Deepak Panigrahy
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Happy Birthday Professor Sadagopan…

Wishing you happy 56th birthday Professor on my blog…
For the readers, Professor Sadagopan is esteemed Director of my Institute, IIITB and my favorite. A well-known and famous but at the same time very down-to-earth personality, whose every word can give inspiration and motivation for fights and struggles of life. Have a look at his homepage and his blogs with the links at the right hand side of the blog…
I still remember getting a pen from him in my first semester; though the reason being not so big (3 Essays which he liked the most on “Person who inspired you the Most”), but the experience and the moment of getting that pen from him is priceless and eternal.
May you LIVE LONG LONG AND INSPIRE THE NEXT GENERATIONS…

A Wonderful Story—Birth of an Event Organizer:Akaar

I was very touched by the entrepreneurial spirit of people like this when people live for their dreams. They breathe the dreams and the result is a very successful Company. One of them is definitely “Akaar Events“. I was going thorugh the blog of Basab when I came to know of his wife’s writing spirit has given rise to a wonderful magazine-Water, No Ice. Thanks to Vidya Pradhan and Rohini Mohan for initiating such a beautiful informative website. From there, I landed up in the Entrepreneurship Column where I came to know about this wonderful Entrepreneurial initiative of Sujatha Suresh.
Starting to earn form repairing shoe heels for 3 dollars to building a successful organizing event company is really a great and daring initiative; to be applauded and to get inspired and motivational. I would really recommend you all to go through the website of Akaar Events to know its roots. And I did not find any other better way to wish my female readers of the blog a VERY HAPPY WOMENS DAY.

Dhirubhai…The innovator of India’s globalization-Guru reviving the spirits

Last week I saw the Movie Guru-the latest Bollywood flick directed by Mani Ratnam and casting Abhishek Bachchan and Aishwarya Rai. The Movie is quite similar to the life of Dhirubhai Ambani (Don’t forget to read the famous tussle of Dhirubhai with Ramnath Goenka of Indian Express), the founder of India’s largest corporate-Reliance Group of Industries.

I personally liked the movie very much not only for its performances only but the the time at which the movie has come with a message. Now, when everyone in the world is recognizing us a mjor contributor to the World Economy and our growth rate seems to be touching the double-digit mark soon; we are still after the MNCs and foreign companies. A lot of our talent goes drained for the foreign companies and MNCs. People don’t have DREAMS and of they have they don’t dare and some who dare also, there are lot of obstacles put in front of him be it political, social or any. Now, the next revolution can come only when these barriers can be broken and the movie says this message in the very right manner.

I personally beleive that there is no doubt Information Technology market has done a great job for India but the hardline fact is IT has only uplifted the few metropolitian Middle-Class families and have only contributed in widening the gap between the poor and the rich. The perfect example is Bangalore. From a small town in mid 1990s to a much grown metro-like structure now with bad infrastructure, pollution, badly managed and planned and most importantly, one of the top two costliest cities of the country. In this run , we forget that the real people in India is the lower middle class and the poor. Imagine the life of a peon or a labour in Bangalore- I can definitely say those who feel will definitely agree with me that we can not think our lives like that.

Its good that India is marching fast in the field of IT but its necessary to take the same initiatives in other industries also if India has to eveolve as a super-power and a developed country.

I don’t know how many people will agree with my views but I feel the movie GURU has a message in it for all of us to follow. I personally adore Dhirubhai a lot from the very beginning and therefore, would like to give a brief life biography of Dhirubhai taken from a website, http://www.indiaprofile.com/people/dhirubhaiambani.htm and then later follow it with some of his famous quotes taken from the website of Reliance Industries Limited. I feel each one of us who has a DREAM in his/her life should definitely watch this movie and if not business, atleast you can learn some basic values like Patience, Zeal, Passion and Killing attitude to how to turn his/her dream into a reality.

A BRIEF LIFE OF DHIRUBHAI:

Born: December 28, 1932 Chorwad, Gujarat
Died: July 6, 2002 Mumbai, Maharashtra
Occupation: Industrialist
Spouse: Kokilaben Ambani
Children: Mukesh Ambani
Nina Kothari
Rags to riches is click that is often applied to describe the climb up the ladder of even modestly successful businessmen. But it could hardly be more appropriately used than to trace the meteoric rise of Dhirubhani Ambani, Chairman of high flying Reliance Industries, rated among the top three business groups in India today.

From an initial investment of a mere Rs. 15000 in 1958 to start a trading house, followed by the setting up of his own tiny manufacturing facility in Gujarat in 1966, Ambani, Son of a rural school teacher, has managed to build up a synthetic yarn, textiles and petrochemicals empire that is today the third largest private sector mega corporation.

For the year ended March 1991, Reliance Industries is understood to have recorded a sales turnover of Rs. 2,300 crores ( more than US $ 1 billion), making it the third largest private corporation in the country to day. Those who predicted that he was a conman, a confidence trickster, have had to eat their words. “ I am the dubble that burst!” chortles Dhirubhai, sarcastically referring to the negative headlines that greeted his forays into the primary capital market in the early- 1980s.

Success on such a gigantic scale inevitable excites jealousy and enmity; and Ambani, today 58, has had to deal with his share. Reliance’s have been the subject of several exposes in the press. But these have neither fazed the tycoon extraordinaire, nor halted the inexorable progress of his march forward towards his goal of becoming the undisputed No.1 in the country.

To any sort of sniping in the press, Dhirbhai has responded with stoic silence. Rarely has he reacted to even the most stringent media criticism. In the last couple of years, though, he has taken a leaf out of industrialist-cum press baron Ramnath Goenka’s book. He has taken the precaution of shoring up his own strength in the media, not minding the expenditure of huge sums of money, and timing the launches of his products to a nicety.

In late-1989, he bought a small but well-respected weekly newspaper, ‘ The Sunday Observer’, that had a combined circulation of approximately 85,000 in the up market areas of Bombay and Delhi. He converted it into the ‘Observer group of publications’, and recruited some of the country’s top financial journalists to help run it.

Today, the Observer group brings out a political and financial daily in addition to the weekend paper. Notwithstanding excellent production values, the paper is a white elephant, has limited circulation and is understood be making huge losses. Started recently is an equally slickly produced video news magazine that is becoming increasingly popular.

These tools have helped Ambani counter the adverse publicity that his group has often faced in the past for the reluctance of its big bosses to grant interviews. Even to the most powerful of journalists in the country, Dhirubhai pleads his inability to grant taped interviews. He and his sons are wiling to meet the scribes on a personal level and give them any information they desire, but on condition that it is strictly off the record.

Whether he talks to the press about his group’s working or not is a matter of the utmost indifference to lakhs of Reliance shareholders, a high percentage of them ordinary middle-class people. They all unequivocally bless the moon-faced magnate for having handed them sizable fortunes in the share market in return for loyalty to Reliance.

Over the years, the company has rewarded its shareholders handsomely. Anyone who resisted the market’s skepticism when the firm went public in 1977, invested even a small amount in debentures and shares, and purchased all subsequent additional rights offerings, has seen his money multiply by leaps and bounds, to well over a hundred times the original investment.
Today, nearly three million people hold shares in Reliance Industries and its sister concerns. And these shareholders beget special treatment form Dhirubhai as his’ family’. He has gone to extraordinary lengths to give them a feeling of belonging. When he floated his last series of debentures, he set up a temporary force of delivery boys who handed over the certificates to each individual shareholder at his or her stated address.

In several ways, Dhirubhai is unique. He could hardly have started nearer the bottom then he did. “Please understand, to have success traditionally, you require education or money or family background; and I did not have any of these three, “he admits. “So people occasionally ask; ‘ Where did this upstart come form?’, and demand to see my credentials!”

Dhirajlal Hirachand Ambai ( ‘Dhirubhai’ is a nickname ) came from a tiny village that is not even a dot on the political map of Gujarat. But Chorwad, in Junagadh district, today remembers that its most famous scion born- was the progeny of a humble school teacher, and that he could not go in for higher education simply because there was no money in the family kitty.

Instead, at the age of 16, he shipped out for the Arabian peninsular city of Aden, where a village acquaintance had secured him a job working for A. Beesse & Co. , a French trading firm, as a clerk at a gas station. From that point onwards, his rise has been generally steady and occasionally meteoric.

The Jewish proprietor of the agency must have seen some exceptional qualities in the young man; and by the time he was 24, Ambani was already the general marketing manager for Burmah Shell products. Any middleclass Indian would have been euphoric to have achieved so much success at such a young age, and clung to the job like glue. Not Ambani. He wanted his own business, he wanted to put to work the precepts he had picked up on the job.

