Culturally sensitive Marketing

Without a culturally correct interpretation of a country’s aesthetic values, a host of marketing problems can arise. Product styling must be aesthetically pleasing to be  successful, as must advertisement and package designs. Insensitivity to aesthetic values can offend, create a negative impression, and, in general render marketing efforts ineffective or even damaging. Strong symbolic meanings may be overlooked if one is not familiar with a culture’s aesthetic values. The Japanese for example consider the crane as being very lucky because it is said to live a thousand years; however the use of the number four should be avoided completely because the word or four, shi, is also the Japanese word for death. Thus teacups are sold in sets of five, not four, in Japan.

Patther Panchali

I happened to see Satyajit Ray''s 'Pathher Panchali' yesterday, and was almost moved to tears by what has been so nicely picturised by the great cinematographer.In one short film ,he was able to capture the abject poverty of the rural Bengali people, and their almost hopeless situation in life.Things are pretty much the same in any part of India, and the problems too are similar.This is despite India growing its GDP by almost 8 % every year. I guess it is the law of averages at work,with some people growing at a meteoric pace, while others showing a negative growth.And Robindranath Goes....Into that heaven of freedom ,let my country awake............!

Crime control

Law and order situation of  a county is a parameter that determines the 'country risk' which various business entities use to judge the business environment of a country.If the law and order situation is not healthy, no business man in his right mind would risk an investment in such a state or country.The law and order in our own country is not very good ,and therfore we do not attract as much FDI as many of our Asian neighbour do. There are only two ways in which crime can  be effectively controlled.

• Surveillance
• Deterrence

While the former is prohibitively expensive and impractical as it is next to impossible to keep an eye on each individual or each geographic area,most of the countries use the latter or deterrance to good effect. If a crime is commited ,the justice is often delivered swiftly and there is no appeal system.When we think of India, it seems that the cases remain pending in the judiciary for aeons and the system of appeals in a higher court actually makes a mockery of the whole system. So ,in my opinion the solution lies in firstly ensuring that there is effective deterrance by repealing the archaic IPC code, and secondly in effective implementation of these laws through the judiciary.The sysytem of appeals in a higher court should be done away with without any further delay.It may be interesting to know that in US no such system of appeal exists,and the judgement once delivered can not be challenged.Of course, the Indian government would have to ensure that the judges do not indulge in corruption. Is that a tall order?

Regressive Tax Regimen

Is it not strange that out of all the tax revenue that the government gets almost 80% comes from indirect taxes?From the govt's point of view indirect taxes are better as they are supposedly not painful to the tax giver.Do you know that when you buy one litre of petrol, 17  Rs goes in the kitty of the govt as tax, or when you buy a matchbox,25% of its value is tax.What a regressive tax regimen indeed ! The poor for whom the marginal utility of additional money is much more than for the rich pay the same taxes as the well to do.Given that the PDS system is dysfunctional , they buy the rice and sugar at the same price as you and I .And the govt has  the gall to say that it is pro poor.

360 degree

The case discussed in the class today was about the star producer of Capital market division of Morgan Stanley not being promoted to the higher level because of being rated poorly on team skills by his peers in the 360 degree feedback. Although the protagonist had  shown a steller performance and single handedly increased the market share from 2% to 12%, the decision to not promote him was taken.The case learnings are as given

• Being  a star performer is not enough. With growing seniority, team building skills are more important.
• 360 degree feedback is a tool that can help in taking better decisions and thus save the organisation from future troubles.
• The superior who was responsible to give continuos feedback to the protagonist was held equally guilty and was punished by no longer being in charge of the protagonist.Poor performance by juniors is as much a fault on the part of the seniors as on the part of the juniors.
• Many a time, we hesitate in giving a negative feedback to our subordinates fearing retaliation in the form of future disinterest in the work or we are just intent on being goody-goody.Remember that performance management system is different from performance appraisal system. While the latter appraises at the end of the year and is out  of vogue with good organisations, performance management system is a continuous process and aims at improving the performance of the subordinate during the year.
• In hindsight I feel that many a times I too have been guilty of this flaw.The quarterly feedback form that I used to submit for my subordinates usually was a hurried affair.

Chinese threat

Out of ~ 3 trillion dollar reserves that China holds , 70 % are in the form of dollar denominted US Govt bonds. What it essentially means is that the Chinese govt has loaned out this amount to the US on an interest rate of about 2 %, which happens to be the bond coupon rate.With the value of dollar dwindling day by day and the Chinese currency overvalued significantly, China is indeed in a difficult spot.What more than the fact that its economy is export dependent with most of the consumption outside the country.Further the country is in the midst of a domestic crisis which is likely to increase in the times to come with the populace seeking more right to property and free speech. The best that can happen from our perspective is that the country will implode in the medium term and wouldn't be a threat to us.Let us do something to launch an economic warfare on this country.

Another thought that comes to my mind is that we must increase cooperation with this country à la Europe, with more of their business coming to India and ours going there, so that the stakes for each other are high against  fighting a war. Both the countries can then prosper and provide  a better quality of life to their people. In the mean time it makes sense to prepare and strengthen the fences because 'Good fences make good neighbours'.Any opinions.............. 

Power Distance

India is a country with a high power distance index of 7-8.Power distance is  a factor that determines the culture of a country and means the readiness with which the junior members of the society accept the domination of the senior members.It is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. This represents inequality (more versus less), but defined from below, not from above. It is because of this that we do not speak up in meetings ,but when out of the door we end up  indulging in criticizing the proposal threadbare.Also as  a society we are more interested in the other person's affairs and are not happy minding our own.Our own promotions/rewards become less valuable to us if someone else gets the same reward/promotion, since we perceive that she doesn't deserve it. More often than not these are just perceptions since they are not based on hard facts/data.

