The more experiments you make, the better.

9) We are always getting ready to live, but never living.

10) To believe in luck...is skepticism.

Newton's Laws to the Software World

2006-02-23T18:48:00.000+08:00

Did you know that the renowned scientist Isaac Newton had created laws for the software world??? Here it goes…

Law-1
Every Software Engineer continues his state of chatting or forwarding mails unless he is assigned work by an external unbalanced manager.

Law-2.
The rate of change in the software is directly proportional to the payment received from client and takes place at the quick rate as and when a deadline force is applied.

Law-3
For every Use Case Manifestation there is an equal but opposite software Implementation.

Law-4
Bugs can neither be created nor removed from software by a developer. It can only be converted from one form to another. The total number of bugs in the software always remains constant!

America's most admired companies

2006-02-23T18:34:00.000+08:00

FORTUNE recently dished out its recent list of America’s most admired companies. Rankings were arrived at based on the following criteria: -

1. Innovation – Apple topped the charts!
2. People Management - GE and Anheuser-Busch score maximum marks
3. Quality of Management – P&G, GE and United Health Group are the best!
4. Financial soundness - Exxon Mobil is the best!
5. Use of corporate assets – It’s Exxon Mobil once again!
6. Long-term investment – REPEAT…Exxon Mobil again!
7. Social responsibility – UPS does it!
8. Product / Service quality - Nordstrom, United Parcel Service, Walt Disney, and FedEx are amongst the Top-10 this year.

Kaizen!

2006-02-22T12:45:00.000+08:00

Well, I guess most of us know (knowing is doing?) what “Kaizen” means…For those of you who don’t…please read forward.

Kaizen is a Japanese management concept (philosophy) for continuous (incremental, gradual) improvement. In short, Kaizen = Continuous Improvement. This philosophy is the backbone of other Japanese concepts like JIT (Just-in-time), TQM (Total Quality Management). QC (Quality Circles) etc.

There are 5 components to the Kaizen philosophy:

1) Teamwork – There is no ‘I’ in Teamwork! Teamwork is basically dividing the tasks and doubling the success / output.
2) Personal Discipline – As Jim Rohn says “Discipline is the bridge between goals & accomplishments”…without self-discipline nothing much can be accomplished!
3) Improved Morale – In George Marshall’s words “Morale is the state of mind. It is steadfastness and courage and hope. It is confidence and zeal and loyalty. It is élan, esprit de corps and determination” – WOW!
4) Quality Circles – Professor John Oakland (a leading authority on Quality) defines a QC as a ‘group of workers who do similar work and who meet voluntarily, regularly, in normal working time, under the leadership of a supervisor, to identify, analyze & solve work-related problems and to recommend solutions.’
5) Suggestions for Improvement – In short, “Everything can be improved – continuously!”

Did u know that there is also a “Kaizen 5S framework” for good house-keeping? Remember….everything BEGINS at HOME!

1) Seiri – Tidiness
2) Seiton – Orderliness
3) Seiso – Cleanliness
4) Seiketsu – Clean-up
5) Shitsuke – Discipline

Everybody is in service!

2006-02-15T12:02:00.000+08:00

While I was at a meeting yesterday, I heard a few guys talking about industry sectors like Manufacturing, Services, IT, Telecom etc and their perspectives & outlook in the near future based on past trends and analysis. Then…something struck me….I began asking this question to myself - Is “Services” a sector in itself??? Is it something disparate & independent of other sectors??? Actually, I thought everybody was (is) in service! Don’t you think so? Consider this…

Well, would it be OK if a company manufacturing CNC machines in Hamburg doesn’t provide service (after-sales service) to its customers in Haryana?

Would it be OK if a copper mining & manufacturing company in Tasmania doesn’t provide adequate service / customer care to its customers / vendors / suppliers in Tamil Nadu?

Would it be OK if your local telecom company (service provider…..see the name says it all!) doesn’t provide service / solutions to its valued customers?

Would it be OK if a car manufacturing giant (like GM, Toyota, DaimlerChrysler, Audi, Honda et al) doesn’t provide adequate service in the upkeep / running & maintenance of your car??

Who the hell is not in service??!! I truly believe “EVERYBODY IS IN SERVICE”….If your not in service, your not in business. Period.

Service isn’t something that is a prized possession of a few sectors like PSFs (Professional Services Firms), Healthcare, IT, ITES, BPOs etc. Its high time we realize that “EVERYBODY IS IN SERVICE”….does anyone beg to differ?

Point of View (POV)

2006-02-15T09:46:00.000+08:00

Imagine you are at an Airport. While you're waiting for your flight, you notice a kiosk selling cookies. You buy a box, put them in your traveling bag and then you patiently search for an available seat so you can sit down and enjoy your cookies. Finally, you find a seat next to a gentleman. You reach down into your traveling bag and pull out your box of cookies. As you do so, you notice that the gentleman starts watching you intensely. He stares as you open the box and his eyes follow your hand as you pick up the cookie and bring it to your mouth. Just then he reaches over and takes one of your cookies from the box, and eats it!

You're more than a little surprised at this. Actually, you're at a loss for words. Not only does he take one cookie, but also he alternates with you. For every one cookie you take, he takes one. Now, what's your immediate impression of this guy?Crazy? Greedy? He's got some nerve? Can you imagine the words you might use to describe this man to your associates back at the office?

Meanwhile, you both continue eating the cookies until there's just one left. To your surprise, the man reaches over and takes it. But then he does something unexpected. He breaks it in half, and gives half to you. After he's finished with his half he gets up, and without a word, he leaves. You think to yourself, "Did this really happen?" You're left sitting there dumbfounded and still hungry. So you go back to the kiosk and buy another box of cookies. You then return to your seat and begin opening your new box of cookies when you glance down into your traveling bag.

Sitting there in your bag is your original box of cookies - still unopened. Only then do you realize that when you reached down earlier, you had reached into the otherman's bag, and grabbed his box of cookies by mistake. Now what do you think of the man? Generous? Tolerant? You've just experienced a profound paradigm shift. You're seeing things from a new point of view. Is it time to change your point of view?

