An excellent leader in The Economist analyses the calibre of chief executives of banks in America.
Only three of the chief executives from the ten largest banks in America during the unfolding of the financial crisis remain. The rest have been asked to leave over the past year.
Some are claiming conspiracy, in that chief executives have manipulated for personal gain. This may appear true considering the lavish perquisites that they showered on themselves - expenses claim on a $87,000 rug, playing a game of bridge as their firms collapsed, almost like Nero. The article compares this to actions of Kenneth Lay of Enron and concludes that most of the current breed were useless.
It says "Far from expertly manipulating their firms' books, many could not even understand them" and "....even when they had decent numbers, executives struggled to manage their mutinuous staff". One ex-boss said "... his job was less of management, more crowd control".
Did acquisition make a difference? No. Acquisitive firms such as BoA, Fortis and RBS floundered. Those who were not acquisitive, such as JP Morgan Chase and Barclays prospered.
Did long-term perspective make a difference? No. Managers at Bear Stearns and Lehman Brothers did have a lot of their personal holdings, but did not focus on the long-term.
Did risk committees make a difference? Hardly. Santander had 98 meetings in 2007 while Credit Suisse's had just six, yet both did much the same.
So, what is generally prescribed by the know-it-alls as required and essential is not necessarily the right thing to do. Its better to be a historian than a politician; an economist rather than an executive. The former have the advantage of hindsight.
The summary "On any measure of banks' boards - experience, gender, age, independence - there were successes as well as failures". "What firms need is a culture of excellence, but that is like saying all football teams should be like Manchester United".
My line "It is remarkable that these executives stayed on the top without staying on top of their jobs."
Wednesday, October 14, 2009
Monday, October 12, 2009
Mediocrity rules
We had been to a music concert of old hindi film songs from the 60s and the 70s yesterday by a group called 'Klub Nostalgia' held under the aegis of our association Mulund Fine Arts Society at Kalidas Natya Mandir, Mulund. I've heard them several times before, out of which a couple were under our sabha. Anil Bajpai was exceptional, as always; Vinod Seshadri was good in some songs, while average in most others. Others were at their own best, but that's it.
To tell you the truth, I always liked 'Golden Greats', another such group, more. I don't know the entire inside story of how and why singers moved en masse from 'Golden Greats' to 'Klub Nostalgia' so I cannot comment on that.
But 'Golden Greats' was true to what they did; the effort was diligent and impeccable; no compromise whatsoever; you could see them being very passionate about hindi film music of the yesteryears. 'Klub Nostalgia' is, at best, a compromise, a 'chalta hai' effort group. And since the whole world is at a level of mediocrity, they thrive.
This reflects life, as most matters do. The few who attempt to reach excellence and perfection eventually fall to the sides. And the ones who compromise and insist on the mediocre, keep going. You must only know how to capture the stupid imagination of the masses. The numbers count. If you can't act like Naseeruddin Shah, fool around like Govinda. If you can't sing like Sonu Nigam, there's Kumar Sanu. If you can't create a 'Gulaal' make a 'No Entry'. The world has been returned to the bin.
Friends tell me there are a few things left in the world where excellence still rules. Wimbledon, Oscars, are what come to my mind. With no information contradicting that view, I agree.
But we don't live in that world, do we?
To tell you the truth, I always liked 'Golden Greats', another such group, more. I don't know the entire inside story of how and why singers moved en masse from 'Golden Greats' to 'Klub Nostalgia' so I cannot comment on that.
But 'Golden Greats' was true to what they did; the effort was diligent and impeccable; no compromise whatsoever; you could see them being very passionate about hindi film music of the yesteryears. 'Klub Nostalgia' is, at best, a compromise, a 'chalta hai' effort group. And since the whole world is at a level of mediocrity, they thrive.
This reflects life, as most matters do. The few who attempt to reach excellence and perfection eventually fall to the sides. And the ones who compromise and insist on the mediocre, keep going. You must only know how to capture the stupid imagination of the masses. The numbers count. If you can't act like Naseeruddin Shah, fool around like Govinda. If you can't sing like Sonu Nigam, there's Kumar Sanu. If you can't create a 'Gulaal' make a 'No Entry'. The world has been returned to the bin.
Friends tell me there are a few things left in the world where excellence still rules. Wimbledon, Oscars, are what come to my mind. With no information contradicting that view, I agree.
