Tuesday, January 23, 2007

Learnings from "The High Performance Entrepreneur"


  • Comfort with postponed gratification is a critical requirement of entrepreneurship.
  • Even if remotely, the thought of safety net haunts you and you cannot talk yourself out of it, you are not yet ready to set sail. When you build an organization, your own comforts must be subordinate to all other interests. Finally, there cannot be any thoughts of exit options in the event of a failure.
  • Friendship can sometimes come in the way of creating great organizations. It is not best to start an organization just because you are good friends and have a great idea. Friendship can breed contempt and not only the companies go haywire, so do the relationships.
  • While having a fantastic idea is a great starting point, unless there is a reasonable view of what larger business the company can be in, the life of an enterprise can be very short lived.
  • Building the company is not like planting one giant tree. It is about creating an entire forest some day.
  • If you do not need money, do not start a company. If you do not love money, it is unlikely that you will ever understand the nuances of generating wealth.
  • Profitability is a social obligation of the enterprise.
  • The foremost attribute of people who become entrepreneurs is the self confidence.
  • Entrepreneurs value their sense of freedom, but they are also very disciplined.
  • Providence is very powerful in our journeys and entrepreneurs should make room for it. It is not always what you bring to the table. Sometimes it is an unexplainable turn of events that changes your course.
  • Entrepreneurship requires the ability to read patterns on the wall, flexibility and an uncanny ability to seize the moment.
  • Even if you are entrepreneur material - possessing patience, resilience, empathy and politeness in very difficult situations - the sense of rejection can lead to occasional self pity. That is the last thing you need in such situations.
  • Acceptance and rejection are equally transitory, they result in equally unpredictable outcomes and must be treated with equanimity, without involving your ego in the results.
  • When you travel abroad, priceline.com is a quite useful website. :-)

Friday, December 22, 2006

Move from Capital Adequacy to Capital Efficiency



The Need – Why move?

Requirement of capital adequacy for banks has been well understood. Till very late, capital adequacy was seen as adhering to norms set by regulatory authorities. Regulatory authorities are motivated primarily by depositors’ interests. They also need to ensure that there is minimal systemic risk. Maintaining a high regulatory capital means lesser business for the banks, which conflicts with the interests of the investors, who seek high return on capital. Now, there is a trade off and no body knows where to draw a line and what is the accurate adequacy ratio for banks. The point to be noted here is that technically, adequacy ratio has to be different for different banks depending on the quality of their assets. So, the norm is set taking into account weak as well as best run banks. Now, when capital adequacy is there, i.e. capital to be used is given, in order to increase the shareholders’ value, banks need to employ this capital at minimum risk or at least take an informed decision and employ capital at a known and calculated risk i.e. move towards capital efficiency.

Building the case.

The Basel Capital Accord – II framework is based on three pillars of ‘Minimum Capital Requirement’, ‘Supervisory Review’ and ‘Market Discipline’. Minimum capital requirement sets regulatory norms to meet credit risks, market risks and operational risks. Supervisory review tries to capture the risks not taken care by meeting the minimum capital requirements, e.g. concentration risk and liquidity risk. Market discipline is all about disclosures. If banks adequately disclose their risks in their annual reports, analysts would be able to compare and rate them, which would keep management of banks in discipline.

Basel II does not talk about capital efficiency, but its adoption by banks is inevitable. We can expect modified version of the accord (Basel) in future, but as of now capital efficiency is not an adopted regulatory norm. Hence, the movement towards capital efficiency has to be voluntary. The capital efficiency thus, requires adequacy in economic capital. Economic capital reflects the true market value differential between assets and liabilities. Economic capital requirement is bank specific and captures the capital requirement to support all the assumed risks, up to a given level of confidence. It thus helps in manage the risk within the risk appetite specified by the board. It also helps in taking capital allocation decisions among competing business units, ensuring that capital is allocated to most efficient business units. Thus the move towards capital efficiency will help increasing the shareholders’ wealth, adhering to the regulatory norms at the same time.

How to move - Implications for managers

Risk management is only an understanding and not actions based on sure shot prediction. Risk management relies heavily on building data to predict future trends. And based on these predictions and targeted confidence levels, amount of capital adequate to support risks is calculated. Mathematical and probability distribution techniques are used to calculate value at risk (VaR). Further, risk adjusted performance measurement (RAPM) acts as an efficient tool in assessing risk and helping in taking business decisions. RAPM takes into account varying risks on different class of assets and also accounts for impact of financial leverage. One such metric is Risk Adjuste Return On Capital (RAROC). RAPM thus acts as a consistent metric for all asset and risk classes, thereby helping to evaluate alternative business propositions. Managers can thus effectively use RAPM in conjunction with VaR based on risk appetite of the board to take important business decisions.