India Everywhere @ WEF!

2006-02-13T17:44:00.000+08:00

Did you know that “India Everywhere” was the branding strategy at World Economic Forum (WEF) held this year at Davos? Well if you didn’t …it would be informative to note that people passing through Zurich and other Swiss airports in the last week of January were likely to have heard somebody humming a Hindi song or draped in an Indian pashmina shawl!

India seemed to be everywhere at the annual meeting of the WEF, where global political and business leaders congregate each year to ponder the fate of the world. By all accounts, discussions about India and China figured prominently at this year's forum, undoubtedly in view of these countries' growing role in the world economy.

Did you know that Indian business and government leaders spent some two years and more than $4 million putting together an elaborate marketing and PR campaign - much as a multinational corporation might plan a major branding initiative - to ensure that the "India story" got prominent play and did not get lost this year amid the chatter at Davos. The core message of the "India Everywhere" campaign, as its organizers called it, was simple: It presented the country as an attractive destination for foreign investment, as an emerging manufacturing hub and as a credible partner for world business – WOW!

To top it all…when work was not on the agenda, the Indian delegation lavished Davos attendees with lunches, dinners and cocktail hours with Indian liquor and cuisine, Indian art exhibitions and gift hampers. The entertainment high point was a four-hour soiree on the last evening with Bollywood songs and dances that went on until early morning.

In one word – Excellent!

Strategy & Strategy Evaluation

2006-02-13T16:07:00.000+08:00

The term Strategy has been so widely used for varied purposes that it has lost any clearly defined meaning. As most of you are aware, the concept of strategy has been borrowed from the military and adapted for use in business. Strategy is a term that comes from the Greek strategia, meaning "generalship." In the military, strategy often refers to maneuvering troops into position before the enemy is actually engaged in an attack. Strategy also refers to the means by which policy is effected.

Strategy according to Professor George Steiner is that which top management does that is of great importance to the organization. Further, Professor Mintzberg defines Strategy as a plan, a "how," a means of getting from here to there. He also says “Strategy is perspective, that is, vision and direction.”

Well, what then is STRATEGY???? Strategy is all these (4Ps) — it is Perspective, Position, Plan, and Pattern. I recently read an article which stated that Strategy is one element in a four-part structure. First are the ends to be obtained. Second are the strategies for obtaining them, the ways in which resources will be deployed. Third are tactics, the ways in which resources that have been deployed are actually used or employed. Fourth and last are the resources themselves, the means at our disposal. Thus it is that strategy and tactics bridge the gap between ends and means.

Strategy Evaluation is all about ensuring that the path laid out has been walked (or atleast traversed through) and also ensuring that you walk the right path! Basically, the evaluation aspect of Strategy should not be a rote exercise…it should be a consultative & an inclusive process wherein the real hurdles / inconsistencies should be made note of & action (preventive / corrective) duly taken. To ensure a fair evaluation Strategy must be:
a) Consistent – It must not present mutually inconsistent goals & policies
b) Responsive – It must be responsive to external environment & to critical changes
c) Competitive – It must provide for the creation / maintenance of a comparative advantage in its chosen area of activity
d) Feasible – It must be do-able!

Well, I guess its time corporates paid attention to the evaluation aspect rather than the creation aspect!

Bangalored!

2006-02-13T15:38:00.000+08:00

This word has been discussed widely in various newspapers & journals. A search suggests it has been in use in the USA for about the past year but is only now beginning to appear in print.

It refers to people who have been laid off from a multinational company because their job has been moved (outsourced) to India— a business practice designed to save money that is arousing passions in some countries, especially Britain and the United States. Bangalore is cited in particular because of its reputation in the USA as a high-tech city (Indian equivalent of Silicon Valley), that has benefited significantly from such outsourcing.

It would be informative to note that a website is selling T-shirts with the slogan “Don’t Get Bangalored!” as a way of telling people about the outsourcing phenomenon. What’s odd about the term, from the point of view of language, is that it’s unusual for a place name to become a verb.

Team Building

2006-02-10T11:51:00.000+08:00

To all those noble-beings (managers) out there - How many of you spend quality time in a "Team Building" exercise for your organization??? I guess the answer is not a very satisfactory one. Most of us pay 'lip-service' to team building...its more said than done! But why??

The reason is that bosses always like to maintain a distance (I call it the "Great Wall of China" syndrome) with their subordinates because they think they might lose respect (they think they deserve!) by interacting with the rank-and-file. Well, did we hear someone say "Command Respect, Not Demand"??? I guess in todays' world...it’s the other way round!

One has to get up-close & personal with their staff / subordinates (of course officially!) inorder to help, guide, coach, mentor & mould them in a manner that is desired for mutual (employer-employee) growth & benefit and its always BEST TO BREAK THE BARRIER between superior-subordinate relationship...obviously, you gotta meet your boss everyday!

Today’s leaders are finding themselves as members of all kinds of teams including virtual teams, autonomous teams, cross-functional teams, and action-learning teams. Team building in the form of team dinners, face-to-face meetings / interactions, management games, role-play, team progress report, mini-surveys and a host of other effective tools developed by various management theorists & practitioners would be of invaluable assistance in devising an effective "team-building" exercise.

Trust me… its better late than never and its all TEAMWORK!

Best of Steve Jobs!

2006-01-27T10:06:00.000+08:00

Here are a few of my favorite Steve Jobs quotes...WOW!! Whadda Guy!!

a) Be a yardstick of quality. Some people aren't used to an environment where excellence is expected.

b) Design is not just what it looks like and feels like. Design is how it works.

c) Innovation distinguishes between a leader and a follower.

d) Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations.

e) To turn really interesting ideas and fledgling technologies into a company that can continue to innovate for years, it requires a lot of disciplines.

f) Sometimes life hits you in the head with a brick. I’m convinced that the only thing that kept me going was that I loved what I did. Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. Don’t settle [for less]. As with all matters of the heart, you’ll know when you find it.

g) Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma—which is living with the results of other people’s thinking. Don’t let the noise of other’s opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They some how already know what you truly want. Everything else is secondary.

h) Stay Hungry. Stay Foolish

Unlock your Mind!

