Deepak Panigrahy
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Saga of Acquisitions

For past couple of months, the acquisition and legal departments of some major companies were in action. And I am sure this is just a beginning in what we are seeing as a trend now.

Acquisitions are not new to us. They happen for some reasons:

  • Bigger companies acquire small companies to keep up the pace of innovation and creativity.
  • Bigger companies want to supress competition.
  • Smaller companies want to make quick bucks.
  • VCs want a lucrative exit and what better than getting acquired by a well known company.
  • Founders want to become VPs of big MNC companies in no time and become famous and rich.

Having said what is acquisition? Acquisition does not come alone. It is generally tied to mergers and we generally call it Mergers and Acquisition. Wikipedia defines the term as “The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity”.

In actual terms, although often used synonymously, the terms merger and acquisition mean slightly different things. When one company takes over another and clearly establishes itself as the new owner, the purchase is called an acquisition. From a legal point of view, the target company ceases to exist, the buyer “swallows” the business and the buyer’s stock continues to be traded.

In the pure sense of the term, a merger happens when two firms agree to go forward as a single new company rather than remain separately owned and operated. This kind of action is more precisely referred to as a “merger of equals”. The firms are often of about the same size. Both companies’ stocks are surrendered and new company stock is issued in its place. For example, in the 1999 merger of Glaxo Wellcome and SmithKline Beecham, both firms ceased to exist when they merged, and a new company, GlaxoSmithKline, was created.

I am sure you would agree with me that we don’t see mergers often and most of the times, it is acquisitions. So why acquisitions are gaining steam now?

As I say it to everyone who ask me about the recent acquisitions: This era is going to go into the history as one of the golden periods. People who will dare and innovate will create history and others would just continue to do what they do in their daily life. I am also doing my bit and I am trying and will continue to strive.

Recent acquisitions are examples of what I am saying: Microsoft buying Skype for whooping $8.5 Bn. But why Skype for such a huge amount? As experts have to be believed, the biggest reason behind this acquisition was fear of Google. Lets try to analyze this logic. If Google would have bought Skype, the most closest thing that I think Google would have done with Skype is to find a way to integrate Skype with Google Talk. This would have definitely helped Google a lot as Skype has a huge subscription base. And as far as I know personally, a lot of start-ups use it extensively for their business purposes.

Skype is a big story but for me, I felt excited and almost jumped out of my seat when I heard that Google acquired TalkBin. I know you might be thinking that who is TalkBin and whats so special about it. The excitement is not because Google acquired yet another start-up but TalkBin was 5-month old start-up when it got acquired.  Founded in December 2010 by Qasar Younis, Michael Ma, and Sunny Dhillo, TalkBin offers a platform that lets customers give immediate feedback to local businesses (users submit their opinions and critiques via mobile applications, and it looks like the businesses can read and respond to them from a web app). Now thats what I feel each one of us has to copy back in India. Working for an MNC is okay but ultimately such things are going to define our next generation.

On another note, Yahoo acquire IntoNow. IntoNow is a cool technology with an application that allows users to find, discuss and follow their favorite television programs. IntoNow has indexed more than five years of US based television programming, creating a rich database to build video discovery and programming experiences. IntoNow is able to identify content down to the airing, episode and time within the program as well as provide program information and links associated with it, all within a matter of seconds.

With so many things buzz and positive energy around, I feel the day for me is also going to come soon. It is just a matter of time. I want to be part of some exciting people, working and promoting a cool product and spending time among enthusiastic and aspirational people. I feel it is time for all of us to look beyond sitting inside AC in an MNC. Will we do it? Will I do it? I can’t answer that now. I completely understand that circumstances play a significant role in such initiatives but circumstances change and so do we.

Nevertheless, I re-iterate what I have mentioned in lot of my earlier posts. This era is going to go into the history as one of the amazing period and honestly, I want to be part of it and want to be part of in a big way. I urge all of you to do the same because that is the only way India can truly prosper. You will amazed to know that Small Medium Businesses in India comprises of 99% of all the business houses in India and 99% of these businesses contribute to more than 50% of India’s GDP. I predict that this number is going to go up from hereon and we will see some of us to dare to pursue their dreams out of the closed cubicles. Till then, enjoy :-)

Sources: http://techcrunch.com/2011/04/25/google-acquires-talkbin-a-feedback-platform-for-businesses-thats-only-five-months-old/

http://ycorpblog.com/2011/04/25/intonow/

Facebook Deals: What does it mean?

Did you hear? Facebook declared its royal entry today with Facebook Deals. What does it mean? At the very outset, it sent warning signals to all heavyweight champion startups like groupon, deals2buy, buy, snapdeals and many more. Lets try to understand why I feel Facebook has a huge potential to grab the market from its competitors. Facebook Deals was not new to me and I was aware of its arrival 2-3 months back when I first received notification from Facebook directly. Somehow, either Facebook likes my blog or has been kind enough to let me know of its deal arrival. I take this opportunity to thank Facebook for it.

Firstly, Facebook today boosts of one of the biggest user base in the world. There is no doubt about it. This is definitely a big advantage for facebook. Personally, I don’t have such a huge network on any other social networking platform that I have ever used. moreover, I can trust my facebook friends because I don’t connect with anyone I don’t know or I did not have proper introduction. So, in terms of deals, it is win-win for both facebook and its users.

