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.

Whose incentive is it?

I went out for fresh coconut water with a colleague. On the way, we saw this.

I told my colleague that this was the best argument for capitalism. She was like – what, how, what was I talking about? The lady brooming the street you see is not a government employee. She is an entrepreneur. She is the lady who sets up a stall in the day selling buttermilk. She typically sells it for the tired and sweaty commuters as well as the office folk who walk out after lunch. And she mixes her buttermilk right there. Since she sells food stuff, she obviously likes the place to be clean. Office goers like to drink buttermilk in a place they assume to be clean and hygienic. She doesn’t want dust flying about. After she finished brooming she splashed water on the street so that the remaining dust settles down as well. She did a good job of keeping her environment clean.

A case of where the government fails miserably while the private sector does a great job free of cost, without prodding. Economic interests dictate human behavior. The sweeper hired by the government has no incentive to sweep well. If had done his job she wouldn’t have had the need to clean the place. But the fact is simple, the way it is structured, the lady has an incentive to clean up and the sweeper has no incentive to clean it. Incentives. We simply respond to incentives.

I was listening the other day to a freakonomics podcast on incentives and children. How you must incentivize good behavior. Some study they did and it showed that kids respond well to incentives. No surprise here. But another interesting thing that a typical parent with a girl will tell you – they found no correlation between incentives and young girls responding. The girls were sweet or behaved because they wanted to and not because they were incentivized. I can tell you from experience and from other parents talking – you can’t really give girls money and ask them to behave. You can’t cut their pocket money for bad things and stuff. We tried a lot of things with Jispa – giving cash, interest and stuff. Nothing worked. She will best respond to emotional blackmail not money. That’s the way sweet girls are. To make her do something I have to make a face not reach for my wallet. Oh lovely girls. They are the best!

