How the Mighty Fall

Writing about failure and falling down is an odd topic to discuss during the holiday season. This is after all the season of fun, frolic and cheer - a moment when we rather not talk of failure. And even if we have to, we would rather frame failure in contrast to success where success is defined as the overcoming of failure and the capability of bouncing back from our fall.....

But would it really help to understudy failure given that everyone among us is bound to fall at some time or the other? To help us better, what if there is a method or structure to failure that we can learn from? Put it differently, when everything around you is seemingly looking fantastic, are there warning signs that you can identify in advance so that your fall can be managed better?

Readers of my blog know that I like to read books. It was fiction once upon a time and management now. But my underpinnings to reading have remained the same all through viz. what does the book teach and are its teachings relevant to a common man's life? The true measure of greatness of any book- according to me - lies in its ability to present a view that is universally and eternally applicable regardless of its genre. After all, not everyone gets to be 'strategic' or 'global leadership material', but each one of us is - and will remain - a leader in our own way in our lives. And lessons derived from a book on management must have as much applicability to the family world as it would be to the corporate life.

For meeting all these criteria, I rate my latest read How the Mighty Fall as one of the best (that incidentally can also be finished in just two days). 

The book was driven by a simple question posed by a CEO to Jim Collins, its author, on 'how would you know?' whether an organization is on a path to decline or on a path to greatness, when externally, everything looks hunky dory. Thus began his journey to understand the dynamics of failure. (If you are reading this book from the viewpoint of personal growth, the relevant question would be 'how would you know that the seeds of your decline have not yet been sowed when externally you seem to be doing just great?'.) 

You learn that every entity goes through five stages of decline. Each stage has distinct characteristics and clear warning signs. The five stages are:

1. Hubris (excessive pride) born out of past success

2. Undisciplined pursuit of more

3. Denial of risk and peril

4. Grasping for salvation

5. Capitulation to death

In fact, the first three happen when the external world thinks there is nothing wrong with you. But the internal signs are there for all to see, and companies that ignore these internal warning signs do so at their own peril. The examples that Jim Collins shows us as he walks us through the five stages are profound. So are classic vignettes such as "while no single leader can build an enduringly great company, the wrong leader vested with power can almost single-handedly bring the company down' or 'when institutions fail to distinguish between current practices and the enduring principles of their success, and mistakenly fossilize around their practices, they've set themselves up for decline'.

The redeeming conclusion is that the stages of decline are truly reversible - provided you are not in the terminal phases within Stage 5. What you need is an ability to go back to basics by identifying your core purpose and values, adding a healthy dose of humility and diligence, and an unyielding drive to never ever give up. That your path to failure may be dark, but when you understand the five stages, there is light for you to bounce back. 

If you want my advice, read Good to Great first before How the Mighty Fall. Not only does the former teach you to turn great, but also acts as a firm reference point as you navigate the latter. And once you are done, maybe you can read his latest Great by Choice next.

Happy Holidays everyone and wishing you a marvelous 2012.

Delivering the Goods in Online Grocery Business

I have referred earlier to my posts on the Infosys Supply Chain blog. One went up yesterday on Supply Chain Matters, an external blog dedicated to providing viewpoints & insights into all things supply chain.

CAUTION: To those of you who are thoroughly disinterested in reading such topics and have often threatened me in the past of dire consequences for posting such 'heavy' topics, well.... a few things might help:
- this is about online shopping
- this is about activities you undertake at least once every week
- this is about a few things that need to be done by your retailer so that you continue to be happy shopping

If you have changed your mind and want to read, please go here.

As about the rest.... you have not missed much :-)

How many people does it take to screw in a light bulb?

I am on my way home. By the office bus that is always well-lit. That makes my journey very productive unlike spending a wasted hour in a dark cab. The bus ride is usually spent reading a book. Or an issue of Fortune. In rare moments of insanity, I venture into the Harvard Business Review & try my best to stay awake. Understanding HBR, of course, is light years away.

Speaking of light, I want to tell you about something very important & change the way you think. So I decide to write and open my laptop. The girl next to me looks irritated. “It is 8 PM for god’s sake”, her eyes are saying, “and this moron wants to work on his laptop?” I don’t blame her, but as I said, I am on this mission to change the way you think.

So answer this simple one for me. How many people does it take to screw in a light bulb???

A few of us were walking back to our desks after our break at the Hatti Kaapi counter in Infosys. These guys make great coffee. Drinking it stimulates your mind and opens the conversation in new directions. A friend is about to move into his home and wants the best place to buy light fixtures. I tell of a place in the Bangalore City Market, a second person pips in with ‘Delhi’ while a third says ‘Mumbai’ (I told you that the coffee makes you go in all directions). Before the owner can decide, I ask him whether he has decided on the the type of bulbs to buy. “CFL” he says. “That’s it?” I ask. His eyes narrow with “of course you idiot!!! What else is there?” It’s time for us to split but I am thinking “Boy, I need to teach him a lot in tomorrow’s Hatti Kaapi discussion”.

So answer this one for me folks. How many people does it take to screw in a light bulb???

I vividly remember the first instinct when I first read this joke 20 years ago. It was not the number that my instinct was after. Instead, the ‘logical’ part of my head was saying “No one screws in a light bulb dumbo. Light bulbs have a pin. You put the bulb in a holder and twist it such that it locks tight”. But since this was meant to be a joke, I ignored the grammar and went Ha-Ha-Ha at the answer. I finally discovered light in circa 2000-05 in the USA when I made my first bulb purchase. That was when I saw the light bulb with a screw head. And THAT explained the question in the joke....

Bulb with a pin
Source: http://www.bajajelectricals.com/

Bulb with a screw head
Source: http://www.bajajelectricals.com/

Now that we have established that light bulbs can really be screwed in, answer this one for me…. How many people does it take to screw in a light bulb???