Secondly, have you ever noticed the power of facebook? People who have never done so, I would recommend them to put an eye on Facebook Stories. Why? Just a quick glance can give you enough hints of what I am trying to say. These are the personal stories of people how Facebook has assisted them to remain or find close friends and/or relatives. Such stories have give strong personal and emotional attachment to the huge success of Facebook (Don’t foregt after all, we are all humans and we are emotional beings who can think and act).

Thirdly, we have seen how Facebook positioned itself in terms of advertising space. I believe if I am not wrong, Facebook has one of the costly advertisement pricing policy over Internet today but still they manage to make money out of it. Facebook Credits have been extremely successful and I have observed a lot of startups being built on those aspects. Facebook Credits in itself has created ahuge market for advertising in itself.

Clearly, the above three strong reasons makes Facebook one of the strongest brand of the world today. So, why groupon like companies will struggle?

Before we try to throw a light on the above question, I must say that I feel the timing of Groupon IPO has been perfect. If it would have been delayed further, it would have lost a lot due to this step of Facebook. So, Groupon’s entry and its decision to go for IPO could not have been better. Companies like Groupon, snap deals will struggle now. I believe that with such a huge user space, more companies will trust Facebook blindly and it will depend on little bot of effort from facebook to get the things going and if it could trigger the deal sales, it will grow like a wild fire.

So, where are we heading up to? I see the competition to get more fierce in coming times. I would not be surprised if Amazon, Google, InMobi like players join the war. I, also, see a lot of acquisitions happening in this space. What does it mean to the customers or people like us? Shop in  Group or with friends and get the maximum value of each penny spent. A Big Win-Win for billions of people around the world. The World is really going flatter, as predicted.

The one space that I feel needs that real can be explored is the location and real-time price comparison of products in a certain area. Foursquare is closely following on this road but there is still of work to be done there. But the pace that we are seeing today, it won’t be too late before we see this voidness also vanish in no time.

Google & InMobi

Today, as I was reading through the article about InMobi, an Indian startup that has been consistently getting rave reviews in the market. I have been always been a huge fan of Young Turks and that is one thing which has always inspired and motivated me through thick and thin lines of my career and I am sure it will continue to do so. I take this opportunity to thank CNBC TV18 for such an amazing program. But this article is not about CNBC TV18, it is about InMobi.

Till early this year, I don’t know why but I never heard about this startup at all. But with this article, I was refreshed about my memory of InMobi when I first heard about it in January. As I browsed through their website today, it was a great feeling. Time is changing and so does the tides have started to flow from the reverse direction. Gone were those days when the market was driven from developed countries like USA. I was not fortunate to be in the Silicon Valley because I still pity on those people who go for monotonous jobs in the Silicon Valley but I can definitely fortunate to be at a place where markets are being driven today and I see that happening more often from hereon. This whole thing is exciting and being an aspiring Entrepreneur, I do look forward to jumping into this sea sometime soon. InMobi is a classic example of what I am talking about, Naveen Tiwari – an IIT graduate going for his MBA at Harvard Business School and then returning back after a brief stint to drive a business from India.

Let us take a look at the Mobile Advertising industry and InMobi today in this post.

InMobi:

  • InMobi started as Mkhoj. I remember using it occasionally earlier but I rarely used Internet on mobile phones those days. What amazed me with InMobi was not only they were smart to tap into an opportunity but also re-built their whole business from scratch even after Mkhoj. I have always believed that Entrepreneurs should always be smart to tap opportunities in the market and should not resist change and that is what defines leadership. Leaders don’t talk about existing systems and processes but they talk about how the system can be challenged for the good. Resisting change is not the sign of growth and prosperity. In my view, InMobi led this aspect by a perfect example.
  • The 60:40 revenue model is very exciting. Basically, InMobi connects the advertisers and publisher. Naveen mentioned in his interview that if $100 comes from the advertiser, InMobi gives $60 to the publisher, keeping $40 within itself. According to me, before hearing to this numbers, I never believed that a high share as much as 40% could be made this way. There are lot of players who are into advertising domains and the most common of them are the ones who divert traffic to certain blogs. But honestly speaking, I never heard of anyone mentioning as high percentage of share as 40% earlier. Kudos to the InMobi team for pulling this through.
  • The Management team of InMobi comes from varied backgrounds like MBAs, BTechs from top class schools like IITs, ISB, XLRI, HBS and XLRI to name a few. This makes the team very strong. I am not surprised why such a team should not get funded and especialy when they are doing so good.
  • InMobi has given companies like Google run for its money. InMobi is in over 140 countries in the world today serving ads to over 200 million users uniquely every month across the globe. In Japan and Europe, it is number 2. In United States where we have entered about 7-8 months ago, it is number 3 or number 4 in the market.  Isn’t it really interesting? Yes it is.
  • Naveen already talked about acquisitions and according to him, InMobi will be acquiring its first company in 3-4 months. Amazing work and my prediction is that they might either buy someone in the US or China/Korea. Why US? Because by buying in US, InMobi can give the open war with Google and Apple in the market. With Google buying AdMob and Apple buying Quattro Wireless, it will be a very good competition to watch for when an Indian company declaring big on the US shores. Why China/Korea? Because InMobi has expansion plans in these areas because of obvious big user space. Acquiring a company in China/Korea can give InMobi quick access to its vast market.
  • For people interested in this space, I would strongly recommend to go through some of the case studies of InMobi. Some of the case studies are quite appealing. I have a personal experience of their presence with Reebok T-Shirt ad during IPL and I quite enjoyed it. Going through the other case studies could give very nice perspectives.