Lovable Fools

Our professor of 'Recruitment and Selection' came up with a marvel yesterday .He said that in an organisation it is better to have lovable fools rather than competent jerks.An organisation is composed of people and a competent jerk can offend a lot of workers by his attitude and thus vitiate the atmosphere. On the other hand a lovable fool is more compatible and understands the people issues. All of us want competent people around us, but we should work out the cost benefit ratio of having them. Also we must know that it is easier to teach  a skill and turn  a lovable fool into  an intelligent contributor, while changing an attitude is almost next to impossible.

Ageing

Today afternoon when Shalini and I were at Hazratganj in Lucknow, a beggar woman came to us and had this to say,"खुदा आपकी जोड़ी सलामत रखे और आपको एक बेटा दे ". That was some compliment after almost 13 years of marriage.Shalini obviously was over the moon,with I too swooning with pride.Either the beggars are learning the power of appreciation, or we still look very young.What do you say Guys!!!! 

Mehdi Hassan

Rafta rafta woh meri hasti ka saamaan ho gayey,
Pehlay jaan, phir jaan-e-jaan, phir jaan-e-jaana ho gayey !


Din-b-din badti gehin us husn ki raaniyaan,
Pehlay Gul, phir gul-badan, phir gul-badamaan ho gayey !


Aap to nazdeek say nazdeek-tar aatay gahey,
Pehlay dil, phir dilruba, phir dil kay mehmaan ho gayey !


Rafta rafta woh meri hasti ka saamaan ho gayey,
Pehlay jaan, phir jaan-e-jaan, phir jaanayjaana ho gayey !


Pyar jab Hadd se badha saare Taqaloof mith gayey,
Aaap se phir tum huay phir tu ka Khunwaan hogayey!


Rafta rafta woh meri hasti ka saamaan ho gayey.....
*******************************************************

I am putting up this slide for the benefit of those of my friends who are not conversant with the different levels of leadership.Some good Samaritan had put it on the net.It captures all that is written in the book about the various levels  of leadership.

Good to Great-First 'Who'

The second common thread that unites great companies is that they first get the right people on the bus,and then figure out where to drive it. What it essentially means is that in a dynamic world, where things are changing every minute, and to stay stationary is to perish, you got to have people that can drive and accept  change.Vision and strategy can come later.First you should get the right people in your team, wrong people off your bus and put the right people in the right seats. Then and only then should you try to figure out where to drive the bus.With such people in your team, it is easier to change direction if the need so arises, and secondly great people are self driven and need no external motivation. They have an inner drive to excel and nothing which is not exceptional is acceptable to them.Good to great companies place more emphasis on character traits in their recruitment decisions as they feel that skills and competencies can always be taught,but what cannot be taught or changed is the inner fibre of a person.

It is but natural that great companies are tough places to work,and rightly so. They are not ruthless,but they are rigorous.Being ruthless is akin to cutting down on manower just because you have to.On the contrary, being rigorous means to have exacting standards, and to show the door to anyone who doesn't match up .If you continue to have laggards in your team, then in a way you are ruthless to your high performers, as they are forced to carry the load of these laggards.Three practical principles as advocated by Jim Collins for being rigorous in making people decision are:

• When in doubt, do not hire. Keep looking
• When you need to make a people change, act and do it fast.
• Put you best people on your biggest opportunities, rather than on the problems.

Have people in your team who debate vigorously in search of best answers,and talk without  fear or favour,but once a decision is taken,then they unify behind that decision ,regardless of their parochial interest or previous opinions. 

Low Cost carriers

As per the reports in the newspapers, the 'cost per seat km' for full service airline carriers has come very close to that for the low cost carriers,and the fact is being celebrated as a great acheivement of cost cutting initiatives.But I feel that the comparison is not right as the benchmark of performance comparison is flawed.The so called low cost carriers of India can hardly be called so , when compared to the leader in such an industry. Consider Southwest Airlines which is a model and is discussed extensively in B-schools worldwide. How does it control costs? Some of the strategies that it follows,and which come to my mind as of now are given below:

• A standard fleet of aircraft optimises maintenance and training aspects. Is there a lesson for IAF here that has so many type of aircraft in its fleet?
• Turnaround time is just about 15 minutes. This helps in aircraft being airborne for more number of hours leading to more productivity. How much time do we take in turn around and in loading and offloading.Those of you who are students of military history will remember as to how this was used successfully by the Israelis in 1967 war.
• Short haul flights obviate the need for in flight catering.Some of our LCCs continue to provide light refreshments onboard as a way of differentiating themselves from the other airlines. Remember that the cost incurred is not just that of the meal, but it involves the whole value chain that facilitates the meal for the customer. No wonder the airlines find themselves in the red.
• The LCCs continue to operate to the congested airports where the landing and other charges are high. On the contrary , Southwest operates to smaller regional airports.There is a lesson for the government here to open more airports to civil traffic. I see no reason why the infrastructure, including the airspace used by IAF should not be shared in the larger interest of the nation.
• Southwest does not allow baggage other than hand baggage. None of our carriers impose this restriction.Travelling light will not only lead to reduction of ac weight that will lead to lesser fuel consumption , but lesser time will be lost in luggage transfer and security checks.

The airlines in India could incentivise the use of the internet for booking or alternatively impose  a penalty for counter booking. This will reduce the requirement of having a counter at the airport , thereby saving costs. If all the above ideas are implemented in India for the LCCs, then and only then could they be really called low cost carriers. Only then should the full service carriers compare themselves to these operators. Till then there is a long way to go.