Saturday, May 20, 2006

Craved Insanity


I have always believed that everything in this world has got a logic to it. Longing for sanity in the insane ways of life, I have felt that nature’s building blocks are there for us to understand, to explore and then to exploit, thereby attaining the ultimate mastery over our lives. Going through ups and downs of life, I have experienced numerous instances of success and failure, sorrow and happiness, using each of them to learn, thinking that some day, I’ll find logic to all of it and become the ultimate master of my destiny. Whenever I have thought that I have reached the abyss of sorrow or acme of happiness, for that matter, life has always proved me wrong. That is life! Limitless and amorphous, defying all logic, driving me crazy, forcing me to give up my quest for mastery.

But I am not the one who gives up easily. So, one fine day, I decided to take up the challenge to crack the code and learn about the building blocks of life. Beginning of my learning journey was marked by learning the way to learn. Once I knew how to learn, my learning curve became exponential. I learned, learned, learned and learned; and after 319 years, I ended up having full insights into what are the basic ingredients of life. I attained full control over my mind. I learned how to feel pain at will, how to feel grief, how to feel joy, how to get amused, how to shed a tear, how to pump adrenalin, how to feel blue, how to feel low, how to feel anguished, how to feel depressed, how to feel nostalgic, how to generate enthusiasm. I couldn't believe, but I was also able to learn how to not think of her. My feelings and emotions started obeying me and I was able to evoke them at will.

I wondered, isn’t this what all sadhus spend their entire lives to attain? The ultimate control over their senses, the ultimate peace, the salvation. Mastering my emotions was some mean feat, so I decided to feel proud and hence, I felt proud of it. Then I decided to feel happy. I closed my eyes and I saw her. My mind was thinking of her, which was not strange as I had not decided to not think of her. Then I decided to feel dead. And it was easiest of all.

What next, I thought. Where do I go from here? How should I, the master of my emotional destiny, go about my life? I could have easily pursued a routine of feeling happy for hours every day by forcing myself into enjoying my life. But the problem was that I didn’t feel like feeling happy. I realized that what I had thought of as mastery over my emotions was actually a resultant state of convergence of all external emotions into internal emptiness. That is, a state of emotional numbness or a mental anesthesia. That was definitely not what I wanted at first place. I was winning, but now I wanted to lose this race with myself. I had finally realized that there was indeed some sanity in leaving the ways of life insane. Otherwise, we would end up controlling our thoughts and action to the extent of an unwanted perfection, thereby transforming emotionally rich humanity into a plain and tasteless robotic community.

Hence, I unlearned.

And now, I do not know how to not think of her.

Tuesday, May 31, 2005

Tuesday, May 24, 2005

Time


Time is the only thing in the world which I m afraid of...
And it is the only thing which inspires me not to be afraid of anything...
Time at times is my best buddy and time at times is my worst enemy...
I play with time, I race with time…..I always get defeated...
I spend time and I am ready for my next race...
I give my time but I seldom get anyone’s...
I want to own time…….but it is not mine...
So I wait...
I have to...
Till mine comes...

Monday, April 18, 2005

Hail Rajni :-)

Saturday, April 16th was just another day, till I received a call from a friend. He wanted me to come to a movie with him. That didn’t amuse me much. It was a 10:15 p.m. night show. That didn’t help either. It was a Tamil movie. That was it! Had to say a big NO now. But somehow, I was not able to say that bluntly; the person on the other side had genuine friendly feelings. After all, it was just my company that was demanded. Still, I managed to show some reluctance. “It’s a Rajni movie man” came the reply, as if it was some kind of sin to say no to a Rajni movie invitation. His voice was proposing and insisting at the same time. Somehow, I found it extremely difficult to refuse. And guess what, I agreed. The lucky movie was ‘Chandramukhi’.

Going for a tamil flick was on my agenda since a couple of years, right from the time when ‘Boys’ was released. After putting down the receiver, I felt a sense of relief, the same relief which a child gets after finishing its homework. I actually started looking forward to it. Rest of the day passed peacefully in the office and I was there at the auditorium at 10 o clock.