For a while, he worked in a totally unrelated business-representing people whose insurance claims had been rejected, and splitting any settlements he was able to negotiate. At the age of 25, he returned to India and set up a firm for exporting spices and other commodities to Aden. Reliance Commercial Corporation was put up at an outlay of Rs. 15,000. While the firm specialized in ginger, cardamom, turmeric and fabrics, it was not averse to taking on any other item.

Dhirubhai has never looked back. Most top Indian corporate bosses at the time were content to sit behind the walls of governmental protectionism on the imports front, and earnprofits from marketing frequently shoddy, high-priced products based on obsolete technology. In contrast, Ambani showed that he could combine the inborn shrewdness of the Gujarati businessman with an almost American style of entrepreneurial self-confidence and a Japanese willingness to invest in the latest technology.

For a long while, he indulged in buying and selling synthetic fibres and textiles. “He was a small-time, paan-chewing trader, with a persuasive manner and a razor-sharp brain for finance,” recalls Virenchee Sagar, former Managing Director of Nirlon Chemicals and Synthetic Fibres Limited. “In the early 1960s, he used to buy regularly from us; by the start of the 1980s, we were buying a lot of our own raw material from him!”

At first, Dhirubhai could not afford an office of his own, so he rented desk space for two hours a day. He, wife Kokilaben and four children (two sons, two daughters, in that order) lived in a cramped two-room flat in a crowded chawl in a Bombay slum, sharing communal lavatories.
“I remember, a children, my elder brother Mukesh and I had to share clothes, and our only playgrounds were the gullies in the area,” recalls 32 year old Anil, the younger of the Ambani, sons, who was in the limelight earlier this year because of his marriage to former film star Tina Munim.

Very early in his new venture, Dhirubhai picked up the art of profiting from the Byzantine system of controls that were guaranteed to choke the enthusiasm out of other entrepreneurs. He exported spices, and used replenishment licences to import rayon.

Later, when rayon began being manufactured in India, he exported rayon and imported nylon. Still later, he exported nylon and imported polyester. He was always a step ahead of the main competition, looking ahead and scoring bulls-eyes with most of the bold steps he took. With the imported items being heavily in demand, his profit margins were rarely under 300 per cent. (he admits to having made 700 per cent on one occasion!)

“There were occasions when we exported rayon at a loss, because the entire purpose was to get an import licence for nylon,” he explains. “In this country, it is considered fashionable to complain about government restrictions. We took the restrictions as an opportunity. If the rules against nylon imports had not been there, I could not have made the money!”

Reliance began manufacturing activities at Naroda in 1966, with for warp-knitting machines and a staff strength of 70. By the time he decided to make his maiden public offer of shares in 1977, he had already gained a good reputation as a manufacturer of quality fabrics.

That first issue of 28.20 lakh shares of Rs. 10 each was oversubscribed seven times, despite the financial press shooting down the offer in its issue reviews. Today, the company is a multi-division behemoth, employing more than 50,000 people at its major manufacturing centres in Naroda and Patalganga, and using machinery that is among the most advanced in the world.
In his early days, Dhirubhai found the domestic cloth market controlled by wholesalers who preferred to deal with established companies. So he decided to set up his own chain of retailing stores throughout India, using the franchising technique. Today, Vimal textiles are sold through thousands of retail outlets, and easily from the industry’s best-selling brand.

Once the rupees and dollars both began flowing in, Dhirubhai decided that his sons would have the best education that money could buy. Elder son Mukesh, who showed a technical bent of mind, did chemical engineering, subsequently went to Standford and obtained an M.B.A. Anil, the younger of the boys by three years, specialized in chemistry and then went to Wharton to secure his master’s degree in business administration.

The experience of putting up projects in the shortest possible time so as to avoid cost and time over-runs served Mukesh in good stead when Dhirubhai purchased the latest polyster filament yarn technology from DuPont, and decided to set up a 10,000 tonnes per annum plant at a 300-acre site in Patalganga, about 65 kilometres from Bombay. DuPont would have taken two years to raise such a complex, but Mukesh, working with a small project team, completed the job in an incredible 18 months.

Going still further upstream, Reliance put up plants to manufacture purified terephthalic acid (PTA) and monoethylene glycol (MEG), both essential raw materials in the manufacture of polyster yarn. “Some time in the future,” boasts Anil the more voluble of the two sons, “We hope to integrate all the way back to natural gas!”

Dhirubhai’s ability to have finger on the political pulse of the country has quite obviously helped him slice through most of the bureaucratic red tape that has often tied Indian businessmen up in knots. Since it went public in 1977, Reliance has repeatedly infuriated competitors and customers alike by acquiring manufacturing licences to produce not only synthetic yarn and fibre, but also more and more of the raw materials used in making these products.

Other manufacturers consistently failed to get these coveted licences. In 1981, more than 400 companies applied for a licence to produce polyster filament yarn; 43 made the waiting list, but only two companies were granted the requisite permission. Reliance got a licence for 10,000 tonnes per annum while the only other licence granted was to Orkay Mills for 6,000 tpa.
Since it went public in 1977, Reliance has set several corporate records. One of these is for the growth in its assets; these have bloated by a factor of 33 times of currently top the Rs. 2,000 crores mark. No other company has grown so much, so fast.

Another record is for subscription from the investing public in a single issue. In 1985, Reliance notched the record of collecting Rs. 400 crores from an estimated 1.5 million investors through the issue of nonconvertible debentures.

That was one of its best years- a year that saw a mammoth, record crowd of over 12,000 attend its Annual General Meeting held inside a shamiana set up on the cooperage football ground, in a carnival-like atmosphere, where food packets were distributed to attending shareholders.
Subsequently, the subsecription record was broken by Larsen and Toubro, which collected well over its equity offer of Rs. 820 crores in 1989. That happened when Dhirubhai was elected chairman of the highly respected engineering colossus, and put his weight behind the media blitz that accompanied the announcement of the offer.

One of the boasts of Reliance Industries is that the level of integration it has achieved in the manufacturing process in unmatched anywhere in the world. Raw naphtha, a product refined from oil, is used to produce paraxylene, which in turn in used to produce PTA to make polyster filament yarn and staple fibre. Not only does the company use this to make fabrics which are marketed through 1,500 franchised retail outlets all over the country, but it also supplies PTA to leading textile mills throughout India.

While its manufacturing activities have made Reliance pre-eminent in its field, it is in the realm of high finance that its chief has been proven to be a forerunner. A sort of innate financial legerdemain enabled this human dynamo to manoeuvre his finances. Its innovative financial schemes gave a big boost to the capital market.

Dhibubhai turned the non-convertible debenture (NCD)-which is actually little better than a fixed deposit placed with a company-into an amazing financial tool. By announcing that these NCDs would be converted into equity shares at a premium, Dhirubhai not only sent his investors into ecstasies, but his firm also benefited hugely from the hefty premiums charged.

Legislation was finally moved in June 1989 to prevent the company from converting its fifth and sixth (the ‘E’ and ‘F’ series) issues of debentures into equity. But by then, Reliance had already made a fortune which it has wisely invested in both men and machines.

Dhirubhai, one could say, has virtually the Midas touch when it comes to making money. Even in a sports sponsorship deal, where a company usually only gains unquantifiable publicity, Reliance made a quantifiable cash profit. In 1987, the company sponsored the World Cup limited overs cricket competition; and thanks to some savvy marketing techniques, not only got free worldwide publicity, but also made a profit in the manner made famous by the organizers of the 1984 Los Angeles Olympics.

Apart from began a financial wizard, Dhirubhai is a truly magnificent organizer, and has been able to give his employees the impression that they can unequivocally count on him in times of distress. For example, when an unexpected flood hit the industrial township of Patalganga, and washed out three entire villages on ‘Black Monday’, 24th July 1989, the human factor in the Reliance complex there was the least badly affected, through the factory itself was totally submerged.

More than twenty inches of rain fell in just eight hours in an area that had no flood history in the previous 80 years. The downpour was accompanied by winds rising to more than 80 kilometres per hour. Out of 384 people dead and 264 missing, not a single person was a Reliance employee. As many as 1,500 families were rendered homeless, and 1,15,000 people rendered destitute, but none of these were Reliance personnel.