Lets now come to the Mobile Advertising space, in general. I know that there is a lot of buzz in the air for mobile startups. With official launch of 3G in India, the whole VC industry and Entrepreneurs are going ga-ga over it. Even one of my own initiatives, might go that way in future but as of now, I am closely watching this space. One more addition to this space, would be tablets. Android and Apple are going to have an awesome time of their life. The curiosity to explore this space has made me to buy a 3G phone and have also, recently ordered iPad 2 for my own person experiments. More on the personal front, sometime later but lets try to put some interesting facts that I collected while reading through the consumer and market trend reports of InMobi. Kindly remember these facts are directly taken from the reports of InMobi website and I hold no guarantee of correctness of data.

  • Informa Telecoms & Media estimates that the global mobile data services market , including mobile advertising, was worth
    U.S. $224 billion in 2010. Over the next four years the market will increase to U.S. $340 billion in 2014.
  • 15 emerging countries – China, India, Indonesia, South Africa, Nigeria, Egypt, Turkey, Israel, Saudi Arabia, Brazil, Mexico, Argentina, Russia, Poland and Ukraine – offer substantial investment opportunities for the telecom and advertising industries due to the sheer volume of mobile subscriptions in these markets, and continuing mobile penetration. It is not surprising to note that 30% of mobile data services revenues were generated by these 15 countries in 2010. So, what do you feel is driving these revenues in these countries? Obviously, the low cost feature-rich mobile phones. Visit India and watch any person, to day there might be more mobile phones in India than the toilets.
  • According to Informa, the mobile phone subscriber market of India and China alone will be around 734 million in 2014 from 334 million in 2010.
  • Informa also quotes that the global mobile advertising revenues will rise from $3.5 Bn in 2010 to $24 Bn by 2015, with Asia Pacific contributing to 31% of the share, led by India and China.
  • InMobi research gives very impressive signals on usage of mobile advertisements by consumers when they get free apps or 10% discount on their phone bill. A significant number of consumers might also be attracted to personalized ads. At the same time, consumers have been found to have less attention to free and useful ads.
  • Comfort level of consumers with the mobile advertisements is one of the biggest strong findings in the InMobi research. People seem to be very comfortable rather being apprehensive.
  • InMobi grew by 21% from December, 2010 to March, 2011 giving strong signals of global rise in mobile advertising industry.
  • The Key driver of markets now is the smartphones, which in itself grew by 34%.
  • Android took over as the most used OS over iPone OS. Nokia OS still continues to lead the market share but Android and iPhone are closing on it. The recent Nokia-Microsoft Partnership is a clear example of worries of Nokia losing its mobile platform share rapidly.
  • Android and Apple are clear favorites in the OS platform in both Europe and US while Apple is the largest manufacturer of mobile phones in both US and Europe. The market of US is primarily driven by smartphones where the growth is as high as 50% in the 90 days with Apple growing the most due to its tie-up with Verizon.

Personally, overall, I feel mobile advertising space is going to be a very interesting space to look forward to. I feel more and more Indian companies are going to give US companies a run for its money in future. Its the time for India and we are stepping into a golden era. More companies like InMobi are going to start from emerging markets to penetrate later into developed markets of US, Japan and Europe. I see a brand new Silicon Valley being built but this time, we will be in the driver seat. I would love to see the next “Black Swan” of this world happening from India and I hope to be part of this amazing event.

References:

  1. CNBC TV18 Naveen’s Interview on Young Turks – http://www.moneycontrol.com/news/business/check-out-who-is-giving-googlerun-for-its-money_537155.html
  2. InMobi Company – http://www.inmobi.com/
  3. InMobi Research – http://www.inmobi.com/research/
  4. InMobi Company – http://www.inmobi.com/company/
  5. InMobi Blog – http://www.inmobi.com/inmobiblog/

Learn Confidence from Google

Do you believe you have confidence? Do you believe in yourself? Are you ready to go out there in the open and question your identity and authority? Are you ready to be criticized? Are you are ready to look yourself into the mirror and say that this is who I am? Are you ready for change – the only universal truth of life? Are you ready to transform? At first go, all these questions look scary. Isn’t it?

Lets be honest with ourselves. These questions are scary and most of us, including me, try not to answer them. But look at it closely, isn’t this the other definition of life? I believe it is. I have accepted it and in the process of accepting the one and only truth of life: CHANGE. But to accept the eternal truth, one needs to have confidence and confidence in plenty. The confidence should be of it utmost purest form, which even when challenged will never kneel down. The confidence will be the armor against all odds, making way to our dreams.

So, where is this confidence? How can I find it? Will it remain with me? There are lot of questions that immediately pop up the heads. Lets try to look into these questions bit colsely.