But we don't live in that world, do we?
Tuesday, October 6, 2009
Bombay to Goa
We had been to Goa over the weekend. And I must say, Goa is amazing in the rains. With lesser crowd and a cooler climate, it is the best time to be there.
A little on the journey.
We left at 9.30 pm on Thursday, October 1, 2009, by road. We took the Mumbai-Pune expressway, the Pune-Satara-Kolhapur highway NH-4, turned right at Nipani, and reached Panaji at 9.30 am through Amboli Ghat. We reached the Nipani turn at the wee hours of the morning. The ghat section took time because of the inclement weather, the mist and the rain, the poor visibility. I liked the experience of driving the Amboli ghats when everyone else had slept off in the car. It was just me, my car, my music, the mist, the waterfalls and the winding road ahead.
The return back was more routine. We found a better road back to the Kolhapur expressway, that went through Ajara and Sankeshwar. Thats a better road than what we found on the way to Goa. But we found lot of local traffic on the Kolhapur-Satara belt since it is not an expressway. So there are a lot of turns into villages and towns on both sides of the highway. One has to be careful.
A few facts. The road to Goa through Pune-Satara-Kolhapur via NH-4 is the same distance as the road through NH-17. Both are 590 kms. The old road is more enjoyable, I heard, because it has four ghat sections. But NH-4 should be preferred for night drives. But the highway is safe only during nights, since there is no local traffic.
While on the Kolhapur highway, we turned at Nipani, next to a hotel called Cauvery. Its better to continue further and turn at Sankeshwar. As I said before, that road is better.
On the way, you go through a patch of Karnataka. Maybe a few kilometres. And in this stretch, there is no board in English or Hindi. And there is no mention of Goa anywhere. Its better to ask before you turn.
More on Goa later.
Friday, September 25, 2009
The essential and the unnecessary
The NASA probe on the Chandrayaan-1 found water on the moon. The discovery has been hailed as pathbreaking, and it is said to open a whole new avenue in lunar research, and the greatest example of international collaboration in space. Let us keep any speculation on the truth of this declaration aside and consider only what we hear.
I'm not the usual activist-blogger to say that the amount spent on moon research is a waste and that it could be used better to improve our lot here (The project, incidentally cost Rs. 386 crore). Such expenditure may be necessary, as scientific advancement is also required; and there is very little anyone can do to stop it.
Can we look at this entire thing from a different angle altogether. We found water on the moon, which I would certainly call an achievement. But we haven't found enough water to drink on earth, where we need it more. After the discovery, there is talk of using the moon as a place where humans could settle in the future. And they could use the water there. With all the place on the earth, why would we want to go to the moon?
Are we preparing for the future, for the time when the earth would have no water or vegetation to sustain human life, which would've multiplied many times over by then. Why should we get into something more complicated and unnecessary, when we are unable to manage the simple things. I think this is true of life, in general. Man is appreciated not for doing the simple, basic things, but for more complex things.
If you consider an organisation, there are the toilers, the workers who strive to keep the organisation going, the system running, without whom the system would stop. But, invariably, they are not the ones appreciated and compensated. Instead, the brash consultant-management graduate is getting all the attention, for pursuing the new path. He would be specifically employed to do this, against the existing employee who knows more and is in a better position to take the organisation forward. Again, I'm not saying that all such persons are useless. But when you encourage an outsider manager and ignore the insider worker, you are setting up the scene for a cold-war.
And this fact is true in all walks of life. An organisation was just an example. The media likes the person going to the moon. But the person who is out there in the villages, doing his bit to improve the lives of the poor, goes unnoticed.
I'm not the usual activist-blogger to say that the amount spent on moon research is a waste and that it could be used better to improve our lot here (The project, incidentally cost Rs. 386 crore). Such expenditure may be necessary, as scientific advancement is also required; and there is very little anyone can do to stop it.
Can we look at this entire thing from a different angle altogether. We found water on the moon, which I would certainly call an achievement. But we haven't found enough water to drink on earth, where we need it more. After the discovery, there is talk of using the moon as a place where humans could settle in the future. And they could use the water there. With all the place on the earth, why would we want to go to the moon?
Are we preparing for the future, for the time when the earth would have no water or vegetation to sustain human life, which would've multiplied many times over by then. Why should we get into something more complicated and unnecessary, when we are unable to manage the simple things. I think this is true of life, in general. Man is appreciated not for doing the simple, basic things, but for more complex things.