2006-01-26T09:55:00.000+08:00

I recently read a short story about Houdini (magician & famous locksmith) that goes like this...

"Houdini was a master Magician as well as a fabulous locksmith. He boasted that he could escape from any jail cell in the world in less than an hour, provided he could go into the cell dressed in street clothes. Houdini became very famous. A small town in the British Isles built a new Jail which they were extremely proud of and they issued Houdini a challenge. "Come give us a try", they said. Houdini loved the publicity and the money attached with it, so he accepted. The day of the challenge came. By the time Houdini arrived, excitement was at a fever pitch. Houdini rode triumphantly into the town and walked into the cell. He proudly walked into the cell and the Big Iron door was closed. Houdini took off his coat and went to work. Secreted in his belt was a flexible tough and durable ten-inch piece of steel, which he used to work on the lock. At the end of 15 minutes his confident expression had disappeared. At the end of 30 minutes he was looking confused. At the end of an hour he was drenched in perspiration. After two hours ... Houdini literally collapsed against the door which opened....! Yes, it had never been locked.........except in his mind..........where he viewed it was as firmly locked as if a thousand locksmiths had put their best efforts in making the lock for it. One little push and Houdini could have easily opened the door..........But he didn't."

Well, many a times, a little extra push is all you need to open your opportunity door. In the game of life you will discover, as you set your goals and unlock your mind, that the world will unlock its own treasures and rewards to you. Realistically, most locked doors are in our minds ....... Unlock your Mind......Think Great Thoughts.......Do Great Things! I love this quote by Steve Jobs - "Let's make a dent in the universe" - How true!

Why do companies need to innovate?

2006-01-23T16:08:00.000+08:00

Innovation has been one of the hottest topics in management in the recent past and am sure is gonna remain that way for a lil while ahead. I love this quote by Peter F. Drucker from his book “People & Performance” on innovation and I truly believe no one else has defined innovation like Prof. Drucker - 'Because its purpose is to create a customer, the business enterprise has two -- and only these two -- basic functions: Marketing and Innovation.Marketing and innovation produce results; all the rest are 'costs.' In its simplest form, Innovation is implementing new ideas to create value. There are quite a few factors that would prompt for Innovation – problems, new technology, new ideas, new services to be catered to, new possibilities for better solutions, newer products that meet consumer demand to mention a few. Innovation therefore means doing things differently, exploring new territories & taking risks. Well, I feel the primary reasons for companies to innovate are: -

1. To exist in the market place – mere presence.
2. To differentiate OR die!
3. To be competitive – Competitive advantage!
4. To add value to its customers, processes, people and all concerned stakeholders
5. To increase productivity & profits!
6. To increase 3Es (Economy, Efficiency, Effectiveness)
7. To ensure a sizeable market presence (market-share)
8. To motivate employees & ensure a better work quality.
9. To foster new relationships (with suppliers, customers, bankers, lenders, other external stakeholders)
10. To ensure growth in KPIs (Key performance indicators)

Most of you would have thought about many other reasons…? Willing to share em’? Keep your thoughts flowing...

The Donkey!

2006-01-19T13:06:00.000+08:00

One day a farmer's donkey fell down into a well. The animal cried piteously for hours as the farmer tried to figure out what to do. Finally, he decided the animal was old, and the well needed to be covered up anyway; it just wasn't worth it to retrieve the donkey. He invited all his neighbors to come over and help him. They all grabbed a shovel and began to shovel dirt into the well.

At first, the donkey realized what was happening and cried horribly. Then, to everyone's amazement he quieted down. A few shovel loads later, the farmer finally looked down the well. He was astonished at what he saw. With each shovel of dirt that hit his back, the donkey was doing something amazing. He would shake it off and take a step up. As the farmer's neighbors continued to shovel dirt on top of theanimal, he would shake it off and take a step up.

Pretty soon, everyone was amazed as the donkey stepped up over the edge of the well and happily trotted off! Life is going to shovel dirt on you, all kinds of dirt. The trick to getting out of the well is to shake it off and take a step up. Each of our troubles is a steppingstone. We can get out of the deepest wells just by not stopping, never giving up! Shake it off and take a step up.

Remember the five simple rules to be happy:
1. Free your heart from hatred - Forgive.
2. Free your mind from worries - Most never happen.
3. Live simply and appreciate what you have.
4. Give more.
5. Expect less

NOW Enough of that crap . . .
The donkey later came back, and bit the shit out of the farmer who had tried to bury him. The gash from the bite got infected, and the farmereventually died in agony from septic shock.

MORAL OF THE STORY:
When you do something wrong, and try to cover your ass, it always comes back to bite you!

Boards & CSR

2006-01-13T18:33:00.000+08:00

For many companies worldwide, Corporate Social Responsibility (CSR) has been a regular feature on many a boardroom agenda. An important point to note is the role of the board and the problem of defining what CSR actually is. There are several trains of thought on this. Some tend to view it as a fairly marginal activity, one that has little relevance to the board’s leadership; others, as fundamental to the way in which companies interact with stakeholders of all sorts. Basically, CSR sets the terms of an implicit contract between companies and society.

Society grants companies a number of important rights & freedoms, among them the privilege of limited liability, and in return expects them to fulfill certain obligations in the nature of duties to be honest, keep promises, to take due care of interests of others, to treat people fairly, to be accountable, responsible and act ethically to ensure good governance.

Effective governance from the board is essential if companies are to reap long-term benefits for responsible behavior. Boards are in a unique position because they sit at the apex of the incentive structure for companies, and through their decisions about strategy, the drive companies’ responses to the external inducements provided by the market & regulatory environment, and – through the design & implementation of remuneration and internal control systems – they shape their internal inducements. CSR should be taken in its right spirit across all levels in an organization inorder to create a culture of integrity & ethical practise, thereby setting the right values & standards for everyone to comply with.

Don't Compare!

2006-01-12T18:42:00.000+08:00

Well, jus wanted to post something 'one-off' (not the usual management stuff!) and therefore here goes one of my favorite topics (well, I guess the concept discussed here is VERY MUCH applicable to the corporate world?).