Where is this Confidence? Confidence is not in the head. Its within you. The mantra is not about finding confidence from thinkings rather from inner self. Its within our hearts. Its within our beliefs. There is a thin difference between confidence and arrogance. Confidence gives positive energy and spreads the same around us. In other words, confidence is the way to prosperity and happiness. On the other hand, arrogance is exactly the opposite. Arrogance brings sadness, frustration and more frustration. Confidence makes the world around you feel proud of what you are doing but arrogance makes only you proud.

How can I find it? Find confidence in what you love to do. It may not be easy because in reality, the world behaves in such a way that makes a vicious cycle that revolves in 360-degree without  any clue. It may be very hard. But there is definitely a way and as I mentioned earlier, the only way to find confidence is to look within and follow your love.

Will it remain with me? I believe Confidence can remain always with you. Confidence is like a farmland. You need to sow right seeds, give enough nutrients, water, sunlight and keep watching it from weeds and other plant pollutants. The more one looks within and tries to cultivates it, the more it grows and keeps you to step the right foot forward.

To illustrate all of the above, let me bring forward an example of an amazing Black Swan: The Google. Google recently announced a cash prize of $20 grands in cash anyone breaks the Google Chrome browser on the first day. Last year, Google Chrome browser was the only browser that left unhacked in the conference. For people who do not know about PWN2OWN, it is one of the biggest platform for the hackers where participants try to hack various browser and mobiles. Last year, we saw how Apple released a lot of patches for the bugs unveiled for its Safari. This year, when Google Chrome was not included in the browsers’ list to be hacked by  hackers, Google came forward and announced it bounty.

So, is it arrogance or confidence? I believe it is confidence and this is exactly I am talking about. First of all, let me be very clear. People may be arrogant when they are either very stupid or useless and low standard. Good reputable people are confident. And that is what I would like all of us to have.

Most importantly, it is your confidence that tells your true worth no matter where you are and what you might be doing. Confidence is treasure which boost the morale of an individual and helps in keep chasing his dream despite all odds. Learn to cultivate this farm and I am sure all of you will find the individual you are looking for inside you.

Power Learnings from Steve Jobs

As I read this article, I lost myself with Steve Jobs. I, still, remember when I first read about Steve Jobs in iCon. I had heard about Steve earlier but the book made me fall in live with his leadership style. I always hoped that someday I could have made to one Apple Conference and meet this iconic personality, who has so much to offer with his individual presence: management, presentation, leadership, perseverance and many more. As Steve Jobs announced his second indefinite medical leave, Apple shares were bound to take a beating and I feel it should not have surprised many other like me. This post is about analyzing few points that the article tries to address about Steve Jobs and the POWER. As I have consistently mentioned in my earlier posts, we, Indians, are little bad with powers and History has proved it again and again. Most of us have a bad notion of POWER and for us, POWER is just another way to utter sentences like ” Do you know who I am or I am your —————- (You fill in the blanks and bang you are that) and mark your presence without any personal significance. Individuals find ways to stamp their authority everytime.

But lets come back to the article, I am referring to. The first power lesson the article points to is :

“power can result from sheer drive, persistence, resilience, and the ability to tolerate conflict”

Steve Jobs is definitely an inspirational figure for the above lesson. I agree with the author when he mentions that Jobs persisted, sticking with his same focus on the user interface, his fundamental vision of ease of use and cool design, but also learned from the setbacks. People who would have seen “Pirates of Silicon Valley” would know the history that Apple was once written off the radar and so does Jobs. But he held on to his dream and vision only to come back strongly later. Remember his last turnaround, he was sick. The whole world wrote him off, media said Jobs is gone but he again came back only to introduce another killer product – iPad. So hold on and hold tight to your dreams.

The second power lesson the article points to is:

power can come through the projection of an image of strength that may not yet be the reality”

Remember, what apple store has done to various software developers. It has given a platform for enthusiastic software developers to pursue tehir passion yet not only make money but also become famous. Stanford did not think at all to introduce a course in its computer science curriculum that promotes students to develop apple software application as part of its course. Pulse, an iPad application, is the recent success and latest sensation resulting from it. Android and Nokia followed the store concept of success with their own stores. But Apple did it first. So, powerful people project an image of strength and sustainability.

The third power lesson the article points to is:

“likeability is not a prerequisite to power”

Great and the one thing that I personally love the most. It is not necessary that all powerful people are likeable but as a matter of fact, very few are. It is a very well known fact that Steve Jobs is sometimes heavily criticized for his attitude and actions. One of the example that the article cites is a prime example: “Being Steved”. Being Steved is the official term for Apple employees getting fired by Steve Jobs. In the incident mentioned in the article, when the employee was packing up his things after getting fired by Steve Jobs, Steve Jobs comes by and inquires. And says, you are re-hired. I have personally heard of stories about people who were fired by Steve Jobs only to leverage on the opportunity of getting fired by Steve Jobs to make it big in their life.

Bottom line is: Apple is a success and a lot of its credit goes to Steve Jobs. He is a visionary person, may not be liked by all but he is a successful figure who knew how to make his own ways. Not to forget, his charismatic presence only puts the tagline that we see on Apple products. Personally, I feel this time the medical leave might last a little bit longer and may be a good strategy for Apple to prepare its successor while the market accepts the change and accepts the new Apple as we love today.