The movie starts. The first thing that flashes on the top left of screen is ‘S’ and the crowd goes berserk. Whistles and screams and slogans and what not. Not that it was not expected, even from the elite tamil speaking Bangaloreans, it was just that I was not getting the context. But, what the hell, let’s have the fun, I too joined the party. The atmosphere was electrifying. Only Rajni can bring out that kind of exuberance. Still wondering, I continued to look at the screen. The ‘S’ was written in golden colour, which was glittering so brightly, that every single lady sitting the audience would have died to have that as a pendant in her chain. Then followed the letters ‘U’, ‘P’, ‘E’, ‘R’, ‘S’, ‘T’, ‘A’, ‘R’, all in power point presentation style, one after another. And then flashed the word ‘Rajnikant’. All my queries were put to rest.


Five minutes into movie, we have a scene whereby some 10-15 goons stop a van and are harassing people over some matter. All of sudden, a kick appears from somewhere and we are shown a white sports shoe spanning across the screen. For 10 second we have only the shoe on the screen and some background music. Slowly the camera moves back and we see a leg attached to the shoe and then a body attached to the leg and when the smiling face attached to the body comes on screen, we hear a huge roar and feel as if our ear drums are going to blast any moment. Then some regular Rajni stunts follow, the sunglasses wobbling and all. Then something new; it seems that our hero just quit smoking. But how can the cigarette throwing and catching by lips stunt be missed? This time it is chewing gum for a change. He throws the chewing gum in the air, it travels some arbit trajectory and falls right in his mouth.

So far so good. In fact all of it was expected, even more, with all the Rajni mails doing rounds and his much admired abilities to defy the laws of physics. But believe me, reading mails is different, you just can’t digest a fight scene if u look at one. The guy does not need any reason for showing superhuman powers. Nothing new to Indian cinema, but this stuff was out of the world. Also the gundas had a strange respect for our hero. They would stop just short of hitting him and wait for him to hit back. Imagine a guy trying to punch Rajni and stops mid air, apparently because our hero is old enough to respond back in time. Or maybe our hero is such a majestic figure that people do not dare to hit him even on screen.

Also, this guy has some kind of contract with windscreen makers. He would throw every person, rather touch every person and that person would jump on to a windscreen and shatter it to pieces. At least 20 cars were deprived of their windscreens in the process. Our master also commands control over natural powers. He can jump and wave his legs in air in such a way that he is able to generate a sandstorm. But why the sandstorm is generated at first place, is a big question. Now comes the swoosh effect. Every arm movement of our hero is supposed to be so quick that it cuts through the air and generates a swoosh sound. Although our hero has slowed a bit over the years, so elongated swoosh was used. i.e. our hero was given almost one second to move his arms. But the synchro of swoosh with actual movement was absolutely missing. Then there were so many special effects used in the fight sequence, adding to its crudeness. The effects were so poorly executed that every body could feel the artificiality. I think they were deliberately kept that way so that viewers should go back saying that the movie was full of special effects.

Rajni plays a psychiatrist in the movie. He is a mind reader. Not the one who would work out and guess what is there in your mind, but the one who could simply listen to what you are thinking with all the punctuation and phonetics. Incredible, no? Our superhero also has got the power to influence the celestial activity. By merely waving through the air, he changes half moon to a full moon progressively. Jim Carrey (Bruce Almighty) surely has got a lot to learn from him about the art of lunar modification. Then he simply lays down a trajectory in the sky and a comet follows the same. Wow! What the hell were people doing in Deep Impact or Armageddon? They should have come straight to Rajni.


Now one more hilarious thing was there. There is a song in the movie in which people are flying some kites. So, we see all sorts of kites in the sky, lots of them and in all colours. But we see very few people flying them. So where do these kites come from? Special effects rock my dear. And to add to the height of it, when the song gets over, the kites rearrange themselves in the sky, to take the shape of a word which everyone loves to see. Yes, you guessed it right, ‘SUPERSTAR’.