the law of unintended consequences

warning - RAMBLING ALERT. PROCEED AT OWN RISK

There is nothing sadder in this world than a wasted crisis. There is so much to learn and so much to understand from it. To repeat an oft repeated cliché – history repeats itself and those who don’t learn from it are condemned to repeat it. the last few years we have seen the best of crisis hit us. There has been so much to learn from it. A lot of free time is also spent learning and understanding.
The last time (2008) the crisis hit I was hooked on to the RSS feeds. They saved me and my brains from entropy. I read every day and I blogged every single day. Learning and creative wise they have been the best of times. A crisis is much too important an event to be wasted. These times are no different. We seemed to have gone out of the crisis we thought we were getting into and jumped right into another one. I always wondered how the dam euro worked with different countries. I thought – hey that’s a swell idea. I am sure the euro would be managed by one central authority and I thought there would be an amazing fiscal consolidation with all the Euro zone members coming together as one central banking authority. Only the present crisis helped me explain what now seems like a dam stupid idea. You have a monetary consolidation but not a fiscal consolidation. Are you like… nuts? How the hell can you do that? Only an idiot would agree to it. I clearly remember the launch of the Euro on TV. I think it was covered on a program called the world this week. There was plenty of hype and euphoria. But sure, in hindsight vision is always 20-20. These very same critics remained blissfully silent all through these years.
But coming back – this time around I have discovered podcasts. Economic podcasts that explain the situation, explain the issues at hand, possible solutions, historical background, et all. Along with listening to them I have been reading the Economist. A lot of it then begins to make sense. I just can take my mind off the Keynes versus Hayek podcast. Man. All our lives we understood the Keynesian theory and the idea that we must spend our way out of trouble, while Hayek kept reminding us of the issues that we would face with loose money. They also pointed to the rap videos that sought to explain the two theories in direct contrast with each other makes for interesting learning.
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I must admit that I first saw the video while the first crisis was in full effect and at the time I don’t think couldn’t fully grasp the strength of the Hayek idea. Loose monetary policy will result in misplaced investments and a bad hangover with inflation coming knocking at your door, sooner or later. I think that is precisely the reason why Keynes is an easy policy to digest for the politician. It shows action – one must do something about the crisis now! To rephrase Keynes – in the long run… every politician is dead. Hayek on the other hand possibly tells us to sit tight and bear the pain. Pain is essential but only the tough will survive. Otherwise you will get misallocated funds, inflation and an attempt to prop up the weak, that should have died in any case. Today I see it very clear. Hayek seems right. India followed a loose monetary policy as a knee jerk reaction to the global crisis. We wanted to be seen as a government ready to fight the recession and protect growth at all costs. I too believed in it. What is life without growth after all? So in effect we attacked degrowth when there was none at all. What only happened was that we grew at a lesser pace than before. Which is a natural thing. It is a natural response to the economic situation. But if our FM wouldn’t have done anything, he would have been pillared for twiddling his thumbs. Also the argument could also be that inflation is a lesser pain than unemployment. So possibly Keynesian policy is possibly the right way to go.
Then you add the NREGA effect to this. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is an Indian job guarantee scheme, enacted by legislation on August 25, 2005. The scheme provides a legal guarantee for one hundred days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work at the statutory minimum wage of 120 (US$2.43) per day in 2009 prices.
When the Congress government kept announcing schemes to promote the socialist agenda, I was the lone dissenter. WTF. We can’t ensure we get any public distribution right, and none of the schemes really work , so why should we support these budgets and call them great budgets. The markets loved them and all was forgotten. Some even attributed some the victory to the NREGA program – read this http://imaginingindia.com/2009/05/28/after-the-election/ . Interesting.
So now you have a lot of money being pumped into the economy. More money and my daughter will tell you – inflation follows. And it does. So we have inflation with prices rising. So now the government tries to control inflation by raising interest rates and attempts to suck out liquidity. It is squeezing our stomach while tightening our belts. Can I hear Hayek laughing?
After all this I was wondering why we never learnt Hayek in economics while we heard of Keynes. A chance encounter with my economic teacher and I got the answer. Keynes is taught at graduate level while Hayek is taught at post grad level. Oh Stupid stupid idiots who set the curriculum. Most of us are going to go through life with a graduate degree. So now we know what to do without understanding eth consequences of what we do. So year after year you will have students who understand that governments must interfere must have not been taught what happens when you do interfere. Oh this is such a wonderful example of our education system. Most of us are graduates with some exposure in economics before we move on to our other streams, possibly management and go through life not knowing about the other side. Sheesh.
Forget it. I am getting too depressed. But here, while we are swimming in different theories, here is one more. I think the reason you will see inflation is because the RBI wants us to see inflation. Economics is nothing but a game that is being played in our minds. Recession happens when we feel not so confident about the future, growth is when we feel better about it, inflation happens when we feel that we have more money and want to spend more to get a good. Economics works in the collective and indivual minds of the people, and our country is not all educated. I am sure not a large percentage of the population has anything to do with economic theory. They behave in tune with what they see. They don’t understand inflation and sentiment. They care if Greece is going nutty printing money. They react to what they see. And the Government or the RBI is telling them in their face that the RUPEE IS DEVALUING. The RBI is taking extra care to ensure it happens. How is that?
Well its simple. They are now telling you that the rupee is now worth a lot less. In fact through a very powerful visual it is telling the population that the rupee is now almost half of what it used to be, sometime back. Don’t believe me? See this… the old rupee and new one rupee coin.

the date on the big one is at the back -2010 and the new one is dated 2011.
Now any illiterate person looking at the coins will also tell you that the rupee is not the same anymore. It has shrunk. And hence now you require twice as much material to be worth the old rupee. In effect the new rupee is half the old one. INFLATION!
I know it’s a corny idea, but I firmly believe that symbolism matters. We decide a lot on the basis of what we see and interact with. Surely the shrinking of the rupee is not just because we shrunk the size, but this is a clear admission of the fact that it has shrunk so those who don’t believe in it, kindly start now.

the Hayek versus Keynes podcast can be accessed here -http://www.npr.org/blogs/money/2011/10/28/141802704/the-friday-podcast-keynes-vs-hayek Listen to it. its fun.