Source Article: http://blogs.hbr.org/cs/2011/01/steve_jobs_a_study_in_power.html

Winning-Take 2

This post is in continuation to my earlier post on Winning-Take 1. Earlier, I wanted to go one chapter at a time, which I like but now, I am going to pick chapters as I feel about it. So, the chapter of the discussion will be random but at the end of this series, I feel I am going to share a lot of myths and usual working professional style in conjunction with the book.

We are going to concentrate Take 2 on “Leadership”, one of the most confused and badly defined word in today’s corporate world. Well, we will first point out the the different traits the book discusses as the defining characteristics of “Leadership” and then discuss them all putting the present scenario around and break some of the common myths that we see around. Before that, let me be very clear, all managers are not at all “leaders” but all leaders are definitely good managers. This statement makes us ask why there is a question on “managers”. Well, because in the corporate world, unfortunately managers (or sometimes, Leads such as Project Leads, Team Leads) are named as leaders. I am sure one would have encountered a statement like this too often, “we choose to decide Mr. XXX to lead the team. Again, a wrong word all in all. It should be “manage” and sometimes, it just remains to few predetermined guidelines with no power at all. At times, I have heard my friends say to me, I don’t know what’s wrong with Mr. ABC. He was a good guy till he became a manager. Now, he feels as if like he owns us. In other terms, Hitler left his hierarchy as attitude of managers.

According to Jack Welch, the following traits define a leader:

  1. Leaders relentlessly upgrade their team, using every encounter as an opportunity to evaluate, coach, and build self-confidence.
  2. Leaders make sure people not only see the vision, they live and breathe it.
  3. Leaders get into everyone’s skin, exuding positive energy and optimism.
  4. Leaders establish trust with candor, transparency, and credit.
  5. Leaders have the courage to make unpopular decisions and gut calls.
  6. Leaders probe and push with a curiosity that borders on skepticism, making sure their questions are answered with action.
  7. Leaders inspire risk taking and learning by setting the example.
  8. Leaders celebrate.

Let us consider point 1. Three points become prominent here: Leaders evaluate, coach and finally, build self-confidence. Evaluate what? Evaluate making sure right people are in the right jobs, supporting and advancing those who are. There is an issue here in advancing. In my short career span, I have seen a lot of highly talented people going mediocre because his/her manager does not care about him. The general statement is: one is paid for doing something in the job, no matter it is a routine job. Well, be careful when you hear these words. These are kind of “signals”, signals that convey that you are at the wrong place and with a wrong person. Once evaluated, Leaders Coach, helping people improve in every way possible. And finally but most importantly, Leaders build self-confidence poring out encouragement, caring and recognition. Why point is important is that too many managers limit the people development to annual performance review and sometimes, just in discussions rather than being open in with the comparisons. Many times I have heard that don’t compare yourself, but then I have one question for all those: when one is given 4/10 and 9/10 in performance, then it makes me hard to believe one has not been compared because for simple reason that it is not a Mathematics course test, where you multiply right to get the right answer immaterial of what.

Point 2: Vision. This is one characteristics that will differentiate the leader from usual managers. Leaders possess visions and they don’t fear to communicate it. I feel visions should be loud and loud enough that everyone hears it. But no vision in worth the paper it’s printed on unless it is communicated constantly and reinforced with rewards. Only then will it leap off the page and come to life. Please don’t confuse vision with “deadlines” or “expectations”. We will take about them sometime later. Vision is something a leader visualizes for the benefit of the whole group for a long term. Visions can make a simple manager CEO and its group as the star performing group of the organization. And of course, please don’t confuse it with number of years that one has to stay with the organization. Generally, when an organization grows to a big size, the general rule dictates one has to stay for x years to be at Y position. This is not vision. Vision is something that will break these borders, redefining the rules of the game by setting news standards and if a general rule is x years, then in x-z years, one gets the position, where z is a substantial period.

Point 3: There is an old saying, “The fish rots from the head”. It’s mainly used to refer to how politics and corruption filter down into an organization, but it could just as easily be used to describe the effect of a bad attitude at the top of any team, large or small. Eventually, everyone’s infected. An upbeat manager goes through the day with a positive outlook somehow ends uo running a team or organization filled with…well, upbeat people with positive outlooks. A pessimistic sourpuss somehow ends up with an unhappy tribe all his own. The right attitude makes a manager leader.

Point 4: With Indian attitude, becoming a manager (or so called leader) is a real power trip. Probably, more than an individual, it is our society that has imbibed this attitude but the issue is we resist to change. Such people relish the feeling of control over both people and information. And so, they keep secrets, reveal little of their thinking about people and their performance, and hoard what they know about the business and its future. With this attitude, they forget that leaders are leaders because people feel strongly about their leadership skills and not because someone is a Manager by the tag name. Trust plays a major role here but honestly, you know it when you feel it. It is that simple. Most importantly, leaders take responsibility for what’s gone wrong and generously pass around the praise. To be a good leader, never forget you weren’t give an crown, you were give a responsibility to bring out the best in others. For that, your people need to trust you. And they will, as long as you demonstrate candor, give credit and stay real.

