Sustainable Growth and Quarterly Behaviours

As companies draw to a Quarter Close, there is palapable pressure and tension.  Many corporate leaders stop smiling.  You will notice many of them come out to various business TV channels and speak on what is happening in their companies.  The results may be good but they are still very tense.  There is lot of behind-the-scene activities to ensure that what was committed to the Street is delivered.  The whole world may be falling apart around us, the Industry in which our companies operate may be having a poor business cycle, our customers may not be buying in the market from any company but the Street expects us to perform.  If this is what the Street calls growth, we are barking up the wrong pole.


I heard the Managing Director of one of the top Indian Groups talk on what he understood of sustainable growth. He talked of his conversations with few unlisted, family managed companies that had survived for the last 120+ years.  He said that they managed their businesses based on 4 key principles:

1. Never look at "Maximizing Profits" but rather work towards "Fair Profits";
2. Recognize that your company cannot grow every quarter when the economy it is operating in is going through a down turn - so, do not expect to grow every quarter;
3. Never exploit resources - use only what is needed - the example I could think of was why should companies trawl for fish instead of just fishing to the extent that they can sell. That way, fish can survive and we can get more fish in the long run - we end up killing the Golden Goose in the name of Productivity;
4. Never manipulate the system - i.e. do not bribe the government or do anything that will make money but corrupt the society.

There is so much truth to these 4 timeless principles.  If only we can get companies and the Streets around the world to get out of this short term approach to business, we would have a different world.  Why do we want our companies to share profits better with us (read as higher bonus and more salary) when we are their employees but want them to keep on growing and giving us maximum profits when we are their shareholders?  I can think of greed as an answer...I have written on greed many times but the more I think of it, the more I am convinced that this one attribute of mankind will take it towards destruction.  Budhha mentioned this over 3000 years ago and we are struggling to find a solution to this. We live off this earth and we exploit her. We live at the cost of all other living beings on this earth.  We need to find a solution. Every leader owes it to this planet. Can we start by treating Corporate Social Responsibility not as an activity? We could push our companies to start looking at themselves as part of the society in which they  do business and, therefore, work towards the collective good of the society.

Killing your mother...

I was watching the movie 'Avatar' and in that the hero is talking to the God of his newly found clan.  It is a large Tree and he is linking himself to the tree.  As he talks, he says, "These human beings are invading this planet. They are terrible people. They killed their own mother and now are trying to kill this planet.  I need some help here."  His partner comes to him and tells him, "God will not take sides. He will maintain the balance of nature."

An American Environmentalist visiting India to talk to the Indian Government on how to preserve the Envrionment wrote that she was pleasantly surprised with what she witnessed in the Government Bungalow that she stayed in...she saw sweepers with broomsticks sweeping the garden and she compared that with someone in the US walking around with a petrol powered blower that makes noise and pollutes the air and all that it does is to blow the dead leaves back in to the garden.  When she walked in for breakfast, she was served in a stainless steel plate and tea came in a ceramic cup. She compared that to the paper plates and paper cups used in many countries.  The more she saw the more she was convinced that India has some very traditional practices that actually preserve the nature. She ended up asking the Indians not to adopt practices from other parts of the world but to go back to their old ways which were completely environment friendly.

Reading this account from the American Environmentalist took me back in time...when I was 5 years old. I used to visit my great grand-dad's house every year.  The house was large, very well ventilated and would let the sunlight in from the top.  The place where one took a bath had an opening in the wall and the water would flow through the opening in to the garden. It watered the plants.  We never used a soap those days. It was a lentil that was ground coarse. This coarse powder was mixed with another powder made of a vegetable that smelled nice. We could apply this mixture of powder to the skin.  I can now relate to that...it was friendly to the garden because the water flowed back to the garden from the bathroom and since it did not contain any chemicals, it did not pollute the soil.  It was also a nice way of conserving water.  The lentil powder that we applied to our body was like a face scrub that is now available in the markets. It helped clean the skin pores but did not remove all the oil content/moisture in the skin. So, the skin felt soft even after the scrub. 