We live in a pathologically dissatisfied world. Because we love to compare....

Go around the world and discover that people aren't happy with their bodies. Filipinos want to be fair-complexioned like Westerners and so buy bleaching stuff. Westerners want to own bronzed bodies like ours and so purchase tanning lotions. Those with moles have them removed, while those who don't strategically implant beauty spots. Some people want to shed a few pounds to look like Ally McBeal, while others want to gain some baby fat to look like Drew Barrymore!

When are we ever going to stop and simply be happy with how we look? We live in a sick world and that sickness is comparison it is. Take a look at wealth, for example when we drive our old Honda, it really suits us fine. We feel blessed infact when the rain pours outside and we feel snug and cozy on its faded upholstered seats. But the moment we see our own office mate (or neighbor,or buddy, or cousin, or brother) drive his sleek sky-blue, four-door,four-wheel-drive Mercedes, we automatically feel beaten below the belt!. Next time we drive our bumpy, noisy, rusted, dilapidated Honda, (notice how all the defects come out all of a sudden?), we feel deprived,dispossessed, pariah, debased and only a little higher than the insects of the earth.

Bill Gates (the world's richest man) total assets are worth more than $60 billion. That's more than the GNP ofsome small countries. Tiger Woods earns $80 million simply by smiling on TV in a Nike shirt and the stars of the sitcom Friends are paid $750,000 per episode! No matter how hard you work, there'll still be some people who will be richer than you are. And there'll be some people who will be more beautiful, have more appeal and have more problems. Try it for once. Stop looking around. Don't compare!

This is crucial:
The most difficult thing in the world is to be who you are not. Pretending and trying to be someone else is the official pastime of the human race. (I don't think dogs and cats and cows and horses have this problem!) and the easiest thing in the world is to be yourself. Be happy. Live!There must be a reason why God made you tall or short or fat or thin or bumpy all over. Love who you are! Be happy, it's not that difficult!

Why you and your boss are different?

2006-01-11T14:16:00.000+08:00

Well, if you wanted to know the answer to the above question...read below...

When you take a long time, you're slow. When your boss takes a long time, he's thorough.

When you don't do it, you're lazy. When your boss doesn't do it, he's too busy.

When you make a mistake, you're an idiot. When your boss makes a mistake, he's only human.

When doing something without being told, you're overstepping your authority. When your boss does the same thing, that's initiative.

When you take a stand, you're being bull-headed. When your boss does it, he's being firm.

When you overlooked a rule of etiquette, you're being rude. When your boss skips a few rules, he's being original.

When you please your boss, you're apple polishing. When your boss pleases his boss, he's being co-operative.

When you're out of the office, you're wandering around. When your boss is out of the office, he's on business.

When you're on a day off sick, you're always sick. When your boss is a day off sick, he must be very ill.

When you apply for leave, you must be going for an interview. When your boss applies for leave, it's because he's overworked.

Quotes to begin 2006 with...

2006-01-05T17:33:00.000+08:00

I consciously wanted to kick-off this year with a few inspiring quotes. Hope you all enjoy reading em’…on top of it, would appreciate if each & everyone of us could live & breathe the messages conveyed in these wonderful quotes…

a) The thing always happens that you really believe in; and the belief in a thing makes it happen - Frank Lloyd Wright

b) It's not that some people have willpower and some don't. It's that some people are ready to change and others are not. - James Gordon

c) The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out. Every mind is a building filled with archaic furniture. Clean out a corner of your mind and creativity will instantly fill it. - Dee Hock

d) You see things; and you say, 'Why?' But I dream things that never were; and I say, "Why not?" - George Bernard Shaw

e) The foolish man seeks happiness in the distance, the wise grows it under his feet. - James Oppenheim

f) Lack of money is no obstacle. Lack of an idea is an obstacle - Ken Hakuta

g) An invasion of armies can be resisted, but not an idea whose time has come. - Victor Hugo

h) Imagination is the beginning of creation. You imagine what you desire, you will what you imagine and at last you create what you will. - George Bernard Shaw

i) If we value the pursuit of knowledge, we must be free to follow wherever that search may lead us. The free mind is not a barking dog, to be tethered on a ten-foot chain. - Adlai E. Stevenson Jr., speech at the University of Wisconsin, Madison

j) Many an optimist has become rich by buying out a pessimist - Robert G. Allen

Wishing you all a gr8 start (and an even greater / smoother ride!) in 2006...Good Luck!

Creative Accounting

2005-12-29T13:40:00.000+08:00

Creative Accounting refers to accounting practices that deviate from standard accounting practices (GAAP, FRS, AS etc...) and are characterized by excessive complication and the use of novel ways of characterizing income, assets or liabilities....well, am glad you realized there is no need to have a novel way to account for expenses...everyone gets novel (sometimes overboard!) once in a while to account for expenses (whether incurred or not!). Many a times, the words "innovative" or "aggressive" are used as a surrogate for "creative"...its just a jargon - who cares!

The fact of the matter is that by using such creative accounting practices, many organizations (am constrained by character count to name all of em'!) have been subject to accounting scandals & other fraudulent "innovative" mis-adventures that had ultimately led to its own dwindling (apart from swindling!). One must understand that because of such several dismal events, the accounting & auditing fraternity were put to humiliation, mortification and severe embarrassment, though the fault doesn’t fully lie with accountants…well, am not here to play the blame-game but we must understand that it is the responsibility of the management of a company to prepare its books of account as per the generally accepted accounting principles & conventions and the auditor (accountant) is supposed to express an independent opinion (qualified or otherwise!) on the accounts prepared by the company’s management. Again, to qualify or not is another matter altogether….it again depends on so many things right from auditor independence, client relationship, fee-hike, new business proposition, consulting services & other non-audit services et al.

To conclude, I feel that both companies and accountants must understand the repercussions of creative accounting practices and ensure that accounting doesn’t actually get too creative to count beans behind bars!

Merry Christmas & Happy New Year

2005-12-21T12:37:00.000+08:00

Wishing you all a Merry Christmas & Happy New Year.