Point 5: Leaders don’t fear to make tough calls because they don’t consider themselves to be in a popularity contest. I feel one’s gut feelings play a very important role here.

Point 6: When you are an individual contributor, you try to have all the answers. That’s your job – to be an expert, the best at what you do, maybe even the smartest person in the room. When you are a loeader, you job is to have all the questions. You have to incredibly confortable looking like the dumbest person in the room. Every conversation you have, must have “What if?” and “Why not?” and “How come?”. Questioning alone, however, is not enough. You have to make sure your questions unleash debate and raise issues that get action. At the same time, what distinguishes a leader from a manager is leaders know that saying something doesn’t mean it will happen.

Point 7: Winning companies embrace risk taking and learning. But in reality, these two concepts often get lip service – and little else. Too many managers urge their people to try new things, and then whack them in the head when they fail. And too many live in not-invented-here wordls of their own making. Leader set examples themselves if they their people to experiment and expand their minds.

Point 8: What is it about celebrating that makes managers so nervous? Maybe throwing a party doesn’t seem professional, or it makes managers worry that they won’t look serious to the powers that be, or that, if things get too happy at the office, people will stop working their tails off. One another eason is as if like they are spending fro their own pocket for the celebration. Whatever be the reason, there is just not enough celebrating going on at work – anywhere. What a lost opportunity. Celebrating makes people feel like winners and creates an atmosphere of recognition and positive energy. Imagine a cricket team winning the World Cup without champagne spraying everywhere. You just can’t! And yet companies win all the time and let it go without so much as a high five. Work is too much part of life not to recognize moments of achievement. Grab as many as you can. Make a big deal out of them. If you don’t no one will.

To summarize, the beat leaders care passionately about their people – about their growth and success. And we can find them comfortable in their own skins. They are real, filled with candor and integrity, optimism and humanity. Please don’t fall into the trap that leadership happens one day when one becomes a boss and gets the power to change the rules.

Disclaimer: In no form, the above perceptions can be related to any particular individual or organization. In case done so, I take no responsibility and the firm/individual will be doing so for its own insecurity, thus, proving the negative effects mentioned being followed by themselves.

Winning Take1

Some of you might know, I am currently reading a book titled “Winning” by Jack Welch with Suzy Welch. This is my first attempt to write something about a book, in detailed fashion. As I read, we are going to have more reviews and perceptions.

I am going to devote the Part1 to Second Chapter “Candor Effect”.
I am still new to the industry but at the same time I feel that my observations have been very rich. The benefit I have from my observations will be in future. Hopefully, I will have the freedom to speak and act which I see a lot of managers not being able to do and thus, continue to harm the long term growth prospects of a firm. I have been in IT industry for quite some time now. So, let me tell you what I have felt strongly. IT managers are neither MANAGERS nor LEADERS. I feel they don’t fall in either of the categories. According to the industry trends, mergers and acquisitions is the buzzword. Developments and Inventions have been done. They hire nice smart people not to make them smarter but to make them mediocre. A lot of time, we, ourselves, don’t speak our feelings and minds and even if we do, the so-called managers never take it upward. Irrespective of place, I have found this attitude of Indians very disturbing. To some extent, I feel we are socialized from childhood to soften bad news or make nice about awkward subjects. Till date, parents hesitate to talk about sex to their children. Isn’ t it? How can a company justify with “average” hikes to people when it is out making huge acquisitions worth of billions and millions of dollars almost every quarter? Executives are often found to have been speaking on the importance of human knowledge power but very few of them (my experience has been NONE) actually practices them. Everyone knows that showing EPS to an investor quarterly is good but if someone has to show it consistently and for a long period of time, one has to look within and that’s where almost all IT MNC’s are lacking. Currently, I find most of the so-called managers hiding themselves behind the processes and rotting systems and giving various explanations instead of fighting for the right. One question to all: As a father, if something wrong or bad has happened to you, you try your best not to develop the similar circumstances for your son/daughter, then why how do do you justify to your sub-ordinates that your experience of x years has seen the same trend and hence, is justifiable irrespective of the fact that it is WRONG? To all CEOs, Mind you Sir, by having such so-called managers you are actually driving your firms to extinctions rather than growth and prosperity.

Coming back to the candor effect, it is about giving the freedom to the employees and well-wishers to speak and be heard. So, how is it useful?

  1. Candor gets more people in the conversation and when you have more people in the conversation, you get ideas rich. More ideas surface, discussed, pulled apart, and improved.
  2. Candor generates speed. When ideas are in everyon’e face, they can be debated rapidly, expanded and enhanced, anmd acted upon.
  3. Candor cuts costs. Meaningless meetings and reports (IT MNCs are now know for this two qualities) are cut down by candor.

Therefore, no matter which B-School you attended, irrespective of that one must know lack of candor blocks smart ideas. fast action, and good people contributing all the stuff they have got. It’s a killer. Eventually, we realize that people don’t speak their minds because it’s simply easier not to. It is true that candid comments definitely freak people out at first but then if you are an effective manager and leader, it is your responsibility to get candor and to do so, praise it, reward it, and talk about it. Most of all, you yourself has to demonstrate it in an exuberant and even exaggerated way. Personally, I would like to see a firm where a voice of lowest grade employee, provided it is justified and reasonable, reaches to the CEO irrespective of the levels of hierarchy between them.