Strategy-Mankind Pharma

Mankind Pharma is a company that operates in pharmaceutical industry, which happens to be highly fragmented with the share of even the market leader being just about 5%.To make a mark in such an industry, this company did the following:

• It studied the market and found the Indian market to be extremely sensitive to prices. Therefore it concentrated on providing good quality medicines at  a low price.This helped the company make  a mark with the customers.
• Decided not to have any of its own manufacturing plants to save on capital investments and the fixed costs. It outsourced all manufacturing to the existing companies, as there was an overcapacity in the industry.It was thus able to keep its costs low.
• It followed the loose bricks strategy. Instead of fighting the established players head-on in metros and other tier 1 cities, it concentrated on selling its products in tier II and tier III cities.It was thus able to capture this market.
•  Besides paying a fixed salary to the salesmen, it paid a major amount as a variable performance incentive so that the salesmen would work their guts out to improve sales.

The company has done well till now as it was operating in anti- infective drugs, but going forward into lifestyle drugs, it may find itself on a sticky wicket, unless it decides to have its own manufacturing facilities.Those of you who are interested in reading the full article,may refer to BS dated 03 Nov 2009. 

Good to Great

I have been reading this book 'Good to Great' by Jim Collins,and find it an extremely interesting read. The book is basically trying to find out the factors that differentiate the good companies from the ones that are great. The methodology involves picking up those companies out of the fortune 500 list, that have shown a meteoric rise in performance beyond a transition point, and have sustained that performance for at least 15 years.A time of 15 years has been chosen to isolate those companies, whose great performance is a one-off case, possibly because of some single rejuevnating factor like good leadership or some other market/environmental variable.Normally companies that show good performance for so long  follow certain enduring principles of success, and would have seen at least two change of leaders. The performance of these companies has been compared with laggards in the same industry, and also with good performers who were unable to sustain the momentum after a meteoric rise.What emerged out of this research was a list of 11 companies, one of them being Gillete.There is a common theme that runs across these companies. For today, let us take the first common factor across these star performers.I will try to follow up with more in the days to come.

Level 5 Leadership: There are five levels of leadership-level 1 to level 5.I expect most of my friend to have crossed the four levels, and would not waste time by elucidiating the characteristics of those levels. It is more important to know as to what is level 5 leadership.This kind of leadership is a rare combination of extreme humility and a steely resolve. On the face of it , these people may seem to be weak, because of being too humble, but look deeper, and you will find a firm resolve. They are not the show off kind, like probably Patton,but are more like Abraham Lincoln. All the 11 companies that showed great performance had such leader at the helm at and beyond the point of transition.So what is the point that I am trying to make.One, A flamboyant guy at the helm is not necessarily good for the organisation. In fact the organisation can do without them.Second, Look around you at some great units/companies,and more often than not you will find  a level 5 leader,who is almost shy,awkardly mannered,away from media/attention hype, working quietly with a steely resolve to change thing for the better,rather than continuing with the status quo.  

Banking Stocks

Banking stocks in India have been taking a drubbing since yesterday,and are expected to do so for some more time.The main reason seems to be the indication by the RBI Governor that the days of an easy monetary policy are numbered, and there is likely to be  a tightening of the same in the next review that is to happen in January.Another reason is  the higher provision for loan losses that the banks are supposed to make now.A tight monetary policy will be an imperative in order to control the inflation which is hurting the poor.The interest rates will rise due to lesser liquidity and increased cost of funds for the banks,and the credit which is the lifeline of the economy will slow down.As of now the rates of Cash reserve ratio, Repo rate and reverse repo rate have been left untouched, unlike the government in Israel and Australia.The knee jerk reaction on account of raising of the Stauatory Liquidity ratio from 24 to 25% was unwarranted as the banks are already maintaining this ratio at 27% which is more than that required by the statute.Sentiment in case of the banking stocks has been affected,and may be rightly so.

Advise: Buy on dips for margin trading,but exercise caution while investing  

Pain at IIM

When I was at National Defence Academy , I used to experience the following kind pf pains:

• Pain in the legs due to too much of running uphill
• Pain in the back because of front rolling,and carrying load.
• Pain in the head because of Maharaja position( ragging by seniors)
• Pain in the forearms because of rope climbing
• Pain in the stomach muscles because of upper circle on the beam

Here in the IIM , the pains are of a different type, and some of them are really of  a rare kind. Pain in the neck and eyes because of working long hours on the computer is understandable, but what I had never experienced earlier, and hopefully will never experience again is the pain in the fingers and the thumb because of writing exams for as much as nine hours on a single day!.......God help me to keep myself physically strong,mentally alert and morally straight...goes the NDA prayer

Adam's equity theory

If we feel that inputs are fairly rewarded by outputs (the fairness benchmark being subjectively perceived from market norms and other comparable references like peers) then generally we are happier in our work and more motivated to continue putting in at the same level.If we feel that our ratio of inputs to outputs is less beneficial than the ratio enjoyed by referent others, then we become demotivated in relation to our job and employer.People respond to a feeling of inequity in different ways.

• Generally the extent of demotivation is proportional to the perceived disparity with other people or inequity, but for some people just the smallest indication of negative disparity between their situation and other people's is enough to cause massive disappointment and a feeling of considerable injustice, resulting in demotivation, or worse, open hostility.
• Some people reduce effort and application and become inwardly disgruntled, or outwardly difficult, recalcitrant or even disruptive. Other people seek to improve the outputs by making claims or demands for more reward, or seeking an alternative job.

