Sunday, March 29, 2015
Tribute to that master story teller - K Balachander
Friday, September 21, 2012
Defining the problem statement is really half the problem solved. How profound and how so easily not followed?
“Team, excellent solution. But can somebody just tell me as to what problem is this solution intended to solve? If you had bothered to look at this case properly, you would have noticed that it is about a mattress company that is losing market share. It is also rather intuitive that Mattress firms don’t sell their products through a call center. A little bit of analysis on their financials and product portfolio would have told you that. And you are telling me that you want to implement a Siebel-Java-SAP-Ab-initio solution which will generate reports that will very likely tell me the info that I already have today?”
Problem definition is the first and the most important step in any problem solving exercise. It is very important to hold on to solution finding till we have probably defined the problem. But any good problem definition requires the participants to analyze the landscape fully and come out with the right facts that would help put the jigsaw of the problem in perspective. Many a times, people come to the table with half-done analysis and then try to define the problem in a haphazard manner which further confounds the problem solving. A common mistake is to identify a symptom and conclude that it is the problem. A headache is rarely a problem but is a symptom. The problem for this symptom could be as drastic as a brain tumor or as simple as not having had adequate breakfast. To identify which is the problem, the physician has to systematically go through the diagnosis including analyzing various medical reports. Only then is a solution recommended.
Tuesday, September 18, 2012
Too big to fail? Is that a healthy place to be in?
Over the last few weeks, I have heard the audio book of Too Big To Fail by Andrew Ross Sorkin as well as watched the movie based on the same book, which outlines with some good insights on the 2008 credit crisis, the actions/intentions of the various key players involved and the catharsis which started with the fall of Bear Stearns and ended with the massive bailout of the financial industry by the US government through the TARP Plan. Towards the end of the movie, Cynthia Nixon (of Sex and the City fame) who essays the role of Michelle Davis(who was at that time, the Assistant Secretary of the Treasury, Public Relations) makes an interesting comment on the bankers resistance to participate in the TARP plan which kind of put things in perspective.
“These guys bring down the entire financial system. And we can’t impose any restrictions on the money that we give them to stabilize themselves because they won’t take it”
The comment is quite profound and quite bewildering to a normal observer but it comes as no surprise to those who have been through the “Too big to fail”(TBTF) phenomenon. Corporate as well as world history is littered with organizations (political/corporal/military) which also grew to a position of being TBTF and then came crashing down in spectacular fashion. The empire of Alexander, the Roman empire, Hitler’s 3rd Reich, the Soviet Union are quite a few that come to mind instantly. The corporate world especially over the last couple of decades is littered with Enron, Worldcom, Bear Sterns, Long Term Capital Management(LTCM), Lehman Brothers, AIG to name a few.
Looking at the rhetoric around “Too big to fail” makes me wonder if this exalted position is really something that an organization should aspire to achieve. Well, it does offer some compelling benefits
- Gives it unique arbitrage (read bullying) opportunities. Gives it additional leverage to arm twist competitors/suppliers/employees and even customers. (Does anybody remember Enron and California?)
- Gives it an opportunity to become a monopoly
- Aids it to influence government policies.
- Offers greater opportunities to gobble up (read M&A) smaller competitors.
- Offer additional/new pockets to hide losses/misappropriations as much as possible
- Sell the “success story” to an extent that the halo around tends to sound like the real truth.
- Does keep the shareholders happy. However bear in mind, the shareholders that matter to the corporate are only the institutional investors who buy in chunk and not the singular retail investors.
However the biggest learning from history is that almost all of these benefits are “short term pleasures” and the support structures that help create these benefits are extremely fragile. A organization which is reaching the TBTF position also inherits the following pains which significantly dwarfs the short term pleasures specified above
- They become fat and sloppy (like some of who are fighting a losing battle against body weight). They lose the ability to be agile to market changes. Even if they are, getting the entire organization to turn rapidly around proves almost gargantuan
- The arrogance which comes naturally with the TBTF position leaves tons of bad taste/enmity in the entire ecosystem. The TBTF corporate inherits the maximum number of folks who actually want to see it fail.
- Leaves the corporate open to leaks all over the place. The sheer size means that the possibility of leaks increases almost exponentially. A significant amount of senior leadership effort goes away in handling the leaks as opposed to thinking about the future (The story about Westinghouse is a good example of this phenomenon)
- Ultimately leads the management to adopt a ponzi scheme. Whether it is Hitler’s policy to keep the war machinery going in the 1930s in Germany (and building the halo of a post-depression growth explosion) or Enron trading its energy products in the form of spurious derivatives or the complex mortgage based derivative instruments that created the credit crisis, all of the TBTFs have ultimately landed themselves in ponzi schemes
So who really benefited from the TBTF firms? It is probably the rich banking fraternity or the leadership of these firms which ripped the firm off during its heydays by getting dividends/fat salaries/bonuses or capital gains by buying at a low and selling at a high (by getting insider information). The rest of the ecosystem(The employees, customers, supplier, retail investors) has had to deal with the excreta left behind due to these excesses.