But wait. Let me first nudge you towards four things that you do not know about light bulbs.

1. You really don’t know the right wattage, do you?

Take your simple CFL. It saves power. But do you honestly know whether it is the 11W or the 14W that works best for you? C’mon.. admit it…. you NEED that assuring label to say “11W = 40W” or “14W=70W” before you know what works best.

2. You really don’t know the width of the screw head, do you?

Congratulations!!! You have narrowed your choice to the right wattage. Now do you know the right width of the screw head? Most bulbs have at least 2 widths for the same wattage. If you are darned unlucky, you might even come across a CFL with a pin. The choice of your bulb is wholly dependent on the holder that you did not even bother to look / analyze when you first installed it in your home.

3. You really don’t know the effect of the fixture, do you?

Excellent!!! You have the right wattage with the right screw head. But why is your 14W lamp just right for your 10x10 bedroom and terrible for your 10x10 study? Dear Watson!!! It has everything to do with the glass of your fixture. Clear glasses transmit more light compared to semi-frosted ones that in turn spread more light than fully frosted pieces. And…. and…. the size of the opening of the fixture absolutely matters. The room looks dull if the opening is small and too bright when the aperture is wide.

4. You really can’t open the fixture and screw / twist the bulb on your own, can you?

You are a genius!!! You have the right bulb, screw head and fixture. But can you replace the bulb on your own? Do you have the right tools? And are your hands really steady when you try to extract that microscopic 3W bulb that you got conned into buying for your bathroom when your sweetheart cooed oh-it-is-so-beautiful-I-so-want-it? I am telling you.... falling for your wife’s charms is very dangerous, especially when they offer opinions on electric lamps.

So for the last time, answer this one for me…. How many people does it take to screw in a light bulb???

Here's the answer. There was a time when it was ONE. Buying a bulb was easy then. You bought ‘yellow light’ or ‘tube light’. Fixtures to cover these were rare inside your home. In other words, the lights were ‘naked’. Every room had just 2 lights. The tube with 40W and the yellow light ranging from 20W–60W based on room size. As a kid, you were proud of the fact that you knew what bulb was needed where, how much wattage it had, and how it must be twisted in.

But today, buying a bulb is complex. There is the manufacturer who must print the right label in the packaging. There is that store associate who provides his thoughtful wisdom on the right fixture. There is this electrician who puts it all together. There are at least 3 members of your family who offer counsel on whether the brightness of the lamp is OK. And when their verdict is a resounding No, there is now that YOU who must drive back to the store to get the right replacement.

Ladies & Gentlemen - it takes an army to screw in a light bulb. Let us be at peace with this illuminating fact and stop cracking those jokes. Amen!!!

Fact vs. Fiction

"Arun, do you really believe that there is a heavenly abode from where Lords Muruga, Ganesha and Shiva are watching us all the time?" asked a friend over 12 years ago. I was stumped. And stayed silent. Yes, I knew that a lot of them are just stories, and myths, and mythical stories. But I was also conflicted. If there really is no heavenly abode with all these gods - as made out in scripture - then how can I be certain that the other things that scripture says are also true? And if only a part of scripture is true, which part is real and which part is fiction???

Most importantly, how do I get the wisdom to distinguish fact from fiction?

More questions followed over time. Why do certain religions claim exclusivity to God? How can certain groups state that if the world does not follow their path - and their path alone - they are consigned to a life in hell? And how can one reconcile the 'world was created in 7 days' school with the evolutionary school that maintains that the humans developed over centuries?

In other words, what is fact and what is fiction?

Every one of us has experienced this and we consider the unraveling of such questions to be a quest. We realize that answers do not arrive with a 'flash of insight'. That is why we mull, read, ponder, and sleep over them. We also converse and validate. Finally we conclude. But that is never the end. Sometimes our 'conclusions' are proven right through experience. But sometimes, they don't. That is when we - yet again - mull, read, ponder, sleep, validate and conclude. And once we conclude, we realize to our surprise that our questions do not stop. Like a video game, as we clear one level, we enter a new level with more complex questions.

And as our questions - our answers to them - multiply, we yet again wonder what is fact and what is fiction.

That's life. A constant search for answers in a forest of confusing questions. By analyzing what occurred centuries earlier and contemplating what lessons it holds for our future. Eventually, like my blog here, I suspect that we will discover that our journey was as meaningful as our destination. And we will be able to significantly discern the lesson of the story (fact) from the story (fiction) itself.

My personal journey on this front is unfortunately not much ahead of the start line (grin). I am way behind peers who read The Gita, J. Krishnamurti or Swami Vivekananda. My personal realization arc is still in its infancy. One that has a very strange construct because it was formed not through The Gita or Ramayana, but by imbibing Abraham, Walking The Bible and The Immortals of Meluha. One that tells me to remain flexible about God because 'my' Vishnu is not in any way superior to my neighbor's Allah who in turn does not supersede my work mate's Christ and who in turn does not tower over others. That the paths to God are many. That you must Seek. And the Answers will come.

What I have said here is no rocket science. Yet, in the name of 'my way is the right way' and in his inability to separate fact from fiction, man fights.

The End of Wall Street

The End of Wall Street by Roger Lowenstein - former reporter of the Wall Street Journal, writer, financial journalist and director of the Sequoia Fund - is a masterpiece that traces the fall of the markets in 2008 to events that began several years earlier. From the first page until the very end, no one is spared. Alan Greenspan is criticized for his dogged insistence that 'markets are perfect and self-regulating'; financial institutions are shredded for greed, risk taking, and excessive bonuses; home lenders are blasted for lax lending practices; ratings agencies are thrashed for inherent conflicts of interest; Republicans are called out for their visceral dislike to regulation; Democrats are exposed for their insane support of home ownership even when people cannot afford one; and ordinary citizens take blame for financing daily lives on credit and home equity.The crisis therefore was no accident, but an event waiting to happen....