Disclaimer: In no form, the above perceptions can be related to any particular individual or organization. In case done so, I take no responsibility and the firm/individual will be doing so for its own insecurity, thus, proving the negative effects mentioned being followed by themselves.

The Law of Garbage Truck

Few days back, I received an amazing article over my newsgroup and I could not resist myself sharing it. The fact is we see so many real life experiences pertaining to this situation that it becomes very very difficult to contain orselves against undesirable people and circumstances. In the below article, David cites one incidence of life that transformed his way of thinking and I feel the same applies to each one of us. Personally, I encounter people such as the ones mentioned in the article in my office, in my social gatherings and all around. I, generally, ignore such people completely but it pisses me off when people act very irresponsibly in the volunteer activities.

I was completely influenced by each and every word of David in the article and when I wrote an email seeking permission to publish the content of the below article on my blog, his response was very very humble and encouraging. In fact, we connected each other on a common platform of Software Industry. David is also publishing his book The Law of the Garbage Truck: How to Respond to People Who Dump on You, and How to Stop Dumping on Others, which will be released on October 5.  I am now looking forward to his book eagerly.

So , here goes the article:

How often do you let other people’s nonsense change your mood? Do you let a bad driver, rude waiter, curt boss, or an insensitive employee ruin your day? Unless you’re the Terminator, you’re probably set back on your heels. However, the mark of your success is how quickly you can refocus on what’s important in your life.

Sixteen years ago I learned this lesson. And I learned it in the back of a New York City taxi cab. Here’s what happened.

I hopped in a taxi, and we took off for Grand Central Station. We were driving in the right lane when all of a sudden, a black car jumped out of a parking space right in front of us. My taxi driver slammed on his brakes, the car skidded, the tires squealed, and at the very last moment our car stopped just one inch from the other car’s back-end.

I couldn’t believe it. But then I couldn’t believe what happened next. The driver of the other car, the guy who almost caused a big accident, whipped his head around and he started yelling bad words at us. How do I know? Ask any New Yorker, some words in New York come with a special face. And he even threw in a one finger salute! I couldn’t believe it!

But then here’s what really blew me away. My taxi driver just smiled and waved at the guy. And I mean, he was friendly. So, I said, “Why did you just do that!? This guy could have killed us!” And this is when my taxi driver told me what I now call, “The Law of the Garbage Truck.” He said: “Many people are like garbage trucks. They run around full of garbage, full of frustration, full of anger, and full of disappointment. As their garbage piles up, they look for a place to dump it. And if you let them, they’ll dump it on you.

So when someone wants to dump on you, don’t take it personally. Just smile, wave, wish them well, and move on. Believe me. You’ll be happier.”
So I started thinking, how often do I let Garbage Trucks run right over me? And how often do I take their garbage and spread it to other people at work, at home, or on the street? It was then that I said, “I don’t want their garbage and I’m not going to spread it anymore.”

I began to see Garbage Trucks. Like in the movie “The Sixth Sense,” the little boy said, “I see Dead People.” Well now “I see Garbage Trucks.” I see the load they’re carrying. I see them coming to dump it. And like my taxi driver, I don’t take it personally; I just smile, wave, wish them well, and I move on.

One of my favorite football players of all time was Walter Payton. Every day on the football field, after being tackled, he would jump up as quickly as he hit the ground. He never dwelled on a hit. Payton was ready to make the next play his best. Over the years the best players from around the world in every sport have played this way: Muhammad Ali, Nadia Comaneci, Bjorn Borg, Chris Evert, Michael Jordan, Jackie Robinson, and Pele are just some of those players. And the most inspiring leaders have lived this way: Nelson Mandela, Mother Theresa, Gandhi, and Martin Luther King.

See, Roy Baumeister, a psychology researcher from Florida State University, found in his extensive research that you remember bad things more often than good things in your life. You store the bad memories more easily, and you recall them more frequently.

So the odds are against you when a Garbage Truck comes your way. But when you follow The Law of the Garbage Truck, you take back control of
your life. You make room for the good by letting go of the bad.

The best leaders know that they have to be ready for their next meeting. The best sales people know that they have to be ready for their next client. And the best parents know that they have to be ready to greet their children with hugs and kisses, no matter how many garbage trucks they might have faced that day. All of us know that we have to be fully present, and at our best for the people we care about.

The bottom line is that successful people do not let Garbage Trucks take over their lives.

What about you? What would happen in your life, starting today, if you let more garbage trucks pass you by?

Here’s my bet: You’ll be happier.
Source: http://davidjpollay.typepad.com/david_j_pollay/lawofthegarbagetruck.html David J. Pollay is the original author of the Law of Garbage Truck.

Hence, don’t allow anyone to dump his/her garbage on you. You can find hell lot of people around always trying to find a truck to dump their garbage. Don’t you remember when your school teacher would have scolded you of no fault of yours. The same situations can very well be observed from parents at home due to office tensions and the vice versa applies equally well. Beware of your own truck and do inspect what you are carrying and loading onto it. Good Luck and have a meaningful and successful life!!!