We did not use paper plates for eating...instead, it was banana leaves. These leaves were then given to the cows that were in the house.  Disposal of waste was not a concern!!!

We have progressed but this progress has come at a tremendous cost.  It is time we woke up and started using some of our old practices in our homes. We can change the world we live in by each of us contributing in a small way.  I am sure that if each of us goes back to our past, to our childhood, we will find a practice that is more environment friendly than what we have now.  If we can adopt that practice, we will go a long way in leaving behind a better earth for our children.

Our ancestors really cared for the environment.  They treated this earth as they would their mother - with utmost respect and love.  The mother willingly gave back in abundance.  Today, if we really want to get the best out of our "mother", we really need to respect her.  Instead we are going down a path where we will ultimately kill her. Our children and the generations to come will look at this generation of ours as the start point for the destruction of this wonderful ecosystem that can give us all that we want. 

The relentless drilling, the cutting down of trees, the insatiable need for fossil fuels, the encroachment of lakes, river beds and the seas to create more land space, the relentless pollution of every aspect of the world around us are all coming back to haunt us.  The changing weather patterns, the storms, the tsunamis, the flooding of large parts of countries, the landslides, the new urban diseases...all these are the ways that the mother is hitting back at us. Instead of spending millions of dollars to protect ourselves, it would be best to treat our mother earth with respect and love and she will give back to us, in abundance, all that we actually really need - clean water, clean air and clean food. 

Sabarimalai and Lessons of Life

The pilgrimage to Sabarimalai continues to fascinate me. For those of you who may not know what Sabarimalai is...it is a pilgrimage that thousands of people take every year. They reach a river front in the South Indian State of Kerala called Pampa and then start a trek up a mountain - around 5 to 6 kilometers.  At the top of the mountain is the temple of the Lord Aiyappa.  Typically, people fast for 45 days before the journey, walk around bare footed and wear only black clothing.  They do not shave during these 45 days and wake up early in the morning, take a cold water bath and start their day.  All these practices get them prepared for the difficult climb which, in earlier days, was through thick jungle.  Now, the government has cut through the mountain and created a path. The path is rocky in parts and has steps in some parts.  Overall, it is an amazing experience of bringing you back to basics of living.  Many do not go through the 45 days of fasting.

As I reflected on the Sabarimalai pilgrimage that I completed the previous weekend, many thoughts filled me and I thought the lessons that one learns in life are just amazing.  The climb can be equated to the journey of your life. I summarized the learnings as:

• The rigour that you put in by waking up early and taking a cold water bath (someone told me that when we take a cold water bath, the body releases a steroid that helps keep the skin moist and helps cure us from dry skin problems) can become a healthy life long habit. It teaches us that there is no substitute for discipline and hard work;
• The dip in the river Pampa is like washing away the sins of the past and starting off all over again;
• The climb is amazing - it strains you physically, you sweat and even a sour pineapple tastes very sweet as it is the source of sugar (energy) during your climb.  You carry only one pair of change clothes because the more you carry the more difficult it is to climb.  Likewise, in our lives, the more baggage you carry in your head, the more problems you face.  I also noticed many elderly people climbing, people without legs climbing....it showed me that, as in this climb, most battles in life are won or lost in the head.  Those who think and decide to win, will win;
• One of the best learnings was the idea of setting short term goals without sacrificing the long term objective.  There is a part called the Apachemedu.  This has an incline of 70-75 degrees and is very tiring.  As you look up, the slope is so steep that it can dishearten you.  Once you reach the top, you are happy...for few seconds only.  The path actually curves to the left and you suddenly see another slope but this time it is steeper than the one that you just climbed!!!
• The climb down was as strenuous as the climb up.  The incline is so steep that you need to take each step carefully and cannot run. Teaches you to take the ups and the downs in life with the same equanimity.  All of us will have our ups and downs in life. We need to manage these gracefully putting full trust in the superpower that we call "God" to balance out the different aspects of nature for us.