Understanding Equity Theory - and especially its pivotal comparative aspect - helps managers and policy-makers to appreciate that while improving one person's terms and conditions can resolve that individual's demands (for a while), if the change is perceived by other people to upset the Equity of their own situations then the solution can easily generate far more problems than it attempted to fix.Equity Theory reminds us that people see themselves and crucially the way they are treated in terms of their surrounding environment, team, system, etc - not in isolation - and so they must be managed and treated accordingly.

A marvel from Mehdi Hasan

AB KE HUM BICHRAY TO SHAYAD KABHI KHWABON MEIN MILEIN
JIS TARHAN SOOKHAY HUAY PHOOL KITABON MEIN MILEIN
AB KE HUM BICHRAY TO SHAYAD...
DHOND UJRAY HUAY LOGON MEIN WAFA KE MOTI
YE KHAZANAY TUJE MUMKIN HAI KHARABON MEIN MILEIN
AB KE HUM BICHRAY..
TU KHUDA HAI NA MERA ISHQ FARSHTON JAISA
DONON INSAAN HAIN TO KION ITNA HIJAABON MEIN MILEIN
JIS TARAN SOOKHAY HUAY PHOOL KITABON MEIN MILEIN
AB KE HUM BICHREIN TO SHAYAD...
GHUM E DUNYA BHI GHUM E YAR MEIN SHAMIL KAR LO
NASHA BARHTA HAI SHARABI JO SHARABON MEIN MILEIN
AB NA WO MEIN HON NA TU HAI NA WO MAZI HAI FARAZ
JAISAY DO SAAAY TAMANNA KE SARABON MEIN MILAEIN
JIS TARAN SOOKHAY HUAY PHOOL KITABON MEIN MILEIN
AB KE HUM BICHRAY TO SHAYAD........

Reflections

Life is a great gift that has been given to us by the almighty. Duuring our lifetime, we make a lot of friends, develop a lot of relationships, and are emotionally involved with our parents, brother, sisters,children, and even mere acquaintances. Each person leaves an impression on us,and we do the same on him. More often than not, we are so involved with our busy life,or just living in the moment, that we do not reflect on anything at all. I happened to see a song on youtube today that is affecting me  in a weird way.  I get a feeling that we should always be good to whosoever we come in contact with, because you never know when that person will no longer be around, for you to say goodbye.http://www.youtube.com/watch?v=1wtztH8op0w&feature=related 

High performance work system

A high performance work system is an integrated set of human resource management policies and practices that together produce superior employee performance.In fact, a growing body of evidence shows that the best performing companies in a wide range of industries perform so well in part because of their high performance work systems. While there’s no hard and fast rule about what comprises high performance work systems, most organizational psychologists would agree they include these practices:

1) Employment security

2) Selective hiring

3) Extensive training

4) Self managed teams and decentralized decision making

5) Reduced status distinctions between managers and workers

6) Information sharing

7) Contingent (pay-for–performance) rewards

 Transformational leadership (for instance, in terms of inspirational motivation).

9) Measurement of management practices

10) Emphasis on high quality work.

Productivity

Source : Asian Development Bank


What could be the possible reason for the low productivity levels of this country? Is it to do with our work culture, or is it to do with the rather low level of accountability that our superiors demand from us? I guess it is a combination of both the factors.In the context of the public sector, the horse does not get adequately rewarded , while the donkey does not get punished.

customer service

Cultural Dimensions

The following dimensions of culture given by Hofstede are useful while dealing with people of other countries, or taking decisions that have cross cultural connotations. I have taken them from the net and reproduced here verbatum

Power Distance Index (PDI) It is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. This represents inequality (more versus less), but defined from below, not from above. It suggests that a society's level of inequality is endorsed by the followers as much as by the leaders. Power and inequality, of course, are extremely fundamental facts of any society and anybody with some international experience will be aware that 'all societies are unequal, but some are more unequal than others'.This is high in our country,as compared to the west

Individualism (IDV) This on the one side versus its opposite, collectivism, that is the degree to which individuals are inte-grated into groups. On the individualist side we find societies in which the ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family. On the collectivist side, we find societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty. The word 'collectivism' in this sense has no political meaning: it refers to the group, not to the state. Again, the issue addressed by this dimension is an extremely fundamental one, regarding all societies in the world.

Masculinity (MAS) This versus its opposite, femininity, refers to the distribution of roles between the genders which is another fundamental issue for any society to which a range of solutions are found. The IBM studies revealed that (a) women's values differ less among societies than men's values; (b) men's values from one country to another contain a dimension from very assertive and competitive and maximally different from women's values on the one side, to modest and caring and similar to women's values on the other. The assertive pole has been called 'masculine' and the modest, caring pole 'feminine'. The women in feminine countries have the same modest, caring values as the men; in the masculine countries they are somewhat assertive and competitive, but not as much as the men, so that these countries show a gap between men's values and women's values.

Uncertainty Avoidance Index (UAI) It deals with a society's tolerance for uncertainty and ambiguity; it ultimately refers to man's search for Truth. It indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. Unstructured situations are novel, unknown, surprising, different from usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules, safety and security measures, and on the philosophical and religious level by a belief in absolute Truth; 'there can only be one Truth and we have it'. People in uncertainty avoiding countries are also more emotional, and motivated by inner nervous energy. The opposite type, uncertainty accepting cultures, are more tolerant of opinions different from what they are used to; they try to have as few rules as possible, and on the philosophical and religious level they are relativist and allow many currents to flow side by side. People within these cultures are more phlegmatic and contemplative, and not expected by their environment to express emotions.