Interestingly another lesson that history teaches us is that this phenomenon never really goes away. As Gordon Gekko (played so adeptly by Michael Douglas in Wall Street) says “Greed is good”, the anger after the fall of a TBTF firm is invariably replaced by investment in another similar entity which then over the next decade attains the TBTF state and then the next disaster happens.
Research done in this area like the ones documented very articulately in the book “Built To Last” by Jim Collins and Jerry Porras does allude to the fact that the more successful or enduring firms have been the ones that have learnt from these mistakes and have learnt to stay agile even if it means that they don’t reach TBTF status. Wall Street is of course a strong exception to this rule. Another recent movie that I watched, “Margin Call” illustrates this very well. Towards the end of the movie, when the CEO of the fictional wall street firm, talks to his head of trading portrayed by Kevin Spacey, he talks about the different disasters (read crashes) that have enveloped Wall Street ever so often and how that the Wall street firms are helpless. They seem to have made a business of just creating products and services which lay the basis for the next crisis. The ones that survive the crashes are so greedy to make money from the opportunities that arise from the recovery that they achieve TBTF status very fast by indulging in a number of activities(many of which are beyond scruples) geared to make sufficient money to survive the next crisis. However they may also be reaching their nadir as this time around, they needed Japanese/Middle East/Chinese financial institutions to actually bail them out this time.
So the key question for corporate leaders or governments is that whether they want to reach the TBTF status? How often do we say “How the mighty have fallen”?
Monday, March 26, 2012
How well do we harness the power of listening?
- He first wants to be seen as an understanding person and starts the conversation by saying "I agree with you". A few other euphemisms that are in vogue are "I hear you". If he really did agree with what the boss said, there was no reason for any further debate. That is a first indication that while he has been hearing to what his boss said, he has not been listening.
- The boss who in general must have a better understanding of the bigger picture has specified clearly that the client is looking for only B4 and B5 and that cost is not a major consideration at this stage. The subordinate could have disagreed with this and pointed out why he disagreed with this hypothesis. Instead he again starts with "I agree with you but". This only irritates the boss as it is very clear to him that the subordinate is not listening.
- In essence, the subordinate is fixated on the solution and feels passionately about it but not on the problem. This is good but then any solution needs to be assessed with respect to what is the problem that is being handled. Defining the scope of the problem is always the first step to defining the right solution.
Saturday, March 10, 2012
Does Fear of Failure(FOF) ultimately makes us a loser?
Thinking aloud, one begins to wonder if we are all victims of FOF in some way or the other. Our lives, habits and behavior are getting increasingly determined by not what we really want but by the peer pressure or competition which are nothing but manifestations of FOF. Andy Grove in his landmark book "Only the paranoid survive" advocated the need for firms and individuals alike to reinvent themselves so that they can be relevant to the markets or enterprises that they serve. To ensure that this is followed, he had propagated that both firms/individuals should be paranoid about the next wave that is coming and ensure that they ride the wave. Through FOF, we seem to be carrying this principle to rather ridiculous levels. Increasingly employees are getting upset not by their ratings but about better ratings that their colleagues obtain. They want to get promoted not because they performed well but because some other guy is getting promoted. Even parents or grandparents fall victims to this phenomenon as they indulge in a competition to showcase the achievements of their little kids. I came to know of an acquaintance who claimed that his 3-year old grandson could actually boil vegetables (LOL). In the name of competition or even innovation, we are slowly but surely becoming like the auto rickshaw driver. The key point to note is that this attitude did not really propel the driver to beat the traffic. As more people started adopting the same, it only lead to chaos and the driver actually had to spend more effort to reach the same point which he could have very well got to with minimal effort by following the traffic rules in the first place. Firms are no different. Advertising for instance is becoming more and more mean with firms trying to portray the virtues of their products by pointing out not what they have but by pointing to what their competition does not have. As more and more folks start doing the same, the competitive edges start getting diluted leading people to an even higher level of FOF.