Well yes, there are a few things to talk about apart from Rajni. Direction of movie is good in general. Story is gripping with some good thrill sequences. Only thing which kept me wondering was that in order to treat a split personality patient, why did they need a team of a psychiatrist and a tantrik. Jyotika, who plays the role of a split personality, has given a great performance. Vadivelu has given a wonderful comic performance and let me assure you that you need not know the language to giggle over his acting. His facial expressions and his body language will do the job. The cameraman, it seems was deprived of playing merry go round in his childhood and we have to bear the consequences of that. Choreography is something that has disappointed me. I have always been a fan of dance sequences in tamil movies. Although, they have only few dance steps, which they follow repeatedly, it is the agility in those steps that appeals me the most. I love to see Prabhu Deva melting in his pants or Vijay performing the kite flying action. But here, agility was totally missing. Apparently, our hero is a bit mature to perform these steps and no one else would be allowed to dance in a better way. It would be a blunder if we don’t appreciate the hard work of the make up team, specially the hair dresser. With our hero loosing hair over the years, he is still able to retain his hair style and his age looks hardly over 45. There is also one small episode of good carnatic music and a classical duet dance. Use of colours in the movie is commendable.

All in all, the movie is poised to be a hit. Most of the things I mentioned here might exist in other movies as well, it is just that I was not concentrating on dialogues that I was able to notice these things. Well, maybe I’ll able to find that out when I see my next tamil movie. Overall, it was a lovely experience, which will always have a special place in my memory.

Tuesday, August 31, 2004

One Fine Day

Yesterday, It was a lonely lonely, lonely Monday morning. I was standing at Infy Chennai’s reception, dressed up in Business formals and staring at my reflection in the window glass. My dress was meticulously chosen for the occasion. I wore a spotless white shirt over pleated black trousers, double knotted navy blue silk tie having perfect length, just touching the embossed horse on the heavy buckle of my Italian leather belt. Colour of the socks matched to that of the tie. My shoes were polished (really, I did polish them on my birthday) and hair was combed (I guess so). The shoe laces were tied in single knots instead of the orthodox flowered knot. I was smiling, amused over the fact that business etiquette training had really come handy.

For most infoscions, it was just another day. Looking at the herd of enthusiastic looking infoscions, entering from the main gate, I realized that how desperate they were to get back to work. It looked as if their hands were itching to feel the keyboard, their eyes searching for their monitors. God only knows that at what time they had left the previous day or maybe the same very day. It looked as if they had a nice couple of hours of sleep dreaming about the bugs they have been trying to fix the previous day. The thought reminded me of the guy I see daily, brushing his teeth in one of the rest rooms at Infy. I wonder if he ever leaves the campus.

For some others, the morning was a bit different. They could feel that something was happening at Infy. In fact, there was something happening. Infy Chennai was hosting the analysts’ meet for the first time. At that moment, previous day’s scene flashed in front of my eyes, when I was attending the volunteer’s meet. Various tasks to be carried out were being explained and assigned. Actually, I had a pretty tough time deciding whether to volunteer for the meet or not. Being between projects (bench would be a rather harsh word to describe the situation), I could really afford doing it and hence decided to go for it. As the tasks were being explained, I felt an urge developing inside me for the job of directors’ escort. Luckily, I was assigned the job to escort Mr. T.V. Mohandas Pai, our CFO. We were a group of five escorts, one for each of the visiting directors. We became friends while we cruised through and analysed various facilities put up for the day. The group was a jovial one and I knew that we were going to have a nice time together.

I felt someone shaking my shoulder and as I returned to present, guess what, I saw Nandan, right in front of me, walking briskly towards his cabin. His escort left the group and disappeared with him. Then came K. Dinesh, still an hour left for the event to kick off. Even as I had not finished enjoying the presence of these big shots, I was blessed with more. Right at the end of the lobby, NRN and Kris walked through the door. Every neck present in the lobby turned towards them. Looking at NRN, I realized that indeed his charisma makes him look larger than life. Their escorts pounced on them, leaving me all alone. NRN’s escort was beaming like anything. At that moment, I really envied her job.

Moments later, a tall man with slightly grey beard entered the lobby. He was carrying a pile of documents with him. He punched his employee card and pulled out a tie. He knotted his tie right there. As I moved closer, I knew that my man was there. I greeted Mohan and introduced myself. He politely mentioned that I was not required. But, I insisted and stayed on; unaware of what was in store for me. By this time, many analysts had poured in. I could see some familiar faces figuring regularly on NDTV and CNBC.