In space of 72 hours, Reliance bosses had mobilized more than 6,000 personnel from India and and abroad to salvage the complex in which the company had invested more than Rs. 1,500 crores. Accommodation for affected employees was organized overnight. In spite of an ongoing transport strike, trucks and tempos were commissioned to remove 6,000 tonnes of debris within three days. The firs two plants of the complex were restarted in just 14 days from the date of the disaster, and the entire complex was back on stream in a record time of 21 days.
Why do the investors in his companies respond so wholeheartedly to Dhirubhai Ambani? One of the reason is that, all through his career, he ahs employed one principle that he picked up at A. Beesse in Adenlibreally rewarding those who have come to his assistance in times of need. Enormously large-hearted with those he considers his benefactors during his days of struggle, he has been known to dole out massive sums of money across the table without expectation of its being return.

At the same time, he is known to be ruthless towards his competitors. He has an elephant’s memory that easily identifies those who have crossed his path in the past.

The strain of ceaselessly fighting corporate and political wars has inevitably told on Ambani, and his health hit a downward curve after 1986. That year, he had a stroke that left one side of his body partially paralysed. The news of his indisposition spread like wildfire in the stock market, and the Reliance share fells like a stone in only a couple of hours’ trading. For a long time, he did not make any public appearances, and the counter continued to languish in the doldrums. The day he first appeared in public, the scrip made a smart recovery.

Though not as physically hardy as before, Dhirubhai has not let the permanent handicap of the paralytic stroke blunt the edge of his razor-sharp brain. It is still from his fourth floor office in Maker tower IV at Nariman point that all major policy decisions which affect the future of the Reliance group are taken. The routine running of the organization is left to Mukesh and Anil, who nevertheless consult him in all key matters.

There are some opinion-makers, like well-known newspaper editor Vinod Mehta, who have referred in print to Dhirubhai Ambani as ‘the embodiment of evil; However, to the Gujarati business community, he has assumed the status of demi-god. To al aspiring small-time entrepreneurs, he has become a sort of benchmark they aim at. And so, with each succeeding day, the legend to Dhirubhai Ambani continues to gather spice.

SOME FAMOUS QUOTES OF DHIRUBHAI:

1.Growth has no limit at Reliance. I keep revising my vision. Only when you dream it you can do it.
2.Think big, think fast, think ahead. Ideas are no one’s monopoly.
3.Our dreams have to be bigger. Our ambitions higher. Our commitment deeper. And our efforts greater. This is my dream for Reliance and for India.
4.You do not require an invitation to make profits.
5.If you work with determination and with perfection, success will follow.
6.Pursue your goals even in the face of difficulties, and convert adversities into opportunities.
7.Give the youth a proper environment. Motivate them. Extend them the support they need. Each one of them has infinite source of energy. They will deliver.
8.Between my past, the present and the future, there is one common factor: Relationship and Trust. This is the foundation of our growth.
9.We bet on people.
10.Meeting the deadlines is not good enough, beating the deadlines is my expectation.
11.Don’t give up, courage is my conviction.

Well, in my opinion all of them stand true in evry sort of business as for me Business is MONEY and after all, you don’t do business for yourself only but for your family, for your friends and well-wishers, for your investers and share-holders and lakhs of employees whom you employ and finally to the society and ultimately, the country both at good and bad times. Here by good I mean like when the market is good, you contribute to the economy and people and by bad I mean during events as those of natural calamities.

Before ending I would like to end up with some of the Dialogues of the movie which I liked personally:

1. If I can do good work for a foreigner and a foreign company, then why I can;t do the same for myself.
2. Lets see a Dream and LIVE for it.
3. When people start critcizing you, you should know that you are on the right path and you are developing.
4. A DREAM when turned into REALITY, see the next DREAM much bigger.
5. Everything is fair if you are trying to get your DREAMS and believe them to be right.
6. The more you try to stop me by putting hurdles on my way, the more faster I will run.

Look the last statement carefully, it has much to say than bein a mere quote from a movie.

An Interaction of Nandan Nilekani with Indira Nooyi…

Today when I was going through the Economic Times; I happened to read the interview of Indira Nooyi, The Chairperson and CEO of PepsiCo by Nanadan Nilekani. I am always fascinated by Business and Money and people like Indira Nooyi really inspires people escpecially thos like me, as I feel. So, go through this fantastic and inspirational interview:

Uncorking the defining corporation of 21st century
THAT IT’S DIFFICULT TO READ A WOMAN’S MIND DIDN’T DAUNT THE FORBES BUSINESSMAN OF THE YEAR. HE GOT THE BEST BYTES FROM THE WORLD’S FOURTH MOST-POWERFUL WOMAN
Nandan Nilekani learns a thing or two from Indra Nooyi.Like,for instance,the fact that it is easier to sell or kill a business than grow it.In a tete-a-tete with Nooyi, Nadan perceives the PepsiCo story since Nooyi.Read On…
NILEKANI: So, you actually went around to your restaurants…
NOOYI: Absolutely. Not just our restaurants, but competitors’ restaurants as well. We just hopped on a plane, went to towns, morning till evening checked restaurants — front of the house, back of the house, and what did other people say…. everything.

NILEKANI: Speed, quality, hygiene…
NOOYI: Exactly. And competition. We tried to understand the economics of the restaurant business — what has happened to the restaurant business is that the profitability has fallen the way it has; worse than what it was in the late 80s when it was such a high flyer. Then we tried to understand the saturation of restaurants. We tried to understand what has changed in this business between 1987-88-89 and till 1994, that all of a sudden traffic is down, profitability is down. Is it the whole industry profit fall or is it the way we run the restaurants? Doing this sort of a bottom-up analysis, with no biases, yielded some fascinating results. This to me is perhaps the best piece of work we did in a long time, because what it showed was the industry has saturated and too many quick service restaurants had been built, because if you didn’t build the next quick service restaurant, somebody else built it.

NILEKANI: So it was a race to the bottom.
NOOYI: It was a prisoner’s dilemma. If you built it, you cannibalize your own concept, but if you didn’t build it, somebody else is going to cannibalize that concept.

NILEKANI: Damned if you do, damned if you don’t.
NOOYI: So you were in this terrible, vicious cycle. On top of that, once you put the asset on the ground, you have to utilise it to the max and if you look at Pizza Hut, it only had lunch and dinner and didn’t have a breakfast. And if you look at KFC…

NILEKANI: You didn’t cater to a 24-hour meal cycle.
NOOYI: I mean, to maximise the output of that restaurant asset, we need to (do that). The first thing is real estate, which is the key driver of the restaurant’s performance, was getting scarcer and scarcer.

NILEKANI: Did you own the real estate or lease it out?
NOOYI: In most cases, we owned the real estate when we owned the restaurants.

NILEKANI: So you had all that capital on your balance sheet.
NOOYI: Oh absolutely. But we had actually many, many tens of thousands of restaurants. We didn’t own all of them. We owned about, at that time, 50- 60%. So, the first thing we said was, let’s take our restaurants and refranchise them. Because, if you walk into Pizza Hut and you don’t like the interaction, you do not come back. So, the quality of the labour became critical. We are not a big labour management company, and based on our calculations, PepsiCo would have needed half a million people just in the restaurant business.

NILEKANI: Jesus!
NOOYI: If you think about shifts, (there were) three shifts. And multiply this by tens of thousands (of people). And the attrition rate!

NILEKANI: Attrition rate is pretty high in this business.
NOOYI: Yes, and you know all about attrition (laughs).

NILEKANI: Yeah (laughs). It’s more in the restaurant business.
NOOYI: It’s terrible. It is very hard to get good people and by the time you do the background check on them and get them in, it is just impossible. So, we looked at this and said, my God, this is not the PepsiCo kind of business at all.

NILEKANI: That’s right.
NOOYI: And those who love the restaurant business have restaurant in their blood, want to have a steady labour pool — they’re the people that should own the restaurant.

NILEKANI: It is a classic franchisee business.
NOOYI: It is. So we started to refranchise huge chunks of the business.

NILEKANI: You started selling off to the franchisees.
NOOYI: Independent people, either existing franchisees or new people. That is the first step we did in 1995-96. In 1996, we said that refranchising is good, but does this business really belong to us? What would happen is, we would bring high-flying MBAs into the company and rotate them through senior jobs very quickly. What we realised was for them to grow in PepsiCo, you have to put them in the restaurant business. But when you put them in as a District Manager-Restaurants, they knew nothing about restaurants. You really needed a restaurant person to run restaurants.What we were doing was, in fact, burdening the restaurant business with the packaged foods culture. So, we realised what we had to do, at that point, was to untether the restaurant business from the packaged foods business. So, we really unburdened the restaurant business rather than unburden PepsiCo because we were destroying the restaurant business by meshing it within the packaged foods culture.