The book highlights the tendency of the past three decades to glorify the wizardry of 'quants' (mathematical geniuses in Wall Street who construct elaborate risk models) and diversification (securitization) of risk. Of the former, Lowenstein's complaint is that they assumed perfect markets where home prices only marginally go down. Of the latter, he adds that 'in the eyes of each individual firm, risk was reduced. But the danger that a failing firm could bring down a host of others was slowly and steadily accreted'. 

Books like these often offer lessons in humility (which may I add has been blatantly missing in Wall Street for a long time). Stan O Neal, the head of Merrill Lynch, comes across as increasingly aloof and playing golf - alone - for 100 days a year. His salary? $48M in 2006. Many of his fellow CEOs are no better, being highly disinterested in understanding the very complex instruments that they were peddling. Vikram Pandit of Citi orders a $350 bottle of wine in a fancy restaurant to savor just one glass (the rest is discarded). In Lowenstein's words, 'On Wall Street, the habit of extravagance is deeply ingrained'. Only Jamie Dimon of JP Morgan comes out looking clean. 

Mortgage securities, CDO, default swaps, and synthetic derivatives - every topic is well explained. So is the underlying message that the crisis - unlike the Great Depression - was one of capital and not liquidity. The biggest takeaway however is that there is no such thing called a self-regulating, safe and rational market.  In that sense, the book is not really a statement on the end of Wall Street as such, but a more measured viewpoint that the old ways of working at Wall Street are coming to an end. 

Roger Lowenstein deserves kudos for taking a complex topic and peeling it layer by layer for all of us to see - and comprehend. If a fast-paced account on the last few months of the crisis in 2008 is what you are after, you are better off with Too Big to Fail (reviewed here). But if you really want to understand how the house of cards was built, The End of Wall Street is the right choice.

I am rating it 5 stars!!!

Coordination - The Great Male Challenge

"Not too many people can carry themselves wearing purple bordered shoes; they look great" said someone to me the other day. Until then, I did not even realize that shoes normally do not come with purple borders. I was grinning that I got it right - but deep down - I knew that this is not how it was planned... 

Ask any guy to list the common theme across these 6 words - Almond, Buff, Camel, Daffodil, Eggplant and Flax. Buff will catch his eye right away. He will then attempt to somehow frame nakedness (search the term 'in the buff' on google) with the animal, flower and edible items on the list. Since this is a family-friendly blog, I will refrain from specifying the explicit thoughts that will eminently emanate from the hot-shot male. 

A lady on the other hand is not so complicated. One look at the list and the right answer comes out. "That is a list of colors dumbo". And she will rattle all the other exotic colors that go very well with this list (guys: for a sample of colors, please go here; ladies: don't even bother coz. you'll know much more).

Why is color coordination so unimportant for guys????? And why is it that when we do get it right, it is purely by accident?

Take my recent trip to Belgium. I went shopping for a pair of shoes at the Nike store. I am big-footed  (India Size 11 / US Size 12). The way I shop for shoes is simple and logical. I walked 4 aisles, picked all shoes that were size 11 (you normally don't get many), placed them next to each other, removed the most expensive ones, narrowed the count to two by trying all of them, and then chose the one that appealed to my eye. When I walked into a Nike Outlet Store in the US wearing those shoes, 3 store associates surrounded me to congratulate on my purchase and explain its benefits (it turns out that this model had been introduced only a month ago and that made me an 'early adopter'), and showed me a newer model that had come out only the week earlier. It was a heart-to-heart-pure-guy-talk focused on comfort and utility. It so happened that my shoes were colorful.

Even during the Stone Age when footwear was made only from animal skin, I am willing to bet that no woman would have chosen her shoes this way....

But there are also times when my color coordination brings me to earth. During the very same US trip, I wanted to disprove Priya's accusation that I choose 'sober colors'. I walked into the Wal-Mart store and bought a backpack for my laptop. Ignoring the greys, blacks and browns, I chose something 'bright'. The next day, I insisted that I be given a sub-compact at the rental car agency. "Mazda OK?" the sales guy asked. "Absolutely Fine" was my response. I was thrilled to be given a 'bright' sporty Mazda2. On Saturday, I selected the only neatly ironed 'bright' T-shirt that I had remaining. Oh Priya... you are so wrong.... your husband is brightness personified.... hmphhh......

Reality hit when I got to my car. My T-shirt.... was bright green. My laptop bag that was holding the camera and maps... was bright green. And my Mazda? Spirited Green Metallic like the one here. Aaargh !!!! Now I know why I outsourced my wardrobe and color coordination function to my wife several years ago....

There are times when lack of coordination can be brushed off. But there are moments - like traveling in India for instance - when coordination means everything. So the next time you plan a trip to India and you want to include some delightful sightseeing, I recommend that you consider custom tours. Savi & Madhu, friends of mine and former workmates, decided to celebrate their tenth anniversary in a way all of us only dream of - quit their jobs in the US, sell everything they possessed and undertake a multi-year trip through India. The result was this masterpiece of a travel blog aptly titled 10YearItch. Madhu loved the experience so much that he decided to start a Travel Company (10 Year Itch TOURS) to provide customized tours based on the knowledge gained by traveling around India for nearly two years. So go ahead, look them up, and read about their travel adventures here. And if you like what you see, talk to them and talk to others about them. I promise you that you'll love your interactions.

Please also note that I do not monetize my site or derive any profit. I write for the sheer pleasure of writing and for the joy/information that my readers get. I have placed a banner ad linking you to 10 Year Itch, but you can be assured that there is no monetary benefit here. I am always impressed with folks who spend time on the ground before embarking on anything. To me, that is a reflection of one's passion and that - I believe - will result in a superior product/experience for the consumer. Madhu, and the 10 Year Itch, belong right there.