Long-Term Orientation (LTO) versus short-term orientation: this fifth dimension was found in a study among students in 23 countries around the world, using a questionnaire designed by Chinese scholars It can be said to deal with Virtue regardless of Truth. Values associated with Long Term Orientation are thrift and perseverance; values associated with Short Term Orientation are respect for tradition, fulfilling social obligations, and protecting one's 'face'. Both the positively and the negatively rated values of this dimension are found in the teachings of Confucius, the most influential Chinese philosopher who lived around 500 B.C.; however, the dimension also applies to countries without a Confucian heritage.

In the above diagram,x axis represents the ability of  an employee, while the y axis reperesents his willingness to work, or the attitude in short. The four quadrants represent the four type of workers found in various organisations.A manager's job is to find who lies where, and then take appropriate action.We start with quadrant 1(red colour) and then go clockwise from 2 to 4.

• People who are low on ability, and low on willingness to work are generally the result of faulty selection procedures. They should be shown the door at the earliest,as investing in them will lead to waste of organisational resources. They are also a big drag and demotivator for the star performers in the green quadrant.

• People who are high on  both the attributes are an organisation's star performers. These people are driven more by their personal self than by the organisation self.This only means that they work for professional pride.They have  a high degree of need for achievement, and are constantly looking for targets that are challenging.Not  acheiving the targets make them frustrated ,and therefore they try their guts out to get it right the very first time. It is difficult for these people to work in  a bureaucratic organisation, as they like independence and blossom the best in  such environs.The implications for the organisation are that the manager should provide them opportunities to acheive and secondly, value extraction from them should be shortened as they are not likely to stay in one place for long.

• People who are high on ability and low on willingness are the ones that are most difficult to handle. If a manager is able to engage them meaningfully ,by providing a direction and purpose , they can be then moved to the green quadrant.They are those people around you who are seen as the problem mongers.You need to be diplomatic with these guys.Be a coach and counsellor to these people and play the developmental role that the organisation demands of you.

• In our second quadrant are the people who are low on ability and high on willingnss.They are highly energetic and enthusiastic. Since it is relatively easy to teach a skill ,but difficult to change an attitude, it is quite easy to train them so that they move to the green quadrant.

So the bottom line  is to first identify the quadrant in which the employee belongs, and then take appropriate action. You will do a great service to your organisation, if you follow these guidelines.

The Company that We Keep

Do I need to say anything at all?China is conspicuous by its absence...and we have the gall to match them in the amount of firepower!

Creativity and Innovation

It is easy to be creative ,but extremely difficult to be innovative.Is there a difference between the two? Well, there is ,and a good one at that. Creative people are the ones who throw up ideas , but who do no have the energy and the passion to follow through. They are typically the 'consultants' kind. On the other hand, innovators are those who take the idea forward to its fruition. They are the ones who really get down to the brass tacks.Creativity is thinking new things, while innovation is doing new things. And there is hell lot of difference between the two.If you observe people around you, you will find that there is no dearth of creative people. These are the people who have ideas on changing the status quo...but what organisations lack are the people who have it in them to get down to the nuts and bolts of the issue.There are three things that are necessary in a manager. He should know the following

What to change?
What to change to?
How to change?
So the next time someone is trying to give you Gyan,ask him to take up the mantle if he really means business, or else politely tell him to shut up.

Jet Imbroglio -Union vs Association

As per Section 2 (s) .- of the Industrial Disputes Act 1947.- "workman" means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person

(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957); or

(ii) who is employed in the police service or as an officer or other employee of a prison; or

(iii) who is employed mainly in a managerial or administrative capacity; or

(iv) who, being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per month or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.

My View

Going purely by the above definition, civil pilots do skilled manual labour, and are not employed mainly in a managerial or administarative capacity. Their decisions ,barring those related to actual performance of manual labour ie flying, do not impact the wider organisation.Therefore it is clear that they are entitld to form a union which is a right granted to workmen. On the other hand employees who are working in an administative/ managerial capacity as officers can only form an association.Since the pilots do not fall in this category, I do not know why they should not be allowed to form a union, and thus have more rights under the ID Act. But on the flip side they will have to settle for the title of 'workmen' and not 'officers', pay and perks notwithstanding, as these are purely a function of the demand-supply gap in the present context.

Learning from the little ones

We went to a bakery yesterday evening in Lucknow. My daughter aged 10 was quietly enjoying the sandwiches, while I like a doting papa was just watching her.She saw a complaint/suggestion box nearby, and asked me,"Papa, Would you like to suggest something to improve the service here."Promptly, I answered in the negative.My daughter looked at me and had this to say."You are a managenment student, papa, and you should or rather must think of something."I was just left speechless , and thought to myself that we all must think about improving things wherever we go and also put it in writing. Children can teach so much to us ,and also shake us out of our stupor.

Investing in Stocks

Beware retail investors. The graph clearly shows that your investment is highest just before the crash. It often happens because people think that they have probably missed out on the party, and therefore enter at the wrong time.You should be buying when everyone sells and viceversa.

Parkinson's Law

This old adage explains so much of what happens in our daily life.The law first propounded by Parkinson in 1955, resulted out of his experiences with the British bureaucracy.Consider the following:

• Work expands so as to fill the time available for its completion.
• Data expands to fill the space available for storage.
• The demand upon a resource tends to expand to match the supply of the resource.

A second aphorism, attributed to Parkinson and sometimes called "Parkinson's second law", is "Expenditures rise to meet income".A modern version is that no amount of computer automation will reduce the size of a bureaucracy.How True!Some things will never change.