The faith that people put in this superpower is great to experience. As the climb happens, people keep chanting, "Swaamiye Sharanam Aiyappo" or "Swamy Sharanam, Aiyappa Sharanam"....this somehow gives energy and keeps the focus away from the tiring legs and hurting feet.

As we got in to the train to head back to Bangalore, another surprise was waiting for us.  Few with confirmed tickets were already occupying our seats.  We were surprised but decided to wait for the ticket checker to tell us what had happened. The ticket checker said that our tickets could have been cancelled but he would have to check.  All our minds raced off to figure out what to do next. We all thought of different options.  The problem suddenly got resolved when the ticket checker came and told us that we had been allotted different seats and the system did not reflect that.  One of us said, "Swaamiye Sharanam Aiyappo" and as we sat, he said, "We all thought of different ways of getting out of the situation that we had faced few minutes ago.  But, none of us put trust in Lord Aiyappa and thought that He would take care of us.  Is this the faith we have in God?" 

This was a great question to ponder on....But, personally, I was happy that each of us had not left it to God to resolve our issues but had taken the trouble to think through what to do next...those who win are those who think that they will win - someone taught me that God helps those who help themselves!!!

All for a cause that has emotion attached...

As we drove through the streets of Bucharest, the young guide kept telling us of the history of Bucharest and some famous spots of Romania, including Transylvania, the home for Count Dracula.   I asked him as to  why he became a guide and he told me something that will remain with me for the rest of my life. He said, "I am a guide for over the last 2 years and I am a guide because I love my country Romania."

I have talked to people who have passion for their teams, their jobs, their companies, etc. There are not many who have love for what they are marketing.  I was stunned how the love for what he was marketing came through in his words, his tone, his body language and everything that he did.

Emotion ran high in this young man and no money could buy it.  I was reminded of the song that the Beatles had sung many years ago "Can't buy me love...".  I was also reminded of the cry for Independence (Vande Mataram) in India in the 1900s when Mahatma Gandhi took centre stage.  Thousands of people went to jail for the independence of the country.  Thousands were moved by Gandhi's call for a peaceful way towards independence.  Thousands believed in one objective.  It galvanized the whole of India.

A cause and an emotion attached to it can galvanize a team.  I have seen this in the past.  The cause becomes an objective for the team. The reason for the team to exist.  And an emotion attached to it will bring out the passion at work and the reason for coming in to office daily.  I was setting up a new division within an organization that I worked with.  We were to offer back office services to customers who were reputed global companies.  The pressure was on.  No one wanted to join our division as it was new and the risks seemed high.  I managed to get one manager and a a team under him.  The strategy was to bring pride in to the workplace through out-performance.  We created a workplace and branded it and showed that there was no room for politics in the division.  Only meritocracy prevailed. We rewarded and recognized.  We never forgot to say "Please" and "Thank You".  We said that this division should be the best place to work in.  The branding and the fact that leaders walked the talk worked very well.  The people saw the cause - we needed to be the best.  It became the best. The division got talked about globally and was showcased as one of the best delivery teams.

What has worked for me has been to set clear objectives, bringing in clarity around these objectives, setting expectations and then motivating the team to achieve the objectives by giving them ample freedom to make choices.  If the objectives are centred around a cause that has an emotion attached, nothing like it - it is sheer magic!!!

The Devil is in the Detail

Someone once told me that a leader should be able to operate at 40,000 feet and at ground level.  I have held on to this very dearly and when I look for leaders I push to see the eye for detail.  It is not necessary to get stuck in the details. However, it is essential to have a good feel for the business that you are handling and, therefore, the details that go with it.  In my experience, I have always found the devil in the detail.  I have always, therefore, tried to operate both at the 40,000 feet and at the Ground Level and  build a thought process that has the ability to switch between levels in seconds.