Thoughts for 2006...

> You don't get to choose how you're going to die. Or when. You can only decide how you're going to live. Now. - Joan Baez

> Everyone is kneaded out of the same dough but not baked in the same oven. - Yiddish Proverb

> The real voyage of discovery consists not in seeing new landscapes but in having new eyes. -Proust

> Let everyone sweep in front of his own door, and the whole world will be clean. - Goethe

> I offer you peace. I offer you love. I offer you friendship. I see your beauty. I hear your need. I feel your feelings. My wisdom flows from the Highest Source. I salute that Source in you. Let us work together for unity and love. - Gandhi's Prayer For Peace

> There is more hunger for love and appreciation in this world than for bread. - Mother Teresa

Education & Entrepreneurship!

2005-12-21T10:09:00.000+08:00

Many a times I have felt that entrepreneurship CANNOT BE taught in B-Schools the way it is meant to be practiced in the REAL WORLD! Its more of an Art than Science and hence can be excelled (seldom perfected!) over a period of time. However, the spirit of entrepreneurship, best practices, real-world case-studies, management games, entrepreneurial simulation et al COULD BE taught (whether relevant or not to the real world!) in B-Schools…well, the beauty is that when all of these (and much more!) could be learnt in the corporate world, people pay a fortune to learn these thingz @ B-Schools and end up with a mid-life crisis!! I love the quote “I was born intelligent, education ruined me!” and I think its true because to the best of my knowledge, till date, not many successful entrepreneurs have had fabulous education (In fact, many of them have quit their Ivy League education to make a dent in the universe!). However, they ended up making a truckload of reserves & heaps of fortune (technically called WEALTH CREATION!). I guess education & entrepreneurship is inversely propotional! What have you got to say??

Management lingo for the millenium!

2005-12-20T15:32:00.000+08:00

I recently read this at a website and therefore wanted to share it with the ROW (Rest of the World)...

BLAMESTORMING: Sitting around in a group, discussing why a deadline was missed or a project failed, and who was responsible.
SEAGULL MANAGER: A manager, who flies in, makes a lot of noise, craps on everything, and then leaves.
CHAINSAW CONSULTANT: An outside expert brought in to reduce the employee headcount, leaving the top brass with clean hands.
CUBE FARM: An office filled with cubicles.
TOURISTS: People who take training classes just to get a vacation from their jobs. "We had three serious workers in the office; the rest were just tourists."
XEROX SUBSIDY: Euphemism for swiping free photocopies from one's workplace.
PERCUSSIVE MAINTENANCE: The fine art of whacking the heck out of an electronic device to get it to work again.
ASSMOSIS: The process by which some people seem to absorb success and advancement by kissing up to the boss rather than working hard.
FLIGHT RISK: Used to describe employees who are suspected of planning to leave a company or department soon.
UNINSTALLED: Euphemism for being fired. Heard on the voicemail of a vice president at a downsizing computer firm: "You have reached the number of an Uninstalled Vice President. Please dial our main number and ask the operator for assistance. *(Syn: decruitment)
CLM (Career Limiting Move): Used among micro serfs to describe ill-advised activity for eg: trashing your boss while he or she is within earshot is a serious CLM.

Well, the above may be put to practice at your own risk!

Beyond Numbers!

2005-12-20T14:56:00.000+08:00

Many of you may think that being finance professional, it would be a peccadillo (colloquially known as "sin") for me to scribe something like this but the reality lies in accepting and agreeing to the fact that there is so much more for finance professionals than just mere numbers (number crunching!) to an organization. Many a times KPI (Key Performance Indicators) usually represent financial measures ignoring the "important" non-financial crunch – which I feel is an equally essential sauce (remember…..its all in the sauce!). I strongly believe that organizations (both profit & not-for-profit sector) should adopt a more holistic approach to performance measurement & management wherein KPIs include non-financial performance measures like customer dissatisfaction, ethical trading, supplier relationships, people / employee satisfaction index, workforce diversity, environmental parameters, community contributions, major incident rate, total waste & recycling rates etc…

Today, I feel there is a shift (not too sure whether it’s a quantum shift!) from treating financial measures as the foundation for performance measures, to being only one of several measures used by corporates to evaluate their performance. There is also a possibility that staff (many-a-times) play sport (does it reflect their sportiveness or lack of it??) to maximize financial measures rendering the whole performance evaluation exercise futile. Companies worldwide are transforming themselves for a world where competition is based more on information, and on ability to exploit intangible assets, than on their ability to invest in, and manage, tangible assets. Concept of Balanced Scorecard (Robert Kaplan & David Norton) was introduced to complement financial measures with those related to: customers; internal business processes; and learning. Many corporates have used this as cornerstone of a new strategic performance management system. Well, the key point is to discover how human, organizational and intellectual assets combine in creating VALUE.

Management - Art or Science?

2005-12-19T14:46:00.000+08:00

I have wondered many a times as to whether Management is an art or science and haven't found an exact answer to this question...well is there any ONE answer??? NO! There is no 'yes or no' answer to this question (I bet this can't be a box-ticking exercise!).

Management as an Art is a practice that has been followed for ages (donkey’s years!) by many noble-beings (were they called managers in the early era??) and has been unremitting since then...maybe the style has changed but the objective hasn't. Being an art, its practice to perfection was one of the most essential feature (sine-qua-non) that everyone was looking at. However, due to efflux of time, many realized that it wasn't important to be perfect BUT necessary to be excellent. If you aren't excellent, u better take a jump!

Management as a Science always had (and continues to have) a 'Cause & Effect' relationship that has been practiced (did I say preached?) for time immemorial (well, still being very well practiced and preached in many companies!) inorder to enable people to perform better (hopefully!) and understand the quantification (many-a-times distorted!) behind their performance. I guess, time has come for us to realize the importance of management BOTH as an art and science and to appreciate its co-existence within an organization. I truly believe that it is in the best interest of the organization to have a mix of both (art & science) in right proportions and at the right stage of the organizations' cycle inorder to derive immense benefits from the use of managerial tools, techniques, practices, philosophies, processes & disciplines AND at the same time KISS (Keep It Simple Stupid!).