FOF ensures that its advocates stay in a constant state of tension. They need to be aware of all that their peers or colleagues are doing. In many a case, this state of tension makes them undertake immoral/unethical practices that possibly may help them get some temporary competitive edge but ultimately does take its toll in different ways. Paul Coelho in his masterpiece “The alchemist” mentions that "If you try hard enough, the whole universe conspires to get it done for you”. While I subscribe to this view, I also believe in the fact that “The universe manages to retain the balance by ensuring that with every gain, there is always a loss”. In a war, every inch of land is gained through loss of lives. In most business, every marginal point increase in market share seems to come with ever increasing costs that sometimes seems to be dilute the business case for the increase in market share. Every penny obtained through illegal means brings with it a loss of peace of mind. By being victims of FOF, the practitioners do gain temporary fame or quick wins, but generally tend to lose their peace of mind or state of health.
In my personal experience, I have found that discarding this FOF gives one the tremendous confidence to do the right thing. One still has to subscribe to the rules that govern but the amount of support that the universe provides is just amazing. However discarding this attitude is not very easy and at best, I have been able to stay clear of it for weeks if not months. It does have a funny way of reinforcing its ugly head once too often.
It is indeed times like this that I keep telling my 7-month old daughter “never to grow up” lest she be engulfed in the flame of FOF. I am sure that excellence can be achieved without FOF. And that possibly is the way to make the world a better place as we would all be better human beings. But is anybody listening? After all it is time we replace the "what's in it for me?" with "what is the right thing to do?"
Saturday, February 26, 2011
First Available Reason:- Do we take it too FAR?
FAR subordinate: "Oh, it was near the airport.”
Boss: "At what time, did u get to the airport?"
FAR subordinate: "Well, at about 8:40"Boss: "Is it the usual route that you take from home?"
FAR subordinate: "Oh yeah. It is. I am an expert on this route. The traffic jam around this time is absolutely dreadful. The police don't seem to want to do anything and keep frustrating us every day"
Boss: "Indeed you are an expert. So i am sure you would know that the airport is about 35 minutes from our office even if the road was absolutely empty".
FAR subordinate: "Absolutely. I always hated our management team for putting up our office so far"
Boss: "So let me get this straight.
- You take the same route everyday
- You are aware of the fact that you will hit a traffic jam at a specific spot at a specific time
- You are aware that even if there was no traffic jam, you could still not make it your appointment.
- You also know in advance at what time was appointment.
- Still the traffic jam is the main reason why you could not make it to office in time today?"
Boss (with a smirk): "Oh, that makes sense. So it is our management that screwed up things and made it difficult for you to attend the meeting today. But I understand that you were among the guys who preferred this office as opposed to the one downtown which was not that spacious.”
FAR subordinate (now stuttering): "Of course, of course. To be honest, the real reason why i am late is actually the irresponsibility of the traffic police. They are so callous to the challenges faced by us and don't want to do anything about it. They are a disgrace to our nation.”
As one can see, in such a situation, the FAR phenomenon does provide some explanation for the ridiculous responses of the subordinate.
- The subordinate decided that the FAR - "the traffic jam" was why he couldn't make it to office on time.
- When his boss made him realize that the traffic jam was an expected event, the FAR became the "The management which decided to put up a office so far"
- When his boss again made him realize that the subordinate was an advocate for the current office, the FAR became "The irresponsibility of the police" and further the "the police have become the disgrace of the nation".
- An inherent hesitation to take responsibility for our actions
- An inclination towards self pity which subsequently becomes a comfort zone where poorly developed habits reside
- A desperate need to transfer the blame on to extraneous factors.
- Trying to find reasons to justify the point of view, just to satisfy our ego
- Breakdown of trust and credibility
- Unnecessary mental tension as we focus our mind towards finding the next FAR rather than sort out things in a rational way
- Poor problem solving skills. This results in poor judgments that can impact our life in fairly dramatic and painful ways.
- Sometimes, it can affect our families and subordinates and can dictate their behaviors as well. Just as mosquitos transmit malaria from person to person, we do transfer negative behavior very easily over our spheres of influence.
- Also often results in incomplete solutions. We think that the solution to the FAR will solve the problem only to find that it just cleared the way for the next one to be rearing its ugly head. This then turns into a situation which i would call as "Running like headless chickens".
- Stop blaming others for your situations. It is very likely that you are in a specific situation because of your actions/decisions.
- Stop giving excuses. They are the biggest single deterrents to logical problem solving.
- If in doubt, if something is the reason for a situation, very likely it is not. Most situations have a very simple and logical explanation. Simple doesn't mean it is easy to identify or accept but it will be definitely be logical.
- Be unemotional when you are doing this introspection. Emotion is like a smoke that clouds our judgment.
- Learn to take full responsibility for your actions. Do realize that it is ok to make errors in judgment as they indeed do provide tremendous learning opportunities.
- If your subordinates or folks within your sphere of influence get into FAR, don't hesitate to correct them.
