google doshi

The other day we were scheduled for a dinner which was happening quite late. So we went to the McDonalds nearby and had a bite.

Jispa while eating the burger asked me “eating the burger makes me feel very thirsty”. “of course” I replied “they put a lot of slat in your burger so that you love it and then of course you feel thirsty. Then to mask the taste of the salt, they add tons of fat to it”. “Why would they want me to be thirsty?”. “well so that you buy coke”. “But then I will simply drink water which they give free”. “Is that so? Go take a walk around and see the restaurant. See every table and tell me what people are drinking”. So Jispa took a walk around the restaurant and came back with a huge exclamation mark on her head. “on every table there is a cola and the only two places where they didn’t have a cola was where there was no food as well.” “There you are. Now what’s the price of a cola at McDonalds?” “umm 15 or 25 rupees” “Go ask and find out” She went and asked and came back with another aghast expression – its 49 rupees. ‘whats the price of a burger” “allo tikki is for 25 bucks”. “and the cost of making it would be around 10 to 15 bucks, possibly. While the cost of serving the soda cannot be more than 2 to 3 bucks. So where do you think is the profit margin. Cola or burgers?” “wow” she was completely amazed by the math. “so if they make more money selling colas than selling burgers are they a fast food restaurant or a cola selling company. You decide”

Now that we were at it I threw another ball “Whats the cost of the happy meal at McDonalds”. “99 bucks” as she found out. “So remove the cost of the burger and coke and see what you get” “25 bucks for the toy?” “yes exactly – they are selling the toy at 25 bucks, which till now you and everyone else thinks is for free! 25 bucks for that toy which I think can’t be costing them more than 10 bucks”. “ya and the quality isn’t all that nice” she said. So thanks to that I explained her “McDonalds has become the largest toy seller in the world.” Wow.” Then I showed her the Hamleys store. “they are bigger in toys than Hamleys as well”. “bigger than Hamleys which sells only toys”. “yes sweetheart, they sell more toys than anyone else. So are they a fast food store or a toy retailer selling colas.”

“see the fun when you have something so overpriced like cola. They never ever prominently mention the price of the colas on their menu. You have to struggle to see it” (it was on a display hidden behind a column). “this way they can combine and sell you value meals and you think you are paying less but in effect they have already overcharged you for the drink”. “isn’t that cheating? Selling colas that expensive” “no they are allowed to charge whatever they want for the cola. A five star hotel will charge you 500 bucks for the same thing. That’s also allowed. It’s not cheating Its marketing”. “I am not telling you lies, I am only selling you differently.”

She was wow. “How do you know all this”. “hahha. I read. And that’s you are going to get in the books I bequeath you. Of course not all of this is from the books or in any one book but you get a sense of stuff around you once you read enough. Then you know how to figure things out as well.” “Google Doshi” was her parting comment. She knows that some of my friends call me that.

But that was a nice conversation with her. She is now big enough to know a lot of this and is able to figure a lot out as well. It’s fun growing up with Jispa.

talk to the MAN

We are professionals. I work in an office and in a large setup. I know what it is to make an organization move and I know how the inter-politics work. And thanks to a lot of wisdom gained I assume I might be smart enough to understand a little about how the market dynamics are.

Earlier when I would speak to an entrepreneur, I used to be a little … haughty… I guess. I probably thought that the entrepreneur would never know the real way a large organization works and the thinking we put into a product. I thought that we are as a tribe smarter than what he is. But over the years I have learnt to respect the wisdom of the businessman. Whatever little he knows has greater value than whatever much I might know. I realized that finally that is the guy who takes the risk fundamentally. He is typically closer to his customer and while he may not have any theoretical construct he makes up for it by having passion, drive and of course the associated headache.

So I find it funny when someone like him comes to take advice from me. I think there is an interesting creative tension happening. He knows his beans but at the same time he also knows that the guy on the other side has some secret sauce that he is eager to learn from. There are systems and processes that a big firm guy knows that an entrepreneur never is exposed to. Or basically learns the hard way. They struggle with this construct. Managing systems and processes while growing crazily is a  marathon task. Typically systems are put in place once the growth rate slows down. Because while you are growing there is no use of a system. A system would make you slower and less responsive to change and adaptation.

So when talking to a entrepreneur my premise is simple – he is always right. He will know more than you and will always be better informed. Even if he isn’t. Its actually not as complicated as it sounds. It’s basically the frame of mind I put myself in when I am talking to him. This way I don’t get too arrogant while talking to him and genuinely start listening to him. Because there are so many times that the guy must be actually doing things without even knowing he is doing it.  Only when you think in this manner can you really understand and dig for clues as regards his behavior. Only then can you have a conversation that is enriching to both. And advice is never what he should do – but it is always what I see with my limited vision. Things that have helped me in my daily life and from that it is up to him on what he wants to take. It is essentially the same thing when you talk to anyone else. You have to essentially talk your experience without really thinking that the same is simply transferable.

I love these businessmen who have set up their own businesses. They have a way of doing things that have got them this far. I love to see them think and see them wondering about change. Some are constantly looking to change and some are constantly trying to maintain status quo. If anything I get a great deal of learning from talking to them. They probably don’t know but I too look up to them in some way. Finally I too take risks on the job, large ones but I know that my risks are not threatening. Sometimes these guys have to take risks that will forever change their lives and possibly take them to a newer orbit.

Hence the premise is always simple – you are right. Now let’s see where we can go from here. Its funny how this has happened over a period of time in my life. When did I swallow my arrogance and when did I decide to move my thinking. Possibly it happened when I realized that I don’t know more than I know and that not all that you know is right. But chuck that.

Coming back, I have also learnt that theoretical constructs are still very valid to anyone. The more I have understood about them by teaching and applying them the more I realize the wisdom in them. Even unstructured situations and growth can be better managed and understood if you have a lens through which you see them. There is wisdom that people have gathered over the years and they come out in these theories that are being made. The trick is to catch the theory, apply, seek for deviations and trust yourself enough to wonder why the deviations occur when they shouldn’t.

I have applied certain theories more than others and more I apply the more I see them (certain ones) as being right. it has improved my understanding of them. The problem is when I have to explain them to the entrepreneur he finds it difficult to catch them. In fact he tends to dismiss them as theories so I have to do the difficult thing and don’t present to them as such. I have to push them in different ways and lead to the same result. It’s a very difficult job. An entrepreneur typically knows his current problem and whatever you say he is constantly trying to find the solution to that problem. He is hunting for solutions to the problem he sees and therefore quickly loses interest if it does not fit or quickly catches a solution he sees a fit. They are always thinking fast and I find it difficult to hold intense conversations with them which require deep thinking about a particular issue. They are used to fast processing…. Quick in quick out kind of processing. I think at first I would try and catch them with a 100 different cases and possibly try to dazzle them with knowledge. But that is of no use to him. So I talk to him, understand from him and then try and just have a simple conversation using his examples and words. This way we possibly reach a better solution that is truer to his real problem.

They learn more from heart to heart conversations than from gyan distribution sessions. The gyan shit is needed for the MBA trying to look smart but the real work is needed by the business man to stay alive, relevant and promising. It’s the real thing man.