The A-Z of Supply Chain Management

I recently completed reading Guide to Supply Chain Management: How Getting it Right Boosts Corporate Performance. This is published by The Economist and written by an eminent supply chain strategic consultant. If you are a novice to supply chain and often confused by conflicting definitions on what SCM is - and is not - read this book. If you are a supply chain practitioner and want some clear markers on designing a comprehensive supply chain strategy, read this book. David Jacoby's experience of over 20 years clearly comes through in this well-researched piece.

The book very quickly jumps into the 4 key supply chain strategies - cost rationalization, demand-supply synchronization, customization and innovation - that organizations can pursue. And highlights early on the often forgotten point that while we can classify any function within an organizational silo, activities within them cannot be similarly silo-ed if we want to derive value. For instance, we often lump DC-Network design and an initiative such as cross-docking under the warehousing function. But how many of us look at the former activity through the lens of cost rationalization, and the latter as an enabler of synchronization? Insights, such as this, abound.

The book frames the final few chapters with details on the organization structure, information systems framework and KPIs that must supplement each of these strategies. And that is when we truly comprehend the completeness of supply chain management.

My only grouse is that the book went into too much of theory and detail toward the end. Maybe it was intentional, given the wide range of audience it aims to cater to. But if you can stifle some of those yawns and plough on, you will be enriched with a wealth of knowledge on how you must design, strategize, implement, measure and enhance your supply chain.

I'll rate this 4 stars.

The Themes in Your Life

The inspiration for this blog came from two unlikely sources when it was first drafted six months ago.

The first was several years ago when I came across an article in the Fortune Magazine titled ‘What it takes to be great’ by Geoff Colvin, its senior editor-at-large. In essence, he argued that practice and hard work trump talent. The feedback to the article was so good that he subsequently penned the book ‘Talent Is Overrated’. I read the book only recently (reviewed here) but the idea that talent is not the driver to success had been firmly planted.

The second was my own experience. 16 years of working in the industry has exposed me to a variety of challenges. I have seen several people up close on how they successfully navigate everyday issues, but also have seen others – brilliant, intelligent & hard working in their own way – fail remarkably. About the latter, we just say ‘what wasted talent’ or ‘he could not make it’, and move on. Upon close observation of such folks (who span all levels of an organization from the very top to the entry-level), I was able to derive a few consistently common themes that successful individuals apply and the rest do not.

This blog is about these 4 themes. They will look very ordinary and simple. In fact, you will be very disappointed that they do not sound ‘strategic’. But I can state with confidence that imbibing them is your first step to greatness. While success in life, career, marriage and parenthood is a function of many many aspects, these four make a good beginning.

Before we get on to the themes, let us understand the meaning of precocious talent by taking an example of a person from sports that we are familiar with - Sachin Tendulkar. Die-hard fans will point to his 600+ run stand with Vinod Kambli when he was 15. They will talk about the centuries he scored on debut in the Deodhar & Duleep trophies before 16. And of course, they will rave about his fantastic innings on a bouncy track at Perth that is considered to be one of his finest test centuries before he was 20. All this is proof – they will say – that here was a player who was born with talent and destined to greatness.

But these fans are wrong. Talent is terribly overrated and the themes to success reside elsewhere.

Theme 1: Read Read Read

There are several CEOs in the world who do not play golf, but there is practically no CEO who does not read. World leaders, in addition to running their countries, read about 50-60 books per year. Lack of time or disinterest in reading is no longer an acceptable excuse. Reading opens your mind to new ideas and helps create new ‘connections’ in your head (think of it like the act of raking your head that is similar to how the farmer rakes his land before every sowing season).

Read all that you can get hold of. Fiction is fine, so are comics. Dig into economics – and yes, watch CNBC for business news - even if you don’t understand anything in the beginning. Some day, I promise you, it will all make sense. Read viewpoints from both the left and the right – regardless of your political inclinations. You will be surprised that you are not as much a die-hard capitalist or a bleeding liberal that you thought to be.

Theme 2: Write Write Write

Writing crystallizes your thinking & frames your perspective. This will make you measured – and over time – assured. Take notes…. copious notes... I once had a colleague who would get furious when people walked into his meetings with no notebook in hand. ‘It means’, he would say, ‘either what I am going to say is not important or you think you are not required’.

Theme 3: Practice, Practice, Practice

Look up the 10,000 hour rule on the internet. It states that in order to be considered an expert, you need 10,000 hours of practice. Malcolm Gladwell in Outliers argues that Bill Gates of Microsoft & Bill Joy of Sun Microsystems reached greatness by 17 because they had the opportunity to work on computers for over 10,000 hours. In Talent is Overrated, Geoff Colvin explains the elements of deliberate practice – it must be focused, involves feedback, and must be painful.

Incorporate the 10,000 hour rule in your lives. Practice before every speech, every presentation and every meeting. Expect the unexpected. An instructor once told me that before everyone arrived, I must go to the farthest chair in the room and check for font sizes and color palettes on the screen. It was from him that I learned that the days of blaming the projector were over.

Theme 4: Think Think Think

This is most difficult, and often avoided. We get so busy in our work, families, chores etc that we do not spend time to think. I will ask you to start thinking about just 3 questions.

• What is your purpose in life? To put it bluntly, why do you exist?
• What are your values? In short, what do you stand for?
• How do you want to be measured on the day you die?

Start asking these questions from today. I promise you that you will not find the answers right away. Or tomorrow. Or the day after. These will take years. But if you don’t give up, one day you will find them. And that is when you will discover your life’s true calling.

In conclusion, I go back to Sachin Tendulkar. In case you insist that he was just talented, think again. 10+ hours of cricket from the time he was 11. Facing bowlers in the nets from 18 yards instead of 22 to improve his reflexes. A body that has more dents than your bike or your car. Sachin Tendulkar - a true embodiment of deliberate practice. I rest my case.