WTO in HK - An update

2005-12-17T10:00:00.000+08:00

The World Trade Organisation's biennial ministerial conference got under way in Hong Kong, amid protests and scuffles with the police. In general, ministerial conferences are the WTO’s highest decision-making body, meeting at least once every two years and providing political direction for the organization. This sixth conference will be vital for enabling the four-year-old Doha Development Agenda negotiations to move forward sufficiently to conclude the Round in 2006.

This year, thousands of demonstrators from more than a dozen countries marched through Hong Kong, some scuffling with police and others diving into the city's harbor in protest. About a hundred other Korean activists jumped into the cold waters of Victoria Harbor wearing life preservers and tried to swim to the convention center but were cut off by police patrol boats. Also, about 4,500 demonstrators stayed on a route designated by police and peacefully protested trade accords they say benefit the rich at the expense of the poor. Many protesters in Hong Kong said they hoped their presence would pressure negotiators to produce a fairer deal for poor nations, by making rich countries' markets more open to goods from the developing world

Pascal Lamy, director-general of the WTO, urged delegates to continue working toward a wide-ranging trade deal that could lift the global economy. "We must not focus on ourselves. We must focus on our children, and our grandchildren," he said. The meeting took place under high security in a glistening convention center that extends into the harbor. Police have sealed off the area around the building with water-filled plastic barriers and metal fencing, and patrol boats are positioned in the surrounding waters.

Loyalty Management

2005-12-16T18:49:00.000+08:00

Did u know there is something called "Loyalty Management"? Well, if you didn't know, here's what it means - "Loyalty Management grows a business’s revenues and profits by improving retention among its customers, employees and investors." in Darrell Rigby's own words. Loyalty programs measure and track the loyalty of various groups, diagnose the root causes of defection among them, and develop ways not only to boost their allegiance but turn them into advocates for the company. He also mentions that Loyalty Management quantifiably links financial results to changes in retention rates, maintaining that even small shifts in retention can yield significant changes in company profit performance and growth.

Common uses, as identified by Darrell Rigby include:

a) Build lasting relationships with customers who contribute the most to profitability, and capture a larger share of their business;
b) Generate sales growth by increasing referrals from customers and employees;
c) Attract and retain employees whose skills, knowledge and relationships are essential to superior performance;
d) Improve productivity, and decrease recruitment and training costs;
e) Strategically align the interests and energies of employees, customers, suppliers and investors, in a self-reinforcing cycle;
f) Improve long-term financial performance and shareholder value.

WOW! Whadda concept!

Live Life Fully!

2005-12-16T17:51:00.000+08:00

The most memorable New Year gift in the recent past is a lovely "Live Life Fully" kit (a one-page document!) that my dad (Mr.J.Kannan, a Freight Forwarding veteran) gifted to me a few daya ago. I am simply dumbstruck by this document and thought it would make great sense for me to post it here for the benefit of the ROW (Rest of the World). Here it goes...

Live Life Fully

> WITH:

ACCOMPLISHMENT
BLISS
CONTENTMENT
DECORUM
EXUBERANT
FIDELITY
GRATITUDE
HUMILITY
INTEGRITY
JOY
KINDNESS
LOVE
MAGNANIMITY
NOBILITY
OPTIMISM
PRAGMATISM
QUEST
RESPECTABILITY
STATURE
TOLERENCE
UNIVOCAL
VERSATILITY
WISDOM
(e) XALTATION
YUM

ZEST

> WITHOUT:

AGILITY
BIAS
CONTROVERSY
DELUSION
ELUSION
FEAR
GRUDGE
HATRED
IMPURITY
JEALOUSY
KINDLE
LAXITY
MOROSE
NEGLIGENCE
OBSTINACY
PROVOCATION
QUID PRO QUO
RETALIATION
SOUR
TIMIDITY
UNCONCERN
VIOLATION
WAGGING
(e) XPEDIENCY
YELL
ZELOTYPIA

Einstein and the Banker!

2005-12-16T14:36:00.000+08:00

Einstein dies and goes to heaven only to be informed that his room is not ready yet. He is greeted by the doorman, who explains, "I hope you will not mind staying in the dormitory, but it's the best we can do and you will have to share the room with others We are very sorry!"

Einstein says that this is no problem at all and that there is no need to make such a great fuss. So the doorman leads him to the dormitory. They enter and Albert is introduced to his four new roommates.

The doorman states, "Here is your first room mate and he has an IQ of 180!" "That's wonderful!" says Albert. "We can discuss mathematics!"

Next the doorman introduces his second roommate, saying, “His IQ is 150!""That's wonderful!" says Albert. "We can discuss physics!"

Further along, the doorman says "And here is your third room mate. His IQ is 100!""That's wonderful! We can discuss the latest plays at the theater!"

Just then another man moves out to capture Albert's hand and shake it. "I'm your last room mate. I'm sorry, but my IQ is only 80."Albert smiles back at him and says, "So, where do you think interest rates are headed?"

Never Assume!

2005-12-13T18:38:00.000+08:00

I always say "Assumption is the mother of all f**kups"...Well, maybe thats a crude (and an uncensored!) way to hit the nail but as long as you hit the nail right on its head...its fine!. I have come across many occassions where people tend to assume things and therefore end up doing things that aren't expected out of them. To them, here is what I would like to say "Dont assume things: when you ASSUME you make an ASS out of U and ME", which is bad enough. Therefore, the final take-away is "Never assume, Seldom deny, Always distinguish!"

Shut Up, Move On (SUMO)

2005-12-12T19:30:00.000+08:00

I recently read an article about Paul McGee a.k.a the "SumoGuy" in a professional association's journal and I personally found it very enriching and therefore thought I could share it with the ROW (Rest of the World). As Paul puts it "SUMO is a phrase to say to ourselves (and sometimes others!) when we are acting or thinking in a way that is hindering our ability to succeed.....SUMO is meant to be challenging, thought-provoking and memorable message". The SumoGuy has identified SIX PRINCIPLES designed to help you create and enjoy a brilliant life:

1) Change your T-Shirt - Take responsibility for your own life.