If you consider an organisation, there are the toilers, the workers who strive to keep the organisation going, the system running, without whom the system would stop. But, invariably, they are not the ones appreciated and compensated. Instead, the brash consultant-management graduate is getting all the attention, for pursuing the new path. He would be specifically employed to do this, against the existing employee who knows more and is in a better position to take the organisation forward. Again, I'm not saying that all such persons are useless. But when you encourage an outsider manager and ignore the insider worker, you are setting up the scene for a cold-war.
And this fact is true in all walks of life. An organisation was just an example. The media likes the person going to the moon. But the person who is out there in the villages, doing his bit to improve the lives of the poor, goes unnoticed.
Wednesday, September 23, 2009
Andy Grove: The Paranoid
Andy Grove in his book 'Only the paranoid survive', talks about a point in the life of a company where it will face a combination of internal and external unanticipated forces, that will conspire to make the existing business strategy unviable. He called it an 'inflection point'.
In the case of Intel, such a point came when its memory chips business came under competition from Japanese and Korean players. And micro-processor business was not a major percentage of Intel's business. But Andy Grove put all his energies behind the micro-processors business and Intel became what it is today.
In a recent article in The Economist, he says that the computer industry has always practiced a healthy attitude towards creative destruction, something that is not shared by other industries. Computer firms come and go all the time. He was probably taking a shot at the US government support to ailing banks, the automotive industry and the airline industry. He has asked for the health and energy industries to be run more like the computer industry for them to be more efficient.
His with is still intact, despite battling Parkinson's disease, and his desire to provoke is strong as ever. But his achievements ensure that his provocations are worth paying attention to. Not many people in this world can garner such respect and attention. And it is the desire of every person to become like that; to be heard and respected.
And your ability to quote and be read later. And coin terms that stay on for a long time, become part of the dictionary. Like 'inflection point'. And 'knowledge turns'. 'Knowledge turn' is the time it takes for an experiment to proceed from hypothesis to results, and then to a new hypothesis - around 18 months for chip-making. This probably is what is the essence of Moore's law.
In the case of Intel, such a point came when its memory chips business came under competition from Japanese and Korean players. And micro-processor business was not a major percentage of Intel's business. But Andy Grove put all his energies behind the micro-processors business and Intel became what it is today.
In a recent article in The Economist, he says that the computer industry has always practiced a healthy attitude towards creative destruction, something that is not shared by other industries. Computer firms come and go all the time. He was probably taking a shot at the US government support to ailing banks, the automotive industry and the airline industry. He has asked for the health and energy industries to be run more like the computer industry for them to be more efficient.
His with is still intact, despite battling Parkinson's disease, and his desire to provoke is strong as ever. But his achievements ensure that his provocations are worth paying attention to. Not many people in this world can garner such respect and attention. And it is the desire of every person to become like that; to be heard and respected.
And your ability to quote and be read later. And coin terms that stay on for a long time, become part of the dictionary. Like 'inflection point'. And 'knowledge turns'. 'Knowledge turn' is the time it takes for an experiment to proceed from hypothesis to results, and then to a new hypothesis - around 18 months for chip-making. This probably is what is the essence of Moore's law.
Monday, September 21, 2009
Warren Buffett on scheduling meetings
The day went off in attending meetings with practically no significant outcome. And my routine work was severely held up because of this. These were scheduled a month back and so we had to honour them.
I was reminded of what I had once read about Warren Buffett and how he scheduled his meetings. Apparently he doesn't schedule his meetings more than a day before. That is to say, if you wanted to meet him tomorrow, you could call today. If you wanted to meet him the day after, you would have to call tomorrow.
This rule has a simple philosophy: I can't fill up my schedule any further in advance. That way one needs to be worried only about the next day. And not be too worried about not having any dates for the next few months.
But he is Warren Buffett. I doubt whether anyone else would be able to pull off such a schedule. But you could most certainly cut down on how much advance appointment you give. That way you'd be more in control of your immediate plans. And not spend time re-scheduling meetings to the inconvenience of yourself and others.
I was reminded of what I had once read about Warren Buffett and how he scheduled his meetings. Apparently he doesn't schedule his meetings more than a day before. That is to say, if you wanted to meet him tomorrow, you could call today. If you wanted to meet him the day after, you would have to call tomorrow.