L.L. Bean - Big Shoes To Fill

An advantage of working with Retail clients is that you understand the method and the madness in deciphering consumer behavior. A lot of thought goes into the layout of the aisles, arrangement of items and diversity of choice. You develop immense respect for retail specialists and store associates whose business it is to observe buying patterns, develop insights, remain innovative, and offer an experience that buyers can cherish. 

But to me, the true measure of the iconic nature of a company is reflected in its culture, depth of innovation and interactions with its customers. These principles were in full play during my previous US trip when friends of mine strongly recommended that I visit the flagship L.L. Bean store at Freeport, Maine. That two hour visit inside this 24-hour-365-days-a-year store showed me just why this company is so adored by millions around the world. 

L.L. Bean is a privately held retailer specializing in clothing and outdoor recreation equipment. It has stores in the US & Japan, but derives a large share of revenues via its mail-order catalog and the web. Even before you enter, you get a flavor of its customer service and innovation. A large mock-up of its first-ever product, the Maine Hunting Shoe, frames the entrance. 

As you watch kids – and adults – pose by the shoe, a poster to its left proudly proclaims its lineage. In 1912, Leon Leonwood Bean returns from a hunting trip with cold damp feet, and thus is born the idea of a shoe with waterproof rubber bottoms and leather uppers. He sells 100 pairs to fellow hunters and sportsmen. 90 are returned because the stitching that connects the leather and rubber gives way. Although it nearly puts him out of business, he refunds the customers' money and improves the shoe design. A unique mail-order catalog company takes off.

An associate greets me as soon as I enter. I tell him where I am from and that I have been encouraged to visit even though I do not hike, shoot or fish. He smiles, offers a store map, tells me what to look for (there's tons of apparel and home furnishings to consider) and asks me how else he can help. I ask him something that I am sure will be met with either a 'No' or 'Let me check with my manager'. I ask him if I can take pictures. 'That's fine, take as many as you want' he says. I have been to 9 countries, worked in 6, have visited retail outlets in every one of them – and I can say with confidence that not many associates are empowered to give that answer in a flash in the cut-throat world of retail. Less than 10 steps into this store and I am already impressed.

You see memorabilia from the past. The first shoe.... the sewing machine where it all came together... and that classic quote by L.L. Bean that is relevant not just in fishing, but also to life (and may I say, to investing as well:-)).

                                          

 

As you walk further, you understand how one drives innovation by working closely with world-class requirements, pushing products to their limits of endurance, and constantly thinking of customers' needs.

You also realize that when you go into a store, you do not buy a product but live an experience. That explains why right next to a hunting platform (machaan) that is on sale, there is also a mannequin with the right apparel and gear.

But most of all, it dawns on you that their statements on customer satisfaction go right into their DNA. Above their check-out counter is a philosophy born 100 years ago that is relevant even today. It is their famed Return Policy that allows you to return their product any time after you buy if you are not satisfied. 

Outstanding values, great products, fantastic shopping experience, and phenomenal customer service. The recipe for true customer delight. We all know this - it is neither original nor unique. But only when you visit a world-class store like L.L. Bean (Apple store is the other that comes to mind) do you understand how all these ingredients must come together.

Don't miss this store when you are in Maine next.

Talent is Overrated

So what makes some people world-class performers? Is it due to innate talent? Do they possess god-given gifts? Do they have fantastic intelligence? Or are they genetically well-endowed? Geoff Colvin, Senior Editor at Fortune, explores this in a superb book - Talent is Overrated.

Taking a range of examples from the 1800s, and across a variety of disciplines including science, sports, music, investing and technology, his conclusion is profound yet simple. The answer to all the above questions is No. Mozart became Mozart by working hard.

But Colvin argues that is it not the simple ‘hard work’ - as we know it - that gets you ahead. What is required to build world-class performance is deliberate practice; a kind of practice that is specifically designed to improve performance, that is repetitive, that is highly demanding, that involves receiving constant feedback, and above all, that is just not much fun. Reading about Mozart, Tiger Woods (who was a world-class performer by 19 and been practicing the game for 17 years), Warren Buffett and many more, we understand that as you apply the principles of sustained deliberate practice, you perceive better, understand more and remember a lot more.

The book is good not just because it is relevant to sports and music. For professionals like us, it talks about the importance of building deep domain knowledge, reading multiple case studies to manage the complex interplays, and setting goals not just about the outcome, but more specifically on the process we will undertake to reach the outcome.

Parents will be delighted to know that the book does not discount the ‘edge’ a child may have in intelligence or capability. But they must heed the argument that these advantages are at best marginal. The ‘edge’ in a child translates to ‘greatness’ only due to the multiplier effect of deliberate practice coupled with a strong support environment, the right tutors in one’s life, the sacrifices made by family and the intrinsic passion within.

We all know the 10,000 hour rule (simply put, it is the extent of effort required to be considered an ‘expert’ in any field). Where this book excels is in providing clarity on what constitutes ‘practice’ during those 10,000 hours. Read this once if you are a professional. Parents – read this twice.

Salute to Jobs

This one is all over the internet these days, but definitely worth reading any number of times.

Steve Jobs. And his attention to detail. On a Sunday. Well said !!!

More of my posts on the Infosys SCM Blog

Got a new post here on some of the trends in retail grocery. You could call it the effect of working with bananas, lobsters and chicken for sometime now. :D

I also have a few supply chain posts going at the same Infosys SCM blogsite. You already have seen this earlier. Its continuation can be found here and here.

This talks about how lean warehousing and agile development go together.

As always, would love your comments.

Farewell Mr. Murthy

Newspapers are talking about the N.R. Narayana Murthy era as he transitions out of Infosys on his 65th birthday today. Business channels are running his interviews alongside programs depicting the simple origins of this terrific company. Watching them, one gets the sense that here was an extraordinary leader & visionary who possessed great integrity & values to build Infosys into what it is today.