Reality of Today

Recently, I got an email from one of my friends and it really touched me. This post is going to be a question for all of us out here busy to make our marks in our own way without realizing how we might be affecting others life. I hope you will like the story as much as I did.

A woman came home from work late, tired and irritated, to find her 5-year old son waiting for her at the door.

SON: ‘Mummy, may I ask you a question?’

MUM: ‘Yeah sure, what it is?’ replied the woman.

SON: ‘Mummy, how much do you make an hour?’

MUM: ‘That’s none of your business. Why do you ask such a thing?’ the woman said angrily.

SON: ‘I just want to know. Please tell me, how much do you make an hour?’

MUM: ‘If you must know, I make  $20 an hour.’

SON: ‘Oh,’ the little boy replied, with his head down..

SON: “Mummy, may I please borrow $5?”

The mother was furious, ‘If the only reason you asked that is so you can borrow some money to buy a silly toy or some other nonsense, then you march yourself straight to your room and go to bed. Think about why you are being so selfish. I don’t work hard everyday for such childish frivolities. ‘

The little boy quietly went to his room and shut the door…

The woman sat down and started to get even angrier about the little boy’s questions. How dare he ask such questions only to get some money?

After about an hour or so, the woman had calmed down , and started to think:

Maybe there was something he really needed to buy with that $5 and he really didn’t ask for money very often.The woman went to the door of the little boy’s room and opened the door.

‘Are you asleep, son?’ She asked.
‘No Mummy, I’m awake,’ replied the boy

‘I’ve been thinking, maybe I was too hard on you earlier’ said the woman. ‘It’s been a long day and I took out my aggravation on you. Here’s the $5 you asked for.’

The little boy sat straight up, smiling. ‘Oh, thank you Mummy!’ he yelled. Then, reaching under his pillow he pulled out some crumpled up bills.

The woman saw that the boy already had money, started to get angry again.

The little boy slowly counted out his money, and then looked up at his mother.

‘Why do you want more money if you already have some?’ the mother grumbled.

‘Because I didn’t have enough, but now I do,’ the little boy replied.

‘Mummy, I have $20 now. Can I buy an hour of your time? Please come home early tomorrow.
I would like to have dinner with you.’

The mother was crushed. She put her arms around her little son, and she begged for his forgiveness.

In short, It’s just a short reminder to all of you working so hard in life. We should not let time slip through our fingers without having spent some time with those who really matter to us, those close to our hearts. Do remember to share that $20 worth of your time with someone you love.

If we die tomorrow, the company that we are working for could easily replace us in a matter of hours. But the family & friends we leave behind will feel the loss for the rest of their lives.

Prioritizing Life

One of my dear friend, classmate, ex-colleague and ex-roommate forwarded me an email, which clearly depicted the truth of life. The short story was in the language of “Hindi and I used Google Translator to convert it to English. after which I had to do few changes (Of course, Software are always dumber than us!). So , here it is:

When we want to do a lot of things quickly at the same time, when we desire to get everything rapidly, and we feel that twenty four hours a day is also a very less, we recollect this, ” A glass Jar and two cups of tea”. A professor of philosophy walks into a classroom to teach an important lesson of Life today. He places the glass jar on the table along with table tennis balls. He, then, begins to put a ball on by one as long as there’s no place left in the jar. He asks the students – Is the entire Jar full? The students say – “Yes”.

The Professor then starts filling the jar with small – small gravels slowly. He moves the Jar so that he can fill all the empty space possible. The professor asks again – “Is now the jar full?”. The students once again say – “yes”.

Now, the Professor gets his sand bag and start filling the jar with sand till the extent possible. Now the students sensed their immaturity. The professor asks again, It is now full, I guess, right? All said in one voice – “Yes, now it is completely full”. The professor then grabs two cups of tea from under the table and tries to fill into the jar. The tea slowly slips into jar slowly.

With a pause and serious voice, the professor says, “Students, you consider your life like this jar”. The most important part of your life are the table tennis balls namely God, family, children, friends, health and hobbies; the small gravel mean your job, car, house etc.; and the meaning of the sand and small – little things like useless, bad fight and quarrels. Now if we would have filled the jar with sand first, then there would not have been any place for the table tennis balls. In case we would have filled the jar with gravels, then probably sand could have find some place but there would not have been any place for table tennis balls, for sure.”

The Professor continues, “The same logic applies to life also. If we spend all our time and energy in small and unimportant things, it would destroy the important ones and we would not have any time for the most important people in our life. For the happiness of mind, it is important that you decide what to do. Play with your children play, water the garden, go for morning walk with your wife, throw useless stuff from home, do regular medical check – ups. Arrange your table tennis balls first, worry about them, they are the most important. First decide what is important, The rest is sand.”

The students listened carefully the professor. Suddenly one of them asks, “Professor, but ” What are those two cups of tea? The professor replies smilingly, “I was thinking why anyone did not ask this question?” and answered, ” No matter how much we feel that our life is full and satisfied, but here should be always be time to sit and drink two cups of tea with your special friends.”

Spread Love and try to create lives and not destroy. I, also, take this opportunity to pray for the troubled Indian students in Australia, who are reported to racist attacks recently and request everyone to maintain peace and love.