Recently, I was talking to a very senior leader in a multinational corporation.  We were discussing a point on risk mitigation.  While we were discussing a strategic model on risk, she suddenly asked a question that was absolutely at the Ground Level and completely took me by surprise. For such a senior leader, she was asking a question that was what we would call "totally tactical".  But, that told me clearly as to why she is such a senior, respected leader.

As we go up the ladder in an organization, there are so many things to manage.  We are also getting things done by others and managing them.  Over a period of time, we forget the details as we start focusing on other aspects.  As we get farther away from the details, our decisions are more driven by our gut feel and experiences of the past and, of course, some facts.  However, if we push to get the details before getting in to a point of decision making, it helps us make better decisions.

I was walking the floor of an Operation that had lot of data entry work.  I saw the floor was dimly lit.  I asked the staff as to why they were closing out lights and working.  They told me that light was bouncing off the keyboard and that was causing them to make mistakes as they keyed in data.  They were also suffering from headache because of this.  This got me thinking.  I was thinking whether it was worth putting in light dampers, reflectors, etc.  Then I asked the question as to why the staff should be looking at the keyboard while keying in data?  Personally, I look at the screen while typing. However, these people were looking at the keyboard while typing...meaning, they did not know typewriting.  The cause of the problem was not the light or the angle at which they were placed.  It was actually the fact that the staff keying in data did not know typewriting.  The solution was to change the test that we administered to our staff before joining.  We started including a typewriting test and this changed the situation completely in few months.

One more example that I would like to share is where a friend came to meet me because she had an inner conflict. She could not spend enough time with her 2 year child. This was because of a greater than 12 hour work day at office and working odd hours.  This had made both the child and her cranky and it impacted others in the family.  When I heard her out for half an hour I thought that she could be facing a prioritization issue.  So, I told her that she should look at her current circumstances and prioritize what she wanted out of life…is it family, child and domestic harmony or a job that pays well.  Her first reaction was that she did not need the job because money was not important and that the child and family were. I dug deeper and asked her to imagine what would happen if she sat at home taking care of the child over the next year and she told me that she could not see herself doing that for more than a month.  I asked her why but she struggled with an answer.  I asked her if money was important to which she said that it was not.  So, this prompted me to use a Six Sigma technique called the “5 Why Technique” where we ask the question “why” 5 times to the answers that we get with each “why” till we get to the root cause. Normally, we end up with the root cause with 5 levels of why.  When we did this, she realized that for her financial independence was critical. The reason for that was a very deep hurt that she had experienced in life when she was a teenager.  She had grown up, got married, had a child and her circumstances had changed but she had not shifted from that bad experience in life that had made her resolve that she would be always financially independent.  When she realized this, she was no more ashamed that money did matter to her.  But to manage both family and keep her financial independence (both of which were her key priorities) she got mentally prepared to take up a job that meant a better work-life balance but with a lower compensation.  She has been more at peace with herself since then. The 3 hours that we spent together resolved a very long standing conflict in herself.

So many times we go through life without understanding key issues that we face because we do not spend time getting in to the details.  If we do that, we get better clarity and resolution to long standing problems. 

As in the example above, the person was able to rationalize as to why money was important and that it had as much priority for her as her child.  And that there was nothing wrong with that....to her, and to me, the devil was in the detail.

When it is straight from the heart, it touches people

As I was leaving for the day and got in to the car, the person who serves tea at the office walked up to me and thanked me. I looked up with a question on my face. He said, "Sir, I was stunned when you thanked me and mentioned my name in the meeting in the morning.  I felt very happy."  I felt a huge tug in the heart as this young man smiled and walked away from the car. There was a spring in this feet.  All I had done was recognize him in front of a team.  It had left an indelible mark on him.