2) Develop fruity thinking - Take charge of your thinking. When you change your thinking, you ultimately change your results.

3) Hippo time is OK - Understand how setbacks affect you and how to recover from them.

4) Remember the beachball - Increase your understanding and awareness of other people's world.

5) Learn Latin - Change comes through ACTION and not INTENTION.

6) Ditch Doris Day - Create your own future rather than leave it to chance.

Make everyday a "Great Day"

2005-12-12T12:54:00.000+08:00

You know, William Shakespeare said around 400 years ago that nothing is either good or bad but thinking makes it so. Ponder that. Even that may send a person into a lifetime of happiness or send another into a psych ward! Many people have lost limbs or endured other similar injuries and they believe it may have been the best thing that ever happened to them, going on to remarkable success and happiness in life in spite of, and even as a result of, their injury. Many others, though, are reduced to rubble from the exact same event.

The statement is phenomenal:"No matter what I am doing, I try to make it as enjoyable as possible." Because we know very few people who don't either spend enormous amounts of mental energy either looking backwards bemoaning their past and crying over it or looking to the future, imagining the worst outcomes. Very few people, enjoy very many present moments to (many of them) the fullest. Life is made up only of present moments. Present thoughts. Present decisions. Present actions. In each one, we have a choice... to be in it, to do what we should, what we can and to enjoy it for what it is. When they're gone, they're gone forever.

Yeah, sure... some moments and some days are better than others. But we can't determine which days are going to be those monumentally wonderful days. Therefore, one thing you could do is to write or type on a piece of paper and tape it to the top of your monitor these words:"No matter what I am doing today, I am going to make it as enjoyable as I possibly can." Make that your primary focus today... each and every minute and every hour today, and I promise you that today will be one helluva great day!

Benchmarking

2005-12-12T10:46:00.000+08:00

Benchmarking is a systematic comparison of organizational processes and performance to create new standards or to improve processes. A benchmark is a point of reference for a measurement. There are 5 types of benchmarking...

1) Internal - benchmarking within a corporation, division, business units etc

2) Competitive - benchmark performance / processes with competitors

3) Functional - benchmark similar processes within an industry

4) Generic - comparing operations between unrelated industries

5) Collaborative - benchmarking carried out collaboratively by groups of companies

Various costs that could be attributable to benchmarking exercise would include visit costs (travel costs. lost labour time, boarding & lodging costs etc..), time costs (investment of time by team-members to research a problem, brainstorm, performing management experiments etc...) and database costs (costs of creating and maintaining a database of best practices and companies associated with each of the best practices).

I must say that benchmarking is a tough process that would involve tons of commitment & persistence for it to succeed. Also, it must be performed continously inorder to reap the true benefits over time (did I say "In relentless pursuit of excellence"?)

Nobel Prize 2005

2005-12-12T09:53:00.000+08:00

The Royal Swedish Academy of Sciences has decided to award the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel, 2005, jointly to Prof. Robert J. Aumann (Center for Rationality, Hebrew University of Jerusalem Jerusalem, Israel) and Prof. Thomas C. Schelling (Department of Economics and School of Public Policy, University of Maryland College Park, MD, USA) for having enhanced the understanding of conflict and cooperation through game-theory analysis. As described by Prof. Jörgen Weibull, Member, the Royal Swedish Academy of Sciences, Chairman of the Economics Prize Committee, Game Theory is all about strategic interaction. Such interaction may occur within or between families, local communities, firms, organizations or whole countries. In most instances, no single party, or "player", can determine the outcome single-handedly; the result of interaction depends on everyone's behavior. Just as in chess or bridge, a player's best move thus depends on the moves that have been and will be made by other players. Consequently, in strategic interactions each player acts on the information at his or her disposal, as well as on expectations of others' future actions. However, others' actions depend, in turn, on their information and expectations about your actions, so all players' actions, information and expectations are intertwined in a complex and fascinating pattern. The analysis of strategic interaction, with due regard to these complexities, is precisely what game theory is all about.

Top-10 lies told by Finance Profs!

2005-12-09T19:55:00.000+08:00

Recently, I read this at a website and therefore wanted to share it with ROW (Rest of the World)...Here it goes...

10 - Don't sweat that poor grade on your midterm. I am certain that you'll do much better on the final.
9 - Come by my office any time. I'm always available.
8 - You can make a killing as a stockbroker.
7 - Don't worry if you can't remember that formula. The main thing on the test is that you grasp the intuition.
6 - It doesn't matter what I think; write what you believe.
5 - If you come to all the lectures, you'll do just fine.
4 - My other section is much better prepared than you guys.
3 - What's your problem? Any moron can understand bond pricing models.
2 - Don't worry about that final grade. No one will care anyway.
1 - Of course, I make a lot investing. I only teach so I can help young people.

Intel & JP Morgan invest in India

2005-12-09T18:16:00.000+08:00

Intel, the world's largest chip maker, and JP Morgan Chase, the global investment banker, said on Monday that they would outsource significant operations to India, an indication that more complex high-value work was moving here. J. P. Morgan Chase said it would add 4,500 employees in India by 2007. UBS said it would open its first center in Hyderabad, with 500 jobs, in early 2006. Goldman Sachs has 750 people in its center in Bangalore but has a capacity for 1,500 employees.

Now, my question is whether the above companies want to use India as a mere body-shopping location / destination (ofcourse the Indian workforce would be more than delighted to work for Intel, JPM, UBS, GS etc for the lofty salaries that they would be paid BUT in 10 yrs time, I bet Indian grads would be recognized as mere transaction-processors....jus rote processing!) or do they really wanna add value by moving / shifting their CRITICAL (Value added!) activities from the US (which I doubt, if it would happen in the forseeable future!)

HK Business Awards 2005

2005-12-08T14:34:00.000+08:00

Last nite, I was invited to the Annual HK Business Awards hosted by SCMP & DHL and I must say that the awards nite was indeed fantastic tho Bernard Lo of Bloomberg did ape (or atleast tried to!) Conan O' Brien, Jay Leno, Deve Letterman & the likes....ofcourse, the chinese felt that he was pretty good at it...no comments from me tho'.