Time

One of our professors' who teaches 'Manufacturing Systems Design' had this to say about the concept of time, as it applies to us.In the west, the time is linear which means that once you cross a point on this line, you can never come back to it. On the contray, for the Indians, it is circular. This is reflected in our belief in rebirth, poetic justice etc, and also in our songs. Consider this one, for example," Kaal ka Pahiya Ghume bhaiya" .Does that explain the fact that we and our public services are hopeless as far as punctuality is concerned?

Six Sigma

Six sigma is an indicator of quality.All the good companies lay a lot of emphasis on quality, because according to many experts on quality, it comes free. You have to pay a price for quality in the short term, but in the long term, it more than pays you back.You avoid the cost of rework or reacquisition of equipment.In quantitative terms, six sigma quality is the probability of having just 3.4 defective parts/ processes in a million processes.Many organisations have achieved this level of quality or are trying to reach there by following strict procedures.While it is relatively easy to acheive quality till about 3-4 sigma by following qualitative techniques, it is not possible to do so as you go higher without objectivity and quantification of performance.The processes that are needed to be followed are as given below:

• Define
• Measure
• Analyse
• Improve
• Control
• Standardise

Are these processes being followed in your organisation?Have you defined the job of your subordinate in quantitative terms. Does she know the performance parameters being measured or is your organisation following fuzzy attributes of judging performance subjectively. Look at your Appraisal report and you will be amazed at the subjectivity in the whole process. You may be loyal in the eyes of one superior because you are ready to do all his bidding at an operational level, but not so to another who expects you to participate in psuedo welfare activities.In the context of my previous organisation, a commanding officer should be hauled over the coals(figuratively speaking) for

• Operational inefficiency( Just effectiveness is not enough)
• someone commits suicide in his unit
• For cases of fragging
• Increasing accidents/ incidents
• Low level of personnel motivation
• Increasing applications for release from service
• Disinterest amongst personnel towards professional courses

There could be negative/positive points for all these and many others that are applicable.Only a quantitative technique of performance measurement and analysis can save an organisation from a slow death.

Daily Trading

Lately I have fallen prey to the dangers of daily trading in equities. While I keep my targets low, and exit without making a loss, and aftermaking some profit, I do wonder if it is really worth it.On the positive side it gives me a lot of satisfaction at having hit the bull's eye,but on the negative side I feel that if I put a value to my time, I am actually making a loss.But what is my time's worth.It will depend on the salary that I draw from my employer.If I do not earn about Rs 600 every hour that I trade , I am actually making a loss,because I end up misusing my employer's time.For students it could be the waste of their parent's hard earned money.I do not know if I am thinking in the right direction, but that's what comes to my mind today.And also consider the risk that comes with trading.Investing, I think, is a better option, since you do not have to be glued to the ticker.

Professionalism

I have been having this uneasy feeling for many days that there is a serious lack of professionalism in whatever we do as compared to the standarsd set by some of the western nations.I had the opportunity to watch the movie on 'Exercise RedFlag',made by Boeing/IMAX ,and was amazed to see the technology in use in warfare.When I look back at my own experiences , I find that we are way behind the westerners ,both in our attitude and our capability.We do have some real bright people, who can and who regularly work wonders,but there is quite a malaise at a broader level.For us to improve , we need to look for ways of making a difference for the better in our own area of influence.There has to be a real effort at the use of technology to improve things.

Ethics and Morality

The difference between ethics and morals can seem somewhat arbitrary to many, but there is a basic, albeit subtle, difference. Morals define personal character, while ethics stress a social system in which those morals are applied. In other words, ethics point to standards or codes of behavior expected by the group to which the individual belongs. This could be national ethics, social ethics, company ethics, professional ethics, or even family ethics. So while a person’s moral code is usually unchanging, the ethics he or she practices can be other-dependent.
When considering the difference between ethics and morals, it may be helpful to consider a criminal lawyer. Though the lawyer’s personal moral code likely finds murder immoral and reprehensible, ethics demand the accused client be defended as vigorously as possible, even when the lawyer knows the party is guilty and that a freed defendant would potentially lead to more crime. Legal ethics must override personal morals for the greater good of upholding a justice system in which the accused are given a fair trial and the prosecution must prove guilt beyond a reasonable doubt.

Pride and Ego

While in the class today on 'Strategic Business Negotiation, a student asked the professor the difference between pride and ego.I have been able to reflect on the issue.Here is the answer.....Pride in oneself is a positive feeling that a person has when he thinks about his achievements. It is necessary for all of us to be proud of ourselves. You could be proud of the fact that you have topped all the courses the you have done till now.Ego on the contrary is a negative feeling. Pride results into ego when the focus shifts from 'skills' to 'self'.If a person starts thinking that he is the best and all others are inferior to him because of the skills that he has, pride has slowly mutated into ego which is a dangerous thing. I have found that the initial step towards self growth lies in controlling one's ego.