Few days later I received a mail from someone who had attended the same meeting that day.  It said (and I quote), "It would be amiss if I did not write about an event I witnessed recently. During XXX's (name removed by me) coffee talk, what impressed me most was not what XXX said. It was not any of the questions or XXX's answers. What stands out most vividly in my memory was the part where you thanked the team and included YYY (again, the name has been removed by me) in that group. Your words had a ring of genuineness. How a person at the top treats people under him, tells us a lot about the leadership qualities of that person. This event was the catalyst that made me write the mail you are reading."

I have always believed that communication must be honest, straight, brief, timely and straight from the heart.  What has worked best for me has been when communication is from the heart...because it is genuine and is seen and heard as genuine.  The mail above and the spring in the feet that I had seen earlier re-inforce this to me.

Communication is like a weapon and needs to be used appropriately.  The general trend is to ignore it.  Somehow, I feel otherwise.  As leaders, we need to reach out to the teams that we lead.  And when we reach out, we need to be and be seen as genuine and honest.  If we show that we are genuine, our teams will reach out to us. And trust builds only when communication becomes a two way street.

The best of leaders start faltering when there are blocks or degradation in the channels of communication. That is the reason why I pay lot of attention to communication and being able to reach out in many possible ways.  While communication is very important, following through with action is equally important.  Your teams should see that whatever you have communicated is always followed through with appropriate action. That shows that you hold yourself accountable and the teams start recognizing that what you say will definitely mean something.

One of the biggest impediments to communication is the fact that what is communicated is dependant on the person receiving it.  So, the same communication can mean different things to different people. That is why leaders are very careful when they communicate. They measure their words and tend not to give away too much.  This means most of what they say is well thought through...tends to be more from the head than from the heart.

If we understand that it would be best to judge something that has been said by trying to find out the intent rather than the content, leaders will find it easier to talk impromptu and be more natural.  This will bring out what is in their hearts...and when it comes from the heart, it will definitely touch people.

Taking a Punt

I have done different roles in my career - finance, accounting, audit, risk, sales, marketing, relationship management, back office and general management.  I noticed that when I tried to shift from banking front line to a back office, it was not very easy.  A German decided to hire me in to a global back office.  While hiring me he said something that really struck me and I will never forget it. He said that he was hiring me because I have no clue of back office operations and hence will bring a fresh perspective and because I play the guitar.  Many years later I asked him why playing the guitar was a reason for him to hire me.  He told me that if I had a passion outside of my job, it helps to rejuvenate.

As leaders we spend a lot of time meeting new people for hiring them in to various positions in our organizations.  We tend to look for people who can hit the ground running so that we need not spend too much time trying to explain the role and job to the person when he/she joins.  However, what has worked for me is to try to look for a person with the right skill sets, the right attitude, a smile on the face and is very well prepared for the interview.  So, when I needed someone who could bring a customer centric approach to the back office operations, I hired someone who had done Sales in the Media Industry. Similarly, I have hired many people who bring diversity of thought and the skill sets needed for the job, not necessarily experience in the particular industry or vertical.

Human beings adapt and we need to give them the time to do so.  If we provide that opportunity, we end up getting the best of talent when there is seemingly none.  I do not believe that I would have been in this position today if leaders who gave me the opportunities did not want to take the risk.

Typically, I look for a huge smile on the face, an attitude that is easy going, skills that match the job that is on hand, a sharp mind and capacity to work hard.  I also look for hobbies and prefer someone who comes well prepared for the job discussion.  What has worked for me always has been when I have prepared well for an interview.  I do a lot of ground work on the role, what is needed for that role, what is my fitment in terms of skill sets and where I would need improvement.  As a person being interviewed, you need to show that you are keen on the job and have prepared well.  

Hiring is not an easy task and it takes years before one starts making lesser hiring mistakes.  It is difficult to make judgement calls on a person who you have never known in a short interview.  Yet we make such decisions.  The biggest mistake we make is that we do not use the same approach to someone who works for you and wants the same job.  Since we know all the improvement areas of the person working with you, we tend to be biased while making a choice.  That is why many a time, senior positions are filled from outside of an organization than from within.  As leaders, we must have the courage to take the punt.