Minutes later, when everybody was busy networking, suddenly Mohan asked me if I had met Mr. Murthy. I told him that I had never got that chance. He took me to NRN and said, “Mr. Murthy, pls. meet one of our young and enthusiastic developers”. NRN extended his hand and I found myself dumb at that moment. I somehow managed to shake his hand and mumble something. I regained my senses and talked to NRN and Mohan for 10 to 15 minutes and it was awesome. These people are really cool to talk to. Listening to NRN in person is a feast for ears. He commands a majestic aura - the zone of comfort, charm, knowledge, intelligence and wisdom. I felt like continuing for ever, but as more people joined the group, I excused myself after fifteen odd minutes. NRN patted my back gently and I realized how humble he was. My friends were all looking at me and smiling and I could not stop grinning as I joined them back. It was a great feeling, a sense of pride, a sense of achievement. Images of those 15 minutes will remain vivid in my memory for at least 15 years.

Some would argue that it was just a brief talk and does not deserve such an eulogy. I don’t know, it was a big thing for me and I would cherish the moment for a long long time.

Friday, October 10, 2003

Green, Clean or Polythene?


Concern for environment is every individual’s responsibility and this fact has more or less been recognized by a majority of educated Indians. Still these concerns are seldom put into action by most of us. The reasons could be any, ranging from carelessness to ‘why should I bother’ attitude. But the real irony is when one is sincerely working for the concern, but instead ends up in doing the damage.

Enter Delhi (by railways for real experience), and familiar sights of garbage dumps along the roadsides with loads of polythene bags in all colours will raise mixed feelings of guilt and anger in you. The person sitting next may sometimes look at your lost face and pass a comment or two, criticizing the municipal corporation for the same. Although not up to the standards, Delhi Municipal Corporation (DMC) is doing a wonderful job. DMC has realized that it can not take the job entirely in its hands and hence needs to create awareness among people. Enter Connaught Place (and elsewhere in Delhi) and you cannot leave without having a look or two at one or more of the numerous hoardings, smartly put up at striking places, which cry and urge citizens to keep Delhi green and stop the use of polythene bags. Eye catching appeals, which in addition to educating the citizens of Delhi also make them aware about various laws and regulations related to use of polythene bags, are a regular feature of leading dailies.

The problem or the efforts related to the perceived solution is not confined to Delhi or the metros alone. I’ll give you example of Patiala, a small city in Punjab and the place where I come from, where some students of ‘Thapar Institute of Engineering and Technology’ started a voluntary organization by the name of ‘Green World Environment Society’ (GWES), with the sole motto of creating environmental awareness among the Patialvis. GWES started its campaign by putting up awareness posters in many shops in the city market, encouraging people to ‘avoid’ the usage of polythene bags and switch over to alternate means like jute or paper bags. The campaign extended to delivering guest lectures in many schools, a good step to educate the future citizens. The efforts of the GWES were recognized and appreciated by several news papers.

You might say wow! Everything is nice and fine. People are aware, government is doing well, so maybe in the foreseeable future, we would be able to tackle the problem comprehensively. Then what’s the issue? Let me go back to February this year, when I was at ‘Plastindia 2003’, India’s biggest show of plastic industry, orgasnised at Pragati Maidan, New Delhi. There, I saw banners claiming that use of plastic bags, in fact, is beneficial for the environment. Their argument was that use of plastic bags results to decrease in paper consumption and thus prevents deforestation. Oops! I thought. Wait a second. Was I wrong in my resistance towards polythene usage? Is government wrong in whatever awareness it is trying to create, maybe it is shying from its responsibilities by putting the onus on junta. I was utterly confused at that point of time. Later, I tried finding the answers to these questions.

Well, both houses of argument do have some valid reasons for their stand. As every other issue, this issue also has its pros and cons. A little analysis yielded that pros of using polythene bags weigh much much less as compared to cons (contact me for details). An ideal scenario would however be to utilize the advantages of polythene and then manage and recycle the plastic waste efficiently. But it seems to be pretty difficult to put such a system in place, with government having so many other priorities lined up at this point in time. So, the best possible solution, for now, is to discourage the polythene usage and manage the plastic waste (whatsoever) effectively. The onus lies with the individuals to work for it and understand that these small problems might sound trivial, but could be disastrous if not handled properly.

Friday, December 28, 2001

Nosto


Sitting alone here in my chair,
I remember those days when I was there.
There in Thapar, in front of canteen,
Everybody bhoring; what a scene.

Sitting with Shaan in the grass,
Checking out girls and admiring their class.
Smiling bhoot and worried Bruce Lee,
Staring at sky with his head on my knee.
Time was sprinting on this very day,
I still remember, it was 19th of May.

End semester exams were just to start,
But there was only one thought in my heart.
Few days were left before we were to part,
Whether this was end of life or just a start.
Whether this was end of life or just a start.