Ghalib is God

Ye na thee hamaree qismat ke wisaal-e-yaar hota ;agar aur jeete rehte yahee intezaar hota (It was not in my fate to meet my lover, had I lived longer, this would still be my only desire)
Tere waade par jiye ham to ye jaan jhoot jaanaa; ke khushee se mar na jaate agar 'eitabaar hota (To live on your promise is to make my life a lie,would I not have died of happiness if I trusted it )
Teree naazukee se jaana ke bandha tha 'ehed_booda ;kabhee too na tor sakta agar oostuwaar hota (From your frailty I learnt that the promise was delicate; it would not stand broken had you been determined)
Koee mere dil se pooche tere teer-e-neemkash ko; ye khalish kahaan se hotee jo jigar ke paar hota (Someone ask me about your half-drawn arrow ,would I even feel this pain if it had pierced my heart)
Ye kahaan ki dostee hai ke bane hain dost naaseh; koee chaarasaaz hota, koee ghamgusaar hota (What kind of friendship is this, that friends are now advisers, someone should ease my pain, someone sympathize with me)
Rag-e-sang se tapakta wo lahoo ki phir na thamta ;jise gham samajh rahe ho, ye agar sharaar hota (As from every nerve drips blood without restraint, if that which you think is anguish is but a spark)
Gham agarche jaan_gulis hai, per kahaan bachain ke dil hai ;gham-e-ishq gar na hota, gham-e-rozgaar hota (Threatening as love is, there is no deliverance from the heart ,if not the torment of love, it would be the torment of life)
Kahoon kis se main ke kya hai, shab-e-gham buree bala hai; mujhe kya bura tha marna agar ek baar hota (Whom shall I narrate the pangs of these evenings of sorrow, Ii would have not resented this death, had it come only once)
Hue mar ke ham jo ruswa, hue kyon na gharq-e-dariya; na kabhee janaaza uthata, na kaheen mazaar hota (That I died and was disgraced, why was I not just drowned, never would have been there a funeral, nor a tomb erected)
Usay kaun dekh sakta ke yagaana hai wo yaktaa ;jo dooee ki boo bhee hotee to kaheen do chaar hota (Who can see him since his Oneness is without peer ,even the scent of his duality would be an introduction)
Ye masaail-e-tasawwuf, ye tera bayaan 'Ghalib'! ;tujhe ham walee samajhate, jo na baada_khwaar hota (This mysticism, these statements of yours Ghalib,you would be a saint, if only you were not inebriated)

Character

The history of man is the history of a life and death circle that keeps on moving incessantly.To me, it is a story of countless beginnings and ends.Out of all this drama of creation and annihilation, the only people who stand out are the men of noble character.These men shall live in the history of mankind for ages, because they have something that makes them immortal.It is not the worldly riches and prosperity, nor material wealth, that is the noblest of all human possessions.Character exemplifies human nature in its best form.Always do what your conscience tells you to do.
A word about courage. It is not the courage of a bull dog that is important in a human being , but the moral courage to say no under pressure, and to do what you believe in truly that really matters.Remember that at the end of the day, you are answerable to yourself ,and no one else.

Social Responsibilty

Over the weekend, I went to Nagpur.I have some really fond memories of the place, because it was here that I had met some very sweet and kind people.My married life had also started here. I found the town really changed and was face to face with extreme poverty. Beside the Yashwant stadium, there was this group of people-probably vagabonds -that was living their life on the roadside. I saw my country in its harsh reality, with the future staring at me through the snot covered faces of malnourished pot- bellied children. How can the government allow this to happen?Is it not possible to come out with a social security scheme ,through which everybody is given a house, and a basic sustenance allowance.I felt really helpless at my inability to affect the lives of such poor people in an effective manner.

Why can't the government be more efficient? Why can't it direct the subsidies to those who need them, rather than to everybody? Is it such a difficult task? I see no reason for many, including yours truly ,to be enjoying the subsidy on petrol and LPG? Why...?There are only questions today in my mind.Small doles of help are not going to be of much use. You need a policy intervention.Poverty is a curse, which I hope the new govt works on!

Effective Management

The difference between a leader and a manager is well known. To use an analogy- 'If there is a forest to be cleared, the leader will tell you where to cut, while the manager will tell you how to cut'. An oft heard cliché is, “The leader does the right things, while the manager will do things right”. The roles performed are not exclusive of each other as a person is sometime a leader, and sometimes a manager or both. It is important for a leader to know certain principles of managing effectively.

While there are as many styles of management as there are managers, there still is a unique quality that sets a good manager apart . An average manager plays checkers while a brilliant one plays chess. What’s the difference? Well... In checkers all the pieces are same, they move at the same pace and on parallel paths. Their roles are interchangeable. It is not so in chess. Here each piece is different. You won’t be able to play the game unless you know the way in which each of the piece moves. Great managers know how each piece moves. They know the weaknesses and strengths of each employee, and utilise them accordingly for a well coordinated attack on the task at hand. A leader may say, Well!... What about development? My personal opinion is that it is better said than done. Try to train someone who doesn’t speak much to be an MC for the next social function, and revelation will dawn on you sooner than you may think. A manager’s job is to turn one person’s talent into pure performance. A manager should know that no person, however talented, is well rounded. A manager can only succeed if he is able to identify each person’s unique ability. Capitalising on each person’s unique strength saves time, and time is of essence in today’s fast paced world. It also creates a stronger team as interdependencies are created. People learn to appreciate each other’s unique skills and are not hesitant to ask for help. If you have read the author Stephen Covey, you would know that Interdependence is a higher value than independence.
It takes a lot of time to figure out people’s strength, unless of course you have known them for many years. To know your people well, you should be out of your office at the scene of action, watching, noting people’s reaction to events, listening and asking questions. There is no substitute to this kind of observation. It also does wonders to their morale. 'The more time you sit in the office, less effective you will be', is generally true in organisations where teamwork is important.
Let us now discuss as to what is a strength and what is a weakness.A strength is not necessarily something which a person is good at. It is something which he enjoys doing and brings out the best in him. Likewise, a weakness is not something a person is bad at. It is something, which a person hates to do or tries to avoid doing. Although as a superior you should know both the weaknesses and the strengths of those below you, you should focus more on the strength, as that is what you need to leverage. You should also reinforce the strength by saying something like... “Hey Anjali, You are really good at designing stuff”. This will further increase the self assurance of the person.
At times you may be pushed into a corner. You want to work on people’s strength, but are forced by circumstances to work with someone’s weakness. What to do in such a case? Try the following
· Offer relevant training to the person, allow time for incorporation of skills, and look for the signs of improvement.
· Look for someone with complementary skills and put her on the team
· Try to adopt a process that achieves the aim through discipline ,rather than instinct.
A manager should also be alive to the fact that good performance requires triggers. One employee’s trigger might be tied to the time of the day, while for someone else a ‘Dusting of the non-existent dirt on the shirt, signifying care’ might do the trick. Somebody may require constant feedback, while another may construe it as micromanagement. By far, the most important trigger is recognition. For effective recognition, you must know the audience the person plays by. There was this person in my previous organisation who only used to feel good when appreciated one-on-one, while there was another who needed to be appreciated in front of his peers. And you will find an odd guy who will cherish a written proof of your appreciation, so that he can proudly hang it in his drawing room.
So ,the bottom line is that you should play chess and not checkers with your employees. Never try to push a knight into doing what a bishop does or vice versa. Do not treat everyone alike. Someone might need a kick on his.... (And believe me, he will love you for it), and for someone a kind word is necessary. Play on people’s strengths, if you are to succeed at your jobs, and if you want to achieve more in less time