NILEKANI: So, you demerged the restaurants business.
NOOYI: Absolutely. We spun it off to its shareholders and it started doing exceedingly well. You know, I was at YUM! Restaurants two weeks ago before I came here, and just the whole culture of the place is different — the way they talk, the way they act, the way they care for their customer. It is not that we don’t care for customers, they deal with this at a very different level and there has been a huge success doing so. So that was the first one. And we reduced revenues by $10 billion.

NILEKANI: What was the revenue at that time?
NOOYI: $31 billion.

NILEKANI: Right now you are 33 or something, but a different 33.
NOOYI: Exactly. Much more profitable 33 and more cash. So in Step One, we dropped $10 billion. It was a very painful decision, but we did that.

NILEKANI: It was a bold thing, because it is easy for us to think of just building larger and larger companies, but not really analyse the way you did it.
NOOYI: And getting rid of friends, because everybody in the restaurant business grew up in PepsiCo. We grew that business. Wayne Calloway loved the business. John Kendall loved the restaurant business. So it was the most painful decision we made.

NILEKANI: So your coming from outside with no history, no legacy and the sharp and analytic approach had something to do with it. Did that make a difference to you in convincing everybody?
NOOYI: Absolutely, we had no vested emotion in that business. And, we started up saying it is easier to sell a business or kill it than it is to grow a business, so let’s try our best to grow what we have got. Because very few people have businesses they can grow. We had terrific brands, so we started off by saying we really want to grow this business, not spin it off.

NILEKANI: And so one-third of your business goes away, and from 30 billion you go to 20 billion.
NOOYI: And then right after that we bought Tropicana. And Tropicana was a very important acquisition because up to that time, PepsiCo’s brands in the beverage sector only became relevant after 10 o’clock in the morning. So from about 5 am to 10 o’clock…

NILEKANI: But I have a few friends who drink Diet Pepsi at breakfast (laughs).
NOOYI: But you know, I cannot grow a business based on your few friends drinking Diet Pepsi. So from 5 am to 10 am, our brands were almost not relevant. We thought that as a very important part of the day that we had to capture. We could have built a brand ourselves, but the point is when you have a brand like Tropicana, which was good for breakfast and good for you, we decided to buy it.

NILEKANI: So it was a part of Beatrice at that time or…
NOOYI: It was a part of Seagram.

NILEKANI: Seagram, and it was in the market?
NOOYI: Yes, they were following two tracks, IPO or sale. So we bid (for the company) and bought it in 1997. When we were buying Tropicana, the Cola-Cola Company’s stock price was almost $80 and much more than twice our stock price. They were the darling. So, we went to school on the Cola-Cola Company, trying to find out what they do right, what they don’t do right; what works, what doesn’t. One of the things we found out was the fact that they had spun off the bottling operation. This gave them a couple of advantages. One is bottling was a very labour intensive business again and it required maniacal focus on day-to-day operations. While the franchise company had to focus on the brands, it needed big investment, unlike Frito Lay. One could argue, after all, that the old Frito Lay is an operating entity. Why do you think about this business differently? Unlike Frito Lay, where distribution is everything, in the beverage business (both) a franchise company and the distribution company are important. So, it is critical for us that we look at these as two entities. We realised our strength is in franchise business. But you need a very operative culture to run a distribution business, which is precisely why Coke spun off its bottling units.

NILEKANI: It is also a kind of capital issue. Because, in a brand business, if you remove an asset-heavy stuff, you get much better PEs and so forth.
NOOYI: No question about it, and another arbitrage that was going on at that time was that the bottling companies were trading on EBITDA basis and we were on the PE, earnings basis. Clearly, there was a problem because in the case of the other company, they had spun off. And we were trading differently. So as I said, it was a follow strategy, and it was not a leading strategy.

NILEKANI: You did it almost 10 years later.
NOOYI: Right. But the only advantage we had was, we looked at everything they did wrong and we fixed it.

NILEKANI: Okay.
NOOYI: So we went to school on everything they did and anything they did wrong, we fixed in our business. When we spun off, we did an IPO of the bottling business, we didn’t spin it off. We did 60% IPO in ’99. So, just as we finished that in 1999, we started discussions on the Quaker Oats.

NILEKANI: When you spun it off, you kept 40%, so there was no consolidation.
NOOYI: No, not at 40%.

NILEKANI: How much revenue got lopped off ?
NOOYI: $7 billion.

NILEKANI: Oh God, so out of 30 billion, you knocked off 10 billion on the restaurant and took another 7 billion out.
NOOYI: Now, I had Tropicana.

NILEKANI: Yeah, from what you had in the original company, you went from 30 to 13 with these and you also brought in Tropicana.
NOOYI: Brought in Tropicana, and immediately we brought in Quaker Oats.

NILEKANI: So what was the revenue contribution of Tropicana?
NOOYI: Tropicana brought in a little over $3 billion. And then Quaker Oats brought in $7 billion.

NILEKANI: Fantastic.
NOOYI: I think it was an incredible financial transformation, because return on invested capital went from 15% to 25%. Cash flow on $30 billion of revenue was like a billion something; and on $20 billion of revenue — $ 10 billon less — it was over $3 billion.

NILEKANI: And you did that financial thinking?
NOOYI: It was the leadership of the company that did it together. This was not an individual activity at all. Then we bought the Quaker Oats Company for a couple of reasons, which is very critical. One, for the Gatorade business. It was an area that we were not very successful in, the isotonic business, and Gatorade had an 80% share of the isotonic business.

NILEKANI: 80%?
NOOYI: So we felt that was a very critical acquisition to make. They created the isotonic category. But the other reason we bought Quaker Oats, which very few people really understand, is because it was again similar to the Tropicana acquisition. If you look at Frito Lay, if you want to make a healthy product, you could not use any other Frito products, brands. To call them Frito bar or the Lays bar or Ruffles bar, and expect to use it for breakfast would be crazy.

NILEKANI: Yeah, Yeah. You didn’t have the right association.
NOOYI: Right. We needed another brand. So we knew we needed a nutrition-credential backed brand to launch a whole range of good food products. So the brand Quaker, when we did all our brand studies, was clearly on the top.

NILEKANI: Because of oats.
NOOYI: Exactly, cholesterol reduction. And you know the image of Larry in Quaker Oats, people loved it.

NILEKANI: It is very famous… Yeah.
NOOYI: When we looked at all this in Quaker Oats, the brand Quaker was as exciting to us as was Gatorade. So the combination of the two sets had this as a win-win situation.

NILEKANI: But wasn’t that company also in play?
NOOYI: Well, when we first started talking to them, they really were not in play. But then, by prudent shareholder actions, Quaker Oats had to pull itself from the block, because you cannot just talk to us and expect to get a deal done. Then eventually all the complications followed, with Coke coming in and then Danone coming in; and Danone walking away and Coke walking away.

NILEKANI: But net-net you bought it.
NOOYI: We announced in 2000. 2001, we closed it. And the rest is history, as they would say.

NILEKANI: We have been talking about this ‘good for you’, ‘better for you’… So when did that seep into the whole strategic thinking?
NOOYI: It actually started in 1996. It was the first time we started talking about it.

NILEKANI :D id you anticipate it? Because you know today, certainly in the Western society, the focus on wellness, obesity, lifestyle-related things is much more than it was I would say in the 1990s.
NOOYI: PepsiCo anticipated it in 1990, when we moved to classified beverages as liquid refreshing beverages as opposed to carbonated soft drinks. That is when we moved into partnership with Lipton for Tea, with Starbucks for Cappuccino, we started moving into juices ourselves. So, we started really making the move in 1990, and along with the acquisition of Tropicana and then Gatorade, we really cemented our move in to non-carbonated beverages and today we have the Number One brand literally in every aspect of non-carbonated beverages. The real thinking on health and wellness started in 1996, 1997, but then Steve Reinemund accelerated it when he took over and now, you know, it’s squarely in focus.

NILEKANI: Absolutely. You are talking of wellness and better-for-you being more than half the business, or as a goal.
NOOYI: Not as the business, as a goal. Would like it to be 50:50. The problem is that, ‘fun for you’ today has globally 70% of the business, and that is growing.

NILEKANI: Alright.
NOOYI: So as long as that keeps growing, you will never be able to catch up easily unless you do something big.

NILEKANI:It certainly is not all that profitable to just make it big.
NOOYI: That is right. In any case, the consumer is saying don’t tell us what to eat, let us decide what to eat. That means, we have to be careful.