Much of what is said is true. Being a visionary leader with integrity did lay a rock solid foundation to success. However, remember that Leadership is a diffuse term as pointed out here and here.  And the human mind is not very expansive when it comes to retrospection. It prefers to look at a situation and draw succinct conclusions on why it is so. We are a countdown generation. 'Top 3 Reasons Why It Happened' is our i-Phone Playlist Favorite rather than 'How to Assimilate the Complex Interplay among Varied Dimensions & Levers to Determine Why It Happened'.

At the public farewell to Narayana Murthy yesterday in the Infy campus, I was privileged to witness some of this interplay that made NRN great. When speaker after speaker extolled the virtues of this man and regaled us with stories from the past, when videos depicted a measure of his persona and his phenomenal rise, and when NRN himself came on stage to exhort us to dream of a $60 billion and $600 billion Infosys - it became increasingly obvious that his success cannot be solely explained by the 'vision-leadership-integrity' triad.

Kris Gopalakrishnan, CEO of Infosys says that the first call made to him that morning is from NRN at 6:10 to apprise him of some status, and NRN had preceded this call with an email at 5:43AM. Mind you, this is NRN's penultimate day. Bill Gates sends his wishes in a recorded clip and looks forward to working with NRN on philanthropic causes. Deepak Satwalekar, Independent Director of Infosys (and MD & CEO of HDFC Standard Life Insurance) mentions that here is a man who played with a straight bat and never preached what he did not practice. Dr. Rohan Murthy, his son, thanks us and former employees for the joy we brought to him, and indirectly to his family. KV Kamath, Independent Director (and incoming co-Chairman of Infosys), tells us how NRN had the ability to look at seemingly complex technology and provide insight on its relevance to the common man. And how he is always generous with his time and willing to mentor you and back you. 

As 2500+ Infoscions rise to applaud as NRN walks on stage - and a lot more watch the event  live on their desktops - he tells us that for him, the past is dead and gone. The past is only useful to draw lessons from and apply to the present in order to create a better future. "In God We Trust" he had once said, "but for everything else, we believe in data". Well, on Friday, data just flowed. He is confident that Infosys can add value for the next 200 years. We get a lesson on per capita revenue productivity and how we must look at competing developing countries like China, South Korea, Singapore and Taiwan that are 20% higher on this metric. He articulates the need for fast-track leadership programs to nurture and motivate top talent. Take quick decisions, remain humble and be kind to ex-employees who chase a different dream is his advice.

From this evening, certain memories will remain. Mrs. Sudha Murthy in a video talks about the Rs. 10,000 she had lent to start Infosys. We all know this. But did you know that she had actually saved Rs. 10,250 for emergency purposes? "Even then I did not give him all my savings. The other Rs. 250 went back into the emergency fund". In another segment, she adds that if ever a blood test would be taken of NRN, there would be no haemoglobin... only Infosys.... Infosys....

But to me, the pinnacle was an anecdote from Vallabh Bansali of Enam, the Lead Manager of the Infosys ADR in the 90s. During the roadshow in the US, Mr. Murthy does not attend the dinner meeting one night. Vallabh is told that he cannot make it. It is only several days later that the truth is known. Mr. Murthy was suffering from a bad tooth and in pain. But he did not want to search for a dentist in the US, go through the procedure and impact the roadshow. Therefore NRN does the right thing in the way only he can.... he spends the evening in his room.... to pull out the painful molar.... with his own hands. The roadshow is a success. 

Mr. Murthy - Dreamer, Leader, Visionary, Strategist, Master Tactician, Mentor, Human Being, and much much more - Thank You.

Indian Puttars & Half-Blood Princes

The Times of India Aug 15, 2011 edition carried a special supplement that was an extract of the Times of India Bombay Edition dated Aug 15, 1947. It was wonderful to read the mood of the country on the day of its independence. Both India and Pakistan got significant mentions - not surprising at all since they had only parted ways the day before. Also seen in the paper were grainy photographs of political leaders along with adverts selling milk, apparel, oil - and toothpaste.

Toothpaste? Yes. Colgate. My childhood favorite. Boldly asking “ARE YOU AFRAID TO KISS HIM... because of your breath?” WHOA!!! STOP!!! What was that? There was more. “He leans near, whispering romantic words. But how can you be sure your kiss will please? Are you sure your breath is sweet and fresh?... So be careful. Use Colgate Dental Cream.” Wow!!! Toothpaste sure was sold different in those days.

And then I recalled my MBA. Lessons on how the exclusivity of a product is lost when it becomes a commodity. That the uniqueness of a luxury brand is diluted when it becomes just another product. So in a country largely used to neem sticks & tooth powders in 1947, was toothpaste a luxury afforded only by the elite? Was that why the advt. was oriented more towards pleasing HIM than the obvious health benefits? One can never say. But what I can say with absolute confidence is that millions of young Indian males in the 80s & 90s would have been spared tons of insecurity if they knew that a product to fight bad breath was once sold to women. Let me explain....

'Stops bad breath. Fights tooth decay' intoned one advt. to me in the 80s. Another told me to get the 'Colgate Ring of Confidence'. And I even watched this on TV.... guy approaches a girl; girl turns away because of his bad breath; he brushes Colgate or Close-Up or whatever; and presto - they are into la-la land.

For the go-go youth of the 80s & 90s, bad breath was a masculine issue that we had to overcome. If we aspired to be even within 30 inches of a woman's lips, we better brush baby. I can bet that every morning in the 80s & 90s, millions of groggy-eyed and half-asleep Indian males ran the poor man's breathalyzer routine in their homes - trot into bathrooms, scrub their mouths to the point of bleeding, wipe their lips, and blow breath into their palms to smell them.