What is Love?

When you fall in love,it is temporary madness.It erupts like an earthquake and then it subsides. And when it subsides, you have to make a decision.You have to work out whether your roots have become so entwined together, that it is inconceivable that you should ever part. Because this is what love is.

Love is not breathlessness. It is not excitement. It is not the desire to make love every second of the day. It is not lying awake at night, imagining that every part of your body is being kissed. That is just being in love, which many of us can convince ourselves we are in.Love itself is what is left behind, when being in love has burned away.

-----From 'Captain Corelli's Mandolin'

Emotional Intelligence for Leaders

What is it that makes a great leader?Is it intelligence,analytical ability,capability to motivate others or is it the ability to see far ahead? While all these attributes are essential in some degree or another, an important facet of an individual's personality that distinguishes an outstanding performer from just another guy is Emotional Intelligence.According to Daniel Goleman, there are five attributes to this holy grail,namely

• Self Awareness
• Self Regulation
• Motivation
• Empathy
• Social Skill

People with a high degree of self awareness know their weeknesses, and more importantly, they are not afraid to talk about them.Remember Patton , the great general! He was aware of his weekness of not being able to keep his mouth shut when required, and was not ashamed of it. We also must know that self awareness is the first step to change. Most of us generally amble along a lifetime without actually developing this essential trait.
Self regulation flows from the above trait.If a person is not able to regulate his behaviour, then self awarenesss is of hardly any use.If you know that an arguement with your wife may force you into saying things that you may later regret, then in that case quietly slipping out of the house for a peaceful walk wouldn't be a bad idea.Patton was low on this trait and that is why he lost out to Bradley and Montgomery.
Motivation for its own sake, that is, desire to acheive excellence,without an eye for the rewards that may follow is the kind of motivation that true leaders possess in abundance.If you are able to find such a man around you, hold on to him because you have for sure struck gold.
I am sure that all of you know that it is important to empathise with other people.You must put yourself in their shoes and then take a decision that is likely to affect them. In my many years with an organisation, I have come across people who forget this tenet conveniently.They have one set of rules for themselves and another set for the rest of the world."It is good to help when asked , but it is better to help unasked-through understanding",is what was said by that great philospher, Khalil Gibran.
And Finally, a word about social skills.The ability to build rapport with others, get them to cooperate, and make them move willingly in a direction that you desire is the hallmark of a person who possesses social skills. It is also known as networking. Networking is often seen in a negative light by people who are self made, but let me tell you that it works wonders. Your work gets done in minutes. Being sociable is not the same as having social skills. Social skills comprise of friendliness with a purpose.You can only frown at these skills at the cost of delaying your work.
So , is it then possible to develop these traits? Oh yes, very much!It requires a deliberate effort, regular practice and a feedback from your sounding board.

Poetry For Love

He that loves a rosy cheek
Or a coral lip admires,
Or from star like eyes doth seek
Fuel to maintain his fires;
As old time makes these decay,
So his flames must waste away

But a smooth and steadfast mind,
Gentle thougts and calm desires,
Hearts with equal love combined,
Kindle never dying fires:
Where these are not, I despise
Lovely cheeks or lips or eyes.
-----T Carew

Customer service at ICICI

Around a decade back when ICICI started its business in india ,it was one of the great banks to do business with.There were a lot of differentiating factors that worked in its favour, and it took a lead in a very short time. But lately things have changed for the worse, because the bank has been taking its customers for a ride. It has probably forgotten that it is in the service business. I have the following comments to make

• The managers in the bank are not approachable and when they do give you some time, they hardly look up from their excel sheets.Undivided attention is what a customer seeks and the bank is not sensitive to this simple truth.
• The charges are pretty steep, and the bank does not lose any opportunity in levying a fine and thereby making a quick buck in these recessionary times.
• The form for closing the account does not even have space for giving the reason for closing the account.It seems that the bank does not care to know the reason for defection to other banks.
• General perception amongst people is that the bank tries to outsmart its customers.
• Even the corporates have started moving their funds away from the bank. Recently Infosys moved a huge amount to SBI.
• Rising NPAs,dwindling CASA ratio,alleged use of henchmen as recovery agents,poor rating on customer service, loss of differentiating factors,leadership and talent defection to Axis Bank et al point to the inevitable collapse .