This rule has a simple philosophy: I can't fill up my schedule any further in advance. That way one needs to be worried only about the next day. And not be too worried about not having any dates for the next few months.
But he is Warren Buffett. I doubt whether anyone else would be able to pull off such a schedule. But you could most certainly cut down on how much advance appointment you give. That way you'd be more in control of your immediate plans. And not spend time re-scheduling meetings to the inconvenience of yourself and others.
Bridge on the River Kwai - Courage and Adamance
I was watching bridge on the River Kwai a couple of days back. Some of the quotes from the movie are memorable and could be part of leadership lessons.
I have always admired this movie for the leadership example it sets. Colonel Nicholson is a perfect example of how chain of command and adherance to the rule works. And he motivates people, displays pride.
Nicholson says 'One day the war will be over. And I hope that the people who use this bridge in the years to come will remember how it was built and who built it. Not a gang of slaves, but soldiers, British soldiers, even in captivity.'
And 'One day, when, God willing, we all return to our homes, you will feel proud of what you have achieved here in the face of adversity. What you have done will be an example to our countrymen. You have survived with honour in this wilderness. You have turned defeat into victory. I congratulate you.'
Saito is no less when he says 'You are defeated, but you have no shame. You are stubborn, but you have no pride. You endure, but you have no courage.'
But I had not seen a facet of this movie which I observed today. My wife had a view that one could not be so adamant in the face of adversity. It got me thinking, and I realised that there may be some truth in that too. It was only later that I realised that this thought had been expressed in the movie by Shears. He tells Warden 'You make me sick with your heroics. This is just a game, this war. You and that Colonel Nicholson, you're two of a kind. Crazy with courage. For what? How to die like a gentleman. How to die by the rules when the only important thing is how to live like a human being. I'm not going to leave you here to die, Warden, because I don't care about your bridge and I don't care about your rules. If we go on, we go on together.'
That for me summarised the other facet that I so long had not seen.
I have always admired this movie for the leadership example it sets. Colonel Nicholson is a perfect example of how chain of command and adherance to the rule works. And he motivates people, displays pride.
Nicholson says 'One day the war will be over. And I hope that the people who use this bridge in the years to come will remember how it was built and who built it. Not a gang of slaves, but soldiers, British soldiers, even in captivity.'
And 'One day, when, God willing, we all return to our homes, you will feel proud of what you have achieved here in the face of adversity. What you have done will be an example to our countrymen. You have survived with honour in this wilderness. You have turned defeat into victory. I congratulate you.'
Saito is no less when he says 'You are defeated, but you have no shame. You are stubborn, but you have no pride. You endure, but you have no courage.'
But I had not seen a facet of this movie which I observed today. My wife had a view that one could not be so adamant in the face of adversity. It got me thinking, and I realised that there may be some truth in that too. It was only later that I realised that this thought had been expressed in the movie by Shears. He tells Warden 'You make me sick with your heroics. This is just a game, this war. You and that Colonel Nicholson, you're two of a kind. Crazy with courage. For what? How to die like a gentleman. How to die by the rules when the only important thing is how to live like a human being. I'm not going to leave you here to die, Warden, because I don't care about your bridge and I don't care about your rules. If we go on, we go on together.'
That for me summarised the other facet that I so long had not seen.
Friday, September 18, 2009
Thou shall be judged!
It's a inviolable fact of life that you will be judged. All the time. And by people who are less capable than you, absolutely or otherwise. And these people will rate you, rank you, decide whether you are good or bad or pathetic.
So these people have their set of standards which they hold to be sacred, against which you are compared. And eventually more such people join together and form a coterie. This coterie will talk behind your back about how bad you are.
I must admit that at times, even I behave in this fashion. When I look down upon people who I think are not up to the mark, I do precisely what I otherwise detest.
What could one possibly do in such a situation? Avoid or Endure! If you can, you move on to other things, where these people won't affect your life. Get out of the loop. And if you can't, and you need to be in the system, you have to endure. But most of all, believe! Believe in what you truly are. Belive in yourself, and be honest about what you are. If you are not as good as the world, try to improve; if you still can't, reconcile to what you can be.