emptying shelves filling minds

I look forward to getting books that form some sort of series. When you get two or more that form a series in your head and you get to read them back to back, they make for an interesting argument in your mind. But that is not always possible. The next best thing is to get a series of unputdownable interesting books that one reads back to back. When I get these unputdownables, the reading progresses rapidly with the books rapidly flying off my table. I keep the to-read books on my table and the rest get pushed into the cupboards. And I also control myself and don’t buy books till I clear my backlog, else it will rapidly spin out of control with books filling up shelves but not filling minds. Hahaha. I liked that last bit of corn philosophy. Filling shelves without filling minds. I should put that up in the library that one day I will design. Hah!
The last few weeks I have got extremely lucky with my books. I first got the book ‘Born to run’ by Christopher McDougall followed by a book on the Taj Mahal, followed by ‘Employees first, Customers second’ by Vineet Nayyar followed by ‘Into Thin Air’ by Jon Krakauer. They were as disparate as they could get.
Born to Run (see link which also has an interesting video by the author) is about Ultra marathoners and an ancient tribe that loves to run really long distances. I loved it as according to me the marathon / ultra marathon is the greatest ever sport. In my pecking order it lies at the very top. While you compete with others you largely end up fighting with yourself. The ability to pound the ground every step, continuously for hours at a stretch is simply magical. The author also argues that perhaps we survived as a species largely thanks to our unique ability to run long, real long distances. It explains how humans probably survived by simply running down the animals. They would most certainly outrun in the short run, but if you understand them and are able to track them, then you can most certainly run them down by sheer determination and grit. The gazelle will simply run like hell till its body gets over heated and dies. Poop. That’s it. Of course there is a little more skill to it that the book describes in detail. It also talks about our running styles and how with the advent of padded shoes we have been susceptible to more and more running related injuries. And interspersed throughout the book are lovely descriptions of ultra marathon races. They keep you riveted to the book, waiting to see who wins. All in all an amazing book that has immediately moved to my top ten list.
It also makes a point that I completely agree with. It says that one of the most important things about an ultra marathoner is the mind and how ‘nice’ a person he is. The general sociable or amiability of a person is completely important in a long distance runner. This is a slightly less fleshed out point in the book but it makes enough references to keep my mind active to the concept. I think its worth having a look at in detail.
The next book was about the Taj. From when I remember I have always had a fascination for the Taj. I grew up thinking about it. When I first visited it I was a kid, I next visited it when I was 23. At 23 when I saw it I thought it was highly over rated. Over time I have come to think deeply about it. There has to be some mystery about it. What is it that makes the Taj, THE TAJ. Is it merely a makbara or does it have greater significance. Slowly I started understanding it a bit better. I started reading about it at every chance I got. Reading more and more gave me further insights and glimpses into the monument. I can safely say that today I understand it enough to know much more than the average guide who does not understand it nor it nuances. I understood the value of walking slowly from the front entrances and seeing the arches in line. Letting the Taj slowly emerge. Also one great insight to me is to slightly lower yourself and see the image from the pathways before the gate. Then you will realise the perfect form that architect is letting you see. It must emerge, slowly. There is a reason for it to have a gate that shields the monument from view. Else they would have just put it up without the surrounding walls. Why lower yourself. My theory is that over time we have rebuilt roads and pavement to a point higher than what was the original. If you lower yourself on the path towards the monument you will the perfect angle where all the gates come in a beautiful line of sight. But then that’s my theory. It worked for me. Another thing is to visualise the Taj with garden in front being full of fruit bearing trees a ala Eden. It would not look as naked as it is looking now. It was supposed to be full of fruit bearing trees that possibly even contributed to its upkeep. There are old paintings of the Taj that show it with trees in front. Imagine a beautiful white relief in contrast to the dense green eden. The Humayun tomb in Delhi also always held a strong fascination for me. The book also explains the taj in relation to eth tomb. I always suspected that you cannot fully appreciate the Taj without first appreciating the Humayun’s tomb. I was right there. I would like to again and again to Taj to understand it deeper and deeper. So many myths and so many explanations. It is a mystery that needs explanation and resolving.
Next in line was the book ‘Employees first, customer second’ by Vineet Nayyar. I have come to this conclusion since the lat six months that the key to happy customers is happy employees. Satisfied happy and motivated employees make for a great set of customers. Putting customers first takes the focus away from the enablers and is a recipe ripe for disaster. This book I picked up in crosswords and read it back to back, in two hours flat without leaving the shop. I simply placed it back on the shelf. No, I will not deny the author the royalty, but I promised my self that I will figure a way to buy not one but at least 200 books. And get him to speak to as many forums as possible. He has a very valid point of view. He is attempting to change the way we as companies think. I will do everything in power to ensure that the message is spread as far and wide as possible. Putting that one book down will ensure that I will remember to figure out a way to get my signed copy from the 200. How? Wait and watch. Things are already in motion. Vineet – if you are reading this. Trust me. I think I know what you are aiming for and I think I can deliver your objectives. Message will be received very very wide.
Then the next book was about the ill fated expedition on Mount Everest. Another very high endurance sport. A book that kept me awake at night and made me read like crazy. To give you an idea on how much I enjoyed this book – I woke up at 730 am when I was in Bangalore and I just picked it and continued reading it till I finished it at 830 am. I just wanted to complete it.
Now the book on hand is called ‘the human zoo’. I just started reading it. I have no clue how good it is but the opening two paras in the introduction is one of the most hard hitting ones I have ever read – I reproduce it here.