NILEKANI: But you are on that side by the fact that in your snacks, for example in India, you have eliminated trans fats, you’re reducing salt, reducing those kind of things. Are you making efforts even on the ‘fun for you’?
NOOYI: It’s improved, ‘fun for you’. We can improve ‘fun for you’, but then, I think there is always a place for those products. Look at what I ate since I came here and look at my products. I think one gulab jamun has got six Pepsis in it. It is okay that I consume huge quantities of that. So I think it (Pepsi) has its place in the Indian diet. The question is: how do you make sure you eat it all in one way? And even in Quaker, we have a whole range of Quaker snacks — Quaker bars, Quaker Oatmeal and cookies. We have a fantastic pipeline of products.

NILEKANI:When you came in here you were talking about performance with a purpose, so with this term, what did you have in mind?
NOOYI: I think PepsiCo has this unique opportunity to be what I would call the defining corporation of the 21st century. Let me speak of that. When Roger Enrico took over in 1996-1997, we all sat down and we said what is it going to take to make PepsiCo a defining corporation in the 21st century. What do we mean by that?

NILEKANI: That is an ambitious goal…
NOOYI: Absolutely. So, let’s talk about what we mean by defining corporation and let us talk about what we can do. We started off saying when people talk about the last two decades of the 20th century and talk about the great companies, they talk about IBM, Johnson & Johnson and GE and, you know, names like Microsoft immediately come to mind. And last few years of the 20th century, the Infosys of the world come to my mind.

NILEKANI: Oh, thank you.
NOOYI: Clearly, there is no question about it. You are one of the defining companies in the world. But I think, in the first part of the 21st century, and I say first part because I don’t want to say 21st century… that is a 100 years, who knows who is going to be around or what the world is going to look like… So the first two or three decades of the 21st century, there is a unique opportunity for PepsiCo to be among the defining corporations — not “the” but “among the”…

NILEKANI: What is the strategic asset that you have ?
NOOYI: Because we are going to deliver performance with purpose, and I am going to talk about that in just a second. What do we mean by delivering performance with purpose? Clearly, delivering performance is….

NILEKANI: It is non-negotiable.
NOOYI: Yeah, we want to deliver, for the food and beverage business, industry-leading financial performance. No question about it. Let’s talk about purpose. As I said in my speech in Delhi, out of 100 most powerful economic entities, one-third of them are companies.

NILEKANI: The 100?
NOOYI: The largest economic entities in the world. Two thirds are countries, one third are big companies.

NILEKANI: Some of the companies are bigger than the countries.
NOOYI: Exactly, you know the size of big multinationals. I mean I look at our company with a market capital of $100 billion, that is pretty significant. So we have a profound influence in society — we shape lifestyles, we shape behaviors, the interactive community. And this is not new. This is what PepsiCo has been doing for the past few years. I think, I am just putting some more shape and direction to it. The purpose part comes on three layers. The first is human sustainability. I feel we have to focus on ensuring people live healthy and live longer. So, before making sure the portfolio has health and wellness products and ‘fun for you’, I want to accelerate the move to a balanced portfolio globally. The second part is environmental sustainability. Clearly, we want to make the world a better place for our children. So, worrying about the water use, energy use and recyclability, all of that stuff. Again you have to balance very carefully with the profit part of it, and talking about sustainability. And the third part is, for our employees and people sustainability. It is making sure that PepsiCo is the most diverse and the most inclusive place for all people — women, minorities, irrespective of your ethnic background or nationalities. We want to make PepsiCo the place where the best people want to come and work in. So, clearly, I think if PepsiCo could take the leadership on these three purpose-driven activities, we could be among the defining corporations because we would have a clear plan for each one, but we are not going to give up on performance.

NILEKANI:Okay. One of the things we very clearly found at Infosys is that if your employees feel that you have a purpose which is just larger, performance is not a question. But if they feel that your purpose is to change the world in some way, I find that the emotional fuel of that is much more than just a job.
NOOYI: Yeah, that is very true.

NILEKANI: It’s a commitment.
NOOYI: Yeah, today’s is a war for talent. People don’t come into the company and stay for reasons other than compensation. Compensation part becomes the great leveller. I think if that people do not want to come in and stay because they love coming to work every day, I don’t think you can hold on to that business.

NILEKANI:Let’s talk about India now. How important is India for you — I mean as a market and in whatever way you connect with this place?
NOOYI: The emerging markets are very important to us. The traditional Brazil, Russia India and China are very, very important to us. India is important to us, not just in terms of profit generation, returns, or growth, we say India is a long term investment market. India is important to us in a couple of key ways. One, it’s a long-term investment market and we would like to participate in growth. We would like to bring all of PepsiCo’s products into India and the company will perform with purpose in India.

NILEKANI: Do you have all your products right here in India today?
NOOYI: Not all of them at all now. Not even a fraction of them.

NILEKANI: So just getting in the entire product line itself is a huge opportunity.
NOOYI: It is a huge opportunity. That is the first one. The second is the India management team is really the feeder group for global management. We have got 40 Indian executives who are in PepsiCo senior jobs.

NILEKANI: Would be top 400 or something like that.
NOOYI: In the top 400. We really got great Indian executives who are feeding the company.

NILEKANI: It is also feeder group of human capital.
NOOYI: Absolutely. I mean, just look at Asia Pacific, that is China, Vietnam or Thailand, you name it. We have got greatest Indian executives who are running key parts of our company. The third way that India is very interesting is that India has a way of triggering on how to do things at a low cost for you. And the ingenuinity of Indian people is something that you cannot find elsewhere in the world. So, India is an exciting market for us.

NILEKANI: Have you had any product or business innovation that you exported from here into the Pepsi system?
NOOYI: The Kurkure… It has gone obviously to places like Pakistan and exported to several countries. I understand now the US is looking at bringing in Kurkure and, again, it may not go with the same spicy flavor, but the substrate with that crisp bite with little bit different flavors could find its way into the US markets soon. So we are working through all of these things and it’s a great feeder group for all that technology innovation.

NILEKANI: Now the other thing is, of course, we can’t have this conversation without talking about this pesticide issue. You have taken some moves there in terms of actually working with your competitors in bringing some new ways of approaching it. Can we talk about that?
NOOYI: Our products are the safest in the world. I think, if I sit back and look at what’s happened in India, I think the NGO really wanted to highlight the issue of food safety standards for India. I think that whole controversy started with milk. The fact of the matter is we were caught in cross lines. When you are testing a very complex finished beverage with a testing method, which is really not geared towards testing these sorts of products, we many times get false positive results. We did get some positive results at very, very low possibility. Now, that’s as far as this controversy. Now, the government has since tested many, many samples of Coke and Pepsi. We have tested our own samples of Pepsi from around the world and I can tell you, we have no pesticides in our products because we test every input, where there are reliable tests for inputs, which are simple. Having said that, try explaining false positive results to public! The fact of matter is public has been told that there are some low level of pesticides probably in soft drinks. Nobody focuses on the low level, they focus on pesticides in the soft drinks. Our brand is under attack. We have to do something about it.

NILEKANI: You are a consumer brand. And your brands are under attack. Whatever be the background of that, you have to…
NOOYI: That is right. First, we have to find the testing methodology, which does not exist in the world because nobody tests that level. We are talking about one drop of pesticide in the Olympic-sized swimming pool of water, that is what we are talking about, right. Let’s be honest about what we are talking about. So, we have to find first a testing protocol to test at that level. It has taken us three years. We think we have a method, but the problem is the testing methods to test at that level are very expensive. What is the point of having a testing method when you can’t test all the samples on a repetitive basis.

NILEKANI:But the risk you have as a strong, global brand, is that if somebody wants to make a larger point, it is easy to take you as a case and put it across. So do you think it’s that or something else?
NOOYI: It’s inevitable and it is a part of business. I think, by and large, NGOs tend to be… They don’t want to sully their names either. So I think we have to ascribe positive intent to most of the NGOs.

NILEKANI: Have you met Sunita Narain?
NOOYI: Not yet, but I would love to meet her.

NILEKANI: Great, then I think the next interview, we should…
NOOYI: No, I would love to meet her. I really would like to meet her, because I am sure that what she is doing is labour of love for the county and I have nothing against Sunita Narain. I will be honest with you. I have heard wonderful things about her.

NILEKANI: But I think you are sitting on the verge of really making a huge contribution to Pepsi and I guess that is the excitement you have.
NOOYI: Absolutely. I love this company. We have an outstanding group of people at Pepsi. The thing I like about PepsiCo is the team that has been built, the culture that exists, a sort of ownership culture. It is extraordinary. I think that’s what makes the difference.