As always, you can never say what is right or wrong. It is a matter of perspective and circumstance. I was reminded of what a senior colleague had said a few years back, while referring to a star performer in our office. The person who is considered knowledgeable in a certain situation or environment is not necessarily knowledgeable in a different situation or environment. You are relative to where you are!
There is little you can do to others! But there is a lot you can to yourself! The wisdom is in knowing the difference!
So these people have their set of standards which they hold to be sacred, against which you are compared. And eventually more such people join together and form a coterie. This coterie will talk behind your back about how bad you are.
I must admit that at times, even I behave in this fashion. When I look down upon people who I think are not up to the mark, I do precisely what I otherwise detest.
What could one possibly do in such a situation? Avoid or Endure! If you can, you move on to other things, where these people won't affect your life. Get out of the loop. And if you can't, and you need to be in the system, you have to endure. But most of all, believe! Believe in what you truly are. Belive in yourself, and be honest about what you are. If you are not as good as the world, try to improve; if you still can't, reconcile to what you can be.
As always, you can never say what is right or wrong. It is a matter of perspective and circumstance. I was reminded of what a senior colleague had said a few years back, while referring to a star performer in our office. The person who is considered knowledgeable in a certain situation or environment is not necessarily knowledgeable in a different situation or environment. You are relative to where you are!
There is little you can do to others! But there is a lot you can to yourself! The wisdom is in knowing the difference!
The eternal optimist
I call myself an eternal optimist, a cautious one at that, but I'm sure of the direction. The last few months have been quite challenging for me, but I'm not too hassled about it. I might've been worried several times about circumstances around me. But I feel I've remained positive about what will eventually emerge. I think of good things that will happen to me and feel better.
Why am I saying all of this now? I came across a website called 'Optimist World' this morning who claim to be an antidote to the pessimism that surrounds us in daily life. A good website that brings positive thoughts, good news and stories of inspiration every morning.
And I liked this quote that seemed to be apt to my current circumstance. "Don't wait until everything is just right. It will never be perfect. There will always be challenges, obstacles and less than perfect conditions. So what. Get started now. With each step you take, you will grow stronger , more skilled, more self-confident, and more successful" Exactly what I needed to do now.
And another one "When it comes to pursuing the life of your dreams, you can look at it like this. Best case scenario: the sun, the moon and the stars. Worst case scenario: the sun, the moon and the stars"
What am I waiting for?
Why am I saying all of this now? I came across a website called 'Optimist World' this morning who claim to be an antidote to the pessimism that surrounds us in daily life. A good website that brings positive thoughts, good news and stories of inspiration every morning.
And I liked this quote that seemed to be apt to my current circumstance. "Don't wait until everything is just right. It will never be perfect. There will always be challenges, obstacles and less than perfect conditions. So what. Get started now. With each step you take, you will grow stronger , more skilled, more self-confident, and more successful" Exactly what I needed to do now.
And another one "When it comes to pursuing the life of your dreams, you can look at it like this. Best case scenario: the sun, the moon and the stars. Worst case scenario: the sun, the moon and the stars"
What am I waiting for?
Wednesday, September 16, 2009
How much do you earn?
Something distrubing kept me occupied all day yesterday. And for quite a while, I couldn't understand what it was. And then mid-day it struck me. It doesn't matter what it is, but I realised many things as I was observing how I reacted to this circumstance.
How much do you earn? You generally don't share this piece of information with anyone outside of family. It is meant to be kept confidential, primarily because people start judging you on this basis. How much you earn, is a key measure of how much you have accomplished in life. I was quite surprised when an acquaintance of mine asked me this question. And he seemed to derive great pleasure (That is my assessment of the way he reacted) from the fact that he was earning more than me, though he was younger.
I always maintain that this does not affect me. But I realised that somewhere in my sub-conscious mind, it was disturbing me. The fact that I am not interested in this race remains, but I stop to think.
How much do you earn? You generally don't share this piece of information with anyone outside of family. It is meant to be kept confidential, primarily because people start judging you on this basis. How much you earn, is a key measure of how much you have accomplished in life. I was quite surprised when an acquaintance of mine asked me this question. And he seemed to derive great pleasure (That is my assessment of the way he reacted) from the fact that he was earning more than me, though he was younger.
I always maintain that this does not affect me. But I realised that somewhere in my sub-conscious mind, it was disturbing me. The fact that I am not interested in this race remains, but I stop to think.
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