‘When the pressures of modern living become heavy, the harassed city dweller often refers to his teeming world as a concrete jungle. This is a colourful way of describing the pattern of life in a dense urban community, but it is also grossly inaccurate, as anyone who has studied a real jungle will confirm.
Under normal living conditions, in their natural habitants, wild animals do not mutilate themselves, masturbate, attack their offspring, develop stomach ulcers, become fetishists, suffer from obesity, form homosexual pair-bonds, or commit murder. Among human city dwellers, needless to say, all of these things occur. Does this, then, reveal a basic difference between the human species and other animals? At first glance it seems to do so. But this is deceptive. Other animals do behave in these ways under certain circumstances, namely when they are confined in the unnatural conditions of captivity. The zoo animal in a cage exhibits all these abnormalities that we know so well from our human companions. Clearly, then, the city is not a concrete jungle, it is a human zoo.’

Very rare that a book’s opening paragraphs slap you so hard. Very rare. I am dying to read the book to find out how hard the slaps turn out to be.

leading to victory!

One more weekend and one more ‘training offsite’. I do tend to think that these traiing programs are highly over rated and boring. Though like any book, no matter how bad it is, it is never a complete waste. This time it was only for top management. So now we have senior shit with one person per room. So how do we up this further for the even more senior people. We have Suites for them.. Corporate India never ceases to amaze me. Cut to the activity.
The activities are always fun. Far better than the yappity yappity talking that happens in closed rooms. It is interesting to see the people trying hard to understand the games and trying to win them. They try so hard to win. One of the games we played required us to take an estimate of the score before we start the game. The other team had played it before we did and all we wanted to do was beat them. The people try and the way we stop listening is crazy. We try so hard. Competition pushes us to extremes. We stop thinking clearly and start pushing. We assume stuff that never was. We start distrusting. In another game, which required all the players to survive wasn’t actually a winning game. It was a survival game where if all survive all win. People did not understand that as well. They thought it’s an ‘us versus them’ and started by not trusting and by not sharing resources. I was in a team that was supposed to be mute and was stranded on an island surrounded by acid. The only way out was to get the acid proof tiles that the blind team had on another island. That required the lame team to direct the blind team to come to us with the tiles. So obviously the only thing we could do was wait till they come to us. Relax till then. I sat down to bide my time, relax till the tiles came. Post which I knew I had to scramble like hell. It was a bit amusing to see my team mates gesturing and clapping and tryuing to explain stuff to everyone. Getting all excited. When the tiles came I swung into action and was super fast enough to get the tiles to all the stranded players. In time to ensure all win. That’s all that there was to it. Simple stuff. no rocket science. I don’t know if the guys thought I was not a team man when I was relaxing and biding my time, when there was really nothing to be done by us. Relax and wait till the tile comes to us. Post which we run like hell.
I realised an important truth this offsite. Well it is a truth to me. The jaimitism is coined thus – winning and leadership are so over rated. We are so blinded by this thing about leading to victory that we fail to see the process. You don’t really have to win. Teaching Jispa I realised that its not about winning. It is about the process of play. Every time I try and drill it into Jispa – the Olympic credo – when a great sportsperson comes to write against your name, he writes not whether you won or lost but how you played your game. If your process is right and you have done your best, the result will be in your favour. You don’t have to win. Look at yourself, your own limitations and always use that as a pressure tool. Not winning. Sure in a competitive sport you have to out run and out perform to win. And I am not saying that one must be a wimp but if you focus your energies towards yourself and not the opposition then the game is won there itself. You fight hard, every point every game, but you aren’t really fighting him or her, you must be fighting yourself. The opposition is a useful benchmark, but it is not the end.
Similarly leadership. It is so bloody overrated. We understand it as rubbish inspiration and motivation. I think true leadership is exactly what it is not. It is listening to a lot of people. It is getting involved only at grave risk. It is by making yourself almost dispensable. Letting people do what they want to but only being the guide and using your experience to suggest. If you know it well enough then being an example always helps :).
But both of these are so tough to follow. You want to win, you want to lead. At least the kind of personality I am. Severely competitive and severely pushy. I can’t not try. And thanks to my pushing I end up being in a leadership role.
But also I realised that I have matured over the years. I come into my own with people who look upto me. In situations where more than one leader emerges I tend to be quite about the whole thing. Almost disinterested. I guess people feel that I have tuned off, but I haven’t. I only see the futility of multiple leadership. I know if I open my mouth I would be forceful and dominating. That would just upset everything a bit. It is not a battle I wish to fight at this level. And hence my silence.
It is similar when bosses refuse to listen. Too many hot heads will spoil whatever broth was being cooked.
So I try and conquer my urges to win and my urges to lead. Its not easy for me. funny nah. I get this realisation as a truth and I also do not follow it. But I am improving. Slowly slowly I am getting to see the benefits of being stable and level. The benefits of process and pain as opposed to the pain from ‘competing and leading’. I think that this has also come about thanks to me switching sports and taking up swimming. It is a meditative state of sorts. Me swimming against myself. My own technique being used by me to improve and push myself.
Or I am just getting old, hopefully wiser hehehe. .. whatever.