NILEKANI: I think this redefining the corporate for 21st Century, that’s an ambitious and audacious enough goal which can drive people to aspire to the next level.
NOOYI: And it is attainable. That is more interesting.

NILEKANI: If I were to set people audacious goals, it energizes them because its all about human energy, its all about emotional capital at the end of the day. If you can get that out, then you are home.
NOOYI: Absolutely right and you know, I always tell my people that. What I never want to do is if they get a competing offer from some other company, to match it and then hold on to them. At that point, I have lost their hearts. When a head hunter calls, I don’t want to take the call. I want to say, I love this company so much that I won’t take the call. That’s what we need to do. Because ultimately it is the people that are going to make or break the company, it is not the assets, it is not the brand.

NILEKANI: Your mother seems to have been a huge influence on you, right from the days she prompted you to get 100% marks in Maths and all that…
NOOYI: That is typical southern Brahmin stuff. So there is nothing unique about that. I think that she was genetically programmed for that. The entire family focused on grades. When parents got together they only compared the report cards of their kids. Anybody who got together would say, ‘so how is your child doing’, ‘what rank’. That was growing up in 50s and 60s. The real issue is, my father travelled a lot and my mother was back at home.

NILEKANI: He was in the bank, the State Bank.
NOOYI: Yes. My mother was the constant force and I think she always wished she were the prime minister of this country.

NILEKANI: Really?
NOOYI: Oh, she is that. She is a real gogetter.

NILEKANI: So, did she pass on her ambition to both of you?
NOOYI: Absolutely, no question about that. She was an interesting study in contrasts. She passed on her ambition and she always said to us ‘I want to get you married when you are 18, and make sure you aspire to be the prime minister.

NILEKANI: Do both. Satisfy this. Satisfy that.
NOOYI: We never figured out where she came from. But deep down inside, I think my father, my grandfather, all said, ‘Our grand-daughters are going to be whatever they want to be’. So, my mother really did not have this get-them-married-by-18 option, although she kept on threatening us with that.

NILEKANI: When you finished at IIMCal, and you went to Yale. Then she didn’t try to get you married.
NOOYI: She threatened that all kinds of things will happen. But at the end of the day, you know, deep down inside I think she said, ‘this is what I really like to do. But that is really what they want to do. And let me not stop them’… My mother says that everything else is what you acquired or what you got is because I pray for four to five hours a day. She says, ‘what did you accomplish? You sit in a meeting on a chair all the time, and I pray for 4-5 hours.

NILEKANI: She takes the full credit for it.
NOOYI: And you know, it is a dream at this point. Sometimes I pinch myself. So this must have been forces other than just me…

NILEKANI: Also, the other thing is that you have been willing to, in the sense, wear your Indianness on your sleeve, whether it is wearing a saree at work or whether it is
NOOYI: Let me correct that, I don’t wear a saree

NILEKANI: No. I mean you are willing to wear it to events. There was a time when the Indians abroad were sort of hiding their Indianess to integrate better with that. Did you find that kind of a challenge anytime?
NOOYI: No.

NILEKANI: You were just what you were.
NOOYI: You know, lots are written about how she shows up at board meetings in the saree. My God, I have never worn a saree to board meetings, people play it out in different ways. I think I have never shied away from the fact that I am an Indian and I don’t intend to, but you can be at home with both cultures.

NILEKANI: You have done an incredible job managing the family, home, children, office. What are the tips for the rest of the normal mortals like us?
NOOYI: First, I wouldn’t say incredible job. We all try to do a job. As I have said before, Nandan, first of all, family has to support you. But more importantly, you have to pick the right husband, in your case, wife. I picked the right husband. Raj is a great guy and he has been a great support and I do not know where I would have been without him. I would say that without a doubt. He has been more than a husband. He has been a sounding board or friend. You know, people like us get very lonely, because you cannot share too much with other people. So you come home and he is there and you can discuss anything with him and he gives you sound advice.

NILEKANI: How do you manage time. I want to learn. You do not sleep I guess. How many hours you sleep?
NOOYI: Four hours.

NILEKANI: Four hours? Oh God.
NOOYI: Yeah. I feel if I slept six, I am a basket case. So four is a pretty good number. But the first thing is, I think, Nandan, and you do it better than anybody else. To be a CEO is a calling. You should not do it because it is a job. It is a calling and you have got to be involved in it with your head, heart and hands. Your heart has got to be in the job, you got to love what you do, it consumes you.

NILEKANI: So, everything has been thought through.
NOOYI: If you have to do something on the spur of the moment, everybody helps you out to do things, but that is only on an emergency. You can’t evoke the spur of the moment on a regular basis, then it is not a spur of the moment anymore, it is running from pillar to post. So, it is difficult. Trust me, I haven’t done everything right.

NILEKANI: Great. Thank you so much.
NOOYI: Thank you.

NILEKANI: I think you will do a great job.
NOOYI: Congratulations to you for being named in Forbes as Businessman of the Year. My goodness, I am privileged to be sitting here with you.

Courtesy: The Economic Times; 07 February, 2007

Ethics and Values as Corporate Strategy

Recently, when I came across an artice that spoke about the Startegy and Ethics at rediff.com. I thought I should share it with you all also. The article was actually the speech of N R Narayana Murthy, chief mentor, Infosys Technologies, at the Governance Series session on ‘Ethics and Values as Corporate Strategy’, organised by the Confederation of Indian Industry in New Delhi, January 17.

Strategy is all about differentiating yourself in the marketplace to maximise your margins. Differentiation could come through products and services. But your stakeholders must feel you are more and more valuable to them, compared to competitors.

Stakeholders would mean society, customers, employees, government, investors; each must say this company is adding more value to me than any other.

What are ethics and values? They transcend the legal framework and as a society evolves, what is in the realm of ethics and values moves into legality. In India, before Sebi in 1990, a lot of good practices were part of ethics and values.

Today, it is all part of legality. Similarly, in the US, a lot of practices were part of ethics and values before the Blue Ribbon Committee report. My friend John Hunstman, in his book, says that successful people never cheat. That good people never cheat.

Ethics and values can be defined as anything that stands the test of golden behaviour. That is the rule, that you must do unto others what you would like to be done unto you. I define ethics and values in a more elaborate manner.

Ethics and values form the protocol for conduct and behaviour in a community for each of its members. So that enhances the confidence, the enthusiasm, the energy, the joy of everyone else in the community. If I conduct myself as per that protocol of behaviour, it enhances the confidence, the enthusiasm, the energy and joy of everyone else in the company.

As I said earlier, if you want to become unique in the marketplace, then you want all to work hard. If you want 67,500 people in Infosys to agree voluntarily to commit to hard work, then they have to trust the leader.

A leader has to have followers to be a leader. That is why I stood by my controversial decision on CEO’s salaries being linked to company’s earnings. If you want to enhance the trust of employees in the leader, then the leadership of the company has to conduct itself in a manner that enhances trust.

Also, the CEO or the leader must definitely reap benefits proportionate to the benefits derived by the company.

Never before in the history of business community in the world did we have a situation where trust of man and woman in the street is lowest in business leaders. According to a US survey, corporate leaders are least trusted, as many of them violated codes of ethics and even laws.

On the Indian side, if you have analysed how salaries of CEOs have increased in 15 years, they have gone up from Rs 7,000 and Rs 10,000 to Rs 70 lakh (Rs 7 million) on an average. I am one of those who fought for this. When on board of a company, I saw to it that the CEO had a variable linked to output.

Indeed, salaries of the lowest paid persons have not correspondingly gone up. I won’t get into a debate whether this is right or wrong.

But after getting the government to agree to limit on salaries, it is incumbent on our part to live up to expectations and conduct ourselves in a manner that enhances trust of all stakeholders, particularly the government and the society.

The fact that we opened borders in 1991 and welcomed MNCs to operate, has had a tremendous positive impact on value delivered to consumers. But if we have to continue to satisfy our customers we have to conduct ourselves in a manner that is worthy for the simple reason that customers today have a plethora of choices.

A way of Getting Satisfaction from Life…

It has been quite a time since I wrote my last post. Last couple of months have been quite hectic with life showing quite a different colours.

Well, no I feel I am bit settled. Now, I am out of the academics and started my first assignment of the indystry by joining Motorola Reserach Labs for my internship of 6 months this month. The work is quite good out here. So, I planned to start my blog again today with this idea of getting satisfaction from every phase of life rather go on cribbing and complaining.