Now, can you imagine a single lady doing this? Seriously, come on. What in the hell were we males thinking? If only we had seen this 1947 Colgate advt., we would have realized that the same product was sold to women in a different era for the very same problem. We would have divined that bad breath cannot differentiate between male and female. And we would have then concluded that if a woman takes 5 minutes to brush her teeth every morning, a man can exactly do the same - and smell fantastic. More importantly, every guy would have slept 10 minutes longer and lost lot less blood.

So ladies and gentlemen, boys & girls, here is an Independence Day resolution for you to ponder. The next time you see a pitch for anything that tugs your masculine / feminine strings, don’t fall for it. Instead, go to YouTube and Google first. If that same product or formula has ever been sold once upon a time to the other sex - or to dogs, cats, or silkworms for that matter - chances are that it is not as exclusive as you think. And the money you save will make you smile in ways no toothpaste can.....

The 25 Most Influential Business Management Books

A very good collection. If you are book buff - and of management books at that - you'll love more than just a handful of them....

Go here for more.

Book Review - Blue Ocean Strategy

There are books, and there are fantastic books, and sometimes there are exceptional books. Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant is truly an exception & one of the best I have come across. Its strength is in its ability to break down strategy into actionable elements that are easy to comprehend.

Based on over 15 years of research, Blue Ocean Strategy outlines why and how companies must go beyond traditional competitive strategies that fight for the same turf and customer. The authors consider such traditional strategies to be 'red ocean' in nature since they only bloody waters. In contrast, a blue ocean strategy creates an uncontested marketplace and makes competition irrelevant. This is achieved through the relentless pursuit of Value Innovation, which is defined as one that creates exceptional value to both the end-user and organization. A successful blue ocean strategy also focuses on both differentiation and cost (unlike a red ocean approach that focuses on either to stay ahead).

The best thing about the book is its articulation of a diagnostic & action tool called the strategy canvas. Every example is analyzed through this easy-to-understand canvas. The book is further enriched by a 6-step approach on how a successful blue ocean strategy can be formulated and executed. Examples are varied and span across time - starting with the automobile of the early 1900s until the iTunes / iPod revolution of today.

If you need to know the 'how-to' and 'what-not-to' of strategy, this book is your guide. I'll rate it 5 stars.

Humility Lessons from Flashback Moments

The previous weekend involved a visit to the town of Kanchipuram - famous the world over for its temples and silk saris. It was also one of the towns I grew up in. The purpose of the trip was to see the 15 Divya Desams, but I came back with a lot more. (Note: A number of websites explain Divya Desams in detail. Briefly, they are 108 shrines of Lord Vishnu eulogized by poet-saints called Azhwars in songs.) 

I have never been a big fan of seeing your childhood home or your primary school. Folks move, landscapes change & perceptions of the past never match reality. But I realized that sometimes, going back in time humbles you with the timelessness of certain places and teaches you how the world evolves.

Take the Kanchi Varadar Temple for example. Located under water in the temple tank is the shrine of the Athigiri Varadar from where the deity is brought out for worship & public display for 48 days every 40 years. A 6 year old kid (that's me) walking so close to the tank to see the deity thinks of the experience as super cool. It is only 32 years later when he sees the tank again does he sense the perspective that mere mortals get to see the idol just once or twice in their lifetimes, but such idols last centuries under water.

I have often wondered why India has so many temples. Well, it finally dawned on me that we Indians just build them. And once built, they grow on their own. In 1980, my neighbor (who was 9 years old) proposed that we kids place an idol of Lord Ganesha by the street corner opposite his home. None of us questioned why we needed the Lord at that location when the same Lord existed in a larger temple just 50 metres away. A kitty was built for procuring the idol. My contribution - as a 7 year old - was 25 paise (that is 0.54 cents folks, and no, that is NOT a typo). We sought ZERO legal permits from local authorities. Within a few weeks, the idol was placed. Well, fast forward 31 years later. Not only does the idol remain, but Lord Ganesha lives in better environs in exactly the same place.

Some childhood homes change. But when they remain exactly the same – including the number on the door – they evoke memories of an 8 year old prince who used to hold on to those designs on the wall to climb up and preside over his imaginary subjects on the ground below.

Renovations prevented me from entering the Canara Bank on Gandhi Street. If open, I would have walked in to tell the hapless manager that I have entered the bank's cash vaults multiple times in the early 80s and walked around piles of currency notes stacked on the floor. Of course he would have considered me a lunatic, but those were the pleasures that were accorded to the 9 year old son of a bank manager in those days.

But nothing prepared me for the visit to the stainless steel vessel store. We picked 4 plates and asked for the price. The lady placed them on a weighing balance and said “Rs. 105 for the big plates and Rs. 98 for the small ones”. It turns out that in Kanchipuram, a bustling town 90 kilometres from Chennai whose (telephone) area code is the same as that of Chennai (which means that it is practically a satellite township of the larger metropolis), steel vessels are sold by UNIT WEIGHT and NOT UNIT PRICE. The steel rate on that day was Rs. 275 per kilo. What a difference from Bangalore where the same plates would have gone for Rs. 250 per unit.I ask for a discount. 'None' she says. How about accepting a credit card? 'Only cash' is her response. 

Now I know why global recessions mean nothing for rural India. Cash is virtuous and 35:1 leverages are unheard of. The managers on Wall Street may laugh at the ways of Kanchipuram, but these small Indian towns show us that frugality and common sense handed down generations do this world a lot more good than those fanciful CDO and CDS instruments that the asses from Wall Street came up with. And may this essence of India remain for generations to come....

Leadership Lessons from the Phone Hacking Scandal

Witnessed amazing testimony 2 days ago from Sir Paul Stephenson (Commissioner, Metropolitan Police) on the phone hacking scandal in the UK Parliament. Straight off, was amazed at how the committee questioned the Commissioner on whether, when, why and why not the Prime Minister knew certain things. Even more amazed at how well he answered them. A police commissioner asked about the Prime Minister's involvement on global TV..... and we in India have a problem in bringing the office of the Prime Minsiter under Lok Pal....