Well, the main purpose of this post was to mention about Ms.Mimi Donaldson (co-author of Negotiating for Dummies) who was the key note speaker at yesterday's awards function. Well, she basically kicked-off with 'leadership' and what it means to be a 'leader' and then started talking of 'formal people' and 'casual people' and the ways and means through which these both types of people co-exist..(I believe, if u cant cure, u gotta endure!) and she cracked a few jokes involving BOTH formal & casual people and I must say her speech was short, sweet, crisp, simple & kinda "old wine in a new bottle" types.....ofcourse, it was FUN! But if you ask me "Well, did the leaders learn anything new?", I would say "Well, Next question please!"

Dare to become an accountant!??

2005-12-06T16:12:00.000+08:00

These 3 questions (and their answers, ofcourse!) COMPLETELY changed my perspective about bean-counters...dunno whether its for the good or bad (hopefully not worse!)

Q: When does a person decide to become an accountant?
A: When they realize they don't have the charisma to succeed as an undertaker.

Q: What's the definition of an accountant?
A: Someone who solves a problem you didn't know you had in a way you don't understand.

Q: What's the definition of a good tax accountant?
A: Someone who has a loophole named after him.

Hope you enjoyed reading in as much as I enjoyed posting it on my blog.

Candor - A Must?

2005-12-06T16:01:00.000+08:00

I am reading a book written by Jack Welch titled "Winning" in which he excellently describes about candor and what it actually means in an organizational context (both as a leader and as a manager). I totally agree with the concept of candor but would like to know as to how far can this concept be stretched!?? Is it too good to be frank?? Is freedom from prejudice the best thing at all given occassions?? Is it OK to be impartial at all times?? Is it good to be open at all times and to all people?? Well, I believe, obviously the answers to the above is an "Unconditional NO" for the simple reason that everyone is a prisoner of his / her own experience and no one can eliminate prejudices....u have to just recognize em'! Feel free to share your thoughts...

The Thinkers 50 Ranking

2005-12-03T14:49:00.000+08:00

Produced by Suntop Media in association with the European Foundation for Management Development (EFMD), the Thinkers 50 2005 provides a new ranking list. Top-5 thinkers are ....1) Michael Porter, 2) Bill Gates, 3) C.K.Prahalad, 4) Tom Peters and 5) Jack Welch. Other Notable Thinkers include Jim Collins (6), Philip Kotler (7), Henry Mintzberg (8), Gary Hamel (14), Stephen Covey (18), Rosabeth Moss Kanter (19), Robert Kaplan & David Norton (22) to name a few. Four notable Indian thinkers who appear in the list are C.K.Prahalad (3), Ram Charan (24), Vijay Govindrajan (30) and Rakesh Khurana (33). Kudos to all u guys for making India proud!

Total Quality Management

2005-12-02T16:28:00.000+08:00

TQM - A very interesting topic indeed..Do you know what it really means?? (I mean in letter & spirit!!!)...well, actually TQM is a concept / philosophy that was introduced in the late 70s (early 80s) inorder to involve everyone (TOTAL) in the organization performing all activities to conform to a set of quality (QUALITY) standards (policies, procedures, guidelines, framework etc..) that could be managed (MANAGEMENT) economically, effectively & efficiently (remember 3-Es?). The basic principles of TQM are: -

1. Quality can and must be managed.
2. Everyone has a customer and is a supplier.
3. Processes, not people are the problem.
4. Every employee is responsible for quality.
5. Problems must be prevented, not just fixed.
6. Quality must be measured.
7. Quality improvements must be continuous....remember KAIZEN?
8. The quality standard is defect free.
9. Goals are based on requirements, not negotiated.
10. Management must be involved and lead.
Therefore, the key to improving quality is to improve processes that define, produce and support products and services.

Doing is Everything!

2005-12-02T16:20:00.000+08:00

I recently received an email from a friend of mine based in the Swiss which had a very inspiring quote by Nolan Bushnell (Founder of Atari Computers) - "The critical ingredient is getting off your butt and doing something. It's as simple as that. A lot of people have ideas, but there are few who decide to do something about them now. Not tomorrow. Not next week. But today. The true entrepreneur is a doer, not a dreamer." I am absolutely inspired by this quote and therefore wanted to share it with ROW (Rest Of the World). It's so true that "Actions speak louder than words" and its always "Better late than Never".....so pull up your socks & get crackin' with whatever you wanna do (accomplish!).

Engineer vs. Manager

2005-11-29T14:45:00.000+08:00

A man flying in a hot air balloon realizes he is lost. He reduces his altitude and spots a man in a field down below. He lowers the balloon further and shouts, "Excuse me, can you tell me where I am?"

The man below says, "Yes, you're in a hot air balloon, about 30 feet above this field."

"You must be an engineer," says the balloonist.

"I am. How did you know?"

"Everything you told me is technically correct, but it's of no use to anyone."

The man below says, "You must be in management."

"I am. But how did you know?"

"You don't know where you are, or where you're going, but you expect me to be able to help U??!!

Managing the "American" way!

2005-11-29T14:34:00.000+08:00

The Americans and the Japanese decided to engage in a competitive boat race. Both teams practiced hard and long to reach their peak performance. On the big day they felt ready. The Japanese won by a mile. Afterward, the American team was discouraged by the loss. Morale sagged. Corporate management decided that the reason for the crushing defeat had to be found, so a consulting firm was hired to investigate the problem and recommended corrective action.

The consultant's finding: The Japanese team had eight people rowing and one person steering; the American team had one person rowing and eight people steering.

After a year of study and millions spent analyzing the problem, the consultant firm concluded that too many people were steering and not enough were rowing on the American team. So as race day neared again the following year, the American team's management structure was completely reorganized. The new structure: four steering managers, three area steering managers and a new performance review system for the person rowing the boat to provide work incentive. The next year, the Japanese won by two miles. Humiliated, the American corporation laid off the rower for poor performance and gave the managers a bonus for discovering the problem! Whadda way to go! Sure shot success strategy??