- Not letting ego come in the way of logical reasoning. Don't try to bully facts into a rationale just to satisfy Mr. Ego.
- Last but not the least, accepting your mistake and saying sorry is a virtue and not a self-defeating proposition.
Monday, November 23, 2009
A nice perspective on work
Saturday, October 3, 2009
Tamil Cinema's coming of Age - hope the spark continues
Sunday, September 20, 2009
From IIM to Tollywood
Saturday, July 18, 2009
Nono to Nano? Or TATA to green environment?

- India's vision of seeing a Rs 1 Lakh ($2500) car finally became a reality as the Tata motors delivered the Nano to its first customer. This project went through significant challenges and this event definitley deserves mention amidst this background.
- India's Prime Minister Dr. Manmohan Singh recently signed a declaration at the Major Economies Forum (MEF) in Italy, committing India to curbing its carbon emissions. There is a debate still going on in the India media on whether this has caused india to compromise on its development agenda.
As one can see, these 2 developments seem to be a classic case of the right hand not being aligned to the left hand. The Nano, albeit an engineering marvel is all set to do its damage to the environment in terms of flooding the already bustling indian roads and potentially increase the carbon emissions exponentially. With a 620cc engined, Nano in itself is unlikely to be an issue but imagine the impact of having a million nanos on the roads over the next couple of years. Considering this fact, is the Government really serious on what it is committing to ?
If we step back for a minute, it just seems to be a case of bickering over insignificant spoils. Sure, the western world has contributed to most of the environmental destruction till date but can the developing countries use this an excuse to add their own piece to the pie? At the end of the day, quite a few of these destructions are irreversible damages and it is unlikley that a significant portion of the world population will be able to enjoy the benefits of such ill-conceived development (if it happens).
With a bulging population (that is showing no signs of slowing down) , unplanned development and loose regulatory environment, India is still trying to come to terms with the spoils of globalization. The Nano is something more than just the release of a new model of a car. It possibly is the inflection point in India's growth story as it slowly starts doing for Iwhat the Ford Model-T did for America, more than a 100 years ago. But a Model-T to a 100 million population in 1895 is a far cry from a nano to a 1.2 Billion population in 2009 . So is Nano the begining of the end? I do not want to define what does "end" mean as it is just too scary. Do we have the guts to say NONO to the NANO? Or is it TATA to green environment?
Saturday, July 4, 2009
The Great Indian Fuel Hike - common sense takes a backseat

- Huge traffic jams across the board
- The bunks run short of supply very quickly thereby leading to rise in tempers.
- Unneccessary pollution caused due to the traffic jams
- Significant pain to people who really need to fill up their vehicles (because their fuel tanks are empty)
- It is not unusual to see people having heated arguments with the staff at the petrol bunks who reel under the onslaught of the mad rush. In a number of cases, the police had to intervene to bring the situation under control
If you step back and think about this reaction, it makes absolutley no economic sense. For a car, if an average person fills up 20 litres of petrol on a price-hiked day, he stands to gain Rs 80 (which is equivalent to saving up of 1.75 litres of petrol) vis-a-vis filling it up on the next day. If it is diesel, this number goes down to Rs 40 (which is equivalent to 1 litre of diesel). Considering that a litre of petrol gives an average petrol car user a mileage of 12 kms/litre in the city and a diesel car gives a mileage of 15 kms/litre, one is left wondering at what the fuss is all about. It is quite clear that for 4-wheelers, there is just no gain in queueing up on D-day at the bunks. The argument is slightly different for 2-wheelers who do stand to gain slightly more because the average mileage in the city for a 2-wheeler is about 45 kms/litre and thereby makes slightly more economic sense. But if you think about it, a 2-wheeler only runs of petrol and an average 2-wheeler user does not fill up more than 3-4 litres at any point in time, the savings are just about Rs 16 and thereby they really do not save much either. Of course, 2-wheelers are less inclined to cause a traffic jam and also take lesser time to fill up their tanks.
Agreed that this hike could eat into the meagre savings of the middle and lower class who are already reeling under the impacts of the global recession but this mad-rush does not in any way alleviate their pain. As a matter of fact, it just increases their frustration at the eco-system. It is time that we as a population, get mature and stop reacting in such an emotional and senseless manner to the Great Indian Fuel Hike.
Saturday, January 10, 2009
The Satyam Fiasco - A good opportunity for corporate India to come to terms with reality
Saturday, December 20, 2008
Varanam Aayiram - Movie Review

Thursday, November 20, 2008
The White Tiger - A book review

Sunday, November 16, 2008
If God was a Banker - Book Review