The best part came at the end of his testimony when he read a prepared statement on why he was resigning, even though he did nothing wrong....

I am going because I am a leader. Leadership is not about popularity, the press or spinning; it is about making decisions that put your organisation, your mission and the people you lead first. It is about doing things that will make them proud of their leaders, and that is very different from being popular with them. It is about making decisions that might be difficult and personally painful; that is leadership, and that is why I am going.

Well said.

Building New - Together

Time for another book review. The Power of Co-Creation begins by analyzing the various co-creation engagements undertaken by Starbucks and Nike with their customers. The explanation of the collaborative design process through NikeId and the customer-experience focused Nike+ programs provide a sound foundation for the understanding of co-creation and its impact to the company's bottom line.

Venkat Ramaswamy & Francis Gouillart also articulate how value innovation can be enabled and sustained. It is made very clear that merely creating innovation teams or corporate intranets will not help. What is required is a framework comprising of engagement platforms (to capture the essence of customer & employee experiences) and extended customer-vendor networks. As you read further, you realize why the much ballyhooed innovation initiatives within organizations have failed over the years. Innovation is constant engagement, repeated hard work, incremental change (and NOT big bang as is often misunderstood) and highly inclusive. An organization that ignores any of these dimensions will simply just fail in its innovation journey.

The examples are rich and varied - Apple Stores & its i-Phone platform, SAP communities, Hindustan Unilever's Gang of Girls (Sunsilk shampoo), IBM, Toyota, ITC e-Choupal, Cisco, Infosys, Amazon Fresh, La Poste Retail of the French Postal Service, to name a few.

I did not glean much from the second half of the book where the authors explain how management processes within organization must also change for co-creation to succeed. The ideas outlined are excellent – co-creating management teams, co-creative engagement in operations, co-creation of strategy, and co-creating institutional change – however, the actions undertaken to enable management change through these ideas seemed to be no radically different than the ones explained in the first half. Would a sequel be in the offing to flesh this in more detail?

If Innovation is your journey, this book is a must-read. But make sure that you include a few others in your reading list as well.

Nike Better World

An inspiring ad from Nike. Check out here if you want to watch the video. The words are below:

Don't tell us what we can't do.
Don't tell us not to dream.
Big fat hairy hairy audacious dreams.
Like making the world better through sport.

Sport is our passion.

Sport inspires hope, instills discipline, reduces depression, and disease.
It raises self-confidence, raises awareness, rallies communities, defines nations, defies gravity and denies prejudice.
Sport laughs in the face of racism, it flicks a towel on sexism's ass and kicks sand in the face of discrimination.
It makes neck hairs stand to attention.
Hell, it's even been known to stop wars.
That's a pretty impressive resume.
Sport, you're hired.

We won't rest until every living, breathing person on this planet has access to it,
And we won't stop making the best gear to propel humanity forward,
without wrecking our global playground in the process.
We will do good with a vengeance.
And to all the cynics and naysayers, we're going to make the world better for you anyway.
Because like sport, we don't discriminate.

We've made the world better
but we still want a better world.

-Nike Better World

Saying Hullo to Tintin

A visitor to Brussels may be told to visit the Atomium or the City Place or the numerous cathedrals. But if you are a comic buff, and a fan of Tintin at that, a visit to the Belgian Comic Strip Centre (BCSC) is a must. Brussels prides itself as the comic strip capital of the world. And the reason? With more than 700 comic strip authors, it has the maximum authors per square kilometre than anywhere else.

Don't let this very ordinary sounding name - BCSC - fool you. The centre is a true treasure trove of all Belgian comic characters from the 30s, and of course includes so many more comic strips beyond just Tintin. My only regret was that I don't understand French - this meant I had to ignore several comic strips on display. Content with a folder written in English offered in the reception area, I proceeded to the various sections of the centre.

The entrance foyer is framed by the model of the famous rocket that carried Tintin, Haddock, Calculus, Snowy, and Thom(p)sons to the moon.

You then go into a series of displays that depict how a comic strip is made. Boy !!! It takes an army to get the comic out. The scriptwriter comes up with the idea for the strip along with the synopsis and characters. Once the idea has been approved by the publisher and the artist, the artist takes over. He is the director of the entire event and draws the sketches, background and panels. The lettering artist now adds the lettering and speech bubbles while the colouring artist transforms this to colour. The printer now prints these glossies while the marketing and publishing teams roll out the promotion, distribution, syndication & merchandising.

Artist Version

Lettering Artist Version

                                                                                                                                            

  

Colouring Artist Version




Past a few more panel halls, you enter the area dedicated to Tintin. To me, this section was the highlight. A simple grid depicts every Tintin comic from 1930 (Tintin in the Land of the Soviets) till 1976 (Tintin and the Picaros) along with the characters featured in them. I learned that after Tintin and Snowy who have featured in all 23 comics, the next highest starring is not to Captain Haddock (15), but to the Thom(p)sons (18).

The Grid

You are struck by the face of Tintin that is almost expressionless - yet conveys much - and his disguises.

Captain Haddock's expressions on the other hand leave the reader in no doubt of his emotions.

Snowy is the hero in every situation while the 'heroes' of Scotland Yard continue to bumble.

And the centre features a separate area displaying endorsements of our favorite characters over the years.

 

I concluded with a visit to the shop at the BCSC that also had Asterix memorablia - and an Obelix collectible (with a menhir) was promptly purchased for Priya.

The visit most definitely took me back to my childhood years when Tintin & Asterix occupied much of my reading space. The next time you are in Brussels, do pay a visit to the BCSC. Definitely worth it.

PS: Wife was very happy with the gift. Whew !!!