theory of scarcity and abundance

Hmmmmmm….. Breathe easy. I am just back after a week long vacation with family Singapore. It was quite a lovely vacation doing all the tourist things. I wanted to take my family ever since I first saw the place during one a business trip. It’s a kiddy paradise with the opportunity to get up close and personal with a multitude of animals.

Also for an arm chair anthropologist any new city especially a new country is a wet dream come true. It’s amazing to see the difference in the cultures. In just one generation they have transformed their culture and discipline.

As always it was depressing to see the Indian tourist making a bloody ass of him self in a tourist spot. We tend to behave as if there is no tomorrow. I have a theory here. I guess what has happened is that we have become a country of scarcity. The developed countries have a culture of abundance. They can handle abundance and we can only handle scarcity. We are trained and ingrained to survive scarcity. We always behave as if there is no tomorrow and that the first one wins. At Sentosa after one of the animal shows the handler invited the crowd to then get themselves a picture clicked with a python. The Indians jammed the guy by surrounding him, breaking lines, pushing and shoving to get first. The guy kept saying to have patience and that every one will definitely get a picture. One lady decided to get the snake on her head on her own while the handler was about to call some one else. Then she gets her entire family involved one by one. Tony idhar aa, photo le, bhabhi aap bhi aaiye, and so on. We just cant handle abundance. We can handle the trainer picking one person on a lucky draw but we cannot handle the fact that everyone will get a chance if they just wait. For anyone trying to test the theory just try giving free bananas to street urchins, or slum colonies or even free anything to office goers at Nariman point. Ensure you have an abundance of bananas. The more the bananas, the greater the chaos. We see abundance and just lose it all. It just seems surreal to us. Let’s run and garner the most for us. Like wise I think the developed guys can’t handle scarcity. Looting, anarchy and riots in times of scarcity are common. Just remember the riots at US when they had massive flooding and at the same time the order and restraint shown by Indians during the Mumbai flooding.

I see this changing slowly though. My generation was largely fed stories of thrift, conservation and survival. We had one chocolate being divided into three pieces for three siblings. Most of what we wanted was unavailable or unaffordable. Jispa’s generation is of abundance. She has choice in what she wants. She chooses what she wants, has more books than she can read and generally has abundance of what is primarily made available to her. We try not to spoil her but yes she definitely is the child of abundance. Hope she grows up with a level head. She must be able to reconcile abundance and scarcity. Heheheh…. Opposites reconcile.