We are all familiar with the metaphorical story of two people looking at the same glass and one perceiving it as half-full while the other sees it as half-empty. As much as we have heard this, it is still a valuable exercise to really observe our minds and notice whether we are engaged in half-full or half-empty thinking. People will refer to themselves as being of one type or the other as if it was a permanent characteristic, but we are all capable of shifting into a half-full consciousness if we simply make the effort.

When we look at our lives with half-empty consciousness, we perceive a lack and think that the other half of what we want is missing. We are coming from a position of expectation and entitlement. On the other hand, when we look at our lives as half-full we perceive fullness. It is as if we recognize that our cup could be fully empty and so we are grateful for what we see as bounty≈not something we expect or believe we are owed, but a gift. In half-full consciousness, we count our blessings. When we look at our lives we see all the elements that are in place and all the things we do have. This does not necessarily mean we do not seek more, but we seek from a place of fullness instead of from a place of lack. This fullness draws positive energy into our lives and often attracts more abundance.

If we would like to begin to make the shift into half-full consciousness, we should try imagining our life as an empty glass. This is our life without all the people we know, the work we do, our home, or our current state of physical wellbeing. This is just an empty, open space waiting to be filled. Once we have that feeling of openness in our mind, we begin filling it with all the people, things, and places that make up our life. We may be surprised to find your glass overflowing.

An Inspiring Talk by Subrata Bagchi…

I got a wonderful speech by Subroto Bagchi in my mail from one of my friend, Sandip Panda, which I thought of sharing it with you all.

An inspiring Speech by Subroto Bagchi, Chief Operating Officer, MindTree Consulting

“I was the last child of a small-time government servant, in a family of five brothers. My earliest memory of my father is as that of a District Employment Officer in Koraput, Orissa
.
It was and remains as back of Beyond as you can imagine. There was no electricity; no primary school nearby and water did not flow out of a tap. As a result, I did not go to school until the age of eight; I was home-schooled.

My father used to get transferred every year. The family belongings fit into the back of a jeep – so the family moved from place to place and, without any trouble, my Mother would set up an establishment and get us going. Raised by a widow who had come as a refugee from the then East Bengal, she was a matriculate when she married my Father.

My parents set the foundation of my life and the value system which makes me what I am today and largely defines what success means to me today.

As District Employment Officer, my father was given a jeep by the government. There was no garage in the Office, so the jeep was parked in our house. My father refused to use it to commute to the office. He told us that the jeep is an expensive resource given by the government – he reiterated to us that it was not ‘his jeep’ but the government’s jeep. Insisting that he would use it only to tour the interiors, he would walk to his office on normal days. He also made sure that we never sat in the government jeep -we could sit in it only when it was stationary. That was our early childhood lesson in governance – a lesson that corporate Managers learn the hard way, some never does. The driver of the jeep was treated with respect due to any other member of my Father’s office. As small children, we were taught not to call him by his name. We had to use the suffix ‘dada’ whenever we were to refer to him in public or private. When I grew up to own a car and a driver by the name of Raju was appointed – I repeated the lesson to my two small daughters. They have, as a result, grown up to call Raju, ‘Raju Uncle’ very different from many of their friends who refer to their family drivers as ‘my driver’. When I hear that term from a school- or college-going person, I cringe.

To me, the lesson was significant – you treat small people with more respect than how you treat big people. It is more important to respect your subordinates than your superiors.

Our day used to start with the family huddling around my Mother’s chulha – an earthen fire place she would build at each place of posting where she would cook for the family. There was no gas, nor electrical stoves. The morning routine started with tea. As the brew was served, Father would ask us to read aloud the editorial page of The Statesman’s ‘muffosil’ edition – delivered one day late. We did not understand much of what we were reading.

But the ritual was meant for us to know that the world was larger than Koraput district and the English I speak today, despite having studied in an Oriya medium school, has to do with that routine. After reading the newspaper aloud, we were told to fold it neatly.

Father taught us a simple lesson. He used to say, “You should leave your newspaper and your toilet, the way you expect to find it”. That lesson was about showing consideration to others. Business begins and ends with that simple precept.

Being small children, we were always enamored with advertisements in the newspaper for transistor radios – we did not have one. We saw other people having radios in their homes and each time there was an advertisement of Philips, Murphy or Bush radios, we would ask Father when we could get one. Each time, my Father would reply that we did not need one because he already had five radios – alluding to his five sons. We also did not have a house of our own and would occasionally ask Father as to when, like others, we would live in our own house. He would give a similar reply, “We do not need a house of our own. I already own five houses”. His replies did not gladden our hearts in that instant.

Nonetheless, we learnt that it is important not to measure personal success and sense of well being through material possessions.

Government houses seldom came with fences. Mother and I collected twigs and built a small fence. After lunch, my Mother would never sleep. She would take her kitchen utensils and with those she and I would dig the rocky, white ant infested surrounding. We planted flowering bushes. The white ants destroyed them. My mother brought ash from her chulha and mixed it in the earth and we planted the seedlings all over again. This time, they bloomed.

At that time, my father’s transfer order came. A few neighbors told my mother why she was taking so much pain to beautify a government house, why she was planting seeds that would only benefit the next occupant. My mother replied that it did not matter to her that she would not see the flowers in full bloom.

She said, “I have to create a bloom in a desert and whenever I am given a new place, I must leave it more beautiful than what I had inherited”.

That was my first lesson in success. It is not about what you create for yourself, it is what you leave behind that defines success.

My mother began developing a cataract in her eyes when I was very small. At that time, the eldest among my brothers got a teaching job at the University in Bhubaneswar and had to prepare for the civil services examination. So, it was decided that my Mother would move to cook for him and, as her appendage, I had to move too. For the first time in my life, I saw electricity in Homes and water coming out of a tap. It was around 1965 and the country was going to war with Pakistan. My mother was having problems reading and in any case, being Bengali, she did not know the Oriya script. So, in addition to my daily chores, my job was to read her the local newspaper – end to end. That created in me a sense of connectedness with a larger world. I began taking interest in many different things. While reading out news about the war, I felt that I was fighting the war myself.

She and I discussed the daily news and built a bond with the larger universe. In it, we became part of a larger reality. Till date, I measure my success in terms of that sense of larger connectedness. Meanwhile, the war raged and India was fighting on both fronts. Lal Bahadur Shastri, the then Prime Minster, coined the term “Jai Jawan, Jai Kishan” and galvanized the nation in to patriotic fervor. Other than reading out the newspaper to my mother, I had no clue about how I could be part of the action. So, after reading her the newspaper, every day I would land up near the University’s water tank, which served the community. I would spend hours under it, imagining that there could be spies who would come to poison the water and I had to watch for them. I would daydream about catching one and how the next day, I would be featured in the newspaper.

Unfortunately for me, the spies at war ignored the sleepy town of Bhubaneswar and I never got a chance to catch one in action. Yet, that act unlocked my imagination.

Imagination is everything. If we can imagine a future, we can create it, if we can create that future, others will live in it. That is the essence of success.

Over the next few years, my mother’s eyesight dimmed but in me she created a larger vision, a vision with which I continue to see the world and, I sense, through my eyes, she was seeing too. As the next few years unfolded, her vision deteriorated and she was operated for cataract. I remember, when she returned after her operation and she saw my face clearly for the first time, she was astonished. She said, “Oh my God, I did not know you were so fair”. I remain mighty pleased with that adulation even till date. Within weeks of getting her sight back, she developed a corneal ulcer and, overnight, became blind in both eyes. That was 1969. She died in 2002. In all those 32 years of living with blindness, she never complained about her fate even once. Curious to know what she saw with blind eyes, I asked her once if she sees darkness. She replied, “No, I do not see darkness. I only see light even with my eyes closed”. Until she was eighty years of age, she did her morning yoga everyday, swept her own room and washed her own clothes.

To me, success is about the sense of independence; it is about not seeing the world but seeing the light.

Over the many intervening years, I grew up, studied, joined the industry and began to carve my life’s own journey. I began my life as a clerk in a government office, went on to become a Management Trainee with the DCM group and eventually found my life’s calling with the IT industry when fourth generation computers came to India in 1981. Life took me places – I worked with outstanding people, challenging assignments and traveled all over the, world.
In 1992, while I was posted in the US, I learnt that my father, living a retired life with my eldest brother, had suffered a third degree burn injury and was admitted in the Safderjung Hospital in Delhi. I flew back to attend to him – he remained for a few days in critical stage, bandaged from neck to toe. The Safderjung Hospital is a cockroach infested, dirty, inhuman place. The overworked, under-resourced sisters in the burn ward are both victims and perpetrators of dehumanized life at its worst.

One morning, while attending to my Father, I realized that the blood bottle was empty and fearing that air would go into his vein, I asked the tending nurse to change it. She bluntly told me to do it myself. In that horrible theater of death, I was in pain and frustration and anger. Finally when she relented and came, my Father opened his eyes and murmured to her, “Why have you not gone home yet?” Here was a man on his deathbed but more concerned about the overworked nurse than his own state. I was stunned at his stoic self.

There I learnt that there is no limit to how concerned you can be for another human being and what is the limit of inclusion you can create.

My father died the next day. He was a man whose success was defined by his principles, his frugality, his universalism and his sense of inclusion. Above all, he taught me that success is your ability to rise above your discomfort, whatever may be your current state. You can, if you want, raise your consciousness above your immediate surroundings. Success is not about building material comforts – the transistor that he never could buy or the house that he never owned. His success was about the legacy he left, the mimetic continuity of his ideals that grew beyond the smallness of a ill-paid, unrecognized government servant’s world. My father was a fervent believer in the British Raj. He sincerely doubted the capability of the post-independence Indian political parties to govern the country. To him, the lowering of the Union Jack was a sad event. My Mother was the exact opposite. When Subhash Bose quit the Indian National Congress and came to Dacca, my mother, then a schoolgirl, garlanded him. She learnt to spin khadi and joined an underground movement that trained her in using daggers and swords. Consequently, our household saw diversity in the political outlook of the two. On major issues concerning the world, the Old Man and the Old Lady had differing opinions.

In them, we learnt the power of disagreements, of dialogue and the essence of living with diversity in thinking. Success is not about the ability to create a definitive dogmatic end state; it is about the unfolding of thought processes, of dialogue and continuum.

Two years back, at the age of eighty-two, Mother had a paralytic stroke and was lying in a government hospital in Bhubaneswar. I flew down from the US where I was serving my second stint, to see her. I spent two weeks with her in the hospital as she remained in a paralytic state. She was neither getting better nor moving on. Eventually I had to return to work. While leaving her behind, I kissed her face. In that paralytic state and a garbled voice, she said, “Why are you kissing me, go kiss the world.” Her river was nearing its journey, at the confluence of life and death, this woman who came to India as a refugee, raised by a widowed Mother, no more educated than high school, married to an anonymous government servant whose last salary was Rupees Three Hundred, robbed of her eyesight by fate and crowned by adversity – was telling me to go and kiss the world!

Success to me is about Vision. It is the ability to rise above the immediacy of pain. It is about imagination. It is about sensitivity to small people. It is about building inclusion. It is about connectedness to a larger world existence. It is about personal tenacity. It is about giving back more to life than you take out of it. It is about creating extra-ordinary success with ordinary lives.

Thank you very much; I wish you good luck and Godspeed. Go, kiss the world.”

Lage Raho Munnabhai…

I have been bit busy in some of the academic cobwebs for some weeks now. Now that the mid semester is over, I thought I should write something of which I was thinking for a long time to share with you all my friends out here.

Its all about the Latest Hindi Movie Flick “Vidya Balan’. It goes like this:

sheher ki is daud mein daud kar karna kya hai
agar yehi jina hai doston to phir marna kya hai
pehle baaris mein train late hone ki phikra hai
bhul gaye bhigte huye tehelna kya hai
serial ke kirdaron ka saara haal hai maalum
par maa ka haal poochne ki phursat kahan hai
ab ret par nange paaon tehelte kyun nahin
ek sau aath channel par din behelte kyun nahin
internet se to duniya se touch mein hain
par pados mein kaun rehta hai jaante tak nahin
mobile, landline sabki bharmaar hai
lekin jigari dost tak pahunche aise taar kahan hain
kab dubte suraj ko dekha tha, yaad nahin
kab jaana tha shaam ka guzarna kya hai
to doston, sheher ki is daud mein daud kar karna kya hai
agar yehi jina hai to phir marna kya hai

The English translation is:

what to do in running in this run of the city
if this is life, then friends, what it is being dead
first there is fear of train getting late due to rain
forgeeten what it is walking in the rain
we know all the details of the characters of the TV serials
but don’t have any time to know the details of Mother
why we don’t walk on sand with bare foot now
why we don’t enjoy the day even of we have 108 TV channels
we are in touch with the world through Internet
but we don’t know who lives in our neighborhood
there is loads of mobile phones and landlines
but where is the connection that connects with the best friends
when did we see the setting sun-don’t know
when did we know what it means when the sun sets
so friends What to do in running in this run of the city
if this is life, then what it is being dead

The idea is very clear. Even though the technology is developing fast and we are running behind the technology like a mad person not seeing what we are losing at the back—the relations, friends, love and most importantly, FLAVORS OF LIFE. There are no values, attitude towards our LIFE and again our love and care towards our parents. Is that for our great scientists have developed the technology??? Parents don’t have time to play with their kids. Wife does not have time for her husband. Husband does not have time for his wife. Older Parents are constantly being neglected and its clear from the increasing number of age-old homes in the country. Is this the Modern and Fast Transfromed Generations’ Values, Traditions and Cultures and so called STYLE and FASHION???

Technology has come to work for us but if we watch carefully our day-to-day activities; don’t we find it’s the otherwise that is happening.

There is a clear showcase of the above thought as a small portion in the movie. A guy leaves his age-old father and has no time to remember or celebrate his birthday, until he was left with no other option than to celebrate forcibly when Munnabhai akka Sanjay Dutt hangs him from his office floor.

We need to ask ourselves, can this fast pace moving LIFE of these metros stop the old parents being neglected? Can the same bond of LOVE be established among persons? Can the technology make people understand the value of TRUTH in LIFE? How long people will run after MONEY, FAME and of course, NAME? Can the technology teach that its WE that matters and by being, I, they can only loose?

So, friends, it’s the time to go back and see that we find answer to our problems through the use of technology and not run after technology to create more problems, thinking them as solutions, unless it becomes too late.

2. Now, the second thing about the Movie—“The Power of TRUTH”. Mahatma Gandhi won us independence only on this value. In today’s world, people are loosing faith in it because the person, who dares to accept the truth and dares to tell it among all, is being punished. People now believe more in working secretly in fear that someone may not steal their knowledge and thought. They believe more in nuclear families than in joint families. They want to achieve short term goals with falsely self-created implications. They believe more in POWER rather than their self and the people around them. Parents try to hide their wrong doings from their children, children lie for chocolates, students lie and cheat in their examinations and assignments, friends hide themselves among themselves, which grows to give rise to corruption in the form of corrupt politicians, officials running and staying away from their duties and responsibilities being a member of a family, of a society, an organization and of a country. There are ample examples where students go on to curse their environment for their wrong doings but how many of us accept our faults and try to overcome them for the good. Every one of us is unique and have their own way of living life but TRUTH is TRUTH and it does not has any form but yes, it has its existence definitely. Once neglected, has to be paid later.

So, friends let us come together, BE ONE rather than MANY and walk to wards a common cause—development and prosperity, but not at the cost of the values, traditions and relations. BE A HUMAN BEING FIRST, rest all will follow automatically.

The essence of the movies has to be grabbed rather than just the craze and fame.

So, keep up MUNNABHAI and lag raho …
Looking forward to more such sequels from you…
GANDHIGIRI ko chalna Mangta Maamu…
:)

Would like to end up with the comment of Lily Tomlin, which I always love:
“The problem with being in a rat race is even if you win, you’re still a rat.”

Some Quotes…

For some of my dear friends,

Individually, we are one drop. Together, we are an ocean. —– Ryunosuke Satoro

Coming together is a beginning. Keeping together is progress. Working together is success. —- Henry Ford

Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results.

Individual commitment to a group effort — that is what makes a team work, a company work, a society work, a civilization work. ———- Vince Lombardi

If everyone is moving forward together, then success takes care of itself. —– Henry Ford

When a team outgrows individual performance and learns team confidence, excellence becomes a reality. ——— Joe Paterno

The way a team plays as a whole determines its success. You may have the greatest bunch of individual stars in the world, but if they don’t play together, the club won’t be worth a dime. —— Babe Ruth

Talent wins games, but teamwork and intelligence wins championships. —- Michael Jordan

I am a member of a team, and I rely on the team, I defer to it and sacrifice for it, because the team, not the individual, is the ultimate champion. —— Mia Hamm